with GIZ for the Lao People's Democratic Republic 01 April 2018 Entity Support

with GIZ for the Lao People's Democratic Republic 01 April 2018 Entity Support

PAGE 1 OF 16 Ver. 20 March 2017 Readiness and Preparatory Support Proposal How to complete this document? - A readiness guidebook is available to provide information on how to access funding under the GCF Readiness and Preparatory Support programme. It should be consulted to assist in the completion of this proposal template. - This document should be completed by National Designated Authorities (NDAs) or focal points with support from their delivery partners where relevant. - Please be concise. If you need to include any additional information, please attach it to the proposal. - Information on the indicative list of activities eligible for readiness and preparatory support and the process for the submission, review and approval of this proposal can be found on pages 11-13 of the guidebook Where to get support? - If you are not sure how to complete this document, or require support, please send an e-mail to countries@gcfund.org. We will aim to get back to you within 48 hours. - You can also complete as much of this document as you can and then send it to countries@gcfund.org. We will get back to you within 5 working days to discuss your submission and the way forward. Note: Environmental and Social Safeguards and Gender Throughout this document, when answering questions and providing details, please make sure to pay special attention to environmental, social and gender issues, in particular to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult page 4 of the readiness guidebook for more information.

PAGE 2 OF 16 Ver. 20 March 2017 SECTION 1: SUMMARY 1. Country submitting the proposal 2. Date of initial submission 3. Last date of resubmission (if applicable) 4. Which entity will implement the Readiness and Preparatory Support project? (Provide the contact information if entity is different from NDA/focal point) 5. Title of the Readiness and Preparatory Support Proposal Country name: Lao People s Democratic Republic Name of institution (representing National Designated Authority or Focal Point): Department of Climate Change Name of official: Mr. Syamphone Sengchandala Position: Deputy Director Telephone: +856 20 5550 8961 Email: syamphone.s@gmail.com Full Office address: Ministry of Natural Resources and Environment Vientiane Capital Lao PDR 07/07/2017 06/02/2018 National Designated Authority Delivery partner Accredited entity Name of institution: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Name of official: Jens Kallabinski Position: Head of Program Telephone:+856-2055528625 Email: jens.kallabinski@giz.de Full Office address: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, GIZ Office Vientiane - Watnak Nyai Rd., House 247, Unit 19 Thapalanxay Village, Sisattanak District Vientiane Capital, Lao PDR Name of official: Dennis Mutschler Programme Telephone: +49 228 4460-1463 Email: dennis.mutschler@giz.de Full Office address: Position: Head of Climate Finance Readiness Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Friedrich Ebert Allee 40, 53113 Bonn, Germany Support for the accreditation of the Lao PDR Environment Protection Fund to the GCF 6. Brief summary of the request (200 words) EPF has an extensive record of managing and monitoring projects and its internal procedures are meeting international standards, as such it is a good candidate for accreditation to the GCF and to become the 1st GCF National Accredited Entity. In depth support is however needed (i) to accompany EPF to meet GCF standards,(ii) to be in a position to absorb GCF and climate finance at scale and (iii) to reinforce the

PAGE 3 OF 16 Ver. 20 March 2017 capacity of the EPF bodies and recipients on how to assess and prepare climate projects and respond to the GCF policies, requirement and standards 7. Total requested amount and currency 393.625 (Euro) 8. Anticipated duration 01/02/2018-31/07/2019 (18 months) Yes No If yes, please attach the relevant scope of work, and briefly (100 words) describe the scope of support provided by other institutions First Readiness support on a limited scale (300,000$) was approved by GCF with UNDP as delivery partner for GCF initial Readiness on 1. Country capacity strengthened 2. Stakeholders engaged in consultative processes GCF funds are used to enhance the institutional capacity of the NDA and its engagement with national and sub-national stakeholders, the support should allow to establish the non-objective procedures as well as for raising awareness and understanding on the GCF across different stakeholder groups. This proposal is focused on supporting the accreditation process of the Environmental protection Fund (EPF) however complementarity and coherence with under-preparation and the approved UNDP proposal have been integrated: 9. Is the country receiving other Readiness and Preparatory Support related to the GCF? Activities under the UNDP proposal will assess the capacities of the Department of Climate Change as NDA, providing technical training and establishing, the stakeholder engagement mechanism and the functioning of the climate finance steering committee. This proposal will clearly integrate reporting lines and clarify responsibilities and roles between the NDA and the DAE. In this sense a dialogue mechanism between the two institutions will also be built. Members of the EPF Board, the EPF secretariat or the EPF technical committee are also potential members of the climate committee to be reinforced under the UNDP proposal. The proposal will ensure that the awareness and training don t duplicate efforts and that members are invited to readiness activities Under the UNDP proposal, during the stakeholder engagement the readiness support will liaise at the national and district level identifying climate priorities and will reinforce the capacity of the of Department of Climate Change, as NDA, to undertake those consultations, providing technical training and establishing, the stakeholder engagement mechanism and the functioning of the climate finance steering committee. During this proposal EPF will take advantage of the stakeholder engagement process and will use the mechanism to further liaise at the provincial level to enhance the awareness of the EPF and new potential source for GCF climate financing and supporting decentralized institutions to apply for climate financing.

PAGE 4 OF 16 Ver. 20 March 2017 SECTION 2: COUNTRY READINESS LOGICAL FRAMEWORK Please complete the table below, which enables a country to assess its readiness for the GCF and set targets for strengthening its readiness, including proposed outputs and activities to improve the country s readiness. For further guidance on completing the table, please refer to the guidebook Accessing the GCF Readiness and Preparatory Support Programme. OUTCOMES 1 BASELINE TARGET ACTIVITIES (including key outputs or deliverables where applicable) 1. Country capacity strengthened 0-8 0-8 1.1 NDA/focal point lead effective coordination mechanism 0 1 2 0 1 2 1.2 No objection procedure established and implemented 1.3 Bilateral agreements between the country and the GCF executed 1.4 Monitoring, oversight and streamlining of climate finance 0 1 2 0 1 2 0 1 0 1 2 0 1 2 0 1 2 2. Stakeholders engaged in 0-8 0-8 consultative processes 2.1 Stakeholders engaged in 0 1 2 0 1 2 consultative processes 2.2 Country programmes, including 0 1 2 0 1 2 adaptation priorities, developed and continuously updated 2.3 Stakeholder consultations 0 1 2 0 1 2 conducted with equal representation of women 2.4 Annual participatory review of 0 1 2 0 1 2 GCF portfolio in the country organized 3. Direct access realized 0 6 EPF is accredited, the tools, templates and guidelines are in place to assess GCF sub-project proposal and sub-project recipients of EPF (GCF) funding are adequately trained with project concepts developed 1 Based on decisions: B.08/10, annexes XII, XIII & XIV; B.08/11; B.11/10, annex I; B.12/20, annex I

PAGE 5 OF 16 Ver. 20 March 2017 3.1 Candidate entities identified and 0 1 2 0 1 2 nominated for accreditation 3.2 Direct access entity accredited x 0 1 2 0 1 x2 3.2.1. Raising awareness of the GCF accreditation process, fiduciary standards and environmental and social safeguards (ESS) among EPF organizational structure bodies (board, secretariat, technical committed) and sub-project recipients (applicant institutions) 3.3 Entity/ies annual/multi-annual work programme developed 3.4 Funding proposals through enhanced direct access modality approved 4. Access to finance 0-8 0-8 4.1 Structured dialogue between the NDA/Accredited Entities and the GCF Secretariat organized 0 1 2 0 1 2 3.2.2. Conducting an institutional gap analysis of EPF office and sub-project recipients against the fiduciary standards and ESS; 3.2.3. Supporting preparation, compliance and quality of the documents/exchanges submitted to the GCF secretariat / Accreditation panel 3.2.4. x 0 1 2 0 1 x2 3.3.1. Developing and implementing a personalized readiness and (sub-)project preparatory support plan that will support EPF office and sub-project recipients to address identified gaps in order to comply with the fiduciary standards and ES, which (may include the development of additional fiduciary and E&S guidelines; 3.3.2. Develop guidelines, tools and template to support the preparation, assessment, oversight and execution of projects/programs, including implementation arrangements, reporting, E&S etc. 3.3.3. Enabling lesson learning from other institutions that have been through similar accreditation processes and the participation in GCF meetings on the regional or international level. x 0 1 2 0 1 x2 3.4.1. Support EPF to identify potential activities and projects and how to request for project preparation 3.4.2. To seek for opportunities for complementarity and alignment with other Climate finance opportunities, including but not limited to UNFCCC mechanisms (GEF, AF, CTCN, CBIT, etc)

PAGE 6 OF 16 Ver. 20 March 2017 4.2 Country programmes, concept 0 1 2 0 1 2 notes, including on adaptation, developed that implement highimpact priorities identified in INDCs and other national strategies or plans 4.3 Project/programme preparation 0 1 2 0 1 2 support, including for adaptation, to develop funding proposals provided 4.4 Funding proposals, including for 0 1 2 0 1 2 adaptation, that are aligned with country priorities approved 5. Private sector mobilization 0-8 0-8 5.1 Private sector engaged in country 0 1 2 0 1 2 consultative processes 5.2 Enabling environment for 0 1 2 0 1 2 crowding-in private sector investments at national, regional and international levels exists 5.3 Funding proposals for private 0 1 2 0 1 2 sector projects/programmes, including for adaptation, approved 5.4 Funding proposals under the Private Sector Facility programmes (small- and medium-sized enterprises and mobilizing funds at scale) submitted and approved 0 1 2 0 1 2 TOTAL 0 6

PAGE 7 OF 16 Ver. 20 March 2017 SECTION 3: ADDITIONAL INFORMATION Please explain how this grant will help deliver on the country s readiness needs as identified above and build on institutions, processes or existing work already underway in the country (maximum 500 words) Current status and needs identification How the readiness support will improve key EPF areas during the accreditation Background 1. In 2004, the GoL adopted the National Environment Strategy and the annual plan for 2006-2010 that focus on the resources management, pollution control and the capacity development on the environment. To support the implementation of these Policies, in 2005 the GOL with support from the ADB the WB and UNESCO established, through the issuance of Prime Ministers Decree 146 in 2005 aiming at strengthening environmental protection, sustainable natural resources management, biodiversity conservation and community development. In 2015 the World Bank has provided IDA additional funding ofus$15 million for the EPF s Second Lao Environment and Social Project (LENS2), bringing the total project cost to US$ 41.83 million, including also funds from the GEF (US$6.83) and from the GoL (US$3m). The first LENS project, which ran between 2005 and 2013, funded more than 150 subprojects through the Environmental Protection Fund, producing tangible results at a local level. In March 2017, a new Prime Minister decree, number 94, has been issue. (PMO Number 94) and supersedes the previous decree. In the new decree the use of EPF funds is expanded to i.a. build white and clean development models, to reduce the impacts from climate and to improve clean productions and others. Under this context, government departments or agencies and local non-profit associations continue to submit environment and climate change subprojects - such as Ecosystem based adaptation projects for funding from the Environmental Protection Fund. There is a need to clearly indicate to the EPF the kind of projects/programs and activities that can be financed by the GCF 2. The EPF has been set up as one of the financing vehicles for responding to the increasing efforts on green growth and climate resilient development promoted in the 8th National Social and Economic development plan (2016-2020). Moreover, the Government of Lao has engaged to diversify and expand the EPF funding sources. Beside a funding channel, the accreditation process is also a strategic opportunity for improving the EPF by i) nurturing its project development capacities, ii) strengthening its systems and capacities in accessing finance in the future, iii) increasing its capacity to absorb large-scale finance and iv) enabling it to bargain harder for other sources of climate finance in the future. There is a need to raise awareness on the Fund s accreditation process and potential opportunities for diversifying EPF financing 3. The EPF has been identified by several partners 2 (UNDP ) as a strong potential environmental and climate fund for direct access in Lao PDR. Its extensive record of managing and monitoring sub-projects and the recent efforts to enhance its capacity to meet international fiduciary and E&S standards makes him a good candidate for GCF direct access. The experience to manage a project financed by the World Bank, the Lens 2 project, has permitted EPF to enhance its capacity to meet the World Bank s standards and to establish the adequate systems and staff to administer a fund and to adequately respond to established reporting requirements. There is a need to establish reporting systems and a communication channel and tools between the NDA and the EPF, as DAE. Organizational Structure 4. EPF organization structure consists of : 2 UNDP-EPF Case Study Report: EPF in Lao PDR. A case study providing inputs to discussions in Asia-Pacific region on the design and management of National Climate Funds. GIZ- 2014-First Steps for Making Climate Finance Work in Lao PDR

PAGE 8 OF 16 Ver. 20 March 2017 4.1 The Board of Directors (BOD), comprising the Minister of the Ministry of Natural resources and environment; several vice-minister from other line Ministries : Finance, energy and mines, planning and investment, agriculture, industry and commerce) and vice presidents from the Lao National for construction, Lao Women Union and the President of Chamber of Commerce and Industry. The BOD oversee operations, appoint the executive director and approved the strategy, annual plans, operational plans and EPF sub-projects, establishment of specific financing windows and allocation of funds to such windows. There is a need to sensitize BOD on the importance of the GCF, the requirements of the accreditation, of the eligible projects, the E&S and consultation requirements, the available instruments as well as other opportunities and constraints including the needs and requirement of a potential financing window under the EPF 4.2 The technical committee: Appointed by the Board, the technical committee assist the BOD on i.a. the review, assessment and screen of the subprojects proposals and monitors the budgets allocations. There is a need for a technical appraisal guidelines for assessing projects submitted to the DAE including a list of type of activities/ project to be financed, list of indicators and methodologies, reporting requirements, examples of reporting, etc (the guidelines will also be useful to the EPF secretariat and to the NDA) 4.3 The EPF office (the secretariat): The EPF Executive director, deputy and technical staff are responsible of the daily functions of the EPF, including i.a. the preparation of the list of proposal for submission to the BOD, the resources mobilization strategy, the monitoring and evaluation, support and advise to sub-projects and the reporting and communication on EPF activities. There is a need to: i. Raising awareness of the GCF accreditation process, fiduciary standards and environmental and social safeguards (ESS) of the EPF office; ii. Conducting an institutional gap analysis of potential applicants against the fiduciary standards and ESS; iii. Building the capacity of EPF office in relation to the GCF activities, in areas such as ESS, the GCF gender policy and action plan, and monitoring and evaluation. iv. To seek for opportunities for Complementarity and alignment with other Climate finance opportunities, including but not limited to UNFCCC mechanisms (GEF, AF, CTCN, CBIT, etc) Processes 5. EPF provides sub-grants to subproject eligible entities (government organizations, business and private sector at central, providing, district or village level, and private enterprise or a civil society that meet eligible conditions for funding support) through the BOAD create/modify Financing windows which are subject to rules and procedures listed in the EPF bylaws and operational manual. There is a need to provide support on the following areas: 5.4. The sub-grants /sub-projects : - Conducting a gap analysis of key current institutional arrangement and its compliance with GCF fiduciary standard and suggest adjustments. 5.5. The eligible entities (as potential executing entities) : - Conducting a gap analysis of key potential sub-project recipients against the fiduciary standards and ESS; - Develop and implement a capacity building action plan (training, tools and templates) to potential key recipients on the how to prepare and submit sub-projects eligible to GCF financing 5.6. The Financing windows: - Assess the existing financing windows and to suggest and support on the creation/modification (addendum, tools, and guidelines) of a financing windows to receive and manage GCF proceeds in compliance with GCF standards. 5.7. The Bylaws and operational manual - Conduct and assessment of the EPF bylaws and operational manual against GCF fiduciary standards and ESS and support 6. Implementation arrangements need also to be in compliance with GCF standards:

- PAGE 9 OF 16 Ver. 20 March 2017 - Assessment of different implementation arrangements. Roles, responsibilities and arrangements, for instance when the EPF is also the executing entity develop guidelines and tools that help EPF and the sub-project recipients to fulfil their roles and responsibilities - That will be nationally appropriate and in compliance with the EPF decree as well as with the GCF.

PAGE 10 OF 16 Ver. 20 March 2017 SECTION 4: BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT 4.1. BUDGET SUMMARY GIZ is a company under private law, owned by the German Federal Government. With regard to commissions from German public bodies, GIZ is subject to a number of requirements under price law, such as Regulation 30/53 and the Guiding Principles for Pricing on the Basis of Prime Costs (LSP). The accounting system (financial accounting, cost accounting and invoicing) is organised in accordance with these requirements. This ensures the transparent allocation of costs in accordance with the causality principle, as required under price law. Under public price law, GIZ is further only allowed to pass on reasonable costs (of an efficiently managed enterprise) to its clients. Includes national and international experts on climate change and internal services that can be directly allocated to the project activities. GIZ hires national and international staff with profound knowledge on climate change readiness to ensure a high quality of consultancy towards our partners. GIZ staff aims at building long term working relationships with the partners to maximize outcomes and to further develop strategies for the future through a steady minimum number of contact points. Internal GIZ staff will furthermore ensure high quality results from and coordinate with external consultants. GIZ Expertise 78.192 Technical advice & implementation support: A national expert will support the NDA and the EPF in the implementation of the Readiness measures on a full time basis for 18 months. The expert will provide technical advice; support the stakeholder coordination and the coordination of the different work packages. Principal Advisor: The Head of the BMZ financed bilateral Program CliPAD (based in Laos), implemented by GIZ, will assume the responsibility for the implementation of the Readiness support measures including the responsibility for the coordination with the NDA and the quality assurance depending on the actual needs (max. 1 day per month). Topical backstopping: An advisor from the global CF Ready Program (based in Germany) will support the coordination with the GCF & the BMZ, the M&E processes of the Readiness Support, the quality assurance, the technical advisory services to the NDA and the integration of lessons learnt of the global program into the implementation on an hourly basis (max. 2 days per month) Program Administration: GIZ Admin staff on the country level and at the HQ will support the tendering processes, the management of the funds and the fiduciary management on an hourly basis, depending on the actual needs (max 55 days during the 18 month implementation period).

Technical consulting Services 3 168.245 External Procurement - see procurement schedule below Goods and Non-Consulting Services 48.500 External Procurement - see procurement schedule below Travel Costs & Running Office Costs 30.400 Project Management Costs 15.464 Costs for Internal Services related to tendering and procurement Contingency Costs (5%) 17.040 Indirect costs (10%) 35.784x TOTAL 393.625 READINESS AND PREPARATORY SUPPORT PAGE 11 OF 16 Ver. 20 March 2017 3 Priority will be given to national and regional (ASEAN) experts

PAGE 12 OF 16 Ver. 20 March 2017 OUTCOMES (same as in section 2) ACTIVITIES (same as in section 2) TOTAL COST (per outcome) 3.2 Direct access entity accredited 3.3 Entity/ies annual/multi-annual work programme developed 3.4 Funding proposals through enhanced direct access modality approved Total 3.2.1. Raising awareness of the GCF accreditation process, fiduciary standards and environmental and social safeguards (ESS) among EPF organizational structure bodies (board, secretariat, technical committed) and sub-project recipients (applicant institutions) 3.2.2. Conducting an institutional gap analysis of EPF office and sub-project recipients against the fiduciary standards and ESS; 3.2.3. Supporting preparation, compliance and quality of the documents/exchanges submit-ted to the GCF secretariat / Accreditation panel 3.2.4. 3.3.1. Developing and implementing a personalized readiness and (sub-)project preparatory support plan that will support EPF office and sub-project recipients to address identified gaps in order to comply with the fiduciary standards and ES, which S (may include the development of additional fiduciary and E&S guidelines; 3.3.2. Develop guidelines, tools and template to support the preparation, assessment, oversight and execution of projects/programs, including implementation arrangements, reporting, E&S etc. 3.3.3. Enabling lesson learning from other institutions that have been through similar accreditation processes and the participation in GCF meetings on the regional or inter-national level. 3.4.1. Support EPF to identify potential activities and projects and how to request for project preparation 3.4.2. To seek for opportunities for complementarity and alignment with other Climate finance opportunities, including but not limited to UNFCCC mechanisms (GEF, AF, CTCN, CBIT, etc.) 135.129 190.626 67.870 393.625

PAGE 13 OF 16 Ver. 20 March 2017 4.2. Procurement Plan For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in section 2, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below. Also, please feel free to replicate this table on Excel spreadsheet if needed. The following process thresholds shall apply to national/regional procurement of goods and services Procurement of Goods and Services Method Threshold Direct procurement by Project (no tender) 1.000 Euro Restricted tendering by Project* 1.000 2.500 Euro Restricted tendering by GIZ bureau* 1.000 20.000 Euro Tender by publication (by GIZ bureau in coordination with > 20.000 Euro headquarter)* Local Subsidies (by GIZ bureau) 50.000 Euro Local Subsidies (by GIZ bureau in coordination with > 50.000 Euro headquarter) EU wide procurement (by GIZ bureau in coordination with 209.000 headquarter) Hotel, Event and Catering by Project 20.000 Euro *Exceptions possible under GIZ rules and regulations for direct awards without tendering if only one supplier/consultant/company is suitable or order placement is objectively urgent. The following process thresholds shall apply to international procurement of goods and services Procurement of Goods and Services Method Threshold Direct procurement by GIZ headquarter 1.000 Euro Restricted informal tendering by GIZ headquarter* 1.000 50.000 Euro Formal tendering by GIZ headquarter* 50.000 Euro EU wide procurement by GIZ headquarter 209.000 Hotel, Event and Catering by GIZ headquarter 20.000 Euro *Exceptions possible under GIZ rules and regulations for direct awards without tendering if only one supplier/consultant/company is suitable or order placement is objectively urgent.

PAGE 14 OF 16 Ver. 20 March 2017 ITEM ITEM DESCRIPTION ESTIMATED COST PROCUREMENT METHOD THRESHOLDS (Min-Max monetary value for which indicated procurement method must be used) ESTIMATED START DATE PROJECTED CONTRACTING DATE Goods and Non-Consulting Services Equipment & materials Direct costs Direct costs Equipment & materials Equipment and materials, incl. Consumables for workshops, trainings & advisory (e.g. office material, equipment, stationary for workshops etc.) Other services (including publications, translations and printing) Costs for workshops with the partners (Venue, Catering, WiFi etc.) 5.000 8.500 35.000 Travel costs 25.000 SUB-TOTAL ( ) 73.500 Restricted tendering by Project* Restricted tendering by Project* Restricted tendering by Project* Direct procurement by Project (no tender) 1.000 Euro 1.000 2.500 Euro 1.000 2.500 Euro 1.000 Euro 01/2018 NA 01/2018 NA 06/2018 NA 01/2018 NA Consultancy Services Int. / Reg. 1 Expert for capacity building support 115.785 Int./ Reg. 2 Operationalization support 42.960 Int. 3 Audit 9.500 SUB-TOTAL ( ) 168.245 Tender by publication (by GIZ bureau in coordination with headquarter)* Tender by publication (by GIZ bureau in coordination with headquarter)* Restricted informal tendering by GIZ headquarter* > 20.000 Euro > 20.000 Euro 1.000 50.000 Euro 03/2018 03/2018 08/2018 08/2018 02/2019 02/2019 TOTAL COST ( ) 173.245

PAGE 15 OF 16 Ver. 20 March 2017 4.3. Disbursement schedule Specify the proposed schedule for requesting disbursements from the GCF, including amounts and periodicity. For amounts requested, keep to multiples of USD 5,000, and for periodicity, specify whether it s quarterly, bi-annually or annually only. The disbursement schedule for consulting and non-consulting services and goods are presented in the Disbursement Plan under 4.2 above. GIZ is selected by the NDA as a delivery partner for the requested readiness support and will manage, under the leadership and guidance of the NDA, the implementation of the programme. Activities under area 3 will be implemented within an 18 month period. Activity area 3 will be implemented within 18 months starting in February 2018 and are expected to be completed in July 2019. As stipulated in the framework agreement between GIZ and the GCF, GIZ shall be entitled to submit two Requests for Disbursement each year. Each such Request for Disbursement must be submitted to the Fund together with the relevant Portfolio Report, or within 30 days of receipt of the relevant Portfolio Report. GIZ shall, in respect of each Approved Readiness Support Proposal, be entitled to submit a separate request for disbursement ( Interim Request for Disbursement ) within 30 days of the date of the relevant approval by the Fund. 4.4. Additional information This box provides an opportunity to include further explanations related to the budget, procurement plan and disbursement schedule, including any details on the assumptions to justify costs presented in the budget. Risks Level Risk reduction method Political Low political commitment and support Technical - Limited time and capacity by key EPF staff to provide the relevant information to the project Technical Insufficient technical capacity and lack of national consultants Operational Delays in implementation due to grant agreement negotiation delays and recruitment processes Low High High Medium MoNRE high level officials including vice minister- have indicated the importance and increase role of EPF in the implementation of the Lao PDR green growth strategy and the accreditation of the EPF to the GCF as a priority. Awareness sessions will be organized to maintain this level of commitment. A GIZ national staff/consultant will be hosted at EPF to reduce the data collection and time allocation of EPF senior officials GIZ will involve and provide EPF staff with training on on all processes The lack of capacity and availability of local consultants is being addressed by expanding the recruitment of consultants at regional and international level and getting enhanced support from experienced GIZ experts, with knowledge and experience in the region. GIZ disposes of staff in-country and in the region ready to be mobilized in order to to ensure an accelerate the starting process and will give priority to readiness agreement signature

PAGE 16 OF 16 ver. 20 March 2017 SECTION 5: IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION 2.3. Please attach an implementation map or describe how funds will be managed by the NDA/FP or delivery partner If the entity implementing the readiness support is not an accredited entity of the GCF, please complete the Financial Management Capacity Assessment (FMCA) questionnaire and submit it with this proposal. Readiness and preparatory support in all the requested areas will be implemented though Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in close cooperation with the National Designated Authority and other relevant stakeholders. In collaboration with NDA and the EPF, GIZ will competitively procure services and goods that are consistent with GIZ: - Consultants will be procured on a competitive basis and according to detailed terms of reference. - For items such as venues and travel for stakeholder workshops, a shopping method will be used at all times seeking competitive quotes above pre-set thresholds. 2.4. Other relevant information This box provides an opportunity to include any important information you wish to bring to the attention of the GCF Secretariat, but did not have an opportunity to provide in the sections above.