with the Sahara and Sahel Observatory for the Republic of Tunisia 24 February 2016 NDA Strengthening & Country Programming

with the Sahara and Sahel Observatory for the Republic of Tunisia 24 February 2016 NDA Strengthening & Country Programming

PROPOSAL PAGE 1 OF 9 (Please submit completed form to countries@gcfund.org) Executive Summary (in one page) Country (or region) Tunisia Submission Date 19/01/2016 NDA or Focal Point Contact Point (both NDA/FP and delivery partner) Ministry of Environment and Sustainable Development FP contact Name: Ms Amel Akremi Position: Deputy Director, Ministry of Environment and Sustainable Development Email: amel.akremi@mineat.gov.tn and akremi_amel@yahoo.com Tel: (+216) 70 728644 (Office). Full Office address: Avenue de la terre, Zone Urbaine Nord. 1080 Tunis, Tunisia Delivery Partner Contact: Observatoire du Sahara et du Sahel (OSS) Name: Mr. Kherraz Khatim Position: Executive Secretary Email: boc@oss.org.tn Tel: (+216) 71 206 633; Fax: (+216) 71 206 636 Full Office address: Observatoire du Sahara et du Sahel (OSS), Boulevard du leader Yasser ARAFAT; BP 31, 1080 Tunis, Tunisia Readiness Area/s Request Summary (in 200 words) 1. Establishing and strengthening National Designated Authorities (NDAs) or Focal Points 2. Strategic frameworks for engagement with the Fund, including the preparation of country programmes 3. Selection of implementing entities or intermediaries, and support for accreditation Tunisia is one of the Mediterranean countries most vulnerable to climate change. It signed and ratified the UNFCCC in 1992 and 1993 respectively and registered some achievements on both mitigation and adaptation fronts since then. In 2012, Tunisia developed its National Strategy on Climate Change (SNCC) in a bid to try and bring together, in a coherent way, the multiple and varied approaches for addressing climate change issues. In 2015, it developed and submitted its Intended Nationally Determined Contributions (INDC) to the UNFCCC secretariat. The engagement with the GCF is seen as an opportunity to access significant resources to finance the implementation of its SNCC and its INDC. This request for readiness support will therefore contribute to filling the capacity gaps highlighted in section A.2, thus enhancing Tunisia s effective engagement with the Fund. The activities to be undertaken are described in section B.1. Anticipated Duration Estimated total cost US$ 300,000 As a result of these activities, it is expected that an appropriate NDA is identified, and its institutional capacities are built to effectively fulfil its roles and responsibilities in relation to the Fund. The programme will also facilitate the development, through a stakeholder engagement process, of a country programme, which will include adaptation and mitigation programming priorities. 01/04/2016 31/03/2018 (24 months)

PROPOSAL PAGE 2 OF 9 SECTION A: RATIONALE FOR REQUEST A.1 Background Please provide country overview including initiatives related to climate finance e.g. NAMAs NAPs etc. Tunisia is a Maghreb country spanning over some 162,000 km2 in the northeast of Africa, with a coastline of some 1,300 km along the Mediterranean sea. It is considered to be among the Mediterranean countries most vulnerable to climate change. The main climate change risks facing the country are increasing temperature, decreasing rainfall, sea level rise and the increase in extreme weather events (floods and droughts). Tunisia ratified the UNFCCC convention and its Kyoto Protocol in 1993 and 2002 respectively. It produced the initial and second National Communications in 2001 and 2014 respectively (and is working on the Third National Communication since 2014). In 2014, it submitted its Biennal Report and in 2015, its Intended Nationally Determined Contributions (INDC). Owing to its proactive approach to mitigation actions, Tunisia was among the first developing countries to adopt energy-related policies. Such policies helped the country to progress towards energy optimization and the use of renewable energy, which in return led to the development of over 40 programmes and projects in all relevant sectors. Some of these programmes and projects are moving into the implementation phase. They encompass areas such as renewable energy (wind, solar energy), energy optimization (energy efficiency bulbs, the creation of new energy and building insulation), better management of solid wastes and the improvement of public transportation (rapid rail networks in Greater Tunis). Several initiatives were also undertaken including the restructuring of adaptation project portfolio in most vulnerable sectors. Others are being developed particularly in the field of coastal protection of marine erosion, the fight against desertification, and the use of waste water in order to reduce, as much as possible, the pressure on water resources. It is to be mentioned that an Adaptation Strategy of the Agriculture Sector has been elaborated and is slowly, implemented. The Health and the Tourism sectors have, similarly, elaborated their respective adaptation strategies. A vulnerability study for the Tunisian coastline has equally led to an adaptation strategy for the sector in charge. In 2012, Tunisia developed its National Strategy on Climate Change (SNCC) in a bid to try and bring together in a coherent way the multiple and varied approaches for addressing climate change issues. With regard to institutional arrangements, the Tunisian government registered some progress including the creation, over the years, of institutions and coordination mechanisms to tackle climate change issues, such as: The National Committee on Climate Change (CNCC in French Acronym) that was set up in the early 2000s to supervise and monitor the work on climate change and the implementation of the UNFCCC. It included the climate change national focal point as coordinator and representatives of the National Agency for Energy Control, the Ministry of Agriculture, the National Institute of Meteorology, the National Engineering School of Tunis and an NGO. Even though the CNCC stayed non-operational for a long period, in 2015 it was decided to bring it back to life and to upscale its mission and attributions. It brings together around forty representatives of different ministers, including the Government s Presidency, representatives of universities and of NGOs. A core group on Climate Change was also established at the ministry of Environment. It is constituted of different senior officers of the Ministry. It is expected to become a think-tank for climate change related matters. Other organizations, structures and working groups have also been established, at the level of other ministries, to continue the work on climate change. The National Agency for Energy Control (ANME in French acronym): climate change issues feature in ANME business since 2001. One of the organisation s mandates is to carry out GHG emissions and conduct all studies on mitigation in the energy sector. In collaboration with UNDP, ANME has also created an Sustainable Energy and Environment Information Unit (CIEDE in French acronym) that focuses on capacity building on climate change issues The collaboration between the Ministry for the Environment and other institutions towards the objective of mainstreaming climate change into sectoral planning has led to establishing several task forces (at the ANME in 2010 and at the level of the Ministry of Agriculture in 2014) whose mission is, among other things, to reflect on the best ways to reach that objective.

PROPOSAL PAGE 3 OF 9 In December 2013, Tunisia became a member of the UN-REDD program. A request for support for the needs assessment for the development of its national forest monitoring system has been elaborated. It aims to assess the need for the establishment of a national forest monitoring system in Tunisia, which will allow it to meet the requirements of MRV REDD+ (carbon and guarantees), and also to meet the needs of policy national forest, and other international frameworks. It also aims to establish a clear and consistent institutional base for REDD + in Tunisia. The country s engagement with the GCF is seen as an opportunity to access significant resources to finance the implementation of its SNCC and its INDC. Since the designation of the Focal Point for the GCF in July 2014, Tunisia nominated 5 institutions for accreditation including Amen Bank, Agence de Promotion des Investissements Agricoles (APIA), Banque de l Habitat (BH), Societe Tunisienne d Electricite et de Gaz International Service (STEG IS) and Observatoire du Sahara et du Sahel (OSS). It is expected that these institutions will be the channel through which GCF resources are tapped to implement climate-related projects and programmes that are consistent with the GCF investment criteria. A.2 Justification for request Please explain how the readiness request will have an impact in your country and align with the goals of the readiness program. Please also discuss how the proposed activities are aligned with country priorities and strategies, and how link with existing climate finance initiatives in country. Tunisia registered some achievements on both mitigation and adaptation fronts. Sectoral strategies and tools for climate change policy are beginning to emerge in Tunisia, but their implementation is still partial, sometimes lacking cohesion and coordination within and between sectors etc. The 2012 National Strategy on Climate Change (SNCC) referred to in section A1 highlights three key gaps that hinder the development of a robust climate policy. These include: Institutional gap: This is evidenced by limited ownership characterised by inadequate stakeholder involvement. Engagement on climate change issues tends to be too centralized and too formal, with low awareness of civil society stakeholders to climate change issues. The absence of a national structure that explicitly deals with Climate Change does also exacerbate the prevailing silos of governmental jurisdictions, which undermine the establishment of effective institutional arrangements, and consequently limit the country s ability to take advantage of existing and emerging climate-related opportunities. Another aspect that reinforces the need to strengthen the institutional set up relates to the weak capacity of the existing monitoring and evaluation framework of existing climate-related strategies and policies. With perhaps the exception of the energy sector, Tunisia does not seem to have structured mechanisms in other climate sensitive sectors for monitoring and evaluation of adaptation and mitigation actions. Yet such mechanisms are essential for the design and adjustment of any climate change policy and are a necessary condition for accessing international climate finance. The second constraint relates to the generally limited knowledge on climate change issues in Tunisia, despite the work already done. There is a lack of synergy between vulnerability studies to overcome the above-mentioned silos approach and strengthen sectoral and cross-cutting capacities to manage and disseminate knowledge related to climate change, thus overcoming the current deficiencies observed (collection, sharing, dissemination of knowledge between sectors). The last shortcoming relates to weak implementation of the legal and regulatory framework on climate change. Although the existing legal framework is relatively comprehensive and diversified at the sector level, there seems to be a lack of effective control mechanisms for the implementation of certain laws (control of water resources, forest management). Yet, relying on existing mechanisms and strengthening their control will undoubtedly provide a useful starting point for the adaptation strategy, insufficiently exploited by Tunisia. This need has become even more urgent after the January 2014 Arab Spring, because sometimes amalgams are made between freedom and free access to natural resources. Given the magnitude of threat related to climate change and the challenges highlighted above, Tunisia therefore seeks readiness support for: Establishing a National Designated Authority (NDA) and strengthening the country s capacity in order to effectively fulfill its GCF-related tasks (activity area 1). As described in section B.1 the readiness

PROPOSAL PAGE 4 OF 9 programme will enable the NDA to source relevant experts, strengthen its technical capacity and that of key stakeholders, organize trainings, workshops and consultations with relevant stakeholders. It is expected that this process will strengthen coordination across stakeholders and facilitate engagement (including periodic meetings / workshops) Developing a country programme (activity area 2) in adherence with the initial guidance from the GCF. This will involve the private sector, civil society, government and local government stakeholders in order to develop priorities for project and concepts to be developed for funding consideration by the GCF. SECTION B: SCOPE OF WORK Description of activities (Please provide detailed logical framework as an annex. See Annex I B.1 for content to build from). If consultancy service is required to undertake proposed activities, please also include a brief terms of reference of the service in this section or as an annex. The initial phase of the Readiness and Preparatory Support Programme will focus on the standardised readiness package for strengthening the Focal Point (and later the NDA once established) (activity area 1), and the development of strategic frameworks for engagement with the Fund, including the preparation of a country programme (activity area 2). These activities are described below, with an initial logical framework included as Annex I. Activity 1: Strengthening the Focal Point (and later the NDA once established) Recruiting national and international experts (with good command of English language) as required to provide technical and management assistance to the Focal Point (and later the NDA once established), in order to: 1. Strengthen the knowledge and capacities of the NDA coordination team to fulfil its roles and responsibilities; 2. Coordinate and liaise with other ministries, relevant departments and agencies on key issues relating to the GCF; and 3. Build the capacity of the Focal Point (and later the NDA once established) to engage stakeholders and organise multi-party consultations. The Focal Point (and later the NDA once established) may also add, within the US$300,000 resource envelop, other activities in accordance with the Fund s defined scope of work in the Standardised Package for NDA or Focal Point Strengthening, available at: http://www.greenclimate.fund/documents/20182/104167/2.11_- _Standardized_package_for_NDA_or_Focal_Point_Strengthening.pdf/652aae68-dcdd-4e63-b3aec25c32f0bc09 Activity 2: Strategic Engagement Framework with the Fund The Focal Point (and later the NDA once established) will develop a country programme by undertaking a number of activities, including: 1. Identifying the government's mitigation and adaptation priorities in accordance with its strategic policy documents, other sectoral programmes and the Fund s Initial Results Management Framework; 2. Identifying a list of programmes and projects, including public-private partnerships, consistent with the Fund s Initial Investment Framework; 3. Identifying opportunities to engage the private sector, including micro, small and medium-sized enterprises, and to leverage their capacity to implement programming priorities; 4. Identifying the roles of prospective public and private sector entities that may be accredited by the Fund in implementing Tunisia s programming priorities with respect to the Fund; 5. Identifying how the GCF can build on the ongoing work of other development partners in the country, and deliver its support in a manner complementary to the efforts of other partners; and 6. Organizing stakeholder consultation processes for the development of the country programme. The Focal Point (and later the NDA once established) may add other elements of the country program and will also undertake stakeholder consultations in a manner that is consistent with the Fund s resource envelope and scope of work defined in the Standardised Package for Country Strategic Frameworks, available at:

PROPOSAL PAGE 5 OF 9 http://www.greenclimate.fund/documents/20182/104167/2.12_- _Standardized_package_for_Country_Strategic_Frameworks.pdf/86fcb949-323f-46c0-96bb-2d7605649ce9 B.2 Expected results Activity 1: The capacities of the Focal Point (and later the NDA once established) are built to effectively fulfill its roles and responsibilities in relation to the Fund Activity 2: Development, through a stakeholder engagement process, of a country programme to include elements provided in the Fund s Initial general guidelines for country programmes, which will include programming priorities and programme/project concepts consistent with the Fund s Initial results management framework and Initial investment framework More details are found in the logical framework, at annex 1. SECTION C: BUDGET (include total cost and share of GCF funding) Please use the separate budget template provided to detailed relevant line items. A detailed budget will be provided with the inception report. Based on the guidance from the standardised package for activities 1 and 2, the following high-level, indicative budget breakdown is envisaged: Consultancy fees Category Package 1+2 combined (direct access) US$125,000 Travel &per diem of consultants US$ 35,000 Workshop (venue, catering, travel, per diem, materials, etc.) US$ 90,000 Other (including audit costs) US$ 9,,600 Contingency US$ 13,200 Project management costs (OSS) US$ 27,200 Grand Total US$300,000 Note: please refer to the Fund s guide on indicative budgets for the standardised packages for activity 1 and activity 2. SECTION D: IMPLEMENTATION PLAN D.1 Implementation arrangements Please include information on delivery partners. The Observatoire du Sahara et du Sahel (OSS) will serve as the delivery partner and will work under the leadership and guidance of the FP/NDA to implement the programme. With the guidance of the FP (and later the NDA once appointed), OSS will hire the consultants and procure other services to deliver Activity 1 and 2. The detailed implementation arrangements including the procurement plan and a detailed implementation plan will be further elaborated in the inception document. D.2 Disbursement and implementation schedule See Annex II. The funding will be transferred to OSS, as the delivery partner, in three tranches: The first disbursement, which amounts US$ 120,000, will be transferred upon the submission of an inception document to the Fund, in form and substance acceptable to the Fund, which includes detailed implementation plan, procurement plan and budget; The second tranche of US$ 130,000 will be transferred upon submission of an interim progress report and audited financial report, in form and substance acceptable to the Fund, including an expenditure statement; and The final disbursement of US$ 50,000 will be made upon submission of a completion report and financial report, including an audited expenditure statement.

PROPOSAL PAGE 6 OF 9 D.3 Procurement plan Please provide detailed procurement plan including methods. The OSS, under the guidance of the FP (or the NDA, once designated), will competitively procure services consistent with its procurement rules and regulations. The terms of reference of consultants will be developed under the guidance of the FP (or NDA once designated) to include the tasks outlined in the request summary above. Items such as venues and travel for stakeholder workshops to be organised will also be procured consistent with OSS procurement rules and regulations. Information on the process and the results of procurement to be undertaken will be included in the inception document where such information can be provided in advance, and in any case, the process and the results will be included in the interim progress and completion reports once such procurement has been undertaken and completed. SECTION E: MONITORING & REPORTING PLAN Please describe the frequency and responsibility for monitoring the indicators, the source of information that will be used to measure the indicators and the timing for submitting the interim and final reports of the activities implemented and outputs and outcomes achieved. The reports to be submitted will be as per what is included in section D.2, and will include reporting against the logical framework included in annex 1. SECTION F: RISK & MITIGATION MEASURES Please describe the expected risks (external and internal) that could influence the timing and quality of the deliveries. Highlight if there might be critical risks that could compromise the overall implementation. For each risk, identify the possible early corrective measures that will be in place to avoid or mitigate any negative impact. No major risks identified. However, this will be reviewed during the inception phase.

PROPOSAL PAGE 7 OF 9 Annex I. Logical Framework OUTCOMES OUTPUTS PROJECT SUMMARY INDICATORS BASELINES 1. The Focal Point s (and later NDA) capacity to undertake Fundrelated responsibilities and engage national stakeholders strengthened 2. Strategic framework for engagement with the Fund developed 1.1 A process for supporting coordination across stakeholders and facilitating engagement 1.1 Capacity to coordinate across stakeholders and facilitate effective consultation and communication 1.2 Knowledge on climate and finance priorities strengthened 1.3 System for reviewing proposals and issuing recommendations (or no-objections) established 1.4 Capacity and systems to monitor, evaluate and report on the activities of the Fund and other relevant finance mechanisms and institutions established 1.5 Information, including in local languages, on procedures of the Fund to disseminated to country stakeholders 2.1 Engagement of private sector, civil society, government and local government stakeholders on priorities for engagement with the fund 2.2 Priorities for project and concepts to be developed for accessing the fund 2.3 Country programming document developed and published in adherence with the initial guidance from the Fund 1.1.1 Write up of the coordination process, and convening schedule

PROPOSAL PAGE 8 OF 9 (including periodic meetings / workshops) 1.2 Annual report on activities of the Fund and other relevant funding mechanisms and institutions in the country 1.3 Information materials on the operational procedures of the Fund in local languages (where relevant) and distribution lists of recipients 2.1 Country programme, including elements provided in the Fund s Initial Guidelines for Country Programmes 2.2 Summaries of meetings of multistakeholder engagement, including list of participants 1.1.2 Meeting minutes and participant lists documenting engagement of at least xx groups 1.2.1 Electronic copy of the annual report, and details of public dissemination channels 1.3.1 Links to electronic copies of presentations, information materials, climate and development information disseminated to distribution lists where relevant. 1.3.2 At least xx information materials on the fund developed and disseminated to at least xx people 2.1.1 Copy of country programme, completed using the initial guidance on country programmes prepared by the GCF secretariat 2.1.2 Background documentation on the programme, and links to public dissemination channels 2.2.1 Agendas and summaries from workshops convened as part of the country programme process 2.2.2 Short note on lessons learned from country programming, and good practices in stakeholder engagement

PROPOSAL PAGE 9 OF 9

PAGE 1 OF 15 ver. 20 September 2016 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 15 ver. 20 September 2016 SECTION 1: SUMMARY 1. Country submitting the proposal Country name: Tunisia Name of institution (representing National Designated Authority or Focal Point): Ministry of Environment and Sustainable Development Name of official: Amel AKREMI Telephone: 00216 25805590 Position: Director/ GCF NFP Email: amel.akremi@mineat.gov.tn Full Office address: Ave de la Terre, Zone Urbaine Nord, 1080 Tunis - Tunisie 2. Date of initial submission 19/01/2016 (for the proposal following the previous process) 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 6. Brief summary of the request (200 words) 19/10/2016 National Designated Authority X Delivery partner Accredited entity Name of institution: Sahara and Sahel Observatory Name of official: Mr. Khatim Kherraz Position: Executive Secretary Telephone: (+ 216) 71 206 633 Email: boc@oss.org.tn Full Office address: Boulevard du Leader Yasser Arafat BP 81, 1080 Tunis - Tunisia Preparation of Tunisia to climate finance through GCF country programming, and establishment of the GCF designated national authority Tunisia is one of the Mediterranean countries most vulnerable to climate change. It signed and ratified the UNFCCC in 1992 and 1993 respectively and registered some achievements on both mitigation and adaptation fronts since then. In 2012, Tunisia developed its National Strategy on Climate Change (SNCC) in a bid to try and bring together, in a coherent way, the multiple and varied approaches for addressing climate change issues. In 2015, it developed and submitted its Intended Nationally Determined Contributions (INDC) to the UNFCCC secretariat. The engagement with the GCF is seen as an opportunity to access significant resources to finance the implementation of its SNCC and its INDC. This request for readiness support will therefore contribute to filling the capacity gaps highlighted in section 2, thus enhancing Tunisia s effective engagement with the Fund. The activities to be undertaken are described in sections 2 and 4. 7. Total requested amount and currency As a result of these activities, it is expected that an appropriate NDA is identified, and its institutional capacities are built to effectively fulfil its roles and responsibilities in relation to the Fund. The programme will also facilitate the development, through a stakeholder engagement process, of a country programme, which will include adaptation and mitigation programming priorities. US$ 300, 000 8. Anticipated duration 01/11/2016 31/10/2017 (12 months) 9. Is the country receiving other Readiness and Preparatory Support related to the GCF? Yes No If yes, please attach the relevant scope of work, and briefly (100 words) describe the scope of support provided by other institutions

2016 PAGE 3 OF 15 ver. 20 September 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 3-8 8-8 1.1 NDA/focal point lead effective coordination mechanism 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 2. Stakeholders engaged in consultative processes 2.1 Stakeholders engaged in consultative processes 0 1 2 0 1 2 - Put in place the NDA and strengthen his/her capacity in climate financing mechanisms with a focus on the GCF. This includes a training on climate finance for the NDA and his/her team, as well as the recruitment of a national consultant assisting the FP in managing GCF activities for 12 months and training on operational modalities of the GCF - Design a coordination mechanism to support NDA s consultations activities 0 1 2 0 1 2 - Develop an operational manual for accessing GCF funds, both in French and Arabic to facilitate the understanding of the process and submission of projects. - Establish the no-objection mechanism - Set up an ad hoc committee to periodically discuss and approve new directions of climate finance and the GCF portfolio in Tunisia 0 1 2 0 1 2 - Formalize the national designated authority : Preparation of a work programme and ToR - Engage with Foreign Affairs to ensure the signature of the P&I agreement 0 1 2 0 1 2 - Elaborate/develop identification, selection and eligibility criteria for GCF-funded climate smart investments in Tunisia - Develop a monitoring / tracking tool that will enable the NDA to track climate finance flows in Tunisia and help report on their utilization (MRV) 3-8 8-8 0 1 2 0 1 2 - Implementation of an awareness raising and communication plan to mobilize and sensitize key stakeholders in Tunisia (NDA members and officials of the ministries of environment, finance, and key sectors) - Establish a national platform (including the establishment of a network / exchange portal) involving various stakeholders, and create a webpage dedicated to GCF activities available to a broad public - Organize a series of consultations (small meetings) with national stakeholders to: o Identify financing needs for adaptation and mitigation 1 Based on decisions: B.08/10, annexes XII, XIII & XIV; B.08/11; B.11/10, annex I; B.12/20, annex I

2016 PAGE 4 OF 15 ver. 20 September 2.2 Country programmes, including adaptation priorities, developed and continuously and updated 2.3 Stakeholder consultations conducted with equal representation of women 2.4 Annual participatory review of GCF portfolio in the country organized o define national priorities for adaptation and mitigation and o develop the GCF country programme this includes the preparation of a stocktaking & analytical report, identification of priorities of investment for the GCF, validation workshop, etc. 0 1 2 0 1 2 - Identify cross-sectoral cooperation trails and possible creation of a Memorandum of Understanding between national partners to ensure better mobilization of climate financial resources 0 1 2 0 1 2 - Identify key national actors involved in the mobilization of financial resources dedicated to climate, taking into account gender equality 0 1 2 0 1 2 - Set up an ad hoc committee to periodically discuss and approve new directions of climate finance and the GCF portfolio in Tunisia - Organize a national stakeholders consultation workshop once a year to discuss GCF portfolio updates 3. Direct access realized 3-8 6-8 3.1 Candidate entities identified and nominated for accreditation 0 1 2 0 1 2 - Organize a multi actor workshop to identify the national institution (s) that will be candidate entities for accreditation to the Green Climate Fund 3.2 Direct access entity accredited 0 1 2 0 1 2 - Supervise/ Accompany the selected institution (s) for accreditation to the GCF through the readiness project until their final accreditation 3.3 Entity/ies annual/multi-annual work programme developed 0 1 2 0 1 2 - Bring together direct access entities twice a year and make sure they develop an annual work programme aligned with national climate priorities and strategies 3.4 Funding proposals through enhanced direct access modality approved 0 1 2 0 1 2 - Develop a national strategy for the mobilization of climate funds and establish an updating mechanism. - Establish a working group with direct access entities accredited that will be responsible of working with national partners to prepare projects and programs to be submitted to the Fund 4. Access to finance 3-8 8-8 4.1 Structured dialogue between the NDA/Accredited Entities and the GCF Secretariat organized 4.2 Country programmes, concept notes, including on adaptation, developed that implement highimpact priorities identified in INDCs and other national strategies or plans 0 1 2 0 1 2 - Create a partnership between the NDA (when in place), national or regional accredited entities and the GCF Secretariat and consider an annual or bi annual workshop to discuss strategic priorities and proposed investments 0 1 2 0 1 2 - Organize a series of national consultation workshops to develop climate smart concept notes based on the INDCs and existing adaptation and mitigation plans - Organize a final national workshop to validate the proposed concept notes and ensure their submission to the Fund after the no objection

2016 PAGE 5 OF 15 ver. 20 September 4.3 Project/programme preparation support, including for adaptation, to develop funding proposals provided 4.4 Funding proposals, including for adaptation, that are aligned with country priorities approved 0 1 2 0 1 2 - Support accredited entities in requesting project preparation fund and preparing project or programme proposals eligible to GCF - Apply for and implement readiness funding for NAP support 0 1 2 0 1 2 - Identify and mobilize accredited entities operating in Tunisia to ensure that national investment priorities are developed in high quality funding proposals and submitted to the Fund on a regular basis 5. Private sector mobilization 2-8 8-8 5.1 Private sector engaged in country consultative processes 0 1 2 0 1 2 - Sensitize and systematically involve the national private investors in the consultative processes during the readiness project 5.2 Enabling environment for crowding-in private sector investments at national, regional and international levels exists 0 1 2 0 1 2 - Develop a study + strategy that will provide recommendations for improving the enabling environment for crowding in private sector for climate smart investments in the country and for accessing GCF funding 5.3 Funding proposals for private 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 TOTAL 14-40 38-40 0 1 2 0 1 2 - Provide targeted information on GCF to private sponsors and coach them in accessing GCF funds and submitting good proposals - Include the private sector project/programme proposal in the national validation process / make sure private sector projects are part of the national no objection/ validation process 0 1 2 0 1 2 - Provide targeted information on GCF to private sponsors and coach them in accessing PSF funds and preparing good proposals

PAGE 6 OF 15 ver. 20 August 2016 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) Tunisia has registered some climate related achievements on both mitigation and adaptation solutions. Sectoral climate-smart strategies and tools for climate change policy have started to emerge in Tunisia, but their implementation is still partial, sometimes lacking cohesion and coordination within and between sectors etc. The 2012 National Strategy on Climate Change (SNCC) highlights three key gaps that hinder the development of a robust climate policy. These include: Institutional gap: This is evidenced by limited ownership characterised by inadequate stakeholder involvement. Engagement on climate change issues tends to be too centralized and too formal, with low awareness of civil society stakeholders to climate change issues. The absence of a national structure that explicitly deals with Climate Change does also exacerbate the prevailing silos of governmental jurisdictions, which undermine the establishment of effective institutional arrangements, and consequently limit the country s ability to take advantage of existing and emerging climate-related opportunities. Another aspect that reinforces the need to strengthen the institutional set up relates to the weak capacity of the existing monitoring and evaluation framework of existing climate-related strategies and policies. Except for the energy sector, Tunisia does not seem to have structured mechanisms in other climate sensitive sectors for monitoring and evaluating adaptation and mitigation actions. Yet such mechanisms are essential for the design and adjustment of any climate change policy and are a necessary condition for accessing international climate finance. The second constraint relates to the generally limited knowledge on climate change issues in Tunisia, despite the effort engaged. There is a lack of synergy between vulnerability studies to overcome the above-mentioned silos approach and strengthen sectoral and cross-cutting capacities to manage and disseminate knowledge related to climate change, thus overcoming the current deficiencies observed (collection, sharing, and dissemination of knowledge between sectors). The last problem relates to weak implementation of the legal and regulatory framework on climate change. Although the existing legal framework is relatively comprehensive and diversified at the sector level, there seems to be a lack of effective control mechanisms for the implementation of certain laws (control of water resources, forest management). Yet, relying on existing mechanisms and strengthening their control will undoubtedly provide a useful starting point for the adaptation strategy, insufficiently exploited by Tunisia. This need has become even more urgent after the January 2014 Arab Spring, because sometimes amalgams are made between freedom and free access to natural resources. Given the magnitude of threat related to climate change and the challenges highlighted above, Tunisia therefore seeks readiness support for: Establishing a National Designated Authority (NDA) and strengthening the country s capacity in order to effectively fulfil its GCFrelated tasks (activity area 1). The readiness programme will enable the NDA to source relevant experts, strengthen his/her technical capacity and that of key stakeholders, and organize trainings, workshops and consultations with relevant stakeholders. It is expected that this process will strengthen coordination among stakeholders and facilitate engagement (including periodic meetings / workshops).developing a country programme (activity area 2) in adherence to the initial guidance from the GCF. This will involve the private sector, civil society, government and local government stakeholders in order to develop priorities for project and concepts to be developed for funding consideration by the GCF.

PAGE 7 OF 15 ver. 20 August 2016 OUTCOMES (same as in section 2) Outcome 1: Country capacity strengthened ACTIVITIES (same as in section 2) Put in place the NDA and strengthen his/her capacity in climate financing mechanisms with a focus on the GCF; this includes a training on climate finance for the NDA and his/her team, as well as the recruitment of a national consultant to assist the FP in managing GCF activities for 12 months; and training on operational modalities of the GCF Formalize the national designated authority : Preparation of an annual work programme and ToR for the NDA - Establish the no-objection mechanism - Design a coordination mechanism to support NDA s consultations activities - Elaborate/develop identification, selection and eligibility criteria for GCF-funded climate smart investments in Tunisia TOTAL COST (per activity) Consultants COST CATEGORIES Travel Workshops/ Trainings Others First disbursement EXPENDITURE AND IMPLEMENTATION SCHEDULE (add columns if >12 months) Second disbursement after completion 28 200 19 200 4 000 5000 0 28 200 - International consultant for the trainings: USD600*20 days = USD 12000 - National consultant supporting NDA s activities : USD 600 * 12 months = USD 7200 - Travel (Including DSA) of international consultant: USD 2000* 2 - Trainings: room rental (USD 1000) + catering (USD 50*10 pers*3 days) 1500= 2500x2= USD 5 000 3 500 0 0 3 500 0 3 500 Workshop to establish the NDA: room rental (USD 1000) + catering (USD 50*50 pers*1 day): USD 2 500 6000 6 000 0 0 0 6 000 - national consultant: USD300*20 = USD 6000 Notes

PAGE 8 OF 15 ver. 20 August 2016 Outcome 2: Stakeholders engaged in consultative processes - Set up an ad hoc committee to periodically discuss and approve new directions of climate finance and the GCF portfolio in Tunisia Formalize the no-objection mechanism Develop an operational manual for accessing GCF funds, both in French and Arabic, to facilitate the understanding of the process and submission of projects. Develop a monitoring / tracking tool that will enable the NDA to track climate finance flows in Tunisia and help report on their utilization (MRV) Organize a series of consultations in Tunis ( small meetings) with national stakeholders to : - identify financing needs for adaptation and mitigation - define national priorities for adaptation and mitigation and 5000 0 0 5000 0 5000 Workshop to present and validate the no-objection mechanism: room rental (USD 1000) + catering (USD 50*80 pers*1 day): USD 4000 28500 15 000 4000 9500 0 22 000 6 500 - International consultant for the manual elaboration: USD600*20 = USD 12 000 Travel (Including DSA) of international consultant: USD 2000* 2 Edition and printing the operational manual: USD4500 - Translation in Arabic (consultant) USD3 000 - Workshop to present and validate the manual: room rental (USD 1000) + catering (USD 50*80 pers*1 day): USD 4000 21 000 12 000 4000 5 000 0 21 000 - International consultant to develop the monitoring tool: USD600*20 = USD 12 000 Travel (Including DSA) of international consultant: USD 2000* 2 - Workshop to present the tracking tool and the results: room rental (USD 1000) +catering (USD 50*80 pers*1 day): USD 4 000 28 900 17 400 6 000 5 500 0 28 900-5 working meetings : catering (USD 10*30 pers*1/2 day* 5 meetings) = USD 1500 National workshop: room rental (USD 1000) + catering (USD 50*60 pers*1 day): USD 3000

PAGE 9 OF 15 ver. 20 August 2016 - develop the GCF country programme this includes the preparation of a stocktaking & analytical report, identification of priorities of investment for the GCF, validation workshop, etc. Development of a communication strategy and action plan Implementation of the action plan: awareness raising to mobilize and sensitize stakeholders in Tunisia (NDA members and officials of the ministries of environment, finance and key sectors) Establish a national platform (including the establishment of a network / exchange portal) involving various stakeholders, and create a webpage dedicated to GCF activities available to the broad public - Identify key national actors involved in the mobilization of financial resources dedicated to climate, taking into account gender equality - Identify cross-sectorial cooperation opportunities and possible creation of a Memorandum of Understanding between national partners to ensure better mobilization of climate financial resources International consultant: USD 600*19 = 11400 - Travel of international consultant: USD 2000* 3 = 6 000 National consultant: USD 300*20 =USD 6000 13 500 13 500 0 0 0 13 500 - National consultant to develop the communication strategy and plan: USD300*20 = USD 6 000 National consultant to develop some tools defined in the communication action plan and to broadcast the project and GCF activities at national level: Medias, Magazines, videos interviews= USD300 *25 days = USD 7500 11 000 6 000 0 5000 0 11 000 - National consultant for the tool development: USD300*20 = USD 6 000 - Workshop to present the platform and webpage: room rental (USD 1000) + catering (USD 50*80 pers*1 day): 4000 5 000 0 0 5 000 0 5 000 - Workshop to sensitize stakeholders and identify resource person to involve in the ad hoc committee : room rental (USD 1 000) + catering (USD 50*80 pers*1 day) + 4 000

Outcome 3: Direct access realized Outcome 4: Access to finance - At least once a year, organize a national stakeholders consultation workshop to discuss requests for no objection received by the NDA and the GCF portfolio more broadly (updates) Organize a multi actor workshop to identify the national institution (s) that will enter the accreditation process to the Green Climate Fund Supervise/ Accompany the selected institution (s) for accreditation to GCF through the readiness project until their final accreditation; In this case, focusing on experience sharing between entities entering the process - Develop a national strategy for the mobilization of climate funds and establish a mechanism for updating. - Establish a working group with direct access entities that will be responsible of working with national partners to prepare projects and programs to be submitted to the Fund Gather direct access entities once a year and make sure they develop an annual work programme aligned with national climate priorities and strategies Create a partnership between the NDA (when in place), accredited entities, other national projects holders and the GCF Secretariat to READINESS AND PREPARATORY SUPPORT PAGE 10 OF 15 ver. 20 August 2016 3 500 0 0 3 500 0 3 500 - Workshop to discuss the GCF portfolio: room rental (USD 1 000) + catering (USD 50*50 pers*1 day) = USD 2500 5 000 0 0 5 000 0 5 000 - Workshop: room rental (USD 1 000) + catering (USD 50*80 pers*1 day) = USD 4000 7 000 0 0 7 000 0 7 000 - Small Workshops for sharing experience on the accreditation process (2): room rental (USD 1000) + catering (USD 50*50 pers*1 day): USD 2 500 *2 12 000 6 000 0 6 000 0 12 000 National consultant to develop the national strategy : USD300*20 = USD 6 000 Workshop to validate the strategy: room rental (USD 1000) + catering (USD 50*100 pers*1 day): USD5 000 3 500 0 0 3 500 0 3 500 - Workshop : room rental (USD 1000) + catering (USD 50*50 pers*1 day): USD2500 18 500 0 10 000 8 500 0 18 500 Detailed costs will be provided at inception stage according to how consultations move forward

Outcome 5: Private sector mobilization discuss strategic priorities and future/proposed investments this includes in-country meetings in at least 5 key cities Organize a series of national consultations in Tunis (small technical / sectoral meetings) to develop climate smart concept notes based on the INDCs and existing adaptation and mitigation plans Organize a final national workshop to validate the proposed concept notes and ensure their eligibility to the Fund - Identify and mobilize accredited entities operating in Tunisia to ensure that national investment priorities are developed in high quality funding proposals and submitted to the Fund on a regular basis Sensitize and systematically involve national private investors in the consultative processes during the readiness project Develop a study + strategy that will provide recommendations for improving the enabling environment for crowding in private sector for climate smart investments in the country and for accessing GCF funding - Provide targeted information on GCF & PSF to private sponsors and coach them in accessing GCF funds and submitting good proposals READINESS AND PREPARATORY SUPPORT PAGE 11 OF 15 ver. 20 August 2016 17 000 12 000 0 5 000 0 17 000 National consultants (2) to develop the concept notes : USD 300*20 = USD 12 000 Workshop: room rental (USD 1000) + catering (USD 50*80 pers*1 day): 4 000 N/A N/A 20 000 12 000 2 000 6 000 0 20 000 International consultant to develop the study : USD 600*20 = USD 12 000 Travel (Including DSA) of international consultant: USD 2000 *2 Workshop: room rental (USD 1000) + catering (USD 50*100 pers*1 day): USD5 000 13000 6 000 0 7 000 0 13 000 National consultant to provide targeted information on GCF&PSF (guide line) and coach the private actors : USD 300*20 = USD 6 000

PAGE 12 OF 15 ver. 20 August 2016 OTHER INCLUDING AUDIT - Include the private sector project /programme proposal in the national validation process / make sure private sector projects are part of the national non- objection/ validation process 9 600 0 0 0 9 600 9 600 Small meetings (6): catering (USD 50*10 pers*1 day): USD500*6= USD3 000 - Others: Publishing a guideline for good proposal elaboration (USD 4000) CONTINGENCY (UP TO 5%) 13 100 0 0 0 0 0 13 100 PROJECT MANAGEMENT COSTS (UP TO 10%) 27 200 0 0 0 0 6400 20800 TOTAL 300 000 125 100 30 000 95 000 9 600 250 000 50 000

PAGE 13 OF 15 ver. 20 August 2016 Procurement plan For goods or services to be procured/hired, list the items to be procured/hired (including consultants), the estimated cost of each item, and the procedure to be used (i.e. direct procurement, open tender, shopping, other and related thresholds). Please include the procurement plan for at least the first tranche of disbursement requested below. Procurement of Goods and Services For all bids and consultations funded in whole or in part by GCF donation the procedures are those of OSS as defined in the grant agreement are applied. In the frame of this project, the OSS will apply the following procurement methods according to the following thresholds: For consultancies services For USD 10,000 and more International open tender Between USD 5000 et USD 10,000 National open tender Less than USD 5,000 Selection based on consultants' qualifications (SCQ) For goods and services, OSS will apply the following procurement methods according to the following thresholds: For USD 10,000 and more International open tender/na Between USD 2,000 and USD 10,000 Selection based on consultants' qualifications (SCQ) Between USD 100 and USD 2000 Shopping list /NA 1. International consultancy International consultants for the trainings: USD600*20 days = USD 12 000 International open tender Q1 2017 International consultant for the manual elaboration: USD600*20 = USD 12 000 International open tender Q2 2017 International consultant to develop the monitoring tools: USD600*20 = USD 12 000 International open tender Q2 2017 International consultant to identify financing needs for adaptation and mitigation, define national priorities for adaptation and mitigation and develop the GCF country programme: USD 600*19 = 11 400 International open tender Q2 2017 International consultant to develop the study + strategy for improving the enabling environment for crowding in private sector for climate smart investments in the country: USD 600*20 = USD 12 000 International open tender Q2 2017 2. National consultancy National consultant supporting NDA s activities : USD 600 * 12 months = USD 7200 national tender Q1 2017 National consultant to design a coordination and no-objection mechanisms: USD300*20 = USD 6000 National tender Q1 2017 National consultant to develop the communication strategy and plan: USD300*20 = USD 6 000 national tender National consultant to develop some tools defined in the communication action plan and to broadcast the project and GCF activities at national level : Medias, Magazines, videos interviews= USD 7200 National tender (SCQ) Q2 2017 National consultant to develop the national strategy : USD300*20 = USD 6 000 national tender National consultants (2) to develop the concept notes based on INDCs: USD 300*20 = USD 12 000 National tender (SCQ) Q2 2017 National consultant to provide targeted information on GCF&PSF (guide line) and coach the private actors : USD 300*20 = USD 6 000 National tender (SCQ) Q3 2017 3. Services Translation in Arabic: USD 3 000 Workshops and Training: USD 95 000 spread out over various small workshops

PAGE 14 OF 15 ver. 20 August 2016 Editing and Publishing : USD 11500 Q2 2017 For these services, the administration of OSS will make a comparison of at least 3 offers to choose the best in terms of quality and price 4. Audit An audit report will be prepared at the end of the project. The project account will be audited by the expenditure controller and the External Auditor during annual audits of OSS projects. The external audit report will be discussed by the Executive Secretariat of OSS and submitted to the GCF. However, a report on the use of funds by category of activities will be developed in the first half of the project implementation and presented to GCF. 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 first disbursement of USD$ 250 000 USD will be carried out at the beginning of the project upon the approval of the project proposal and the sending of the first request for disbursement; The second and last tranche of US$ 50,000 will be transferred upon submission of a final completion report and audited financial report, in form and substance acceptable to the Fund. 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.

2016 PAGE 15 OF 15 ver. 16 August SECTION 5: IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION 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. The project s fund will be managed by OSS as a regional implementing entity for the Adaptation Fund. OSS accreditation by the GCF is underway. Payment of expenses related to the project activities will be carried out by OSS at the request of AND/FP from the account dedicated to the project in accordance with the procedure manual in force. OSS will be in charge of collecting supporting documents related to expenditure and submitting regular reports to the GCF Secretariat. 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.