with the National Rural Support Programme (NRSP) for the Islamic Republic of Pakistan 13 November 2015 NDA Strengthening & Country Programming

with the National Rural Support Programme (NRSP) for the Islamic Republic of Pakistan 13 November 2015 NDA Strengthening & Country Programming

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 1 OF 10 Country (or region) (Please submit completed form to countries@gcfund.org) Pakistan Submission Date 22/09/2015 NDA or Focal Point Executive Summary(in one page) Ministry of Climate Change Focal Point and official contact person Name: Mr. Arif Ahmed Khan Position: Federal Secretary Email: pakistangcf@gmail.com Tel:+9251 9224579 +9251 9204126 Full Office address: Ministry of Climate Change, 3rd Floor, LG & RD ComplexG-5/2, Islamabad, Pakistan Contact Point (both NDA/FP and delivery partner) Additional contact person Name: Mr. Muhammad Fawad Hayat Position:Director Climate Finance Unit Email: fawadhayat@gmail.com Tel:+9251 9245626 Fax: +9251 9245627 Full Office address: Ministry Climate Change 3rd Floor, LG & RD Complex, G 5/2, Islamabad, Pakistan Delivery Partner contact person: Ms Susanne Wallenöffer Climate Change Focal Point GIZ BKP Project House 29-A, Street 56 F 7/4 Islamabad, Pakistan Readiness Area/s 1. Establishing and strengthening National Designated Authorities (NDAs) or Focal Points

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 2 OF 10 Pakistan was ranked number three in the 2012 assessment of the Global Climate Risk Index 2014 with over 6 billion USD losses due to climate change. Pakistan is highly vulnerable to climate change threats in particular extreme events and the country has witnessed climate change disasters like floods and droughts striking. In view of the growing population, urbanization and increased industrialization, the situation is likely to get worse as it is projected that the frequency and intensity of extreme weather events will increase and that agricultural productivity will decrease, with severe impacts on food security. In addition, sea level will rise and cyclonic activity increase due to higher sea surface temperatures. Pakistan is also one of the most water-stressed countries in the world. Request Summary(in 200 words) The Government of Pakistan is strongly committed to taking adaptation and mitigation measures to reduce Pakistan s vulnerability to climate change. Shifting the economy onto a low-carbon and climate resilient development pathway requires an investment and Pakistan has been actively pursuing both international and national action on combating climate change. The government is starting implementation of its Climate Change Policy at the provincial level and conducted the Climate Public Expenditure and Institutional Review (CPEIR) to understand the need of climate financing in the country. Attracting international climate financing on a sufficient scale is a challenge, mainly due to the constant changing landscape of climate finance and the limited institutional capacity at different levels to leverage, utilise and monitor emerging climate financing. Pakistan will need to strengthen institutional capacities to manage climate finance, including the capacity to design, implement and monitor the institutional arrangements required at various levels and a clear and inclusive strategic framework for engagement with the Fund. Anticipated Duration Estimated total cost 01/01/2016 30/06/2016 (6 months) US$150,000

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 3 OF 10 SECTION A: RATIONALE FOR REQUEST A.1 Background Please provide country overview including initiatives related to climate finance e.g. NAMAs NAPs etc. The Pakistan Framework for Economic Growth (2011) developed by the Ministry of Planning, Development and Reforms, highlights the role of climate change in its growth model, proposing to climate-proof economic growth and paying particular attention to the agricultural, water and energy sectors. Enabling climate-resilient economic growth requires formulation of a policy setting and governmental institutional setup capable of delivering these policy objectives. Though Pakistan has undertaken efforts to advance policy and institutions on climate change at a broad level, climate change, as a crosscutting issue, must also be mainstreamed across sectoral line ministries at both the federal and provincial levels. The 18th Amendment to the Constitution of Pakistan (2010) mandated the devolution of 47 federal items to the provincial level, including climate change. However, the federal government, through the Ministry of Climate Change, maintains responsibility for national and international policy and obligations. The split responsibilities between the federal and provincial governments continue to impede institutional clarity and the adoption of clear working protocols on climate change, which is still not prioritized across all sectors. The Government of Pakistan (GoP) ratified the National Climate Change Policy (NCCP) in 2012, which aims to ensure that Climate Change (CC) is mainstreamed in the economically and socially vulnerable sectors of the country, and to support Pakistan towards climate-resilient development. In 2012, the Ministry of Climate Change (MCC) initiated a Climate Public Expenditure and Institutional Review (CPEIR) to assess the level at which the GoP has so far been able to respond to the challenges of CC, and to identify opportunities for further strengthening its climate financing. The total federal climate-related expenditure was estimated to be between 5.8 and 7.6 percent of total federal expenditures. The Ministry of Climate Change is the focal Ministry for the readiness support. The ministry will be coordinating with the relevant Ministries and institutions to build synergies with other on-going national initiatives and programs. For effective management of the GCF, Pakistan plans to set up an appropriate and operational institutional framework at national and provincial level. The institutional management structure of the GCF in Pakistan for the implementation of the projects will consist of a decision-making body at the national level (the steering committee) and an operational body (the Technical Committee). The ministry will monitor the implementation of the projects under GCF through its departments at the state level. Ministry of Climate Change: MoCC is responsible for the overall supervision and management of the preparation and implementation of activities. Central Ministries: The Ministries will be involved in the project preparation and provide required inputs to the project design. Consultations and coordination with these relevant ministries will provide inputs for planning, design and implementation of the project activities. Provincial Governments: Provincial Governments will be involved in the project preparation, implementation and monitoring of activities. They will provide critical inputs for project design, which will require consultation and coordination with different stakeholders.

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 4 OF 10 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. The Ministry of Climate Change is a young institution covering all aspects of climate change and climate finance. General institutional capacity on climate finance is developing within Pakistan. Existing national climate finance portfolios with GEF and Adaptation Fund are currently implemented. Overall awareness on as well as readiness for engagement with GCF is low at the moment, but knowledge and capacity exists within the Ministry of Climate Change that needs to be expanded to include other stakeholders, in particular from the provincial level but also among stakeholders on federal level. Climate Change considerations are currently being integrated into the planning framework and processes in Pakistan. The CPEIR process is well underway in the country and currently carried out for several provinces to establish a sound baseline with regards to national climate finance. The current Framework for Economic Growth (2011) lays emphasis on sustainable development and the need to combat climate change. Alignment will be established with the national plan and the identified projects and programmes. An outcome-focussed, readiness support effort in Pakistan can build on the initial efforts of the Ministry of Climate Change to raise awareness levels and develop institutional capacity to make contributions to the Fund s operations. GCF Readiness is therefore needed in this context to provide support for the organization of workshops and multi-stakeholder working groups, and to allow access to the technical capacity lacked to appropriately develop criteria to nominate entities for accreditation and to assess funding proposals (see section B.1 for further information).. SECTION B: SCOPE OF WORK Description of activities (Please provide detailed logical framework as an B.1 annex. See Annex I 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. Activity 1 will be implemented by GIZ as a delivery partner in close collaboration with the readiness implementing partner for activity 2 (UNDP) in Pakistan. Both activities will be coordinated by the MoCC in its central role regarding GCF developments. 1. Supporting the focal point (FP), and NDA when established, to fulfil its roles and responsibilities following the standardised work package for NDA or focal point strengthening: One of the roles and responsibilities of the focal point/nda is the coordination of various stakeholders as well as the implementation of the no-objection procedure. Activity 1 will develop ongoing engagement with stakeholders, especially the coordination mechanism between various ministries consistent with the Fund s Initial best practice options for country coordination and multistakeholder engagement. Activity 1 will also provide support for the establishment of the noobjection procedure for Pakistan as per the Fund s Initial no-objection procedure. 1.1. Support the establishment of a coordination mechanism a. Conduct high-level awareness raising events including a multi-stakeholder workshop

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 5 OF 10 involving relevant line ministries and other institutions as well as private sector and civil society representatives to strengthen awareness about the roles and responsibilities of the FP/NDA and potential national implementing entities (NIEs). b. Establish a multi-stakeholder working group consisting of officials from key line ministries and institutions as well as academia, civil society and private sector on the assessment of project proposals and elaborate minimum standards for no-objection procedure. 1.2. Strengthen capacities to identify and assess GCF access modalities and establish noobjection procedure c. Develop guidelines with key criteria for assessing Consistency with climate strategies and GCF requirements both for the project proposals or programmes and nomination of implementing entities in coordination with key stakeholders, in close coordination with the country programme to be developed under activity 2; d. Conduct comprehensive assessment of risks, benefits and challenges of different GCF access modalities suitable for the country, and assess capacity of some entities against GCF standards and environmental and social safeguards through the use of selfassessment tool based on a list of possible NIEs to be provided by the MoCC in consultation with the working group. B.2 Expected results Expected Results Activity Area 1: 1. Strengthened capacity to facilitate and coordinate country coordination mechanisms and multi-stakeholder processes engagement for country consultation; 2. Capacity to undertake engagement of stakeholders at national and subnational levels, including government, civil society and private sector actors consistent with the Fund s Initial best practice options for country coordination and multi-stakeholder engagement; 3. Capacity to fulfil the following roles and responsibilities as per decision B.04/05: Implement the no-objection procedures as per the Fund s initial no-objection procedure; Act as a focal point for communication with the Fund; 4. In-depth knowledge of the GCF and its procedures and operations; SECTION C: BUDGET (include total cost and share of GCF funding) Please use the separate budget templateprovided to detailed relevant line items. See Annex ( Budget) Activity 1: Category Outcome Consultants cost 60,000 Travel 18,000 Workshop 45,000 Other ( Including audit cost) 7,500 Contingency 7,500 Project Management Cost,12,000 Grand Total 150,000

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 6 OF 10 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 The proposed activities for activity area 1 will be implemented in a 6-month period by GIZ, delivery partner selected by the focal point. A detailed implementation plan will be provided in an inception document, which includes procurement plan and budget; Upon completion of activity 1 a completion report and financial report, including an audited expenditure statement, will be submitted. The reports, including outputs submitted with the reports, will be reviewed by the Secretariat before disbursement. D.2 Disbursement and implementation schedule Disbursement will be made in two tranches: The first disbursement, which amounts to US$75,000.00 will be transferred upon the submission of an inception document from the NDA/FP, in form and substance acceptable to the Fund, which includes detailed implementation plan, procurement plan and budget; The final disbursement of US$75,000.00 will be made upon submission of a completion report and financial report, including an audited expenditure statement. See Annex II. D.3 Procurement plan Please provide detailed procurement plan including methods. Anticipated procurement of consultant to render: a. Services for developing no-objection procedure as per GCF best-practice guidelines. b. Services for organising logistics for national and sub-national consultations All procurement will be through a competitive process following standard GIZ procurement guidelines. The consultants/technical experts and organisations contracted will be required to provide robust methodologies in their proposals, which describe how they will deliver programme outputs and achieve value for money. Detailed Terms of Reference for the various tasks which will be subcontracted during the preparatory phase will be developed by the delivery partner. Pakistan s focal point has recommended using GIZ as the delivery partner due to their active presence and engagement in Pakistan. A procurement plan that follows the standardized template is under development and will be submitted along with the inception report. SECTION E: MONITORING & REPORTING PLAN The monitoring of the activities aims at achieving projected results and quality control. Monitoring indicators of project activities are outlined in the Logical Framework. Activity monitoring will take place as project interventions occur. Project outputs and risks will be monitored as part of the ongoing discussion and reporting mechanism. The Steering Committee together with GCF focal point will regularly monitor the achievement of

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 7 OF 10 targets set against the indicators developed in this readiness proposal. Activity monitoring all project activities will be monitored on a regular basis based against the expected outcome. The implementation of activity area 1 by GIZ will be under the supervision of the focal point/nda and the project outputs will be reviewed and commented at the draft stage by the Fund. Since the duration of the assistance is envisaged to be only 6 months, an inception document will be submitted before the start of activities and a final project report will be developed after 6 months and not later than 8 months by the focal point/nda. The details of the monitoring of the project activities and outputs will be determined at inception phase. 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. Risks Coordination with multiple ministries, state government and other stakeholders may cause delay. Limited interest and engagement of institutions in Pakistan as prospective Implementing Entities (IEs) and intermediaries Mitigation strategy Formation of Steering Committee and Technical Committees with the participation of all the stakeholders will ensure coordination and timely delivery of outputs. MoCC will promote active engagement with agencies and possible IEs, intermediaries and other stakeholders to improve the ownership and buy-in as well as close coordination with international accredited agencies operating in Pakistan to ensure the development of project pipeline

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 8 OF 10 Annex I. Logical Framework OUTCOMES PROJECT SUMMARY INDICATORS BASELINES 1. NDA capacity to undertake Fund-related responsibilities and engage national stakeholders strengthened 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 noobjections) 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

READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 9 OF 10 OUTPUTS 1.1 A process for supporting coordination across stakeholders and facilitating engagement (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 1.1.1 Write up of the coordination process, and convening schedule 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

USD 75,000, in acc. with section D2 USD 75,000, in acc. with section D2 READINESS AND PREPARATORY SUPPORT PROPOSAL PAGE 10 OF 10 Annex II. Implementation and Disbursement Schedule Implementation Year 1 Year 2 Output 1 Activity 1 (Support ongoing engagement of stakeholders at national and provincial level) Activity 2 (Strengthen capacities to identify and assess GCF access modalities) Activity 3 (Support the appropriate oversight of Fund activities at the country level.) 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 1 0 1 1 12 Disbursement (specify amount & schedule)