with UNDP for the Republic of Ecuador 31 May 2017 NDA Strengthening & Country Programming

with UNDP for the Republic of Ecuador 31 May 2017 NDA Strengthening & Country Programming

PAGE 1 OF 21 ver. 19 August 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 21 ver. 19 August 2016 SECTION 1: SUMMARY 1. Country submitting the proposal 2. Date of initial submission 3. Last date of resubmission (if applicable)l 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: Ecuador Name of institution (representing National Designated Authority or Focal Point): Ministry of Environment (Ministerio del Ambiente del Ecuador-MAE) Name of official: María Victoria Chiriboga Position: Undersecretary of Climate Change Telephone: +593 2 398 7600 Email: maria.chiriboga@ambiente.gob.ec Full Office Address: Madrid 1159 y Andalucía, Quito-Ecuador 10/02/2017 1 st of March 2017 National Designated Authority Delivery partner Accredited entity Name of institution: United Nations Development Program (UNDP) Name of official: Gabriel Jaramillo Telephone: +593 2 246 0330 ext. 2113 Position: Energy and Environment Programme Specialist Full Office Address: Av. Amazonas 2889 y la Granja, Quito-Ecuador Email: gabriel.jaramillo@undp.org Green Climate Fund Readiness and Preparatory Support for Ecuador This Readiness Proposal has been developed to define a strategic engagement framework with the Fund that helps strengthen the NDA and the country s capacity to implement mitigation and adaptation actions. 6. Brief summary of the request (200 words) The proposal includes activities that will allow the NDA to build up national capacities and processes, engage different stakeholders in consulting and policy development processes, support access to finance, develop a country work program, and involve the private sector in climate change related projects and activities. These will allow Ecuador to be well prepared to carry out its climate change strategy as well as work in collaboration with the GCF to achieve global climate goals. This preparatory support will enhance communication and coordination processes between the NDA, the GCF, and other important stakeholders. It will also help strengthen the NDA s internal processes to successfully fulfil country programs and Nationally Determined Contributions. The planned activities will be executed using the procurement processes of the UNDP. 7. Total requested amount and currency The preparatory support grant amount requested is USD$ 300,000.00 USD$ 300,000.00 8. Anticipated duration 01/04/2017 01/04/2018 (12 months) 9. Is the country receiving other Readiness and Yes No

PAGE 3 OF 21 ver. 19 August 2016 Preparatory Support related to the GCF? No, the country does not have any preparatory support related to the GCF.

2016 PAGE 4 OF 21 ver. 19 August 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 0 1 2 0 1 2 1.1.1 Strengthen the current coordination mechanism -the Interinstitutional Committee for Climate Change (CICC) - by defining the strategic planning of CICC s Working Group and coordinating meetings in order to empower institutions in climate project development and climate financing. 1.1.2 Strengthen institutional capacities and processes within the NDA, to improve its coordinating ability and to fulfill its role as NDA, through the development of protocols for better coordination. 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 1.2.1 Assess the no-objection process currently in place at the NDA. 1.2.2 Improve the current process by including guidelines to operate within the GCF framework and disseminate such guidelines to different stakeholders to operate and submit projects to the GCF. 0 1 2 0 1 2 1.3.1 Assess the current position of the Government of Ecuador in relation to bilateral agreements and sovereignty issues and advance the discussion of the template for the bilateral agreement between Ecuador and the GCF. 1.3.2 Organize a workshop between the Ministry of Environment, the Ministry of Foreign Affairs, GCF and other relevant stakeholders to articulate negotiations regarding conditions for bilateral agreements, including privileges and immunities. 0 1 2 0 1 2 1.4.1 Develop a capacity building program (composed of webinar, workshops, and policy brief) for the NDA, Ministry of Finance, Ministry of Foreign Affairs, and other stakeholders relevant to climate finance related issues, to increase knowledge on financial opportunities and processes. 1.4.2 Establish an online platform to monitor the public budget assigned to climate change activities and other climate finance related initiatives, in order to monitor the country`s financial expenditures in climate change and clarify Ecuador`s needs in terms of funding. 1.4.3 Analyze and disseminate potential financial instruments for climate change mitigation and adaptation in Ecuador. 1.4.4. Develop guidelines for the construction of a National Financial Strategy for Climate Change. 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 2. Stakeholders engaged in consultative processes 2.1 Stakeholders engaged in consultative processes 2.2 Country programmes, including adaptation priorities, developed and continuously updated 1-8 5-8 PAGE 5 OF 21 ver. 19 August 0 1 2 0 1 2 2.1.1 Strengthen and articulate existing participatory mechanisms related to climate change and climate finance where stakeholders are involved in consultations and decision making processes. 2.1.2 Identify key stakeholders that should be engaged in consultative processes (public sector, civil society, including women organizations, private sector, NGOs, academia, subnational governments) and develop the necessary participatory mechanisms for the: Construction of NDCs Initial discussions for a National Financial Strategy 0 1 2 0 1 2 2.2.1 Identify and prioritize sectors for the development of a country work program that includes mitigation and adaptation measures (with social, environmental, economic, and gender considerations), in order to access funds from the GCF. 2.3 Stakeholder consultations conducted with equal representation of women 2.4 Annual participatory review of GCF portfolio in the country organized 0 1 2 0 1 2 2.3.1 Identify a methodology to incorporate equal representation of woman in consultation processes. 0 1 2 0 1 2 2.4.1 Develop a list of project ideas, based on the prioritized sectors in outcome 2.2, in a participatory manner and consolidate them in the country work program. 3. Direct access realized 0-8 1-8 3.1 Candidate entities identified and 0 1 2 0 1 2 3.1.1 Organize a workshop to raise awareness among potential accredited entities regarding the nominated for accreditation process of GCF accreditation (social and environmental risk, fiduciary standards, gender policies). 3.2 Direct access entity accredited 0 1 2 0 1 2 3.3 Entity/ies annual/multi-annual 0 1 2 0 1 2 work programme developed 3.4 Funding proposals through 0 1 2 0 1 2 enhanced direct access modality approved 4. Access to finance 0-8 1-8 4.1 Structured dialogue between the NDA/Accredited Entities and the GCF Secretariat organized 0 1 2 0 1 2 4.2 Country programmes, concept 0 1 2 0 1 2 4.2.1 Develop 1 concept note draft regarding a specific project in a prioritized sector. notes, including on adaptation, developed that implement high-

2016 PAGE 6 OF 21 ver. 19 August impact 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 3-8 5.1 Private sector engaged in country consultative processes 5.2 Enabling environment for crowding-in private sector investments at national, regional and international levels exists 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 0 1 2 0 1 2 5.1.1 Strengthen the current private sector engagement in consultation processes by: Engaging the private sector in dialogues with GTCICC representatives Disseminate the requirements and benefits offered by the Private Sector Facility to private sector stakeholders. 0 1 2 0 1 2 5.2.1 Assess the opportunities and barriers existent in the country for private sector engagement in climate projects. 0 1 2 0 1 2 TOTAL 4 18 0 1 2 0 1 2 5.4.1 Support stakeholders in the process of submitting proposals to the Private Sector Facility that are aligned to the NDCs, though a series of workshops.

PAGE 7 OF 21 ver. 19 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) Ecuador has developed a strong legal framework to include climate change as a national priority and a cross-cutting issue in every sector of the economy. The new Constitution of Ecuador in place since 2008 is the first in the world to recognize the rights of nature. In alignment with the Constitution, mitigation and adaptation were declared State policies in July 2009. Furthermore, the country has a National Development Plan (PNBV) 2013-2017 that aims to guarantee the rights of nature by promoting environmental, social, and economic sustainability. In order to implement climate change related actions, Ecuador created the National Climate Change Strategy, which includes short, medium, and long-term mitigation and adaptation objectives. Although the country has a solid legal and policy framework, the implementation of programs and projects is incipient. In order to unleash Ecuador s ability to structure and execute mitigation and adaptation plans, GCF funds are needed to: i) Enhance technical capacities; ii) Strengthen participatory processes that include public and private sectors as well as civil society and academia, among others; iii) Institutionalize climate change policies through existing inter-institutional mechanisms, and iv) Develop a country work program aligned to the country s NDCs, adaptation, and financial necessities, which includes social, environmental, economic, and gender considerations. Therefore, the financial support from GCF Readiness will allow the NDA to close gaps in the technical, institutional, and strategic aspects mentioned above.

PAGE 8 OF 21 ver. 19 August 2016 SECTION 4: BUDGET, PROCUREMENT, IMPLEMENTATION AND DISBURSEMENT GCF Readiness Outcome Budget Description Amount US$ (year 1) Total Amount US$ See budget note:* Local Consultants 102.133,85 102.133,85 1 GCF Readiness Outcome 1 Audio Visual&Print Prod Costs 3.877,66 3.877,66 2 Training, Workshops and Conferences 8.070,00 8.070,00 3 Total Outcome 1 114.082 114.082 Local Consultants 34.000,00 34.000,00 4 GCF Readiness Outcome 2 Travel 23.896,00 23.896,00 5 Training, Workshops and Conferences 6.000,00 6.000,00 6 Total Outcome 2 63.896 63.896 GCF Readiness Outcome 3 Training, Workshops and Conferences 450,00 450,00 7 Total Outcome 3 450 450 GCF Readiness Outcome 4 Local Consultants 47.819,36 47.819,36 8 Total Outcome 4 47.819 47.819 GCF Readiness Outcome 5 Local Consultants 6.000,00 6.000,00 9 Training, Workshops and Conferences 2.700,00 2.700,00 10 Total Outcome 5 8.700 8.700 Project management costs** Contractual Services - Individ 21.793,39 21.793,39 11 Professional Services 3.000 3.000 12*** Total Project management costs 24.793 24.793 Total operation costs (Outcome 1+2+3+4+5+PMC) 259.740 259.740 Contingency (max. 5% of total operation costs) Miscellaneous Expenses 12.987 12.987 13 Total operation costs + Contingency 272.727 272.727 DP fee (10%) 27.273 27.273 14 TOTAL PROJECT COSTS INCLUDING DP FEE 300.000 300.000

PAGE 9 OF 21 ver. 19 August 2016 * Budget notes are mandatory ** Costs of project manager/coordinator, project assistant, travel costs of the PMU, other General Operating Expenses *** Should be reserved for audit costs 1. Refers to fees for the following consultancies: 4 consultants that will give conferences as part of a capacity building program; 1 consultant to assess the no objection process at the NDA and provide guidelines to improve it; 1 consultant to assess the current position of Ecuador in relation to bilateral agreements ; 1 consultant to develop an online platform to monitor the public budget assigned to climate change activities; 1 consultant to analyze potential financial instruments for climate change mitigation and adaptation in Ecuador; 1 consultant to develop guidelines for the construction of a National Financial Strategy for Climate Change; 1 consultant in charge of coordinating the strengthening of the NDA and its current coordination mechanism (CICC). 2. Refers to printing paper and policy brief publications. 3. Refers to the following workshops: 4 workshops to strengthen the Interinstitutional Committee for Climate Change (CICC); 1 workshop to articulate negotiations between the Ministry of Environment, the Ministry of Foreign Affairs, GCF and other relevant stakeholders regarding conditions for bilateral agreements; 4 workshops as part of a capacity building program in climate financing (can also be in webinar format); 1 workshop to disseminate financial instruments to different stakeholders. 4. Refers to to fees for the following consultancies: 1 consultant in charge of developing participatory mechanisms; 1 consultant to identify a methodology to incorporate equal representation of woman in consultation processes; 1 consultant to develop a project pipeline consolidated in a country work program. 5. Refers to travel costs for 23 people, including DSA for 6 workshops, detailed in Note 6. 6. Refers to the cost of organizing the 6 workshops as follows: 1 workshop for the development of a project pipeline, 1 workshop to prioritize sectors for the country work program, and 4 workshops to strengthen and articulate existing participatory mechanisms related to climate change and climate finance. 7. Refers to 1 workshop to raise awareness among potential accredited entities regarding the process of GCF accreditation. 8. Refers to 1 consultants to develop 1 concept notes regarding specific projects in prioritized sectors. 9. Refers to 1 consultant to assess the opportunities and barriers existent in the country for private sector engagement in climate projects. 10. Refers to 2 workshops to support stakeholders in the process of submitting proposals to the Private Sector Facility that are aligned to the NDCs and coffee breaks to support other related meetings. 11. Project Coordinator. The Project Coordinator will be responsible for overall project implementation. She/He will work under the supervision of UNDP, and will coordinate with MAE and other concerned stakeholders to ensure adequate project implementation. The Project Coordinator will run the Project on a day-to-day basis, and will ensure that the project produces the results specified in the project document, to the required standards of quality and within the specified constraints of time and cost. In addition, the Project Coordinator will provide technical inputs within the outcome 1. Therefore, half of his/her cost will be covered by this outcome under local consultants. Specifically, the Project Coordinator will define the strategic planning of CICC s Working Group, and establish protocols for better coordination within the NDA. (See ToR attached for further details) 12. Audit costs 13. 5% of contingency for miscellaneous expenses. 14. Delivery Partner fee

PAGE 10 OF 21 ver. 19 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. UNDP will manage the readiness funding and will be responsible for providing and ing the services described in this proposal, as well as reporting on the progress of this implementation in close coordination and under supervision of the NDA/FP. The procurement will be processed in accordance with the procurement guidelines and policies of UNDP. As UNDP has been accredited by the Fund as an implementing entity at the Fund s ninth Board meeting, the Fund will not undertake a due diligence on the fiduciary management capacity of UNDP, replacing the process with its accreditation process. The NDA/FP will approve the interim progress report and completion report provided by the delivery partner. UNDP, in collaboration with the NDA/FP, will competitively procure services consistent with its procurement policies: Consultants will be procured on a competitive basis and the terms of reference of consultants will be developed, in coordination with the NDA, further to include the tasks outlined in the request summary above. The NDA/FP may also add other tasks to the ToRs of the consultants in accordance with the Fund s defined scope of work on NDA/FP strengthening within the resource envelope in this proposal and any supplementary resources secured from other sources. For items such as venues and travel for stakeholder workshops to be organized, a procurement method will be used to procure such services consistent with UNDP s procurement policies. Information on the process and the results of procurement to be undertaken will be included in the inception report where such information can be provided in advance, and in any case, in interim progress or completion reports when such procurement has been undertaken and completed. Table 1 presents a summary of the procurement items and Table 2 presents a more detailed and commented version of the procurement plan.

PAGE 11 OF 21 ver. 19 August 2016 Table 1. Summary of procurement items Budget Description General Description Contract Value Local Consultants 15 Contracts $189,953.21 Recruitment Method Request For Quotes Training 19 Workshops $17,220.00 Micro purchases Audio Visual&Print Prod Costs Travel Service - individual Professional Services Advertisement Date (quarter/year) 1Q, 2Q & 3Q 2017 1Q, 2Q & 3Q 2017 International or National Assignment National National 2 Policy Publications $3,877.66 Micro purchases 1Q & 2Q 2017 National Air tickets and daily substance allowance Project Coordinator $21,793.39 Audit $3,000.00 $23,896.00 Direct Payment 2Q 2017 National Competitive process Request For Quotes 1Q 2017 4Q 2017 National National

PAGE 12 OF 21 ver. 19 August 2016 Table 2. Detailed and commented procurement items Outcome Atlas Budget Description 1.1.1 Local Consultant General Description IC Define the strategic planning of CICC s Working Group Contract Value Recruitment Method 1 Advertisement Date (quarter/year) International or National Assignment $9.566,93 RFQ 1Q 2017 National 1.1.1 Training Workshops $2.640,00 micro purchase 1Q 2017 1.1.1 Audio Visual&Print Prod Costs 1.1.2 Local Consultant Policy brief publications $877,66 micro purchase 1Q 2017 IC Establish protocols for better coordination within the NDA $9.566,92 RFQ 2Q 2017 National Type of Comments The deliverable will be produced by the by a professional with expertise in strategic planning, proccess design, and project coordination in climate change related areas. The consultant will have to engage in meetings to understand the context and the role of the CICC, read technical documents, and develop the strategic plannning. The product expected from this consultancy is a document with the strategic planning for CICC. The person in charge of this product will also develop the consultancy of Outcome 1.1.2. Refers to 4 workshops with a duration of 2 days and 22 participants. The purpose of these workshops is to bring together all the CICC s members and implement activities defined in the strategic planning. The deliverable will be produced by the by a professional with expertise in strategic planning, proccess design, and project coordination in climate change related areas. The consultant will have to interview members of the NDA, read technical documents, and understand the processes within the NDA. The product expected from this consultancy is a set of procedures and protocols for the better functioning of the NDA. The product expected from this consultancy is a document with the strategic planning for CICC. The person in charge of this product will also develop the consultancy of Outcome 1.1.1. 1.2.1, 1.2.2 Local Consultant IC Assess the no objection process currently in place at the NDA and develop guidelines to improve the no objection process that will allow for operations within the GCF framework $18.000,00 RFQ 2Q 2017 National This will be an individual consultant, for a period of 3 months. The consultant should have expertise in climate finance and public sector processes. The consultant will interview members of the NDA regarding the no objection process, read and research about the operations of the GCF, and improve the current process of no objection letters. The product expected in this consultancy is an assesment of the current no objection process and guidelines to improve it.

PAGE 13 OF 21 ver. 19 August 2016 Outcome 1.2.2 Atlas Budget Description Audio Visual&Print Prod Costs General Description Contract Value Recruitment Method 1 Advertisement Date (quarter/year) Policy brief publications $2.000,00 micro purchase 2Q 2017 International or National Assignment Type of Comments 1.3.1 Local Consultant IC Assess the current position of the Government of Ecuador in relation to bilateral agreements and sovereignty issues and advance the discussion of the template for the bilateral agreement between Ecuador and the GCF. $15.000,00 RFQ 2Q 2017 National This will be an individual consultant for a period of 2 months and a half. The consultant should have expertise in international relations and climate public policy. The consultant will have to interview members of different public insitutions like the Ministry of Environment, The Ministry of Finance, and the Ministry of Foreign Affairs to understand the position of Ecuador regarding bilateral agreements and coordinate conversations with the GCF to advance on the negotiations. The products of the consultancy are: an assesment of Ecuador s position in relation to bilateral agreements, draft of memoranda of understanding between Ecuador and the GCF, template of the agreement, and other related documents. 1.3.2 Training Workshops $1.080,00 micro purchase 2Q 2017 1.4.1 Local Consultant 1.4.1 Audio Visual&Print Prod Costs IC Develop a capacity building program (composed of webinar, workshops, and policy brief) for the NDA $19.000,00 RFQ 2Q 2017 National Policy brief publications $1.000,00 micro purchase 2Q 2017 Refers to 1 workshop that lasts 3 days between the Ministry of Environment, the Ministry of Foreign Affairs and GCF to articulate negotiations regarding conditions for bilateral agreements. 12 people will participate in this workshop. This item consists on 4 consultants, one consultant per planned workshop. Workshops will be spread out throughout the year, but the advertisement will be done at the beginning of 2017 to have all s ready beforehand. The 4 consultants will be experts in different subfields of climate change finance yet to be determined. They will have to develop the content of a module for a capacity building program.

PAGE 14 OF 21 ver. 19 August 2016 Outcome Atlas Budget Description General Description Contract Value Recruitment Method 1 Advertisement Date (quarter/year) 1.4.1, 1.4.4 Training Workshops $4.350,00 micro purchase 2Q 2017 1.4.2 Local Consultant 1.4.4 Local Consultant 1.4.5 Local Consultant IC Establish an online platform to monitor the public budget assigned to climate change activities and other climate finance related initiatives, in order to monitor the country`s financial expenditures in climate change and clarify Ecuador`s needs in terms of funding. IC Analyze and disseminate potential financial instruments for climate change mitigation and adaptation in Ecuador IC Develop guidelines for the construction of a National Financial Strategy for Climate Change International or National Assignment $18.000,00 RFQ 2Q 2017 National $4.000,00 RFQ 2Q 2017 National $9.000,00 RFQ 2Q 2017 National Type of Comments Refers to 4 workshops with a duration of 1 day and the participation of 30 people. These workshops could have a seminar or a webinar format and consist on conferences dictated by experts, as part of a capacity building program on climate finance. The value also includes a 1 day workshop with 25 people, where financial instruments for climate change mitigation and adaptation will be disseminated. consultant for a period of 3 months. The consultant should have expertise in computer programming and systems engineering. The consultant will have to read technical documents regarding climate finance in Ecuador, understand the system of expense report to the Ministry of Finance, and develop an online tool to monitor climate expenditure in the country. The product of this consultancy is a working online platform to monitor the public budget assigned to climate change. This will be an individual consultant for a period of 1 month. The consultant should have expertise in climate change financing in Ecuador and will be in charge of researching about financial mechanisms and relate them to climate change. The product of this consultancy is a document with the financial instruments available in the country. This will be an individual consultant for a period of 1 month and a half. The consultant should have expertise in climate change financing in Ecuador and strategic planning. The consultant will have to read technical documents with financial information on climate change in Ecuador, understand the national strategies related to climate change, and provide insights regarding a national financial strategy for climate change. The product of this consultancy is a document with the guidelines for the country s financial strategy for climate change.

PAGE 15 OF 21 ver. 19 August 2016 Outcome Atlas Budget Description 2.1.1 Travel General Description Air tickets and daily substance allowance Contract Value Recruitment Method 1 Advertisement Date (quarter/year) $19.272,00 n/a 2Q 2017 International or National Assignment Type of Comments Refers to air tickets and daily subsistance allowance for 15 people, who will participate in 4 workshops regarding existing participatory mechanisms related to climate change issues. 2.1.1 Training Workshops $4.200,00 micro purchase 2Q 2017 Refers to 4 workshops of 1 day each to maintain existing participatory mechanisms related to climate change and consolidate consultations and decision making processes. 35 people will participate in the workshops. 2.1.2 Local Consultant IC Identify key stakeholders that should be engaged in consultative processes (public sector, civil society, private sector, NGOs, academia, subnational governments) and develop the necessary participatory mechanisms for the: Construction of NDCs Initial discussions for a National Financial Strategy $12.000,00 RFQ 2Q 2017 National This will be an individual consultant for a period of 2 months. The consultant should have expertise in climate change financing, development of participatory mechanisms, and mitigation actions. The consultant will have to engage in interviews with different stakeholders, read technical documents regarding NDCs and financial strategies in other countries, and identify relevant participatory mechanisms to be applied in Ecuador. The products of this consultancy are the development of participatory mechanisms for the construction of NDCs and the National Financial Strategy. 2.2.1 Training Workshops $900,00 micro purchase 2Q 2017 2.3.1 Local Consultant IC Identify a methodology to incorporate equal representation of woman in consultation processes. $4.000,00 RFQ 2Q 2017 National Refers to 1 workshop that lasts 1 day to prioritize sectors for the development of a country work program. 15 people will be involved in the workshop. This will be an individual consultant for a period of 1 month. The consultant should have expertise in gender issues and consultation processes and will have to interview members of the NDA and other stakeholders related to climate change processes in order to identify the best way to incorporate women in such discussions. The product of this consultancy is a methodology to incorporate equal representation of women in consultation processes.

PAGE 16 OF 21 ver. 19 August 2016 Outcome Atlas Budget Description 2.4.1 Local Consultant 2.4.1 Travel General Description IC Develop a list of project ideas, based on the prioritized sectors in outcome 2.2, in a participatory manner and consolidate them in the country work program Air tickets and daily substance allowance Contract Value Recruitment Method 1 Advertisement Date (quarter/year) $18.000,00 RFQ 2Q 2017 $4.624,00 n/a 2Q 2017 International or National Assignment Type of Workshops corresponding to item 2.2 will be done at the beginning of the year Comments This will be an individual consultant for a period of 3 months. The consultant should have expertise in climate change mitigation and adaptataion measures and participatory mechanisms. The consultant will have to organize an interministerial workshop and identify a methodology to develop a list of project ideas to be incorporated in a country work program. The product of this consultancy is the list of project ideas consolidated in a country work program. Refers to air tickets and daily subsistance allowance for 8 people, who will participate in one two day workshop that will consist in identifying and prioritizing a list of project ideas to be included in a country work program. 2.4.1 Training Workshops $900,00 micro purchase 2Q 2017 Refers to a one two day workshop to identify and prioritize a list of project ideas to be included in a country work program. 15 people will participate in this workshop. 3.1.1 Training Workshops $450,00 micro purchase 2Q 2017 Refers to a one day workshop to raise awareness among potential entities regarding GCF accreditation. 15 people will participate in this workshop. 4.2.1 Local Consultant IC Develop 1 concept note draft regarding specific projects in prioritized sectors. $47.819,36 RFQ 3Q 2017 This will be an individual consultant for a period of 8 months. The consultant should have expertise in climate change mitigation and adaptataion measures and development of concept notes. The specific sector of expertise will be defined once the topic of the concept note has been determined. The consultant will have to work closely with the institution mostly related to the concept note s topic and will need to do so in coordination with the Ministry of Environment to develop each of the parts established in the GCF s concept note template. The product of this consultancy is the concept note draft regarding a specific project.

PAGE 17 OF 21 ver. 19 August 2016 Outcome Atlas Budget Description General Description Contract Value Recruitment Method 1 Advertisement Date (quarter/year) 5.1.1 Training Workshops $1.200,00 micro purchase 3Q 2017 International or National Assignment Type of Comments Refers to financing the participation of 10 members of the private sector in 4 workshops already planned and developed throughout the year. 5.2.1 Local Consultant IC Assess the opportunities and barriers existent in the country for private sector engagement in climate projects $6.000,00 RFQ 3Q 2017 This will be an individual consultant for a period of 1 month. The consultant should have expertise in climate change financing and private sector engagement in climate change projects. The consultant will have to research about the private sector engagement in climate change projects in Ecuador, read legislation regarding private sector participation in strategic sectors and will have to interview key private players. The product of this consultancy is an assesment of the opportunities and barriers in the country for private sector engagement in climate projects. 5.4.1 Training Workshops $1.500,00 micro purchase 3Q 2017 PMC Service Contract Project Coordinator $21.793,39 Competitive process 1Q 2017 National Indivual Refers to two one day workshops to support stakeholders in the process of submitting proposals to the Private Sector Facility. 25 people will participate in these workshops. The Project Coordinator will be responsible for overall project implementation. She/He will work under the supervision of UNDP, and will coordinate with MAE and other concerned stakeholders to ensure adequate project implementation. The Project Coordinator will run the Project on a day-to-day basis, and will ensure that the project produces the results specified in the project document, to the required standards of quality and within the specified constraints of time and cost. In addition, the Project Coordinator will provide technical inputs within the outcome 1 (1.1.1 and 1.1.2): Define the strategic planning of CICC s Working Group; and Establish protocols for better coordination within the NDA. Therefore, half of his/her cost will be covered by this outcome under local consultants. PMC rofessional serviceaudit $3.000,00 RFQ 4Q 2017 Refers to the cost of undertaking an audit

2016 PAGE 18 OF 21 ver. 16 August 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. This readiness grant is expected to start implementation in April 2017, for a 12-month period. Disbursement request will be managed at portfolio level by UNDP-GEF MPSU in NY, as agreed in the Framework Readiness and Preparatory Support Grant Agreement between GCF and UNDP. Under Clause 4 of said Framework Agreement, the Delivery Partner shall be entitled to submit two Requests for Disbursement each year. Each such Request for Disbursement must be submitted to the Fund within 30 days of receipt by the Fund of the Portfolio Report referred to in Section 9.02. UNDP-GEF is entitled to submit its first request for disbursement at any time for newly approved projects. Thereafter, UNDP-GEF will submit cash disbursement requests for six months (portfolio level) twice a year. 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. 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 The Government of Ecuador has identified UNDP as its delivery partner for the readiness programme. UNDP will take responsibility, under the leadership and guidance of the NDA/FP, for the implementation of the proposed programme including fiduciary management. Funds from the GCF will be transferred to UNDP, which will be the entity in charge of executing the budget according to its policies and process. As per the Framework Readiness and Preparatory Support Grant Agreement, the project will be implemented under Direct Implementation Modality following UNDP POPP guidance available here: https://info.undp.org/global/popp/frm/pages/direct-implementation-dim-modality.aspx.

2016 PAGE 19 OF 21 ver. 16 August UNDP Ecuador will be responsible for services related to recruitment of project staff and consultants, travel, sub-ing, and organization of national workshops in coordination with the NDA. Related costs of UNDP Ecuador services will be borne from the Project Management Cost budget. UNDP-GEF will delegate spending authority to the UNDP Country Office. UNDP-GEF will approve the budget, and UNDP Country Office can spend within the approved spending limits established by UNDP-GEF. The project will be overseen by the UNDP-GEF Global GCF Readiness Coordinator while day-to-day management will be undertaken by the national coordinator. UNDP-GEF will provide financial and technical oversight services for the outcomes and outputs of the project. UNDP will ensure that project monitoring and evaluation run according to an agreed schedule, and in line with UNDP and GCF requirements, in coordination with the NDA. For these purposes, the NDA and UNDP will establish implementation arrangements, as described below: Entity Role Responsibility Ministry of Environment GCF Focal Point/NDA Ensure implementation of the GCF Readiness grant upholds country ownership. In coordination with UNDP CO, Ministry of Environment will lead and monitor the entire process. Its activities will include: strategic planning of consultancy deliverables and policy briefs, development of ToRs, assessment of profiles for consultancy s, coordination of briefing meetings to evaluate consultancy results, revision and approval of consultancy intermediate and final products, workshop agenda coordination and approval, dispatch and track workshop invitations, confirmation of workshop participants, coordination of workshop venue and logistics, revision and approval of workshop systematization, policy brief content revision, policy brief dissemination, and others.

2016 PAGE 20 OF 21 ver. 16 August UNDP CO Delivery Partner Implement the programme and responsible for services related to recruitment of project staff and consultants, travel, sub-ing, and organization of national workshops, in coordination with the NDA. UNDP ual staff National Coordinator Undertake the day-to-day programme management activities and deliver technical reports as specified in the ToR. This management of funds between UNDP and the NDA will ensure that the activities take place in an adequate and well-planned manner, and that they respond to the necessities and priorities established by the NDA. Other relevant information Please find below the Terms of Reference for the Project Coordinator, as requested: Terms of Reference for Project Coordinator As agreed with MAE, the Project Coordinator for the Ecuador readiness project will serve two roles: as main coordinator/manager of the project and as technical expert to deliver outputs under Outcome 1. As Project Coordinator, he/she will be responsible for overall project implementation. She/He will work under the supervision of UNDP, and will coordinate with MAE and other concerned stakeholders to ensure timely completion of all project deliverables, as well as adequate day-to-day monitoring and reporting to UNDP-GEF and the GCF. The Project Coordinator will also be responsible for technical deliverables within outcome 1: Define the strategic planning of CICC s Working Group; and Establish protocols for better coordination within the NDA. Experience and education required: Master s degree on development, environment, climate change, public finance, or other similar fields related to the project. Experience of at least 3 years in project management in the fields of development and/or environment. Proven knowledge of national context in regards to environmental and climate finance. Proven experience with national government institutions. Significant knowledge in climate change and environmental funds and inter-institutional processes for adequate decision-making. Main duties and responsibilities: Provide overall managerial direction and leadership for the project, working closely with key stakeholder. Plan the activities of the project and monitor progress against the project results framework. Coordinate the procurement processes for the activities of the project, including drafting terms of reference and work specifications, and overseeing all ors work. Manage and monitor the project risks.

2016 PAGE 21 OF 21 ver. 16 August Capture lessons learned during project implementation. Prepare technical and financial reports as requested. Define the strategic planning of CICC s Working Group; and Establish protocols for better coordination within the NDA. Ensure the audit and evaluations are undertaken as per the UNDP guidance.

Number of Number of Number of Number of Duration of Number of Daily Timeframe of junior senior People involved Outcome Activities Total cost Consultants Travel Workshops Publications national international workshop workshops Deliverable Cost table for consultants Allowance consultancy consultant consultant in workshops travelers travelers (days) per year s s Strengthen the current coordination mechanism -the Interinstitutional Committee CICCs Strategic for Climate Change (CICC) - by defining the strategic planning of CICC s Working planning, monthly 1.1.1 15,000 12,000-3,000-2 - 1 - - 25 1 4 description Group and coordinating meetings in order to empower institutions in climate systematized amount 1.1 project development and climate financing. workshops Strengthen institutional capacities and processes within the NDA, to improve its Protocols and 1.1.2 coordinating ability and to fulfill its role as NDA, through a consultant in charge of 12,000 12,000 - - 2 1 - - - - - junior consultant 4000 procedures establishing protocols for better coordination Total outcome 1.1 27,000 24,000-3,000 - - 4-2 - - 25 1 4 senior consultant 6000 Document of 1.2.1 Assess the no objection process currently in place at the NDA 9,000 - - - - - - - - assessment 1.2 Improve the current process by including guidelines to operate within the GCF 18,000 3 1 Document with 1.2.2 framework and disseminate such guidelines to different stakeholders to operate 10,000 - - 1,000 - - - - - guidelines, policy brief and submit projects to the GCF. Total outcome 1.2 19,000 18,000 - - - 1,000 3-1 - - - - - Document of assessment and drafts Assess the current position of the Government of Ecuador in relation to bilateral of memoranda of 1.3.1 agreements and sovereignty issues and advance the discussion of the template for 18,000 18,000 - - - 3-1 - - - - - understanding, the bilateral agreement between Ecuador and the GCF. 1.3 template, and other related documents Sistematized Organize a workshop between the Ministry of Environment, the Ministry of workshop and 1.3.2 Foreign Affairs, GCF and other relevant stakeholders to articulate negotiations 1,080 - - 1,080 - - - - - - 12 3 1 documents resulting regarding conditions for bilateral agreements, including privileges and immunities. from meeting Total outcome 1.3 19,080 18,000-1,080 - - 3-1 - - 12 3 1 Develop a capacity building program (composed of webinar, workshops, and policy Sistematized brief) for the NDA, Ministry of Finance, Ministry of Foreign Affairs, and other 1.4.1 23,400 20,000 2,400 1,000 1 2 2 20 1 4 workshops, policy relevant stakeholders relevant to climate finance related issues, to increase brief knowledge on financial opportunities and processes. Establish an online platform to monitor the public budget assigned to climate change activities and other climate finance related initiatives, in order to monitor 1.4.2 18,000 18,000 - - - 3 1 - - 0 0 0 Online platform 1.4 the country`s financial expenditures in climate change and clarify Ecuador`s needs in terms of funding. Document with Analyze and disseminate potential financial instruments for climate change mechanisms and 1.4.4 5,200 4,000 1,200 1 1 20 1 2 mitigation and adaptation in Ecuador systematized workshops Develop guidelines for the construction of a National Financial Strategy for Climate 1.4.5 12,000 12,000 - - - 2 1 - - - - - Guidelines Change Total outcome 1.4 58,600 54,000-3,600-1,000 7 3 4 - - 40 2 6 TOTAL OUTCOME 1 123,680 114,000-7,680-2,000 17 3 8 - - 77 6 11 Strengthen and articulate existing participatory mechanisms related to climate Systematized 2.1.1 change and climate finance where stakeholders are involved in consultations and 22,528-7,800 3,600 11,128 - - - - 13-30 1 4 workshops decision making processes. Identify key stakeholders that should be engaged in consultative processes (public 2.1 sector, civil society, private sector, NGOs, academia, subnational governments) and 3 participatory develop the necessary participatory mechanisms for the: 2.1.2 12,000 12,000 2 1 mechanisms Construction of NDCs structured Initial discussions for a National Financial Strategy Cost table for workshop (food and venue) amount per description person per day Food and 30 venue Cost table for daily Travel cost table subsistence allowance amount amount description description per person per person Stay and 214 national 150 dinner international 1200 flight 2.2 2.2.1 2.3 2.3.1 Total outcome 2.1 34,528 12,000 7,800 3,600 11,128-2 - 1 13-30 1 4 Identify and prioritize sectors for the development of a country work program that Systematized includes mitigation and adaptation measures, in order to access funds from the 900 900 workshop and GCF. 15 2 1 prioritized sectors Total outcome 2.2 900 - - 900 - - - - - - - 15 2 1 Identify a methodology to incorporate equal representation of woman in 4,000 4,000 - - - - - 1 1 - - - Methodology consultation processes. Total outcome 2.3 4,000 4,000 - - - - 1 1 - - - - - - Develop a project pipeline, based on the prioritized sectors in outcome 2.2, in a Project pipeline within 2.4 2.4.1 31,024 24,000 2,400 1,200 3,424 participatory manner and consolidate them in the country work program country work program, systematized workshops 4 1 8 20 1 2 Total outcome 2.4 31,024 24,000 2,400 1,200 3,424-4 - 1 8-20 1 2 TOTAL OUTCOME 2 70,452 40,000 10,200 5,700 14,552-7 2 21-65 4 7 1 Raise awareness among potential accredited entities regarding the process of GCF Systematized 3.1 3.1.1 900 900 15 1 2 accreditation (social and environmental risk, fiduciary standards). workshops Total outcome 3.1 900 - - 900 - - - - - - - 15 1 2 TOTAL OUTCOME 3 900 - - 900 - - - - - - - 15 1 2 Develop at least 2 concept 48,000 48,000 4.2 4.2.1 notes regarding specific projects in prioritized sectors. 4 2 Concept notes 4 2 Total outcome 4.2 48,000 48,000 - - - - - - - - - - TOTAL OUTCOME 4 48,000 48,000 - - - - # 4-2 - - - - - 5.1 5.1.1 Strengthen the current private sector engagement in consultation processes by: Engaging the private sector in dialogues with GTCICC representatives Disseminate the requirements and benefits offered by the Private Sector Facility to private sector stakeholders. 960-960 - - - - 8 1 4 Systematized workshops 5.2 5.2.1 5.4 5.4.1 Total outcome 5.1 960 - - 960 - - - - - - - 8 1 4 Assess the opportunities and barriers existent in the country for private sector 6,000 6,000 engagement in climate projects 1 1 Assesment 1 1 Total outcome 5.2 6,000 6,000 - - - - - - - - - - Support stakeholders in the process of submitting proposals to the Private Sector Systematized 3,000-3,000 - - - - 25 1 4 Facility that are aligned to the NDCs, though a series of workshops. workshops Total outcome 5.4 3,000 - - 3,000 - - - - - - - 25 1 4 TOTAL OUTCOME 5 9,960 6,000-3,960 - - - - - 33 2 8 1 1 TOTAL BUDGET - ACTIVITIES 252,992 208,000 10,200 18,240 14,552 2,000 29 4 13 21-190 13 28 10% ADM fee 25,299 5% contingencies 12,650 External audit 9,600 TOTAL BUDGET AFTER FEES, CONTINGENCIES AND AUDIT 300,540.80