project cycle ibrd, cdm & gef

Project CycleProject CycleIBRD, CDM & GEFIBRD, CDM & GEF

December 2005December 2005

Structure of presentationStructure of presentation

Why mitigation is importantWhy mitigation is important The project cycle in lending The project cycle in lending

operationsoperations Project cycle in BioCFProject cycle in BioCF Project Cycle in GEFProject Cycle in GEF Concluding remarksConcluding remarks

IBRD LendingIBRD Lending

IdentificationIdentification PreparationPreparation AppraisalAppraisal ApprovalApproval

IBRD processIBRD process

IdentificationIdentification

1. Identification Mission1. Identification MissionSend SMOs two weeks before departureSend SMOs two weeks before departure

2. Select Quality Reviewers2. Select Quality ReviewersBefore #3Before #3

3. Draft PCN and concept-stage PID & ISDS3. Draft PCN and concept-stage PID & ISDSBefore #4Before #4

4. Issue Concept Package4. Issue Concept PackageAs agreed with Country DirectorAs agreed with Country Director

IBDR processIBDR process


5. Concept Review Meeting (CD or ROC)5. Concept Review Meeting (CD or ROC)8 days after #48 days after #4

6. Minutes of Concept Review Meeting Circulated6. Minutes of Concept Review Meeting Circulated5 days after #55 days after #5

7. Approval of PCN Review Minutes by CD7. Approval of PCN Review Minutes by CD3 days after minutes are circulated3 days after minutes are circulated

8. Send PID and ISDS to InfoShop8. Send PID and ISDS to InfoShop5 days after CD approval of minutes5 days after CD approval of minutes


PreparationPreparationStrategic contextStrategic context

Technical project preparationTechnical project preparation

Social and Environmental SafeguardsSocial and Environmental Safeguards

Financial ManagementFinancial Management

Procurement Capacity AssessmentProcurement Capacity Assessment

Economic AssessmentEconomic Assessment

Institutional ArrangementsInstitutional Arrangements

Risk AnalysisRisk Analysis

Monitoring and Evaluation System.Monitoring and Evaluation System.


AppraisalAppraisal

9. Circulate Draft PAD (or relevant sections)9. Circulate Draft PAD (or relevant sections)Prior to QER (Quality Enhancement Review)Prior to QER (Quality Enhancement Review)

10. Quality Enhancement Review10. Quality Enhancement ReviewTiming at discretion of TTL and SMTiming at discretion of TTL and SM

11. Pre-appraisal Mission11. Pre-appraisal MissionSend SMOs two weeks before departureSend SMOs two weeks before departure

12. Draft PAD12. Draft PADUpon return from missionUpon return from mission


AppraisaAppraisall

13. Draft Legal Document (by Lawyer)13. Draft Legal Document (by Lawyer)7 days after #10 (**)7 days after #10 (**)

14. Issue Decision Package14. Issue Decision Package8 days before #158 days before #15

15. Decision Meeting15. Decision Meeting16. Minutes of Decision Meeting16. Minutes of Decision Meeting

3 days after #153 days after #1517. Send updated PID to InfoShop, If necessary17. Send updated PID to InfoShop, If necessary

3 days after #153 days after #15


AppraisalAppraisal

18. Authorization to Negotiate in the Field 18. Authorization to Negotiate in the Field (by LEGxx)(by LEGxx)

3 days after #153 days after #1519. Appraisal Mission19. Appraisal Mission

10 days after #1510 days after #1520. Appraisal Aide Memoire20. Appraisal Aide Memoire

Upon completion of #19Upon completion of #19

ApprovalApproval

21. Draft Letter of Sector Policy (by borrower)21. Draft Letter of Sector Policy (by borrower)Before #23Before #23

22. Authorization to Negotiate at HQ (by LEGxx)22. Authorization to Negotiate at HQ (by LEGxx)Before #23Before #23

23. Notice of Invitation to Negotiate23. Notice of Invitation to NegotiateBefore #24Before #24

24. Negotiations (HQ/field)24. Negotiations (HQ/field)3-5 days3-5 days

ApprovalApproval

25. Minutes of Negotiations25. Minutes of NegotiationsUpon completion #24Upon completion #24

26. Status of Negotiations26. Status of Negotiations20 days before Board presentation20 days before Board presentation

27. Statutory Committee Report (by Lawyer)27. Statutory Committee Report (by Lawyer)Signed by RVP/LEG 14 days before #30Signed by RVP/LEG 14 days before #30

28. Board Package to CD and RVP28. Board Package to CD and RVP20 days before Board presentation20 days before Board presentation

ApprovalApproval

2929. . Board Documents to SECBO/PrintshopBoard Documents to SECBO/Printshop18 days before Board presentation18 days before Board presentation

30. Distribution to Board30. Distribution to Board13 days before Board presentation13 days before Board presentation

31. EM on Board Attendance and Speech, if 31. EM on Board Attendance and Speech, if applicableapplicable

4 days before Board presentation4 days before Board presentation32. Speech, Questions from EDs, Pre-Board Meeting32. Speech, Questions from EDs, Pre-Board Meeting

1 day before Board presentation1 day before Board presentation33. Board Presentation 33. Board Presentation (As scheduled) (As scheduled)

BioCF ProcessBioCF Process

PreparationPreparation Carbon asset due diligenceCarbon asset due diligence Validation processValidation process AppraisalAppraisal NegotiationNegotiation Implementation, start upImplementation, start up Supervision & periodic verificationSupervision & periodic verification Project completionProject completion


PreparationPreparation

PIN review by Fund Management UnitPIN review by Fund Management UnitInitial due diligenceInitial due diligence

Decision to proceedDecision to proceed

Preliminary risk matrixPreliminary risk matrix

Draft PCNDraft PCN

Host country endorsementHost country endorsement

Inclusion in portfolioInclusion in portfolioFund Management Committee and Fund Management Committee and

Participant Committee.Participant Committee.

Letter of IntentLetter of Intent


Carbon Asset Due DiligenceCarbon Asset Due Diligence

Project Design Document (PDD)Project Design Document (PDD)By project participantsBy project participants

Additionality, baseline and monitoring plansAdditionality, baseline and monitoring plansFund Management Unit review (QC)Fund Management Unit review (QC)

Documents for Validation preparedDocuments for Validation preparedProject participants, Project participants, Fund Management Unit, and Fund Management Unit, and BankBank team.team.

Bank undertakes project preparation activities Bank undertakes project preparation activities

BioCF processBioCF process

Validation ProcessValidation Process

CF Unit contracts Independent ValidatorCF Unit contracts Independent ValidatorDesignated Operational Entity, DOEDesignated Operational Entity, DOE

DOE initiates validationDOE initiates validationDocuments made public for Documents made public for

comments (30 days)comments (30 days)DOE issues report and opinionDOE issues report and opinionValidation report issued only if Meth are Validation report issued only if Meth are

approved.approved.


Appraisal by Bank TeamAppraisal by Bank Team

Technical project preparationTechnical project preparationSocial and Environmental SafeguardsSocial and Environmental SafeguardsFinancial ManagementFinancial ManagementProcurement Capacity AssessmentProcurement Capacity AssessmentEconomic AssessmentEconomic AssessmentInstitutional ArrangementsInstitutional ArrangementsRisk AnalysisRisk AnalysisMonitoring and Evaluation System.Monitoring and Evaluation System.Additionality Additionality Baseline MethodologyBaseline MethodologyMonitoring MethodologyMonitoring Methodology


NegotiationNegotiation

Draft and negotiation of termsDraft and negotiation of terms

Term SheetTerm Sheet

Project due diligence completedProject due diligence completed

ERPA negotiationsERPA negotiations

ERPA signatureERPA signature


Implementation, construction, start upImplementation, construction, start up

Project registrationProject registrationCDM-EBCDM-EBStart project activitiesStart project activitiesIndependent initial verificationIndependent initial verificationDOEDOEProject monitoring following MPProject monitoring following MPProject participantsProject participants


Supervision and Periodic Supervision and Periodic VerificationVerification

Bank team supervises until forest Bank team supervises until forest establishedestablished

Periodic verification/certificationPeriodic verification/certificationDOEDOE

BioCF pays verified ERsBioCF pays verified ERsERs distributed to BioCF investors ERs distributed to BioCF investors


Project CompletionProject Completion

Yet to be definedYet to be defined

GEF ProcessGEF Process IdentificationIdentification

• PCN & GEF Pipeline Entry:PCN & GEF Pipeline Entry:• PDF Grant:PDF Grant:

Preparation/ApprovalPreparation/Approval• QER:QER:• GEF STAP Expert Review & GEF Work Program GEF STAP Expert Review & GEF Work Program

Entry:Entry:• PAD Review:PAD Review:• Appraisal & Appraisal & NegotiationNegotiation : :• CEO Endorsement:CEO Endorsement:• Board Approval:Board Approval:

SupervisionSupervision• Project Supervision & PSRs:Project Supervision & PSRs:• Mid-term Review & Amendments:Mid-term Review & Amendments:

ClosingClosing• Extensions and/or Closing & ICR:Extensions and/or Closing & ICR:

EvaluationEvaluation• OED Evaluation:OED Evaluation:

GEF processGEF process


PCN Review: PCN Review: Initial GEF eligibility Review by RC/ENV Thematic Initial GEF eligibility Review by RC/ENV Thematic

Specialist (TS) Specialist (TS) PCN Review and approval - RC/ENV TS invitedPCN Review and approval - RC/ENV TS invitedGEF Pipeline Entry (can be combined with PDF Grant GEF Pipeline Entry (can be combined with PDF Grant

Request)Request) ““GEF Project Review Criteria” conformity by RC/ENV GEF Project Review Criteria” conformity by RC/ENV

TSTS Submitted to GEF Secretariat (GEFSec), other GEF Submitted to GEF Secretariat (GEFSec), other GEF

agencies for commentsagencies for comments GEF Pipeline Eligibility Review by GEFSec (“Bilateral”)GEF Pipeline Eligibility Review by GEFSec (“Bilateral”) GEF Review sheet will be provided to TTL for actionGEF Review sheet will be provided to TTL for action GEF CEO Approval for GEF Pipeline EntryGEF CEO Approval for GEF Pipeline Entry



PDF Grant:PDF Grant:Concurrent submission as Pipeline & PDF BConcurrent submission as Pipeline & PDF B Follow Pipeline submission processFollow Pipeline submission process Need GEF Country Focal Point Endorsement LetterNeed GEF Country Focal Point Endorsement Letter

PDF B submission only (Concept is already in the PDF B submission only (Concept is already in the GEF pipeline)GEF pipeline)

RC reviews, seeks advice from ENV TSRC reviews, seeks advice from ENV TS Submitted to GEF Secretariat (GEFSec), other Submitted to GEF Secretariat (GEFSec), other

agencies for comments agencies for comments Need GEF Country Focal Point Endorsement LetterNeed GEF Country Focal Point Endorsement Letter


Preparation/ApprovalPreparation/Approval

Quality Enhancement Review (QER) Quality Enhancement Review (QER) QER Review (RC/ENV TS invited)QER Review (RC/ENV TS invited)Encouraged before work program submission to GEF councilEncouraged before work program submission to GEF councilGEF STAP Expert Review GEF STAP Expert Review STAP Expert identified and contracted from STAP Roster STAP Expert identified and contracted from STAP Roster

DatabaseDatabaseENV TS suggested; orENV TS suggested; orOther TTLs suggested based on past experience.Other TTLs suggested based on past experience.

If suitable expert not in STAP Roster, propose an expert to If suitable expert not in STAP Roster, propose an expert to STAP Chair for inclusion in STAP Roster and get approvalSTAP Chair for inclusion in STAP Roster and get approval

Draft GEF Project Brief submitted to STAP Expert for commentDraft GEF Project Brief submitted to STAP Expert for commentSTAP Expert Comments and TTL responses as an Annex to STAP Expert Comments and TTL responses as an Annex to

GEF BriefGEF BriefResponse to STAP Roster expert’s comments should be sent to Response to STAP Roster expert’s comments should be sent to

the reviewer the reviewer


GEF Work Program Entry (or GEF Council GEF Work Program Entry (or GEF Council Approval)Approval)

Bank Internal Review:Bank Internal Review: ““GEF Project Review Criteria” conformity by RC/ENV TSGEF Project Review Criteria” conformity by RC/ENV TS GEF Work Program submissions should be at least pre-GEF Work Program submissions should be at least pre-

appraisedappraisedGEF Secretariat (GEFSec) Review:GEF Secretariat (GEFSec) Review: GEF Work Program package1 is submitted to GEFSec, other GEF Work Program package1 is submitted to GEFSec, other

GEF agencies for commentsGEF agencies for comments GEF Work Program Eligibility Review by GEFSec (“Bilateral”)GEF Work Program Eligibility Review by GEFSec (“Bilateral”) GEF CEO Recommendation for inclusion in the GEF Work GEF CEO Recommendation for inclusion in the GEF Work

Program Program GEF Council Review:GEF Council Review: GEF Council Review/Comments and approval of the GEF GEF Council Review/Comments and approval of the GEF

Work Program Work Program


PAD Review, Appraisal & Negotiation PAD Review, Appraisal & Negotiation

PAD Review and Appraisal:PAD Review and Appraisal: PAD Review and Appraisal is conducted as regional PAD Review and Appraisal is conducted as regional

practicespractices GEF RC and ENV TS are invited to PAD Review GEF RC and ENV TS are invited to PAD Review Appraisal SMO is copied to GEF RC Appraisal SMO is copied to GEF RC NegotiationNegotiation Negotiation package is sent to RC for clearanceNegotiation package is sent to RC for clearance RC reviews package for consistency with Council and RC reviews package for consistency with Council and

GEFSec commentsGEFSec comments RC's clearance would state: RC's clearance would state: ACTTF issues a GEF grant number (TF #) after receiving ACTTF issues a GEF grant number (TF #) after receiving

RC's clearanceRC's clearance Any major changes proposed during negotiations with Any major changes proposed during negotiations with

respect to the project's GEF aspects also require the RC's respect to the project's GEF aspects also require the RC's clearance clearance


CEO Endorsement CEO Endorsement

TTL submits GEF CEO endorsement package to RC TTL submits GEF CEO endorsement package to RC for clearancefor clearance

Cover Memorandum for Bank’s GEF Executive Cover Memorandum for Bank’s GEF Executive Coordinator’s signature;Coordinator’s signature;

A GEF Project Document (generated from final A GEF Project Document (generated from final negotiated PAD through the operations portal)negotiated PAD through the operations portal)

Signed minutes of negotiations; andSigned minutes of negotiations; and Confirmation of co-financing. Confirmation of co-financing. GEF RC sends final package electronically through GEF RC sends final package electronically through

Bank - GEF Tracking database to GEF Anchor, who Bank - GEF Tracking database to GEF Anchor, who forwards it to GEFSec forwards it to GEFSec


Board Approval Board Approval

A GEF MOP is prepared (for both freestanding and A GEF MOP is prepared (for both freestanding and blended operations. Different language is blended operations. Different language is applicable for freestanding and blended applicable for freestanding and blended operations.) operations.)

No Statutory Committee clearance is required for No Statutory Committee clearance is required for GEF grants GEF grants

GEF CEO Endorsement must be received prior to GEF CEO Endorsement must be received prior to Board circulation Board circulation


Supervision Supervision

Project Supervision & ISRs:Project Supervision & ISRs: TTLs follow regional practices for project supervision and ISRsTTLs follow regional practices for project supervision and ISRs GEF Coordination Team reviews PSRs as part of annual GEF GEF Coordination Team reviews PSRs as part of annual GEF

Project Implementation Review (GEF PIR) for GEF councilProject Implementation Review (GEF PIR) for GEF council Feedback on overall ISR quality especially the assessment of Feedback on overall ISR quality especially the assessment of

outcomes and use of M&E in supervision is provided to TTLs outcomes and use of M&E in supervision is provided to TTLs through RCsthrough RCs

GEF team prepares annual review of GEF portfolio quality GEF team prepares annual review of GEF portfolio quality Mid-term Review & Amendments:Mid-term Review & Amendments: TTLs follow regional practices for MTRs and AmendmentsTTLs follow regional practices for MTRs and Amendments TTLs should also follow additional GEF Guidance for MTRs to TTLs should also follow additional GEF Guidance for MTRs to

address GEF specific criteriaaddress GEF specific criteria GEF RC clears any amendments to the GEF projectGEF RC clears any amendments to the GEF project Any major amendments/restructuring of the project may require Any major amendments/restructuring of the project may require

GEF CEO endorsement subject to council no objection (4 weeks GEF CEO endorsement subject to council no objection (4 weeks posting) posting)


Closing and EvaluationClosing and Evaluation

Extensions, Closing and ICRsExtensions, Closing and ICRs Any extensions of GEF Grant Agreement must receive RC’s Any extensions of GEF Grant Agreement must receive RC’s

clearanceclearance For second and subsequent extensions, RCs seek GEF For second and subsequent extensions, RCs seek GEF

Anchor’s approval before granting their clearances Anchor’s approval before granting their clearances TTLs follow regional practices for project closingTTLs follow regional practices for project closing TTLs must coordinate with ACTTF for legally closing the GEF TTLs must coordinate with ACTTF for legally closing the GEF

project TF #project TF # For blended projects, only one ICR is required unless the For blended projects, only one ICR is required unless the

GEF grant and loan close in different FYsGEF grant and loan close in different FYs ICRs should confirm “GEF Project Review Criteria” for ICRICRs should confirm “GEF Project Review Criteria” for ICR

EvaluationEvaluation Standard OED procedures apply to GEF projectsStandard OED procedures apply to GEF projects

Concluding remarksConcluding remarks

Need to integrate mitigation with Need to integrate mitigation with adaptation and development.adaptation and development.

Integrated IBRD-BioCF/CF-GEF Integrated IBRD-BioCF/CF-GEF projects are coming.projects are coming.

Integration implies more Integration implies more documentation, and more work for documentation, and more work for task teams.task teams.

Task teams should seek GEF and CF Task teams should seek GEF and CF coordinators for support.coordinators for support.

ThanksThanks

and merry Christmas!and merry Christmas!