with Caribbean Development Bank (CDB)

for Belize

06 December 2019 | Strategic Frameworks

Readiness and Preparatory Support Page 1 of 21

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Readiness and Preparatory Support Proposal Template

Programme title: Readiness Support for Strengthening Belize Private Sector Access to Climate Finance

Country: Belize National designated authority:

Ministry of Economic Development & Petroleum

Implementing Institution: Caribbean Development Bank (CDB)

Date of first submission: 13 August 2019 Date of current submission / version number

26 November 2019 V.5

How to complete this document? - Please visit the Empowering Countries page of the GCF website to download the

Readiness Guidebook and learn how to access funding under the GCF Readiness and Preparatory Support Programme.

- This document should be completed by National Designated Authorities (NDA) or focal points with support from their Delivery Partners where relevant. Once completed, this document should be submitted to the GCF by the NDA or focal point to countries@gcfund.org.

- Please be concise. If you need to include any additional information, please attach it to the proposal.

- If the Delivery Partner implementing the Readiness support is not a GCF Accredited Entity for project Funding Proposals, please complete the Financial Management Capacity Assessment (FMCA) questionnaire and submit it prior to or with this Readiness proposal. The FMCA is available for download at the Library page of the GCF website.

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.

- You can also complete as much of this document as you can and then send it to countries@gcfund.org, copying both the Readiness Delivery Partner and the relevant GCF Country Dialogue Specialist and Regional Advisor. Please refer to the Country Profiles page of the GCF website to identify the relevant GCF Country Dialogue Specialist and Regional Advisor.

- We will get back to you within five (5) working days to acknowledge receipt of your submission and discuss the way forward.

Please submit the completed form to: countries@gcfund.org

Please use the following naming convention for the file name:

“GCF Readiness Proposal-[Country]-[yymmdd]”

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, particularly to the situation of vulnerable populations, including women and men. Please be specific about proposed actions to address these issues. Consult Annex IV of the Readiness Guidebook for more information.

1. SUMMARY

Country submitting the proposal

Country name: Belize Name of institution representing NDA or Focal Point: Ministry of Economic Development & Petroleum

Name of contact person: Ms. Sharman Yvonne Hyde

Contact person’s position: Chief Executive Officer

Telephone number: +501 822 2626 Email: Yvonne.Hyde@med.gov.bz Full office address: Ground Floor, Right Wing, Sir Edney Cain Building Belmopan City, Cayo District, Belize, Central America Belmopan City, Belize

Additional email addresses that need to be copied on correspondences: Mr. Leroy Martinez Economist Policy and Planning Unit Ministry of Economic Development & Petroleum Ground Floor. Sir Edney Cain Building Belmopan City, Belize C.A Phone (501) 822-2526

Date of initial submission 13 August 2019

Last date of resubmission 26 November 2019 Version number V.05

Which institution will implement the Readiness and Preparatory Support project?

☐ National designated authority ☒ Accredited entity ☐ Delivery partner Please provide contact information if the implementing partner is not the NDA/focal point Name of institution: Caribbean Development Bank (CDB)

Name of official: Mr. Daniel Best Position: Director of Projects Telephone number: 1 246-4311710/1711 Email: bestd@caribank.org Full office address: P.O Box 408 Wildey, St. Michael, Barbados

Additional email addresses that need to be copied on correspondences: dixonc@caribank.org and gibbsd@caribank.org

Title of the Readiness support proposal

Readiness Support for Strengthening Belize Private Sector Access to Climate Finance

Type of Readiness support sought

Please select the relevant GCF Readiness activity area below (click on the box): ☐ I. Country capacity for engagement with GCF ☐ II. Country programming process ☐ III. Direct access to climate finance ☒ IV. Climate finance accessed ☐ V. Formulation of national adaptation planning and/or other adaptation

planning processes

Brief summary of the request

Experts suggest that developing countries will require significant investment funds to protect themselves from the worsening physical and socio-economic impacts of climate change. Belize, like many other low-lying coastal nations is vulnerable to the effects of climate change 1 . The country will therefore need access to highly concessionary resources to implement its climate change agenda, including its NDCs. In this regard, the Government of Belize has made it a priority to maximise access to climate finance from the Green Climate Fund (GCF) to support its Climate Change Action Plan and its National Climate Resilience Investment Plan. Through the GCF Readiness Programme, the Government of Belize is building capacity to access GCF resources through a better understanding of the GCF processes and the design of bankable funding proposals. The programme will continue the initial engagement with the private sector, which was started under the first readiness project to sensitize stakeholders and identify a GCF project pipeline. However, recognising that significant resources will be needed for climate investments, the Government has taken the decision to strengthen engagement with the private sector through this new GCF Readiness Programme. Currently, the private sector has limited knowledge about the GCF and its engagement in climate actions within Belize is minimal. Given the climate change challenges facing Belize, this readiness intervention is designed to build awareness and to strengthen the capacity of the private sector to engage with the GCF. The readiness project will be managed by the Ministry of Economic Development and Petroleum with the support of the Caribbean Development Bank as the delivery partner who will implement the project. Assistance will be provide by the Belize Chamber of Commerce Industry (BCCI) who will help government manage the project. In particular, the BCCI will work with the NDA to develop a communication strategy, as part of the project activities. With the support of the NDA, the Chamber will also identify participants from its membership and take action to dissemination information to ensure maximum participation in the project. In addition, a technical readiness consultant will be hired to support activities 4.5.3, 4.6.1, 4.3.1, and 4.3.2 working with the hired consultants, NDA and the DP. The readiness project will be aligned to the government’s strategic objectives and will build on previous readiness interventions that supported government and its country programme with the GCF. The main focus of this readiness project will be:

1. Strengthening private sector engagement with the GCF through knowledge building;

2. Crowding -in private sector investment for climate actions; and 3. Building the capacity within the private sector to develop GCF concept

notes/funding proposals. This readiness proposal is aligned with other regional initiatives, including the private sector readiness programme led by Jamaica and efforts undertaken by Grenada to scale up private sector energy efficiency activity through its G-LEEP Private Sector Facility, which is been developed by CDB for submission to the GCF. In addition, the documents produced under this readiness programme will be the property of the NDA. The NDA will have ownership of all deliverable and materials produced. Currently, the NDA is in the process of developing an NDA website that will allow for information to be uploaded to the NDA and BCCI website. It will also allow for access by other stakeholders as needed.

Total requested amount and currency USD 297,537 Anticipated duration 12 months

1 Belize and Climate Change: The Cost of Inaction, UNDP (2009)

Has the country received or is expecting to receive other Readiness and Preparatory Support funding allocations (including adaptation planning) from GCF or other donors?

☒ Yes ☐ No Belize has had three previous readiness interventions, with one being a regional intervention. The first readiness intervention focused on the strengthening of the National Designated Authority (NDA) and the development of a country programme. Project activities were implemented over two outcomes namely - NDA capacity to undertake fund-related responsibilities and engage national stakeholders strengthened; and a strategic framework for engagement with the GCF developed. The second readiness intervention complemented the first by continuing to strengthen the NDA’s coordination mechanism to allow it to effectively manage the non-objection procedure and associated platforms. In addition, the government received assistance to help the Development Finance Corporation (DFC) and Belize Social Investment Fund to seek GCF accreditation. In 2019, Belize received readiness support to enhance the regional approach aimed at articulating clear actions to combat climate change in the Caribbean. This readiness intervention covered the countries of Dominica, Haiti, Jamaica, Saint Lucia, and Saint Vincent and the Grenadines. In addition, Belize is providing financial support for a readiness project with the CARICOM Development Fund, which will support the development of a credit risk abatement facility in the Caribbean sub-region. As mentioned, Belize has also benefitted from the private sector readiness project led by Jamaica’s NDA. A country-level analysis of Belize was done and featured in a scoping study report. However, the regional scoping report was not comprehensive possibly due to limited engagement with the private sector. This may have been as a result of the proposed date and time frame of the mission trip by consultants. The scoping report did however highlight some key points that this readiness support will be able to complement. One of the major needs conveyed was the need for capacity building within the private sector as it pertains to understanding the GCF and also project identification and development as requested by the Belize Chamber of Commerce and Industry who was invited as umbrella organization for the private sector under readiness one consultation. Additional capacity is also needed for strategic adaptation planning for medium and small enterprises. The report also indicated that the private sector in Belize has an understanding of climate change but holds no official position. Moreover, there's the additional difficulty in

accessing credit to make investments in climate change and also a lack of technical advice as it pertains to adaptation and mitigation actions. The report indicated that the Development Finance Corporation is the only provider of reasonable loan rates for climate change related investments such as renewal energy, when compared to the commercial banks in Belize. The project ideas coming out of this readiness support, will benefit from the DFC's funding. The DFC is currently in the process of attaining accreditation to the GCF and will be able to provide funding with guarantees from the Caribbean Development Fund once completed and implemented. Kindly note that the study refers that Guarantee is needed. Importantly, this Readiness support will take a look at the gaps, barriers and lack of focus on female led entrepreneurship, which was not done previously.

2. BACKGROUND Belize is highly exposed and vulnerable to climate change and natural hazards. Among small states, Belize ranks 3rd at risk for natural disasters, and 5th at risk from climate change2. It already faces hurricanes, flooding, sea-level rise, coastal erosion, coral bleaching, and droughts, with impacts likely to intensify based on climate change projections. Given the threat from climate change, Belize has to continue building resilience including meeting its NDCs mitigation targets. Such actions will require significant funding and support from partners, including from the local private sector. Belize’s annual average loss from wind-related events and floods averages just under US$123 million, or 7 percent of GDP (IMF, 2018). Of that US$123 million, roughly US$88 million is the estimated replacement values associated with direct, physical damage. Most of the northern half and much of the southern third of the country, plus the entire coastal area and all the islands, are flat and low-lying. Large sections of the coastline have an elevation of less than one metre to a distance of several kilometers inland3. The primary impact of climate change is expected to be large-scale inundation from sea-level rise and from more severe storm surges. Belize’s major infrastructure such as public buildings, health, commercial, and transportation facilities are located on or near the coast which makes them extremely susceptible to sea-level rise. Belize’s national climate change strategies, policies and action plans highlight the county’s commitment to making its territory and people resilient to climate variability and change. The country also remains keen on contributing to global efforts to keep mean temperature increase below two Degrees Celsius. National Determined Contributions (NDCs) highlights that Belize aims to source 85% of its energy needs from renewable energy by 2030. This is mainly to be achieved by implementing hydropower, solar, wind, and biomass energy resources. In addition, the country intends to reduce the use of fossil fuels by 20% through improving efficiency in the transport sector. The NDC also emphasizes the country’s intention to improve its carbon capture and storage capacities via improved and sustainable forest management, reduction of fuel wood consumption by 27%-66% and protection and restoration of mangroves forests. Targets set out in the NDC are complemented by the National Climate Change Policy, Strategy and Action Plan (NCCPSAP), the National Adaptation strategy (Agriculture sector) and the Low Carbon Development Roadmap (LCDR). These policy instruments are supported by the Growth and Sustainable Development Strategy (GSDS) which is Belize’s medium term development plan. The GSDS recognizes the importance of achieving sustainable development in a changing climate and is aligned with the national developmental goals of the NDCs, NCCPSAP and LCDS.

2 Belize Climate Change Policy Assessment, IMF Country Report No. 18/329 (2018). 3 First National Communication to the Conference of the Parties of the United Nations Framework Convention on Climate Change (2002).

The Belize private sector has been playing an important role in Belize development. Between 2000 and 2011, Belize’s private sector provided over 92% of national employment, and during 2004 to 2011 it accounted on average for more than two-thirds of credit and four-fifths of consumption4. According to the IDB report (2014), the private sector is shown to be dominated by micro, small and medium-sized enterprises (MSMEs), including in the tourism sector, which accounts for the bulk of employment and value added in the economy. The importance of MSMEs is reinforced by the fact that the majority membership of the Belize Chamber of Commerce and Industry (BCCI), which represents over 350 member from across all sectors, is made up of MSMEs. Unlocking the potential of the local private sector to contribute to green growth in Belize is therefore important. However, there are challenges as the appetite of the Belizean private sector to access funding for investment in climate actions is low because of a lack of understanding and capacity limitations. As report in the IMF (2018) report, hthe private sector has been challenged by the technical demands and the length of time it took to access climate funds. Gender barriers in the MSME sector are also evident. According to the CDB financed Country Gender Assessment for Belize (2016), anecdotal evidence points to a male domination of MSMEs in the country. Male businesses tended to be larger and better capitalized than women’s businesses. The main exception to this pattern appears to be established family-owned businesses that women either inherit or run in collaboration with other family members. Female-led MSMEs are often centred on production or service areas, representing an extension of women’s traditional gender roles in the household with lower growth prospects. Gender discrimination is noted against female-led MSMEs in non-traditional areas such as construction or distribution, where women’s competence in the field is questioned, and bidding processes against male-led firms are met with greater scrutiny. Women and men also experience differential access to credit and loans. Banks do not have gender-specific loan criteria, neither do they collect sex-disaggregated data. Out-dated protocols such as requiring the husband to guarantee the wife’s loan are sometimes imposed. While micro-credits are easily accessible, accessing larger loans seems to be more difficult for women who often operate in the informal sector and lack collateral. The Project will therefore encourage the participation of female-led/ owned businesses using targeted communication tools. The Project will also collect data on the particular needs of female-led/ owned businesses through a barrier assessment. This assessment will provide recommendations for actions for the Belizean government. The aim therefore of this Fourth Readiness Proposal for Belize is to build capacity within the private sector, mainly small and medium enterprises, to access GCF funds. This is a priority for the Government of Belize that seeks greater private sector interventions. Currently, the involvement of the private sector, including MSMEs, in GCF climate finance related actions is minimal. The project will seek to address this by carrying out activities to - (1) engage the private sector through a GCF sensitization forum; (2) conduct an assessment of the barriers to private sector investments in climate actions; (3) identify private sector project ideas that can be developed into GCF concept notes; and (4) have a communication strategy that will be used to sensitize the private sector regarding the project and its purpose.

4 Private Sector Assessment of Belize, Inter-American Development Bank (2014).

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3. LOGICAL FRAMEWORK AND IMPLEMENTATION SCHEDULE

Outcomes Baseline5 Targets

Activities6 (brief description and

deliverables) Anticipated

duration: 6 months

Monthly implementation plan of activities7 1 2 3 4 5 6 7 8 9 10 11 12

Outcome 4: Climate finance strategies and project pipeline strengthened

Sub-Outcome 4.5 Private Sector Engagement

1

2

Activity 4.5.1: Sensitisation communication strategy developed targeting the private sector (SMEs), with attention paid to female-led and women owned businesses. This will make the private sector more aware and engage with the GCF. Deliverable 4.5.1: Completion of a communication strategy for the project; 6 month after the event

X

5 For baselines rated at 1 or 2, please shortly elaborate on current baselines on which the proposed activities can be built on, processes that are in place that the current Readiness proposal can strengthen, or any gaps that the proposed activities would fill in. If more space is needed, please elaborate this in Section 2. 6 Please include tangible and specific deliverables for each activity proposed, and the timeframe (month number) in which it will be delivered to GCF. Please note that during implementation all deliverables should be included within the implementation reports for GCF consideration. 7 If the duration of the proposal is longer than 24 months, please change the monthly columns to indicate 2 or 3 months each (e.g. change month “1” to month “1-2’ or “1-3”).

Activity 4.5.2: Organise and convene a half day inception workshop to inform stakeholders about the project objectives. The inception workshop will be directed towards the members of the Belize Chamber of Commerce and Industry, Government and other selected stakeholders. Deliverable 4.5.2: Successful stakeholder forum convened with Inception Workshop report; 2 months after first disbursement. Activity 4.5.3:8 Organise and conduct a one day capacity building and discussion forum with public and private stakeholders with the objective of sensitizing persons on the GCF processes and examining the private sector’s potential to unlock GCF resources, thereby contributing to climate actions in Belize. Specifically, the forum will: a. Address the role,

relevance, and significance of private sector entities in investing in climate mitigation and adaptation initiatives.

X

8 The regional scoping study report produced under the regional private sector readiness project will be included as part of the consultation.

b. Discuss the relevance of having the private sector involved in climate related activities.

c. Raise awareness within the private sector on GCF project design and development, and its procedures, including modalities for accessing the GCF Private Sector Facility.

d. Agree on a plan of action to keep the private sector engage with GCF.

e. Target participation of female-led and/or women-owned enterprises via targeted communication products.

Deliverable 4.5.3: Implementation of a public/private sector forum and completion of the forum report; a plan of action of action to keep the private sector engage: 4 month after first disbursement.

X

Sub-Outcome 4.6: Crowding-in private sector investments

1 2 Activity 4.6.1: Conduct an assessment of barriers to private sector investment in low-carbon and climate resilient development with recommendations/roadmap to address the barriers; a special focus on gender-specific barriers and providing disaggregated data

by sex of firm owner or firm manager. Selected members of the BCCI will be identified to participate in the assessment. Deliverable 4.6.1: Assessment report on barriers to private sector investment with recommendations for a roadmap showing actions to be taken by government; special focus on female-led and women-owned; 6 months after disbursement.

X

Sub-Outcome 4.3: Project Concept Notes Development

1

2

Activity 4.3.1: Identify project proposals for the private sector (SMEs) that can be developed; these projects will be aligned to the Government’s country programme; GCF strategic areas; the Nationally Determined Contributions (NDCs); and the Belize Growth Sustainable Development Strategy (GSDS). Deliverable 4.3.1: Exercise conducted around GCF investment criteria and results areas and call for project proposals developed and launched through the Belize Chamber of Commerce to all its

X

members; 8 months after first disbursement. Activity 4.3.2: Adopting an incubator type arrangement, develop GCF concept notes for two (2) of the best project proposals identified under Activity 4.3.1 consultants will work directly with the chosen private sector entities to have their proposals developed into bankable concept notes for submission to the GCF Private Sector Facility. Access to the GCF project preparation facility (PPF) will be considered. Deliverable 4.3.2: Completed Concept Notes; 12 months after disbursement.

X

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4. ADDITIONAL INFORMATION (ONLY FOR ADAPTATION PLANNING SUPPORT)

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5. BUDGET, PROCUREMENT, IMPLEMENTATION, AND DISBURSEMENT 5.1 Budget plan Please complete the Budget Plan in Excel using the template available in the Library page of the GCF website. 5.2 Procurement plan Please complete the Procurement Plan in Excel using the template available in the Library page of the GCF website. For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in section 2, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage. 5.3 Disbursement schedule Please specify the proposed schedule for requesting disbursements from the GCF. For periodicity, specify whether it’s quarterly, bi-annually or annually only. Please choose one option among the two below and delete the one that does not apply to you. Please fill in information under brackets: ☐ Readiness Proposal that falls within a Framework Agreement with the GCF

Disbursements will be made in accordance to [Clause xx] “Disbursement of Grants” and [Clause xx] “Use of Grant Proceeds by the Delivery Partner” of the Framework Readiness and Preparatory Support Grant Agreement entered into between GCF and [Delivery partner name] on Click or tap to enter a dateClick or tap to enter a date. The Delivery Partner is entitled to submit [number] request(s) for disbursement each year.

☒ Readiness Proposal that requires a bilateral Grant Agreement to be signed with the GCF (please add more disbursement as needed) • The first disbursement amounting USD Two Hundred and Thirty Eight Thousand

and Eighty Five Dollars ($238,085) will be transferred upon approval of the readiness request and effectiveness of the Grant Agreement; and

• The final disbursement amounting USD Fifty Nine Thousand and Four Hundred

and Fifty Two Dollars ($59,452) will be made upon submission of a completion report and financial report, in form and substance acceptable to the Fund, including an audited expenditure statement.

Please include an indicative disbursement table showing the expected amounts to be requested and keep to multiples of USD 5,000.

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1. IMPLEMENTATION ARRANGEMENTS AND OTHER INFORMATION 6.1 Implementation map Please describe how funds will be managed by the NDA and/or the Readiness Delivery Partner.

The project will be led by the Government of Belize GCF NDA (Ministry of Economic Development & Petroleum) with strategic support from CDB, as the delivery partner. The Bank will implement the project, facilitating the timely delivery of the project outcomes. As an accredited entity to the GCF to deliver projects of the size 10 to 50 million, the Bank has in-place the institutional arrangements, and fiduciary and environmental standards to satisfy the GCF requirements. This is CDB’s first readiness engagement with the NDA, but the Bank has worked with the Ministry of Economic Development and Petroleum in other bank operations and have been very active in Belize working on major infrastructure projects. As delivery partner, this is also the Bank’s first submission to the GCF for the readiness programme; however, the Bank is working with GCF on other projects, including a concept note for The Bahamas and a full funding proposal for Grenada. The Project implementation will be led by the Coordinator, Environmental Sustainability Unit (ESU)9 with wider Bank support. Also, the project will benefit from a small project management unit led by a project coordinator and readiness consultant who will provide technical support to most of the project activities. Implementation will be guided by a Grant Agreement between CDB, as the delivery partner, and the GCF. The start date for project implementation will be the date of the effectiveness of the relevant grant agreement with the GCF or an agent of the GCF such as UNOPS. To avoid any possible conflicts of interest deriving from the Delivery Partner’s role as an Accredited Entity, the prioritization of investments and projects in the context of this readiness grant, will be made through a broad consultation process with relevant stakeholders, including other potential implementing entities for Belize. The final validation of these priorities will be carried out through the countries’ own relevant coordination mechanism and institutional arrangements, with the participation of other government agencies, as well as representatives from civil society and private sector as the NDA deems relevant, to ensure chosen priorities are fully aligned with national plans and strategies and adequately includes inputs from consulted stakeholders. The Belize Chamber of Commerce and Industry (BCCI) will have a supporting role in working with the NDA and consultants to coordinate the responses from their membership, especially for activities 4.6.1, 4.3.1 and 4.3.2. The Chamber, with the support of the NDA, will help to identify and successfully select the two winning proposals for development of concept notes to be submitted to the GCF as potential viable projects. The BCCI will ensure that these winning proposals receive the necessary support and technical services to ensure their development from start to finish. The day-to-day management of this project will be coordinated by the NDA with technical support from a readiness consultant. The readiness consultant will work with the project-recruited consultants and the Delivery Partner to implement the activities in the log frame. Procurement will be undertaken in accordance with CDB’s procedures for Use of Funds (UOF). Contractual relationship will be between CDB and the consultant(s). The NDA will prepare the draft terms of references (TORs) for consulting services. The draft TORs will be submitted to the CDB for finalisation. The NDA will endorse all contracts and deliverables associated with the project prior to payments by the Bank. As the main beneficiary of the project, the BCCI will work closely with its members to sensitize and inform them about the project. In addition, the Belize Government NDA will work with key stakeholders to sensitize them and to receive feedback on the project.

9 The Environmental Sustainability Unit (ESU) is part of CDB’s Project Department with responsibility for climate change matters. The ESU will help to drive the implementation of the readiness project within the Bank, along with other units.

See Below a flow chart of the proposed implementation arrangements.

Green Climate Fund (GCF)

Secretariat

CDB (Delivery Partner)

Ministry of Economic Development & Petroleum

(NDA)

Key Stakeholders in Belize including:

- Line Ministries - Private sector (SMEs), civil society

and other non-state actors - Other GCF Accredited Entities: -

PACT

Belize Chamber of Commerce and

Industry (BCCI) – The BCCI will support implementation

working directly with the NDA

Flow of Funds Reporting

Readiness Consultant to

support delivery of project activities

6.2 Risks, monitoring and evaluation (M&E), and other relevant information

The following risk and mitigation actions are outlined below. The risk will be managed by the implementing entity.

Risk Type Impact Low/Medium/

High

Risk probability /likelihood

Description Mitigation Measures

Scheduling and Time Constraints

Medium Medium Delay in the start-up of project activities

Timely submission of disbursement request to be processed by the GCF for the early receipt of funds. GCF-CDB Grant Agreement to be in place.

Implementation Risk

Medium Medium Belize private sector entities are unresponsive to the request to participate in the project.

The Belize Chamber of Commerce will work closely with its members to sensitize and inform them concerning the project. In addition, the Belize Government (the NDA) will work with the Chamber and sensitive non-member private sector SMEs, about the project Communication strategy.

Human Resource Risk

Medium Medium Timely identification of suitable consultant/consulting firm

Competitive bidding will be used to source the consultants. Submissions from consultancy firms must contain the right experts as highlighted in the Terms of Reference.

Environmental Risk

High High Belize can experiences climatic natural events that includes – hurricanes, tropical storms, flooding due to high rainfall, and drought. These events can all have the potential to disrupt and delay implementation of the project.

To mitigate the potential impacts of climatic natural disasters, all effort will be taken to ensure that activities are planned with contingency measures in place, especially during the hurricane period.

Financing Risk Low Low Funding not received in timely manner to implement this readiness.

Once funding for this readiness is approved by the GCF, the bilateral grant agreement will be prepared and signed in a timely manner between the CDB and GCF; this agreement will govern the request for disbursement of funding for this readiness. CDB will make request of disbursement in accordance with the grant agreement in a timely manner.

The following considerations are important when completing the budget:

1. Before preparing the Readiness and PPF budget, please read the full guidance on our website

2. You can select the appropriate budget categories from the dropdown list in the budget plan:

3. To insert additional rows, right click on the row number below where you wish to insert the new row and choose INSERT.

4. Additional budget categories may be added by manually typing them on the Budget Category sheet. :

Project Management Cost: Project management costs (PMC) are the direct administrative costs incurred to execute a project. They should cover only incremental costs incurred due to the GCF contribution. In most cases, these costs are directly related to the support of a dedicated project management unit (PMU) which managesthe day to day execution related activities of the project.

General Principles for PMC costs: 1. The percentage of PMC financed by GCF should not be more than the percentage share of the overall budget financed by GCF 2. PMC budget thresholds: Up to 7.5 per cent of total activity budget. > PMC exceeding 7.5 per cent for the readiness (including NAPs) proposals, and PPF proposals, up to $ 3 million will require detailed documentation and justification supporting the entire PMC budget. > The PMC should be shown as a separate component in the project budget. A detailed breakdown of PMC should be provided by budget category. > Indicative list of eligible project management costs:

> Project staffing and consultants: Project manager, Project Assistant, Procurement personnel, Finance personnel & Support/admin. Personnel> Other direct costs: Office equipment, Mission related travel cost of the PMU, Project management systems and information technology, Office supplies, Audit cost

Contingency :1. Select the appropriate % of Contingency Budget from the dropdown list :

2. Contingency budget for unforeseen costs arising during the project implementation should not be included in the outcome budget separately.3. Contingency budget must be used for any unforeseen programme (output level) cost that is unrelated to implementation/service fee.4. Any use of contingency must be reported to and agreed by the GCF Secretariat in writing in advance provided with justifications that are acceptable to the GCF5. If you get to the end of the project and you haven’t spent Contingency, you can’t increase the scope of the project or buy some more equipment to use it up.

6. The Budget Notes sheet should be used to record explanations, further details or cost breakdowns for individual lines

(https://www.greenclimate.fund/how-we-work/empowering-countries).

If you are unsure about how to complete the budget template, please send your query to: countries@gcfund.org

Readiness Grant Budget Preparation Guidelines

5.1 Budget PlanPlease add rows for Outcomes, Outputs and Cost Categories as required. Additional budget categories may be added by manually typing them on the Budget Category sheet.

Consultant - Individual- local: Rapporteur for Activity 4.5.2 W/Day 1 400 400 400

Consultant - Individual - local - Facilitator for Activity 4.5.2 W/Day 4 400 1,600 1,600

Consultant - Individual - Local - rapporteur for activity 4.5.3 W/Day 1 400 400 400

Consultant - Individual - Local - Readiness consultant for activities 4.5.3, 4.6.1, 4.3.1, and 4.3.2.

Months 12 4,500 54,000 43,200 10,800

Professional Services – Companies/Firm - Communication Strategy - Activity 4.5.1

Lumpsum 10,000 10,000

IT Equipment - Laptop Computers 2 2 1,500 3,000 1,500 1,500

Inception Workshop (Project Launch): Rental of Venue; Catering Services; Stationary/Printing; Equipment Rentals - Activity 4.5.2

1 1 5,400 5,400 5,400

Consultant - Firm - International: responsible for Activities 4.5.3, 4.6.1, and 4.3.1 W/Day 167 600 100,200 85,116 15,084

Travel - International: For Activities 4.5.3, 4.6.1, and 4.3.1 : Travel by consultants with the firm

w/days 20 559 11,180 11,180

Discussion Forum Workshop: Rental of Venue; Catering Services; Stationary/Printing; Equipment Rentals - Activities 4.5.3, 4.6.1, and 4.3.1

1 1 10,800 10,800 10,800

Consultant - Firm - International: W/Day 167 600

-

Consultant - Firm - International: Activity 4.3.1 W/Day 167 600

Consultants - Individual - International: responsible for the development of concept notes - Activity 4.3.2

W/Day 82 600 49,200 30,000 19,200

Consultant Travel - Activity 4.3.2 W/Day 20 559 11,180 11,180

- 257,360 210,776 46,584 - - - -

Audit Fee Lumpsum 1 4,000 4,000 238,085 59,452 -

do not change the formula do not change the formula - 4,000 19,302- 1.55% 7.50%

Total (per budget category)

-

Project Management Cost (PMC) 1.6% requestedContingency requested

- - - - - -

00

274,228

Delivery Partner Fee (DP) - Up to 8.5% of the Sub-Total 23,309

297,537$

4,000

Consultant - Individual - InternationalConsultant - Individual - LocalProfessional Services – Companies/FirmIT EquipmentOffice Supplies

Total Budget(per sub-outcome)

Sub-Total (Total Outcome Budget + Contingency + PMC)

12,868

257,360

5%

Total Outcome Budget

6mTotal Budget(per budget category)

60,380

Total Budget(per outcome)

257,360

Disbursement Plan Maximum PMC that can be

requested:

Total Outcome Budget

Total Outcome Budget + PMC

Actual amount and % of PMC requested:

0

Breakdown (per budget category)

Workshop/Training 00

Travel - InternationalTravel – Local

Audit FeeAudio Visual & Printing

Project Management Cost (PMC)Up to 7.5% of Total Activity Budget

Total Project Budget (Total Activity Budget + Contingency + PMC + DP)

FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY

FOR GREEN CLIMATE FUND SECRETARIAT'S USE ONLY

4.3 Project Concept Notes Developments

-

Budget Categorieschoose from the drop-down list Unit

4.5 Private Sector Engagement

4.6 Crowding-in Private Sector Investment

Outcomes

Detailed Budget (in US$)

Unit Cost# of Unit 12m 18m

196,980

Disbursement Plan

1. Private Sector Mobilization

Budget Note Detailed Description

IT Equipment IT Equipment (2 laptop computers) @ a lumpsum of $1,000 for NDA support during project implementation.

Consultant - Individual /Local Local consultant for rapporteur services half day @$200 for activity 4.5.2

Consultant - Individual /Local Local consultant for facilitator services for half day @$200 for activity 4.5.2

Consultant - Individual /Local Local consultant for rapporteur services for one w/day @$400 for activity 4.5.3

Consultant - Individual /Local Local readiness consultant will provide support to the activities 4.5.3, 4.6.1, 4.3.1, and 4.3.2 under implementation for 12 months @$4,500.

Services – Companies/Firm Companies/Firm (communication services) lumpsum payment of USD10,0000 for activity 4.5.1

Consultant - Firm - International International consultant (institutional services) for 167 w/days @ $600 for activities 4.5.3, 4.6.1, and 4.3.1.

Consultant - Individual - International International consultant (project specialist) for 82 w/days @ $600 for activity 4.3.2

Inception Workshop (1) half day inception workshops: Rental of Venue; Catering Services; Stationary/Printing; Equipment Rentals @$5,400 - Activity 4.5.2

Workshop/Discussion Forum (1) Discussion forum: Rental of Venue; Catering Services; Stationary/Printing; Equipment Rentals @$10,800 - Activity 4.5.3

Travel Cost Travel Cost for International Firm carrying out Activities 4.5.3, 4.6.1, and 4.3.1

Travel Cost Travel Cost for consutants carrying out Activty 4.3.2

Budget CategoriesAudio Visual & PrintingAudit FeeConsultant - Individual - InternationalConsultant - Individual - LocalProfessional Services – Companies/FirmIT EquipmentOffice SuppliesTravel - InternationalTravel – LocalWorkshop/Training

Indicate additional budget categories

5.2 Procurement Plan

Item Estimated Cost (US$)

Inception workshop (half day) for Activity 4.5.2 5,400.00

Capacity building and discussion forum for Activity 4.5.3 10,800.00

IT Equipment 3,000.00

$ 19,200.00

Local Consultant - Activity 4.5.1 10,000.00

Local Consultant - Activity 4.5.2 1,600.00

Local Consultant - Activity 4.5.2 400.00

Local Consultant - Activity 4.5.3 400.00

Local Consultant - Activities 4.5.3, 4.6.1, 4.3.1, and 4.3.2 54,000.00

Companies/Firm - Activities 4.5.3, 4.6.1, and 4.3.1 100,200.00

Travel Cost 11,180.00

Consultants - Activities 4.3.2 49,200.00

Travel Cost 11,180.00

Recruitment of the external auditor 4,000.00

$ 242,160.00

venue, catering, workshop materials (printing, pens, pencils, name tags , note pads, folders, audio equipment rental etc.)

Shopping

2 Laptop computers @1,000.00 March, 2020January, 20201,000-2,000Shopping

March, 2020Shopping 4,000-25,000 January, 2020venue, catering, workshop materials (printing, pens, pencils, name tags , note pads, folders, audio equipment rental etc.)

Consultancy Services

Sub-Total (US$)

Open tender 0-10,000

Open tender 0-100,000 January, 2020 Frebruary, 2020

April, 2020 September, 2020

September, 2020 December, 2020

0-200,000

Open tender 0-20,000 January, 2020 March, 2020

0-100,000

Travel Cost for consutants carrying out Activty 4.3.2

Open tender

January, 2020

Sub-Total (US$)

Rapporteur services and Forum Report Open tender 0-1,000 January, 2020 May, 2020

Institutional/organizational trainning firm

Incubator for development of concept notes

Readiness consultant supporting the implementation of activities

September, 2020 December, 2020

Facilitator for Inception Workshop

March, 2020

0-5,000 January, 2020

Item Description Procurement MethodThresholds

(Min-Max monetary value for which indicated procurement method must be used)

Estimated Start Date Projected Contracting Date

Open tender

For goods, services, and consultancies to be procured, please list the items, descriptions in relation to the activities in Section 3, estimated cost, procurement method, relevant threshold, and the estimated dates. Please include the procurement plan for at least the first tranche of disbursement requested below and provide a full procurement plan for the entire duration of the implementation period if available at this stage.

January, 2020 March, 2020

Rapporteur services and Inception Workshop report Open tender 0-1,000

4,000-25,000

Goods and Non-Consulting Services

Audit for the readiness programme

Open tender

Travel Cost for International Firm carrying out Activities 4.5.3, 4.6.1, and 4.3.1

March, 2020

Communication Specialist