Resource Allocation Framework RAF

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• Resource Allocation Framework (RAF)
• GEF Sub-regional Consultations 2006

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Presentation Outline

• Context
• RAF Basics
• RAF Additional Issues

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Context
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Context for this presentation

• Council request to consult with countries in
  implementing the RAF
• Country Support Program a new mechanism for
  increasing effectiveness of Focal Points
• GEF Operational Focal Points play lead role
• in facilitating national consultative process
• to identify country priorities for focal area
• RAF allocates resources to Countries
• Countries expected to identify priorities

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Origins of the RAF

• Policy Recommendation of GEF 3 Replenishment
  Establish a system to allocate resources to
  countries based on
• - Global environmental priorities
• Country-level performance
• Endorsed by GEF Council October 2002
• Adopted by GEF Council September 2005

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Consultations Prior to the adoption of the RAF

• Technical Working Group 2003
• Council Discussion 2003-2005
• - 5 Council meetings
• - 2 Special Consultations
• Adoption September 2005

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RAF Basics
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RAF System for allocating resources to
countries
GEF Benefits Index (GBI)
Allocation
GEF Performance Index (GPI)
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Initial Application of the RAF
To Resources allocated beginning GEF4
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(No Transcript)
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GEF Benefits Index Climate Change (GBICC)
GEF Benefits Index CC (GBICC)
Baseline GHG Emissions
Carbon Intensity Adjustment Factor

X
Green House Gas Carbon equiv for the year 2000
Carbon Intensity 1992 Carbon Intensity 2002
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GEF Performance Index (GPI)
GEF Performance Index



Environment Sector
Project Portfolio
Broad Framework
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What Resources Are Allocated?
Biodiversity Envelope for GEF4
5 Global Regional 5 Small Grants Program
Cross-cutting Capacity Building
90 Country Group allocations (Allocated by
formula Adjusted for ceiling and minimum
allocations)
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Allocations to individual Countries and the
Group Biodiversity
Ceiling
GBI (GEF Benefits Index)
Allocation Formula

GPI (GEF Performance Index)
Minimum
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Allocations to individual Countries and the
Group Climate Change
Ceiling
GBI (GEF Benefits Index)
Allocation Formula

GPI (GEF Performance Index)
Minimum
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Individual Country Specific Allocation orGroup
Allocation
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Country Specific Allocations

• Is not an entitlement
• Is the maximum amount of resources available to a
  country for projects and programs in the focal
  area
• Available only if country brings forth projects
  that meet GEFs Strategic Priorities and
  Operational Programs

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Group Allocation

• Is the maximum amount of resources available to
  all of the countries that are part of the group
  for projects and programs in the focal area
• No country in the group can exceed the upper
  limit for countries in the group

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• RAF Additional Issues

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Other Important Aspects of the RAF

• Operational Focal Point Endorsement
• Allocation Period and Reallocation
• 50 Rule
• Utilization of Allocations
• Unutilized Allocations
• Global and Regional Projects
• Small Grants Program and Cross Cutting Building
• Review of the RAF

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Operational Focal Point Endorsement
indicatesProject is

• Consistent with country priorities and country
  commitments under global environmental
  conventions
• Can be financed with the resources available to
  the country for the focal area under the RAF

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Allocation Period and Reallocation

• Initial Allocation for four year period of GEF4
• Only 50 of allocation can be utilized in first 2
  years. Remainder provided for planning purposes.
• After 2 years reallocation based on reapplication
  of RAF formula using updated GBI and GPI
• Reallocated amount to most countries expected to
  remain same as the initial allocation except
  countries with significant changes in GBI and GPI

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50 Rule

• In first 2 years country can utilize no more than
  50 of its 4-year allocation
• In first 2 years a country in the group can
  utilize no more than 50 of upper limit for
  countries in the group

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OFP Endorsement Necessary for Utilization of
Allocations
not Disbursement
Utilization is Commitment
Enabling Activities (expedited process)

Medium Size Projects


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Full Size Projects
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Unutilized allocations

• Unutilized Allocations at the end of 2 years
  carried over to final 2 years of replenishment
  period
• Unutilized Allocations at the end of
  replenishment period returned to GEF Trust Fund

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Global And Regional Projects

• 5 of resources of each focal area under RAF
  dedicated to Global/regional projects in the
  focal area
• Purely global
• projects which is not financed from country
  allocations such as Millennium Ecosystem
  Assessment
• Multi country with global/regional component
• financed from country allocations and from the
  5 dedicated to Global/Regional projects
• Most funding for regional projects to come from
  Country and Group Allocation

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Small Grants Program andCross cutting Capacity
Building

• Operates without change based on current
  modalities
• Funded from four sources
• 5 of resources available for biodiversity
• 5 of resources available for climate change
• Share of resources available for other focal
  areas
• additional contributions from country and group
  allocation

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Review of the RAF

• Mid-term Review by GEF Evaluation Office
• Review in conjunction with OPS 4

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What are the key changes?

• Countries know upfront how much money they can
  program
• Increased role for Operational Focal Point to
  facilitate consultations for national priority
  setting
• More transparency in allocation processes

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What has not changed?

• Convention guidance remains the primary
  determinant for GEF funding priorities
• Countries prepare projects in keeping with GEF
  Operational Programs and Strategic Priorities
• Project Cycle and Technical Project Review
  Criteria

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Implementation of the RAF

• Implementation begins July 1, 2006
• CEO Letter to Operational Focal Points March 2006
• - Informed how RAF will be implemented
• - Advised steps in the transition to RAF
• - Outlined support from GEF