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cbi Bangladesh Climate Change

Fund

Munjurul Hannan Khan, Ph.D. Ministry of Environment and Forests

Government of Bangladesh31 Oct.- 1 Nov. 2011, Tanzania

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for sustained capacity building in support of international climate change negotiations

pour un renforcement durable des capacités en appui aux négociations internationales sur les changements climatiques

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Publication of the IPCC Third Assessment Report, adaptation gained more momentum

Parties agreed at COP 7 on establishing three new special funds viz.

- Special Climate Change Fund (SCCF)

- Least Developed Countries Fund, (LDCF)

- Adaptation Fund

Background: Climate Finance

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As a response to the COP7, preparation of NAPA in 2005 and Updated in 2009

Lack of Resources under the UNFCCC process

Inaccessibility to the fund through existing financial architecture

Delayed implementation of NAPA/ Adaptation Actions

Background Climate Finance

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Bangladesh Climate Change Trust Fund (BCCTF): Country Driven Initiative

• Established under the Bangladesh Climate Change Trust Fund Act 2010

• Objective: implementing BCCSAP• Allocation USD 100 million each FY in 2009-2010,

2010-2011, 2011-2012 • Nature of Fund: Block Budgetary Allocation • Management : Formation of Trustee Board • Lead Implementing Organization: Ministry of • Environment of Forests• Operation through Board of Trustee and Technical

Committee

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Board of Trustee for CCTF

BoT –17 MembersMinister/ State Minister,

Ministry of Environment and Forest, Finance, Agriculture, Food & Disaster Mgt, Foreign Affairs, Women and Child Affairs, Water Resources, Shipping, Health and Family Planning, Local Government, Rural Dev. And Cooperatives,

Cabinet Secretary, to the government Governor, Bangladesh Bank

Secretary, Ministry of Finance

Member, (Infrastructure ), Planning Commission

Two representatives from civil society nominated by the government

Secretary, Ministry of Environment and Forests ( Member Secretary)

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Organizational Structure: Technical Committee

• Twelve member Technical Committee (TC) headed by Secretary, Ministry of Environment and Forest

• Sectoral technical experts are included as member of the TC

• Evaluate projects/programs and recommend for funding from CCTF

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Organizational Structure: Sub-Technical

Committee Six sub-technical committee formed based on BCCSAP:

• Food security, social protection and health

• Comprehensive disaster management

• Infrastructure

• Research and Knowledge management

• Mitigation and low carbon development

• Capacity building and institutional strengthening

Sub-TC is responsible for technical evaluation for appraising submitted projects/ programs and recommend to TC

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Organizational Structure: Climate Change Unit

Climate Change Unit-CCU’ at the Ministry of Environment and Forest

Responsible for ensuring efficient implementation of the projects/ programs undertaken by other ministries, departments and NGOs.

CCU headed by the Secretary of MoEF

Staff members of CCU also serve as member of ‘Sub-Technical Committee’

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Management: CCTF

Board of Trustee17 member (2 from CSO)

Technical Committee 12 members

Sub-Technical Committee and Climate Change Unit at the MOEF

Secretary MoEF / Secretary -Trust/ Chief CCU

Coordination with Other Ministries

Monitoring implementation of BCCSAP

Minister-MoEF Chair of the Trust

Research/ Policy Negotiation

Perform duties as technical body

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Financing Arrangement

66 % of the total CCTF will be used for projects/programs implementation

Remaining 34% of total CCTF will be kept as ‘fixed deposit’ to support any emergency situation

Also, interest of the 34% fund will be used for projects/programs implementation

It’s not mandatory to spend the total allocated amount within the given financial year.

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Present Utilization of Fund • Food Security, Social Protection and Health: USD 13.89

million

• Comprehensive Disaster Management: USD 10.47 million

• Infrastructure: USD 31.70 million

• Research and Knowledge Management: USD 7.54 million

• Mitigation and Low Carbon Development: USD 28. 14 million

• Capacity Building and Institutional Strengthening: USD 3.64 million

Total : USD 95.38 million

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Following the massive destruction caused by cyclone SIDR, the UK Government showed its interest to support Bangladesh in climate change adaptation.

To shed light on current challenges, in March 08,1st “Bangladesh-UK Climate Conference” held in Dhaka.

In this conference, representatives from the IFIs and DPs said explicitly that they would consider creation of a “Multi-Donor Trust Fund (MDTF)” for Bangladesh to support climate change adaptation and mitigation actions.

Bangladesh Climate Change Resilience Fund (BCCRF): Background

But, the challenge was how to scale up such investment under MDTF

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BCCRF: Objectives

The objective of BCCRF is primarily to support implementation of Bangladesh’s Climate Change Strategy and Action Plan, BCCSAP, a ten-year program (2009-2018)

Also to implement similar activities that would be aimed at building the capacity and resilience of the country to meet the challenge of climate change.

BCCSAP aims to build a climate resilience economy and society in Bangladesh through adaptation to the climate change as well as mitigation for a low carbon dev.path.

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BCCRF: Framework

The BCCRF will comprise grant contributions from the DPs.

The funds will have two windows; an on-budget window for funding public sector projects; and an off budget window for funding projects of the national/local NGOs and non-profit organizations.

The BCCRF approach would embody the five principal principles of ‘Aid Effectiveness’ i.e. country ownership, harmonization, rationalization, predictability and mutual accountability as undertaken through Paris Declaration.

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BCCRF : Governance

The governance of BCCRF will consist of three tiers:

a) An independent ‘Board of Trust’ shall be administered under Bengal Trust Act and will be responsible for the strategic direction

b) A Technical Committee responsible for project selection, review, assessment, evaluation and monitoring

c) A Secretariat responsible for the day to day management of the BCC MDTF and supporting the Board of Trust and the Technical Committee

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Governance First Tier : Members of the Board

1. Minister/State Minister, Ministry of Environment and Forests (Chair )

2. Minister, Ministry of Finance

3. Minister, Ministry of Food and Disaster Management

4. Minister, Ministry of Foreign Affairs

5. Minister, Ministry of Agriculture

6. Minister, Women and Children Affairs

7. Principal Secretary to the Prime Minister Office

8. Secretary, Ministry of Environment and Forests ( Member Secretary of Trust)

9. Secretary, Ministry of ERD

10. Secretary, Planning Division

11. Two Representatives from the Development Partners

12. Two Representatives from Civil Society (Nominated by the Government)

13. World Bank (Observer)

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Governance First Tier:Responsibilities of the Board

- Provide advisory guidance on program strategic goals and alignment with BCC SAP, grant criteria and high-level issues, such as, development of ToR on the Technical Back-stopping and responsibility to GOB

- Oversee overall management and utilization of BCCRF and establish control on the fund

- Develop long term projects and program guide and instruct the expert committee on annual plan and financial plan

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Governance First Tier:Responsibilities of the Board

- Approve recommendation of the technical committee on the implementation of the projects and programs to tackle the impacts of climate change

- Guide in the prepare an annual evaluation report through forming an evaluation team

- Take necessary measures to mobilize funds from other donors

- Review the achievement of results envisaged by the BCCRF

- Provide advocacy support

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Governance 2nd Tier:Technical Committee Members

1. Secretary, Ministry of Environment and Forests,

Chair

2. Member (GED), Planning Commission

3. Additional Secretary, ERD

4. Joint Secretary (Development), Ministry of

Environment and Forests

5. Deputy Secretary (Environment- 1), Ministry of

Environment and Forests

6. Two Representative from the DPs

7. Representative from the World Bank

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Governance 2nd Tier : Technical Committee Responsibility

- Develop, review and endorse the BCCRF Implementation Manual

- Review and endorse the BCCRF’s work program and budget allocations

- Review and endorse initiating grant requests submitted by a Government ministry or agency and other eligible institutions

- Endorse Project Appraisal Document on a “No objection basis”

- Review and endorse the reports prepared by the BCC MDTF Secretariat for submission to the BoT as well as for public dissemination

- Review all semi-annual monitoring and evaluation reports prepared by the secretariat for submission to the BoT

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Governance Third Tier:BCCRF Secretariat

RESPONSIBILITIES

Handling the BCCRF day-to-day operations, including coordination with the Technical Committee and BoT, maintaining records of the BoT’s business, including meeting minutes, decisions, and amendment of the Operational Manual, if required.

Arranging BoT and Technical Committee meetings; handling the correspondence and minutes of the meetings of the BoT and Technical Committees.

Providing guidance and clarification to project applicants and grant recipients on the BCCRF policy processes

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Governance Third Tier:BCCRF Secretariat

RESPONSIBILITIES

Coordinate with the appropriate experts/ consultants for project specific activities such analysis, appraisal and supervision

Identify needs of technical assistance to be sought from the World Bank and other DPs; coordinate with the World Bank and other DPs in this regard.

Managing the Public Disclosure Policy (on the basis of the Right to Information act of the Government of Bangladesh) of the BCCRF, this includes dissemination of information through Web Site and other medium.

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BCCRF Responsibilities and

Coordination

Board of Trust Role: Strategic Guidance & Alignment with the BCCSAP

Technical CommitteeRole: Review, Selection, Evaluation and Monitoring

Secretariat Role: Administrative/Advocacy/ Communication /Coordination/Implementation

DPs/ WB Role: Technical Back stopping, Capacity Building, Skill transfer,

Government Implementing Agencies

Non Government Implementing Agencies

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BCCRF Secretariat Transparency, Accountability and Governance

Accounts: The Board shall ensure proper book keeping of accounts

- The books of accounts shall be open to the inspection by the members of the Board

- Open Communications, Coordination, and Harmonization –create a website to inform about the BCCRF

- Transparency and Accountability - Use of Funds is clearly aligned with the structures, themes and activities under the BCCSAP

- Client Ownership and Capacity Building – Recognize client needs to enhance development aid effectiveness and achieve lasting results, per the Paris Declaration of Aid Effectiveness

- Establish Realistic Goals for the Short- and Medium term – Deliver outputs to meet expectations and achieve visible development impact Open and Fair

- Competition in Procurement – Procure competitively and select most cost-effective solution

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BCCRF: Funding Status

• United Kingdom - US$94.6 million

• Denmark- US$1.8 million

• Sweden - US$13.6 million

• European Union - US$11.7 million

• Switzerland - US$ 3.8 million

Total : US$ 125.5 million

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BCCRF: Funded Project

• Building multipurpose cyclone shelters in coastal areas approved by GC - US$ 25 million

• ‘Agricultural Adaptation in Climatic Risk Prone Areas of Bangladesh -Drought, Flood and Saline prone areas- US$ 22.8 million allocated

• Afforestation and Reforestation for Climate Change Risk Reduction in Hilly and Coastal Areas - US$ 24.95 million allocated

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World Bank : Managing BCCRF

• Interim manager for BCCRF

• Service charge is 4.5%

• Technical inputs during project preparation

• After interim period (five years) responsibility would be transferred to GOB

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BCCF: Challenge Ahead

• How to ensure transparency, accountability and governance

• Predictability of fund to BCCTF and BCCRF

• Utilization of fund for priority action

• Institutional capacity to take responsibility of fiduciary risk management

• How to convince Development Partners for direct access of fund

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Thank you