evaluation and learning partnership on financing forest ......2/5/2017 evaluation leader. tom...
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CIF – ELPFFRE – 7-9 June 2017 1
Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Evaluation and Learning Partnership on Financing Forest Related Enterprises
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
The consortiumIIED is a policy and action research organization with 46 years of experience promoting sustainable development and linking local priorities to global challengesForest Team – governance (learning groups/platforms); climate change including channelling finance to SMEs; viable, sustainable and inclusive enterprises
LTS International Limited (LTS) is a consultancy and project management firm that supports sustainable development worldwide. LTS has operated for over 43 years in the arenas of forests, ecosystems, climate change, and governance. Leading on the evaluation.
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Author nameDateIsilda Nhantumbo2/5/2017
Evaluation LeaderTom Blomley (LTS)
Learning Partnership Coordinator
Xiaoting Hou Jones (IIED)
Lead AdvisorIsilda Nhantumbo (IIED)
Evaluation ManagerPhilippa Lincoln (LTS)
CIFs AU
Other CIF E&L
contractors
Contract management
Routine Reporting Core TeamFinancing
Forest Enterprises
Learning Partnership and learning
groups
Evaluation Quality
Assurance Panel
Paddy Abbot (LTS)James Mayers (IIED)
Reference Group
Peter Dewees (IIED) – MDB Forestry StrategiesDarius Sarshar (LTS) – Private Sector Finance ModelsPROFOR, Donor UK,
observer -CMIA UK, IFC, IDB, Brazil,
Communications Team
Rosalind Goodrich (IIED)Elaine Harty (IIED)David Sankar (IIED)Kirsti Thornber (LTS)
Evaluation Pool
Tillem Burlace (LTS) Matt McConnachie (LTS) National Evaluator teams
Support Team
Forest Enterprise Specialist
Duncan Macqueen (IIED)
The Team and governance
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Outline1. Background – the team, objective of the assignment,
general approach, refining the scope
2. Evaluation and learning framework
3. Evaluation methodology for effective learning
4. Plan of Activities
5. Discussion points
6. Feedback areas
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
1. Background
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Objective of the assignment
to help increase the viability and scale of investments in sustainable forest-related enterprises by harvesting lessons from different types and models of financing tested in the FIP as well as non-CIF investments, and applying learning to ongoing and planned forest investments
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
FIP objectives(a) transformational change in developing
countries policies and practices; (b) piloting of replicable models to generate
learning on the link between investment and emission reduction, sustainable forest management (SFM) and enhanced carbon stocks;
(c) leveraging additional resources to attain effective and sustained REDD+;
(d) providing experience and feedback in the context of UNFCCC deliberations on REDD
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
FIP supported investmentsTYPE 1. Institutional capacity, forest governance and information
TYPE 2. Forest mitigation measures, including forest ecosystem services
Type 3. Measures outside the forest sector necessary to reduce the pressure on forests
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Public grant Public non-grant Private grant Private non-grant
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017Overarching questions
• Understanding tested investment models across public and private sectors
• lessons on effectiveness of FIP and non-FIP across scales and contexts
• Innovative financing models• Transformative models• Transferrable lessons
• Risks and barriers to private sector investment in forest enterprise
• Enabling environment/conditions for SMEs and large scale private sector
• Early results/outcomes of investment
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017Approach
• Developmental evaluation
• Learner focused co-evaluation
• Inclusive learning platforms operational in the long term
• MDBs, Governments• Private sector – tap into the growing network on committed companies
and SMEs to sustainable and climate resilient investments
• Joint analysis of findings to strengthen commitment to learning and subsequent action
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Approach • Meta-analysis
• Document driven Interviews with key informants (Investment officers, FIP focal points)
• Country case studies• 2-4 country evaluation• Advanced project implementation• New joiners• Non-FIP countries
• FIP and Non-FIP projects
• Online learning exchange
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017Refining Scope
• Programme v project level;
• ID focal - financial / business models, investment types (enabling to asset);
• By sector / activity type
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2. Evaluation and learning framework
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017Objective of the LF
“to provide a structure through which to assess ongoing investment mechanisms and models, develop learning on factors that enable or impede successful outcomes, and identify gaps in the evidence or analytical scope that need to be filled”
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Aggregation quantity, quality, time
Marketingadvertising / retailing
The Market
Secure legal rights
Business capacity
Technical know-how
Strong enterprise-
oriented organisatio
n
1. Rights-based advocacy
3. Technical extension
2. E
nter
prise
supp
ort
4. O
rgan
isatio
n
Right-holdersmanage
Natural resource
s
and need Capital
Capacity
Producers
Cooperatives
Associations
Federations
Learning and exchange
Riskassessment and mitigation measures
Finance and investment for
sustainable transformation of
forest landscapes, people’s
livelihoods, economies and climate impacts
Investing in locally controlled forestry
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017Analytical framework for gender and
inclusivity
Gender and
inclusivity
Rights
EquityPower
Setting
the scene at national level
Provisions and practices:
Access – valuable and productive
assets (land, forests and carbon),
Control, inheritance
Representation in decision making process - InfluenceParticipation in sustainable enterprises
Commodities (timber and non-timberforest products, from natural and plantedforests), value chain actors and netbenefits
Production
• Who• Profit margins
Processing (primary, secondary, tertiary) , Transport of raw materials and final products
• Who• Profit margins
CommercializationConsumption
• Who• Profit margins
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Access to finance by SMEs – challenges for
investments in sustainable and
inclusive forest and agriculture businesses
Interest rates – the cost of lending or borrowing can be
enable or prohibitive; low
interest rates offer incentive for SMEs,
but not always available Rate of return – the
profit on investment determines capacity
to repay credit; financial viability of business is critical; operational costs
(e.g. Due to lack of infrastructure)
Repayment period –short versus long term investment;
financing decisions on annual crops and
commerce versus long term crops such as tree or
forest management
Scale – multiple small scale investments
associated with high transaction costs
(management), but what about their cumulative net
economic, social and potentially
environmental and climate gains?
Risk – perceived or real risk of default and money loss for public and private
investors
The grace period –real start ups or
SMEs expanding to new areas of
investment require a period of delayed payments (e.g. a
year)
Collateral or guarantees –preference for assets such as land, physical assets and equipment associated with liquidity
Business management capacity – understanding of production potential, technology and markets; financial management systems by beneficiaries
Legal registration
Natural disasters – floods, droughts, wind storms, fire
Barriers affecting SMEs’ access to financial resources
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017
Evaluation and Learning framework
Enabling investment
Commercial Rights
Technical support
Business know-how and
market networks
Organizational capacity
Asset investment
Unlocking barriers to financing
Criteria for investment
models
Financing mechanisms
Context, scope of
investmentssectors,
value chains
Transformational potential (pathway to
viable, sustainable
and inclusive (e.g. gender) investments –innovation,
impacts
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3. Evaluation methodology
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Identification of Methodologies
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Dual purpose: ID what works, for whom in what context; learning focused
Review of methodologies:
• 7 evaluation / meta analysis methodologies
• focus on realist approach, theory based methods
• Selection / dismissal of methodologies based on benefits and limitations- Focus of ToR (participation, learning, focal question themes)- Practicality and feasibility
• Identification of preferred approach
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Preferred Methodological Approach
• Realist Inspired Approach
• Meta-analysis – will use Portfolio Review and with targeted Literature reviews.
• The country evaluations – Review of Outcomes to Impacts (ROTI) with added elements of Appreciative Inquiry (successes, best practices, alignment with learning approach), Contribution Analysis (causality, excluding rival explanations)
• Data collection will be through document review, stakeholder interviews and focus group discussions / workshops.
• Analysis - ROTI (analysis step); and Realist Inspired Synthesis
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4. Plan of activities –April-March 2018
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•Inception •Learning priorities•Case study selection
April-June 2017
•Meta analysis•Online learning•Country case studies•Country learning events•FIP event
July -October•EL report•Briefing papers•International event (?)
October-December 2017
Reference Group
meeting
Reference group
meeting
• Review of report • Finalization of
outputs
January-March 2018
Final RG meeting
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5. Discussion points
Meetings with stakeholders
Reference Group meeting
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• Demand and supply for financing• Scope for innovation, flexibility?• Unique role of MDBs (Gap filling)
• Success stories• transferrable/replicable models - context• Capitalize on successful initiatives
• Private sector – across different scales• Private financing initiatives • Public-private• Interrogate the FIP projects – subtitle presence of Private Sector
• Gender – access to investment, enterprise
• Technical assistance – financial and business management
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6. Feedback areas
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• Country Case study (ies) – stories of successand more challenging experiences
• Selection of FIP and non-FIP projects
• Key stakeholders for the learning platforms
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Isilda NhantumboPhilippa LincolnXiaoting Hou-Jones8/06/2017Thank you
Isilda Nhantumbo – [email protected]
Philippa Lincoln - [email protected]
Xiaoting Hou Jones [email protected]