Project Preparation

Facility (PPF)
Guidelines
A detailed guide on how to prepare Project Preparation Facility applications
for the Green Climate Fund
October 2020
GCF GUIDEBOOK SERIES

Project Preparation Facility (PPF Guidelines)

This Guidebook is a living document and will be updated to reflect feedback, lessons
learned, as well as policy and operational changes. We encourage readers to use the
online/electronic version of this document. Please provide any comments or feedback
on this document to: [email protected].

All rights reserved

© Green Climate Fund

Published in October 2020

Green Climate Fund

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Cover page photo: © Green Climate Fund greenclimate.fund
Project Preparation
Facility (PPF)
Guidelines
A detailed guide on how to prepare Project Preparation Facility applications
for the Green Climate Fund
October 2020
II GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES
CONTENTS
Glossary of key terms IV

Part I: Project Preparation Facility (PPF)1

1. Overview 1

2. Eligible PPF activities 4

3. Step-by-step application and approval process 7

4. Implementation, monitoring and reporting 11

5. Completion  13

Part II: GCF PPF Application User’s Guide15

A. Executive summary 15

B. Description of project preparation activities 16

C. Justification of the project preparation request 16

D. Implementation arrangements 17

E. Budget details and disbursement schedule 17

Annex I: Sample PPF budget 23

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND III
 GLOSSARY OF KEY TERMS
Accredited entity (AE): AEs are institutions or Direct access entity (DAE): pursuant to paragraph 47 of
organizations that are accredited by GCF through the the Governing Instrument, DAEs are entities accredited
accreditation process. Only AEs can submit a funding under the direct access modality, including subnational,
proposal to GCF. The AEs develop and submit funding national or regional entities, that have obtained a
proposals for appraisal and approval by GCF and oversee nomination from NDAs/focal points. They may include
and monitor the management and implementation of ministries or government agencies, development
projects and programmes approved and financed by GCF. banks, climate funds, commercial banks or other
There are two types of accreditation modalities: direct financial institutions, private foundations and non-
access and international access modalities. For further governmental organizations.
information, please refer to the definition of direct access
entities and international accredited entities. Environmental and social safeguards (ESS) standards:
a set of standards that specifies the desired outcomes
Accreditation Master Agreement (AMA): a framework and the specific requirements to achieve those
legal agreement entered into between GCF and the outcomes through means that are appropriate to the
accredited entity (AE) that marks the final stage of the nature and scale of the activity and commensurate
accreditation of the AE. The AMA establishes the general with the level of environmental and social risks and/
terms and conditions that govern the relationship or impacts. Each AE is required to have a set of ESS
between GCF and the AE during the entire term of standards that are equivalent to the GCF ESS standards
the accreditation of the AE. The AMA also sets out the within the scope of its accreditation and to apply those
main roles and responsibilities of an AE throughout the standards in GCF funded projects.
GCF project cycle. GCF has a template AMA (which
may be updated from time to time), as adopted by the Environmental and Social Policy: a GCF policy, adopted
Board in decision B.12/31, containing the related set of by the Board in decision B.19/10, which sets out the
GCF policies applicable to funded activities. AMAs with ESS requirements applicable in the preparation and
individual AEs are negotiated based on the template AMA. implementation of all GCF funded projects. The policy
articulates the commitments of GCF to sustainable
Climate Investment Committee (CIC): CIC is a development, elaborates how GCF integrates
committee of the Secretariat that oversees the GCF environmental and social issues into its processes and
project pipeline. CIC oversees the development, activities, and sets out the roles and responsibilities of
management and financial planning of the pipeline of AEs, executing entities (EEs) and other parties involved in
concept notes and funding proposals submitted by AEs project implementation in respect of ESS.
and national designated authorities (NDAs), as applicable,
in alignment with GCF portfolio-level goals and Board Executing entity (EE): an entity through which GCF
decisions on financial planning, including matters related proceeds are channeled for the purposes of a PPF
to readiness and preparatory support and the Project application or part thereof; and/or any entity that
Preparation Facility (PPF). executes, carries out or implements a funded activity, or
any part thereof.
Concept note: a document submitted to the Secretariat
by AEs or NDAs/focal points that provides basic Funding proposal: the set of documents prepared using
information on an intended project or programme to GCF standard templates that is submitted to GCF by the
seek feedback on whether the concept is aligned with AEs to formally request funding for a project.
GCF investment criteria and policies.

IV GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES

Framework agreement: An umbrella agreement laying National designated authority (NDA) or focal point:
out the terms and conditions for delivery partners and an authority designated by a developing country party to
GCF regarding the implementation of a portfolio of the UNFCCC pursuant to paragraph 46 of the Governing
readiness support requests and PPF applications. Instrument for GCF that serves as the interface between
each country and GCF. The NDA/focal point plays a key
Gender Policy: the GCF Gender Policy, adopted by the role throughout the project cycle in ensuring country
Board in decision B.24/12, aims to ensure that GCF will ownership and a country-driven approach, which are
contribute to gender equality through a gender-sensitive core principles of the GCF business model. NDAs and
approach and will, in turn, achieve greater and more focal points are listed on the GCF website.
sustainable climate change results. Each AE is required
to have a gender policy that is equivalent to the GCF PPF No-objection letter (NOL): a letter signed and issued
Gender Policy and to apply its own gender policy in GCF by the GCF NDA or a focal point official representative
funded activities. pursuant to the GCF no-objection procedure. The
communication of a no objection implies that the
Grant agreement: a bilateral agreement between an government of the country has no objection to the
accredited entity and GCF (or a designated counterparty funding proposal being supported by a PPF application.
for GCF) stating the terms and conditions regarding the A no-objection is a condition for approval of all PPF
implementation of a single PPF application. applications submitted to GCF.

Indigenous Peoples Policy: a policy adopted by the Readiness and Preparatory Support Programme
Board in decision B.19/11, which aims to ensure that (Readiness): the Readiness and Preparatory Support
GCF activities are developed and implemented in a way Programme (Readiness Programme) focuses on
that fosters full respect, promotion and safeguarding preparing country stakeholders to be successful and
of indigenous peoples so that they: benefit from GCF impactful in their engagement with GCF. This planning
activities and projects in a culturally appropriate manner; arm of GCF funding support goes beyond helping
and do not suffer harm or adverse effects from the countries and organizations to take their first steps
design and implementation of GCF financed activities. in working with GCF. It continues capacity-building
All GCF projects must comply with the applicable throughout the lifecycle of their engagement with
requirements of the Indigenous Peoples Policy. GCF. The Readiness Programme provides resources for
strengthening the institutional capacities of NDAs or
International accredited entities (IAEs): IAEs are AEs that focal points and DAEs to efficiently engage with GCF,
are accredited under the international access modality including the development of concept notes, pipeline
track, operate across multiple regions and countries. metrics and indicators.
IAEs include bilateral development agencies, multilateral
development banks, United Nations organizations, Results areas: GCF funds projects that fall under eight of
intergovernmental organizations and private sector its results areas divided into two categories: mitigation
financial institutions. and adaptation (four results areas for mitigation
and four for adaptation), as approved by the Board
Investment criteria: six criteria adopted by the Board decision B.07/04.
in decision B.07/06 that all GCF funding proposals
have to meet in order to receive GCF funding. The
criteria include coverage areas, activity-specific
sub-criteria and indicative assessment factors further
detailed by the Board.

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND V
VI GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES
PART I: PROJECT
PREPARATION FACILITY
(PPF)
1. OVERVIEW
As mandated by Board decision B.13/21, the Project Preparation Facility (PPF) provides
support to accredited entities (AE) to prepare funding proposals for submission to the
Green Climate Fund (GCF).

The PPF supports AEs in preparing full funding proposals for consideration by the
Board, based on a concept note that has been cleared for project preparation support
vis-à-vis GCF investment criteria. The PPF support includes feasibility studies, gender
assessment, and environment and social assessments, among other inputs required for
submission of a funding proposal to GCF.

The PPF is designed especially to support Direct Access Entities (DAE) for projects in
the micro (<USD 10 million) to small (USD 10-50 million) size category, with a view
to enhancing the balance and diversity of the GCF project portfolio. However, all AEs
(direct access and international) are eligible to apply.1 Financial support for project
preparation will be in the form of grants and repayable grants, and equity may also be
considered for private sector projects.

In general, if a PPF results in a feasible project with income generation potential, the
PPF amount financed by the GCF should be repayable at financial close of the funded
activity. In principle, the PPF funding from the GCF should be repaid within the financial
structure of the Funding Proposal, with terms and conditions to be determined at the
Funding Proposal development and review process, prior to submission to the GCF
Board. If an AE assigns a project supported by the GCF PPF to a third party without the
consent from the GCF, the AE should repay the PPF funding to the GCF. This is not
limited to private sector projects.

Please note that seeking PPF support is voluntary, and concept notes accompanying
PPF applications are strengthened when consistent with priorities articulated in
nationally determined contributions (NDCs) and GCF Country Programmes.

The PPF can provide up to USD 1.5 million per project or programme request by an AE
to GCF. On average, the requested value of PPF support is approximately USD 600,000.
All AEs are encouraged to articulate counterpart financial support for project
preparation within their application for support from the PPF.

1 Note: AEs can submit a PPF application before the signing of the Accreditation Master Agreement (AMA),
but the PPF application can only be approved upon signature of AMA.

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 1
 Please note that PPF support is intended to facilitate submission of a corresponding
funding proposal within two years. As such, the AE is required to submit a funding
proposal to the GCF that is supported by the PPF resources as detailed in the
PPF application within two years of approval of a PPF application unless sufficient
justification for an extension is provided, as per GCF Board decision B.13/21.

Consistent with GCF Investment Criteria, any funding proposal resulting from project
preparation support will only be considered for approval by the GCF Board if it has
a strong case demonstrating the climate science basis of the project and a clear
indication of how this project will be implemented in a manner complementary
with other ongoing climate related projects in the country, including those with
financing from GCF.

PPF VS READINESS

The Green Climate Fund (GCF) offers a range of support programming options, from country programming
that articulates country visions for accessing GCF, to direct access accreditation and capacity development,
adaptation planning and other specialized assessments and services. This support is delivered under two
complementary, but distinct, programmes:
1. Readiness and Preparatory Support Programme (‘Readiness Programme’) and
2. Project Preparation Facility (PPF)

A shared objective of both the Readiness Programme and the PPF is to support NDAs and AEs in ensuring a
strong pipeline of funding proposals with the GCF. The programmes differ, however, in four key ways:
i. Objective: The Readiness Programme provides relatively early stage support to enable countries to
access the GCF and other sources of climate finance. In contrast, the PPF focuses on a later stage in
the process, to help AEs and NDAs prepare funding proposals for submission to the GCF based on
project/programme concept notes that have been defined to have sufficient potential vis-à-vis GCF
investment criteria.
ii. Substantive focus: The Readiness Programme supports a range of human and institutional
capacity-building activities and outputs that are key building blocks for accessing climate finance in
general, including the formulation of adaptation planning processes. In contrast, the PPF supports
studies and design of funding proposals intended to access GCF resources.
iii. Who applies: The Readiness Programme offers financial support for a range of outcomes and outputs
at the request of the country’s NDA. In contrast, the PPF is accessible only to AEs for targeted technical
support to prepare specific projects and programmes into funding proposals that are already at the
concept note stage.
iv. Who implements: Readiness proposals are implemented by “Delivery Partners”, who can be the NDA
itself or any other organization nominated by the NDA to implement the readiness activities. NDAs
can also nominate AEs as Delivery Partners to implement readiness activities. Please note that the PPF
must be presented and implemented by the AE, with a Letter of No-Objection of the NDA.

MODALITIES OF PPF SUPPORT

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Part I: Project Preparation Facility (PPF)

1. PPF funding: The PPF funding modality allows AEs to receive funding from GCF
to undertake project preparation activities by themselves. As such, AEs organize
the procurement and implementation process directly and are accountable for the
oversight and reporting of the approved funding and activities.

AEs who request up to USD 300,000 from GCF (inclusive of AE fee and project
management costs) are eligible for the Simplified PPF Funding, which has a
shortened template for quicker preparation and approval.

2. PPF service: The PPF service enables the GCF to use a roster of independent
consultancy firms who can provide project preparation services to AEs. This PPF
access modality enables the Secretariat to deploy such firms directly upon request,
ensuring fast and quality delivery to AEs who face challenges in taking on the
procurement, and project managememnt of PPF activities by themselves.

– Project development support will be provided through the deployment of an

independent consultancy firm directly by GCF based on a procurement process.

– Alleviated administrative and managerial burden for AEs.

– Professional project preparation service providers pre-selected by GCF based on

their expertise and track record.

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 3
 2. ELIGIBLE PPF ACTIVITIES
The PPF can support one or more of the activities described below. Please note that
activities eligible for GCF’s PPF support need to contribute directly to the development
of one particular project and will need to be submitted as part of the funding
proposal package.

1. Pre-feasibility and feasibility studies, as well as project design. In particular,

studies should compare scenarios with and without the project under a projection
of climate change and against a baseline situation, and compare those scenarios
to each other to determine the impact of the project. This would include data
collection, research, site specific technical appraisals, and cost benefit analysis, as
well as market research and estimated GHG reduction calculations.

Other examples could include studies on specific technological solutions proposed,

such as a pre-feasibility study or feasibility study for scaling up deployment
of a specific climate solution (e.g. solar photovoltaic, or specific climate
resilient crops, etc.).

2. Environmental, social and gender studies. As articulated in the Environmental

and Social Safeguards Policy, GCF requires that due diligence is exercised in
the projects and programmes such that all measures are undertaken to identify,
assess and manage the environmental and social risks and impacts. The exercise
of environmental and social due diligence shall follow good international industry
practices (GIIP) and based on established relevant guidance.2

For example:

a. Environmental and Social Impact Assessment (ESIA)

– Strategic Environmental and Social Assessment (SESA)
– Regional ESA
– Sectoral ESA;

b. Environmental and social audits and risk assessment (for brownfield projects
or programmes);

2 Examples of guidance documents on ESS:

(a) IFC Guidance Notes: Performance Standards on Environmental and Social Sustainability;
(b) World Bank Group Environmental, Health, and Safety Guidelines; and
(c) Other relevant guidance from international and country institutions pertaining to conduct of
environmental and social assessments, stakeholder consultations and free, prior and informed
consent.

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Part I: Project Preparation Facility (PPF)

c. Environmental and Social Management Framework (ESMF), or project- or

programme-level Environmental and Social Management System (ESMS), for
intermediated projects or programmes or when the locations of activities have
not been defined;

d. Environmental and Social Management Plan (ESMP)

Additional requirements depending on the type of environmental and social
risks and impacts and may be required to meet the GCF Environmental Social
Safeguards (ESS):

i. Resettlement Action Plan (RAP), Abbreviated Resettlement Action Plan (ARAP),

Land Acquisition Plan, Livelihood Restoration Plan, Resettlement Policy
Framework and other associated process frameworks
ii. Livelihoods Restoration Plan
iii. Biodiversity Management Plan
iv. Indigenous Peoples Plan (IPP) or Community Development Plan;

e. Stakeholder3 engagement consultations attendant to the process for assessing

and managing environmental and social risks and impacts, including obtaining
free, prior and informed consent (FPIC) where projects require such under the
GCF Indigenous Peoples Policy and the GCF ESS policy for Indigenous Peoples;

f. Stakeholder engagement plan and project-level grievance

redress mechanism; and

g. Other additional due diligence as required by GCF.

The following table can be referred to as the minimum documentation for each
category of project. Additional due diligence may be required based on the complexity
of the project.

Table 1. REQUIRED ENVIRONMENTAL AND SOCIAL DOCUMENTS BY

PROJECT CATEGORIES

CATEGORY C CATEGORY B CATEGORY A

Minimum E&S • E&S risk screening • ESIA (fit for purpose) • ESIA (full and comprehensive)
documents
• Stakeholder engagement plan • ESMP (with limited focus as may • ESMP (full and comprehensive)
and project-level grievance be appropriate)
redress mechanism • Stakeholder engagement plan
• Stakeholder engagement plan and project-level grievance
and project-level grievance redress mechanism
redress mechanism

Abbreviations: E&S = environmental and social, ESIA = Environmental and Social Impact
Assessment, ESMP = Environmental and Social Management Plan

Gender studies4 may include:

a. Gender assessment, including an assessment of the baseline situation;

b. (Programme/project level) Gender Action Plan; and

3 Sustainability Guidance Note: Designing and ensuring meaningful stakeholder engagement on

GCF-supported projects (soon to be published)
4 Guidance on mainstreaming gender can be found on the GCF website at:
- Gender Assessment and Action Plan Template
- GCF Toolkit Mainstreaming Gender
- Leveraging Co-Benefit between Gender and Climate Action

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 5
 c. Incorporation of gender-responsive indicators and targets with baseline, in the
logic framework of the funding proposal.

3. Risk assessments

For example:

a. Analysis on risk mitigation instruments;

b. Site-specific hazard assessments, including identifying hazards and determining

hazard mitigations;

c. Risk analysis as part of the pre-feasibility and detailed feasibility studies;

d. Development of sensitivities and case scenarios as part of the financial analysis

(for example: macroeconomic: currency value fluctuations, inflation and interest
rate fluctuations and risk mitigants or project related: costs overrun, potential
decrease in project revenues); and

e. Identification and assessment of potential executing entities in the funding

proposal to GCF.

4. Identification of programme- and project-level indicators and methods to monitor

them, if not already included in the feasibility study.

For example:
a. Logical frameworks, including GCF relevant indicators, and project indicators,
their baselines and targets;

b. Assessment of the project/programme against GCF investment criteria;

c. Market assessment and recommendations;

d. Economic analysis and recommendations, including cost benefit analysis; and

e. Financial analysis and recommendations.

5. Pre-contract services, including the revision of tender documents.

For example:

a. Terms of reference (TOR);

b. Bidding documents;

c. Procurement packages;

d. Request for proposals;

e. Expressions of interest; and

f. Prequalification criteria.

6. Advisory services and/or other services to financially structure a proposed

project/programme.

For example:

a. Advisory services for costing and budgeting according to GCF standards,

including the costing in relation to incremental cost for adaptation, in case the
project/programme targets adaptation or cross-cutting results; and

b. Advice on legal, financial, tax, regulatory and governance matters, to help

structure the investments (can also be a part of feasibility studies); and

7. Other project preparation activities, where necessary, and with

sufficient justification.

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Part I: Project Preparation Facility (PPF)

For example:

a. Workshops and consultations; and

b. Translation of project documents.

Expenditures that are not eligible for PPF support include:

• Costs associated with normal responsibilities of an AE and/or government staff

beyond specific project preparation activities for the project in question;

• Project start-up costs, demonstration and pilot projects;

• Capital goods other than those directly required for project preparation, such as
computers, hardware and mechanical equipment;

• Country level inventories, policies, studies, and general capacity-building activities

that can be supported by the GCF Readiness Programme; and

• Purchase of vehicles.

3. STEP-BY-STEP APPLICATION AND

APPROVAL PROCESS
All entities accredited to GCF are eligible to apply for PPF funding and service. Those
that request up to USD 300,000 for GCF PPF financing are eligible for Simplified PPF
funding, using a simplified template for quicker preparation and review.

AEs must submit a project/programme concept note either prior to, or together
with, a PPF application. The objective of a PPF application is to finance or assist
in the preparation of a funding proposal package based on the concept note. All
PPF applications must be submitted in Word format, provide sufficient justification
of the AE’s need for project preparation funding from GCF, as well as a detailed
budget breakdown.

Once a concept note is cleared by the GCF Climate Investment Committee (CIC) for
PPF support vis-à-vis the GCF Investment Criteria, a PPF application can be considered.

Following clearance from the CIC, the estimated timeframe for initial feedback
from the Secretariat on the PPF application is within one month. In general, the
approval of a PPF request, once the associated concept note has been cleared, takes
around three months. However, experience shows that the overall time required
depends significantly on the level of completeness and detail provided in the original
PPF application.

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 7
 During any stage of the reviewing process, the AE and the NDA of the project country
can withdraw the application with an email request to [email protected].

Figure 1. PROCESS FOR PPF SERVICE AND PPF FUNDING

Please refer to the PPF Application User’s Guide in Part II for tips.

STEP 1: SUBMISSION OF PPF APPLICATION PACKAGE

AEs should submit a complete PPF application at [email protected], with the respective
country NDA(s) or focal point(s) in copy. A complete PPF application package includes:

ALTERNATIVELY, …

Concept notes can also be submitted prior to the PPF application. AEs can submit concept notes for
feedback first and, based on the comments, design and then submit a PPF application. AEs can submit
concept notes to GCF through the regular concept note cycle, and the comments shared with the AE
may include a suggestion to proceed with the PPF application.

STEP 2: SECRETARIAT REVIEW AND AE REVISIONS

PPF applications are reviewed and approved by the GCF Secretariat; PPF funding
approvals do not require a decision from the GCF Board.

I. Review of the underlying project/programme concept note

The concept note of the underlying project/programme seeking project preparation
support is firstly reviewed by the inter-divisional project team (IPT), then cleared by
the Climate Investment Committee. The review is done vis-à-vis GCF objectives
and policies. The following elements are considered when providing comments on
the concept note:

• Alignment with the GCF results areas in accordance with the GCF Results
Management Framework;

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Part I: Project Preparation Facility (PPF)

• Alignment with the GCF investment criteria in accordance with the GCF
investment framework;

• Objective of the project/programme, the context and baseline, including

the climate science basis of the project;

• Justification for GCF’s support for the proposed project/programme; and

• Sustainability and replicability of the proposed project/programme.

In the case of private sector project concept notes, special attention will be given
to the proposed financial sources and structure to ensure the potential of a viable
funding proposal.

Please refer to the GCF Programming Manual on the scope of the Climate
Investment Committee.

For more information on how to prepare a concept note, please refer to the Concept
Note User’s Guide.

Furthermore, the sustainability aspects of the project concept are also reviewed and
commented on consistent with relevant GCF policies such as Gender, Environment and
Social Safeguards and Indigenous Peoples. The review result of the concept note will
inform the next step of the PPF package review.

Three types of review feedback are provided in a concept note associated with a
PPF application:

a. Concept note has sufficient potential to receive PPF support: if the concept
note meets the basic GCF investment criteria requirements and is endorsed by
the GCF Climate Investment Committee, it will automatically trigger the review
of the PPF application. In this case, the AE will receive feedback from the GCF
Secretariat on both the concept note and the PPF application. Comments on the
concept note are for consideration at the project preparation stage, but no action
is required before the approval of the PPF application. Comments for the PPF
application will need to be addressed in the resubmission. Please note that the
clearance of the concept note for seeking PPF support does not have any bearing
on potential approval of the future funding proposal.

(OR)

b. Concept note resubmission is needed: in case there are substantive comments

and as a result certain elements of the concept note need to be addressed to
gain clearance for project preparation support, the AE will receive comments
from the GCF secretariat only on the concept note. In this case, the AE will first
need to address the comments on the concept note with a resubmission. The
PPF application review will only be triggered once the concept note has been
endorsed by the GCF Climate Investment Committee.

(OR)

c. Concept note is not recommended for further development: in the event

that the Secretariat assessment of the underlying concept suggests that it
does not seem to be a strategic fit in terms of GCF’s investment criteria, the
climate science basis, technical merit, and/or the AE’s accreditation status, the
Secretariat will advise the AE not to proceed with the PPF request. The AE can
resubmit the concept note if the project is redesigned as suggested by the
comments provided.

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 9
 II. Review of the PPF application

Once the concept note is cleared by the Climate Investment Committee, the review of
the PPF application starts. The review of PPF applications is led by the PPF team; when
substantive expertise is required in other fields, inputs will be sought from other teams
and divisions.

Based on this assessment, the application could either be processed further to approval
or sent back to the AE for revisions. In the latter case, the PPF team will communicate
GCF feedback to the AE for a resubmission.

Below are the criteria against which the PPF application form is reviewed:

TABLE 3. PPF REVIEW CRITERIA

ASSESSMENT CRITERIA PPF FUNDING PPF SERVICE

STANDARD PPF SIMPLIFIED PPF

APPLICATION APPLICATION

Articulation of how the PPF activities will produce the documents that
✔ ✔ ✔
make up a funding proposal

Justification of the AE’s need for project preparation support ✔ ✔ ✔

Detailed implementation arrangements ✔ Limited N/A

Detailed budget to ensure efficient use of GCF resources

✔ Limited N/A
for project preparation

Detailed disbursement and reporting schedule ✔ Limited N/A

Counterpart financial support for project preparation is encouraged ✔ ✔ N/A

Adequacy of terms of reference for desired studies/outputs ✔ ✔ ✔

STEP 3: PPF APPLICATION APPROVAL

PPF funding

Once GCF feedback has been fully addressed, the PPF application package (including
concept note and associated PPF application) will be sent to the GCF approving
authority for approval. Each approved PPF funding application package will be
disclosed on the PPF page of the GCF website.

PPF service
A partnered firm from the GCF project preparation roster will be selected to undertake
the activities. This will be decided through an open, transparent and competitive
process in line with the GCF procurement policy and inclusive of the recipient AE.

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Part I: Project Preparation Facility (PPF)

Upon selection of the firm, the detailed support package will be approved by the
relevant GCF approval authority. Each approved PPF service application package will be
disclosed on the PPF page of the GCF website.

STEP 4: LEGAL AGREEMENT

For PPF funding applications:

Subsequent to PPF funding approval, a Notification of Approval for the PPF application
package will be sent to the NDA of the project country with the AE in copy.

• For AEs who have a Readiness and Preparatory Support Framework Agreement
(“Framework Agreement”) with the GCF, a disbursement request could be submitted
to GCF upon the Notification of Approval.

• For AEs that do not have a Readiness and Preparatory Support Framework
Agreement, a legal agreement for the approved PPF application will need to be
signed before disbursement.

– The GCF has engaged the United Nations Office for Project Services (UNOPS)
for grant management support to the Readiness Programme and PPF, including
the establishment of a grant agreement, performance monitoring and
disbursements under the agreement. In these cases, UNOPS will directly engage
with the AE concerning execution of the agreement as well as monitoring and
payment activities.

– A bilateral agreement between the AE and GCF could also be arranged. If

requested by the AE, GCF will discuss on a case by case basis.

For PPF service applications:

Following the PPF approval, a Notification of Approval for the PPF application package
will be sent to the NDA of the project country with the AE in copy. Subsequent
contractual arrangements will capture roles, responsibilities and operational details
related to a specific PPF service application.

4. IMPLEMENTATION, MONITORING
AND REPORTING
For PPF service applications, implementation will be carried out by the selected firm
with instruction from the AEs. Detailed timeframe, duration and implementation details
will be captured in subsequent contractual arrangements.

For PPF funding applications, please be aware of the monitoring and reporting
plan proposed in the PPF application and provide necessary documents to the GCF
Secretariat. The implementation of PPF activities begins following the effectiveness of
the legal agreement.

• Start dates for implementation occur on the day of notification of effectiveness

for all bilateral grant agreements; start dates for implementation of PPFs under
the Readiness Framework Agreement are described in the effective framework
agreement themselves.

• The date of expiration, for both the bilateral agreement and PPFs under the
Readiness Framework Agreement, indicates the date by when the AEs must submit
the completion report, final audited financial report and any remaining deliverables.
The expiration date of the agreement is three (3) months following the end of the

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 11
 implementation period. No financial commitments or expenditures may be made
after the expiration date.

The guidance below provides further information on any deviation that may occur
during implementation as well as required actions from AEs.

DEVIATION IN IMPLEMENTATION PLAN AND BUDGET

Once a PPF application enters implementation, and if a revision or adjustment to the
original plan is required due to unforeseen events or change of circumstances, the
AE should notify and seek guidance from the GCF as soon as the AE is aware that any
revisions are required to the approved implementation plan.

Considering the legal requirements stipulated in the agreements as well as GCF

internal policy and procedure, the guidelines below provide information on
how AEs should address some of the most common issues encountered during
implementation of activities.

• Extension: AEs must submit a written request for extension to the GCF Secretariat,
together with a justification for the extension including the need for continuing the
activities and a demonstration that sufficient funds remain to cover the extended
period. The request must be received at least 60 days prior to the end of the
implementation period.

• Restructuring: AEs must submit an official signed written request to the GCF
Secretariat providing a comparison between the original and requested revisions
to the outcomes, outputs and activities with corresponding budget modification,
together with a justification for the proposed changes. A tabular summary of the
changes proposed is encouraged. For example, in the form of a change-frame,
showing summary descriptions and reasons for the proposed changes, and the
effect on expected outputs and budget.

• Budget issues: during the project implementation, AEs might encounter situations
where changes from the initial budget plan or financing schedule might be
warranted. Below is a set of guidelines that will be applied to the activities funded
under the PPF that are under implementation.

TABLE 4. BUDGET EVENTS AND RESPONSE PROCEDURES FOR PPF UNDER IMPLEMENTATION

EVENT PROCEDURE

Unplanned/unsolicited For any unplanned/unsolicited activities and/or budget the AE must seek prior approval from the GCF
activities and budget Secretariat in writing, providing sufficient justification acceptable to the GCF.

Budget reallocation For any reallocation of approved budget among the budget categories resulting in a variation of more
than 20 per cent, the AE must seek prior approval from the GCF Secretariat in writing. This method may
not be used to increase the project management costs.

Subsequent disbursement For disbursements subsequent to the first disbursement, evidence should be provided in progress
threshold reports and/or financial reports that at least 70 per cent of the total funds previously disbursed has been
committed.

Retroactive financing GCF proceeds shall not be used to finance any costs incurred prior to the effective date of the legal
agreement between the AEs and GCF.

Use of contingency Any use of contingency must be reported to and agreed by the GCF Secretariat in writing (email is
sufficient) in advance, and AEs should provide justifications that are acceptable to the GCF.

12 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES

Part I: Project Preparation Facility (PPF)

MONITORING AND REPORTING

AEs report to the GCF Secretariat, or the designated fund agent, utilizing the PPF
progress report template on an agreed schedule against deliverables and budget
outlined in the approved PPF application.

Please note the following points regarding the reporting:

• PPF activities are implemented according to the specifications of the agreed work
plan (including deliverables and timeline) and budget;

• A financial management system should be maintained, with separate accounts (i.e.

bank account or ledger) and records for the project;

• Financial statements should be prepared in accordance with consistently applied

accounting standards, audited on an annual basis by reputable independent auditors,
and furnished to the GCF Secretariat in accordance with the reporting requirements
set in the proposal and/or grant agreement;

• Reports submitted to the GCF Secretariat will be disclosed on the GCF website in
accordance with the GCF Information Disclosure Policy;

• GCF is able to request, audit and verify documents/reports and data related to the
project execution upon request to the extent defined in the Grant Agreement or
Framework Readiness and Preparatory Support Grant Agreement; and

• Towards the end of the project preparation implementation period, the AE will
prepare the PPF Completion Report and submit it to the GCF Secretariat.

In addition to reporting to GCF, it is the role of AEs to report regularly to the

NDA(s). AEs should maintain consistent and clear lines of communication and
reporting to the NDAs.

5. COMPLETION
The full funding proposal supported by a PPF application should be submitted within
two years after the PPF application was approved, unless sufficient justification for an
extension is provided. If a delay is anticipated, the AE is expected to inform the GCF
Secretariat as soon as possible with justification and adjusted plans for completion.

USEFUL LINKS FOR PPF APPLICATIONS

• GCF project or programme concept note
• List of countries’ National Designated Authority (NDA) or focal point

• Examples of approved PPF applications

• No-objection letter template for PPF

• PPF application template

• GCF investment criteria

• Concept Note User’s Guide

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 13
14 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES
PART II: GCF PPF
APPLICATION USER’S
GUIDE
The following guidance corresponds to the five main sections of the PPF Funding
Application Form and the Simplified PPF Funding Application Form. Specific guidance
is provided when different for the Simplified Application Form.

A. Executive Summary

B. Description of Project Preparation Activities

C. Justification of the Project Preparation Request

D. Implementation Arrangements

E. Budget Details and Disbursement Schedule

Additional sections provide guidance on PPF related monitoring and reporting and
legal guidance.

Guidance provided on Sections A, B and C also apply to the Project Preparation

Facility Service Application.

A. EXECUTIVE SUMMARY
The Executive Summary should feature a clear and comprehensive overview of the
project preparation activities to develop the concept note into a full funding proposal.
The summary should focus on the PPF request and activities, and not information
describing the underlying project in the concept note. The summary must clearly
articulate the linkages between the underlying project and PPF application, highlighting
related national priorities of beneficiary countries to ensure both relevance and full
country ownership.

TIPS

• Be concise. As an indication, the summary should be approximately 200 words.

• Indicate PPF activity duration in months. For “Anticipated Duration” indicate only the total
calendar months, excluding the exact month and year from the application as this is frequently
subject to change during the application review process. Since a funding proposal supported by
a PPF application will need to be submitted within two (2) years after PPF approval, the maximum
duration for a PPF application is 24 months.
• Accreditation Master Agreement (AMA). An AE can submit a PPF application before the signing of
the AMA. However, the PPF application can only be approved upon signing of the AMA.

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 15
 B. DESCRIPTION OF PROJECT
PREPARATION ACTIVITIES
Elaborating on the Executive Summary, the description of requested PPF activities
should present a strong and strategic approach for planned project or programme
preparation activities and related deliverables in a tabular format. The logic and
rationale should make clear how the activities and deliverables ultimately contribute to
formulation of a full package of documents that make up a funding proposal. Please
provide a concise description of proposed activities and what specific deliverable/s are
associated with it. Moreover, activities should be organized by deliverables (i.e outputs).
For example: Activity 1: Conduct feasibility study; Activity 2: Carry out gender
assessment; Activity 3: Undertake financial analysis, etc.

TIPS

• Streamline project activities/deliverables with TORs. In cases in which technical assistance is

to be procured with the PPF funds, please ensure that activities listed in Section B are streamlined
and consistent with corresponding terms of reference (TORs) required for submission under
Implementation Arrangements (Section D), and vice versa.
• PPF resources cannot be used for general “capacity-building” or training activities, which
are more appropriate for Readiness Programme support or during implementation of a project, if
the proposed capacity-building activities are contributing to the overall objectives of the funding
proposal. Such activities may include strengthening the project development or management
functions of DAEs, or skills and capacities of NDAs or project stakeholders. Refer to the Readiness
Guidebook for more information.
• While DAEs are eligible for PPF support for drafting funding proposals, international AEs are
expected to support this project preparation work independently of GCF PPF support.
• For PPF applications that seek support for undertaking environmental and social due diligence,
the project concept note shall be accompanied with the result of the project environmental
and social screening. The screening shall form the basis of the proposed environmental and social
risk category of the project (the environmental and social risk category should be included in the
concept note and the rationale for assigning the category), as well as the corresponding scope of
assessment and mitigation measures that will be developed.5
• On the basis of the environmental and social risk categories as defined in the GCF
Environmental and Social Policy, environmental and social due diligence for projects that are
considered to have moderate to high environmental and social risk (Categories B and A) or
considered as medium- to high-level intermediation (I-2 and I-1) will be considered for support.
Requests for support for such due diligence activities should be accompanied by terms of reference
(TOR) specific to the due diligence activities or studies.
• PPF applications that seek support for undertaking a gender assessment and development of
the gender action plan should be accompanied by terms of reference (TOR) specific to the study.

C. JUSTIFICATION OF THE PROJECT

PREPARATION REQUEST
Building on the Executive Summary (Section A) and description of requested PPF
activities (Section B), Section C provides an opportunity for AEs to elaborate on why
the project would not otherwise be able to progress from concept note to a full
funding proposal without PPF support. This includes contextual considerations, such
as certain limitations or needs the AE has in bringing the project forward, as well as
accompanying financial or economic circumstances that justify PPF support.

5 The environmental and social screening of the project should be undertaken by the AE with the AE’s
template and procedures. GCF PPF resources cannot be used to undertake environmental and social
screening of the proposed project.

16 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES

Part II: GCF PPF Application User’s Guide

TIPS

• Justify needs of international AE. Given the PPF is especially to support DAEs and micro-to-small
size category projects, justification of the need for PPF support must be extensively elaborated by
international AEs.

D. IMPLEMENTATION ARRANGEMENTS
AEs are solely responsible for PPF activities, including implementation, monitoring,
reporting, financial management and related processes (procurement, audits, etc.). In
cases in which the AE is working with one or more organizations for implementation of
PPF activities, the AE can:

• procure services of such other organizations/consultants (service providers) in

accordance with the procurement rules, policies and procedures of the AE. Note
that different service providers can be used for different activities based on required
skills and expertise; or

• implement the PPF activities through other entities as “sub-grantees”, if approved

by the GCF and according to the terms and conditions of the agreement between
GCF and the AEs.

The Simplified PPF Funding Application provides standard text with blanks for
the AEs to fill in to facilitate review. Please refer to the guidance provided in the
template for details.

TIPS

• Engage a qualified audit firm to perform an audited financial report. The AE is responsible for
selecting a well-recognized and registered audit firm compliant with international standards for
auditing acceptable to the GCF, to conduct financial audit for GCF PPF resources.
• Reporting requirements. Reporting is required during the implementation of PPF and the AE is
responsible for this. A reporting plan should be included in Section E together with disbursement
plan (see Section E below for more guidance). When submitting the interim progress report and
completion report, please ensure all completed technical deliverables are also submitted.
• Reporting templates. GCF provides interim progress report and final reporting templates for
implementation reporting.6 Note that PPF applications are not required to perform internal or
external evaluation. However, GCF reserves the right to independently evaluate on an ad-hoc basis.
• Implementation map. We encourage AEs to provide a simple diagram and brief text description
of key institutional actors and their respective roles in the implementation of PPF activities. This
should include the organizations involved in the PPF activities (AE, and other actors), the legal
relationships between them, their different roles and responsibilities, as well as the flow of funds
within the PPF activities.

E. BUDGET DETAILS AND DISBURSEMENT

SCHEDULE
PPF funds are to be used efficiently and effectively to ensure high-quality and good
value for money. Therefore, please provide a detailed budget using the template in the
PPF application form (see an example in Annex I). An activity-based budget should be
provided consistent with the activities proposed in Section B of the application. Please

6 Templates are available on the GCF website at the project preparation facility page

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 17
 ensure to provide “Sub-total” information for each activity and use cost categories,
e.g. Consultants, Travel, and Workshops, Others).

To ensure increased ownership of project preparation activities, GCF encourages

voluntary cost-sharing or co-financing with AEs and other partners to the
extent possible.

TIPS

• Provide a detailed and moderate budget in the PPF funding application form. To expedite the
PPF review, it is recommended to provide detailed and moderate budget breakdown information.
Feel free to use footnotes for clarification and explanation. Ensure the indicated quantity, unit cost,
duration and overall total costs for PPF funded activities and deliverables are proposed accordingly,
and are appropriate to the local context. The Simplified PPF Funding Application requires fewer
details on the budget and focuses on total requested budget for activity and sub-activity.
• Round up budget numbers, including consultancy rates and the overall budget.
• Justify and rationalize travel-related (local and international) costs. Consider opportunities to
moderate travel-related costs and provide sufficient details and justification for the need for the
amount of travel. If trips are related to different activities, please separately list the travel under
different activities.
• Contextualize consultancy rates. Please indicate whether national or international consultants are
to be recruited and ensure proposed consultancy rates are appropriate in the context of local and
international standards; account appropriately for junior/mid-level/senior levels and indicate these
are in line with the AE’s internal procurement policies.
• Consultancy firms. If consultancy firms are to be procured to undertake activities, please provide
the overall cost per activity. No breakdown information is needed.
• Justify and rationalize stakeholder consultations/workshops. Ensure a detailed cost breakdown
is provided for stakeholder engagement events including workshops with, for example, estimated
number of participants, facility and travel considerations. A strategic approach to stakeholder
consultations is encouraged to ensure a rationalized approach and efficient budgeting, avoiding
excessive costs and “stakeholder fatigue”, and consolidating engagement events where possible.
• Budget for external financial audit/s. One financial audit in the form of either an audited financial
report or audited certified financial report is required every 12 months for PPF and should be
budgeted for accordingly. For PPFs with a duration equal to or less than 18 months, one audit
report must be submitted. For PPFs with a duration of more than 18 months, two audit reports must
be submitted. Correspondently, the audit cost shall be allocated and budgeted accordingly under
the project management cost (PMC).
• Permitted reallocation. Any reallocation of GCF proceeds among the PPF budget category
resulting in a variation of more than twenty per cent (20%) of the previously agreed budget for
the category from which the funds are to be reallocated must be approved in writing by GCF in
advance.
• Contingency. Up to five per cent of total GCF financed activities budget (excluding PMC and
AE fee). The contingency budget must be used for any unforeseen programme (output level)
cost, such as foreign exchange gain and loss, courier service etc., which is unrelated to the
implementation/service fee. Any use of the contingency budget must be reported in the financial
report and must be agreed by the GCF Secretariat in writing (email is sufficient) in advance, and
AEs should provide justifications that are acceptable to GCF. Moreover, any unspent contingency
budget cannot be reprogrammed into additional activities or purchase of additional equipment.
• Project Management Cost (PMC). These 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 manages the day-to-day activities related to execution of the project. The general principles
of PMC include:
– The percentage of PMC financed by GCF should not be more than the percentage share of the
overall budget financed by GCF;
– PMC budget threshold is up to 7.5 per cent of total GCF financed activities budget and
contingency;
– PMC exceeding 7.5 per cent for the PPF application will require detailed documentation and
justification supporting the entire PMC budget; and

18 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES

Part II: GCF PPF Application User’s Guide

– The PMC should be shown as a separate component in the project budget. A detailed
Indicative list of eligible costs under PMC:
− Project staff and consultants such as project manager, project assistant, procurement
personnel, and finance and admin personnel;
− Other direct cost such as office equipment, mission-related travel cost for PMU, project
management systems and information technology, office supply, and audit cost; and
− Cost of translating implementing progress and completion reports to GCF into and out of
English, as pre-approved by GCF.
Indicative list of ineligible costs under PMC:
− Cost of salaries and benefits of seconded staff from the Executing Entities (EEs), unless
pre-approved by GCF;
− Cost of salaries and fees for the AE staff or consultants, unless these have been pre-approved
by GCF;
− Any budget costs indicated as contingent costs;
− Budgeted costs under general classifications such as miscellaneous/unspecified;
− Outbound international travel costs, unless pre-approved by GCF;
− Capital goods other than those directly required for successful execution of the application;
and
− Monitoring of project indicators and periodic monitoring reports (these are budgeted under
the measurement and evaluation budget and are a separate line of the project costs).
• AE fee. Up to 8.5 per cent. This should be calculated on the total budget excluding co-financing
(i.e. Total GCF financed activity + PMC + Contingency).
– Purpose and intended use: use of the AE fee will be subject to reporting and certification. It is
intended that fees are used to support the implementation of GCF projects and other eligible
GCF-related activities.
– Economies of scale: AEs managing more than five GCF projects, readiness projects or PPF
applications, respectively, are expected to explore synergies in the management of projects in
their GCF portfolio, which should result in cost savings across the portfolio of projects under
management, which is to be reflected in the fee request.
– Indicative list of eligible costs under the AE fee:
− Project implementation and supervision:
• Appraise and finalize project implementation arrangements, including mission travel;
• Assist and advise the project proponent on the establishment of project management
structure in the recipient country/countries;
• Assist project management to draft terms of reference (TOR) and advise on the selection
of experts for implementation;
• Advise on and participate in project start-up workshops;
• Conduct at least one supervision mission per year, including briefing operational focal
points on project progress;
• Provide technical guidance, as necessary, for project implementation;
• As needed, include technical consultants during supervision missions to advise
government officials on technical matters and provide technical assistance for the project;
• Oversee procurement and financial management to ensure implementation is in line with
the policies and timelines of the AEs;
• Disburse funds to the EEs/vendors (as applicable) and review financial reports;
• Assist/oversee the audit process throughout the project life cycle;
• Oversee preparation of the required reports for submission to the Secretariat;
• Monitor and review project expenditure reports; and
• Prepare periodic revisions to reflect changes in annual expense category budgets.
− Project reporting and evaluation:
• Oversee preparation of the project completion report/independent terminal evaluation,
and submit the report to the Secretariat;

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 19
 • Prepare project closing documents for submission to the Secretariat; and
• Prepare the financial closure of the project for submission to the Secretariat.
• Develop disbursement plans around GCF reporting requirements. Disbursement plans should
be included in Section E of the PPF application. Disbursements of PPF funds will be made directly
from GCF to AEs. For PPF applications of 12 months or less, 90 per cent of the overall budget can
be disbursed upon effectiveness of the funding agreement, with a 10 per cent final disbursement
upon submission of the completion report and final audited financial report satisfactory to GCF.
For PPF applications over 12 months, 50 per cent of the total project value will be disbursed
upon effectiveness of the funding agreement; 40 per cent upon submission of the first progress
report satisfactory to GCF and when over 70 per cent of the fund previously disbursed has been
committed; and 10 per cent upon submission of the completion report and final audited financial
report satisfactory to the GCF.
For PPF Simplified Financing Applications, regardless of the duration, 90 per cent of the overall
budget can be disbursed upon effectiveness of the funding agreement, with a 10 per cent final
disbursement upon submission of the completion report and final audited financial report
satisfactory to GCF. Below is an example of standard disbursement and reporting plans.
For PPF applications of 12 months or less, the standard language on disbursement given below
can be used:
– 1st Tranche: 90 per cent of total grant, which equates to USD ……… only will be disbursed upon
or after effectiveness of the Grant Agreement and also upon fulfilment of the disbursement
conditions specified in the Grant Agreement and Standard Conditions.
– Final Tranche: 10 per cent of total grant, which equates to USD ……………… only, will be
transferred upon submission of a project completion report and final Audit Report. Submission
of a completion and audit report will be furnished no later than three (3) months after the
completion of the PPF support.
For PPF application over 12 months, the standard language on disbursement given below can be
used:
– 1st Tranche: 50 per cent of total grant, which equates to USD ………only will be disbursed upon
or after effectiveness of the Grant Agreement and also upon fulfilment of the disbursement
conditions specified in the Grant Agreement and Standard Conditions.
– 2nd Tranche: 40 per cent of total grant, which equates to USD ……………… only, will be transferred
(provided that at least 70 per cent of the 1st Tranche has been incurred) upon submission
of an interim progress report and Certified Financial Report and also upon fulfilment of the
disbursement conditions specified in the Grant Agreement and Standard Conditions.
– Final Tranche: 10 per cent of total grant, which equates to USD …………… only, will be
transferred upon submission of a project completion report and final Audit Report. Submission
of a completion and audit report will be furnished no later than three (3) months after the
completion of the PPF support.
For Simplified PPF Funding Applications, the standard language on disbursement given below can
be used regardless of the duration of the PPF application:
– 1st Tranche: 90 per cent of total grant, which equates to USD ……… only will be disbursed upon
or after effectiveness of the Grant Agreement and also upon fulfilment of the disbursement
conditions specified in the Grant Agreement and Standard Conditions.
– Final Tranche: 10 per cent of total grant, which equates to USD ……………… only, will be
transferred upon submission of a project completion report and a certified financial report.
Submission of a completion and certified financial report will be furnished no later than three (3)
months after the completion of the PPF Support.
For AEs with a Framework Agreement with GCF, the following paragraph should be completed
and added in the main body text.
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 [AE’s name] on [Date].

20 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES

Part II: GCF PPF Application User’s Guide

USEFUL LINKS FOR PPF APPLICATION

• GCF project or programme concept note template

• Examples of approved PPF applications

• No-objection letter template for PPF

• PPF application template

• List of countries’ National Designated Authority (NDA) or focal point

• GCF’s Gender Mainstreaming Toolkit

• Environmental and Social Safeguards related guidance on the GCF website

• Indigenous Peoples Policy

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 21
22 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES
ANNEX I:
SAMPLE PPF BUDGET
E. BUDGET DETAILS AND DISBURSEMENT SCHEDULE

OUTPUTS AND ACTIVITIES QUANTITY UNIT COST DURATION TOTAL AMOUNT AMOUNT
(E.G. RATE) (E.G. DAYS) COST PROVIDED REQUESTED
(USD) BY AE FROM GCF
(USD) (USD)

Activity 1: Complete GCF feasibility study report (financial/institutional model)

International Consultant – Team Leader 01 USD XXX 50 USD XXX USD XXX USD XXX

National Consultant – GIS Expert 01 USD XXX 90 USD XXX USD XXX USD XXX

Professional Service – Company/firm7 01 Lum sum - USD XXX USD XXX USD XXX

Travel – Local8 5 Trips USD XXX - USD XXX USD XXX USD XXX

Travel – International9 2 Trips USD XXX - USD XXX USD XXX USD XXX

Sub-total USD XXX USD XXX

Activity 2: Complete mandatory gender and ESS studies

Local Consultant – Gender 01 USD XXX 75 USD XXX USD XXX

Local Consultant – ESS 01 USD XXX 30 USD XXX USD XXX

Workshop10 02 USD XXX 2 USD XXX USD XXX

Sub-total USD XXX

Activity 3: Development of the GCF project application

Local Consultant – Legal 01 USD XXX 12 USD XXX USD XXX

Professional Service – Company/firm11 01 Lum sum - USD XXX USD XXX USD XXX

Sub-total USD XXX USD XXX

Grand Total of Operation Costs USD XXX USD XXX

Audit Cost USD XXX

Contingency (up to 5%12) USD XXX

Other Costs, if applicable (AE fee 8.5%13) USD XXX

Grand Total USD XXX

7 Procurement of a local consulting firm for preparing pre-feasibility study

8 Local travel cost for national and international consultant for work supervision and data collection
9 Mission travel cost for international consultant
10 Workshop costs (venue, food etc.) for two events (35 participants for each event) for two days for each event @ USD XXX per event
11 Detailed tasks include writing the GCF project application and subsequent updates based on comments from various stakeholders
12 5% of GCF financed activities budget
13 This should be calculated on the total budget, excluding co-financing (i.e. Total GCF financed activities budget + PMC + Contingency).

A DETAILED GUIDE ON HOW TO PREPARE PROJECT PREPARATION FACILITY REQUESTS FOR THE GREEN CLIMATE FUND 23
NOTES
NOTES
26 GCF GUIDEBOOK SERIES | PROJECT PREPARATION FACILITY (PPF) GUIDELINES