Document Summary
The project execution cost (B), or project management costs, includes the main items supported by the Adaptation Fund for project management including consultant services, travel and office facilities, etc covering the direct costs for administration of the day-to day activities of projects. Specific costs include: Staffing costs, and project related activity expenditures (Monitoring and evaluation costs; Costs related to drafting progress reports and financial reports; Consultation with project stakeholders (meetings, workshops); Communication, Travel).
This cost is capped at 9.5% of the total project/programme cost (A+B).
The implementing entity fee (C) is the fee requested by Implementing Entities for project cycle management services including project supervision. The fee covers: Corporate activities fees related to engagement with donor (Policy support, Portfolio management, Reporting, Outreach and knowledge sharing) and Project cycle management fees (Project preparation and management oversight including financial management and quality insurance, Implementation reports supervision, and Project completion and evaluation oversight).
The total project/programme cost is the cost of all project activities/components and the project execution cost (A+B).
The amount of funding requested, or the grant amount excludes any co-financing and includes the total project/programme cost along with the implementing entity fee (A+B+C).
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Table 1: Harmonization of costs and fees (regular projects) |
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| Cost item | Covered through Implementing Entity Fees | Covered through Execution costs | Not covered through
AF grant |
| Staff | IE staff salary associated with the project oversight | Salary of project officers and
M&E officer |
Government-seconded staff |
| Monitoring and
Evaluation |
Supervision/development of the following:
· Baseline Data Report (BDR) · Annual project performance reports (PPRs) · Mid-term evaluation (MTE) · Final evaluation (FE) · Final project completion report · ESMP monitoring · Gender monitoring |
Supporting/development of the following:
· Baseline Data Report (BDR) · Annual project performance reports (PPRs) · Final project completion report · ESMP Monitoring · Gender monitoring · Grievance mechanism · Project financial reports |
Independent reviews or evaluations of the projects and programmes by the AF Board |
| Travel | Travel related to project implementation including:
· Project supervision missions · Steering committee |
Travel related to project execution including:
· Project supervision missions · Steering committee meetings |
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| Audit | All audit related costs (verifying compliance as well as cost of audit) | ||
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Table 2: Harmonization of costs and fees (LLA and Innovation) |
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| Cost item | Covered through Implementing Entity Fees | Covered through Execution costs[1] | Covered through Project Components | Not covered through AF grant | |
| Staff | IE staff salary associated with the project oversight | Salary of project officers and M&E officer | Salary of project staff to manage specific components[2]
Salary of staff/consultant to deliver technical assistance |
Government-seconded staff | |
| Monitoring and
Evaluation |
Supervision/development of the following:
· Baseline Data Report (BDR) · Annual project performance reports (PPRs) · Mid-term evaluation (MTE) · Final evaluation (FE) · Final project completion report · ESMP monitoring · Gender monitoring |
Supporting/development of the following:
· Baseline Data Report (BDR) · Annual project performance reports (PPRs) · Final project completion report · ESMP Monitoring · Gender monitoring · Grievance mechanism · Project financial reports |
Some of the below items could be budgeted into the project cost:
· Baseline Data Report (BDR) · Annual project performance reports (PPRs) · Final project completion report · ESMP Monitoring · Gender monitoring · Grievance mechanism |
Independent reviews or evaluations of the projects and programmes by the AF Board | |
| Travel | Travel related to project implementation including:
· Project supervision missions · Steering committee |
Travel related to project execution including:
· Project supervision missions · Steering committee meetings |
Travel related to project execution (partial) | ||
| Audit | All audit related costs (verifying compliance as well as cost of audit) | ||||
[1] In exceptional cases where an Implementing Entity (IE) also carries out execution services, the IE must: Justify why it is best positioned to perform those execution services instead of another national or subnational entity; Limit its execution costs to 1.5% of the portion of the project it executes; and Provide strong justification if requesting execution costs above the 1.5% cap, which may be considered only on a case-by-case basis (Decision B.38/42).
[2] For LLA and innovation projects which may require additional investments to support execution, certain activities may be eligible to be charged under a project component when the EE or EEs in those cases is/are not yet identified. The IE would be required to provide justification as part of its proposal submission if requesting costs beyond the cap on a case-by-case basis (Decision B.41/11).
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Table 3: Cost and fee caps by funding window |
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| Window / Project | Project Cap (USD) | Execution Costs Cap | IE Fee Cap |
| Regular – Single Country | $25 million | 9.5% of (A+B); 1.5% of part of (A+B) if IE is executing | 8.5% of (A+B) |
| Regular – Regional | $30 million | 10% of (A+B); 1.5% of part of (A+B) if IE is executing | 10% of (A+B) |
| Locally Led Adaptation – Regional | $30 million | 10% of (A+B); 1.5% of part of (A+B) if IE is executing | 10% of (A+B) |
| Locally Led Adaptation Single country (LLA) | $5 million | 9.5% of (A+B); 1.5% of part of (A+B) if IE is executing | 8.5% of (A+B) |
| Innovation – Single Country | $5 million | 9.5% of (A+B); 1.5% of part of (A+B) if IE is executing | 8.5% of (A+B) |
| Innovation – Regional | $5 million | 10% of (A+B); 1.5% of part of (A+B) if IE is executing | 10% of (A+B) |
| Small Innovation Grant | $250,000 | 9.5% of (A+B); 1.5% of part of (A+B) if IE is executing | 8.5% of (A+B) |
| Bundled innovation and learning grant | 750, 000 | 9.5% of (A+B); 1.5% of part of (A+B) if IE is executing | 8.5% of (A+B) |
| Learning Grant | $500,000 | N/A | 8.5% of (A+B) |
| Scale-Up Grant | $100,000 | 9.5% of (A+B); 1.5% of part of (A+B) if IE is executing | 8.5% of (A+B) |