Having considered the comments and recommendations of the Ethics and Finance Committee, the Adaptation Fund Board decided to:

(a) Grant a final extension, in accordance with the request of the Government of Eritrea, of six months to 17 October 2012 to UNDP for the startup of the proposal “Climate change adaptation programme in water and agriculture in Anseba region in Eritrea,” as contained in Annex VIII to the present report;

(b) Request UNDP and the Designated Authority (DA) of Eritrea to present a detailed report to the 10th meeting of the EFC including an explanation on the need to modify the project document and progress made by the government of Eritrea in the long-term national development plan in accordance with the Operational Policy and Guidelines for parties to access resources from the Adaptation Fund, paragraph 65. A decision will be made based on the explanation provided;

(c) Inform UNDP and the DA of Eritrea that if implementation of the project has not commenced by the time of the 19th Adaptation Fund Board meeting in October 2012, the project could be cancelled; and

(d) Request the secretariat to provide information, when available, regarding the level of implementation of all approved projects, and when necessary, emphasize to the concerned parties the need to adhere to the Adaptation Fund Operational Policies and Guidelines with regards to timelines for project implementation, based on date of approval by the Board.