Document Summary


Decision B.12/28

Having considered the recommendation of the Ethics and Finance Committee, the Board decided that:
(a) Project Formulation Grants (PFGs) will only be made available for projects submitted through NIEs. The Board would continue reviewing the question of PFGs for projects submitted through MIEs and would solicit comments from members and alternate members by February 14, 2011; the views would be compiled by the secretariat for presentation to the Board at its March 2011 meeting;
(b) If a country required a project formulation grant, a request should be made at the same time as the submission of a project concept to the secretariat. The secretariat will review and forward it to the PPRC for a final recommendation to the Board. A PFG could only be awarded when a project concept was presented and endorsed;  
(c) A PFG form, reproduced in Annex V, should be submitted;
(d) Only activities related to country costs would be eligible for PFG funding; 
(e) A flat rate of up to US$30,000 shall be provided, inclusive of the management fee, which cannot exceed 8.5 per cent of the grant amount. The flat fee would be reviewed by the Board at its thirteenth and all subsequent meetings;
(f) If the final project document is rejected, any unused funds shall be returned to the Adaptation Fund Trust Fund; 
(g) Once a project/programme formulation grant is disbursed, a fully developed project document should come to the Board for approval within 12 months. No additional grants for project preparation can be received by a country until the fully developed project/programme document has been submitted to the Board; and
(h) The Trustee was instructed to remove the set-aside of US$100,000 for project preparation that had been decided at the June 2010 meeting, as project preparation would be approved on a project-by-project basis.



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