Develop Operational Manual for Climate Resilience Fund (CRF)

United Nations Development Programme (UNDP)

Dhaka, , BD

Background

 

LoGIC is a multi-donor collaborative initiative of GoB, UNDP, UNCDF, EU and SIDA, aims to enhance the capacity of vulnerable communities, Local Government Institutions (LGI) and civil society organisations for planning and financing climate change adaptation solutions in selected climate vulnerable areas. The Local Government Division (LGD) is the implementing lead of the project in partnership with UNDP and UNCDF (for technical and management support).

Vulnerable people living in disaster-prone areas of Bangladesh have developed strategies and practices to cope with these natural events; however, they have inadequate empowerment to influence over development planning in their communities.

In order to address the vulnerabilities of Bangladesh to climate change, the project envisages the following priority areas of action:

  • Building capacities of individuals and households with information, knowledge, skills and technology to adapt to climate change as well as leadership skills to influence the local planning process.
  • Build capacity of the local NGOs, CBOs, local institutions and LGIs in climate change integrated planning, budgeting and implementation with high degree of accountability and inclusive practice.
  • Provide funds to LGIs and vulnerable households to plan and implement climate resilient activities and interventions at community and household level.
  • Generate knowledge and mobilise opinion for shaping a Local Climate Fiscal Framework and enhance readiness of both LGIs and the Local Government Division to utilise national and international climate finance in an accountable way.

These priorities will be addressed through three sets of core actions: capacity building, providing access to climate change funds and policy advocacy. During the planned support period, the proposed project is expected to produce following three key results:

Firstly, the capacity of local governments, households and other local stakeholders will be increased enabling them to enhance existing and future local development plans by integrating climate change adaptation solutions.

Secondly, a financing mechanism for local governments to implement climate change adaptation solutions will be established; the Performance Based Climate Resilient Grants will be aligned with the current system of fiscal transfers to Local Government Institutions using and improving it. It also covers the design and implementation of a Community Resilience Fund that will provide resources for community and household level climate change adaptation solutions for vulnerable households.

Thirdly, it is of upmost importance that the pilot experience gained at the community and local level is informing wider policy and practice and ultimately aim at improving and reforming the planning and financing system of the GoB for CCA at local and community level, ensuring sustainability beyond the project.

The project is designed to support roughly 200,000 most vulnerable households in 72 (seventy-two) unions in 7 (seven) districts (Kurigram, Sunamganj, Khulna, Bagerhat, Barguna, Patuakhali, and Bhola). The benefits are expected to come out of climate change adaptation actions at various levels, scaled up through local government institutions incorporating high quality accountability and participation of the most vulnerable people. This concept evolved around six strands:

  1. Building capacity, awareness and empowerment of the vulnerable people to generate plans;
  2. Development of capacity of the local government to integrate climate change into their local development plans;
  3. Building capacity and engagement of local actors and government extension workers at local level to work as driver for accountability of climate action;
  4. Provide grants to local government as additional resource to climate-proof their investment on community based adaptation work;
  5. Provide direct support to the vulnerable households to meet their adaptation needs; and
  6. Promote a local climate financing mechanism through evidence based advocacy for delivering climate finance at scale.

The outcome of this Project is:  Improved and inclusive local level planning, and increased funding for community based CCA-DRR solutions, supported by a strengthened financing mechanism. By achieving objectives and results, the project will contribute to the reduction of vulnerability and poverty in Bangladesh. The project is expected to produce following results:

  • Output 1: Strengthened capacity of vulnerable people and local stakeholders for accountable planning and financing on CCA/DRR actions for building resilience.
  • Output 2: Enhanced access of LGIs and vulnerable households to climate funds have for climate resilient infrastructures and adaptive livelihoods.
  • Output 3: Established evidence based advocacy for a mechanism for ‘financing local resilience’.

The proposed project will address gaps at a few levels based on which the results have been designed. At the local level, despite being a repository of local knowledge and information, the LGIs fall short of harnessing the potentials from the local community. The mechanism for formulation of the Local Development Plan (LDPs) has scope to engage the poor and vulnerable groups in a participatory way to reflect their climate-related needs and demands. Communities and households face difficulties in securing access to the planning and financing mechanism for sustainable development solutions. An in-depth analysis of potentials and gaps will be further detailed out in the baseline study and inception phase of the project. The overall sequential approach to implement the project strategy is presented in the figure.

Community Resilience Fund (CRF):

To utilize the strengthened capacity and implement the climate-inclusive Local Development Plans the Project will establish two types of specific financing at the Union level: a Performance-Based Climate Grant (PBCG) and a Community Resilience Fund (CRF). Project approach will establish the Community Resilience Fund to channel grants directly to households are vulnerable to adverse climate change and disaster impacts. Two grant mechanisms are complementary, whereby the Community Resilience Fund is a medium-term measure to meet livelihood and food security needs of vulnerable households that are currently not effectively reached, while efforts increase to strengthen systems for sustainable public service delivery. The CRF will predominantly support the extreme poor households to enhance their adaptive livelihood portfolios.

The Project will establish a fund to directly channel micro-grants (not more than USD 400 per household) to vulnerable households for low-regret resilience actions that are not otherwise funded, and that yield immediate benefits to household-level absorptive and adaptive capacity. The main focus will be on livelihood resilience but other context-specific wellbeing actions may be considered, based on the Risk Reduction Action Plan (RRAP). In Inception phase of the project, an operation manual for CRF will be developed by the project, which will be the basis of the implementation of CRF.

Eligible Households can apply for the CRF grants directly by expressing interest to local government representatives. If the households are eligible as per CRF criteria, the sub-contracted NGO/institution will help the household to develop a Household Level Plan of adaptation. This household plan will be treated as a micro-proposal to the LGI for CRF. The LGI will form a local level committee to screen proposals against the RRAP for relevance and to ensure that overall household-level adaptation aligns with and complements the climate-inclusive LDP. The project will support the LGI to develop the necessary support mechanism by sub-contracted NGOs to assist households in developing the micro-grant proposals based on the RRAP, and to work with LGI staff to review and approve the micro-grant proposals. This process will build household and LGI capacity to apply for CRF funds independently after the project ends.

CRF grants will be provided directly to selected households using an electronic cash transfer mechanism based on the unique personal and mobile phone identity of the head of household (grant recipient). This mechanism has been widely used by humanitarian community work and by the UN agencies in Bangladesh with demonstrated improvements in cost efficiency and security compared to traditional transfer means. The project will use public procurement to identify the company that will manage the transfer system.

Objective:

To develop an operational manual for Community Resilience Fund (CRF) for the LoGIC project.


POSITION TYPE

ORGANIZATION TYPE

EXPERIENCE-LEVEL

DEGREE REQUIRED