GCF NAP Project on Building Flood Resilience Capacities in Rwanda Training on Concept Note Development and Financial Modelling

Kigali, Rwanda 7 December , Rwanda is undergoing rapid urbanization as one of its main economic growth and transformation drivers, while risks from climate change continue to pose a challenge. Although there have been past and on-going interventions in building climate resilience and adaptation, limited, if any, activities focus on interventions related to urban areas and the built environment. It is in the above context that the National Designated Authority (NDA) i.e., Rwanda Environment Management Authority (REMA) and the Accredited Entity (AE) i.e., Ministry of Environment (MoE) of Rwanda to the Green Climate Fund (GCF) in July 2018 nominated the Global Green Growth Institute (GGGI) to serve as the Delivery Partner (DP) in developing a proposal on National Adaptation Readiness and Preparatory Support for Building Flood Resilience Capacity in Rwanda (hereinafter referred to GCF NAP Readiness). The GCF NAP Readiness proposal development went through a robust consultative process through engagement of stakeholders both at the sector and ministry levels.

The GCF NAP Readiness has the following outcomes:
Outcome 1: Capacity and coordination strengthened for main institutions to effectively mitigate floods and prevent landslides.
Outcome 2: Appropriate technical studies identified and prioritized, climate finance strategies and project pipeline strengthened for effective storm water and landslide management in Kigali City and urban areas experiencing rapid growth and highly vulnerable to floods and landslides outside Kigali city.
Outcome 3: Knowledge management, information sharing, and communications strengthened to effectively mitigate floods and prevent landslides.
Outcome 4: Mechanisms for Reporting, Monitoring and Review of adaptation and resilience planning progress developed to gather lessons and integrate them into future iterations of the identified flood mitigation and landslide management planning process.
Subsequent to the official launch of the Project and 1st Project Steering Committee Meeting which took place on 18th June 2020, several activities have concurrently taken place-the technical assessment of the selected sites, a capacity needs assessment, mapping and elaboration of stakeholder engagement strategies for both the development of the Concept Notes as well as the Gender Assessment.

It is considering this that as a critical component of achieving Outcome 2 on climate finance strategies and project pipeline strengthened for effective storm water and landslide management in Kigali City and urban areas a training on the elaboration of concept notes and financial models will be carried out. During the design stage, identified solutions were elaborated and refined through consultations with potential stakeholders. Furthermore, the role of public intervention and models for private sector leveraging were explored.

The training will be centred around GCF Concept Notes and initial models which can be used for fundraising. The objectives of the training workshop included:

Drawing from the developed Concept Notes, provide the participants with basic knowledge
on the GCF funding criteria:
• Impact Potential
• Paradigm shift
• Sustainable development
• Needs of the recipient.
• Country ownership
• Efficiency and effectiveness

The workshop facilitator Mr Mads Knudsen ,the Private Sector Specialist started by explaining the activities that have been done under GCP NAP (hydrology, impact assessment, safeguard analysis, GESI) and then requested participants to discuss their experience with GCF Concept Notes and what are the key lessons learned from previous GCF Concept Notes in Rwanda. Mr Edward Kyazze Director General-Urbanization, Housing and Human Settlement , MININFRA and Nathalie Mutalikanwa Climate Finance Specialist, FONERWA shared their experience in GCF concept note they have participated in before stating that it is necessary to know what GCF requirements before starting to develop Concept note and secondly make it clear who are stakeholders who will be engaged. Mads also shared his experience in GCF concept notes under GCF NAP adding that Concept notes have been developed for each site in the NAP  project, and  said that instead of doing five concept notes they can be combined to have one big project.

The Private Sector Specialist continued by asking participants what they know about GCF and its purpose, with responses from the participants that  GCF Responds to climate change by investing in low-emission and climate-resilient development ; GCF focuses on mitigation and adaptation and Rwanda is focusing on adaptation

It was mentioned that participants need to consider the following factors  from the start when elaborating a project:

1. In Rwanda accreditation allows for projects up to $50 million
2. About 50% co-financing: go for GCF funding of $20-25 million
3. No direct funding to private sector players. Private sector can be suppliers or beneficiaries only
4. Only Category B safeguard projects allowed in Rwanda – for example, no involuntary relocations and not significantly negative environmental impacts allowed
5. For adaptation projects – cost per direct beneficiary should be as low as possible. I.e. select projects that benefits many people

Abias Philippe Mumuhire Project Coordinator RUDP, City of Kigali asked if government of Rwanda has ever had funds from GCF for project implementation and the answer was yes, Green Gicumbi, Green City Kigali given as examples.

The facilitator then lead the discussion to  Funding Criteria’s. Participants were asked to write down what they think about 6 funding criteria’s focusing on:
1. Impact Potential
2. Paradigm shift
3. Sustainable Development
4. Needs of the recipients
5. Country ownership
6. Efficiency and Effectiveness

Country ownership was of the criteria’s that had in depth  discussion and some participants were sharing their experience with community engagement and the project coordinator of RUDP from the City of Kigali shared his experience with community engagement in Kigali upgrading and said that when people are engaged from the start there is a essence of ownership. Liliane Mupende ,GCF NAP coordinator reminded participants that in Rwanda we have clear policies and strategic plans(NST1, NDC, GGCRS,) which are very  good guidance documents.

The facilitator then started elaborating on CBA for flood and landslide management projects by explaining the – 8 steps in feasibility study:
– Why do STEM people and Economists usually disagree?
– Usage of CBA in Rwanda
– CBA-vs Cost Effectiveness Assessment
– CBA Component
– NPV, IRR and time discounting
– Calculating Annual Economic flows for flood/landslide mitigation
– Economic and damage classification

Participants shared their experience with usage of CBA in their institutions that they have PIM (Project Implementation Manual) they have to fill in and then MINECOFIC insert it in PIC. Mads also illustrated case studies and some questions were raised to understand a well proposed investment. To end the day participants were put into groups  where the facilitator shared Bishenyi CBA to all participants to answer questions about IRR and NPV. The GGGI team explained the next steps and way forward for 2022 with further stakeholder engagement activities , training and  virtual discussion with GCF team from their Head quarters.