The Project Preparation Facility (PPF) under GCF has been set up to support Accredited Entities (AEs) in project and programme preparation. It is especially targeted to support direct access entities or NIEs, and micro-to-small size category projects.
For the initial phase of the PPF, a total of USD 40 million has been allocated by GCF, with each request subject to a cap of USD 1.5 million.
Once approved, support is provided in the form of grants and repayable grants, while equity may be considered for private sector projects. Funding proposals developed with the PPF should be submitted to the GCF Board within two years of the approval of a PPF request.
There are a number of different phases in project preparation. Early stages include project identification, concept development and establishing the enabling environment while to mid- and late-stage processes include project due diligence and project structuring. Each phase has different needs and therefore it is important to review the main outstanding requirements of project development as well as to assess the type of support the project/programme will require.
PPF support generally covers the following activities:
- Pre-feasibility and feasibility studies, as well as project design
- Environmental, social and gender studies
- Risk assessments
- Identification of programme/project-level indicators
- Pre-contract services, including the revision of tender documents
- Advisory services and/or other services to financially structure proposed activity
- Other project preparation activities, where necessary, provided that sufficient justification is available
The PPF application must clearly state how the underlying project aligns with the country’s national priorities and ensures full country ownership. It is therefore highly recommended that the accredited entities consult with the respective national designated authority (NDA) or focal point on the project or programme concept at an early stage.