Local Climate Adaptive Living Facility

Report Cover Image
Evaluation Plan:
2016-2017, UNCDF
Evaluation Type:
Others
Planned End Date:
01/2017
Completion Date:
03/2018
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
103,376

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Download document ToR_LoCAL_Mid-Term evaluation.pdf tor English 1014.42 KB Posted 122
Download document Baastel_UNCDF_MTE_LoCAL_Final_29th_March_2018.pdf report English 612.24 KB Posted 202
Download document Baastel_UNCDF_MTE_LoCAL_Final_29th_March_2018_Annexes final.pdf related-document English 1940.82 KB Posted 307
Title Local Climate Adaptive Living Facility
Atlas Project Number:
Evaluation Plan: 2016-2017, UNCDF
Evaluation Type: Others
Status: Completed
Completion Date: 03/2018
Planned End Date: 01/2017
Management Response: Yes
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
Evaluation Budget(US $): 103,376
Source of Funding:
Evaluation Expenditure(US $): 103,376
Joint Programme: No
Mandatory Evaluation: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Alain Lafontaine Team Leader
Bishwa Paudyal Team Member
Jacquelin Ligot,Jon Garcia Team Member,Team Member ,
GEF Evaluation: No
Key Stakeholders:
Countries: GLOBAL
Lessons
Findings
Recommendations
1
2

Evaluation Recommendation or Issue 1: The LoCAL Board and the programme management should further strengthen its recent efforts to explore the possibility of expanding the portfolio in urban and coastal areas, given their increasing priorities for LDCs with respect to CCA.

3

Evaluation Recommendation or Issue 2: The LoCAL Board and programme management teams at global and country levels should make more efforts to engage international and national partners and the private sector.

4

Evaluation Recommendation or Issue 3: The programme management should address the existing management bottlenecks identified in this evaluation report, increasing human capacity at the global level (for instance, with an M&E officer, a gender officer and additional (sub)regional officers); advocating for more national staff in some countries as part of the scaling up efforts; increasing and regularizing UNCDF technical support, establishing more formal communication channels; opening the consultant roster, especially for tasks that require independence, such as evaluations; increasing funds for monitoring in the field; and exploring the possibility of engaging more with UNVs (this is not a substitute for all the former). This should be done with the understanding that a response to the majority of these bottlenecks should be provided through future programmatic efforts around capacity development rather than considered as management costs.

5

Evaluation Recommendation or Issue 4: The programme management at global and country levels have to significantly increase efforts in M&E and improve their M&E, data management and reporting systems. The priority should be to conclude the WRI work urgently and to ensure that the new approach and tools provided by the Institute are fully used at the global and country levels.

6

Evaluation Recommendation or Issue 5: The LoCAL Board and programme management at global and local levels should increase efforts to significantly strengthen the climate change dimension of the programme.

7

Evaluation Recommendation or Issue 6: Programme management at global and national levels should favour integrated, comprehensive approaches that address multiple building blocks and dimensions of resilience, working more on the basis of complementarities and synergies with other programmes.

8

Evaluation Recommendation or Issue 7: Programme management at the global level should strengthen the lesson learning efforts throughout the programme.

1. Recommendation:
Management Response: [Added: 2018/05/25]

Overall comments: Management would like to thank the evaluation team for a thoughtful, insightful and useful evaluation exercise. The evaluators fully assimilated the purpose of the LoCAL mechanism and provided valuable inputs to improve it. LoCAL is designed on the premise that local governments are responsible for the myriad of small and medium sized investments that build resilience to climate change, yet local governments need access to climate finance to fund the incremental cost of adaptation and increasing resilience. The evaluation team acknowledge that LoCAL has successfully established itself as a unique and efficient mechanism for local governments to access climate finance through existing intergovernmental transfer mechanisms. Yet the evaluation team observe that further progress will be accelerated if LoCAL can strengthen in four areas: Firstly, deepen and improve the scientific and technical aspects of the mechanism to increase the additionality and measurability of LoCAL investments to climate change – including more institutional links with UNFCCC, GCF and other relevant bodies; Secondly, broaden the scope of LoCAL to include coastal areas and urban local governments, and other dimensions of resilience without weakening its mechanism based approach that enables replicability and scale up; Thirdly, develop LoCAL’s engagement with the private sector – as foreseen in the programme document – to include ways that the LoCAL mechanism can attract private finance towards local resilience whilst measuring impact by the same standards and maintaining the focus on local government planning processes; Fourthly, LoCAL is encouraged by the evaluation team to review staffing and structure to ensure that it is fit for purpose as a global mechanism and able to absorb expansion. These four broad points are covered by the seven detailed recommendations below. UNCDF management broadly accepts the results of the evaluation, with some caveats as indicated in the detailed response, and will take necessary measures to strengthen LoCAL.

Key Actions:

2. Recommendation:

Evaluation Recommendation or Issue 1: The LoCAL Board and the programme management should further strengthen its recent efforts to explore the possibility of expanding the portfolio in urban and coastal areas, given their increasing priorities for LDCs with respect to CCA.

Management Response: [Added: 2018/05/25]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
1.1. LoCAL will be operationally connected to the UNCDF Municipal Investment Finance Programme (MIF). LoCAL and MIF will jointly develop an urban climate resilience component that modifies the Performance Based Climate Resilient Grant (PBCRG) through Intergovernmental Fiscal Transfers (IGFT) methodology in accordance with urban local government finance. IGFT comprise a smaller percentage of urban local government revenue and urban climate resilient investments are likely to be more costly than the rural investments hitherto supported by LoCAL. Therefore urban LoCAL will explore how the PBCRG can be used as seed capital for PPPs and other forms of blended finance. This work will begin in Bangladesh and take advantage of the capital investment plans, credit ratings and impact assessment methodology that UNCDF has already supported for its EcoBond programme, as part of MIF.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
MIF manager and LoCAL manager 2019/03 Overdue-Initiated UNCDF LoCAL is currently consolidating the approach documented into the Quadruple Check Methodology, to be applied in urban areas and for private finance. A project for the expansion of LoCAL to four secondary cities of Benin has been identified and submitted to a call for proposals. Another candidate country is Nepal. The lack of financial resource to start up to design of the pilot project has been one of challenges. Both of LoCAL and MIF team are working together to mobilize resources with a view to start up project expansion to urban areas into targeted LoCAL countries. The current funding under LoCAL is strictly tight to basic Performance Based Climate Resilient Grant (PBCRG), while to start the urban LoCAL more flexible budget is needed. During 2018 discussions were held with a development partner regarding seed funding for “Urban Local” and these resources will be applied during 2019, subject to their availability. During COP 24 in Poland UNCDF began active collaboration with AfD and KfW about collaboration on an urban quadruple check methodology. Work has begun in Nepal on assessing candidate cities and on financing through the Town Development Fund. A UNCDF loan is being extended to the TDF in order to broaden the scope of its operations. UNCDF will now discuss with TDF lending for climate resilient infrastructure identified through the quadruple check. History
1.2 LoCAL will adapt its investment menu (IM) methodology to include greater recognition of the environmental ecosystem and ensure that expert input is provided to the IMs for each ecosystem from appropriate agencies. This includes coastal regions, high mountain areas and other specific ecosystems with particular climate adaptive needs. Partners could include ICIMOD for mountain areas (Bhutan, Nepal) and entities like SPREP for coastal protection in the Pacific (Vanuatu).
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL manager 2019/03 Overdue-Initiated Series of activities to improve the IM has been started as part of the the phase I or Phase 2 design in LoCAL countries such Gambia ( Phase I);Mozambique (phase II). The process of the development of the Country Scientific Report in Ghana with the support from KEI and local expert has improved in its methodology to ensure the a better quality of the data on CC risk and hazard at the local level which will improve the investment menu. UNCDF has signed a partnership agreement with the Commonland Foundation and will seek to partner with other ecosystem based technical specialists. History
3. Recommendation:

Evaluation Recommendation or Issue 2: The LoCAL Board and programme management teams at global and country levels should make more efforts to engage international and national partners and the private sector.

Management Response: [Added: 2018/05/25]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
2.1. LoCAL will capitalize on its coverage of 13 countries and explore deeper institutional partnerships with the objective of transforming itself into a sustainable global mechanism that applies national IGFT systems to address climate change adaptation in developing countries. Achieving this will also require addressing recommendation 5. The strategy will include seeking a more formal and structured recognition of LoCAL as part of the international climate finance architecture (UNFCCC, GCF etc), and broadening LoCALs partnerships for implementation. It may also include seeking an institution to co-host the mechanism with UNCDF and broadening its governance. In time, the role of the Secretariat may transform itself into a quality assurance and standard compliance role to national entities are responsible for implementing LoCAL in Phase III. The Secretariat would retain the role of seeding new countries through Phase I and II. This strategy would require Phase III as the “light at the end of the tunnel” and a more formal highlighting of the role of IGFT in implementing the Paris Agreement would accelerate this transformation.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL manager 2019/01 Completed LoCAL board meeting has been conducted in May 2018. The LoCAL partnership strategy has been presented and discussed with the board members. The draft of the partnership strategy will be developed for the approval in the next board meeting. The 2019 board meeting is scheduled to take place at the margins of the 2019 NAP Expo in Korea. Some non LoCAL countries that are using IGFT for dedicated climate finance funding will be invited. History
2.2. Private sector: LoCAL will become integrated into the Local Development Finance “dual key” system. Currently under the existing LoCAL mechanism the planning process does sometimes contain activities appropriate for private sector investment. These include the introduction of climate resilient crops, the improvement of storage facilities and the private management and supply of drinking water. Yet, correctly, the PGCRG are unable to directly finance these activities and support is limited to public sector de-risking such as the provision of access roads. Integrating LoCAL into the “dual key” system will remove this limitation and enable the LoCAL mechanism support private sector and PPP sponsoring of these investments by making available the deal structuring and private financing support of UNCDF’s Local Finance Initiative without compromising the public sector nature of the PBCRG. The “dual key” requires a verifiable impact key (provided by LoCAL on the basis of CCA criteria) and a clear bankability key (provided by an LFI investment officer following due diligence). The award of the two “keys” at a Local Development Finance investment committee enable the transaction to go forward. This approach, together with an improvement in LoCAL’s impact measurement and with stronger institutional linkages to climate finance, will provide a method for attracting private sector investment to measurable local climate adaptation. LoCAL has already explored synergies with the African Development Bank’s initiative on private sector climate adaptation. The market will take these innovations to scale once business models are demonstrated. LoCAL will negotiate with each participating country the use of PBCRG funds to support the transaction technical assistance (a flat rate fee) from the LFI team to structure the deal and secure bank financing; Secondly, where appropriate PBCRG will be eligible for grant seed capital support to private sector investments (or PPPs) that meet a specific adaptation target if the following three conditions are met: + a transparent and competitive RFP has been applied by the local government in the selection of the private sector partner and the fund have been managed according to standard IGFT procedures for development investments; + the LFI team specify that seed capital is required for a bankable transaction; + the LoCAL secretariat and the national partners specify that the transaction has a demonstration effect and there is evidence that the other actors will replicate the transaction type – for example a first mover in adopting a climate resilient crop will inspire other farmers.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL manager and Local Development Senior Investment Manager 2019/12 Initiated Partially implemented: The LoCAL Board meeting in May 2017 discussed and approved the the private sector approach described in this management response. By December 2018 LoCAL will have produced a screening methodology and have negotiate the start up of the private sector pipeline in at least three LoCAL countries of which at least one country is in phase II or phase III. At least one country will be in Africa and at least one in Asia. This will also require negotiations with government counterparts and phase II founders. By December 2019 the selected countries will have operated one planning cycle that includes the private sector methodology and the pipeline of investments will be underway, as a model for how local governments can attract private adaptation finance. Whilst these investments are targeted at the domestic banking sector, UNCDF is considering launching a SDG fund and a Municipal Fund that may be able to provide co-financing. LoCAL verification mechanism has been adjusted (quadruple check). The screening methodology for private sector investment will be developed. Ad the same time, a potemtial project has been identified in some countries for example the ongoing activities in Cambodia as below: A new initiative with K-Water will integrate the blended finance in the project design at the beginning for the project implementation. Activity of the project plan to do so by 1. Provide Seed Capital Grant to invest the water supply infrastructure including improving the water station and expand access to the extended rural nearby community 2. Provide technical support and build capacity to the commune /district in area of water management 3.Engage local government to support the commune in area of water management 4.Investing in sustainable growth by establishing a financial vehicle for the project to be able to sustaining on their own for the long term implementation. This can be done by bringing in the blended finance and using the specialist water management operator and set up an SPV for the water supply management and service for this community. This is currently being designed and proposal will be submitted to the ODA in Q2/2019, and will be pilot in Cambodia (2020) and later the model will be scaled up in other LoCAL country. The structure of how the blended of the finance will be, role of the LGs will be varied from country to country. History
4. Recommendation:

Evaluation Recommendation or Issue 3: The programme management should address the existing management bottlenecks identified in this evaluation report, increasing human capacity at the global level (for instance, with an M&E officer, a gender officer and additional (sub)regional officers); advocating for more national staff in some countries as part of the scaling up efforts; increasing and regularizing UNCDF technical support, establishing more formal communication channels; opening the consultant roster, especially for tasks that require independence, such as evaluations; increasing funds for monitoring in the field; and exploring the possibility of engaging more with UNVs (this is not a substitute for all the former). This should be done with the understanding that a response to the majority of these bottlenecks should be provided through future programmatic efforts around capacity development rather than considered as management costs.

Management Response: [Added: 2018/05/25]

 Agreed in principle – implementation will require changes to the LoCAL funding architecture

Key Actions:

Key Action Responsible DueDate Status Comments Documents
3.1 The evaluation report observes that LoCAL is efficiently funded in comparison with similar programmes such as the GEF Small Grants Programme. Whilst this has been considered a virtue, the evaluation report highlights the limitations of a Secretariat that is too lean and unable to provide the required support to implementing countries. However the current funding architecture emphasizes Phase II scale ups without concomitant support to the Secretariat – with the result that one of UNCDF’s biggest programmes is unable to fully pay for its staffing structure. The new funding strategy will embed financial support for the secretariat in Phase II and Phase III funding to secure long term technical support to implementing countries, including the APA. It will augment this by seeking an appropriate long term partner to co-host LoCAL with UNCDF as a stable mechanism for climate resilience through IGFT and PBCRG.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL Manager 2019/03 Overdue-Initiated Initiated through the adoption of the LoCAL mechanism at the UNFCCC National Adaptation Planning Manual. Board meeting in May 2018 will review LoCAL partnership strategy and Secretariat structure based on the Mid-Term Evaluation. Results of implementing partnership strategy to be approved at Board meeting in 2019. The LoCAL partneship strategy has been presented and discussed at the 2018 board meeting. The LoCAL secretariat structure has been adjusted based on the LoCAL Midterm Review and LoCAL Programme extension document. The LoCAL Guidelines have been officially submitted to UNFCCC NAP History
3.2 Within the context of response 3.1 a recruitment strategy and new Secretariat structure will be prepared.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL Manager 2018/12 Completed The new Secretariat structure has been approved History
5. Recommendation:

Evaluation Recommendation or Issue 4: The programme management at global and country levels have to significantly increase efforts in M&E and improve their M&E, data management and reporting systems. The priority should be to conclude the WRI work urgently and to ensure that the new approach and tools provided by the Institute are fully used at the global and country levels.

Management Response: [Added: 2018/05/25]

Agreed in principle – further partnerships will be required for this purpose

Key Actions:

Key Action Responsible DueDate Status Comments Documents
4.1 This evaluation recommendation is linked to recommendation 3 and 5. The consolidation of UNCDF’s internal capacity in the LRP and a recent re-purposing of the Local Development Finance work at UNCDF will provide an immediate boost to M&E capacity. Three additional (existing) staff will be assigned to support the LoCAL M&E effort in the short term, including to improve the systemic quality of M&E within the mechanism.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL manager and Local Development Finance Director 2018/12 Completed Complete but some staff has resigned a replacement will be filled in 2019 History
4.2 Quality of process against defined benchmarks is the most appropriate and effective way to empirically measure climate resilience. For LoCAL this means verifying that that the vulnerability assessment (VRA) accurately captures the effects of likely climate change as the first benchmark, verifying that the IM is an adequate response to the VRA as the second benchmark, and during the APA checking the application of the PBCRG towards the investment menu, including value for money criteria. The WRI tool will contribute to LoCAL improving its M&E system. It will be peer reviewed by a wider range of partners, amended and implemented.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL Manager 2019/03 Overdue-Initiated By end 2018 produce revised M&E methodology based on actions 4.1 and 4.2 in time for 2019 local government planning cycle in the LoCAL implementing countries. Implementation to be linked to strategy for sustainable technical support. WRI tool Assessing Climate Change Adaptation Framework (ACCAF): A Guiding framework for incorporating climate change adaptation monitoring and evaluation into UNCDF’s LoCAL program has been finalized. As the pilot, the tools will be implemented in Bhutan, Cambodia and Lesotho. History
6. Recommendation:

Evaluation Recommendation or Issue 5: The LoCAL Board and programme management at global and local levels should increase efforts to significantly strengthen the climate change dimension of the programme.

Management Response: [Added: 2018/05/25] [Last Updated: 2018/05/25]

The programme is all about climate change. Management agrees to improve additionality measurement and institutional linkages

Key Actions:

Key Action Responsible DueDate Status Comments Documents
5.1 The implementation of this recommendation is through action 4.1 and 4.2 above. Improving the M&E and additionality of the mechanism will clearly identify the effectivenss of IGFT and PBCRG as a means of addressing climate change.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL Manager 2019/03 Overdue-Initiated See 4.1 and 4.2 History
5.2 The implemention of this recommendation is through action 2.1 above. The evaluation team recognize the progress made in establishing the LoCAL mechanism as part of the architecture of climate adaptation.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL Manager 2019/03 Overdue-Initiated see 2.1 History
7. Recommendation:

Evaluation Recommendation or Issue 6: Programme management at global and national levels should favour integrated, comprehensive approaches that address multiple building blocks and dimensions of resilience, working more on the basis of complementarities and synergies with other programmes.

Management Response: [Added: 2018/05/25]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
6.1 Immediately, UNCDF has consolidated its Finance for Food programme and LoCAL mechanism into a broader Local Resilience Programme (LRP). This will enable the LoCAL Secretariat to directly benefit from the technical expertise of the UNCDF Finance 4 Food (F4F) initiative (which is based on rural local government public and private investment in food security). At the level of the local government climate resilience is closely related to food security and agriculture. Work has begun on Land Degradation Neutrality and with the UNCCD. An MOU has been signed with Commonland Foundation with a view towards developing projects for possible co-financing with the recently created Land Degradation Neutrality fund. An initial investment has been identified in Tanzania. Collaboration has also begun with the African Development Bank on the Desert to Power initiative in Niger and on the Adaptation Benefit proposal for private sector adaptation financing.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
UNCDF Local Development Finance Director 2019/03 Overdue-Initiated Completed – the LRP programme has been created to include: 1) the LoCAL mechanism and its Secretariat, 2) other UNCDF support to environmental resilience through local governments and the private sector, including the F4F programme and the collaboration with Commonland and with the African Development Bank. 3) Partnerships and synergies with actors working on other dimensions of resilience. A new position, LRP Manager, has been created. This function will oversee the LoCAL mechanism to secure its long term sustainability. The function will also build UNCDF’s engagement with other aspects of resilience through local governments and local economic development. The LRP umbrella programme has been created, the LRP Manager position has been approved. Currently under the recruitment process. History
8. Recommendation:

Evaluation Recommendation or Issue 7: Programme management at the global level should strengthen the lesson learning efforts throughout the programme.

Management Response: [Added: 2018/05/25] [Last Updated: 2018/05/25]

Agreed

Key Actions:

Key Action Responsible DueDate Status Comments Documents
7.1 LoCAL secretariat to publish and socialize lessons learnt including through contributions to UNCDF publications and publications by other relevant entities.
[Added: 2018/05/25] [Last Updated: 2018/12/18]
LoCAL manager 2018/12 Completed By end 2018 LoCAL lessons learnt publication, contribution to NAP manual and contribution to IGFT book to be completed The LoCAL guide line “ Financing Local Adaptation to Climate Change” has been approved. The guideline will be presented as the UNCCC NAP supporting material to the UNFCCC NAP – LEG. The guideline will contribute to the finalization of the IGFT books. LoCAL report on NDC “ Localizing NDCs” has been approved and published. History

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