Representatives from Haiti, World Bank, and Inter-American Development Bank celebrate endorsement of Haiti's $25 million climate resilience program under PPCR. (Photo: CIF AU)
WASHINGTON, D.C. May 6, 2013 — The US$7.6 billion Climate Investment Funds (CIF) wrapped up a week of meetings on Friday, May 3 with endorsement of Haiti’s $25 million program for climate resilience under the Pilot Program for Climate Resilience (PPCR), approval of five revised investment plans for the Clean Technology Fund (CTF), and agreements on operational improvements to speed project implementation and enhance private sector engagement.
Under the CTF, Colombia, Kazakhstan, Mexico, Ukraine, and the Middle East and North Africa Region (MENA) gained approval for revisions to their original CTF investment plans, aligning them with evolving national and regional circumstances, as well as early lessons learned from the CTF and other CIF programs. In each investment plan, previously approved CTF financing was reallocated to focus on priority projects that analysis shows will benefit most from CTF support.
The MENA region’s original plan projected a total of 895 MW of concentrated solar power (CSP) across Algeria, Egypt, Jordan, Morocco, and Tunisia, but with the revision, the region now expects to achieve 1.12 GW, making it the most ambitious CSP program in the world. The revised plan provides a realignment of projects in the pipeline based on each country’s reassessed needs and focuses on well-performing projects, such as the first phase of Morocco’s Ouarzazate CSP complex.
“CTF financing has been a catalyst for other financing sources by mobilizing other actors, including IFIs and the private sector, and raising visibility. We are looking forward to seeing more involvement by this kind of financing in the coming years, and hope it will help continue the dynamism of the solar power sector and its competitiveness with wind and other energy sources, including fossil fuels,” stated Mustapha Bakkoury, President of the Moroccan Agency for Solar Energy (MASEN).
“The CTF is at the heart of Mexico's climate program,” said Raul Delgado, speaking on behalf of the government of Mexico, which will shift the remaining CTF financing from wind and energy efficiency programs to a new geothermal project. He explained that wind projects in Mexico are moving forward rapidly and demonstrating to the private and financial sector that these kinds of project are worth doing, and therefore no longer require concessional funding, while the nascent geothermal power sector could benefit greatly from CTF financial incentives to boost investments.
Also moving forward under the CTF are plans to implement an upgraded pipeline management system designed to speed up implementation and disbursement, guidelines for local currency transactions to stimulate private sector participation, and design of dedicated private sector programs.
Under the Program for Scaling Up Renewable Energy in Low Income Countries (SREP), agreement was reached to establish a global index of the business environment for energy, which aims to assess the enabling environment for promoting investments in renewable energy, energy efficiency, and energy access in SREP pilot countries.
Under the PPCR, Haiti received endorsement of its $25 million program to support efforts on climate-proofing infrastructure and agriculture in the vulnerable Centre-Artibonite Loop, strengthening resilience in coastal cities of the Gulf of La Gonâve, and advancing knowledge management and capacity building in hydro-meteorological and climate services.
In a video address to the PPCR Sub-Committee meeting, Haiti President Joseph Michel Martelly stated, “Resilience is not about accepting the caprices of Mother Nature. Rather, it is about managing our natural environment in a responsible manner, in the quest for a better future, for the sake of all of us.”
All 20 strategic programs under the PPCR are now endorsed, with many already launching proposed activities. To date, 26 projects have been approved for $399 million in PPCR funding that is expected to leverage an additional $512 million in co-financing.
Information sharing at its best
Representatives from all 18 PPCR pilot countries were also in Washington, D.C. for the seventh PPCR Pilot Countries Meeting on May 1-3 to discuss implementation progress and challenges of their programs, particularly monitoring and reporting, country coordination, stakeholder engagement, knowledge management, and private sector engagement.
“These meetings are information sharing at its best. PPCR pilot countries are supportive of each other, and there is a real sense of belonging. I know I can pick up the phone and call colleagues in Cambodia or Jamaica and ask for advice without going through bureaucracies,” said Litara Taulealo of the Ministry of Finance of Samoa.
During the meetings, representatives from the government of Belize presented their national climate resilience investment plan, developed independently but using the PPCR model. PPCR pilot countries were generous with their input and advice, which Belize plans to incorporate.
“Making sure that we are climate resilient is absolutely important if we are to build an economy that will give people a quality of life that they deserve… We have learned lessons from being here, and we continue to learn and look for lessons to take back home to improve our investment plan.” said Marion Cayetano from Belize.
Now that all PPCR programs are endorsed and the implementation phase underway, the PPCR plans in 2013 to consolidate lessons learned during the investment planning stage and package it as a knowledge resource for other nations like Belize seeking guidance on climate resilient development.
The $7.6 CIF is the world’s largest financing mechanism for climate finance, supporting 49 countries worldwide pilot transformations in clean technology, sustainable management of forests, increased energy access through renewable energy, and climate-resilient development. CIF financing is channeled to countries through the public and private sector arms of the five multilateral development banks – the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development, the Inter-American Development Bank and the World Bank Group. A mix of grants, highly concessional and near-zero interest credits, and risk mitigation instruments from the CIF are expected to leverage over $43 billion in co-financing.
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