Green Fund Application Process &

Lessons Learned

SALGA WORKSHOP, DURBAN28 November 2013

Michelle LayteGreen Fund

Presentation Outline

• Green Fund Overview

• Green Fund Programming

• Funding Design & Finance windows

• Initial Response & Lessons

Green Fund Overview

In 2012, National Treasury allocated an initial R800 million for financial years (FY2012/13- FY2014/2015) for the set-up & establishment of a Green Fund.

DBSA appointed as implementing partner, effective from 1 April 2012, and confirmed through the signing of the MoA with DEA (Department of Environmental Affairs)

Phase 1- Establishment (May 2012- Oct 2012)

Phase 2- Building Project Pipeline (Aug 2012- March 2013) 1st Public RFP (Sept – Oct 2013) 2nd Research RFP (Feb – March 2013)

Green Fund Programming

• The Green Fund aims to:• promote innovative and high impact green programmes and

reinforce climate policy objectives through green interventions,

• Build an evidence base for the expansion of the green economy & attract additional resources

Funding & Window Design

Product Offering Allocation

Project development 75%

Capacity building 20%

Research and development 5%

Application Process

1st Public Request for Proposals (RFP): 21st of September 2012 - 24th of October 2012 Project Finance 590 applications worth R10.9 billion were received and evaluated based on the eligibility criteria

outlined below.

2nd Public RFP: issued 1 February 2013, closed on 28 March 2013 Research & Development 155 applications worth R1.6 billion were received and evaluated based on the eligibility criteria

Criteria stipulated in Application Guidelines

Relevance match to the thematic funding Window and focus areas therein

Innovation the project is new and unique in the green economy space. This innovation can relate to any of the following aspects: technology, business model, institutional arrangements, or financing approach

Additionality the project cannot proceed without the Green Fund’s financial support and a funding gap should be demonstrated.

Ability to scale up and/or replicate

the project has the potential to be rolled out to other sites and/ or to be implemented at a large scale.

RFP Submissions- Key sectors in the research and project applications

Applicant Types

Geographical Spread

9

Green Fund- Initial Lessons

• Positive Funding Demand: Request through RFP process amounting to R10,9 billion, mostly for initiating & scale-up of start-up projects in the following sectors: renewable energy, waste technologies & systems for efficient water management, innovative modalities for sustainable city planning

• Appetite & uptake from private sector, local government, however limited NGO response. The Research RFP shows greater interest by Research Institutions (universities, CSIR, HSRC)

• Geographic spread- uptake mostly from GP, WC, KZN and EC

Green Fund- Initial Lessons

What are the under-represented sectors & provinces telling us about the process & “applicant” readiness to access finance?

Process Issues

Access to information – RFPs advertised in all national newspapers, Green Fund website

Timeframe for submission

Web-based application system to preserve integrity of submissions

Green Fund- Initial Lessons

What are the under-represented sectors & provinces telling us about the process & “applicant” readiness to access finance?

Applicant ReadinessNot meeting Eligibility Criteria (Application Guidelines)

Relevance- fit the thematic funding window and focus area Innovation- proposal is new and unique in the green economy space (technology,

business model, institutional arrangements, or financing approach) Additionality- project cannot proceed without the Green Fund’s financial support and

a funding gap should be demonstrated Ability to scale up and/or replicate- project has the potential to be rolled out to other

sites and/ or to be implemented at a larger scale

Incoherent proposal & methodology response to criteria

Unclear budget requests, usually not costed or breakdown provided

Supporting documentation not provided (eg. Municipal supporting letter)

THANK YOU

Michelle Layte

Green Fund- Secretariat Manager

Development Bank of Southern Africa (DBSA)

+27 11 313  5237 (office)

+27 11 206 5237 (fax)

Website: www.sagreenfund.org.za