easily understand the rules and its implications. It should be clearly The endowment option is the most advanced and the main 2.2 Define type of stated which type or reason to establish the fund. Though there is not fund, e.g. any mixture of it will exclusivity for this instrument as a fund can administer endowment, be established. several business lines which diversify risk and investors sinking, revolving Therefore it is and can respond to various funding needs requiring fund and document important to quantity different products. So far neither sinking fund capital nor and quality demand of revolving fund demand has been quantified. It is not clear financial resources whether the fund per se has the purpose of overall and match it with the donor/government coordination or not. different types of financial instruments, for some chunk of expenses an endowment fund might be the matching instruments for other activities a sinking fund or revolving fund. Does the feasibility study clearly distinguish between these types? The feasibility study No complete feasibility study has been conducted, but bits 2.3 Conduct for the establishment and pieces separately. The fund handbook for example Feasibility study of a new or existing defines the operational and financial procedures, the including viability fund is to be Memorandum of the association defines the governance analysis conducted by an structures, the financial needs assessment the financial addressing experienced expert requirements. Asset management has not been addressed eligibility, asset and should ascertain so far and this needs to be done as a selling point for management, that GEF eligibility investors. As said before cofinancing targeting has to be cofinancing criteria (see below), done as transparently as possible because it is not expected are fulfilled, adequate that professional investors buy in into "lump sum" figures operational and not knowing where they were derived from. administrative requirements are satisfied as well as a functioning and effective governance structure in place. The design of asset management needs to ensure security of the assets from invasion, currency devaluation and other investment risk The study should establish cofinancing targets based on the previously established capital targets.
easily understand the rules and its implications. 2.2 Define type of fund, e.g. endowment, sinking, revolving fund and document It should be clearly stated which type or any mixture of it will be established. Therefore it is important to quantity and quality demand of financial resources and match it with the different types of financial instruments, for some chunk of expenses an endowment fund might be the matching instruments for other activities a sinking fund or revolving fund. Does the feasibility study clearly distinguish between these types? The endowment option is the most advanced and the main reason to establish the fund. Though there is not exclusivity for this instrument as a fund can administer several business lines which diversify risk and investors and can respond to various funding needs requiring different products. So far neither sinking fund capital nor revolving fund demand has been quantified. It is not clear whether the fund per se has the purpose of overall donor/government coordination or not. 2.3 Conduct Feasibility study including viability analysis addressing eligibility, asset management, cofinancing The feasibility study for the establishment of a new or existing fund is to be conducted by an experienced expert and should ascertain that GEF eligibility criteria (see below), are fulfilled, adequate operational and administrative requirements are satisfied as well as a functioning and effective governance structure in place. The design of asset management needs to ensure security of the assets from invasion, currency devaluation and other investment risk The study should establish cofinancing targets based on the previously established capital targets. No complete feasibility study has been conducted, but bits and pieces separately. The fund handbook for example defines the operational and financial procedures, the Memorandum of the association defines the governance structures, the financial needs assessment the financial requirements. Asset management has not been addressed so far and this needs to be done as a selling point for investors. As said before cofinancing targeting has to be done as transparently as possible because it is not expected that professional investors buy in into "lump sum" figures not knowing where they were derived from.
03-04-15_GEF_5368_UNDP_5177_Guinea-Bissau_PA_System_PRODOC_03Mar15_0.docx