GEF Council paper GEF/C.38/Inf.5: Update on Upgraded SGP Country programs
Delivered to GEF Council 1 July 2010

1. The GEF NGO Network strongly supports the continuation and expansion of the GEF Small Grants Programme in the GEF 5 period.

2. We believe that given the importance and success of the SGP, the total funding made available for the SGP in GEF 5 should be substantially increased through a combination of core funds and STAR funds.

3. Since there was only a relatively modest increase in core funds to $140 million for GEF 5 – it is critical that a significant proportion of STAR funds are made available in each of the SGP countries to provide a total GEF funding framework of at least $300 million plus the allocations for upgraded countries.

4. We believe that there should be an enhanced mechanism for the GEF NGO Network as the formal facilitation mechanism for engagement of civil society in GEF to work with the Global SGP Steering Committee and the SGP Management Team to monitor and guide SGP more effectively.

Transition

5. At the time of the November 2009 Council it was envisioned that SGP Programme and the upgraded country programmes would be able to submit their FSPs in July 2010. Because of anticipated delays in the availability of GEF 5 funds, and in government commitment to provide needed country STAR funds -it is now envisaged that most submissions will only take place in November 2010 at earliest and could be early 2011 - depending on when GEF5 resources and STAR funds are made available. After approval of the PIFs there will be a further period of time before the approval of the Project document and release of the funds to UNDP. Thus SGP may only become fully operational in March or April 2011.

6. GEF/UNDP should provide a clear figure is given of the level of funds needed for supporting SGP beyond the end of December 2010 when its GEF-4 funds run out between July 2010 and the envisaged start date of SGP in GEF 5 including the cost of maintenance of national coordinators and programme staff as well as grant giving.

7. If the analysis shows a shortage of resources for this period - it is proposed that GEF Council or the GEF Secretariat ensure an appropriate mechanism is developed to enable GEF to advance resources or for UNDP to use its own funds for later reimbursement, to ensure continuity in the SGP especially in terms of the Contracts for the SGP Country programme staff as institutional knowledge would be lost of their contracts were allowed to lapse.

8. During the period of envisaged low SGP activity between July 2010 and possibly March 2011 in the transition between GEF 4 and GEF 5 – it is proposed that National coordinators focus on consulting with Civil society organisations in their respective countries to identify ways to further enhance and strengthen SGP in GEF 5 as well as developing strategies for SGP implementation in GEF 5 and generation of co-funding from government or other sources in the respective countries. The GEF NGO Network will be happy to work with SGP in this regards.

Adequacy of resources

9. Concerns were raised in the November Council for the 33 countries in Category II which would have very limited access to core resources in GEF 5 ($50,000/year-150,000/year) and those ( with STAR allocations above $15 million) where core funds can only be used for management costs and not grant-making. Efforts to encourage adequate STAR allocation in these countries are needed.

10. Paragraph 24 of the paper indicates that as of May 2010 only 3 out of the 10 countries for upgrading and only 2 out of the 123 countries under the global proposal have given an indication of allocating STAR resources to the SGP. Work needs to be undertaken rapidly to encourage countries to contribute their STAR funds to SGP as insufficient allocation of STAR funds to SGP is a major risk to the future viability of the SGP programme.

11. In order to make the upgraded SGP funding modality (via an independent FSP) viable - a funding level is needed of at least $5 million per country for smaller countries but higher for larger countries such as India or Brazil. Assessments of the risks of inadequate STAR allocations in these countries are needed.

12. Call on all SGP countries to make significant commitments to the allocation of STAR funds to the SGP programmes to sustain the continuity of the SGP Programmes in their respective countries.

Enhancing Active engagement of NGOs in SGP management

13. It is mentioned that it is hoped that three or four of the countries for upgrading will explore a strengthened role of NGOs in the implementation of the SGP. The GEF 5 proposal for SGP should include clear targets and allocation of resources to build the capacity of NGOs in other countries especially in Category II countries to enable enhanced NGO execution in GEF6. The further expansion of the concept of National Host Institutions (NHIs) in GEF 5 should also be stressed.

14. Within the GEF 5 budget for SGP there needs to be adequate allocation for capacity building of national NGOs/CBOs and knowledge sharing.

15. A clear mechanism should be established by SGP to strengthen the engagement with the GEF NGO Network in planning and implementation of SGP in GEF 5.

16. Options for engagement include contributing to the development or review of proposals ( at global level or for upgraded countries) for GEF 5 funding; involvement in capacity building and outreach; enhanced involvement of network members in country steering committees; joint development of knowledge sharing programmes; establishment of common communication channels to SGP grantees; encouraging CSOs with good experience of SGP to join the GEF NGO Network; establishment of a Network task force to work with the SGP in its further development.

17. We would expect a strengthened role for country and local NGOs/CBOs involvement in monitoring and evaluation of SGP programmes in GEF-5.

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