GCF recognises developing countries may face capacity constraints in developing climate finance proposals. That is why we provide financial and technical assistance for the preparation of project and programme funding proposals through the Project Preparation Facility (PPF).
Funding available is up to USD 1.5 million for each application to the PPF, commensurate to the funding proposal being developed and to the activities included in the PPF application. The Project Preparation Facility is especially designed to support Direct Access Entities for projects in the micro and small-sized category. However, all Accredited Entities are eligible to apply.
Support is available through two modalities: PPF funding; and PPF service.
PPF funding:
AEs receive funding in the form of grants, repayable grants or equity to undertake project preparation activities by themselves. As such, AEs organize the procurement and implementation process directly and are accountable for the oversight and reporting of the approved funding and activities. AEs who request up to USD 300,000 from GCF are eligible for the Simplified PPF Funding.
In general, if a PPF results in a feasible project with income generation potential, the PPF amount financed by the GCF should be repayable at financial close of the funded activity. In principle, the PPF funding from the GCF should be repaid within the financial structure of the Funding Proposal, with terms and conditions to be determined at the Funding Proposal development and review process, prior to submission to the GCF Board. If an AE assigns a project supported by the GCF PPF to a third party without the consent from the GCF, the AE should repay the PPF funding to the GCF. This is not limited to private sector projects.
PPF service:
The GCF provides project preparation services directly to AEs through a roster of independent consultancy firms, ensuring fast and quality delivery to AEs who do not wish to take on the procurement and project management of PPF activities by themselves.
As is the case for all types of GCF projects, Accredited Entities may seek PPF financial resources to prepare funding proposals for consideration under the Simplified Approval Process, based on a high potential concept note.