Sri Lanka will soon be fulfilling the accreditation requirements under the Green Climate Fund (GCF) resulting in the appointment of the first Direct Access Entity (DAE) to access and manage funding of the GCF. The accreditation process of the first DAE, the HDFC Bank will be completed before the end of the year, revealed by Olena Borysova (Senior Accreditation Specialist) when the GCF Accreditation team led by her met Environment Minister Naseer Ahamed at the Environment Ministry recently.
Under the provisions of national entities to access the GCF funds as DAEs, the Environment Ministry in their capacity as the National Designated Authority (NDA) has nominated five Sri Lankan banks – DFCC, HNB, NDB, Commercial Bank and HDFC – as potential accredited agencies to access funding of the GCF. While other banks are working with the GCF to obtain accreditation, the process for DFCC Bank is nearing completion.
During the accreditation process, an applicant entity’s policies and procedures, track record, and demonstrated capacity to undertake projects or programmes of different financial instruments and environmental and social risk categories are assessed against the standards of the Green Climate Fund. The result of the accreditation process will specify the project or programme activity size; fiduciary functions, which will shape how it operates using the Fund’s resources (grants, loans, equity, and guarantees); and the highest category of environmental and social risk of its intended projects.
Minister Naseeer Ahamed requested the GCF Accreditation team to expedite the evaluation and accreditation of the other four entities too and the Government will facilitate in clearing any policy or regulatory barriers, if any, causing the delays. The Accreditation Team was thankful to the Minister and assured that the GCF will be guided by the priorities set by the Ministry as the National Designated Authority (NDA) in Sri Lanka.
Sri Lanka so far has received financial grants for five projects with a total GCF financing value of US $ 105.8 Mn and for four Readiness activities with a funding value of US $ 5.5 Mn. In addition, a number of Concept Notes have been prepared on the identified priorities of the GCF country programme of Sri Lanka aiming for greater funding by the GCF in the future.
Provided by SyndiGate Media Inc. (Syndigate.info).
