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System for Transparent Allocation of Resources (STAR)

System for Transparent Allocation of Resources (STAR). Resource Allocation in the GEF (1). In GEF-4 the Resource Allocation Framework (RAF) was implemented Its purpose was to determine a specific quantity of resources for all countries eligible to receive grants from GEF

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System for Transparent Allocation of Resources (STAR)

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  1. System for Transparent Allocation of Resources (STAR)

  2. Resource Allocation in the GEF (1) • In GEF-4 the Resource Allocation Framework (RAF) was implemented • Its purpose was to determine a specific quantity of resources for all countries eligible to receive grants from GEF • The allocations were based on: • The capacity of countries to generate global environmental benefits • The level of country performance

  3. Resource Allocation in the GEF (2) • This Resource Allocation Framework was adopted in September 2005 • It was applied in Biodiversity and Climate Change • There were a large number of “group” countries vs. a limited number of countries with individual allocations • The ceiling was 10% for Biodiversity; 15% for Climate Change • The mid-term evaluation made a number of important recommendations regarding the structure of the RAF, as well as to the difficulties during its implementation

  4. Resource Allocation in the GEF (3) • The general objective of the system for transparent allocation of resources (STAR) during GEF-5 has not been modified: • “…a system for allocating resources to countries in a transparent and consistent manner based on global environmental priorities and country capacity, policies and practices relevant to successful implementation of GEF projects”

  5. Resource Allocation in the GEF (4) The noteworthy elements of STAR are: • Applied to biodiversity, climate change and land degradation (international waters and POPs remain outside the STAR) • “The group” is eliminated: all countries have individual allocations • The ceilings are maintained (10% BD and 11% CC) and floors are established (2M for CC, 1.5M for BD and 0.5M for LD) • Principle of flexibility adopted for countries with small allocations • Indices of global benefits for all focal areas and of country performance will be reviewed

  6. Resource Allocation in the GEF (5)

  7. STAR Operational Procedures (1) • Individual allocations are based on the level of refinancing approved (US$4.25 billion). • With the elimination of group allocation under the GEF-5, a floor of US$2 million has been established for climate change, US$1.5 million for biodiversity, and US$0.5 million for land degradation. • Projects will be approved on a first-come first-served basis. • In the event of project cancellation before the last six months of the GEF-5, resources will remain available to the country to be used in the same focal area. • In the event of project cancellation after the last six months of the GEF-5, resources may be used in the same focal area or in others, at the discretion of the CEO and with the approval of the Council.

  8. STAR Operational Procedures (2) • Countries classified as “flexible”1 may use the full value of their allocation in only one of the focal areas subject to the STAR. • Marginal adjustments may be made when resources are exhausted in a specific focal area in the following manner: • Countries with allocations of US$7 - US$20 million: US$0.2 million • Countries with allocations of US$20 - US$100 million: US$ 1 million • Countries with allocations greater than US$100 million: US$2 million • Endorsement letters must refer to current STAR allocations in each relevant focal area, including preparation costs (PPG) and Agency fees2. _______________ 1Sum total allocation under US$7 million 2Exclusions include corporate budget, SGP, CSP, international waters, management of chemicals (POPs and ODS), earth fund, and assistance with the use of non-grant instruments.

  9. STAR Operational Procedures (3) • A revised letter of endorsement is required if an amount over 5% of the original is requested during the CEO endorsement period. • In the case of “flexible” countries, reference must be made to the total amount and to the individual amount for each focal area. • The Secretariats of the relevant conventions must be informed of “flexible” and “marginal adjustment” cases in the endorsement letter. • For the June 2011 and June 2012 Council meetings, reports on the implementation experience of the STAR will be provided. • For the June 2013 meeting, the Council will provide an assessment of STAR design and implementation prepared by the Office of Evaluation (OE), in addition to a report on progress in the development of indicators.

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