INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

The international consultant (accreditation) will work with the Ministry of Finance & Economic Development (MFED) through the Climate Finance Division, key government ministries, private sector, and civil society organizations to guide the accreditation process for the Green Climate Fund (GCF). The consultant will assess MFED’s current capacity and fiduciary arrangements, lead the implementation of necessary improvements, and train staff on relevant policies and procedures and submission of the MFED’s FMCA.

The objectives of the Consultancy are to:

1. Conduct a comprehensive assessment of MFED’s institutional and fiduciary capabilities,
2. Develop and implement a plan to address identified gaps in MFED’s fiduciary management and capacity,
3. Train MFED staff on GCF accreditation processes, policies, and procedures.
4. Guide MFED in completing and submitting the financial management capacity Assessment (FMCA) to the GCF.

The upgrading of MFED’s credentials will enable Kiribati to continue to have in place, national capability to mobilise resources through the Readiness programme, and to build upon this capability in the future for a possible direct access entity application.

Consultant’s scope of activities: Output 1.2.2. Direct Access Applicants supported with training, capacity development, or improved systems to close gaps

Task 1: Assessment Report: MFED’s Institutional and Fiduciary Gap Analysis on MFED

A. Conduct desk research and compile available information on:

1. 1. Updated GCF accreditation process, strategies, and policies,
   2. Current MFED project pipeline for climate financing, including existing and planned projects as well as details of financing instruments used,
   3. MFED existing policies and institutional regulations, including fiduciary standards and Environmental and Social Safeguards (ESS) and other related policies,
   4. Any existing and planned relevant capacity building for MFED’s internal staff.

B. Develop detailed work plan, proposed methodology, and timeline for the accomplishment of the Accreditation Gap Assessment

C. Conduct interviews/consultations and moderate the discussions with MFED, and other key stakeholders to gather information and agree on the work plan

D. Institutional Gap Analysis:

This analysis assesses whether the MFED’s institutional systems and policies are aligned with the GCF’s requirements in line with the five (5) pillars of the GCF’s Financial Management Capacity Assessment. The key areas evaluated include:

Pillar 1: Organisation and Legal Framework:

• The MFED’s governance framework and constitution, including its organizational structure, decision-making processes, and internal control mechanisms.

Pillar 2: Structure and Culture, including considerations on Code of Conduct and Ethics

• Organisational Structure, organogram, including reporting lines
• Management structures, operations and manuals, policies and procedures, including key units/departments and their roles and responsibilities
• Operations and/or Administrative Manual (including Financial roles/functions) Policies, Procedures, SOPs
• HR Policies, procedures and manuals
• Code of Conduct and/or ethical standards for staff

Pillar 3: Financial Management, including Management of Risk

• Financial Management Manual, Accounting Policies & Guidelines, SOP
• Main Accounting policies of the Entity; and Accounting Software used/adopted
• Internal Control Framework (ICF), including procedures against Fraud & Corruption
• Internal audits and annual financial statements and/or fiduciary assessment reports
• General Anti-Money Laundering (AML) and Combating Finance of Terrorism (CFT) Policies, Practices and Procedures

Pillar 4: Procurement Policies and Procedures

• Procurement Manual, Policies and Procedures
• Delegation of Authority / Financial Thresholds
• Conflict of Interests (COI) Policy

Pillar 5: Programme and Project Management

• Program / Project Management Manual, Policies, Procedures, SOP, etc.
• Monitoring and Evaluation Policies, Procedures, and Guidelines
• Track record of the past and/or ongoing project(s) the Organization implemented including Results/Outcomes.
• External evaluation(s) / assessment(s) of past or ongoing Projects and Program (if any)
• Risk Assessment and Risk Management Policies of the Organization (if any)
• CVs of key Finance and Project staff
• Relevant Institutional publications, communications, reports, and references; and official website of DP

E. Fiduciary Gap Analysis

This analysis ensures that MFED has robust financial management and integrity systems to manage GCF funds. The key areas evaluated include:

1. Financial Management and Accounting:

• The MFED’s financial management systems, including accounting practices, financial reporting, and internal controls.
• Internal Audit and Control:

• The MFED’s internal audit function, including its independence, scope, and effectiveness.
• External Audit:

• The quality and comprehensiveness of the external audit processes, including the auditor’s qualifications and the frequency of audits.
• Procurement:

• The MFED’s procurement policies and practices, ensuring they are transparent, competitive, and aligned with international standards.
• Project Financial Management:

• The MFED’s capacity to manage project finances, including budgeting, fund disbursement, and financial monitoring and reporting.
• Anti-Fraud and Corruption Measures:

• The MFED’s policies and procedures to prevent, detect, and address fraud and corruption.

F. Recommendations and suggested pathways for MFED’s FMCA compliance

i. Provide recommendations and compliance pathways for the following:

• All sub-tasks under Institutional Gap Analysis,
• All sub-tasks under Fiduciary Gap Analysis,
• Information gathered during the consultations and meetings,
• Other information for MFED/GCF compliance purposes, and
• GCF accreditation pathway and options for Kiribati

ii. Provide the recommended policies, strategies, framework and other gaps for review, update or development to ensure MFED’s compliance.

Task 2: Lead the implementation of actions to fill the gaps for the MFED’s FMCA.

By using the recommendations, the suggested gaps and the strategies in Task 1,

i. Implement the required actions to achieve the FMCA standard,

ii. Draft a brief report that covers the following:

• Any required technical assistance to meet some of the FMCA’s gaps and recommendations,
• The policies, gaps and framework that could not be attained during the duration of the consultancy, and
• The timeline of technical assistance to secure or to be delivered to fully complied with the FMCA or accreditation,
• Any lessons learned for the MFED and CFD.

iii. Monitor and update on the progress of the implementation activities.

Task 3: Undertake training of staff in understanding and applying the relevant policies and procedures, and the accreditation process.

i. Develop the accreditation training modules,

ii. Deliver the accreditation training modules,

iii. Document participants’ and MFEDs feedback,

iv. Make available all the PowerPoint, training modules and other resources to the CFD and other MFED divisions.

Task 4: Lead with MFED to complete the FMCA and submit to the GCF.

i. Walk through with MFED and CFD through consultations on the GCF FMCA template,

ii. Complete the GCF FMCA templates,

iii. Submit the completed MFED’s GCF FMCA templates to GCF Secretariate for assessment.