Evaluate the Nordic Climate Facility (NCF) and the cooperation with the Nordic Environment Finance Corporation (NEFCO) NCF has been very popular among Nordic applicants through its three calls for proposals and seems to have given NDF good visibility in the Nordic and recipient countries. On the other hand, some Nordic government respondents told us they considered NCF as tied aid and essentially a showcase for NDF in the Nordic countries, with possibly little climate impact compared to administrative costs. NCF should be evaluated for project impacts and NEFCO’s comparative advantage in administering the facility before continuing with further calls for proposals. NDF should reconsider co-financing Nordic bilateral projects NDF is so far involved in only one project with a bilateral Nordic partner: The Mekong Energy and Environment Partnership (Mekong EEP). At least from a medium-to-long-term perspective, the money cannot really be considered additional, since it originally came from Nordic governments. Moreover, it is unlikely that NDF should have much influence on Nordic development agencies regarding increased climate change-related content, since NDF is supposed to reflect the values of those agencies already. Engage the Nordic governments in a discussion of geographical and other division of labor Geographical and other division of labor could enhance both the complementarity and additionality of NDF. Such a discussion could take place within the NDF Board, since it is composed of Nordic government representatives. Consider informing potential Nordic bidders in a more systematic way about tenders This could be done for instance by finalizing a more complete and comprehensive mailing list to companies. In addition, one way to give NDF staff an incentive to ensure that the right Nordic firms are sufficiently aware of all relevant bidding opportunities could be to monitor the number of Nordic firms bidding in each tender above a certain threshold, including those under joint co-financing projects. Amend procurement rules to better reflect the principle of alignment with country systems In order to fulfill the requirement of the Paris Declaration that donors should strive to “Progressively rely on partner country systems 6
for procurement when the country has implemented mutually agreed standards and processes”, the procurement rules should be amended.
Consider increased use of e-mail for final project approvals on a rolling basis In response to the difficulties some ADB mission leaders have had in coordinating with NDF’s two-step project approval process, the NDF Board should consider greater use of e-mail approvals (approval per capsulam). In the longer term, especially in the eventual case of fewer annual Board meetings, the Board may wish to consider delegating final project approval to the Administration.