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Appraisal Methodology for Pre-Investment Feasibility Studies under the MACC Project Herman Cesar (ARCADIS, CEEC, IVM) Pieter van Beukering (IVM, CEEC)

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Presentation on theme: "Appraisal Methodology for Pre-Investment Feasibility Studies under the MACC Project Herman Cesar (ARCADIS, CEEC, IVM) Pieter van Beukering (IVM, CEEC)"— Presentation transcript:

1 Appraisal Methodology for Pre-Investment Feasibility Studies under the MACC Project Herman Cesar (ARCADIS, CEEC, IVM) Pieter van Beukering (IVM, CEEC) Marlene Attzs (UWI-Trinidad) David Smith (Smith-Warner Int’l Ltd.) in consultation with: CPACC, OAS and World Bank Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

2 Background of this study Objective: to develop a methodology for reviewing and ranking proposals for pre-investment feasibility studies submitted under Component 2 of MACC by participating countries 1. Mainstreaming Adaptation2.7 MUS$ 2. Formulation of measures (demonstration pilots) and regional agenda for adaptation 3.5 MUS$ 3. Expanded knowledge base for assessment of GCC impacts 2.1 MUS$ 4. Cross-regional Dissemination and Replication0.3 MUS$ 5. Project Management0.7 MUS$ MACC Components (proposed draft): Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

3 Source: Tol (1997) Monetized Estimates of the Impact of Climate Change (in: 10 9 US$) Regions Species loss Loss of hum. life Agricult. loss Sea lev. rise Extreme weather TotalPercent GDP OECD52.423.7-1.545.846.3166.61.2% Middle East 0.45.27.62.70.015.94.2% LA & Caribb. 0.690.613.15.60.1109.913.8% S.&S.E. Asia 0.2101.023.95.83.5134.316.3% Africa0.122.711.42.80.039.19.6% Rest World 6.377.7-26.31.50.65.8- Total World 60.0320.928.264.250.5523.82.7% Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

4 Table 2.5 Cost of damage to the five countries most seriously affected by Hurricanes Luis and Marilyn in 1995 (in: million EC$) Sources: CDERA (1998), ECLAC/CDCC (1997) Country Storm Damages (EC$ Mn) GDP pre- ceeding yr. (EC$ Mn) Damage as percentage of GDP Anguilla245166.4147.0% Antigua/Barbuda8101 143.971.0% Montserrat8.0147.35.4% Dominica262494.153.0% St. Kitts/Nevis532505.6105.2% St. Martin1,764 NA Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

5 ” Reject If“no” reject. ” Reject If“no” reject. ” If “<70 reject. If “<70 reject. If“no” reject. If“no” reject. If “yes” accept. ” Accept If “>=70” accept. Stage 2. Check list (scale: yes, no) Environmental Impact Assessment (EIA) Scenario and sensitivity analysis Look at alternatives Potential Replicability Safeguards (ODs and Stage 2. Checklist (scale: yes, no) Environmental Impact Assessment (EIA) Scenario and sensitivity analysis Look at alternatives Sustainability (economy, env’t, social impact) Safeguards (ODs and Ops) Potential replicability Stage 1. Initial screening (scale: yes, no) Addressing specific sectors or sub-sectors Reflecting National Communications / Nat. Adaptation Policy / Issues Paper Stage 3. Short list (scale: 1 to 10) 1. Financial feasibility 4. Effective stakeholder participations 5. Implementation strategy 6. Capacity building & effective use of capacity 7. Operational maintenance 8. Contextual feasibility 9. Legal & institutional arrangements Stage 3. Shortlist 1. Financial feasibility 2. Technically sound (design) 3. Effective stakeholder participations 4. Implementation strategy 5. Capacity building & effective use of capacity 6. Operation & maintenance 7. Political and societal commitment 8. Methodological soundness evaluation 10. Compatibility between input/output/impact 9. Legal & institutional arrangements Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

6 Stage 1. Initial screening (scale: yes, no) Addressing specific sectors or sub-sectors Reflecting National Communications / Nat. Adaptation Policy / Issues Paper Each proposal should clearly state how the pilot project intends to address their concerns and how it relates to the three official documents (National Communications, Issues Paper, Policy & Action Plan). MACC’s sectoral & cross-sectoral priorities Sectoral Cross-sectoral Tourism Integrated natural res. planning and mgt. Water resources Insurance Agriculture & Forestry Infrastructure Fisheries Disaster prevention management Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

7 Stage 2. Check list (scale: yes, no) Environmental Impact Assessment (EIA) Scenario and sensitivity analysis Look at alternatives Potential Replicability Safeguards (ODs and Stage 2. Checklist (scale: yes, no) Environmental Impact Assessment (EIA) Scenario and sensitivity analysis Look at alternatives Sustainability (economy, env’t, social impact) Safeguards (ODs and Ops) Potential replicability Under ACCC (Component V), an effective EIA process incorporating climate change considerations is being developed for all 12 participating countries; This may change the checklist ecologically socially/culturally economically Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

8  Each item on shortlist gets points (from 0 to 10)  Project is acceptable with >=70 points  Project with highest score is ranked no. 1, etc. Stage 3. Short list (scale: 1 to 10) 1. Financial feasibility 4. Effective stakeholder participations 5. Implementation strategy 6. Capacity building & effective use of capacity 7. Operational maintenance 8. Contextual feasibility 9. Legal & institutional arrangements Stage 3. Shortlist 1. Financial feasibility 2. Technically sound (design) 3. Effective stakeholder participations 4. Implementation strategy 5. Capacity building & effective use of capacity 6. Operations & maintenance 7. Political and societal commitment 8. Methodological soundness evaluation 10. Compatibility between input/output/impact 9. Legal & institutional arrangements Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002

9 Appraisal Methodology for Pre-Investment Feasibility Studies under the MACC Project Appraisal Study for MACC pilot projects – ARCADIS; Bahamas 12-14 August 2002


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