1. Presentation 4 – How to Estimate Resource Requirements for the CPC? 1 Presentation 4 Presentation 4 How to Estimate Resource Requirements for the CPC?

2. Presentation 4 – How to Estimate Resource Requirements for the CPC? 2 What will we learn here? 4 How to Meet the Financial Needs of the CPC? How to estimate basic resource requirements? How to secure seed funds for the CPC? The basic and strategic services of the CPC How to identify the potential sources to meet the shortfall in seed funds? How to submit a formal request for funds?

3. Presentation 4 – How to Estimate Resource Requirements for the CPC? 3 Introduction Next Slide

4. Presentation 4 – How to Estimate Resource Requirements for the CPC? 4 So far, the stakeholders of the CPC have formulated a conceptual plan and created the basic design for the CPC It is now time to consider the issue of funding the CPC This requires an estimation of how to meet the financial needs of the CPC. Introduction

5. Presentation 4 – How to Estimate Resource Requirements for the CPC? 5 How to secure seed funds for the CPC? Next Slide

6. Presentation 4 – How to Estimate Resource Requirements for the CPC? 6 How to secure seed funds for the CPC? The CPC should eventually be able to sustain itself financially, by providing services to its clients. However, there will be a time at the beginning of the Centre's life (the first 3 to 5 years or the initial phase), when it cannot support itself completely as it has not established its client base yet, and it is not fully geared to deliver a range of services to its clients The challenge of securing funds therefore becomes two-fold. The first is to secure sufficient seed funds to sustain the Centre over the first 3 to 5 years, during which time it has to establish its place in the market. The second is to assure the financial sustainability of the Centre from a business point of view Initially, some income will be also be generated through revenue earned from services (excepting perhaps awareness raising) delivered by the CPC during the initial phase. The stakeholders will also need to make initial projections of this revenue generation

7. Presentation 4 – How to Estimate Resource Requirements for the CPC? 7 How to secure seed funds for the CPC? Securing contributions from stakeholders (cash or kind) Secondment of full-time / part-time staff: Stakeholders continue to pay their salaries; however the CPC may charge the clients fees for services rendered through these staff Assistance in promotion of the CPC activities (providing slots to the CPC in conferences / seminars organized by stakeholders, providing free advertising space in the stakeholders’ association magazines, etc.) Providing the CPC with office space, furniture, stationery, access to conference rooms, vehicles, laboratory analytical facilities and so on

8. Presentation 4 – How to Estimate Resource Requirements for the CPC? 8 How to secure seed funds for the CPC? Projecting Revenue Streams: A Knap Sack Problem Revenue can be obtained by provision of services This revenue could possibly meet the operating costs of the CPC at least by the end of the initial phase For increasing the revenue, the type and intensity of services of CPC will need to be increased/expanded This may require increase in the staff and consultants and/or incur more travel and promotional costs This in turn will lead to increase in the operating costs and hence a need to raise additional revenue. It is critical that the projections are carried out on a strategic basis considering the knap-sack situation of the problem.

9. Presentation 4 – How to Estimate Resource Requirements for the CPC? 9 Phase-1 Foundation Phase (Basic Services):Phase-1 Foundation Phase (Basic Services): 1.Awareness Raising, 2.Training, 3.Cleaner Production Assessments 4.Demonstration Projects Phase-2 Extension Phase (Strategic Services):Phase-2 Extension Phase (Strategic Services): 1.Networking 2.Match making 3.Knowledge management 4.Interfacing with financial institutions 5.Providing policy advice. The Basic and Strategic Services of the CPC

10. Presentation 4 – How to Estimate Resource Requirements for the CPC? 10 Progression Between the Foundation and Extension Phases of the CPC

11. Presentation 4 – How to Estimate Resource Requirements for the CPC? 11 Phase-1 Foundation Phase (Basic Services) Inter-relationship Between Basic Services

12. Presentation 4 – How to Estimate Resource Requirements for the CPC? 12 Phase-2 Extension Phase (Strategic Services) Inter-relationship Between Strategic Services

13. Presentation 4 – How to Estimate Resource Requirements for the CPC? 13 How to identify potential sources to meet the shortfall in seed funds? Next Slide

14. Presentation 4 – How to Estimate Resource Requirements for the CPC? 14 How to identify potential sources to meet the shortfall in seed funds? Ideally, the stakeholders together can make sufficient contributions of seed funds in cash or in kind to cover the needs of the CPC in the initial phase However, if their contributions are not enough, then the shortfall must be covered by other sources As a benchmark, experience with the UNIDO / UNEP NCPC Programme shows that a CPC usually requires US$150,000 to US$200,000 a year of external funding (i.e. over and above the type of in-kind contributions from stakeholders cited above) Of this, US$50,000 to US$70,000 a year is spent on international consultants and other external resources

15. Presentation 4 – How to Estimate Resource Requirements for the CPC? 15 How to identify potential sources to meet the shortfall in seed funds? Generally, there are two primary sources of funding to tap into - national funds (primarily from the government), and international funds If the national, regional or local government is a potential funding source, there is a good chance that it will already be a stakeholder in the CPC. Thus, its capability to cover the needs for seed funds will have been explored already However, it is possible that government authorities, which are not stakeholders, have certain funds that could be tapped into. For e.g., the World Bank and other regional Development Banks give countries technical and financial assistance for specific purposes. In such a case, the stakeholder could attempt to tap into these funds

16. Presentation 4 – How to Estimate Resource Requirements for the CPC? 16 How to identify potential sources to meet the shortfall in seed funds? Funds from international donors may be bilateral or multilateral A number of donor countries have given bilateral funds for establishing CPCs. The stakeholders to identify the donor countries having active bilateral programmes in the country, and approach the representatives of these donor countries to explore with them if the establishment of a CPC would fit into any of the priority areas they have set With respect to multilateral funding, the most important player worldwide for funding NCPCs is UNIDO, although UNDP has also occasionally funded NCPCs. The stakeholders need to approach the UNIDO country representative (if there is one), or otherwise communicate directly with the UNIDO Headquarters in Vienna. For UNDP, the stakeholders need to approach the UNDP country representative

17. Presentation 4 – How to Estimate Resource Requirements for the CPC? 17 How to submit a formal request for seed funds? Next Slide

18. Presentation 4 – How to Estimate Resource Requirements for the CPC? 18 How to submit a formal request for seed funds? Each funding source normally has its own specific format for preparing funding requests. As a general rule: Outline the conceptual plan responsible for the genesis and operation of the CPC Outline the basic design for the CPC (mission, objectives, strategy, targets and tasks, organizational structure and basic resource requirements) Outline the identified financial needs of the CPC, along with the earmarked seed funding Outline the initial projections made for revenue generated as a result of delivering services in the initial phase Based on the identified financial needs, earmarked seed funding, and initial projections of revenue generation from the delivery of basic services, outline the net shortfall in the financial needs of the CPC Outline the amount of funding being requested and the period for which it is being requested

19. Presentation 4 – How to Estimate Resource Requirements for the CPC? 19 Lastly… It is very important to document all the decisions taken in the context of estimating the resource requirements and meeting the financial needs of the CPC