Project Preparation Facility Action Group

The Project Preparation Facility Action Group was launched in July 2016. It aims to support CCFLA members in identifying, coordinating and accelerating existing Project Preparation Facilities. It focuses on enabling implementation, supporting local metropolitan and regional governments and their partners to build capacity and to scale up planning, project preparation and financing of their projects. The WG also plans to question and compare the models and raise awareness on the value of Project Preparation Facilities, as well as accelerate replication and innovation; and finally encourage and promote greater cooperation between CCFLA members involved in such mechanisms.

What is a Project Preparation Facility? How can it help cities?

Most cities, especially in developing countries, face major challenges in identifying and developing bankable low-carbon and climate-resilient infrastructure projects, which are at the same time attractive to public and private financiers.

The preparation of bankable projects at the subnational level is particularly challenging since it often requires high degrees of technical and financial engineering capacities.

Project Preparation Facilities (PPFs) are formal platforms that assist cities supporting activities oftentimes in the entire project preparation stage of the project cycle. Most of PPFs cover four main phases of the project preparation stage of the project cycle:

  • Project concept definition
  • Project Feasibility
  • Project Delivery Planning (Structuring and Transaction Support), and
  • Project Processing and Approval.

To assist a city in Project Preparation (PP) is as a key enabler of the delivery process for setting new effective financing models for sub-national low carbon infrastructure projects and development plans. It is also a way – at an early stage – to aggregate cooperation efforts and commitments coming from a wide range of stakeholders, in particular, public and private investors and financing institutions.

Project Preparation Facilities from CCFLA Members

Project Preparation has been defined, in 2015, by CCFLA, as one of its top five priorities to localize climate finance.

Project Preparation FacilitiesLead Organization
AFD DBSA Project Preparation and Feasibility StudyAgence Française de Développement
(AFD) , Development Bank of Southern Africa (DBSA)
C40 Cities Finance Facility (CFF)C40 Cities Climate Leadership Group (C40), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), Gesellschaft mit beschränkter Haftung (GmbH)
Financing Energy for low-Carbon Investment - Cities Advisory FacilityDeutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), European Investment Bank (EIB)
Financing Sustainable Cities InitiativeWorld Resources Institute (WRI) and C40 (equal founding & lead partners) and Citi Foundation
GCF-EBRD Sustainable Energy Financing FacilitiesEuropean Bank for Reconstruction and Development (EBRD), Green Climate Fund (GCF)
Global Innovation Lab for Climate FinanceClimate Policy Initiative (CPI)
ICLEI’s GreenClimateCities (GCC) programICLEI – Local Governments for Sustainability
MatchmakerCarbon Disclosure Project (CDP)
SOURCESustainable Infrastructure Foundation (SIF)

To have access to a more complete list of PPFs, please read our 2017 CCFLA mapping report (November 2017,2nd Edition)

CCFLA Research Links on Project Preparation:

Interested in joining? Please contact CCFLA Secretariat secretariat@citiesclimatefinance.org