Local Government Initiative on Climate Change (LoGIC) Project
Performance Based Climate Resilience Grant (PBCRG)
What is it?
The PBCRG is a financing mechanism for local government action on climate change adaptation that was developed within the framework of UNCDF’s global Local Climate Adaptive Living (LoCAL) project. These are grants from the central government (represented in Bangladesh by Ministry of Local Government, Rural Development and Cooperatives, MLGRDC) to selected Union Parishads, to finance local actions to build climate resilience. PBCRGs are reflected in the annual budget of the grant receiving local government. PBCRG funds activities are consistent with the Bangladesh Climate Change Strategy and Action Plan and with the mandate and capacity of the grant receiving local government.
PBCRGs are to be utilized through the budget execution procedures of the UP. Therefore, the general provisions relating to the basic block grants to the UP, described in the UP Operations Manual, also apply to the PBCRG. LoGIC has developed PBCRG Operations Manual which will be considered as a supplement to the UP Operations Manual.
Purpose of the Performance Based Climate Resilience Grant:
PBCRGs are transferred to climate vulnerable local governments as additional financing and complement the general grant resources provided by the Government of Bangladesh (GOB) to all Union Parishads. The specific purpose of the PBCRG is to help UPs make investments to strengthen resilience to climate and disaster impacts, covering infrastructure and public services for the poor.
PBCRG acts as a top up to the general grant resources, assisting the recipient UP to meet the additional costs and specifically targeted investments required for providing climate resilient and climate-adaptive local infrastructure and public services. This approach, where the PBCRG complements and augments expenditures by UP, creates an incentive for local governments to mainstream climate change adaptation in development plans and budgets.
Size of the PBCR Grants:
The basis for calculation of the PBCRG awards under LoGIC is that 72 Unions will each receive three annual allocations, i.e. 216 grant awards in total (this assumes that all Unions comply with the MCs each year). The total fund allocation for PBCRG to UP in LoGIC is US$ 4,500,000. The PBCRG allocations consist of two components: Basic Climate Resilience grant component and a Climate Resilience Performance grant component. The total fund available for the Basic Climate Resilience component is US$ 3,300,000, while Performance Based Climate Resilience component is US$ 1,200,000.