PBCRG
What is PBCRG?
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, MoLGRDC) to selected Union Parishads (upto FY 2021-22) and Upazila Parishad (since FY 2022-23) based on their climate vulnerability, to finance local actions to build climate resilience. PBCRGs are reflected in the annual budget of the grant receiving local government. PBCRG-funded activities are consistent with the Bangladesh Climate Change Strategy and Action Plan (2009),the National Adaptation Plan (2023), and other relevant policy documents, aligning with the mandate and capacity of the grant-receiving local government.
PBCRGs are to be utilized through the budget execution procedures of the UP/UZP. Therefore, the general provisions relating to the grants to the UP/UZP, described in the Operations Manual of UP/UZP, also apply to the PBCRG. LoGIC has developed the PBCRG Operations Manual which will be considered as a supplement to the Operations Manual of UP/UZP.
What is the 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/Upazila Parishads. The specific purpose of the PBCRG is to help UPs/UZPs make investments to strengthen resilience to climate and disaster impacts, covering infrastructure and public services for the vulnerable population.
The PBCRG is allocated as additional resources to complement existing LGI budget with the specific purpose of strengthening resilience to negative climate impacts on development investment, i.e., infrastructure and public services for the vulnerable communities. The PBCRG schemes support climate change additionality to the sustainable rural infrastructural needs so that those can reduce the climate risk at community and household levels.
What is the process of PBCRG allocation?
Figure 1: Performance-Based Climate Resilience Grant (PBCRG)
First, LoGIC proposes formula-based entitlements for addressing climate change for target UP/UZP, taking into account carefully selected characteristics of Upazila Parishads, such as population, area, revenue base, and climate change vulnerability.
Second, the performance of the target UP/UZP is assessed through structured performance assessments on key indicators critical to the results targeted by LoGIC, such as compliance with mandatory functions, climate change responsive development planning, efficient implementation of planned activities, and increased mobilization of own resources.
Third, the grant entitlements are weighted by relative performance, whereby the better performing Upazila Parishads receive allocations greater than the initial entitlement, while those performing relatively worse receive smaller or no allocations. The performance incentive of around 30% of the block grants provides sufficient motivation for the Upazila Parishads to improve performance in areas related to climate change resilience.
Figure 2: Process of disbursing PBCRG to Upazila Parishad (since FY 2022-23) in LoGIC project (similar process was followed for Union Parishads)
The major variation envisaged in relation to the performance-based grants by LoGIC is with regard to the entitlement formula and the additional climate change related indicators used in the performance assessment. The basic entitlement formula has been recently revised to address the extent of climate change vulnerability of the Upazila Parishad. The performance indicators have been modified to address actions and achievements in relation to climate change responsive action by the target Upazila Parishads.
The design of the PBCRG is well aligned to the mechanisms established for grant making, so as to avoid significant additional steps or reporting, during the planning, performance assessment and reporting stages.
Fund is disbursed to the treasury of Bangladesh Bank in favor of project bank account of Local Government Division (LGD). LGD will disburse the funds as per performance-based allocation to each Upazila Parishad in their respective account.
Project Componets > PBCRG
Major types of PBCRG infrastructure:
Drinking Water Interventions: Rainwater Harvesting Systems, Surface-water Treatment Plants, Flood-Proof Tube Wells, Water Desalination Plants, and more.
Promote Climate Resilient Agriculture: Canal re-excavation, U-Drain installation, and Solar-Powered Surface Water Irrigation Systems.
Shelter and WASH Facilities: Improvements to WASH facilities in cyclone/flood shelters, repairs, and Solar Street Lamps.
Improve Accessibility to Shelter and Water Sources: Construction of earthen roads, brick soling roads, RCC roads, and various types of bridges.
Reduce Impacts of Flood and Waterlogging: Road cum protection walls, guide walls, embankment repairs, and culverts.
Early Warning Systems: Safety equipment for fishing boats, coastal signal lights, and siren systems.
Awareness Initiatives: Awareness-raising billboards and digital display systems.
Improving Health: Instrument support for community clinics and health organizations.
Tree Plantation: Swamp, roadside, and mangrove
Lighting Solutions: Lightning sheds and arresters plantations.
Climate Resilient Livestock Solutions: Hydroponics.
Enhance Adaptive Capacity: Shuhashni Sales Centers.