Resilience Planning and Project Finance Process:
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Draft Initial Project Concept Note

Urban Resilience Roadmap
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Draft Initial Project Concept Note
Introduction Competencies/Skills Tools Tips Supporting Entities Potential Outputs
Introduction

At this stage of the process cities move from plans and strategies to action and implementation.  The output of phase 2 was a shortlist of project ideas based on their resilience plans, and so the next task is to begin to give form and structure to the project ideas.  However, cities should bear in mind that project design can be an expensive, time-consuming, and resource intensive process.  Poor project design can lead to delays in the delivery of financing, or even outright rejection by financiers.  Therefore, for efficient use of resources, the city must also do its due diligence to demonstrate that the project is an urgent need, and that funding the project should be a priority. 

The first 5 steps described here provide details about developing a concept note (in some cases referred to as a prefeasibility study).  The concept note is not required in all cases, but can help in testing whether the project is a sound investment before a large amount of resources are committed for project design.  The project concept or prefeasibility study is also used to market the project concept to potential financiers and in some cases to come to an initial agreement to provide funding for the project.

A city can start the process by drafting an initial concept note elaborating the project idea.  The initial draft may contain an overall project concept, identify potential locations, propose a timeline, identify stakeholders and basic implementation arrangements, and outline the expected budget.  The initial draft can serve as a roadmap for the prefeasibility assessment, data collection, and initial design.

The initial concept note may include some or all of the following information:

  • General description of the problem to be addressed;
  • Project objectives;
  • Description of beneficiaries;
  • General description of project results and impacts;
  • Estimate of project cost; and
  • Alignment with financier objectives

A note on transformative change and paradigm shift

An important part of the initial concept note is to consider elements of transformational change or paradigm shift that are going to be a part of your project.  This is an extremely important aspect of Green Climate Fund and Adaptation Fund projects.  Transformation is defined as “a major shift in characteristic features and functions, resulting in a fundamentally new system of process, whether economic, social, or ecological” (Mapfumo et al 2015:3).  Transformational change has several characteristics, including:

  • The engagement and mobilization of diverse stakeholders as change agents.  This allows the process of transformation to be internally driven, as stakeholders understand the value of resilience building processes.
  • Learning-centered approaches which foster ownership in the change process and in which communities are encouraged and empowered to self-mobilize.
  • Introduction of new or improved technologies that can be managed at the city or neighborhood level.
  • Enhancing efficiencies in the use and management of existing options

At this stage cities should consider how the proposed project supports the strategic areas of change that were identified in Phase 1, as well as the ideal state or vision that was identified in Phase 2. 

The initial concept note should be no more than 2-5 pages.  

Tools/Resources
Tips
  • The initial concept not should clearly reference the potential project’s consistency with the strategies and plans described in phase 2; 
  • The initial concept note should reference the priorities of the targeted financier and explain how the project advances those priorities; and
  • Some financiers provide grants and technical assistance for prefeasibility studies and project design.  Cities should discuss this possibility in consultations with potential financiers.
Supporting Entities/Processes
  • ADB;
  • CDIA; and
  • USAID Adapt Asia-Pacific
Potential Outputs
  • Initial concept note