The finalized project note is a key milestone in the project preparation and finance stage.  Before submitting the project concept to potential financiers (if required), the city team should conduct a final review of the logic of the project as well as the cost estimates.  The city should also obtain commitment from the various agencies and organizations that will be involved in implementing the project.  Lastly, the concept should be endorsed by the city government and other mandated government agencies.

Once the project concept is finalized, the city will submit it to the target financier for consideration.  The financier may have many questions and comments, which the city will need to respond to on a timely basis.  These questions may be in regard to the rationale for the proposed concept, the technical or financial feasibility, or the capacity of the city to implement the project and manage risks.  Financiers may also request that the city revise its concept to comply with the internal requirements of the financier, procedures for approval and submission, or any other procedural and administrative requirements.  In many cases there are multiple rounds of questions before the concept is approved.

In the case of the Adaptation Fund, the board may decide, based on the concept note, that the project will be funded and request for full proposal.  In the case of the Green Climate Fund, while the board does not approve project concepts, it may provide a project preparation grant to develop the project based on the concept note.

It is important to remember that approval of the concept note does not guarantee that a project will be funded.  Ultimate funding depends on rigorous and quality project design, which is the subject of the next four steps.