Prosperity Fund Creating Conditions for Global Growth Turkey Programme Strategy ( )

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1 Prosperity Fund Creating Conditions for Global Growth Turkey Programme Strategy ( ) Contents Introduction & Context Programme Objectives and Indicators General Guidance Notes Programme Structure Further Information & Timeline

2 Prosperity Fund Introduction & Context The Foreign and Commonwealth Office (FCO) aims to create conditions for global growth through i) supporting an open, transparent and strong rules-based international economic system; ii) encouraging global security through working towards a low carbon economy, resilient energy markets and iii) promoting science and innovation as solutions to global challenges. The FCO uses a number of strategic funds and programmes such as the Prosperity Fund in order to support sustainability, openness and trade opportunities. The main thematic areas of the Turkey Prosperity Fund (PF) continue to be; i) Open Economy, ii)energy Security & Efficiency and iii)climate Change. Under these thematic areas, the new strategy focuses on the national/local needs of Turkey and also seeks and create benefits for the UK. For this purpose, global and international developments affecting the region (such as Climate Change negotiations for the post-2020 regime, G20 Presidency, Development Southern Energy Corridor etc.) have been taken into consideration as well as UK policy and commercial objectives. Another important aim of the Programme is to engage local and regional projects across all thematic areas, particularly in the South-eastern provinces of Turkey and close to the Syrian border where there is a growing need for prosperity and security work. Turkey PF will place special emphasis on the following topics (see box below) which will help deliver the FCO s overall goal of sustainable global growth and also support Turkey s priorities. Turkey s G20 Presidency in 2015 Support the upcoming economic reform package to help the development of an establishment-regulated market economy and introduce further incentives for private sector investments Challenges confronting Turkey in its quest to accede to the European Union Support energy and resource security in Turkey and the Southern Energy Corridor Support Turkey to have a clear and strong position at the Paris COP 21 Adapting to climate impacts and transitioning to lower-carbon pathways PF will continue to work in close cooperation and develop synergies with the GREAT Campaign which aims to deepen business and education links between Britain and Turkey. Also, PF will promote UK as an international partner of choice and seeking opportunities for commercial collaboration. 1. Open Economy - Working for a transparent and strong rules-based international economic system: PF Turkey aims to i)support the establishment of transparent and stable regulatory regimes; ii) promote the economic policies that underpin strong, sustainable, balanced and low carbon growth, and ii) to encourage openness in trade and investment, discourage protectionism and strengthen the multilateral trading system. Encouraging Turkey to adopt a freer approach to trade will help make industry more competitive, offer more opportunities for companies to trade in the Turkish market, and allow closer economic integration across the region. As Turkey will assume the G20 Presidency in 2015, strong emphasis will be placed to the projects which support Turkey to lead the process in a more innovative and cooperative manner. Furthermore, the upcoming

3 Turkish domestic economic reform package will reportedly cover enhancing internal audits and measures to prevent illegality and suggest new incentives for the private sector. The projects supporting and facilitating the reform decisions (and also the FCO priorities) will be given priority under this strand. 2. Energy Security & Efficiency - Working for resilient energy markets and better functioning of global energy markets: Global Energy Security and Efficiency is the backbone of all stable economies, whereas energy consumption is one of the major GHG emission sources. Therefore, PF aims to deepen engagement with energy producers and build support for open and effective international energy markets. This includes encouraging low-carbon growth; improving the reliability of energy supplies; phasing out fossil fuel subsidies; promoting alternative energy sources and improving energy efficiency. Furthermore, Turkey, as an aspiring secure energy corridor, has an important role to play in enhancing EU and regional energy security. Thus, priority will be given to the projects which are related to the Southern Gas Corridor as an initiative of the European Commission for the gas supply from Caspian and Middle Eastern regions to Europe. PF will also support the development of Turkey s own energy sector and the contribution that this can make to the better functioning of global energy markets. 3. Climate Change Working a low carbon economy, and promoting science and innovation as solutions to global challenges: In order to mitigate the effects of the climate change, there is an urgent need to transform the global economy to a low carbon economy. Achieving this will depend to a large extent on agreeing and implementing an ambitious, comprehensive and equitable global framework agreement at the UN. We will only secure the political will to do this once leaders are confident that climate policies will not undermine their growth, prosperity and security objectives. Turkey can make a significant contribution to international efforts in tackling climate change as an advanced emerging economy. We want to support the development of policy or legislation that speeds up Turkey s transition to a low-carbon economy. This includes follow-up to Turkey s National Climate Change Action Plan; deeper EU-Turkey cooperation on climate change; efforts to improve delivery mechanisms on energy efficiency, renewables and carbon markets. Priority will also be given to the projects supporting Turkey to define strong position on the way to Paris COP 21 which is a decisive stage in negotiations on the future international agreement on a post-2020 regime.

4 Fund Objectives & Indicators Objective Indicator Detail 1. Strong, stable and sustainable economic growth in Turkey supporting the global economic recovery and global prosperity. a) Turkey undertakes reforms to reduce barriers to trade and cut protectionism. b) Turkey promotes policies aimed at increasing the ease of doing business. Proposals should emphasize the importance of open and free trade, highlighting the benefits of reaching a settlement on the Doha Trade round as early as possible and emphasise the role the Turkish Government can play to drive this in the G20. Proposals should demonstrate to key stakeholders that a more free system of trade would deliver gains for Turkish society. Proposals should demonstrate to Government stakeholders the benefits of cutting regulation and opening up Turkey to investment. Proposals should highlight clear prosperity gains that can be made, and as far as possible be in line with EU accession goals. 2. Enhanced energy security through development of Turkish energy corridor and energy sector. 3. Further action to tackle climate change through low-carbon economic development in Turkey. c) Turkey undertakes reforms that cut the size of the unregistered sector, and foster growth. d) Turkish public and private sectors increase use of environmentally sustainable technologies. a) Turkish Government and / or commercial entities implement measures to develop a secure energy corridor through Turkey. b) Further policy development, implementation and / or outreach in support of Government efforts to re-model Turkey s energy sector. a) Turkish Government contributes to an international climate deal through new policies, actions and / or legislation. b) Improved public and private sector low carbon delivery, including sector-based implementation, Government messaging and finance flows. c) Strategies or legislation adopted which bring Turkish low carbon policies into line with EU criteria sooner rather than later. Proposals should promote the importance of cutting the size of grey economy by reforming and enhancing revenue collection. They should highlight the benefits of this policy for wider societal goals and convince Government stakeholders of the net gain that a more open and transparent economy would deliver. Proposals will encourage the adoption of sustainable technology across all sectors and should emphasise the benefits of such technology to both Turkish society and the economy. Proposals should highlight the benefits of technology transfer to Turkey Proposals should support Government efforts on issues such as pipeline security; energy storage / stocktaking; transit regimes; or security of supply. Any studies or reports should be endorsed by the Turkish Government and have a bearing on policy decisions. Proposals should build on existing legislation and look to find ways to help deliver, update, or enhance it. Areas to focus on include energy market liberalization (electricity & gas); implementing energy efficiency / renewables legislation; or the deployment of alternative technologies in the sector. Proposals should be relevant to policy development and have Turkish government support. Includes projects which follow up on Turkey s National Climate Change Action Plan; National Communication; or other national plans / strategies. Proposals should focus on the implementation of low carbon measures in Turkey, convincing decision makers that there are clear prosperity gains (e.g. on energy efficiency, carbon markets, and transportation policies). Includes work to bring about Government messages on the lowcarbon transition and projects which support the deployment of climate finance. Proposals should aim to identify areas which increase the pace of Turkey s EU accession efforts under the Energy and Environment Chapters (e.g. on emissions trading). They should be able to demonstrate a clear transition to EU low carbon policy or a Turkish contribution towards it (e.g. on renewable energy, energy efficiency).

5 General Guidance on Project Proposals Proposals should demonstrate that they will trigger further incremental action. Experience has shown that the best way to do this is to work towards high level policy change, build capacity in a sustainable way, translate evidence or analysis into action plans and work closely with host governments. Ensuring projects are sustainable is essential. Proposals must outline a clear link to the Fund s context, objectives and indicators. We encourage you to link your proposals with relevant strategy documents as well (such as National Climate Change Action Plan, 10th Development Plan, Sustainable Development Plan, EU Progress Reports, EU acquis etc...). Indicators of success and outputs must be measurable and carefully aligned to the overall project purpose. Activities should be designed to deliver specific outputs. Proposals can aim to deliver against more than one of the Fund s indicators or objectives. Proposals must be able to demonstrate that the direct beneficiary of the project is Turkey. They must be administered with the promotion of Turkey s overall economic and sustainable development as their main objective. Project designs must outline a strong plan for engagement with stakeholders and beneficiaries. We would particularly welcome projects that target state organisations as the beneficiary of the projects. Projects developed in direct consultation with state organisations, to increase the governmental buy-in, at the concept stage and arising out of strong demand-driven process will be preferred. Project implementers can include NGOs, government or business entities. A typical project would involve an NGO or business implementing a project on behalf of a Government institution. We are open to different project stakeholder relationships, but working with governments and official bodies is more likely to result in high impact, transformational outcomes which outlive the duration of the project. We give special importance to TR-UK partnerships so we strongly encourage you to consider utilizing bilateral cooperation opportunities by engaging British partners. Proposals focusing purely on research, analysis, seminars or workshops will not be relevant unless they lead to specific and measurable action. However we put special emphasis on projects which utilizes science and innovation components as a driver of growth towards a low carbon economy. Proposals must make clear that they are adding value to, and not duplicating other donor activity. FCO funding may be used to leverage co-funding from other donors. Co-funded projects are particularly welcomed. Proposals should include any publicity, dissemination and outreach activities in the budget from the outset. Any media work should be directly related to the project proposal and is subject to securing approval from the FCO in advance.

6 Fund Structure in Turkey 1. The Prosperity Fund in Turkey is managed by the British Embassy, Ankara. Information about bidding rounds is published on the Embassy s website: https://www.gov.uk/uk-prosperity-fund-turkey 2. Bidding rounds are split between a concept and full bid stage. Projects are selected by a Programme Board which includes representatives from the British Embassy, the FCO as well as other relevant governmental departments. 3. Proposals should be submitted to the Embassy on the standard FCO bidding form (available on the Embassy and FCO s websites). Organisations looking to submit a bid are strongly encouraged to talk to the Prosperity Fund Project Coordinator in the British Embassy at an early stage. We will make payments to project implementers only in arrears on a quarterly basis and not in advance. Project administrative costs (not including consultancy or expertise fees) should be less than 10% of the overall budget. Please refer to our financial management guide and activity based budget template when designing project budgets. 4. The FCO places a strong emphasis on programme and project-level evaluation. Implementing organisations must submit quarterly progress reports for the duration of the project, and submit a project completion form within three months of the project conclusion. Please refer to our quarterly progress report and project completion report templates to have an idea about the reporting procedure. 5. We are looking for projects which start to run as of March 2015 until 31 March 2016 (the end of the UK s financial year). Funding cannot be guaranteed after this point. We will, however, consider modular project bids which offer the opportunity to approve further work into Please discuss with the Project Coordinator. 6. All Proposals should: Outline a clear impact. We want to know what changes the project will make. Demonstrate that host governments have been consulted and are supportive or if they have not, the bid should explain how the project has sufficient buy-in from the necessary stakeholders to deliver the expected outcomes. Demonstrate that local partnerships are already established. 7. Timeline Open Call for Concept Bids: 11 November 2014 Deadline for Submission of Concept Bids: 19 December 2014 Call for Full Bids 19 January 2015 Deadline for Submission of Full Bids 10 February 2015 Contracting of the Projects March 2015

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