FEATURE ADDRESS BY HON. V. NAZIM BURKE AT OPENING OF WORKSHOP ON “IDENTIFICATION OF COUNTRY PRIORITIES FOR THE FIFTH ROUND OF FUNDING OF THE GLOBAL ENVIRONMENT FACILITY (GEF-5)” Salutations I am honoured to have the privilege to address this Workshop on behalf of the Government of Grenada. I take the opportunity to formally welcome the team from UNDP Barbados office and wish that you will enjoy your stay in Grenada during the next two days. It is certainly difficult to be away from work and your families as you either attempt to wrap up final activities in your work plans, prepare for the festive season or the annual family vacation. Your presence here today is indeed a testimony to your commitment and dedication to serve and we are indeed grateful for that. As you may be aware, The Global Environment Facility unites 182 member governments — in partnership with international institutions, non-governmental organizations, and the private sector — to address global environmental issues. You may also be aware that the GEF provides grants to developing countries and countries with economies in transition for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. These projects benefit the global environment, linking local, national, and global environmental challenges and promoting sustainable livelihoods, and these issues are indeed relevant to us here in Grenada. With this in mind, I want to use this opportunity to establish the context within which I believe your deliberations and considerations should be approached with respect to GEF -5 Grenada along with other developing countries continue to experience the brunt of a severe global economic and financial crisis. We in Grenada have had to contend with a stronger than expected decline in our GDP to 7.7% in 2009. The depressed economic situation placed significant pressures on Government’s revenues despite efforts to strengthen collections. We have to reduce capital expenditure to keep in line with revenues. Nevertheless, Government’s primary deficit remains relatively significant. The economy has remained sluggish during the year as key sectors such as Tourism, Agriculture and Construction are yet to recover due to lack of any sustained economic recovery in the United States and Europe, our two major trading partners. This is evidenced by the suspension of capital flows for tourism related construction projects and reduction in tourist arrivals and visitor earnings. However, it is expected that a much smaller decline will be recorded in 2010 as the macroeconomic situation stabilize. In an effort to stimulate the economy, the Prime Minister recently announced a ‘stimulus package’ in September where among other things, Government granted a number of concessions on the VAT and Excise Tax. I am happy to report, that although Government revenues may have taken a ‘hit’ as a result of this, positive signs have been seen; for example in the construction sector, the prices of selected construction inputs, such as cement, lumber and steel, have started falling. It is hoped that this will translate into more activity for the sector. As always, Government is concerned about the effects of the economic situation on the poor, disadvantaged and dislocated, hence the major attention currently being given to social protection through improved safety nets and improved benefits from places like the National Insurance Scheme. You would recall that I reported one of the key findings of an independent assessment of safety nets in Grenada, is that as a proportion of national income, Grenada has the highest level of safety nets in the Western Hemisphere. The present situation poses many serious challenges for us as a small island developing state. Yet, our spirit cannot be daunted. We must try to find ways to convert our adversity into opportunities. We must adopt creative and innovative approaches to enable economic growth and address social and livelihood issues which could ultimately impede that economic growth we seek to create. We must partner with the private sector, the NGO community and organizations at all levels – locally, regionally and internationally. This imperative finds a natural fit with programmes such as the Global Environment Facility, which we are here to discuss today. We must therefore work diligently to take full advantage of such programmes and the funding opportunities that they present. In the circumstances, we regard this Workshop as extremely is timely as we move into the GEF-5 funding cycle and as Government continues to rely heavily on multilateral support to implement its programs and close the financing gap in this difficult economic environment. The resources allocated to Grenada under the GEF 5th cycle (US$4.66 million) will go along way to finance initiatives to address major issues relating to climate change, bio-diversity and land degradation. We welcome this assistance and assure you that all efforts would be made to ensure full draw down of funds within the four (4) year implementation period. We hope to use projects that are intended to have positive results in the areas of the environment, poverty reduction, and capacity development; and meet the criteria set out by the GEF. We are mindful that in the past we have not fully utilized the resources allocated to us by the GEF. In fact, our record under GEF 4 is nothing to be happy about. In light of the present economic situation every dollar given to us by our multilateral friends’ counts, more so we must be reminded that GEF funds are Grants given at absolutely no cost to us. Notwithstanding our performance with the large GEF portfolio, we have demonstrated over the last two years under the GEF Small Grants Program (GEF SGF) that with dynamic leadership and strong commitment we can achieve a dramatic turn around over a short time. Over the four year period the GEF Small Grants Program were able to catalyzed resources totaling US$800,000 of which 60 percent occurred in the last two years where Grenada was able to move from the worst performer among Barbados and the OECS to overtake Barbados as the best performer. Our performance under the Small Grants Program has had positive impacts on small communities through employment generation, capacity building and assisting Grenada to meet its national and international environmental commitments. This ladies and gentlemen is what we want to see repeated again and again not only with the Small Grants Program but the large GEF Portfolio also. Therefore, our Mantra for the next four (4) years should be performance and results. We understand that if we are to continue to improve our performance, there is a need to look at capacity at all levels. We have agreed to hire a full-time Community Program Officer for the GEF Small Grants Program and elevate the current National Focal Group to a National Steering Committee. Government has also agreed to channel US$ 1 million of our STAR Resources over the next Four (4) years to the Small Grants Program. By doing so Government has made available to Community Based Organizations a fast delivery grant mechanism that would provide resources for projects and as such we urge Community Organizations to make maximum use of the resources available. However this is not all, for we still have US$ 3.66 million to utilize under the large GEF portfolio and that is exactly the reason why we are here today. We are here today to identify priorities for investing this sum of monies. We understand that it takes about 18 to 22 months to develop a large or medium size GEF project. However we are determined just as we turned around our performance under the Small Grants Program to significantly reduced the time it takes to get a large project approve under the GEF-5. Therefore, in the true spirit of cooperation and partnership, we have here today representatives from UNDP and the GEF Small Grants Program to assist us in identifying priorities and advancing the project preparation process. We intend to do all it takes to improve on our 10 percent delivery rate under the large GEF program. In this regard, I urge all participants to take the workshop serious and participate to the fullest to ensure that we have a very successful outcome. I wish to acknowledge the unique partnership among the GEF donor countries, recipient countries such as Grenada and implementing agencies all working together with the aim of achieving the objectives of the Multilateral Environmental Agreements (MEAs) under the various Conventions including the Rio Convention. We believe this to be an effective arrangement for ensuring that the developed countries assist developing countries to address environmental problems caused primarily by their actions. Though the GEF have had many successes, we believe that there must be a more equitable allocation of resources between the more developed GEF recipient countries and the lesser developed vulnerable recipient countries such as Grenada. As chairman of OASIS, we believe that there must continue to be a recognition and acceptance of our unique vulnerabilities and as such special consideration must be given to Small Island Developing States (SIDS) and the Lease Developed Countries engaged in the GEF partnership. In this regard, I thank the GEF for introduction of the System for Transparent Allocation of Resources (STAR) which is designed to be more flexible than the old Resource Allocation Framework used in the GEF-4 cycle. We also asked that consideration be given for further simplification of the rules and procedures for accessing GEF funds; support to national project planning and implementation units and an improved mechanism to foster country driven engagement with the GEF. Chairman, I wish to reiterate our commitment to improving our performance under both GEF Small Grants and GEF large portfolio. Therefore as you work at this workshop to redefine the priorities for the GEF over the next four years I challenge you to be creative and practical against the circumstances that we face. Let us make good of this excellent opportunity. I also want to challenge the UNDP, the GEF SGP and the other donors to assist Grenada in meeting its development challenges over the next 4 years. I thank you for your support so far. I also want to take the opportunity to thank the many volunteers and all who have been working with CSOs through the Grenada GEF SGP National Focal Group. Your contributions have been significant in helping us reach where we are today. And as I end, I want to take this opportunity to extend best wishes to everyone in this Christmas season. Make it a season of peace, joy, and happiness. I wish you a successful workshop. I thank you.