Reporting Format for Incremental Cost

1. Each project proposal submitted to GEFOP will show how the approach to estimating incremental cost would be applied and will provide preliminary estimates of the incremental cost. This proposed application will be set out according to the steps below. Subject to GEFOP technical clearance, the Implementing Agency will then apply the approach in the agreed manner during project appraisal.

2. The Secretariat is working with the Implementing Agencies to prepare paradigm cases of incremental cost analysis. These are being prepared in accordance with the approved approach and reported in this standard format. They are based on material from PRINCE case studies, GEF projects, and GEF project proposals, and (where no other source exists) hypothetical situations. The paradigm cases will cover the major situations envisaged under the Operational Strategy, e.g. the four focal areas, and special situations such as barrier removal, biodiversity protection, and private sector operations. The paradigm cases will be used by the Secretariat for staff training and by the Implementing Agencies to assist operational work.