The assignment applies ADB’s CAIP TA framework and involves conducting strategic Climate Risk and Adaptation assessments (CRAs) and developing a bankable pipeline of adaptation projects for public and private financing. For both Lao PDR and Timor-Leste, the CRA and CAIP are developed with a strong emphasis on IWRM and involve water resources modelling. The assignment also includes knowledge sharing and enhancing the capacity of government agencies on the topic of CRAs and evaluating adaptation investment projects.

ADB is committed to supporting its developing member countries in scaling up climate action. As part of this commitment, ADB is implementing TA 10098-REG: Bridging the Gap between Climate Adaptation Planning and Financing, also known as the Climate Adaptation Investment Planning (CAIP) TA. The CAIP TA aims to enhance the capacity of developing member countries (DMCs), to identify climate adaptation investment priorities to catalyze financing for adaptation and resilience. The TA delivers three outputs: (i) climate adaptation investment plans developed; (ii) appraisal of climate adaptation projects improved; and (iii) regional knowledge on climate adaptation investment planning strengthened.

The CAIP TA applies a five-step process for climate adaptation investment planning: (i) reviewing country and sector context, including national development plans and strategies, climate policies including the National Adaptation Plan (NAP), Nationally Determined Contribution (NDC), or equivalent adaptation plans; (ii) undertaking more granular climate diagnostic for selected national adaptation priorities; (iii) prioritizing adaptation investments; (iv) linking with public financial management systems; and (v) identifying appropriate financing opportunities.  The CAIP TA brings together different relevant ministries, especially the finance and planning ministry, the respective sector ministry, and the environment ministry. In addition, the implementation process closely collaborates with relevant development partners active in the adaptation space in the country, the private sector, and civil society organizations.

FutureWater was engaged by ADB to develop the climate adaptation investment plans and underlying Climate Risk and Adaptation assessments (CRAs) for selected river basins in Lao PDR and Timor-Leste. Both the CRAs and the investment plans are approached from a multi-sector perspective and strongly adhere to IWRM principles. Water resources modelling (WEAP) is employed to relate water supply and demands in an integrated framework under different scenarios, in addition to extensive mapping of climate hazards, exposure and vulnerability across the study areas, making use of a combination of state-of-the-art global data and tools and locally-sourced information. The investment plans involve mapping and assessment of current and planned investments within the river basins, including nature-based solutions and green-gray infrastructure, followed by an identification of adaptation opportunities and subsequent prioritization. The results of the CAIP process for Lao PDR and Timor-Leste are expected to support the country’s national adaptation priorities into concrete, investment-ready plans and securing the necessary funding for their implementation.