Country: Somalia Initiation Plan

Transcription

1 United Nations Development Programme Country: Somalia Initiation Plan Project Title: Initiation Plan Renewable Energy Expected CP Outcome(s): Somali women and men benefit from increased sustainable livelihood opportunities and improved natural resources management. Initiation Plan Start Date: 10 July 2017 Initiation Plan End Date: 31 December 2017 Implementing Partner: UNDP (Direct Implementation Modality DIM) Project Gender Marker Score: 3 Project has gender equality as a principal objective. 2 Project has gender equality as a significant objective. 1 Project will contribute in some way to gender equality, but not significantly. 0 Project is not expected to contribute noticeably to gender equality Brief Description The main objectives of the project initiation plan is to finalise a UNDP project document for the promotion of clean energy in Somalia, convene an Investment Summit on Renewable Energy and provide technical support for the installation of solar energy systems at public buildings. Programme Period: Key Result Area (Strategic Plan): Sustainable Development Pathways Atlas Award ID: Project ID: PAC Meeting Date: 5 July AWP budget (USD): 256,300 Total resources required: 256,300 Total allocated resources: 256,300 Regular: 256,300 Other: 0 Unfunded budget: 0 Government (in-kind): 0 Agreed by Government: Agreed by UNDP:

2 I. PURPOSE There are a number of challenges Somalia faces in the energy sector which are constraining its development that require a profound and fundamental response. These key challenges include: Low-electricity Access: Only 15% of the population has access to electricity and those who have electricity access are concentrated in urban centres. Only less than 5% of people in rural areas have electricity access and the situation in IDP camps is even lower than rural areas. These energy access levels are amongst the lowest in the world and significantly below the energy access levels in Sub-Saharan Africa; Low levels of access to modern thermal energy: About 96% of the population relies on solid fuels with urban and wealthier households using charcoal or LPG for cooking and with population that is rural or based in IDP camps using primarily firewood for cooking. The indoor air pollution caused by combustion of firewood is resulting in health issues causing an annual rate of pre-mature deaths of about 11,300 mostly affecting women and children; High-levels of fossil fuel use: The electricity systems in Somalia are primarily powered by diesel and HFO despite the country having excellent renewable energy resources of solar and wind energy. Urban and wealthier households cook with charcoal or LPG with population in rural areas and IDP camps relying on firewood. While charcoal and firewood are local and can be classified as renewable biomass, the charcoal production in Somalia is unsustainable and results in over-exploitation of woody biomass resources resulting on significant annual loss of forest cover; Un-affordable and un-reliable energy services: The electricity tariffs in Somalia are among the highest in the world and similarly unit costs of cleaner cooking alternatives such as LPG and Charcoal are also considerably high. The upfront costs of obtaining an electricity connection is also very high. Despite the higher tariffs the electricity supply remains of poor quality with periods of black-outs and variations in voltage and frequency. These high costs coupled with low quality energy is limiting the access by businesses and households to modern forms of energy. This lack of access and the high costs are severely limiting the utilisation of electricity for economic development; Limited Policy Direction and Regulatory Oversight: The current energy sector electricity and fuels is dominated by a small number of private stakeholders which operate under limited government oversight. While there have been efforts to self-regulate especially in terms of tariffs, the current environment does not safeguard or protect the interest of the consumers especially households or businesses. This absence of policy and regulatory oversight constraints the ability of rural Somalis and IDPs to access modern energy services. These energy sector challenges pose serious challenges to Somalia to meet the Sustainable Development Goal (SDG) 7, target of universal access by 2030 to affordable, reliable and modern energy services. The continued unavailability of affordable and reliable energy services to key economic sectors such as agriculture and services has also resulted in limiting the economic growth in Somalia. This constrained economic growth is also limiting the achievement of targets under SDG 8 of promotion of inclusive and sustainable economic growth, employment and decent work for all. While both the absolute and per capita the Greenhouse Gas (GhG) emissions for Somalia are low, switching from a fossil fuel powered energy system to one that is predominantly based on efficient use of locally available renewable energy sources would support the achievement of SDG 13 to take urgent action to combat climate change and its impacts. The energy sector challenges in Somalia therefore are severely constraining the ability of the country to meet SDG 7 as well as limiting the economic growth targeted under SDG 8 and limiting efforts to combat climate change under SDG 13. The lack of access to affordable and reliable energy services are also constraining the services provided by clinics, hospitals and schools affecting the achievements of the targets under SDG 3 on health and SDG 4 on education respectively. 2

3 Additionally, the impacts of lack of access to reliable sources of energy is disproportionately affecting Somali women and youth due to indoor air pollution related loss of life and involvement in the supply chain for solid biomass fuels. The lack of access to electricity as well as safe and modern thermal energy is more acute with rural Somalis and IDPs more than Somalis living in urban areas. Access to reliable energy services by these excluded groups will help to ensure increased economic activity, employment generation and poverty reduction in Somalia. The accumulating deficit in Somalia in the expansion of affordable modern energy sources and rudimentary state of the existing energy distribution systems calls for a strategy for that is based on the following two principles: a) Improve access to energy with the objectives of maintaining peace, bringing social equity amongst vulnerable groups, particularly, among women, IDPs and children, creating employment, ensuring affordability, triggering economic growth and building resilience. b) Diversify the energy mix with the gradual reduction on reliance on the fossil fuels and biomass by introducing alternative sources of energy, including, solar and wind. UNDP considers promotion of renewable energy a promising solution for the achievement of more than one SDGs in Somalia. Therefore, UNDP will support the Government of Somalia to come up with a comprehensive package of activities that can address key barriers to the promotion of renewable sources of energy in the country. This Initiation Phase will help in formulation of the detailed project document, convening of a multistakeholders Investment Summit on Renewable Energy and provide technical support in installation of solar energy systems in public buildings. II. EXPECTED OUTPUTS Following three outputs are envisaged during the initiation phase: Output 1: Clean Energy Project Document that encompasses: 1) Establishment of an enabling environment to overcome policy, institutional, capacity and financial barriers to the promotion of clean energy in Somalia; 2) Improve energy access for social service and household uses, particularly, for the disadvantaged population groups; 3) Implement finance and business models, in partnership with private sector and financial services companies, to support wider application of clean energy systems Output 2: Hold a Clean Energy Investment Summit for Somalia Output 3: Provide Technical Support for Installation of Solar Energy Systems in Public Buildings (Note: this output does not include the costs of equipment) III. MANAGEMENT ARRANGEMENTS The PIP will be managed by the programme team. Project Manager, Environment and Energy, will be the project manager for Initiation Phase. The programme team will also provide project support functions. International and national consultants with clear terms of reference will be hired for specific tasks under both outputs. The project will follow the established processes of the country office for approval, management, oversight and accountability and reporting and operations management processes. The draft project document will be prepared in consultation with relevant institutions of the government, development organisations, donors and private sector. A UN wide approach will be followed for output 2 working closely with the Office of the Special Representative of the Secretary General for Somalia (SRSG). Output 3 activities are to support installation of solar energy equipment at public buildings in Mogadishu. This will only be technical support and the solar equipment have been procured from other sources. 3

4 Project Organisation Structure Project Board Senior Beneficiary (MoP, OPM, MoE) Executive (UNDP) Senior Supplier (UNDP, Donors, UNDP RH & HQ) Project Assurance PREP Programme Project Manager Project Support NHDR Development Response 1 Project Development Response 2 Project IV. MONITORING A description of the monitoring requirements for the Initiation Plan. Please refer to the Section 2.3 Monitoring Framework and Reporting under the process Initiating a Project, to determine how the output and associated activity results shall be monitored, reviewed and assessed, depending on the scope and duration of the Initiation Plan (i.e. an Initiation Plan with a 9 months duration to start-up pilot activities shall require the combination of various monitoring tools and mechanisms, as opposed to a short Initiation Plan established to hire a consultant for the finalization of the Project Document). As minimum requirement, a Progress Report should be prepared at the end of the Initiation Plan, using the standard format available in the Executive Snapshot. 4

5 V. ANNUAL WORK PLAN Year: July to December 2017 EXPECTED OUTPUTS And baseline, indicators including annual targets Output 1: Clean Energy Project Document formulated Baseline: Renewable Energy Readiness Assessment Report for Somalia Indicators: Project Document approved in 2017 Targets: Project with time-bound implementable actions for promotion of clean energy PLANNED ACTIVITIES List activity results and associated actions TIMEFRAME (2017) RESPONSIBLE PARTY Q3 Q4 Funding Source PLANNED BUDGET Budget Description 1.1. Formulation of Clean Energy Project Document X X UNDP TRAC International Consultant Stakeholders Meetings Travel Subtotal Output 1 Amount USD 51,000 USD 8,000 USD 11,000 USD 80,000 Output 2: Investment Summit on Renewable Energy Baseline: Potential of Private Sector Investments in Renewables is high in Somalia Indicators: Road map for investments in Renewable Energy technologies Targets: International Summit to come up with a clear futuristic road map for investments in Renewable Energy technologies 2.1 Investment Summit on Renewable Energy X TRAC Sub-contract (Event Management) National focal point (govt and UN appointed) Travel Sundries Subtotal Output 2 USD 70,000 USD 10,000 USD 15,000 USD 5,000 USD 100,000

6 EXPECTED OUTPUTS And baseline, indicators including annual targets Output 3: Technical Support for Solar Energy Systems Installation Baseline: Solar Energy Systems procured for 5 Public buildings Indicators: # of Public buildings to have reliable source of energy Targets: 5 public buildings using solar energy systems PLANNED ACTIVITIES List activity results and associated actions 3.1 Installation of Solar Energy Systems at Public Buildings (technical support) TIMEFRAME (2017) RESPONSIBLE PARTY Q3 Q4 Funding Source PLANNED BUDGET Budget Description X X TRAC Sub-contract Transportation / offloading Travel Training Subtotal Output 3 Amount USD 25,000 USD 6,000 USD 3,000 USD 6,000 USD 40,000 TOTAL DPC Premises USD 7,700 Security M&E USD 5,500 USD 11,000 Communications USD 2,200 Operations Support USD 9,900 Subtotal 36, GRAND TOTAL USD 256,300 6

7