GUIDELINES FOR THE PREPARATION OF A CONCEPT NOTE

Transcription

1 GUIDELINES FOR THE PREPARATION OF A CONCEPT NOTE 6 th Call for Proposals Cosme de Arana EEP Mekong training on the preparation of a concept note July 2016 Hanoi and Ho Chi Minh City, Vietnam

2 SUPPORT NEEDS ASSESSMENT Major reasons for rejection of CN from Vietnam on CFP-5: Business plan - Sustainability / up scaling Additionality of EEP funds Results of the survey (on-line questionnaire) Business plan 78% (of the PD considers it as a highly needed) Sustainability / up scaling 78% RBF 69% HRBA 68% * Other requests: sample of successful concept notes

3 TABLE OF CONTENTS: 1. Project Overview a) EEP co-financing and own contribution b) Technical focus and technology application c) Project concept 2. Project Information a) Problem identification/analysis b) Result Chain c) Business plan. Sustainability, Replicability, and Scalability d) Development Impacts: Human Rights Base Approach and Cross Cutting Objectives e) Business innovation f) Implementation Plan

4 TABLE OF CONTENTS: 3. Financial Information a) Project budget b) Financial sources c) Result Based Financing (RBF) 5. Applicant Information Application Process Q&A

5 Concept Note Guidelines. Only a summary of the various aspects of the project idea, which will be further elaborated in the Full Project Proposal stage Concise and credible plan that can be quickly and easily interpreted by readers who are not familiar with the project Give an initial opinion as to whether the project is bankable / has investment potential and may be suitable for further consideration / further development work / support and advice from EEP Mekong A full Business Plan document complementing the Executive Summary included in the CN application form is not mandatory at this stage, but can be attached as separate document for additional information.

6 1. Project Overview On line application form:

7 1. Project Overview On line application form: Guidelines Download and calculator

8 1. Project Overview Mock Case Study: Solar Water Pumping System for Irrigation in remote areas of Myanmar All the information is fictitious with the purpose to show how to complete the form. Pay-as-you-go Solar Energy for Irrigation in Tanintharyi

9 1. Project Overview EEP co-financing and own contribution 1,211,200

10 1. Project Overview EEP co-financing and own contribution 1,200,000 EEP Max Co-financing 1,000, , , , ,000 EEP On-line Budget calculator: ,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 Maximum EEP contribution for a Project of X(Z) size = [x(1)*y(1)] +. + [(x(n)-x(n-1))*y(n)] +. + [(X(Z)-X(Z-1))*y(Z)] n is every stretch of the project size Z is the last step corresponding to the particular project size X(n) is the project size corresponding to the n stretch X(Z) is the total project size Y(n) is the multiplier (EEP contribution for every n stretch)

11 1. Project Overview EEP co-financing and own contribution

12 1. Project Overview EEP co-financing and own contribution 1,211, ,000

13 1. Project Overview Project Duration 1,211, ,000 20

14 1. Project Overview Country. Technical focus and technology application 1,211, , x

15 1. Project Overview Country. Technical focus and technology application 1,211, , x x

16 1. Project Overview Country. Technical focus and technology application 1,211, , x x Solar Water Pumping for Irrigation

17 1. Project Overview Country. Technical focus and technology application 1,211, , x x Solar Water Pumping for Irrigation

18 1. Project Overview Project concept

19 Source BCTCL 1. Project Overview Project concept

20 1. Project Overview Project concept x20 Farms in remote areas (off-grid) Source NSW

21 1. Project Overview Project concept In the remote lands of Tanintharyi, there is not access to the national electric grid. Currently, farmers use diesel-powered pumps for irrigation, but the cost of the fuel is the area is too high due to the transportation required to reach the site. Solar radiation is abundant, and a photovoltaic pumping systems can be an attractive alternative to the diesel engines, at a more affordable price for the farmers. The proposed solar-powered pumping system consists of solar panels connected to an electric motor that runs a bore DC electric pump. A water storage will be installed in order to guarantee the continuous water supply including night hours when solar energy is not available. An energy meter will be installed to measure the total energy consumed per month, and the measurements will be reported remotely to a central billing centre. The payments by the farmers will be also made remotely through mobile phone.. Etc

22 2. Project Information Problem identification / analysis

23 2. Project Information Problem identification / analysis High cost of irrigation Agricultural sector not competitive High unemployment Poverty Economic and Gender Inequality Pollution and GHG emission from diesel engines Lack of Access to Affordable Energy for Irrigation Lack of Access to electric grid Difficult access to bring fuel (High cost) Unawareness of alternative off-grid options Lack of investment Lack of Technical capabilities for clean energy

24 2. Project Information Problem identification / analysis High cost of fuel due to additional cost for transportation to the remote sites. This makes economically unfeasible to provide irrigation in some of the remote farms. A reduction of the energy cost is necessary to improve the agricultural sector and impoverish economy in the area. Etc..

25 2. Project Information Results Chain. Project overall objective and outcomes

26 2. Project Information Results Chain. Project overall objective and outcomes A results chain is a set of interlinked cause-effect relationships. It describes a desired change and the means by which to attain it. The desired change relates typically to the situation, behavior and/or capabilities of a target group. A results chain is a set of interlinked cause-effect A typical results chain includes the following elements: 1.Inputs = available resources (human, physical etc.) 2.Activities = processes to transform inputs into... 3.Outputs = goods and services for... 4.Outcomes = utilization of outputs by target groups or intermediaries, 5.Direct impacts on their situation, behaviour, capacity and 6.Indirect impacts in the same sense, or on a larger scale

27 2. Project Information Results Chain. Project overall objective and outcomes Formulate the following questions to identify the result chain of the Project Source: GIZ

28 2. Project Information Results Chain. Project overall objective and outcomes OVERALL OBJECTIVE: - Implement an innovative business model to provide access to affordable clean energy for irrigation in remote lands of Tanintharyi. OUTCOMES: - 20 farms will be able to irrigate crops and expand their agricultural business direct and indirect jobs will be created. - The impacts on climate change will be reduced.

29 2. Project Information Results Chain. Project overall objective and outcomes Solar PV system to power water pumping installed: 1.Engineering 2.Construction

30 2. Project Information Business Plan Describe the rationale of how the project / organization creates, delivers, and captures value.

31 2. Project Information Business Plan. Business Model Canvas Cost Key Partners Key Activities Value Proposition Costumer Relationship Costumer Segments Value Key Resources Channels Source: Strategyzer Cost Structure Revenue Streams

32 2. Project Information Business Plan. Business Model Canvas Create new businesses Cost Value Pay-as-yougo energy for irrigation Reduce energy cost Source: Strategyzer

33 PARTNERS: PV System Installers, and communication operators. ACTIVITY: Install and manage solar installations and payment system. RESOURCES: EEP Cost Funds. Bank Loan. 20 Year PPA with the farmers. COST: EPC Cost for installing the plants. O&M of the systems and costumer service. Source: IEA 2. Project Information Business Plan. Business Model Canvas VALUE: Affordable access to clean energy for irrigation COSTUMER RELATIONSHIP: Remote payments system, and support of local agents CHANNEL: An SPV takes the loans and provide the services Value COSTUMER Farmers / Irrigation water suppliers REVENUE: Energy Fee Carbon credits

34 2. Project Information Business Plan. Business Model Energy (kwh) Not Water A Solar PV Energy Business model driven by a third party which develop the project and own PV systems, result in: Reduction of hassle & complexity for enduser. Secures adequate financing support. Avoids the extensive upfront investment and following maintenance and monitoring costs, for the end user (only have to care about the electricity fee).

35 2. Project Information. Business Plan. Business Model Source NSW

36 pay-as-you-go system Central Server 2. Project Information. Business Plan. Business Model Meter and remote controller SMS activation system Source NSW

37 2. Project Information Business Plan. Business Model Payment System The system incorporates a pay-as-you-go controller that allows power to the water pumps only when the system has been unlocked by entering a valid code through the mobile phone. The code is obtained by sending a top-up number along with the serial number by SMS to the company central server. Once the code is received in the central server, a signal is automatically sent to the system to supply electricity to the pumps. Top-ups are either physical cards bought for cash, or codes bought by mobile phone, using a mobile money system. They can be purchased for one month activation, with a limit of 1,050 kwh/month.

38 2. Project Information. Business Plan. Marketing Plan A marketing plan is a comprehensive blueprint which outlines an organization's overall marketing efforts. A good marketing plan sets clear, realistic and measurable objectives, includes deadlines, provides a budget and allocates responsibilities. A plan can consist of these elements: analysis of your current market your business objectives key strategies steps to achieving your objectives proposed budget timing EEP The marketing mix is a business tool that can be defined through the 4P: price, product, promotion, and place.

39 Marketing Mix (4P): 2. Project Information. Business Plan. Marketing Plan Product: Energy to be sold to farmers with the purpose of pumping water. The energy supplied will be enough to pump all the required water for irrigation, and simultaneously store a fraction of it in the form of water accumulated in tanks, in order to use gravity to pump water during the required hours by night. A total of 252,000 kwh/yr will be supplied to 20 farmers. Additionally, the project will avoid the emission of 4,334 Tn of GHG. These will be certified and sold in the carbon markets through the Clean Development Mechanisms. Price: The price will be set at 0.6 USD/kWh. A market survey and analysis was conducted to determine that this is the maximum price local farmers can afford to run financially sustainable agricultural businesses. The cost of producing the energy through fossil fuels would be 0.69USD/kWh, what means that a fossil fuel energy producer would have to set the price well above 0,7 USD/kWh, and it wouldn t be feasible. Place: The location will be right on the water source, and near the lands to irrigate. The advantage of off-grid renewable energy systems compared with the conventional ones, is that technically these can be located anywhere. As the extension of lands to irrigate is wide and the farms are disperse, instead of one large power plant, twenty small systems will be installed covering each of the farms. The data collected on the energy meters, will be sent remotely to the energy producer offices, and the payments will be made by the farmers remotely through a mobile phone application. Promotion: The price of the energy for these first 20 farms is lower than the potential market price if this project is successful, therefore, the EEP funds are utilized to reduce price as promotion of the product. The project will be a demonstration of the energy alternative for the region. It will incentivize other communities to implement similar projects. Once the model has been demonstrated, the cost will be reduced due to the economies of scale / experience, and reduction of financial risks, which will trigger new developments.

40 2. Project Information Business Plan. Feasibility Study Project Requirements: Number of Farms: 20 Water required: 8 L/second - 30m head Irrigation time: 12 hours (10 hours day and 2 hours night) Pump Power required per farm: 5kW Irrigation period per year: 30 weeks / Yr Energy required per year per farm: 12,600 kwh/yr Total Energy required per year: 252,000 kwh/yr

41 2. Project Information Business Plan. Feasibility Study Cost of Energy produced using Diesel Engines: Price of diesel pump: 3,500 Eur/ unit Depreciation period of diesel engine: 20 years Specific diesel consumption: 0.3 L/kWh Cost of Diesel per liter on-site: 1.75 Eur/L Annual cost of Diesel Engine O&M: 150Eur/MW Total cost per year per farm: 8,860 Eur/Yr Total cost per kwh using diesel: 0.69 USD/kWh

42 2. Project Information Business Plan. Feasibility Study Cost of Energy produced by Solar PV Solar PV capacity factor for the location: 15% Solar PV capacity required per farm - equivalent to 5kW diesel: 16,7kW Storage tank required for the night 2 hours required: 57,500 L/ Farm Cost of the Solar PV system (installed): 2.2 Eur/W Cost of the 5kW DC pump and controller per farm: 8,320 Eur/ Farm

43 2. Project Information Business Plan. Feasibility Study Cost of Energy produced by Solar PV Cost of the piping per farm: 2,000 Eur/ Farm Cost of the storage tank (installed): 0.2 Eur/L. Depreciation period of the PV pump System: 20 Yr Annual cost of the PV O&M: 20 Eur/kW Total cost per year per farm: 67,240 Eur/Yr Total cost per kwh: 0,27 Eur/kWh - (Cost of PV Energy < Cost of diesel energy)

44 2. Project Information Business Plan. Feasibility Study Financial Results: Case 1 (Without EEP funds) Energy Price (equal to off-setting diesel): 0.69 Eur/kWh Total capital cost for the 20 Solar PV pumps: 1,211,200 Eur O&M Cost: 6,680 Eur/Yr Revenues: 173,880 Eur/ Yr Profit: 167,200 Eur/Yr Simple payback (without discount rate): 7.2 Yr

45 2. Project Information Business Plan. Feasibility Study NPV Financial Results: Case 1 (Without EEP funds) Annual discount rate: 5% Net Present Value (NPV): 830,935 Eur Project IRR: 12% Pay back (with discount rate): 13 Yr Market Price estimated = 0.60Eur/ kwh -> not feasible

46 2. Project Information Business Plan. Feasibility Study Financial Results: Case 2 (With EEP funds) Energy Price (Market price): 0.60 Total Own Funds: 761,200 Eur O&M Cost: 6,680 Eur/Yr Revenues: 151,200 Eur/ Yr Profit: 144,520 Eur/Yr Simple payback (without discount rate): 5.3 Yr

47 2. Project Information Business Plan. Feasibility Study Financial Results: Case 2 (With EEP funds) NPV Annual discount rate: 5% Net Present Value (NPV): 1,039,839 Eur Project IRR: 18% Pay back (with discount rate): 9 Yr

48 2. Project Information Business Plan. Feasibility Study Financial Structure: Source EP&B

49 2. Project Information Business Plan. Feasibility Study Financial Structure: Equity: 30% Debt: 70% Interest rate: 10% Repayment period: 5 Yr Equity IRR: 27% NPV

50 2. Project Information Business Plan. Feasibility Study The value proposition is the Energy to be sold to farmers with the purpose of pumping water. The energy supplied will be enough to pump all the required water for irrigation, and simultaneously store a fraction of it in the form of water accumulated in tanks, in order to use gravity to pump water during the required hours by night. A total of 252,000 kwh/yr will be supplied to 20 farmers. For the Concept Note stage, only a very brief Business Executive Summary is required The project will avoid the emission of 4,334 Tn of GHG. These will be certified and sold in the carbon markets through the Clean Development Mechanisms. The price will be set at 0.6 USD/kWh. A market survey and analysis was conducted to determine that this is the maximum price local farmers can afford to run financially sustainable agricultural businesses. The cost of producing the energy through fossil fuels would be 0.69USD/kWh. Focus on explaining why your business is going to be successful summarizing the Target market (Who are you selling to? Why would they buy your products/services?) and how this ensures the financial sustainability beyond the EEP programme Sustainability: a 20 years PPA has been agreed with the farmers, which guarantees the financial viability and sustainability. The farmers will grow their business dependent on the energy supplied, and therefore, a captive market will be created. The EEP funds will not be required beyond the 6 years set for the RBF disbursements Replicability: There are hundreds of farms in the region that could adopt similar irrigation systems. As the number of new installations grow, the economies of scale and experience will reduce the cost. Additionally, as this solution becomes well known and attractive for new costumers, the price could be slightly increased.

51 2. Project Information Development impacts

52 A democratic and accountable society that promotes human rights An inclusive green economy that promotes employment Sustainable management of natural resources and environmental protection Human development 2. Project Information Development impacts Finland s foreign and security policy strengthening international stability, security, peace, justice and sustainable development, as well as promoting the rule of law, democracy and human rights Human Rights Base Approach Cross Cutting Objectives UN Millennium Declaration and Millennium Development Goals Eradication of extreme poverty Cross-cutting objectives Gender equality Reduction of inequality Climate sustainability Priorities of development policy and development cooperation Human rights-based approach to development: Democratic ownership and accountability, Effectiveness and impact, Openness, Policy coherence for development, Focus on the least developed countries

53 Project Information Climate Sustainability CO2 Emission saving Energy Savings in 20 years: 5,040 MWh Specific diesel emissions: 860 CO2gr/kWh Total CO2 Emissions avoided: 4,334 Tn

54 Project Information Reduction of inequality Economic savings for the community: Economic savings per kwh: 0.09 Eur/kWh (13%) Annual economic savings: 22,400 Eur/Yr Total economic saving: 448,000 Eur Productive use of energy: Direct and indirect: Increase the agricultural production in the region, jobs and wealth creation Gender Equality The creation of new jobs thanks to the expansion of the irrigation system will impact in the number of women working in the agricultural sector. Also, new jobs will be created for the administration of new emerging businesses.

55 2. Project Information Directly: Farmers: The availability of irrigation will allow an expansion of the agricultural business. Community: The expansion of the agricultural businesses will create jobs and wealth distribution among the population. Also, a number of new businesses and highly qualified jobs will be created to support the operation of the system; A network of local O&M service partners with the required spare parts in stock will support the energy and water service providers in keeping the systems up and running. Various service options, from service contracts to training sessions will be available to the energy service companies, NGOs, or community-based associations. The operation of the remote energy management platform which allows the remote monitoring of each system will also required skilled operators.

56 2. Project Information Business Innovation The remotely activated Pay-as-you-go service allows the utilization of Solar Energy services in remote areas where it wouldn t be possible to access regularly to collect the payments. The system incorporates a controller that allows power to the water pumps only when the system has been unlocked by entering a valid code through the mobile phone. The code is obtained by sending a top-up number along with the serial number by SMS to the company central server. Top-ups are either physical cards bought for cash, or codes bought by mobile phone, using a mobile money system.

57 2. Project Information Implementation plan

58 2. Project Information Implementation plan Source: Solarprofessional 4 teams working in parallel (Steps 6 to 13 will be repeated 5 times): Total 17 months (3 months/farm + 2 months design) EEP Project: 17 Months construction + 3 months in operation = 20 months

59 2. Project Information Implementation plan Source: Solarprofessional 4 teams working in parallel (Steps 6 to 13 will be repeated 5 times): Total 17 months (3 months/farm + 2 months design) EEP Project: 17 Months construction + 3 months in operation = 20 months

60 2. Project Information Implementation plan 4 teams will work in parallel completing 5 installations each. The construction period will last 17 months: 2 months for the design, engineering and procurement3 months for each of the 5 installations constructed by each of the 4 teams. The total duration of the EEP Project will be 17 Months for the construction and 3 months for the operation, adding a total of 20 months. etc.

61 3. Financial Information Project budget Photovoltaic system Engineering 41,300 etc..

62 3. Financial Information Project budget Solar Photovoltaic Pannels (333 kw) 275,000 etc.. Civil Works 29,200 etc..

63 3. Financial Information Financial sources * values must be the same and should match with the values in PART 1 : PROJECT OVERVIEW ** If there is in-kind contribution, please provide basis of valuation in the box provided below. 228, , ,000 1,211,200

64 3. Financial Information Additionality

65 3. Financial Information Additionality Net positive difference that results from an intervention. The extent to which an activity (and associated outputs, outcomes and impacts) is larger in scale, at a higher quality, takes place quicker, takes place at a different location, or takes place at all as a result of intervention NPV Feasibility Gap NPV Feasible, bankable and financially attractive for private investments Price of Energy reduced for end users Reduction of pollution and GHG emissions Not Feasible without EEP funds Feasible with EEP funds

66 3. Financial Information Additionality The project is technically feasible and is close to commercial, however, the required prices of energy are too high for the local economies. The contribution from EEP is utilized both for reducing the energy cost for the end users, and for improving the financial results, making the project bankable and attractive for private investors. The success of the project would demonstrate the business model in the region, and incentivize other communities to implement similar projects. Once the model has been demonstrated, the cost will be reduced due to the economies of scale / experience, and reduction of financial risks.

67 3. Financial Information Results based Finance (RBF)

68 3. Financial Information Results based Finance (RBF). Characteristics of RBF Concept RBF is a funding approach in which the funding entity provides a financial incentive, conditional on the recipient achieving pre-determined results. Funds are disbursed not against expenditures on the input side, but against demonstrated and independently verified results Gives private sector entrepreneurs freedom to use the funds for anything they need RBF incentive equals additional transaction costs: Business as usual vs innovative business plan

69 3. Financial Information Results based Finance (RBF). EEP Approach. Types of results and milestones Project developers have to clearly indicate which of the result in their proposal will trigger the EEP incentive. Eligible results are: Increased access to sustainable energy services (number of households / business supplied with sustainable energy) Increased renewable energy generation or energy saving (kwh generated from renewable sources or saved by energy-efficient equipment) A combination of both types of results is possible. Other results can be proposed but need approval. The incentive is paid ex post after delivery of the result and there is no advance payment. However, milestone results (e.g. completion of the installation of a RE system) can also be proposed by developers. The first milestone can represent a maximum of 25% of the total grant.

70 3. Financial Information Results based Finance (RBF). Determination of the RBF incentive amounts RESULTS II: 45% = 202,500 Eur Energy supplied to end users Max: 3.15MWh MILESTONE: 25% = 112,500 Eur Completion of the designs engineering and procurement 450,000 Eur RESULTS I: 30% = 135,000 Eur Number of Farms connected (Max: 20)

71 3. Financial Information Results based Finance (RBF) Milestone 1 (25%= 112,500Eur) RFB 000, ,500 Eur Milestone 01 25% Source: Solarprofessional

72 3. Financial Information Result 1 Farm Connected (30%= 6,750 Eur/Farm) RFB 132, , , , ,250 Result Milestone Eur % 27% 25% Source: Solarprofessional 4 teams working in parallel (Steps 6 to 13 will be repeated 5 times): Total 17 months (3 months/farm + 2 months design) EEP Project: 17 Months construction + 6 months in operation = 20 months

73 3. Financial Information RFB 247, ,500 Eur Eur Result 420 Result 9 Farm Connected (30%= 6,750 Eur/Farm) Result 14 Farm Connected (30%= 6,750 Eur/Farm) Result 5 Farm Connected (30%= 6,750 Eur/Farm) Result 10 Farm Connected (30%= 6,750 Eur/Farm) 31% 55% 4 teams working in parallel (Steps 6 to 13 will be repeated 5 times): Total 14 months EEP Project: 14 Months construction. 6 months in operation Source: Solarprofessional

74 EEP Funds received (Eur) 3. Financial Information Results based Finance (RBF) RFB 247, ,00 Eur Eur Result(kWh) Operating period: 3 months Energy supplied: 3,150 kwh Incentive Eur/kWh Total: 202,500 Eur Milestones: 112,500 Eur Result (Farms connected: 135,000 Eur Energy supplied: 202,500 Eur Total: 450,000 Eur 55% 100% Milestones / Results Source: Solarprofessional

75 3. Financial Information Results based Finance (RBF). MERVA Monitoring, Evaluation, Reporting, Verification and Auditing (MERVA) The verification needs to be rigorous, with a 3rd party control via well-defined independent checks. Verification needs to be fast, so that firms do not suffer long disbursement delays Role of the Developers: Propose the RBF plan, including the identification, definition and quantification of the milestones and results that will trigger the incentives. This includes also the estimated deadlines to achieve the results. Document all the necessary information for the verification, and facilitate it to the verifiers Submit disbursement requests once the results have been verified. Submit to RCU the Project Progress and Financial reports. Hire the auditors for the final financial audit.

76 3. Financial Information Results based Finance (RBF). MERVA Monitoring, Evaluation, Reporting, Verification and Auditing (MERVA) Role of RCU Conduct the Monitoring and Evaluation of the projects, including site visits when necessary. Coordinate with the Verifiers, and mediate with the donor to report the vierified results and disbursement requests. Role of the Verifiers Experts specialized in the technology used in the project, to conduct the Verification of the results reported by the Developer. Role of the auditors Conduct a final financial audit of the whole project, including all the reconciliation of the balances and receipts.

77 4. Applicant Information Finland

78 4. Applicant Information

79 4. Applicant Information

80 4. Applicant Information

81 4. Applicant Information

82 4. Applicant Information

83 4. Applicant Information

84 Attachments IN ENGLISH

85 Attachments

86 Attachments

87 Application process We are here

88 Concept Note Evaluation CONCEPT NOTE SCREENING CRITERIA (Must comply all the criteria) CONCEPT NOTE SCREENING CRITERIA (Must comply all the criteria) 1. Is the Concept Note signed by an authorized representative of the Lead Partner, and are there signed MOUs with other possible partners annexed? 2. No conflict of interest / privileged relationship with a member of the technical evaluation. The scan copy of the signed statement must be included as annex, as well as a scan copy of the company business register or the country specific registration document in case of NGO application. 3. Clear additionality to the project from EEP grants funding? 4. Are the basic eligibility criteria respected (eligible partners, type of projects activity, technical focus, maximum implementation period, geographical area)? 5. Is it relevant to the objectives and priorities of the call for proposal? 6. Is it relevant to the particular needs and constraints of the target country or region related to clean energy policies and promotion strategies of the relevant countries? 7. Does it present a defined business model? 8. Does it apply proven and Does it apply proven and mature technologies? 9. Does it meet the minimum self-financing ratio set for the investment? 10. Is the proposed funding results-based or can it easily be adapted at FPP stage? 11. Does the lead applicant have sufficient technical and project management expertise, as well as financial capacity? 12. HRBA principles are followed and integrated in the project approach (YES/NO)

89 Concept Note Evaluation CONCEPT NOTE EVALUATION CRITERIA CONCEPT NOTE EVALUATION CRITERIA Project or business idea (e.g. level of maturity/implementation readiness, viability, business case, innovativeness) 30 Project financing approach 15 Approach for scale-up/replication and/or to mobilize future investment 15 Financial leverage (own-financing share) above minimum share 10 The proposed project enhances co-operation between local project developers and partners from Finland Development impacts (e.g. social economic benefits to the target population including ethnic groups, poor households, women, female-headed households in terms of job/ livelihood creation, improvements of living standards etc.) and climate change mitigation (i.e. CO2 emission reductions) Weighting (total=100) Score (0 5 ) higher = better

90 Full Project Proposal Evaluation EVALUATION CRITERIA FOR FULL PROJECT PROPOSALS - I FULL PROPOSAL EVALUATION CRITERIA Weighting (total=100) I) Impact 20 The main beneficiaries are clearly identified, and there is a clear and direct 5 mechanism through which the beneficiaries will benefit from the project. The project has a sustainable impact on local / national income generation, and 10 promoting entrepreneurship The project proposal addresses the EEP HRBA principles and cross cutting 5 objectives. II) Sustainability / Replicability / scale-up 20 The project has potential for scaling up providing a model for replication, 10 improving funding mechanisms and opportunities, leveraging private sector investment, etc. Prospects of accessing private financial institutions loans, and/or development bank funding increased. The project presents a sustainable business model that ensures continued 10 operations beyond the duration of the EEP funding. Score (0 5 )

91 Full Project Proposal Evaluation EVALUATION GRID FOR FULL PROJECT PROPOSALS - II FULL PROPOSAL EVALUATION CRITERIA III) Innovation 20 The project contributes to the development of new and innovative business 20 approaches, linkages, financial / credit instruments, RE configurations/approaches, etc.. IV) Budget, Cost-Effectiveness and Financing Structure 20 The budget is justified and realistic for the proposed activities and expected 10 outputs. The financing model is in line with a RBF approach. Funds are used efficiently (e.g. cost/beneficiary, cost/t of CO 2 emission 5 reduction). Amount of financing contributions from the lead partner, other partners and other 5 confirmed sources of co-financing, above minimum contribution. V). Management/Resources 10 The applicant and partners has project management experience and technical 5 expertise. The applicant has tangible experience in professional financial project 5 management incl. accounting practices following international standards VIII). Cooperation with Finnish Institutions/Companies 10 The proposed project enhances co-operation between local project developers and partners from Finland Weighting (total=100) 10 Score (0 5 )

92 THANK YOU! More information please contact Visit us EEP Mekong Programme Technical Assistance by NIRAS Finland Oy