United Nations Development Programme Country: Belarus PROJECT DOCUMENT 1

Transcription

1 United Nations Development Programme Country: Belarus PROJECT DOCUMENT 1 Project Title: Improving Energy Efficiency in Residential Buildings in the Republic of Belarus UNDAF Outcome(s): 3.1. National capacity to mitigate and adapt to climate change enhanced UNDP Strategic Plan Environment and Sustainable Development Primary Outcome: Mainstreaming Environment and Energy (Programme component 3: Environmental Sustainability). UNDP Strategic Plan Secondary Outcome: Expected CP Outcome(s): 3.1: Country s capacity to mitigate and adapt to climate change strengthened Expected CPAP Output (s): Energy efficiency in buildings improved. Executing Agency: Department on Energy Efficiency Under the State Committee on Standardisation of Belarus Implementing Entity: UNDP Brief Description The objective of the project is to reduce the energy consumption and related GHG emissions with the focus on new residential buildings by introducing new performance based building design and construction standards with related energy certification scheme(s) and by ensuring their effective implementation and enforcement. By this, the energy consumption of new buildings is sought to be cut by at least 70% compared to the existing building stock constructed before 1993 and by 40% compared to the buildings erected in accordance with the current construction norms and thermal standards in place. The project will support the i) strengthening of the legal and regulatory framework; ii) training of local experts and other key stakeholders; iii) construction of three EE demo buildings to test and gain practical experience on different EE solutions; and iv) related outreach and dissemination of the lesson learnt. Programme Period: Atlas Award ID: Project ID: PIMS # 4290 Start date: Jan. 01, 2012 End Date Dec. 30, 2016 Management Arrangements NEX PAC Meeting Date 5 September 2011 Total resources required US$ 32,200,000 Total allocated resources: US$ 32,200,000 Project budget US$ 4,900,000 Regular UNDP US$ 400,000 GEF US$ 4,500,000 Other co-financing: o Gov t Cash US$ 1,700,000 o Other (Cash) US$ 23,000,000 o Gov t in-kind US$ 2,600,000 Agreed by the Deputy Chairman of the State Committee on Standardization of the Republic of Belarus, Director of the Energy Efficiency Department: Mr. Leonid V. Shenets NAME SIGNATURE Date/Month/Year Agreed by the UNDP Resident Representative in Belarus: Mr. Antonius Broek NAME SIGNATURE Date/Month/Year 1 For UNDP supported GEF-funded projects, as this includes GEF-specific requirements

2 UNDP Environmental Finance Services Page 2

3 Table of Contents List of acronyms , Situation analysis Context and global significance Baseline, barriers and current energy policy to address the root causes and threats Institutional framework and stakeholder analysis Other related past and ongoing activities Project strategy Project objective, outcomes and outputs Project indicators, risks and assumptions Expected global, national and local benefits Project rationale and GEF policy conformity Country Ownership: Country eligibility and country drivenness Financial Modality and Cost-Effectiveness Sustainability ((including financial sustainability) Replicability Project results framework Total budget and work plan Management Arrangements Monitoring framework and evaluation Legal context Annexes Offline risk-log Agreements Terms of Reference Greenhouse gas emission reduction analysis Current EU Policy Framework for Improving Energy Efficiency in Buildings A Summary of the EU Directive 2010/31/EU on the Energy Performance of Buildings List of construction related laws and standards currently in force in Belarus Description of UNDP Country Office Support Services in Execution of the Project Improving Energy Efficiency in Residential Buildings in the Republic of Belarus..66 UNDP Environmental Finance Services Page 3

4 UNDP Environmental Finance Services Page 4

5 List of acronyms CEN CHP CO CO 2 EE EED EU GDP GEF GHG HOB HQ HVAC IEA ICT ISO MEPS M&E MoAC NGO ODS PV QPR PPP PIR PMU PPG PSC RCU RTA S&L ST SWH TPR TTR TJ TWh WB UNDAF UNDP UNFCCC European Committee for Standardization Combined Heat and Power UNDP Country Office Carbon dioxide Energy Efficiency Department on Energy Efficiency under the State Committee for Standardization European Union Gross Domestic Product Global Environment Facility Greenhouse Gas Heat Only Boiler UNDP Headquarters Heating, Ventilation and Air-conditioning International Energy Agency Information and Communication Technology International Organisation for Standardisation Minimum Energy Performance Standards Monitoring and Evaluation Ministry of Architecture and Construction Non-Governmental Organisation Ozone Depleting Substances Photovoltaic Quarterly Progress Report Purchasing Power Parity Project Implementation Review Project Management Unit Project Preparation Grant Project Steering Committee UNDP Regional Coordination Unit Regional Technical Adviser Standards and Labels Solar thermal Solar water heating Tripartite Review Terminal Tripartite Review Terajoule Terawatt hour World Bank United Nations Development Assistance Framework United Nations Development Programme United Nations Framework Convention on Climate Change UNDP Environmental Finance Services Page 5

6 1. SITUATION ANALYSIS 1.1 Context and global significance 1. The energy supply in Belarus is highly dependent on imports, mainly from Russia. Apart from small deposits of natural gas, oil, peat and some hydro resources as well as the forests covering close to 40% of the country, there are no significant other energy resources available. In 2008, the imports covered over 85% of the total primary energy use (IEA Energy Statistics 2008). 2. The price and other delivery terms of the gas and oil imported from Russia and its transit to other European countries through Belarus have been subject to several disputes between the Governments of Belarus and Russia since The previous low price paid by Belarus for the Russian gas has been gradually increasing, thereby providing a higher impetus also for different energy efficiency measures. Besides, increasing the energy security and greater energy independency has remained high in the Government agenda. Table 1: The average end user price (excl. subsidized cooking gas) of natural gas in Belarus during (Source: Department of Pricing Policies of the Ministry of Economy of the Republic of Belarus). Year Gas price (with VAT) in USD per 1000 m The population of Belarus at the beginning of 2010 was estimated at 9.5 million, of which close to 75% live in urban areas. The country is divided into 6 regions with the administrative centers in Minsk, Brest, Vitebsk, Gomel, Grodno and Mogilev. At the beginning of 2009, 112 settlements had a city status, of which 12 cities are classified as regional (voblast) cities and 99 towns of as district (raion) cities, of which 85 are district centers. The capital of Minsk serves both as a regional and district center. In 14 cities, the population exceeds 100,000 inhabitants, including Minsk (1834k), Gomel (494k), Vitebsk (356k), Mogilev (354k), Grodno (328k), Brest (311k), Bobruisk (215k), Baranovichi (168k), Borisov (147k), Orsha (133k), Pinsk (131k), Mozyr (109k), Novopolotsk (104k) and Soligorsk (102k). UNDP Environmental Finance Services Page 6

7 Figure 1: The Map of Belarus 4. The climate of Belarus is moderate continental in a transitional zone between a continental and a maritime climate. The climate is further influenced by a relatively flat relief with the absence of any major orographic barriers. Typical average summer temperature during the warmest month of July is around 18 o C, but can occasionally go up to 37 o C during the daytime. During the coldest month of January, the average temperature in different regions varies from 4.1 in the southwest to -8.1 C in the northeast (Vitebsk region), where the climate is getting closer to a continental one. Occasionally, temperatures as low as minus C can be observed. The main climatic and other characteristics affecting the buildings heat and hot water demand in different regions of Belarus are summarized in table 1. Table 1: Belarus Some key characteristics determining the heat and hot water demand in different regions of Regional Center UNDP Environmental Finance Services The duration of the heating period, days The average temperature during the heating period, о С Degree-days of the heating period Estimated daily consumption of hot water (liters per person) Vitebsk Mogilev Minsk Gomel Grodno Brest The permanent snow cover is typically formed in late December and disappears in early March. Average snow depth during the winter is cm. Winters without steady snow cover are observed as well. The Page 7

8 prevailing wind directions in Brest and Grodno regions during the warm season are west and north-west and during the cold period west and south-west. 6. The incoming solar radiation is slightly increasing when moving from the north to the south with an annual average from 3500 to 4100 MJ/m² ( kwh/m2). For a preliminary assessment of the viability of solar thermal applications in Belarus, the average daily sunshine hours for each month in Minsk and in some other European cities are shown in the table below. Table 2 Average daily sunshine hours 2 for Minsk and selected other European cities City Lat. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Minsk 53 o 53 N Warsaw 52 o 14 N Krakow 50 o 03 N Berlin 52 o 30 N Munich 48 o 08 N Barcelona 41 o 21 N The energy-related GHG emissions of Belarus were estimated at 64,2 Mtons of CO 2eq and the energy intensity (per GDP-PPP) slightly less than twice the OECD average as per the IEA energy statistics of According to the 1995 statistics, the energy intensity of Belarus was still 0.7 toe/usd of GDP i.e. among the highest in the world, but by 2008 had been dropped to about 0.31 toe/usd of GDP. While still 1,5-2 times higher than in more developed countries with similar climatic conditions, Belarus has ambitious plans to further reduce its energy intensity down to 0,21 0,22 toe per GDP at PPP (toe / thousand 2000 USD). Preceded by the industrial sector energy efficiency improvements, the energy-efficiency in buildings is gaining similar high priority only now. Table 3: Energy intensity per GDP at PPP (toe / thousand 2000 USD ) in selected countries (Source: IEA Key World Energy Statistics 2010) Belarus 0,70 0,51 0,49 0,47 0,46 0,43 0,39 0,38 0,34 0,31 OECD average 0,19 0,18 0,18 0,17 0,16 Finland 0,28 0,25 0,25 0,26 0,27 0,26 0,23 0,24 0,22 0,21 Germany 0,18 0,17 0,17 0,17 0,17 0,16 0,16 0,15 0,14 0,14 Russia 0,49 0,47 0,46 0,42 0,42 Sweden 0,25 0,2 0,21 0,21 0,21 0,21 0,19 0,18 0,17 0,17 Ukraine 0,50 0,50 0,45 0,40 0,40 8. The residential sector was responsible for over 20% of the electricity consumption and over 40% of the metered heat consumption of Belarus in The heat and hot water demand in the multi-apartment buildings is by over 95% covered by centralized district heating systems connected to primarily gas fired CHP plants and heat only boilers (HOBs). In 2009, cogenerated heat was used to cover about 50% of the total heat demand of the DH network, while heat only boilers cover the rest. The efficiency of the boilers typically lies between 80-85%, while the heat losses in the district heating network have been estimated at 10%. 9. More than 75% of the heat is produced by natural gas, followed by fuel oil and other petroleum products (17%) and fuel wood and waste (5%). The use of apartment level gas heaters and electricity for heating and hot water preparation and the use of air-conditioning for cooling is still minor and does not significantly contribute to the overall energy balance. 2 showing the average number of hours of bright sunshine per day for each month, rounded to the nearest hour 3 Source: IEA Energy Statistics 2008 UNDP Environmental Finance Services Page 8

9 1.2 Baseline, barriers and current government policy to address the root causes and threats 10. The construction activities in Belarus are regulated by a number norms, standards and resolutions. These documents define the general requirements and responsibilities at the different stages of the construction process and provide the basis for controlling and monitoring of this process by the public authorities. Among these is the Law on Architecture, Urban Planning and Construction Activities in the Republic of Belarus" (2004, amended in 2009), which sets the framework for relations between governmental agencies, private organizations and individuals engaged in architecture, urban planning and construction activities. It defines the terms of compliance with the respective legal requirements, including mandatory compliance with technical regulations, contracts, as well as non-contractual obligations. 11. The Regulation on Preparation and Issuance of Construction Permits (2007, amended in 2010) establishes the procedures for obtaining permits for construction, reconstruction, restoration and repair of buildings. The process for obtaining the required permits and approvals typically include the following steps: i) obtaining a permission from the executive bodies of the municipal authority on construction and drainage of the site; ii) development of a conceptual design of the building and conducting the load calculations (electricity, heat, water, sewage); iii) approval of the initial architectural design and technical solutions; iv) final architectural and engineering design; v) detailed project examination; and vi) sending the design documents to the customer for implementation. Typical duration of this process is six months. Beside the usual architectural and technical drawings, the complete set of design documents also requires sections on the environmental impacts and planned energy saving measures. 12. For a complete list of the current laws, resolutions and standards in force, please see Annex The formulation and implementation of energy saving policies in Belarus was started in 1993 together with the establishment of an inter-institutional body, the State Committee for Energy Efficiency and Energy Control of Belarus. This entity was transformed in 2001 to the Committee on Energy Efficiency under the Council of Ministers and in 2006 to the Department on Energy Efficiency (DEE) under the State Committee on Standardization. The ground level implementation of energy saving policies is done through the development and implementation of national, regional and sectoral energy efficiency programs. The Department on Energy Efficiency, the Ministry of Economy and other national stakeholders are setting national targets for energy conservation, which are further transformed to mandatory tasks of different line ministries, other governmental agencies and state-owned enterprises. Some of the main achievements so far include the establishment of: legal and regulatory framework of energy consumption and conservation, including the adoption of the Law on Energy Saving in 2008 and its complementary regulations, of which those dealing specifically the building energy efficiency are elaborated in further detail in paragraphs 15-18; system of financial support for energy conservation, including the implementation of state energy efficiency programs and provision of soft loans for industrial energy efficiency measures with the interest rate from 6 to 7,5 %; obligations to encourage energy conservation such as mandatory installation of heat meters in all residential and public buildings; an organizational structure to promote energy efficiency, including the DEE as the central Government body to coordinate EE activities as well as departments and staff at the regional and city level and in state-owned enterprises to improve energy efficiency in their areas of responsibility; and channels for information sharing such as a national magazine on energy efficiency and an Internet based electronic platform for Energy Efficiency developed within the UNDP/GEF project Removing the Barriers to Improving Energy Efficiency in the State Sector of Belarus See Section 1.4), along with other awareness raising, education and professional training. 14. The construction of new residential buildings in Belarus during the recent years has averaged 6,5 million square meters per year. As of the end of 2009, the residential building stock in Belarus totaled about 220 million square meters, of which 170 million square meters have been constructed before 1993 according to the old Soviet practices. In these buildings, little attention was paid to buildings energy efficiency resulting in typical annual heat demand for space heating of about kwh/m 2. UNDP Environmental Finance Services Page 9

10 15. In 1993, a new national standard Construction Heat Engineering was adopted, enhancing the requirements for the insulation of the building envelope by times and reducing the space-heating demand by 30 35% compared to the buildings constructed before These new norms corresponded to annual space-heating demand of kwh/m 2 for buildings of 9 floors or higher and to kwh/m 2 for a typical 4-5 storey building. This is comparable to similar norms in Russia and Ukraine, but presents higher consumption than the standards currently in force in most advanced EU countries. 16. New revised thermal standards were introduced in Belarus in summer While still prescriptive by their nature defining minimum U-values for building components (such as walls, roof, windows etc.), these new thermal standards should reduce the annual energy consumption for space heating of new buildings down to 60 kwh/m 2. No particular requirements for other energy consuming appliances such as sanitary hot water preparation or electric appliances have been introduced yet. The current energy consumption for sanitary hot water in residential buildings has been estimated at kwh/m The installation of heat meters and automatic regulation of heating in residential and public buildings has been mandatory since In addition, the Government has approved a Comprehensive Programme for the Design, Construction and Reconstruction of Energy-Efficient Homes in the Republic of Belarus for and until 2020, by which systems for heat recovery from buildings ventilation air should be installed in all newly constructed buildings by This is in accordance with the stated goal of the energy efficiency program to reduce the energy consumption of all new residential buildings below 40 kwh/m 2 by Government s program for electricity and heat tariffs has focused on i) increasing tariffs to cost-recovery levels (at the Belenergo level); ii) reducing cross-subsidies between different consumer groups; and iii) improving payment discipline to improve the collection rate and eliminate barter. As a result, the collection rate (including collection of payment arrears) has been close to 100 percent in recent years and barter settlements have been eliminated. Cross-subsidies between residential and other consumers have been reduced, but some cross-subsidies still remain. Tariffs for residential consumers are subject to approval by the Council of Ministers. 19. As of October 2010, the district heating tariffs in Belarus were about 0,8 euro cents per kwh, the costs of gas for cooking 11.3 euro cents per m 3 and the costs for electricity 4.2 euro cents per kwh. The goal of the Government is to further reduce the subsidies to zero. The decision 1180 of the Council of Ministers of Belarus dated August 9, 2010 "On Approval of the development strategy of the energy potential of the Republic of Belarus» calls for the phase out of all energy tariff subsidies, including those for natural gas used for food preparation by 2011, for electricity by 2013 and for district heating by 2014 thereby increasing the heating costs to the population and making the energy efficiency of buildings even more important. The current real heat generation and distribution costs to Belenergo have been estimated at about 5 euro cents per kwh. 20. The future projections estimate the construction of 120 million m 2 of new residential area during the period of in the Republic of Belarus. With the current thermal standards in force, this would correspond to the baseline energy consumption and related GHG emissions of about 192 TWh or 41 Mtons of CO 2. over a 30 year calculation period for space heating alone. Thus, each % of energy savings resulting from more energy efficient construction materials and appliances used for construction will result in related GHG reduction of tons of CO 2 over the 30 years calculation period for the building envelope only. For sanitary hot water preparation, the GHG reduction potential can be estimated to be about a half of this by assuming 15 years effective lifetime for the appliances used for preparing hot water. 21. By taking into account the above, the Ministry of Architecture and Construction has set an objective and adopted a program to move towards mass construction of energy efficient buildings in Belarus. Technical means, materials and basic capacity for this are available, but different technical, legislative, institutional, financial, awareness and capacity barriers still need to be overcome. These are discussed in further detail below. 22. Traditional approach to building design is one of the shortages of the Belarusian system, where the architectural design and the design of the buildings energy performance and HVAC systems are done in an disintegrated fashion. Energy efficiency gains are primarily sought from prescriptive insulation norms of the building envelope without considering the energy performance of the building and its HVAC system as a whole. By this, the opportunities available, among others, by optimal orientation and shape of the buildings, placing of windows, active and passive use of solar energy (including the use solar water heating for sanitary hot water preparation), heat recovery from ventilation and drainage water and organization and optimization UNDP Environmental Finance Services Page 10

11 of buildings energy supply in general are typically lost. With a target already set by EU to have all new buildings close to zero energy buildings by the end 2020, new approaches for all this have to be explored. 23. The Belarusian architects and engineers still lack the capacity and sufficient experience in designing energy efficient buildings. This gap can be filled by organizing awareness raising and training on new design principles, procedures and norms along with the design and construction of selected EE demonstration buildings. Furthermore, developing and including new courses on energy efficient integrated building design into the curricula of all Belarusian educational institutions training new architects, construction and HVAC engineers will serve the capacity building of new generations. 24. Incomplete legal and regulatory framework: Although the Construction Heat Engineering standard adopted in 1993 and its upgrading in 2010 have significantly improved the situation compared to the previous (basically non-existing) thermal standards, there is a need to develop a new building code moving from a prescriptive construction norm for the components of the building envelope to a minimum energy performance standard considering the energy consumption and supply of the building as a whole. As a part of this, the different methods for heating have to be linked to the consumption of primary energy, which is the approach increasingly applied also in the EU countries. This can be complemented by the introduction of mandatory energy efficiency certification and labeling of buildings (i.e. a system of energy passports). 25. For the enforcement of regulations, Belarus has a relatively well-organized system of supervision of construction standards in place. All projects undergo mandatory state certification for compliance of the applied technical solutions. The State Expert Appraisal and Inspection Agencies under the State Committee on Standardization and Metrology carry out construction quality control, and a developer exercises field supervision of proper implementation of the project. As required, specialized agencies can conduct an instrumental examination of the building, including a thermo-vision study in order to analyze the heatshielding characteristics of the building envelope. 26. The panel buildings using prefabricated elements with well organized quality control and supervision at all production stages and construction are currently expected to have the best compliance with the adopted norms. The survey conducted in on the energy characteristics of old (constructed before 1993) and new panel buildings with installed heat meters support this assumption showing the specific heat consumption of monitored panel buildings to be close to the values shown in the design documents. 27. For buildings of other types, there is only supervision at the construction site. There is no measurement based control of incoming materials such as thermal insulation, which is why subjective factors and the level of supervision at the construction site have a stronger influence on the quality of construction than the case may be with panel buildings. 28. With the exception of the survey conducted for panel buildings, no comprehensive energy surveys or audits of buildings have been carried out in Belarus yet. As a result, there is a lack of reliable statistical data on energy consumption and energy balance of the existing buildings, thereby complicating the analysis of the energy saving opportunities in both new and existing buildings. A detailed survey of the energy performance of buildings is typically conducted in conflict situations only, where there have been complaints from the residents. The plan during the project implementation is to expand the audits and monitoring to buildings using also other than panel construction techniques, thereby gaining further information on their rate of compliance with the adopted energy efficiency norms. As a part of this, elaboration of a methodology to determine the energy characteristics of residential buildings and surveys of a number of residential buildings of various structural systems and buildings ages are to be conducted. 29. Beside obtaining more information on the level of compliance of the existing buildings, the main institutional strengthening and capacity building needs at the enforcement side are foreseen to be in the training of the local enforcement officials to effectively supervise and enforce the planned new construction norms moving from prescriptive thermal standards towards buildings overall minimum energy performance standards and related certification schemes. 30. The education of constructors on new building technologies and organization of the control of the energy performance of buildings can significantly enhance the quality of construction. The project should support the establishment of a methodology and procedures for carrying out this work and to make them as a part of the standard procedures for approving the building into operation UNDP Environmental Finance Services Page 11

12 31. Inadequate technical details and guidance, The prescriptive thermal standards for insulation often come without the requirement to include any installation details such as prevention of thermal bypasses and thermal bridging into the drawings, nor is this necessarily inspected on-site. As such, the building constructors may need to comply with the requirement for improved insulation without having clear guidance on how to do this correctly. As a result, methods to install the insulation are often field-designed and with untrained laborers, proper mounting of the insulation is not necessarily ensured. This leads to increasing risks for ineffective construction techniques, inefficient energy use and eventually costly damages, for instance, due to the moisture accumulating into the building structure. 32. No financial incentives to stimulate the construction of energy efficient buildings. While the development and effective enforcement of new mandatory minimum energy performance standards together with the adoption of a new energy certification and labeling system for buildings should reduce the need for complementary financial incentives, the issue may still need to be considered during project implementation. The primary interest for the construction companies and investors is to minimize their costs by just taking into account the mandatory EE requirements, unless they can recognize some real value added and financial benefits from complementary EE investments. Similarly, the buyers of new apartments will primarily look the up-front costs. The long term energy savings are not currently appreciated by most purchasers of apartments, should the initial investment need be higher. 33. One avenue for exploring possible complementary financial incentives is the resolution introduced by the Ministry of Architecture and Construction, by which the buyers of new apartments are entitled to an interest rate subsidized loan. While the current commercial interest rate for buying an apartment in Belarus is around 14%, the interest rate subsidy is reducing this to 5%. For reference, the inflation rate in Belarus in 2010 was at around 7%. The sharp devaluation of the Belarussian rouble during 2011 is, however, significantly altering these figures for According to current rules, the interest rate subsidy is only available for those socially vulnerable people that are entitled to receive Government supported benefits. Furthermore, this support is limited to 20 m 2 of living area per person. By expanding this support to all social groups and removing the space limit for those buildings that meet stricter energy efficiency criteria than the mandatory requirements could provide a powerful new incentive to boost the market for complementary energy efficiency measures. The opportunities for this will be further explored during project implementation. 1.3 Institutional Framework and Stakeholder Analysis 35. The organizational structure of the entities overseeing the construction activities in Belarus is presented in the organigram below. Council of Ministers Ministry of Architecture and Construction State Committee on Standardisation Ministry of Environment Construction scientific and design institutes - (NIPTIS, Belzhilproekt, IRUP, etc.) State-owned construction enterprises (MAPID, Minskstroy, Stroytechnorm enterprise Department on Energy Efficiency State Appraisal Committee State Construction Inspection 36. The State Committee for Standardization (Gosstandart) and its Department on Energy Efficiency is the main Governmental body in charge of policy coordination in the sphere of energy efficiency, development and enforcement of technical norms and standards, and metrology. The Committee performs evaluation of conformance and oversight of construction, exercises control for compliance of projects and budgets with established norms and standards and checks rational usage of fuel, power and heat energy. UNDP works closely with the Department of Energy Efficiency on the ongoing UNDP GEF State Sector Energy-Efficiency project (for further details on this project, see chapter 1.4). 37. The Ministry of Architecture and Construction of Belarus is the main governmental body in charge for the development and implementation of the technical policy and regulations in the field of building design, UNDP Environmental Finance Services Page 12

13 construction and production of construction materials. Renovation programs supported by the Ministry for existing buildings have been ongoing since The new building norms and standards and those subject to revision are often drafted by the state enterprise "Stroytechnorm". The drafts are posted on its web-site for comments of all key stakeholders and the feedback is discussed within the Gosstandart s technical committees consisting of the leading Belarussian experts in the area, which the proposed new norm or standard is addressing. The final approval and the entry into force of the new norm or standard is done by the Ministry of Architecture and Construction. The general policy of the Government of Belarus is to bring the Belarusian norms and standards for construction in line with those of the EU. 39. The compliance of the building design documents with the standards and other regulations in force is verified by the State Expert Appraisal Committee and its branches in regions, cities and regional centers. The procedure for the state review is laid down in the Instruction on Conducting State Review of Town Development, Architectural and Construction Documentation, and Investment Feasibility Study. Project documentation is reviewed for the completeness of documentation, availability of all the necessary data, agreement of all the required parties and calculations for design and survey works. In case of documentation incompleteness and comments from the reviewing body, the documentation is returned to the applicant for correction. 40. The state review controls a number of aspects among which are: i) conformity with the requirements of the approved special development plans; ii) implementation of new scientific and technological solutions and applications to save materials and energy during construction and operation; iii) conformity with the occupational safety requirements, along with the health and sanitary and social requirements; iv) conformity with the reliability of the main engineering decisions and with the fire and explosion safety; v) presence of technical solutions and measures to ensure efficient use of natural resources and to prevent the pollution of the environment vi) presence of measures to cope with emergency situations; and vii) measures to ensure the conformity with the approved heat energy consumption standards. 41. The lead design institute that has been in charge for the initial building design has the responsibility to make sure that the works at the building site are carried out in accordance with the design documents. This is further verified by the State Building Inspection and its branches in regions, cities and regional centers. Both the State Expert Appraisal and the State Building Inspection are divisions of the State Committee for Standardization (Gosstandart). 42. Certification of construction works and materials are performed by the certified national agencies included in a special National Register. There are a number of such organizations in Belarus, state-owned and private, located in the Belarusian capital and regional centers. Among these agencies are construction institutes BelNIIS and StroiTechNorm, the central office and regional branches of the Centre on Standardization and Metrology, and a joint stock company Technical Institute of Certification and Testing. In Belarus there is a developed network of certified laboratories conducting a whole range of tests for construction activities, including testing of different structural alternatives and insulating materials. 43. The design work is performed either in specialized institutes or private design companies. Organizations must have a license to perform each activity. Large scale project design institutes with employees are located in all regional centers, often specialized in the design of certain type of buildings such as new residential buildings, renovation of existing building stock etc. In larger design institutes, the architects and engineers typically work under a single command, while in smaller companies the work is more fragmented often taking care of some sections of the design only. The total number of design institutes operating in Belarus has been estimated at over 230, of which are bigger ones employing more than one person. 44. Associations for both architects and builders exist, but their role in influencing construction policies and activities in Belarus has been reported to be relatively small. Co-operation with these associations can be sought, however, when organizing trainings, seminars or competitions. 45. There are faculties of construction in universities and building institutes, which prepare experts for different fields of construction. Energy efficiency is not taught as a separate subject, but is integrated into the courses dealing with heating, ventilation and air conditioning. The leading national university in this field is the Belarusian National Technical University located in Minsk. A number of technical universities that train construction specialists and architects are also located in the regional centers. Among these are the Brest State Technical University, the Gomel State Technical University and the Polatsk State University. The UNDP Environmental Finance Services Page 13

14 National Technical University of Minsk provides a possibility for post-graduate studies on building construction. Complementary training and education can also be obtained abroad and in the Institute of Construction (NIPTIS), which is hosting a center of new technologies and is engaged both in the research and different training activities. In some cases, support of NIPTIS is also requested for drafting new construction norms and standards. 46. There are several construction companies of various size. The largest is MAPID within the state concern "Minskstroy building more than m 2 of residential buildings per year, followed by smaller state owned companies with the annual production from 50 to 200 thousand m 2 of residential buildings each as well as private construction companies of various scale. Among these are joint stock concerns Brestzhilstroi and Grodnozhilstroi, House-Constructing Enterprise in Bobruisk, and private companies SARMAT, ARESASERVICE and KONKON. 47. Building materials are typically local. With the shortage of local supply, cement is bought from Russia and Ukraine. Some of the insulation materials such as mineral wool is also imported from countries such as Finland and Poland. All the materials used in buildings are supposed to have conformity certificates. There are certified laboratories accredited by Gosstandart of Belarus, which also can conduct laboratory tests to check compliance. No entrance control of materials at the building site exists. 48. In the consultations during the project preparatory phase, the representatives of the Ministry of Architecture and Construction expressed specific interest to explore the opportunities provided by new construction materials and their production in Belarus. As an example, the natural insulation materials using wood and other plant fibers were mentioned. 49. The Ministry of Natural Resources and Environmental Protection of the Republic of Belarus is the main Governmental agency in charge of environmental control and nature protection in Belarus. The key responsibilities include: i) elaboration and pursuing of common public policy in environmental control and rational utilization of natural resources; ii) integrated environmental control in the country, coordinating activities of other republican bodies of state administration and corporate bodies along these lines; iii) exercising state control over environmental protection and nature management; iv) making the public aware of the environmental conditions and actions taken for environmental recovery; v) establishing a system of environmental education and training, and vi) interacting with public environmental associations to maintain international ties within its competence. As a part of this, the Ministry coordinates the actions of Governmental agencies and local authorities with respect to reducing GHG emissions, improvement of GHG sinks, along with implementation of the Kyoto Protocol mechanisms. 50. Belarus acceded the Kyoto Protocol under the United Nations Framework Convention on Climate Change in Belarus is currently not an Annex B country and, therefore, cannot use the Joint Implementation (JI) mechanisms. To resolve the situation, Belarus has suggested an amendment to the Protocol, in accordance with which the country takes a commitment to reduce greenhouse gas emissions by 8% compared to the 1990 level. Currently the amendment has been ratified by 23 countries out of 144 that are needed for its entry into force. As such, Belarus still cannot benefit from JI, but the Government would like to change the situation in the future. 51. The Institute of Urban and Regional Planning (IRUP) is the leading organization in Belarus in the area of urban planning at the national, regional and local levels. The Institute develops the national schemes for complex territorial organization of the Republic of Belarus and schemes for territorial planning of regions, administrative districts and urban settlements. It conducts scientific research in the spatial planning related areas; ii) prepares justification for programs and activities on population distribution and improvement of urban settlements; and iii) deals with protection of historical and cultural heritage, natural territories and environment, the development of tourism and recreation infrastructure and the system of social services provided to the population. 52. The Law of the Republic of Belarus "On joint housing ownership" (1998) created the basis for establishing the first housing associations (condominiums), which are currently over 750. From these, 630 are engaged in the maintenance and repair of buildings. The Council of Ministers of Belarus adopted in 1998 a Resolution "On Approval of the Typical Statute of Condominiums, Model Foundation Agreement of Creating Condominiums and Typical Agreement on Joint Housing Ownership, which stipulates the right for condominiums to use loans. Although outside the scope of this project, condominiums can be fully involved in UNDP Environmental Finance Services Page 14

15 implementing energy saving measures in existing buildings once the related legal and regulatory framework is further developed and attractive market incentive mechanisms will be in place. 1.4 Other Related Past and Ongoing Activities 53. UNDP/GEF project Biomass Energy for Heating and Hot Water Supply with an objective to reduce GHG emissions of Belarus by removing barriers to economically feasible wood and wood waste utilization for heat and hot water supply. The project was completed in Currently, there are 8 mini-chps and around 3,000 wood-fired boilers, along with 4 bio-gas complexes and one landfill gas power plant in the country. According to official estimates, wood-fired-boilers and CHPs generate annually around 110 million kwh of electricity, and up to 2.2 million Gcal of thermal energy. In the future the country plans to construct 199 woodfired facilities with the total installed capacity of MW, including 24 mini-chp with the total electric power capacity amounting to 37,2 MW. As for biogas, it is estimated that up to million m 3, or 384 thousand tce, can be annually produced in the country, which would allow the generation of about 1 billion kwh of electricity and million Gcal of thermal energy through co-generation units. 54. UNDP/GEF Regional ODS Phase-Out Project (Belarus, Ukraine, Tajikistan, and Uzbekistan), which is currently being developed. During the project formulation stage, the links with energy-efficiency in buildings will be further explored, for instance, by analyzing the manufacturing of foam insulation materials and their potential use in the construction sector, as well as by assessing HCFC replacement technologies in such cases, which would have only low or no GWP effect. 55. UNDP/GEF project Removing the Barriers to Improving Energy Efficiency in the State Sector of Belarus with an objective to attract investments in the implementation of energy efficiency activities in the state sector. The project started in 2006 and is currently under implementation. Among other activities, the project has trained energy auditors, explored possible financial and implementation mechanism to support EE investments in different public entities through the development of special partnership agreements (SPA), launched an internet based energy platform and successfully supported the establishment of an energy center to serve as a one-stop-shop to identify, develop, and finance energy-efficiency projects in Belarus with a US$ 120 million dollar line of credit from several banks. The lessons learnt during the implementation highlight the importance of identifying the energy-efficiency opportunities already at the very early stage of the Government budget planning process so as to ensure that there will be adequate funding for them as well as the importance of early awareness enhancement of a variety of different stakeholders. This project finished in World Bank Belarus Post-Chernobyl Recovery Project was approved in The project aims to provide the population residing in the Chernobyl affected area with energy efficient and reliable heat and hot water services in order to improve their living environment. The project includes three components: 1) Improving energy efficiency through upgrading or replacement of heat production and distribution equipment and improving thermal insulation and lighting in public buildings; 2) Facilitating access of private households to the gas network in order to improve heat supply and replace utilization of dirty fuels, including those that may be contaminated with radioactive material; and 3) Project implementation and management support, including (a) design and supervision of project investments; (b) staffing, equipment, and training; (c) public information; and (d) auditing, and other fiduciary or technical services. 57. World Bank Social Infrastructure Retrofitting Project was approved in The project aims to improve the social sector facilities with particular emphasis on reducing energy consumption. The project has two main components. The first component supports investment in physical infrastructure. Energy retrofitting measures in schools and medical facilities include building envelope and heating system improvements as well as conversion or replacement of individual autonomous boilers. Rehabilitation of limited parts of the district heating network is also included, when deemed as necessary, to capture savings at the heat production source. The second component consists of technical assistance to support project implementation and advance policy discussions. This includes funding for technical and financial audits, continuation of the public awareness campaign, financing of studies and workshops, and funding of the project management unit and the training of its staff. Project successfully completed in World Bank Energy Efficiency Project was approved in May The objective of the project is to improve energy efficiency in heat and power generation in selected towns of Belarus. The project has three components: The first component is the conversion of existing heat-only-boiler plants to combined heat and power plants at six sites. All plants will use natural gas as the main fuel. The largest plant will be in Borisov UNDP Environmental Finance Services Page 15

16 with a combined heat and power (CHP) unit with power generation capacity of about 65 MW, followed by the Mogilev combined cycle CHP plant of 15.5 MW of power generation capacity. The introduction of combined heat and power generation will improve efficiency of the plants and thus reduce gas consumption. The second component covers design and supervision, which will be performed by Belarusian design institutes and is financed by the Belarusian side. The third component covers project implementation and management. A Project Management Unit (PMU) will carry out the procurement, contract supervision and financial management of the project. UNDP Environmental Finance Services Page 16

17 2. PROJECT STRATEGY 2.1 Project Objective, Outcomes and Outputs 59. The project strategy is presented by a logical framework approach. The essence of this approach is that outputs are clustered by outcomes, which together will achieve the project objective. These are discussed briefly below with further details in Section 3, Project Results Framework. 60. The objective of the project is to reduce the energy consumption and related GHG emissions with the focus on new residential buildings by introducing new performance based building design and construction standards with related energy certification scheme(s), and to ensure their effective implementation. By this, the energy consumption of new buildings is sought to be cut by at least 70% compared to existing building stock constructed before 1993 and by 40% compared to the buildings erected in accordance with the current construction norms and thermal standards in place. 61. The four project outcomes are as follows: Outcome 1: Strengthened legal and regulatory framework and mechanisms to enforce the legislation for improving the energy efficiency of the building sector with the focus on new residential buildings. 62. The purpose of this component is to facilitate by the end of the project the adoption of new minimum energy performance standards and an energy performance certification scheme in line with the most recent development in EU countries for this (for further details, see Annex 7-5). While the focus of the project will be on improving the energy efficiency of new residential buildings, the new standards, if brought in line with the corresponding EU directive on the energy performance of buildings, may cover also buildings of other type as well those going through a major renovation. 63. The specific outputs will include: a formally adopted and endorsed methodology for buildings energy performance monitoring and calculation in line with contemporary EN (see Annex 7-5) or other applicable international standards; at least 50 completed energy audits providing information on factual energy consumption and energy balance of different type of existing residential buildings of different age and using different construction techniques; a completed review and a cost-efficiency analysis of different technical options to improve buildings energy efficiency and the use of renewable energy sources, including an analysis of the cost efficiency of different heat supply and distribution methods to serve low- or close to zero energy buildings. a completed analysis of the impact of the new low energy buildings on the feasibility of different heat supply systems typically used in Belarus and the buildings central water heating + radiator scheme connected to district heating, in particular, with related recommendations for future development; a finalized draft with related inputs from stakeholder consultations for revised national energy performance based norms and standards for newly constructed buildings and, as applicable, those going through a major renovation with the initial focus on residential buildings and taking into account the results and lessons learnt from the construction and monitoring of the three demo buildings; elaborated and by the Government of Belarus adopted practical procedures for the establishment of a mandatory system of EE certification of buildings, including issuing of EE passports and a system of monitoring and compliance checking with related spot-checks; and further developed and adopted quality standards and a system of EE certification for the construction materials, accessories and appliances used in the construction sector. UNDP Environmental Finance Services Page 17

18 Outcome 2: Enhanced capacity of the Belarusian specialists to implement and effectively enforce the new energy efficiency building standards and construction norms. 64. The purpose of this component is to enhance the capacity of the Belarusian building professionals to design and construct more energy efficient buildings by optimizing their costs and benefits. The particular emphasis will be on buildings overall energy performance based integrated building design approach in order to take full advantage of the opportunities for improved energy efficiency both from the architectural and engineering perspectives. The topics will include, among others, optimal shape and orientation of buildings, maximal use of active and passive solar energy, cost- and energy efficient use of building materials, energy efficient accessories and appliances, heat recovery from ventilation air and drainage water, optimization of buildings heat supply systems and, last but not least, correct installation of the used materials and equipment in order to ensure their correct performance. 65. The project s training and awareness raising materials, technical guides and related activities will be tailored to the specific needs and areas of interest of each targeted stakeholder group by building on the observations and conclusions of the surveys and interviews conducted during the project preparatory phase and by continuing the monitoring and evaluation of the impact of the provided training and awareness raising throughout the project implementation. Stakeholder networks and contacts established within the on-going UNDP/GEF project Removing the Barriers to Improving Energy Efficiency in the State Sector of Belarus will be used. All the produced materials will be made publicly available also through the project website and over the energy platform (see Outcome 4 for further details). 66. The financial implications of more energy efficient building design and construction are an overarching issue for all stakeholders i.e. i) for designers in terms of the time required for the design of more energy efficient buildings vs. the fee they can charge for that, ii) for constructors and investors the costs and time of construction; and iii) for final customers the costs they need to pay for buying a new apartment and for living there. Typical complementary drivers for architects include the outlook and functionality of the building as a whole, for engineers the functionality of the building structure, materials and installed appliances, for constructors the availability of materials and the easiness and speed of installation and for final end users the outlook, quality and overall living comfort. Success in improving energy efficiency of new buildings can only be achieved, if the specific issues that are a matter of interest or concern for each stakeholder group can be adequately addressed. This will be taken into account when designing and implementing project s awareness raising and training activities. 67. While there is a likely need to organize some training by a standard class-room set-up, the share of onthe-job training is sought to be maximized, i.e., work on the design, construction, supervision and monitoring of real buildings in close co-operation between the trainers and the trainees. The training will be provided by international experts, along with national trainers trained within the project (by the training of trainers approach) through the mentioned on-the-job training, workshops and study-tours. The planned demonstration projects under component 3 will provide a practical training platform. Related information materials on the pilot projects with the analysis of the pros and cons over conventional energy-efficient buildings will also be prepared. 68. The key stakeholder groups to be targeted with project s capacity building activities will include: i) building designers, i.e., architects and building engineers; ii) supervising staff of the leading construction companies; iii) construction inspectors of the local municipalities; iv) public officials responsible for drafting and enforcing new construction norms and standards; v) local entities and staff responsible for ensuring quality control of the locally available construction materials; and vi) students at all key Belarussian universities with courses related to the topic. Upon completion of the training, the experts will be provided a certificate of completion. The list of stakeholder groups may be expanded in the process of project implementation. 69. The specific outputs under Outcome 2 will include: Developed, published and disseminated stakeholder group specific technical guides, handbooks, guidelines and other related training materials on energy efficiency design and construction of new buildings for supporting the implementation of the new construction norms, including dissemination of this information through the internet based energy platform and the project s own Internet site; UNDP Environmental Finance Services Page 18

19 New courses on integrated building design and building energy efficiency included into the curriculas of all key Belorussian universities educating architects and building engineers. Among these universities are the Belarusian National Technical University, the Brest State Technical University, the Gomel State Technical University and the Polatsk State University. Funding will be provided for at least one new course per university with the expectation that at least 200 students have, by the end of the project, taken and passed new courses on energy efficient building design and construction; At least 50 experts from different state and municipal entities dealing with construction policies, norms and standards such as the Ministry of Architecture and Construction of Belarus, design and research institutes, representatives of the State Appraisal Committee, local municipalities etc. are trained on the most recent international developments, experiences and lessons learnt on building energy efficiency and environmentally sustainable construction; At least 50 architects and other buildings designers from the leading design institutes such as the NIPTIS, Belzhilproekt, Belgosproekt, along with design institutes located in regional centers - Grodno, Gomel, Vitebsk, Brest and Mogilev and professional associations such as the Belarusian Association of Architects, the Association «Renewable Energy etc. are trained on the: i) most recent international developments in the area of energy efficient buildings from the technical and policy perspective; ii) integrated, energy efficient building design principles and techniques; iii) implications in the practical design work when moving from prescriptive norms to buildings overall energy performance based construction norms; iv) available technical options and cost-effective design principles for optimizing buildings energy performance; and v) presentation of the available, state of the art software to support integrated, energy efficient building design and training for its use. At least 50 construction inspectors from the main regional and district centers trained on methodologies for assessing buildings energy performance and the correct installation of the materials and equipment used; At least 50 supervisors of the leading construction companies trained on the correct installation of the materials and equipment used and provision of other advise for private construction companies on how to integrate elements of energy efficient design in their investment projects throughout the project cycle from the design to construction and building management; A two-week training seminar for professional designers, representatives of the state expertise and building supervision in order to familiarize the group with the experiences of energy-efficient building design, construction and governance (including the role of municipal authorities) in EU countries and visiting the facilities (25 people); and Other required trainings, networking and exchange of knowledge and lessons learnt by building on cooperation with other international initiatives promoting energy efficient and environmentally sustainable building construction. Outcome 3: Demonstrated energy and cost-saving potential of new energy efficiency measures in at least three new residential buildings in two Belarusian cities 70. The purpose of this component is to test and gain further information on the performance of the different energy efficiency technologies and measures, and simultaneously provide sites for practical training and onsite monitoring and awareness raising of the local building professionals. The design and construction of the buildings will be done in co-operation with a local design team and supporting international expert(s) with experience on the integrated building design approach and the cost effective utilization of different energy efficiency measures, including active and passive use of solar energy. 71. In consultation with the national counterparts, three new residential buildings entering into the design phase in 2012 have been identified to serve as demonstration projects. These are discussed in further detail below. 72. The first building is a 4-entrance, 9-storey panel building with 140 apartments and the total floor area of 10,000 m 2. This is representing a common type of residential buildings currently constructed in Belarus. The developer of this project is the biggest state owned construction company MAPID and the estimated baseline costs USD 6 million. UNDP Environmental Finance Services Page 19

20 73. The second demonstration site will consist of a block of two building (7 and 9-storey) with 200 apartments and the total floor area of 14,000 m 2. The buildings will be constructed in Grodno with somewhat milder climate than in Minsk and with the estimated total baseline costs of USD 7 million. 74. The third building is an 1-entrance, 24 storey skeleton building in Minsk with 160 apartments and the total floor area of 12,000 m 2. The developer of this project is the Ministry of Natural Resources with the estimated baseline costs of USD 10 million. 75. The baseline design of all buildings would be relying on the current construction norms and thermal standards in force (for further details, see section 1.2) and on a central water heating system connected to district heating with radiators, thermostatic valves and heat meters in each apartment as standard design parameters. 76. The strategy of the project is to engage a joint international and local team to finalise the architectural and engineering design of the buildings by taking full advantage of the most recent international knowledge, experiences and lessons learnt in energy efficient building design, while also taking into consideration the specific market environment in Belarus. The different proposed technical options will be studied and optimized at the buildings overall energy demand and supply system level with the aim to come up with a replicable design also from the cost-efficiency point of view. In this respect, the limit for GEF contribution to cover the costs of the complementary energy efficiency measures was agreed already at the PIF stage as max. 15% on the top of the buildings baseline investment costs. 77. During the construction, the work will be closely monitored ensuring correct use and installation of the selected materials and building components and with regular reporting of the eventual problems and other observations made. After the completion of the construction, the performance of the buildings will be monitored and recorder for at least one full year, the results of which can be used in finalizing the recommendations for the new construction standards, guidelines and energy performance targets. In parallel, the demo projects will be used as a concrete training platform for Belarusian building professionals from the initial design to actual operation, repair and regular maintenance of the installed new EE technologies. 78. The specific measures and technologies to be further studied and, as applicable, implemented and monitored in the demonstration buildings will include: Optimization of the architectural design of the building (shape, orientation, placing of windows etc.) by taking into account the energy efficiency aspects and options for increasing use of renewable energy resources; Improved air-tightness and thermal insulation of the building envelope in accordance with the most recent norms and requirements adopted (or to be adopted) in EU countries with the climatic conditions similar to Belarus and by optimizing the required thermal resistance values of each building component by considering both the costs and the energy consumption of the building as a whole; Forced ventilation with heat recovery up to 80% from the exhaust air; Heat recovery from the drainage water (showers and sinks) for preheating of sanitary hot water and/or heating of common parts of the building; Solar water heating for sanitary hot water Utilization of ground heat by a heat pump (electric or an absorption heat pump) and specific design of the foundation pillars, including, as applicable, also connection to drainage water heat recovery and solar water heating (and eventually for cooling, during the summer time); and Improved, automatic regulation and monitoring of the heat and hot water consumption, 79. While with the current thermal standards in force, the buildings heat demand for space heating and sanitary hot water together is around kwh/m 2 (60 kwh/m 2 for space heating and kwh/m 2 for sanitary hot water preparation), in the proposed pilot/demonstration projects this is sought to be cut by close to 70% for space heating and 40% for hot water, thereby bringing the average combined annual heat demand for space heating and sanitary hot water down to 60 kwh/m 2 or below. 80. Electric household appliances such as lamps and refrigerators will not be under a particular focus of the project, but the use of energy efficient household appliances will be encouraged. The efficiency of the UNDP Environmental Finance Services Page 20

21 appliances will also influence the amount of heat received from buildings internal heat sources and, therefore, needs to be taken into account in the final analysis. 81. While the baseline heat supply and distribution system design in all buildings is based on a central water heating system with radiators and a district heating connection, the reduced heat demand and the considered auxiliary heat sources such as heat pumps and solar water heating calls for studying the feasibility of this further. It is seldom cost-effective to have multiple overlapping heat supply systems in use, in particular, when moving towards low energy demand and close to zero energy buildings. Therefore, the buildings heat and hot water supply shall be optimized by considering the most cost-effective technical options and their combination at the system level taking into account both energy demand and supply side. As an example, effective heat recovery from ventilation air with parallel improvement of the air tightness and thermal resistance of the building envelope may make the installation of the traditional internal heating network and radiators unfeasible from the overall cost-efficiency point of view: For the coldest months, the radiators can be replaced with considerable cheaper auxiliary heating of the incoming air, from which the saved investment costs can be reallocated for the mentioned energy efficiency investments. Similarly, the feasibility of having a DH connection, heat pump and a solar water heating system in the same building with parallel reduction of the heat demand needs to be studied further and optimized at the system level. With changing thermal characteristics, the cooling needs of the buildings during the summer time may also become more important. At the moment, the residential buildings in Belarus are typically not equipped with any air-cooling devices. 82. The GEF co-financing will pay for the incremental costs of those additional EE measures to reach the stated target of 60 kwh/m 2 (= annual external energy consumption for both space heating and hot water) that go beyond the current thermal standards and other building regulations in force. Furthermore and as agreed at the PIF stage, the GEF co-financing is not expected to exceed 15% of the baseline construction costs of the buildings. 83. The specific outputs under component 3 include: Finalized background studies for and design of the selected demo buildings by applying integrated building design principles and taking into account new technologies and approaches for meeting the heating, sanitary hot water and ventilation needs of those buildings in a most energy and cost efficient way; Finalized construction of the demo buildings by ensuring that the construction and all installations are made in accordance with the agreed quality standards and guidelines; A monitoring report on the construction of the three demonstration buildings documenting the experiences and lessons learnt from procuring, installing and testing the new energy efficient materials, construction techniques and appliances; A monitoring report on the energy performance of the three demonstration buildings documenting the actual energy and financial savings and GHG emissions reduction from each building as a whole and from each specific energy efficiency measure and appliance tested; and At least 30 private showings of the new buildings organized for local architects, designers and builders, including half-day training sessions with an objective to promote the solutions adopted for the demonstration projects in additional buildings. Outcome 4: Documented, disseminated and institutionalized project results providing a basis for further replication. 84. The purpose of this component is to: i) mainstream the implementation of the adopted new energy performance standards, design and construction practices; ii) ensure that adequate market monitoring mechanisms will be in place to analyze the impact of different policy measures also after the project; and iii) compile the experiences and lessons learnt for adaptive management and for replicating the project activities in Belarus and/or other countries with similar goals. 85. In designing the project s public awareness raising activities, the following aspects, among others, are to be taken into account: i) sufficient funding to reach visibility and test innovative approaches; ii) segmentation of target groups; iii) taking stock of the experiences, prepared materials and lessons from other countries that have implemented similar campaigns; and iv) taking full advantage of the already existing distribution UNDP Environmental Finance Services Page 21

22 channels such as the energy platform established under the UNDP/GEF State Sector Energy Efficiency project. 86. The specific outputs under this component are expected to include: Developed and published public awareness raising materials and completed nation-wide awareness and information campaign advocating the benefits of energy efficiency measures in new buildings, including economic, social, health, environmental and aesthetical aspects, and addressing also the GEF/UNDP visibility requirements; Agreed methodology and sustainable institutional arrangements for annual market monitoring keeping track on buildings constructed each year as well as the sale of the main building materials, accessories and appliances together with their energy performance characteristics; Fully mandated and capacitated state agency with a responsibility to monitor the energy savings and CO 2 emission reductions in residential and other buildings together with the agreed procedures and interagency agreements for compiling the required primary data. The candidate agencies for this are the Department on Energy Efficiency, the Ministry of Environment, Gostandardt or one of the institutes of the Ministry of Architecture and Construction; An approved national energy audit program (including the required funding for its implementation) for promoting larger number of energy audits in residential and other buildings, including a mechanism for using the audit results for elaborating the energy efficiency strategies for the building sector at the national level; Energy-efficiency aspects integrated into the regional and local plans for territorial development being developed by the Institute of Urban and Regional Planning (IRUP); An international conference on energy efficiency in residential sector, including a field visit to the pilot demonstration sites and coordination with other UNDP/GEF building energy-efficiency projects; Regularly updated project website with a link to an expanded internet based Energy Platform established under the UNDP/GEF State Sector Energy Efficiency project to facilitate effective implementation of the adopted new construction norms and to promote the project results otherwise; Annual market monitoring reports for new building construction with emphasis on energy efficiency aspects; and Final project report consolidating the results and lesson learnt from the implementation of the proposed project components and recommendations for the required next steps. 2.2 Project indicators, risks and assumptions 87. The main identified risks to the successful implementation of the project include: The local energy pricing policy does not support energy efficiency investments; No or slow adoption of the proposed revised energy efficient construction norms and minimum energy performance standards by the Government; Lack of inter-institutional ownership and co-operation in implementing the project activities; The adopted construction norms and minimum energy performance standards may not be effectively enforced despite the support provided by the project;; Lack of interest of the managers of the construction companies and other building professionals such as architects, building engineers, construction workers and their supervisors to commit time for and to apply in practice the training provided by the project; Inadequate local availability of certified, cost-effective construction materials and building appliances to meet the revised energy efficiency targets; Lack of adequate and reliable market data to facilitate the monitoring of project impact and planning of further policy measures; Inadequate and/or non-capacitated human resources to successfully implement the project and support the mainstreaming of its results; and UNDP Environmental Finance Services Page 22

23 The projected co-financing does not materialize. 88. Further details on these risks with their probability and impact analysis and related mitigation measures are presented in the Offline Risk Log in Annex For addressing the project management risk, a committed, full-time project manager with adequate outreach and networking skills is absolutely essential for the success of the activities. He/she should have an ability: i) to engage the key stakeholders in constructive discussion about the future EE development needs of the Belarussian building sector; ii) to guide and supervise the studies done and effectively co-operate with the international experts that are engaged to support this work; iii) to present their findings and recommendations in a convincing manner to key policy makers and opinion leaders by taking into account the main macroeconomic and policy drivers for local energy sector development; and iv) to identify areas of future work. 90. A typical risk for different training and capacity building activities is that after the completion of training, there will be no real demand for the services of the trained experts. The integrated approach adopted by the project is expected to mitigate this risk by combining the training with concrete possibilities to apply the new skills in practice in the planned demonstration projects and as a result of the planned new construction norms. In addition, the energy platform will provide opportunities for experts trained under the project to advertise their services. 2.3 Expected global, national and local benefits 91. The calculated global GHG reduction benefits of the project will consist of the combination of: direct GHG emission reduction benefits from the pilot/demonstration projects implemented in the frame of the project and supported by project funding; and indirect GHG reduction benefits resulting from broader market transformation, to which the project is contributing. 92. The direct GHG reduction benefits of the project have been estimated at 12,2 thousand tons of CO 2 eq resulting from the implementation of complementary energy efficiency measures (going beyond the current construction norms) in the proposed demonstration buildings. The calculation period for the EE measures affecting space heating has been assessed as equal to 30 years and for appliances used for hot water preparation equal to 15 years. 93. The cumulative indirect GHG reduction benefits of the project have been estimated at 6,2 Mt of CO 2 eq. This is resulting from: i) the adoption of the requirements of the new Building Code for the construction activities started during project implementation and ii) from the adoption of the new Building Code, from its effective enforcement and from the associated capacity building and awareness raising activities for new construction started after the end of the project until the end of 2026 i.e. about ten years after the project completion. For the indirect impact, a causality factor that is gradually declining from 4 (80%) in 2016 to 2 (40%) in 2026 has been assumed. For further details about the assumptions made in calculating the project s global benefits, see Annex The associated national and local benefits from improved energy efficiency include reduced local pollution from the burning of fossil fuels, strengthened national energy security through reduced dependency on imported fuels as well as direct socioeconomic benefits in terms of reduced energy bill of the final end-users, thereby reducing fuel poverty. The planned phase-out of the subsidies for heat and hot-water supply for public utility users and population by the end of 2014 has made the latter even more actual. 95. Complementary national economic benefits include new employment and business opportunities from the increased use of different energy efficient and renewable energy technologies and/or materials, their installation and related after-sale services. 2.4 Project rationale and GEF policy conformity 96. The project is in accordance with the GEF s Strategic Programme #1 on Promoting Energy-Efficient Buildings and Appliances of the Focal Area Strategies and Strategic Programming for GEF-4, dated July 25, 2007, UNDP Environmental Finance Services Page 23

24 97. Minimum energy performance standards and buildings energy certificates are proven instruments to achieve the transformation towards more energy efficient buildings. Their effectiveness assumes, however, that the adopted regulations are also effectively implemented and enforced as well as updated at regular intervals to reflect the changing market environment. 98. While the largest potential for building sector energy savings remains in the renovation of old buildings, the Government of Belarus has indicated a strong preference to maintain the focus of this project on new construction due to the fact that this is an area, in which limited work has been carried out to date. The activities on the thermal rehabilitation of existing buildings have been ongoing for well over 10 years and, therefore, complementary technical assistance and/or demonstration projects in this field are not considered to yield major additional results. The existing building stock going through major renovation may be addressed in the new construction norms and certification schemes, however. 2.5 Country Ownership: Country eligibility and country drivenness 99. According to the Instrument for the Establishment of the Restructured Global Environment Facility, Belarus qualifies for GEF financing on the following grounds: It has ratified the UN Framework Convention on Climate Change; and It receives development assistance from UNDP s core resources The objective of the project is consistent with the government policy to reduce the dependency of Belarus on imported energy resources and the related President's Directive 3 about energy conservation. The adopted programs include: i) a program to modernize major energy generating plants; ii) a program to convert existing heating plants to combined heat and power generation; iii) an energy efficiency program for ; and (iv) the national programme for for the development of local and renewable energy sources to cover 28 % of the total energy balance by renewable sources of energy In line with the above, Belarus has also started the production of more energy efficient insulating materials, new windows with better energy performance and units for recovering heat from ventilation air. Installation of apartment level heat meters and thermal energy regulators has been mandatory for all new residential and public buildings and those going through a major renovation since The proposed project will form an integral part of a larger programmatic effort by the Government of Belarus to improve the energy efficiency of the economy and shall be closely co-ordinated with the other projects discussed in chapter 1.4 and, in particular, with the ongoing UNDP GEF Energy-Efficiency in the State Sector project By a letter dated October 17, 2011, the new GEF Operational Focal Point, Mr. Vitaly Kulik has reendorsed the project and by letters dated October 14, 2011 and October 19, 2011, respectively, the EED and the MoAC have reconfirmed their commitment to adopt revised national energy performance norms and standards in line with the provisions of the project document. 2.6 Financial Modality and Cost-Effectiveness 104. The GEF support will primarily consist of grants for technical assistance, which will support the Government of Belarus to further develop and implement required policies to facilitate market transformation towards more energy efficient buildings. The GEF funding will be complemented by domestic financing of pilot projects by national developers as well as by the provisions of Government s national energy efficiency program implemented by the EED and the financial resources managed by the Ministry of Architecture and Construction. For further details about the project budget and related co-operation arrangements, see section Total Budget and Work plan and the attached co-financing letters The proposed activities seeking to introduce new minimum energy performance standards (pushing the market) with related certification and informative energy performance labels (pulling the market), are in line with the international experiences and lessons-learnt regarding the most cost-effective measures to improve the energy efficiency of the building sector. UNDP Environmental Finance Services Page 24

25 106. The combined direct and indirect global benefits of the project resulting from the new regulations and foreseen investment support have been assessed at 6,2 million tons of CO 2eq. With a GEF funding request of US$ 4.5 million, this corresponds to abatement costs of about US$ 0,7 per tons of CO 2 reduced. 2.7 Sustainability (including financial sustainability) 107. In order to facilitate sustainable market transformation towards more energy efficient buildings, there is a need for parallel, mutually supporting measures that can: i) push the market towards more energy efficient buildings by gradually strengthened regulatory framework; ii) institutional capacity building of the public authorities to ensure effective enforcement of this regulatory framework; iii) supply side capacity building to ensure correct and cost-effective implementation of the requirements of the regulations; and iv) enhanced awareness of the demand side to increasingly pay attention to the energy performance of the buildings. The project will work at all these fronts. After the compliance with the new construction norms has become as business as usual with adequate supply of energy efficient construction materials and trained workers to install them correctly, the project results can be viewed as sustainable and largely irreversible While minimum energy performance standards regulate the maximum energy consumption allowed for new buildings, energy performance certificates seek to influence consumers voluntary choices for more energy efficient buildings with a goal that the information presented in the certificates will receive due attention when considering the costs of the buildings and apartments offered at the market. For this to happen, the consumers need to find the energy performance certificates credible and understandable and understand the connection to life-cycle costs, quality and environmental implications. Once the majority of customers learn to demand and interpret the information presented in the certificates as a part of their investment considerations and can trust the information presented there, the results can be similarly viewed as sustainable and largely irreversible An obvious requirement for the long term sustainability of the project is also that the electricity, heat and fuel tariffs reflect the full costs of energy generation and distribution and their environmental impacts, so as to justify the proposed energy efficiency investments also in economic terms. The continuing increase of the energy prices in Belarus and the decision of the Belarusian Council of Ministers to phase- out all energy price subsidies by the end of 2014 create a strong basis for this Any financial incentives that may be required for the transition period until the energy prices have reached the level of full cost-recovery need to be made predictable and backed up by adequate financial resources so as to prevent damaging stop-and-go dynamics in the market. 2.8 Replicability 111. Given the current interest of several UNDP/GEF programme countries to develop and implement new standards and construction norms for more energy efficient buildings, the materials developed and the results and lessons learnt in this project are expected to be of direct interest also to other countries. Close monitoring and evaluation of the project implementation and results also in this respect will be of primary importance The project seeks to facilitate continuing contacts and co-operation between the different stakeholder groups at the national and international level by organizing seminars, workshops and other public events, thereby bringing the project proponents, policy makers and potential investors / other donors together. UNDP Environmental Finance Services Page 25

26 UNDP Environmental Finance Services Page 26

27 3. PROJECT RESULTS FRAMEWORK: This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: 3.1: Country s capacity to mitigate and adapt to the climate change strengthened Country Programme Outcome Indicators: GHG emission (tons of CO2 equivalent) into the atmosphere. Primary applicable Key Environment and Sustainable Development Key Result Area (same as that on the cover page, circle one): 1. Mainstreaming environment and energy OR 2. Catalyzing environmental finance OR 3. Promote climate change adaptation OR 4. Expanding access to environmental and energy services for the poor. Applicable GEF Strategic Objective and Program: GEF s Strategic Programme #1 of GEF-4 on Promoting Energy-Efficient Buildings and Appliances. Project Objective 4 To reduce the energy consumption and related GHG emissions with the focus on new residential buildings. Outcome 1 5 Strengthened legal and regulatory framework and mechanisms to enforce the legislation Indicator Baseline Targets Number of buildings designed and constructed in accordance with the new energy efficiency standards. Amount of reduced CO 2 emissions compared to the projected baseline Status of the national laws and other regulatory documents controlling the energy consumption of the Prescriptive thermal standards adopted in 2010 defining minimum mandatory U-values for the building envelope, End of Project 0 At least 10% (around 80 buildings) of all new residential multi-storey buildings, for which the design is started during the last year of the project are integrating new EE measures into their design with the target of reducing their combined, annual energy demand for space heating and hot water below 60 kwh/m 2. 0 Lifetime reduction of 220,000 tons of CO 2eq resulting from the energy saving in buildings, for which the construction has started or which have adopted into their design new energy efficiency elements that reduce the energy consumption for heating and hot water in the residential buildings below the current thermal standards in force. Revised minimum energy performance standards adopted for new construction and reaching a status of a law by the end of the project with a Source of verification Project monitoring reports and final evaluation. As applicable, post project market monitoring and evaluations Project monitoring reports and final evaluation. Official government publications and assumptions Risks and Assumptions Suggested EE measures are adopted by the design institutes and construction companies into the design of new buildings. See above Continuing commitment of the Government of Belarus to proceed with the suggested legislation. 4 Objective (Atlas output) monitored quarterly ERBM and annually in APR/PIR 5 All outcomes monitored annually in the APR/PIR. It is highly recommended not to have more than 4 outcomes.

28 for improving the energy efficiency of the building sector with the focus on new residential buildings. newly constructed buildings. corresponding to the average annual heat demand of 60 kwh/m 2 for space heating of typical multi-apartment buildings and kwh /m 2 together with sanitary hot water preparation. target of reducing the energy consumption of new residential buildings for space heating and hot water together below 60 kwh/m 2. An energy performance certification and labelling scheme for both new and existing buildings adopted and under implementation by the end of the project Outcome 2 Enhanced capacity of the Belarusian specialists to implement and effectively enforce new energy efficiency standards and construction norms with the initial focus on new residential buildings.. Demonstrated capacity of the Belarussian building sector specialist to integrate new EE approaches and measures into the design of the buildings and to implement them in practice. Non-integrated design of the buildings just complying with the current prescriptive thermal standards in force. Lack of capacity of the public authorities to effectively supervise and enforce the implementation of the planned new, overall energy performance based norms and standards. Integrated, energy efficient building design approach together with buildings overall energy performance based design principles adopted into the work of at least 30% of all local design institutes as well as into the curricula of all educational institutes in Belarus educating new architects and building construction and HVAC engineers. By the end of the project, at least 50 experts from each key professional group (see outputs 2,2-2.6) and 200 university students have taken and successfully passed courses on energy efficient building design and construction.key public authorities responsible for supervision and enforcement of the planned new norms and regulations trained, The curriculas of the Belarussian educational institutes training architects and building construction and HVAC engineers. Design documents of new buildings submitted for review of the state authorities. Surveys and interviews conducted during project implementation Demonstrated value added of the suggested new approaches to the targeted professional groups. Outcome 3: Demonstrated energy and cost-saving potential of new energy efficiency measures in at least three new residential buildings in two Belarusian cities Status of the demonstration projects. N/A Each of the 3 demonstration buildingsconstructed on schedule and reaching the target for annual external energy demand for space heating and hot water equal or less than 60 kwh/m 2, and their energy consumption and other performance (living comfort etc.) monitored for at least one Monitoring reports of the demonstration projects. All the required agreements concluded and the design of the demo buildings completed in schedule during the first 18 months of project implementation and the construction completed by the end of the third year of project implementation. UNDP Environmental Finance Services Page 28

29 full year. The baseline costs of the 3 demo buildings is covered in full by the project s cofinancing resources and the GEF financing for incremental EE measures won t exceed 15% of the total construction costs of each demo building. Outcome 4: Documented, disseminated and institutionalized project results providing a basis for further replication. Status of the planned public outreach activities Status of the entity to follow up and continue the activities initiated by the project Number of visit and downloads from the project website N/A Planned public outreach activities successfully completed An entity to follow up and, as applicable, to continue the activities initiated by the project has been designated with adequate resources to perform its work. At least 100 hits and 20 downloaded documents per month from the project website by outside visitors Final project report Number of hits and downloads from the project website Project implementation successfully concluded. UNDP Environmental Finance Services Page 29

30 Project outputs and related target(s) / subtarget(s), as applicable Outcome 1: Strengthened legal and regulatory framework and mechanisms to enforce the legislation for improving the energy efficiency of the building sector with the focus on new residential buildings Output 1.1: A formally adopted and endorsed methodology for buildings energy performance monitoring and calculation in line with contemporary EN (see Annex 7-5) or other applicable international standards. Outcome 2: Enhanced capacity of the Belarusian specialists to implement and effectively enforce new energy efficiency standards and norms with the initial focus on new residential buildings. Output 2.1: Developed, published and disseminated stakeholder group specific technical guides, handbooks, guidelines and other related training materials on energy efficiency design and construction of new buildings to support the implementation of the envisaged new construction norms, including dissemination of this information through the internet based energy platform and the project s own Internet site. Outcome 3: Demonstrated energy and cost-saving potential of new energy efficient measures in at least three new residential buildings in two Belarusian cities Output 3.1: Finalized background studies for and design of the selected demo buildings by applying integrated building design principles and taking into account new technologies and approaches for meeting the HVAC needs of those buildings in a most energy and cost efficient way Outcome 4: Documented, disseminated and institutionalized project results providing a basis for further replication. Output 4.1: Developed and published public awareness raising materials and completed nation-wide awareness and information campaign advocating the benefits of energy efficiency measures in new buildings, including economic, social, health, environmental and aesthetical aspect and also addressing the GEF/UNDP visibility requirements. Output 1.2: At least 50 completed energy audits providing information on factual energy consumption and energy balance of different type of existing residential buildings of different age and using different construction techniques. Output 2.2: New courses on integrated building design and building energy efficiency included into the curriculas of all key Belorussian universities educating architects and building engineers and at least 200 students have passed these new courses by the end of the project. Output 3.2: Finalized construction of the demo buildings by ensuring that the construction and all installation are made in accordance with the proposed or adopted quality standards and guidelines Output 4.2: Agreed methodology and sustainable institutional arrangements for annual market monitoring keeping track on buildings constructed each year as well as the sale of key building materials, accessories and appliances together with their energy performance characteristics Output 1.3: A completed review and cost-efficiency analysis of different technical options to improve buildings energy efficiency and the use of renewable energy sources, including an analysis of the cost-efficiency of different heat supply and distribution methods to serve low or close to zero energy buildings. Output 2.3: At least 50 experts from different state and municipal entities dealing with construction policies, norms and standards are trained on the most recent international developments, experiences and lessons learnt on building energy efficiency and environmentally sustainable construction. Output 3.3: A monitoring report on the construction of the demonstration buildings documenting the experiences and lessons learnt from procuring, installing and testing the new energy efficient materials, construction techniques and appliances. Output 4.3: Fully mandated and capacitated state agency with a responsibility to monitor the energy savings and CO 2 emission reductions in residential and other buildings, together with the agreed procedures and interagency agreements for compiling the required primary data. Output 1.4: A completed analysis of the impact of the new low energy buildings on the feasibility of different heat supply systems typically used in Belarus and the buildings central water heating + radiator scheme connected to district heating, in particular, with related recommendations for future development; Output 2.4: At least 50 architects and other buildings designers from the leading design institutes and professional associations are trained on the: i) most recent international developments in the area of energy efficient buildings from the technical and policy perspective; ii) integrated, energy efficient building design principles and techniques; iii) implications in the practical design work when moving from prescriptive norms to buildings overall energy performance based construction norms; iv) available technical options and cost-effective design principles for optimizing Output 3.4: A monitoring report on the energy performance of the demonstration buildings documenting the actual energy and financial savings and GHG emission reduction from each building as a whole and from each specific energy efficiency measure and appliance tested. Output 4.4: An approved national energy audit program (including the required funding for its implementation) for promoting larger number of energy audits of residential and other buildings and including a mechanism for using the audit results for elaboration of the energy efficiency strategies for the building sector at the national level. UNDP Environmental Finance Services Page 30

31 buildings energy performance; and v) presentation of the available, state of the art software to support integrated, energy efficient building design and training for its use. Output 1.5: A finalized draft with related stakeholder consultations for revised national energy performance based norms and standards for newly constructed buildings and, as applicable, those going through a major renovation with the initial focus on residential buildings. Output 2.5: At least 50 construction inspectors from the main regional and district centers trained on methodologies for assessing buildings energy performance and the correct installation of the materials and equipment used. Output 3.5: At least 30 private showings of the new buildings organized for local architects, designers, builders and other decision makers, including half-day training sessions with an objective to promote the solutions adopted for the demonstration projects in additional buildings. Output 4.5: Energy-efficiency aspects integrated into the regional and local plans for territorial development being developed by the Institute of Urban and Regional Planning (IRUP) Output 1.6: Elaborated and by the Government of Belarus adopted practical procedures for the establishment of a mandatory system of EE certification of buildings, including issuing of EE passports and a system of monitoring and compliance checking with related on-site spotchecks. Output 2.6: At least 50 supervisors of the leading construction companies trained on the correct installation of the materials and equipment used and provision of other advise for private construction companies on how to integrate elements of energy efficient design in their investment projects throughout the project cycle from the design to construction and building management. Output 4.6: An International conference on energy efficiency in residential sector held in Belarus, including a field visit to the pilot demonstration sites and coordination with other UNDP/GEF building energy-efficiency projects. Output 1.7: Further developed and adopted quality standards and a system of EE certification for the construction materials, accessories and appliances used in the construction sector. Output 2.7: A two-week training seminar for professional designers, representatives of the state expertise and building supervision in order to familiarize the group with the experiences of energy-efficient building design, construction and governance (including the role of municipal authorities) in EU countries and visiting the facilities (25 people). Output 4.7: Regularly updated project website with a link to an Expanded Energy Platform. Output 2.8: Other required training, networking and exchange of knowledge and lessons learnt by building on co-operation with other international initiatives promoting energy efficient and environmentally sustainable building construction. Output 4.8: Annual market monitoring reports for new building construction with the emphasis on energy efficiency aspects. Output 4.9: Final project report consolidating the results and lesson learnt from the implementation of the proposed project components and recommendations for the required next steps. UNDP Environmental Finance Services Page 31

32 TOTAL BUDGET AND WORKPLAN Award ID: Project ID(s): Award Title: Business Unit: Project Title: PIMS no Implementing Partner (Executing Agency) Belarus - Improving Energy Efficiency in Residential Buildings UNDP Belarus CO Country Name Project Title: Belarus - Improving Energy Efficiency in Residential Buildings Energy Efficiency Department GEF Outcome/Atlas Activity Responsible Party/ Implementing Agent Fund ID Donor Name OUTCOME 1 EED GEF OUTCOME 2. EED GEF Atlas Budgetary Account Code ATLAS Budget Description Amount Year 1 (USD) Amount Year 2 (USD) Amount Year 3 (USD) Amount Year 4 (USD) Amount Year 5 (USD) Total (USD) See Budget Note: International Consultants Local Consultants Travel Contractual services companies Equipment Printing and publication costs Miscellaneous Training workshops and meetings sub-total GEF Total Outcome International Consultants Local Consultants Travel Equipment Printing and publication costs Miscellaneous Training workshops and meetings sub-total GEF UNDP Environmental Finance Services Page 32

33 71300 Local Consultants OUTCOME 3 OUTCOME 4 EED EED 4000 UNDP GEF GEF 4000 UNDP Travel Contractual services companies sub-total UNDP Total Outcome International Consultants Local Consultants Contractual services individuals Travel Contractual services companies Equipment Printing and publication costs Miscellaneous Training workshops and meetings sub-total GEF Total Outcome International Consultants Local Consultants Contractual services individuals Travel Printing and publication costs Miscellaneous Training workshops and meetings sub-total GEF Local Consultants Contractual services companies Meetings/workshops sub-total UNDP UNDP Environmental Finance Services Page 33

34 PROJECT MANAGEMENT (This is not to appear as an Outcome in the Results Framework and should not exceed 10% of project budget) EED 4000 UNDP Total Outcome Contractual services individuals Travel Equipment Communication Office supplies Miscellaneous sub-total GEF International Consultants Contractual services individuals Travel Contractual services companies Maintenance & Operation Miscellaneous sub-total UNDP Total Management TOTAL GEF TOTAL UNDP GRAND TOTAL UNDP Environmental Finance Services Page 34

35 Budget Notes: Number Note 1 Consultancy fee, excluding the mission (travel) costs 2 Including the mission (travel) costs of both international and local experts 3 Consisting of services to be procured from both international and national companies and/or institutions, including buildings energy audits and energy monitoring, technical studies and feasibility assessments and cost-sharing of the EE related works in the planned demo projects. 4 Equipment for buildings energy audits and energy performance monitoring as well as for training 5 Including awareness raising and training materials and those for ensuring visibility according to GEF/UNDP guidelines 6 Costs of training workshops and stakeholder consultations meetings, including an international end of the project workshop under Outcome 4 7 Including the costs of a study tour for the third year 8 Project engineer 9 EE equipment and materials for the demo projects 10 Project manager and an administrative assistant 11 Project procurement specialist 12 Local transportation services + translations 13 Communication Specialist Summary of Funds: 6 Amount Year 1 Amount Year 2 Amount Year 3 Amount Year 4 Amount GEF ,500,000 EED ,300,000 Min. of A & C ,000,000 Min. of Environment ,000,000 MAPID ,000,000 Grodnograzhdanproject ,000,000 UNDP ,000 TOTAL Year 5 Total 6 Summary table should include all financing of all kinds: GEF financing, cofinancing, cash, in-kind, etc. etc UNDP Environmental Finance Services Page 35

36 Summary of project co-financing (in USD) Energy Efficiency Department (EED) Ministry of Arch. and Construction Ministry of Environment MAPID Grodnograzh danproject UNDP Total Outcome 1 Outcome 2 Outcome 3 Outcome 4 Project management TOTAL Description Cash 1,700,000 1,700,000 In-kind 300, ,000 Cash 100, ,000 In-kind 100, , ,000 Cash 10,000,000 6,000,000 7,000,000 23,000,000 In-kind 1,800,000 1,800,000 Cash 100, ,000 In-kind 100, , ,000 Cash 200, ,000 In-kind Cash - 1,700,000 10,000,000 6,000,000 7,000, ,000 25,100,000 In-kind 2,300, ,000 2,600,000 1) Amendment of the existing and development of new EE norms and standards; 2) Trainings and educational activities for EE specialists; 3) Connection of the pilot buildings to the utility service networks; 4) Seminars, conferences and mass media. As a complementary in-kind contribution, the DEE will provide premises, equipped with a telephone line, to host the project office The project budget will cover the PMU s utility and communication expenses. 1) Research, development and design work for improving the legislative framework for EE buildings 2) Training and capacity building of specialists in the construction sector (architects, engineers, builders, etc.) 3) Development and dissemination of information materials on the issues of energy efficiency in buildings Baseline costs of demo buildings Baseline costs of demo buildings Baseline costs of demo buildings See the budget notes in the Atlas budget Letter # UNDP Environmental Finance Services Page 36

37 4. MANAGEMENT ARRANGEMENTS Project Organisation Structure Project Board Senior Beneficiary: Ministry of Architecture and Construction Executive: Department of Energy Efficiency Senior Supplier: UNDP Project Assurance Responsible UNDP Programme Officer Project Manager Project Support TEAM A Legal and regulatory framework TEAM B Training TEAM C Demonstration projects The project will be nationally executed by the Department on Energy Efficiency (DEE) under the State Committee on Standardization following UNDP guidelines for nationally executed projects. The DEE is the leading national governmental agency responsible for improving energy efficiency in Belarus. The executing agency will be accountable to UNDP for the disbursement of funds and the achievement of the project goals, according to the approved work plan. The executing agency will assign a senior officer as the Project Director to: i) coordinate the project activities with activities of other Government entities; ii) certify the expenditures in line with approved budgets and work-plans; iii) facilitate, monitor and report on the procurement of inputs and delivery of outputs; iv) approve the Terms of Reference for consultants and tender documents for sub-contracted inputs; and v) report to UNDP on project delivery and impact. A Project Steering Committee (Project Board) will be established at the inception of the project to monitor the project progress, to guide its implementation and to support the project in achieving its listed outputs and outcomes. It will be chaired by the Project Director and include representatives from the main stakeholders, including the Ministry of Architecture and Construction, Ministry of Environment and UNDP. Other members (including, as applicable, representatives of the construction companies and manufacturers of building materials) can be invited at the decision of the PSC on an as-needed basis, but taking due regard that the PSC remains sufficiently lean to be operationally effective. The final list of the PSC members will be completed at the outset of project operations and presented in the Inception Report by taking into account the envisaged role 7 of different parties in the PSC. The project manager will participate as a non-voting member in the PSC meetings and will also be responsible for compiling a summary report of the discussions and conclusions of each meeting. The day-to-day management of the project will be carried out by a Project Management Unit (PMU) under the overall guidance of the Project Steering Committee. The PMU will be based in Minsk and will report to UNDP, the executing agency and the PSC. The PMU will be composed of a project manager, a project administrative and financial assistant, a procurement specialist and a communication specialist. The Terms of Reference of the 7 Senior Supplier: individual or group representing the interests of the parties concerned which provide funding for specific cost sharing projects and/or technical expertise to the project. Senior Beneficiary: individual or group of individuals representing the interests of those who will ultimately benefit from the project. 37

38 key project personnel are presented in Section IV, Part IV of this project document. The project personnel will be selected on a competitive basis in accordance with the respective UNDP rules and procedures in consultation with the EED and the UNDP/GEF Regional Technical Adviser from the UNDP/GEF Regional Co-ordination Unit in Bratislava. The project manager will be supported by project s international technical advisers as well by the national experts taking the lead in the implementation of the specific technical assistance components of the project. Contacts with experts and institutions in other countries that have already gained more experience in implementing building energy efficiency programs, related policies and financial support measures are also to be established. A number of national institutions will be closely involved in the project implementation. The Ministry of Architecture and Construction of Belarus will be the key partner together with the Stroitechnorm and the Gosstandart in the development and adoption of new energy efficient construction norms and standards. Specialists from these entities will participate in respective trainings and study-tours. The scientific and design institutes, such as the NIPTIS, the Institute of Urban and Regional Planning and the Belzhilproekt, will also be targeted by project to build their institutional and expert capacity. The local construction companies will be responsible for the construction of the demonstration buildings. The Ministry of Environment will be involved in the GHG emission monitoring and calculation of GHG emission reduction. Specialists from the ministry will participate in respective trainings. Specialists from the State Appraisal Committee, the State Construction Inspection, design firms, both state-owned and private, will take part in trainings, along with specialists from a number of Belarusian construction firms. National technical universities, such as the Belarusian National Technical University and the Brest State Technical University will take part in the development of special university courses on energy efficiency in residential building, and will subsequently include these courses into their curricula. The Belarusian Association of Architects and other professional associations, along with condominiums, will actively participate in information dissemination and awareness raising. UNDP Belarus will maintain the oversight and management of the overall project budget. It will be responsible for monitoring project implementation, timely reporting of the progress to the UNDP Regional Co-ordination Center in Bratislava and the GEF as well as organizing mandatory and possible complementary reviews and evaluations on an as-needed basis. It will also support the executing agency in the procurement of the required expert services and other project inputs and administer the required contracts. Furthermore, it will support the co-ordination and networking with other related initiatives and institutions in the country. For successfully reaching the objective and outcomes of the project, it is essential that the progress of different project components will be closely monitored both by the key local stakeholders and authorities as well as by project s international technical advisors, starting with the finalization of the detailed, component-specific work plans and implementation arrangements and continuing through the project s implementation phase. The purpose of this is to facilitate early identification of possible risks to successful completion of the project together with adaptive management and early corrective action, when needed. In order to accord proper acknowledgement to GEF for providing funding, a GEF logo should appear on all relevant GEF project publications, including any hardware purchased with GEF funds. Any citation on publications regarding projects funded by GEF should also accord proper acknowledgement to GEF in accordance with the respective GEF guidelines. The international experiences and lessons learnt from promoting more efficient energy use in buildings, including those from the other GEF funded energy efficiency and renewable energy projects in Belarus have been taken into account in the design of this new project. The applicable parts of the information collected and the work and contacts initiated during the previous projects will be fully utilized, thereby not losing or duplicating the work already done. The activities of the other donors and the foreseen synergies and opportunities for co-operation have been discussed in further detail in chapter 1.5 of this project document. During the implementation, proper care will be taken to have adequate communication and co-ordination mechanisms in place to ensure that areas of common interest can be addressed in a cost-efficient way. 38

39 5. MONITORING FRAMEWORK AND EVALUATION The project will be monitored through the following M& E activities. The M&E budget is provided in the table below. Project start: A Project Inception Workshop will be held within the first 2 months of project start with those with assigned roles in the project organization structure, UNDP country office and where appropriate/feasible regional technical policy and programme advisors as well as other stakeholders. The Inception Workshop is crucial to building ownership for the project results and to plan the first year annual work plan. The Inception Workshop should address a number of key issues including: a) Assist all partners to fully understand and take ownership of the project. Detail the roles, support services and complementary responsibilities of UNDP CO and RCU staff vis à vis the project team. Discuss the roles, functions, and responsibilities within the project's decision-making structures, including reporting and communication lines, and conflict resolution mechanisms. The Terms of Reference for project staff will be discussed again as needed. b) Based on the project results framework and the relevant GEF Tracking Tool if appropriate, finalize the first annual work plan. Review and agree on the indicators, targets and their means of verification, and recheck assumptions and risks. c) Provide a detailed overview of reporting, monitoring and evaluation (M&E) requirements. The Monitoring and Evaluation work plan and budget should be agreed and scheduled. d) Discuss financial reporting procedures and obligations, and arrangements for annual audit. e) Plan and schedule Project Board meetings. Roles and responsibilities of all project organisation structures should be clarified and meetings planned. The first Project Board meeting should be held within the first 12 months following the inception workshop. An Inception Workshop report is a key reference document and must be prepared and shared with participants to formalize various agreements and plans decided during the meeting. Quarterly: Progress made shall be monitored in the UNDP Enhanced Results Based Managment Platform. Based on the initial risk analysis submitted, the risk log shall be regularly updated in ATLAS. Risks become critical when the impact and probability are high. Note that for UNDP GEF projects, all financial risks associated with financial instruments such as revolving funds, microfinance schemes, or capitalization of ESCOs are automatically classified as critical on the basis of their innovative nature (high impact and uncertainty due to no previous experience justifies classification as critical). Based on the information recorded in Atlas, a Project Progress Reports (PPR) can be generated in the Executive Snapshot. Other ATLAS logs can be used to monitor issues, lessons learned etc. The use of these functions is a key indicator in the UNDP Executive Balanced Scorecard. Annually: Annual Project Review/Project Implementation Reports (APR/PIR): This key report is prepared to monitor progress made since project start and in particular for the previous reporting period (30 June to 1 July). The APR/PIR combines both UNDP and GEF reporting requirements. The APR/PIR includes, but is not limited to, reporting on the following: 39

40 Progress made toward project objective and project outcomes - each with indicators, baseline data and end-of-project targets (cumulative) Project outputs delivered per project outcome (annual). Lesson learned/good practice. AWP and other expenditure reports Risk and adaptive management ATLAS QPR Portfolio level indicators (i.e. GEF focal area tracking tools) are used by most focal areas on an annual basis as well. Periodic Monitoring through site visits: UNDP CO and the UNDP RCU will conduct visits to project sites based on the agreed schedule in the project's Inception Report/Annual Work Plan to assess first hand project progress. Other members of the Project Board may also join these visits. A Field Visit Report/BTOR will be prepared by the CO and UNDP RCU and will be circulated no less than one month after the visit to the project team and Project Board members. Mid-term of project cycle: The project will undergo an independent Mid-Term Evaluation at the mid-point of project implementation (insert date). The Mid-Term Evaluation will determine progress being made toward the achievement of outcomes and will identify course correction if needed. It will focus on the effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring decisions and actions; and will present initial lessons learned about project design, implementation and management. Findings of this review will be incorporated as recommendations for enhanced implementation during the final half of the project s term. The organization, terms of reference and timing of the mid-term evaluation will be decided after consultation between the parties to the project document. The Terms of Reference for this Mid-term evaluation will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit and UNDP-GEF. The management response and the evaluation will be uploaded to UNDP corporate systems, in particular the UNDP Evaluation Office Evaluation Resource Center (ERC). The relevant GEF Focal Area Tracking Tools will also be completed during the mid-term evaluation cycle. End of Project: An independent Final Evaluation will take place three months prior to the final Project Board meeting and will be undertaken in accordance with UNDP and GEF guidance. The final evaluation will focus on the delivery of the project s results as initially planned (and as corrected after the mid-term evaluation, if any such correction took place). The final evaluation will look at impact and sustainability of results, including the contribution to capacity development and the achievement of global environmental benefits/goals. The Terms of Reference for this evaluation will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit and UNDP-GEF. The Terminal Evaluation should also provide recommendations for follow-up activities and requires a management response which should be uploaded to PIMS and to the UNDP Evaluation Office Evaluation Resource Center (ERC). The relevant GEF Focal Area Tracking Tools will also be completed during the final evaluation. During the last three months, the project team will prepare the Project Terminal Report. This comprehensive report will summarize the results achieved (objectives, outcomes, outputs), lessons learned, problems met and areas where results may not have been achieved. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the project s results. 40

41 Learning and knowledge sharing: Results from the project will be disseminated within and beyond the project intervention zone through existing information sharing networks and forums. The project will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons learned. The project will identify, analyze, and share lessons learned that might be beneficial in the design and implementation of similar future projects. Finally, there will be a two-way flow of information between this project and other projects of a similar focus. Communications and visibility requirements: Full compliance is required with UNDP s Branding Guidelines. These can be accessed at and specific guidelines on UNDP logo use can be accessed at: Amongst other things, these guidelines describe when and how the UNDP logo needs to be used, as well as how the logos of donors to UNDP projects needs to be used. For the avoidance of any doubt, when logo use is required, the UNDP logo needs to be used alongside the GEF logo. The GEF logo can be accessed at: The UNDP logo can be accessed at Full compliance is also required with the GEF s Communication and Visibility Guidelines (the GEF Guidelines ). The GEF Guidelines can be accessed at: Amongst other things, the GEF Guidelines describe when and how the GEF logo needs to be used in project publications, vehicles, supplies and other project equipment. The GEF Guidelines also describe other GEF promotional requirements regarding press releases, press conferences, press visits, visits by Government officials, productions and other promotional items. Where other agencies and project partners have provided support through co-financing, their branding policies and requirements should be similarly applied. M & E work plan and budget Type of M&E activity Inception Workshop and Report Measurement of Means of Verification of project results. Measurement of Means of Verification for Project Progress on output and implementation Responsible Parties Project Manager supported by an International Expert UNDP CO, UNDP GEF UNDP GEF RTA/Project Manager will oversee the hiring of specific studies and institutions, and delegate responsibilities to relevant team members. Oversight by Project Manager Project team Budget US$ Excluding project team staff time Indicative cost: 20,000 To be finalized in Inception Phase and Workshop. To be determined as part of the Annual Work Plan's preparation. Time frame ARR/PIR Project manager and team None Annually UNDP CO UNDP RTA UNDP EEG Periodic status/ Project manager and team None Quarterly progress reports Within first two months of project start up Start, mid and end of project (during evaluation cycle) and annually when required. Annually prior to ARR/PIR and to the definition of annual work plans Mid-term Evaluation Project manager and team Indicative cost: 40,000 At the mid-point of 41

42 Type of M&E activity Responsible Parties UNDP CO UNDP RCU External Consultants (i.e. evaluation team) Final Evaluation Project manager and team, UNDP CO UNDP RCU External Consultants (i.e. evaluation team) Project Terminal Report Project manager and team UNDP CO local consultant Audit UNDP CO Project manager and team Visits to field sites TOTAL indicative COST UNDP CO UNDP RCU (as appropriate) Government representatives Excluding project team staff time and UNDP staff and travel expenses Budget US$ Excluding project team staff time Indicative cost : 40,000 0 Indicative cost per year: 3,000 For GEF supported projects, paid from IA fees and operational budget US$ 200,000 (+/- 5% of total budget) Time frame project implementation. At least three months before the end of project implementation At least three months before the end of the project Yearly Yearly 42

43 6. LEGAL CONTEXT This project document shall be the instrument referred to as such in Article 1 of the SBAA between the Government of the Republic of Belarus and UNDP, signed on September 24, Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the safety and security of the executing agency and its personnel and property, and of UNDP s property in the executing agency s custody, rests with the executing agency. The executing agency shall: a) put in place an appropriate security plan and maintain the security plan, taking into account the security situation in the country where the project is being carried; b) assume all risks and liabilities related to the executing agency s security, and the full implementation of the security plan. UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement. The executing agency agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267 (1999). The list can be accessed via This provision must be included in all sub-contracts or sub-agreements entered into under this Project Document. Audit Clause: The Audit will be conducted in accordance with UNDP Financial Regulations and Rules and applicable audit policies on UNDP projects. 43

44 7. ANNEXES 44

45 Annex 7-1 OFFLINE RISK LOG # Description Date identified Type 1 The local Political energy pricing policy does not support energy efficiency investments. 2 No or slow adoption of the proposed revised energy efficient construction norms and minimum energy performance standards by the Government 3. Lack of interinstitutional ownership and cooperation in Impact & Probability Countermeasures / Mgt Owner response EE Analysing the proposed Project investments legal and regulatory Board less attractive measures and the EE to the end investments to be promoted users. in the light of their economic and financial feasibility. P 8 = 2 I 9 = 3 Political No policy & basis to drive Regulator the market y transformation for more energy efficient buildings P = 3 I = 5 Political Targets & requiring Organizat institutional ional co-operational and cross- Given the current energy prices in Belarus getting closer to international market prices and the project focus on new mandatory energy performance standards, this risk is not foreseen to be particularly high. Demonstrating and justifying with required background analysis the national economic benefits of the proposed changes Early involvement and ongoing policy dialogue with the key Government decision makers. Sharing information on the energy and cost saving potential of the implementation of effective building EE schemes and related international experiences and progress, including those of the EU. Given the fact that the Government has already demonstrated its readiness to adopt concrete measures to gradually reduce the energy consumption of buildings (including the most recent revision of the construction norms in 2010), this risk is considered as manageable. Fostering the co-operation by early engagement of the key stakeholders and using the Project Steering Committee as a Project Board Project Board Submitted, Last updated by Update N/A N/A N/A Status N/A N/A N/A 8 Probability from 1 (low) to 5 (high) 9 Impact from 1 (low) to 5 (high) 45

46 implementing the project activities sectorai ownership not met. complementary platform for raising issues requiring institutional co-operation. P = 2 I = 4 The complex program of the Council of Ministers of the Republic of Belarus on designing and building of energy-efficient buildings adopted in 2009 minimizes the risk of conflict between the agencies, since this program has been agreed by all the key stakeholders involved in the construction and operation of buildings. 4 The adopted construction norms and minimum energy performance standards may not be effectively enforced despite the support provided by the project. Political Lower & compliance Organizat and therefore ional lower impact of the adopted S&L schemes P = 2 I = 4 Furthermore, the institutional ownership and co-operation is further fostered by project s training and awareness raising activities. The initial surveys and energy audits have confirmed that the compliance with the earlier thermal standards (introduced in 1993) has been quite good. This together with the feedback from the local stakeholder consultations conducted during the project preparatory phase indicate that the risk of inadequate enforcement in Belarus is likely to be lower than in many other GEF programme countries. Project Board National Project Manager N/A N/A Nevertheless, the issue will be further studied during the project implementation. International experiences, enforcement models and possible incentives that can be considered to be of interest by taking into account the existing resources, capacities and organisational responsibilities in Belarus will be explored further and presented to local authorities for consideration. This will be accompanied by related capacity building and institutional strengthening. 5 Inadequate local availability of Lower compliance and therefore As a result of the ongoing efforts of the Government to improve energy 46

47 certified, costeffective construction materials and building appliances to meet the revised energy efficiency targets; 6 Lack of interest of the managers of the construction companies and other building professionals such as architects, building engineers, construction workers and their supervisors to commit time for and to apply in practice the training provided by the project. 7 Lack of adequate and reliable market data to facilitate the monitoring of project impact and planning of further policy measures. lower impact of the adopted S&L schemes P = 2 I = 4 Strategic Low level of compliance and implementatio n Organizat ional P = 3 I = 3 Inadequate information for monitoring project impact and for planning new policy measures P = 4 I = 3 efficiency of buildings, a relatively good selection of energy efficient building materials and appliances (such as EE windows) is already available in the market. According to the feedback from the local stakeholder consultations, the lack of availability of certified construction materials is not going to present a major bottleneck to improving the energy efficiency of buildings, As with the previous risk, however, the situation will be monitored and further studied during the project implementation, including random tests of some construction materials used in order to verify their compliance with the stated performance. Continuing dialogue and engagement of the private sector by identifying and pursuing the idea of new market opportunities and common benefits. Starting with a limited number of trainees to identify the main drivers guiding the work of different building professionals, to test the different training approaches and to demonstrate the common benefits of the training, thereby gradually raising the interest among the broader group and developing the training up to the point. Supporting legal and regulatory framework Close cooperation with the Statistical Institute of Belarus, local construction companies, producers and sellers of different construction materials and equipment, industry associations and Government entities collecting related statistical information. National Project Manager (NPM). N/A N/A NPM N/A N/A 47

48 Introducing a new form of statistical reports showing the specific energy performance of buildings For required additional data, specific surveys and/or other expanded data collection activities to be initiated. Cross-checking the reliability of the data by comparing the results from different sources and approaches (e.g. top-down / bottom-up). 8 Inadequate and/or noncapacitated human resources to successfully implement the project and support the mainstreamin g of its results. Operatio nal Project not meeting the stated targets. P = 3 I = 5 Open tendering and thorough screening of the candidates applying for the posts as well as establishing partnerships with recognized international entities and/or individual experts with proven track record of successfully supporting similar actions in Belarus and in other countries. UNDP N/A N/A UNDP procurement procedures applied in a pragmatic and efficient way (within the allowed limits) to meet the project support requirements in a timely fashion and to ensure the highest professional level of the support provided. Adequate training of the key project staff and their exposure to international experiences and lessons learnt. 9 The projected cofinancing does not materialize Operatio nal Project not meeting the stated targets. P = 2 I = 5 In addition to obtained cofinancing letters, reconfirming the co-financing commitments in-prior starting the project implementation. UNDP 48

49 Annex 7-2: Agreements The co-financing letters are included as separate annexes. 49

50 Annex 7-3: Terms of Reference Project Steering Committee (PSC) Duties and responsibilities: The Project Steering Committee (PSC) is the main body to supervise the project implementation in accordance with UNDP rules and regulations and referring to the specific objectives and the outcomes of the project with their agreed performance indicators; The main functions of the PSC are: General monitoring of the project progress in meeting of its objectives and outcomes and ensuring that they continue to be in line with the national development objectives; Facilitating the co-operation between the different Government entities, whose inputs are required for successful implementation of the project, ensuring access to the required information and resolving eventual conflict situations raising during the project implementation when trying to meet its outcomes and stated targets; Supporting the elaboration, processing and adoption of the required institutional, legal and regulatory changes to support the project objectives and overcoming of related barriers; Facilitating and supporting other measures to minimize the identified risks to project success, remove bottlenecks and resolve eventual conflicts; Approval of the annual work plans and progress reports, the first plan being prepared at the outset of project implementation; Approval of the project management arrangements; and Approval of any amendments to be made in the project strategy that may arise due to changing circumstances, after the careful analysis and discussion of the ways to solve problems. PSC Structure and Reimbursement of Costs The PSC will be chaired by the Project Director or other person assigned by the executing agency. The PSC will include a representative from the key Ministries and Agencies involved in the project, a representative of UNDP and, as applicable, representatives of project s other co-financing partners. Other members can be invited by the decision of the PSC, however by taking care that the PSC still remains operational by its size. The project manager will participate as a non-voting member in the PSC meetings. A draft list of the permanent members of the Project Steering Committee is provided under section III of the project document: Project Management and Implementation Arrangements. Other participants can be invited into the PSC meetings by the decision of the PSC. The costs of the PSC s work shall be considered as the Government s or other project partners voluntary in-kind contribution to the project and shall not be paid separately by the project. Members of the PSC are also not eligible to receive any monetary compensation from their work as experts or advisers to the project. Meetings It is suggested that the PSC will meet at least twice a year, including the annual TPR meeting. A tentative schedule of the PSC meetings will be agreed as a part of the annual work plans, and all representatives of the PSC should be notified again in writing 14 days prior to the agreed date of the meeting. The meeting will be organized provided that the executing agency, UNDP and at least 2/3 of the other members of the PSC can confirm their attendance. The project manager shall distribute all materials associated with the meeting agenda at least 5 working days in prior to the meeting. 50

51 National Project Director As a representative the Government and project s executing agency, the National Project Director has the main responsibility to ensure that the project is executed in accordance with the project document and the UNDP guidelines for nationally executed projects. His/her main duties and responsibilities include: Supervising the work of the Project Manager through meetings at regular intervals to receive project progress reports and provide guidance on policy issues; Certifying the annual and, as applicable, quarterly work plans, financial reports and requests for advance of funds, ensuring their accuracy and consistency with the project document and its agreed amendments; Authorizing the project contracts, following the approval of UNDP; Unless otherwise agreed, chairing the Project Steering Committee and representing the project in other required meetings; Taking the lead in developing linkages with the relevant authorities at national, provincial and governmental level and supporting the project in resolving any institutional or policy related conflicts that may emerge during its implementation; Project Manager (full-time) Duties and responsibilities: Operational project management in accordance with the project document and the UNDP guidelines and procedures for nationally executed projects, including: General coordination, management and supervision of project implementation; Managing the procurement and the project budget under the supervision of the Executing Agency and with support from UNDP to assure timely involvement of local and international experts, organisation of training and public outreach, purchase of required equipment etc. in accordance with UNDP rules and procedures; Submission of annual Project Implementation Reviews and other required progress reports (such QPRs) to the PSC, Executing Agency and the UNDP in accordance with the section Monitoring and Evaluation of the project document; Ensuring effective dissemination of and access to information on project activities and results, (including an regularly updated project website); Supervising and coordinating the contracts of the experts working for the project; As applicable, communicating with project s international partners and attracting additional financing in order to fulfill the project objectives; and Ensuring otherwise successful completion of the project in accordance with the stated outcomes and performance indicators summarized in the project s logframe matrix and within the planned schedule and budget. Expected Qualifications: Advanced university degree and at least 10 years of professional experience in the specific areas the project is dealing with, including solid knowledge of international experiences, state of the art approaches and best practices in building energy efficiency and its sustainable promotion (by applying different policy measures, new financing mechanisms etc.) Experience in managing projects of similar complexity and nature, including demonstrated capacity to actively explore new, innovative implementation and financing mechanisms to achieve the project objective; Demonstrated experience and success in the engagement of and working with the private sector and NGOs, creating partnerships and leveraging financing for activities of common interest; 51

52 Good analytical and problem solving skills and the related ability to adaptive management with prompt action on the conclusion and recommendations coming out from the project s regular monitoring and selfassessment activities as well as from periodical external evaluations; Ability and demonstrated success to work in a team, to effectively organise it works and to motivate its members and other project counterparts to effectively work towards the project s objective and expected outcomes;. Good communication skills and competence in handling project s external relations at all levels; and Fluent in Belarussian/Russian languages Good knowledge of English Familiarity and prior experience with UNDP and GEF requirements and procedures are considered as an asset Project Assistant (full-time) Duties and responsibilities: Supporting the project manager in the implementation of the project, including: Responsibility for logistics and administrative support of the project implementation, including administrative management of the project budget, required procurement support etc. Maintaining the business and financial documentation up to date, in accordance with UNDP and other project reporting requirements; Organizing meetings, business correspondence and other communication with the project partners; Supporting the project outreach and PR activities in general, including keeping of the project web-site up to date; Managing the projects files and supporting the project manager in preparing the required financial and other reports required for monitoring and supervision of the project progress; Supporting the project manager in managing the contracts, in organizing correspondence and in ensuring effective implementation of the project otherwise Expected Qualifications: Fluent in English and Russian languages Demonstrated experience and success of work in a similar position Good administration and interpersonal skills Ability to work effectively under pressure Good computer skills 52

53 International Project Adviser and Energy Efficient Building Policy Expert (part-time) Duties and Responsibilities: Support UNDP and the project management in monitoring the progress of the project and its different subcomponents, and, as needed, build the capacity of the local experts working for the project to successfully implement the project activities, ensuring that they comply with the agreed benchmarks and success indicators of the project as well as international best practices and lessons learnt. The specific responsibilities include, among others, to: support the local project team in organising the implementation of the different sub-components of the project at the inception phase and after that, including support to the project manager in the preparation of the project inception report and the annual work plans, drafting of Terms of Reference for the national and, as needed, additional international experts and subcontractors, required tender documents etc; review the existing building sector policies and identify gaps and propose changes by taking into account the most recent international developments in this field; support the local expert(s) in drafting recommended policy changes and in organizing training to build the capacity of the local stakeholders for designing, analysing the impact and implementing effective EE building policies; propose methodologies and specific software models for market monitoring and for assessing the impact of the project and the adopted policies in terms of energy savings and GHG reduction. support the project manager in supervising the work of the contracted individual experts and companies, including review of the feasibility studies and the technical design, financing and implementation arrangements of the planned demonstration projects; support the project manager in arranging co-operation with the current project partners and, as applicable, in establishing new, additional national and/or international partnerships to support the project goals and objectives; support the local project team in monitoring and evaluating the performance and outcome of the demonstration projects under implementation; monitor the progress of the project and participate in the development of periodic progress reviews and, as applicable, the annual Project Implementation Reviews; train personally or, as needed, organize other training for the local stakeholders to successfully implement the project and to meet its capacity building objectives; and provide other advice on the required institutional, legal and regulatory changes to support the reaching of the stated outcomes of the project and provide other required advice on the successful implementation of the specific project subcomponents and activities by drawing from the international lessons learnt and best practices. Expected Qualifications: a university degree in energy, construction or engineering; demonstrated experience and success in supporting similar projects (or its sub-components) in other GEF programme countries; good knowledge of international experiences, state of the art approaches and best practices in the specific areas the project and its subcomponents are dealing with; good analytical skills and effective communication and training skills and competence in handling external relations at all levels; ability to work in a team and to motivate other team members and counterparts; fluency in English, knowledge of the Russian/Belarusian language and familiarity with UNDP and GEF requirements is considered as an asset. 53

54 Annex 7-4: Greenhouse Gas Emission Reduction Analysis The GHG emissions reduction calculation reflects the standard GEF methodology, differentiating between direct and indirect emission reductions and using a causality factor for the latter. The direct GHG reduction impact results from the implementation of the planned 3 demonstration projects and has been estimated at 12.2 kt CO 2 eq. The indirect impact results from: (i) the adoption of the requirements of the new minimum energy performance standards for buildings, for which the design or construction is started during project implementation; and (ii) from the adoption of the new construction norms, their effective enforcement and from the associated capacity building and awareness raising activities for new construction started after the end of the project until The combined cumulative direct and indirect benefits linked to the implementation of the project and the buildings constructed during the period have been estimated at 6,2 Mtons of CO 2eq. For the indirect impact, a causality factor that is gradually declining from 4 (80%) during project implementation to 2 (40%) in 2026 has been assumed. As the calculation period for the impact of the different energy saving measures and appliances adopted into new buildings constructed during , 30 years has been applied for space heating needs and 15 years for the appliances used for the preparation of sanitary hot water. As in other similar projects, the achieved greenhouse gas reductions are highly cost-effective. Considering both the direct and indirect emission reductions, the abatement costs for GEF funding can be assessed at about USD 0,7 per tonne of CO 2 abated, thereby making this project economically and environmentally very attractive. In calculating the emission factor, the same energy supply mix has been considered for both the baseline and alternative scenario consisting primarily (i.e. 95%) of heat supplied by a centralized district heating (DH) system. The share of cogenerated heat in the energy supplied through the DH network has been estimated at 45 %, while the rest is produced in heat only boilers. These and the other assumptions and calculation parameters are summarized in table 1 below. Table 1 Assumptions and parameters used for calculating the GHG emission factor for demand side energy savings in space heating and sanitary hot water preparation. Source Estimated share in heat supply to residential building Share of fuels (IEA 2008) Average conversion efficiency Transmission & distribution losses Emissions per kwh of heat used kgco 2eq/kWh DH from CHP 45% Gas: 95,8 % Oil: 2,9% Peat: 0,3% Wood and waste: 1,1% DH from heat 50% Gas: 76,8 % only boilers Oil: 7,6% Peat: 2,8% Wood and Individual gas heaters 1,26 10% 0,179 0,85 10% 0,244 waste: 12,90% 5% Gas: 100% 0,75 0% Average emission factor to meet buildings heat and hot water demand 0,216 For calculating the emission factor for cogenerated heat, the most recent IEA energy statistics from 2008 complemented by available national statistics from 2009 were used to assess the complementary fuel consumption of cogeneration plants to produce both heat and electricity, when compared to the situation where the same amount of electricity would have been produced in condensing power plants. This difference in the consumption of primary energy was accounted as the source of emissions for cogenerated heat. Thus, the more conservative estimate for GHG reduction than by relying on the heat only boilers as the only source of heat for 54

55 district heating. The transmission and distribution losses were estimated at 10%. For emission factors of primary fuels, the 2006 IPCC emission factors were used. As the current use of electricity for space heating and sanitary hot water preparation can be considered as negligible, the grid-emission factor was not calculated and taken into account in the calculations. Should some electricity consuming appliances such as heat pumps come out as a feasible energy saving measure during further project implementation, the average emission factor for grid-electricity can be calculated and taken into account in further GHG reduction analysis. Baseline Energy Consumption and GHG Emissions The baseline scenario of the project is based on the current construction norms in force (adopted in summer 2010) resulting in average heat demand for space heating for new residential buildings at 60 kwh/m 2 until 2021 and 40 kwh/m 2 after that and for sanitary hot water in average at 65 kwh/m 2. Combining this with the projected new construction between and the heat consumption of the existing residential building stock as per the national statistics of 2009, the baseline scenarios for the energy consumption and the related GHG emissions for meeting the space heating and the sanitary hot water needs of the residential building stock can be seen in figure 1. Figure 1: Projected baseline final energy consumption and GHG emissions from meeting heating and hot water demand of the residential buildings stock in Projected Energy Saving and GHG Reduction Impact of the Project The energy saving and GHG reduction impact of the project has been assessed at three levels: 1. The direct GHG reduction impact resulting from the implementation of the planned 3 demonstration projects; 2. The indirect impact resulting from the adoption of the requirements of the new minimum energy performance standards and related construction norms for the construction activities started during project implementation; and 3. The indirect impact resulting from the adoption of the new construction norms and their effective enforcement together with the associated capacity building and awareness raising activities for new construction started after the end of the project until 2026 (with a gradually decreasing causality factor as it relates to the GEF project impact). A summary of the analysis at these three levels is presented below. 55

56 1) Direct GHG reduction impact resulting from the implementation of the planned 2 demonstrations projects. By reducing the space heating demand of the three demonstration buildings from the average of 60 kwh/m 2 resulting from the current prescriptive construction norms in place (as adopted in 2010) to 20 kwh/m 2 and the heat demand for sanitary hot water from the current average of 65 kwh/m 2 similarly to 40 kwh/m 2, the annual savings have been estimated at minimum as 65 kwh/m 2. This will be achieved by: Optimization of the architectural design of the building (shape, orientation, placing of windows etc.) by taking into account the energy efficiency aspects and options for increasing use of renewable energy resources; Improved thermal insulation of the building envelope in accordance with the most recent norms and requirements adopted (or to be adopted) in EU countries with the climatic conditions similar to Belarus and by optimizing the required thermal resistance values of each building component by considering both the costs and the energy consumption of the building as a whole; Forced ventilation with heat recovery up to 80% from the exhaust air; Solar water heating and/or heat recovery from waste water to be used for preheating of sanitary hot water As applicable, utilization of ground heat by heat pump combined to specific design of the foundation pillars; and Improved, automatic regulation and monitoring of the heat and hot water consumption. Table 1 presents the initial analysis of the direct GHG reduction impact of the project with the target of at least 65 kwh/m 2 savings in final energy use compared to recently constructed similar buildings in accordance with the current construction norms in force. This analysis together with the detailed design of the three demo buildings will be finalized during the first year of project implementation by a team consisting of both local and international architects and HVAC engineers. Table 1 project. Summary of the assumptions for and results from calculating the direct GHG reduction impact of the Estimated total demonstration project floor area m 2 Average annual savings in space heating demand 40 kwh/m 2 a Average annual savings in the use of heat for sanitary hot water preparation 25 kwh/m 2 a Calculation period for energy savings in space heating 30 years Calculation period for energy savings in sanitary hot water preparation 15 years Total energy savings over the calculation period kwh/m 2 Average emission factor for final energy use kgco 2 /kwh Demo project CO 2 reduction over the calculation period 12,2 kt CO 2eq 2) Indirect impact resulting from the adoption of the targeted requirements of the new construction norms for buildings, for which the design and/or construction has started during the project implementation For the indirect impact that can still be monitored during the project implementation, the end of the project target has been set as facilitating the adoption of the requirements of the targeted new minimum energy performance standards by 10% of all new residential buildings, for which the design or construction is started during the last year of the project. This is equivalent to about square meters of floor area or 80 buildings of about 10,000 m 2 each. The corresponding GHG reduction will be 220 ktco 2eq. 56

57 3) The indirect impact resulting from the project activities and the associated capacity building and awareness raising activities for all new building construction until For estimating the indirect impact resulting from the adoption of the requirements of the new minimum energy performance standards for the construction activities started after the project duration, it has been conservatively estimated that the level of compliance will gradually increase from the average of 50% in to 80% in These and other related assumptions and results are summarized in the Table 2 below. Table 2 Results and assumptions from calculating the indirect GHG reduction impact of the project NEW CONSTRUCTION IN TOTAL Residential buildings mill. m Share of new building area in compliance with the new MEPS % Corresponding floor area mill. m 2 0, Average baseline heat demand for space heating kwh/m 2.a Targeted new MEPS for space heating kwh/m 2.a Annual savings for SH per m2 kwh/m 2.a Average baseline heat demand for sanitary hot water kwh/m 2.a Targeted new MEPS for sanitary hot water kwh/m 2.a Annual savings in heat demand for sanitary hot water preparation Savings in space heating demand over 30 years Saving in heat demand for sanitary hot water preparation over 15 years kwh/m 2.a kwh/m kwh/m Total savings from the new building stock in compliance with the new MEPS TWh 1,02 25,5 31,2 57,7 Emission factor Mtons/TWh Total GHG reduction Mtons 0,2 5,5 6,7 12,4 Causality factor 80 % 60 % 40 % Indirect project impact Mtons of CO 2eq 0,2 3,3 2,7 6,2 By facilitating the adoption of new minimum energy performance standards and related construction norms for new constructions, the project will also pave the way for similar EE measures in the retrofitting of existing building stock. This complementary indirect impact is not, however, taken into account in the calculations. 57

58 Annex 7-5: Current EU Policy Framework for Improving Energy Efficiency in Buildings. The legal and regulatory framework of the EU Member States for promoting the energy efficiency of the energy use in residential, public and commercial buildings is primarily guided by the: 1. The recast 2010/31/EU of the original EU Framework Directive 2002/91/EC and its subsequent amendments on the energy performance of buildings (EPBD) and the related ISO and CEN standards to calculate buildings energy performance. The hierarchy and general content of this package is shown in the figure below, which is to be complemented by the revised national construction norms, standards and regulations. For further details on the requirements set by the EBPD for the EU member states, see the summary presented in Annex 7-6 re 1: Current EU framework for calculating energy performance of buildings (source: Figu A second generation of the CEN standards to serve the implementation of the EPBD is foreseen to be developed in the coming years, also by co-operating with ISO on this. Much of the background work and analysis for this has been done under the EU funded IEE-CENSE project ( implemented in The EU Directive 2009/28/EC on the promotion of the use of energy from renewable sources, which among other provisions is obliging the Member States by December 2014 to set minimum targets for the energy production from renewable energy sources for meeting the heating, and cooling needs in new buildings and in existing buildings that are subject to major renovation as a the overall target to reach at least a 20 % share of energy from renewable sources in the Community s gross final consumption of energy in Furthermore, according to the article 13.5, new public buildings and those subject to major renovation at the national, regional and local level are expected to fulfil an exemplary role from January 2012 onwards. 58