Technical Assistance Report

Transcription

1 Technical Assistance Report Project Number: Regional Capacity Development Technical Assistance (R-CDTA) May 2011 Capacity Building for the Efficient Utilization of Biomass for Bioenergy and Food Security in the Greater Mekong Subregion (Financed by the Nordic Development Fund) The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

2 ABBREVIATIONS ADB Asian Development Bank CO 2 carbon dioxide GERES Groupe Energies Renouvelables, Environnement et Solidarités GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GMS Greater Mekong Subregion Lao PDR Lao People s Democratic Republic NGO nongovernment organization PPP public private partnership TA technical assistance WGA working group on agriculture Type Targeting classification Sector (subsectors) Themes (subthemes) Climate change Location impact Partnership TECHNICAL ASSISTANCE CLASSIFICATION Regional capacity development technical assistance (R-CDTA) General intervention Multisector (agriculture and rural sector development, renewable energy, health programs) Capacity development (institutional development; client relations, network, and partnership development) regional cooperation and integration (other regional public goods, trade and investments); environmental sustainability (eco-efficiency, global and regional transboundary environmental concerns); economic growth (widening access to markets and economic opportunities) Climate change mitigation and climate change adaptation Rural (high), national (medium), regional (high) Nordic Development Fund NOTE In this report, $ refers to US dollars. Vice-President B.N. Lohani, Vice-President-in-Charge, Operations 2 Director General K. Senga, Southeast Asia Department (SERD) Director J. H. Mir, Environment, Natural Resources and Agriculture Division, SERD Team leader Team members S. Setboonsarng, Principal Natural Resources and Agriculture Economist, SERD S. Aman-Wooster, Senior Social Development Specialist, SERD S. Ancha, Senior Climate Change Specialist, SERD O. Badiola, Associate Project Analyst, SERD D. Ellingson, Senior Natural Resources Specialist, SERD N. Ikemoto, Senior Natural Resources Specialist, SERD I. Makin, Senior Water Resources Specialist, SERD A. Musa, Finance Specialist, SERD S. Ranawana, Senior Natural Resources Specialist, SERD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 I. INTRODUCTION 1. Regional cooperation in agriculture under the Greater Mekong Subregion (GMS) regional cooperation program is implemented by the GMS working group on agriculture (WGA). In 2007, the WGA conducted a regional study on strategic options for biofuel and rural renewable energy development in the GMS. 1 The study was further developed into a GMS strategic framework and action plan for biofuels and rural renewable energy, which was endorsed at the fifth annual meeting of the WGA in the Lao People s Democratic Republic (Lao PDR) in To implement the framework, the GMS countries requested the Asian Development Bank (ADB) to prioritize assistance for bioenergy, including technology transfer from more advanced countries in the GMS to Cambodia, the Lao PDR, and Viet Nam, to diversify the region s energy options while ensuring food security. In response, ADB confirmed the regional capacity development technical assistance (TA) for ADB also confirmed a regional project preparatory TA and a regional investment project for Cambodia, the Lao PDR, and Viet Nam in the pipeline. The TA concept was first presented and endorsed by the GMS countries at the annual meeting of the WGA in Viet Nam in A fact-finding mission in January February 2011 further discussed and reached agreement on the concept paper. 2 The design and monitoring framework for the TA is in Appendix 1. II. ISSUES 2. Fighting climate change and improving the well-being of the rural poor while promoting inclusive economic growth are often seen as competing priorities. Yet these goals can all be served at the same time through the efficient use of biomass by the poor. Biomass resources are abundant in the GMS, but their potential to address the energy and food insecurity problems of the poor has yet to be tapped. Large numbers of people in the GMS 92% of the people in the Lao PDR, 85% in Cambodia, and 56% in Viet Nam continue to rely on the unsustainable harvest of fuelwood for their household energy needs. The resulting deforestation, soil erosion, and loss of biodiversity reduce environmental services and performance. Black carbon emissions from the burning of biomass in open fields contribute to the formation of large regional atmospheric brown clouds 3 and are among the three largest contributors to global warming (the other two are carbon dioxide and methane). Black carbon emissions from unimproved cookstoves also create indoor air pollution, causing serious respiratory diseases, especially among women and children. Studies show that improved cookstoves are among the most cost-effective measures for mitigating climate change, reducing environmental impact, and improving the health of the poor. 3. Biodiesel from oilseed crops (e.g., jatropha) grown on marginal lands in integrated farming systems is another source of clean bioenergy for the poor in remote areas. Controversies related to biofuel development relate mainly to the large-scale production of biofuels, displacing food production areas and forestland. However, intercropping biofuel crops in small-scale systems has been shown to improve energy security without compromising food security. Moreover, such systems can contribute significantly to agro-ecological stability and resilience to climate change. Global energy trends and climate change threats highlight the need for low-carbon, sustainable, and efficient energy systems. A 10% increase in the efficiency 1 The study led to the following reports: (i) Integrating Biofuel and Rural Renewable Energy Production in Agriculture for Poverty Reduction in the GMS: An Overview and Strategic Framework for Biofuel Development (main report); (ii) Global and Regional Development and Impact of Biofuels: A Focus on the GMS (modeling report); and (iii) six individual country reports. 2 The TA first appeared in the business opportunities section of ADB s website on 24 March Atmospheric brown clouds have significant effects on regional temperatures, rainfall, agriculture, and health.

4 2 of biomass production, through improved farm management and irrigation, can create enough energy to meet the global energy demand Besides the concerns about energy security, food security in the GMS is increasingly threatened by a deteriorating natural resource base. Over 40% of arable land is degraded, mostly because of unsustainable agricultural practices and deforestation, and remedies are urgently needed. Current agriculture practices also emit greenhouse gases such as nitrous oxide 5 and methane. Agricultural wastes 6 and forest residues, which cause environmental problems and pollute waterways when left to decay, can be used to produce bioenergy, biochar, 7 and organic fertilizers. By-products from bioenergy production (such as bio-slurry from bio-digesters) are high-quality soil amendments. Soils rich in organic matter increase soil fertility, improve water quality, lessen soil erosion, and reduce the toxic impact of pesticides, heavy metals, and other pollutants. Crops grown on healthy soil are more tolerant to floods and drought and more nutritious, and therefore promote food security. In addition, organically grown products are in increasingly greater demand and have become a new income-earning opportunity for the poor. Most importantly, soils rich in organic matter sequester atmospheric carbon and thus reduce greenhouse gas emissions. 5. Several biomass technologies are eligible for carbon financing, offering added incentives for the poor. Improved cookstoves and biochar are among the fast-action strategies 8 for mitigating climate change, that have been prioritized by the United Nations Framework Convention on Climate Change. Given the growing demand for sustainably certified products 9 in the global market, the support for certifying products produced by the poor will help make their products more marketable and increase the income of the poor. The regional sourcing of a critical mass of certified products for the export market is currently limited by the lack of common standards and certification systems. With harmonized standards, a regionally inclusive supply chain can be developed. 6. In Cambodia, the Lao PDR, and Viet Nam, the efficient use of biomass has mostly been promoted on a small scale by nongovernment organizations (NGOs). SNV (a Dutch NGO) has been a major player in promoting biogas, working with the national programs in all three countries. Helvetas (a Swiss NGO) has supported certified organic agriculture in the Lao PDR and Viet Nam. Private sector firms have established supply chains to collect certified jatropha seeds from smallholder farmers. German development cooperation through GIZ has pilot-tested an improved cookstove project in Viet Nam and is now implementing a pilot biochar project in the Lao PDR. In Cambodia, GERES (a French NGO) is the world s first developer of an improved cookstove project to successfully trade on the carbon market. Building on its success, GERES is setting up a stove academy to train other project developers. 7. Expanding investments in biomass technologies to benefit a large number of the poor has been a major challenge except for investments in biogas technology. ADB s experience 4 S. Ladanai and J. Vinterbäck Global Potential of Sustainable Biomass for Energy. Sweden. 5 Nitrous oxide (N 2O) is a potent greenhouse gas with a heat-trapping ability 290 times that of carbon dioxide (CO 2). The heat-trapping ability of methane is 21 times that of CO 2. 6 Residual stalks, straw, leaves, roots, husks, nutshells or seed shells, waste wood, and animal husbandry waste. 7 Biochar production, which converts carbon in plants into a stable charcoal-like substance by burning biomass in an oxygen-reduced atmosphere (pyrolysis), has the potential to mitigate 3.67 gigatonnes of CO 2 per year by Fast-action strategies can be initiated within 2 3 years, implemented within 5 10 years, and produce the required climate response within decades. 9 Such as organic, eco-label, and, biofuel products certified by the Roundtable on Sustainable Biofuels.

5 3 with biogas in the People s Republic of China has been highly successful. 10 Currently, ADB and the World Bank each support a biogas investment project in Viet Nam. Ongoing and past biogas projects, however, show that (i) up to 70% of bio-slurry is still being discharged into the environment as pollutant; and (ii) since biogas production is not an income-earning activity, only better-off households with cash income can sustainably maintain the biogas systems. Using the bio-slurry in producing high-value crops (such as organic crops) would earn extra income for households and enable them to maintain their biogas systems. 8. Recognizing the complex interrelationship between bioenergy, poverty, and food security and the need to ensure climate-friendly development, the Global Bioenergy Partnership, and regional institutions are exerting efforts to work out a common set of principles, indicators, and methods of assessing and monitoring greenhouse gases for the sector. 11 The TA will build on this output in conducting pilot projects and developing capacity to expand investment in the GMS countries. In view of women s focal roles and responsibilities in household energy, waste management, and food security, women s groups will be a principal target of capacity development activities and will be instrumental in expanding such activities. In this way, many rural women the key beneficiaries will benefit through improved health, strengthened energy and food security, and reduced work time. III. THE PROPOSED TECHNICAL ASSISTANCE A. Impact and Outcome 9. The impact will be the improved use of biomass in Cambodia, the Lao PDR, and Viet Nam. The outcome will be the efficient operation of pilot biomass utilization projects. B. Methodology and Key Activities 10. The TA will adopt both regional top down and grassroots bottom up approaches. At the regional level, it will push for high-level dialogue on a common approach to bioenergy development for pro-poor climate change mitigation, and food and energy security. At the same time, it will work with local governments and stakeholders to put in place the human and institutional capacity to increase investments that will help promote the efficient use of biomass to benefit the poor. The TA will include key activities as discussed in paras Output 1: Enhanced regional cooperation on bioenergy development that fosters and safeguards food security. To support a regional approach to climate-friendly development, mechanisms for harmonizing regulations and ensuring their compatibility with international trade obligations will be put in place. This will involve adopting common sets of sustainable indicators, criteria for land use, bioenergy standards, 12 certification and accreditation systems, a computerized traceability system, and eco-labeling systems using a common method of assessing greenhouse gas emissions. International and regional forums will be organized to facilitate high-level dialogue within the region on bioenergy and food security policy issues and to encourage the exchange of information and skills in the wider use of novel technologies. 10 ADB Report and Recommendation of the President to the Board of Directors: Proposed Loan to the People s Republic of China for the Efficient Utilization of Agricultural Wastes Project. Manila (Loan 1924-PRC). 11 The The views Global expressed Bioenergy herein Partnership are those is a G8 of initiative the consultant launched and in 2005 do not to support necessarily wider, represent cost-effective those biomass of ADB s and members, biofuel deployment, Board of Directors, particularly Management, in developing countries or staff, and where may biomass be preliminary use is prevalent. in nature. ADB is participating as observer Including standards set by such organizations as the Global Alliance for Clean Cookstoves and the Roundtable on Sustainable Biofuels, along with quality assurance from regional quality assurance centers to be established for biogas, improved cookstoves, biochar, etc.

6 4 12. Output 2: Pilot-tested climate-friendly biomass investment projects, for more extensive implementation. The TA will support the development of at least 10 pilot gender-responsive investment models in Cambodia, the Lao PDR, and Viet Nam. These technologies will include but will not be limited to biogas, improved cookstoves, biochar, and an inclusive supply chain of certified biofuel and organic products. Technologies that have already been successfully tested on a smaller scale will be further reviewed under the TA, and an appropriate business model and institutional arrangements will be identified and pilot-tested. As all three countries already have national biogas programs, pilot implementation arrangements for efficient biogas use by households will be set up under the TA as an ADB investment project in preparation for the ensuing investment project in the ADB project pipeline Output 3: Strengthened capacity for the efficient use of biomass. Gender-sensitive capacity-building support will be provided to participating central and local governments, service providers, communities, and women s groups, to strengthen institutional and technical capacity to expand biomass investments and to ensure sustainable uptake by rural communities after the withdrawal of external support. Distance learning methods will be implemented to reach more rural communities. 14. Output 4: Developed and disseminated knowledge products. Bioenergy production and use depend largely on available biomass resources and local socioeconomic conditions. Building on the work done by international agencies such as the Global Bioenergy Partnership, the TA will develop a common methodology for assessing the supply of biomass and prioritizing its use for energy and food security. Knowledge products 14 will be developed and links with regional centers of excellence will be created to promote knowledge transfer and cooperation between more advanced GMS countries and Cambodia, the Lao PDR, and Viet Nam. An awareness campaign using mass media will be conducted. Baseline surveys will be carried out and a monitoring system will also be established. C. Cost and Financing 15. The estimated cost of the TA is $4.6 million equivalent, of which $4.0 million equivalent will be financed with a grant from the Nordic Development Fund to be administered by ADB. 15 The governments of Cambodia, the Lao PDR, and Viet Nam will fund the remaining $600,000 equivalent in kind by providing office accommodation, transport, data, support facilities, and staff salaries. Details of the cost estimates and financing plan are in Appendix 2. D. Implementation Arrangements 16. ADB will be the executing agency. 16 Overall supervision and guidance of TA implementation will be provided by a steering committee led by the WGA coordinators of the GMS countries and key development partners. The agriculture ministries 17 of Cambodia, the Lao PDR, and Viet Nam will be the implementing agencies. To ensure synergy with other GMS 13 In Viet Nam, where ADB has an ongoing biogas project, the TA will build capacity for the use of bio-slurry. 14 This will include research and publications on new technologies promoted under the R-CDTA (improved cookstoves, biogas, and biochar systems). 15 This amount includes ADB's administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution from the Nordic Development Fund. 16 Activities will be carried out through the WGA secretariat, supervised by staff of ADB s Southeast Asia Department. 17 Ministry of Agriculture, Forestry and Fisheries (Cambodia); Ministry of Agriculture and Forestry (Lao PDR); and Ministry of Agriculture and Rural Development (Viet Nam). (Details on implementation arrangements are in the Supplementary Appendix which is available on request).

7 5 regional cooperation programs, the TA will provide administration and support services through the GMS environmental operations center in Bangkok. 18 A regional cooperation specialist to be hired by ADB for the WGA secretariat under the TA will provide regional cooperation support. As the TA will overlap with the proposed regional project preparatory TA, the two consulting teams will work closely together, and the equipment purchased and information collected for this TA will be made available to the project preparatory team. After the TA, the equipment will be turned over to the implementing agencies for continuous use in nationwide activities. 17. ADB will hire a consulting firm 19 to provide 31 person-months of international consulting services and 93 person-months of national consulting services to (i) strengthen institutional links and mechanisms for regional cooperation in bioenergy and food security; (ii) provide technical support for the design and implementation of pilot studies, the conduct of studies, and capacity building; and (iii) monitor and report on the TA activities and output. The national consultants will work with the international consultants to provide local knowledge, socioeconomic and baseline data, information on technologies appropriate for local conditions, and networking among bioenergy and food security experts, NGOs, and practitioners. Two individual consultants (an international consultant for 10 person-months and a national consultant for 30 person-months) will also be hired by ADB to ensure overall coherence with the GMS regional cooperation program. These consultants will be hired by ADB 20 according to its Guidelines on the Use of Consultants (2010, as amended from time to time). The consulting firm will be selected through quality- and cost-based selection at the standard 80:20 ratio. Disbursements under the TA will conform to ADB s Technical Disbursement Handbook (2010, as amended from time to time). All procurement and equipment purchases should follow ADB s Procurement Guidelines (2010, as amended from time to time). Advance contracting will be used to speed up the mobilization of the consultants. 18. The TA will be implemented over 42 months. Appendix 3 provides the outline terms of reference for the consultants. Implementation progress will be reported at the annual meeting of the WGA and the knowledge products from the TA will be posted on the GMS WGA website. IV. THE PRESIDENT S RECOMMENDATION 19. The President recommends that the Board approve ADB administering technical assistance not exceeding the equivalent of $4,000,000 to be financed on a grant basis by the Nordic Development Fund for the Capacity Building for the Efficient Utilization of Biomass for Bioenergy and Food Security in the Greater Mekong Subregion. 18 Established by ADB Regional Technical Assistance for the Core Environment Program and Biodiversity Conservation Corridors Initiative in the Greater Mekong Subregion. Owing to its ongoing engagement with GMS The counterparts views expressed on environment, herein are energy, those and of food the consultant security, and and its physical do not necessarily proximity to the represent GMS, the those environmental of ADB s members, operations Board center of is Directors, ideally placed Management, to support or TA staff, implementation. and may be The preliminary center will in provide nature. data and an advance payment facility for administering the TA and will receive an administrative fee to cover accounting services. 19 Depending on existing national programs and agreement with ADB, NGOs and centers of excellence (research and academic institutions with regional activities) may be subcontracted to carry out TA activities. 20 In partnership with the Nordic Development Fund and as agreed with the latter.

8 6 Appendix 1 Design Summary Impact DESIGN AND MONITORING FRAMEWORK Performance Targets and Indicators with Baselines By 2020: Data Sources and Reporting Mechanisms Assumptions and Risks Assumptions Improved use of biomass in Cambodia, the Lao PDR, and Viet Nam 5% increase in production of clean bioenergy from biomass (2011 baseline: 0.1%) 5% increase in use of by-products of bioenergy systems (bio-slurry and biochar) (2011 baseline: 0%) Project baseline and benchmark surveys Periodic surveys and annual reports of agriculture and energy ministries of Cambodia, the Lao PDR, and Viet Nam a The governments of Cambodia, the Lao PDR, and Viet Nam remain committed to regional cooperation in clean bioenergy and food security. Risk Private sector investment is constrained by overregulation. Outcome By 2014: Assumptions Efficiently operating pilot projects in biomass use At least two investment modalities for biogas and bioslurry (Cambodia and the Lao PDR); three for biochar (Cambodia, the Lao PDR, and Viet Nam); two for improved cookstoves (the Lao PDR and Viet Nam); and three for inclusive supply chain of certified biofuel and organic crops in (Cambodia, the Lao PDR, and Viet Nam) Project completion report Annual reports from agriculture ministries of Cambodia, the Lao PDR, and Viet Nam a The central and provincial governments remain committed to working with the poor in remote areas. Risk Pilot projects are not successfully implemented. Output By 2014: Assumptions 1. Enhanced regional cooperation in bioenergy development to foster and safeguard food security Mechanism tested for harmonizing at least three bioenergy standards a and certification systems, and a common method of assessing greenhouse gases Consultants reports and document records of agriculture ministries of Cambodia, the Lao PDR, and Viet Nam a Agricultural household survey reports of Cambodia, the Lao PDR, and Viet Nam The consulting team is given timely access to records, information, personnel, and relevant geographic sites. 2. Pilot-tested climate-friendly biomass investment projects for wider implementation Construction of at least 500 bio-digesters, 600 biochar kilns, 75,000 improved cookstoves; and introduction of at least 300 farmers to sustainable Benefit and impact monitoring reports Project review missions Local officials, technicians, and lead farmers are available to participate in training Development partners

9 Appendix 1 7 Design Summary 3. Enhanced capacity for efficient use of biomass Performance Targets and Indicators with Baselines certification standards Increased capacity for gender-sensitive investment among at least 500 government officials, 400 service providers, and 3,000 lead farmers (i.e., at least 55% of those to be trained will be women and at least 70% of those trained will have increased capacity) Data Sources and Reporting Mechanisms Assumptions and Risks and the private sector are keen to participate in the TA activities. Risk Cambodia, the Lao PDR, and Viet Nam cannot agree on harmonized standards and certification systems. 4. Development and dissemination of knowledge products Methodology for assessing and prioritizing the use of biomass for bioenergy and food security Compendium of good practices in biomass use Booklets on different models of improved cookstove, biochar kiln, and biodigesters Activities with Milestones 1.0 Holding of regional forums to facilitate high-level dialogue within the region on bioenergy and food-security policy issues, by Testing of mechanisms to facilitate adoption of common sets of sustainable indicators, bioenergy and trade standards, certification systems, and eco-labeling systems, by Holding of annual international workshop on household bioenergy and food security to foster exchange of information, particularly between more advanced Greater Mekong Subregion countries and Cambodia, the Lao PDR, and Viet Nam 2.0 Conduct of biomass assessment and development of criteria for the selection of pilot project areas, by early 2012 Input Total cost: $4.6 million equivalent Input by expenditure category: Consulting services: $1.435 million International and local travel: $0.33 million Reports and communications: $0.1 million 2.1 Implementation of pilot projects in lower-cost biogas technologies as Training, workshops, investment project with a component involving the use of bio-slurry for seminars, and high-value crop production, by 2012 conferences: $0.66 million 2.2 The Conduct views expressed of reviews herein to identify are those appropriate of the consultant biochar, improved and do not cookstove, necessarily represent Materials those and of ADB s members, and biofuel Board investment of Directors, modalities, Management, and implementation or staff, and may of pilot be preliminary project, by in nature. equipment: $0.1 million 2013 Surveys, pilot project, 3.0 Development of gender-sensitive training programs, including distant and knowledge product

10 8 Appendix 1 Activities with Milestones learning modalities, and use of these programs in the training of central and local government officials, farmers organizations, women s groups, and service providers (of which at least 30% are women), by Conduct of training in the implementation of the investment project, by Conduct of training in the use of biomass to enhance food security and soil carbon sequestration, by Development of methodology for assessing and prioritizing the use of biomass for energy and food security, by 2011, and dissemination of the methodology through regional forums, training, and capacity building by Establishment of baseline information and monitoring and evaluation system for pilot projects, by 2012; 4.2 Conduct of key studies, such as studies on life-cycle assessments, least-cost options, and eco-labeling, by Publication of compendium of good practices in biomass use and booklets containing information on different models of improved cookstoves, biochar kilns, and bio-digesters, by Analysis of potential climate change scenarios and their likely impact on the availability of different types of biomass, and assessment of need for the development of alternative biomass sources, by 2013 Input development: $0.975 million Miscellaneous administration and support costs: $0.20 million Remuneration and per diem of counterpart staff: $0.25 million Office space and transport costs: $0.23 million Contingencies and recurrent costs: $0.32 million Input from financiers: Nordic Development Fund: $4.0 million equivalent Governments of Cambodia, the Lao PDR, and Viet Nam: $0.60 million equivalent in kind a b Ministry of Agriculture, Forestry and Fisheries (Cambodia); Ministry of Agriculture and Forestry (Lao PDR); and Ministry of Agriculture and Rural Development (Viet Nam). Including standards set by such organizations as the Global Alliance on Clean Cookstoves and the Roundtable on Sustainable Biofuels, along with quality assurance from regional quality assurance centers to be established for biogas, improved cookstoves, bio-char, etc.

11 Appendix 2 9 COST ESTIMATES AND FINANCING PLAN ($ 000) Item A. Nordic Development Fund a 1. Consultants a. Remuneration and per diem i. International consultants (41 person-months) ii. National consultants (123 person-months) b. International and local travel c. Reports and communications 2. Equipment b 3. Training workshops, seminars, and conferences c 4. Surveys, studies, and impact monitoring d 5. Miscellaneous administration and support costs 6. Contingencies Total Cost Subtotal (A) 4,000.0 B. Governments of Cambodia, the Lao PDR, and Viet Nam e 1. Office accommodation and transport 2. Remuneration and per diem of counterpart staff 3. Others Subtotal (B) Total 4,600.0 a Administered by the Asian Development Bank. This amount also includes ADB s administration fee, audit costs, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution from the Nordic Development Fund. b Includes computers, printers, and equipment used in the production of training materials and the implementation of distance learning activities. c Includes honoraria and travel costs of resource persons (including ADB staff) and facilitators, and participants travel costs. d Includes the implementation of pilot projects and support for the establishment of regional testing facilities for cookstoves and regional quality assurance centers for bio-digesters, biochar kilns, etc. e Each government will provide in-kind contribution consisting of staff time and salaries, data and necessary information, office space, transport, and other administrative support. Source: Asian Development Bank estimates. The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

12 10 Appendix 3 OUTLINE TERMS OF REFERENCE FOR CONSULTANTS A. Consulting Firm 1. A team of international (31 person-months) and national (93 person-months) consultants will be hired on an intermittent basis to implement the technical assistance (TA), and particularly to provide technical input for all activities. For mature technologies with ongoing government programs, the firm will build on the existing implementation structure. This may involve subcontracting nongovernment organizations (NGOs) for a dry run of the activities as an investment project. For technologies that need further studies, centers of excellence may be hired by the firm to carry out the studies. Any subcontracting by the consulting firm will be in accordance with the Guidelines on the Use of Consultants (2010, as amended from time to time). 2. GMS bioenergy and biomass capacity-building specialist and project team leader (international, 19 person-months). The team leader will possess extensive knowledge and experience in implementing investment projects, and experience in capacity building in bioenergy and food security in the Greater Mekong Subregion (GMS). The team leader will be responsible for the overall implementation of the TA and will supervise the team members in working with the individual consultants under the TA and with the project preparatory team. The team leader will be expected to do the following, among others: (i) conduct a biomass assessment, develop criteria for pilot projects and the selection of beneficiaries (through a participatory process), and implement pilot projects with the ensuing loan project in mind; (ii) develop a mechanism for regional cooperation through collaboration with relevant institutions in capacity building, technology transfer, and cooperation among developing countries; (iii) in cooperation with the legal, standards, and certification specialist, implement regional standards and certification and eco-labeling systems for bioenergy and eco-products for cross-border public private partnerships (PPPs) in the GMS; (iv) organize knowledge events to extract knowledge for the design of pilot projects and capacity-building activities in bioenergy and food security in the GMS; (v) assess the potential of carbon financing, and build capacity and implement the program of activities across the GMS; (vi) design implementation arrangements for the expansion of bioenergy and food security projects in the GMS; (vii) organize training and capacity-building activities, including training in procurement, bidding procedures, and reporting systems in investment projects; (viii) implement a baseline survey and a monitoring and evaluation framework for all TA activities, building on the work of the Global Bioenergy Partnership and others; (ix) assess the capacity of NGOs and centers of excellence to implement pilot projects and studies subcontracted to them, including their capacity to extract lessons as knowledge products; (x) conduct necessary studies for the appropriate design of the pilot projects, including analyses of potential climate change scenarios and their likely impact on the availability of different type of biomass and an assessment of the need for the development of alternative biomass sources; (xi) engage with the project steering committee, the coordinators from the GMS working group on agriculture (WGA), and government agencies to report implementation progress; (xii) establish, supervise, and monitor project activities and information dissemination to governments through such means as study tours to GMS countries; and (xiii) prepare and submit reports. 3. Legal, standards, and certification specialist (international, 4 person-months). The specialist will (i) analyze the balance of relationships, rights, responsibilities, and revenue among key stakeholders to identify gaps and appropriate interventions; (ii) assess the legal, regulatory, and institutional framework for bioenergy in each of the GMS countries, including the

13 Appendix 3 11 provincial and local levels; (iii) review international standards and certification procedures for biomass use for bioenergy and food security, translate available materials, and develop and recommend (draft) legislation for getting subregional standards, certification, and accreditation systems for biofuel, cookstoves, and other appropriate rural renewable technologies adopted through legislation in the GMS countries; and (iv) support the GMS countries in establishing and implementing mechanisms to harmonize subregional legal and regulatory frameworks for bioenergy and food security, including standards, certification, and labeling systems. 4. Improved cookstove specialist (international, 1 person-month). The specialist will (i) review the potential and availability of improved cookstoves and identify models appropriate for Cambodia, the Lao People s Democratic Republic (Lao PDR), and Viet Nam, and conduct a comparative analysis of technical efficiencies, financing, delivery mechanisms, and program modalities; (ii) implement a beneficiary needs assessment survey of the fuel needs of the intended users; (iii) evaluate the risks and opportunities involved in the deployment of these technologies, and review plans to expand the manufacturing and distribution network; (iv) explore the cultural and social acceptability of various stove models; (v) develop a national and regional framework for the large-scale distribution of cookstoves, including aspects related to institutional, financing, and awareness-building needs; (vi) conduct gender-sensitive capacity-building activities; and (vii) design specifications for an improved cookstove pilot project where deemed appropriate. 5. Biomass and biochar technology specialist (international, 2 person-months). The specialist will (i) review biomass availability, including seasonality, pricing, quality, and competing demand (if any) and the biomass and charcoal briquetting sector, and logistics issues surrounding feedstock supply for small-sized projects; (ii) design and conduct a beneficiary needs assessment of traditional biomass, feedstock, and charcoal briquetting supply agents and benefit streams, and conduct a comparative analysis of various biomass conversion technologies, including financing models, delivery mechanisms, and program modalities (e.g., compost making, biochar); (iii) provide benchmarks for technical performance and carbon credit potentials; (iv) develop a framework for the application of these technologies, including aspects related to institutional needs, financing needs, and information, awareness, and capacity-building needs, and conduct gender-sensitive capacity-building activities; (v) conduct gender-sensitive capacity-building activities and interventions; and (vi) design a biomass conversion pilot project for composting, biochar, etc., where deemed appropriate. 6. Private sector development specialist (international, 2 person-months). The specialist will (i) review and formulate models and structures for private sector participation, including possible PPPs; (ii) consult with bioenergy and eco-agri companies in the private sector to identify best-practice projects in private sector participation and PPPs, and to get their views on how successful projects might be structured (e.g., for biofuels, contract farming); (iii) for the biofuel initiative, review nonfood feedstock applicability under various factors in the GMS, assess public and private sector initiatives in bioenergy or energy crop development including integrated eco-farming systems for food security, conduct a detailed technical and cost analysis of options for the processing (crushing, expelling, purifying, etc.) of the oil and the use of oil cake for compost and soil amendments, conduct gender-sensitive capacity-building activities and interventions, and design and implement a biofuel pilot project; (iv) for cookstove initiative, examine The views output-based expressed herein approaches are those of to the delivering consultant services; and do not 1 (v) necessarily recommend represent an inclusive those of supply ADB s chain members, for Board eco-products of Directors, and Management, organic products or staff, to and (a) may collect be preliminary a critical in nature. mass of products, and 1 Explicit performance-based subsidies to deliver services for which the service provider is to be paid only when measurable results are achieved.

14 12 Appendix 3 (b) increase value for producers; and (vi) recommend a shortlist of project models and structures for private sector participation for possible inclusion in the investment project. 7. Capacity-building and distance learning specialist (international, 3 person-months). The specialist will (i) perform a variety of professional duties required to design and implement capacity-building programs and awareness campaigns on the benefits of biomass technologies to climate change mitigation, food security, and health, using web-based, DVD-based, 2 media-based, and written materials; (ii) implement distance learning courses using a blended approach as appropriate; (iii) work closely with the social development specialist to prepare gender-sensitive interventions for both technical and social learning; and (iv) organize a project implementation training program for the pilot run under the TA of the ensuing ADB investment project. 8. Project implementation specialists and lead country specialists (national, 3 persons, 18 person-months each, 54 person-months total). The lead country specialists will have extensive knowledge and experience in implementing rural development investment projects, knowledge of financial analysis, and in-depth technical knowledge related to the TA activities. The specialists will work with the governments to (i) conduct biomass assessment and critically review ongoing and proposed programs for biogas, biofuel, biochar, biomass, and improved cookstoves in the GMS, and identify the scope for complementarities with Cambodia, the Lao PDR, and Viet Nam; (ii) design and conduct a beneficiary needs assessment of proposed users fuel needs and traditional biomass, feedstock, and charcoal briquetting supply agents and benefit streams; (iii) assess the costs and conversion efficiency of various technologies, develop a framework for application including aspects related to institutional needs, financing needs, and information, awareness, and capacity-building needs, and assist in designing and conducting baseline surveys and in implementing, monitoring, and evaluating pilot projects and capacity-building and awareness campaigns; (iv) engage centers of excellence in conducting studies and monitor their activities; (v) work closely with the social development specialist to prepare gender-sensitive interventions; and (vi) perform other tasks assigned by the TA team leader. 9. Legal, standards, and certification specialists (national, 3 persons, 4 person-months each, 12 person-months total). The specialists will do the following: (i) before the arrival of the international legal, standards, and certification specialist, review central, provincial, and local government laws, decrees, directives, regulations, and other legal documents and legislation, as these relate to bioenergy and cross-border trade of eco-products, to identify gaps and necessary interventions under the TA; and (ii) on the basis of the gaps identified in each country, work with the international specialists to develop and implement a legal and regulatory framework for bioenergy regulations and for sustainable certification and accreditation systems, including standards, certification, and labeling systems. 10. Private sector development specialists (national, 3 persons, 3 person-months each, 9 person-months total). The specialists will (i) review and formulate various models and structures for private sector participation, including possible PPPs, taking into account regional and global lessons; (ii) meet with private sector firms to determine potential interest in private sector participation andor PPPs and to get their views on how successful projects might be structured; (iii) for the cookstove initiative, examine the applicability of output-based approaches; 2 Including the use of community-developed videos to promote peer-to-peer learning. One example is F. Baumhardt et al. Farmers Become Filmmakers: Climate Change Adaptation in Malawi.

15 Appendix 3 13 and (iv) recommend a shortlist of project models and structures for possible inclusion in the investment project. 11. Capacity-building and distance learning specialists (national, 3 persons, 3 person-months each, 9 person-months total). The specialists will prepare gender-sensitive interventions and for both technical and social learning. They will (i) analyze capacity-building needs and identify areas where distance learning might be appropriate; (ii) design and conduct capacity-building activities and public awareness campaigns, including distance learning courses using a blended approach; (iii) conduct a capacity-building program in project implementation for the pilot run under the TA of the ensuing ADB investment project; and (iv) monitor and evaluate capacity-building activities and prepare evaluation reports. 12. Social development specialists (national, 3 persons, 3 person-months each, 9 person-months total). The specialists will (i) review information on relevant gender aspects and work with other consultants to further strengthen the gender perspective for technologies supported under the TA; (ii) assess current available manuals for gender- and social-related training, and work closely with the knowledge management specialist to prepare a compendium of good practices; (iii) produce a summary poverty reduction and social strategy that includes key socioeconomic issues relevant to the project, the beneficiaries profiles, and vulnerable groups, as well as a consultation plan; and (iv) prepare a gender action plan based on ADB s Policy on Gender and Development (1998) including (a) an assessment of the gender impact of the adoption of modern biomass technologies, (b) an assessment of the potential to empower beneficiaries and stakeholders, and (c) measures, performance targets, and indicators for monitoring resource allocation and implementation arrangements. B. Individual Consultants 13. Regional cooperation and trade facilitation specialist (international, 10 person-months). The specialist will work closely with the project team to strengthen institutional links and mechanisms for regional cooperation through the GMS WGA secretariat and will report directly to ADB. The specialist will have a strong background in regional trade integration and will be expected to perform the following tasks: (i) convene the project steering committee and engage its technical and advisory support for the TA; (ii) develop and implement a harmonized framework for cross-border ecotrade facilitation programs based on the Core Agriculture Support Program (phase II, ), building on the existing GMS agriculture network information system; (iii) engage the GMS business forum in the mainstreaming of climate-friendly bioenergy and agriculture practices to improve regional food security; (iv) facilitate knowledge pooling and exchange, and engage the centers of excellence in the generation of new knowledge on regional cooperation, including studies on a life-cycle assessment of the carbon dioxide, energy, and water footprint, as well as on eco-labeling, paper-free trade, and soil carbon monitoring methodology; (v) on the basis of the studies, develop policy briefs and project proposals, and identify potential development partners to support the activities; (vi) work with the team leader to develop and solicit expressions of interest for the subcontracting of the implementation of pilot projects and studies to NGOs and centers of excellence; and (vii) establish a results-based monitoring and evaluation system for the regional cooperation activities of the WGA. The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

16 14 Appendix Regional knowledge management specialist 3 (national, 30 person-months). The specialist will report directly to ADB and will work with all the consultants under the TA. The specialist will be responsible for coordinating knowledge products from the TA for use in broader regional cooperation under the GMS WGA secretariat to ensure synergy with other activities under the Core Agriculture Support Program (phase II, ). The specialist will (i) develop and implement knowledge management and communication dissemination plans to enhance cooperation among GMS countries and development partners; (ii) assess knowledge needs at the regional level and knowledge management tools, and establish procedures for information and knowledge exchange, building on the activities of the WGA secretariat; (iii) produce knowledge products such as policy briefs and communication materials, provide input for distance learning materials, and use mass communication channels to communicate TA activities; (iv) develop content for the WGA website, workshops, and training programs to disseminate the key results of the TA effectively; (v) develop expressions of interest and terms of reference for media agencies and supervise the key deliverables of the regional cooperation program on bioenergy and climate change; (vi) coordinate the development of an effective outreach strategy and communication materials; (vii) facilitate knowledge sharing with key stakeholders; (viii) implement a public awareness campaign through the dissemination of information and the organization of workshops, including the preparation of briefing materials and press releases in accordance with the WGA s mandate; (ix) assist the team leader and the regional cooperation and knowledge management specialist in organizing a regional conference to share lessons from past and ongoing projects, and extract knowledge to be used in the design of pilot projects and capacity-building activities; and (x) coordinate the maintenance of the information database and the photo and video libraries, and support links with other websites such as those of national governments. 3 During TA implementation, the consultant will establish a monitoring and evaluation system for the technical assistance, which will include post-training evaluation surveys to be conducted to assess the improved capacity of those trained.