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United Nations Development Programme Country: Myanmar PROJECT DOCUMENT Project title: Myanmar Rural Renewable Energy Development (RURED) Project Country: Implementing Partner: Management Arrangement: Myanmar Department of Rural Development NIM (National Implementation Modality) (DRD), Ministry of Agriculture, Livestock and Irrigation (MoALI) UNDAF/Country Programme 2018-22 Outcome #2: By 2022, Myanmar becomes more resilient to climate and disaster risk with efficient environmental governance and sustainable use of natural resources UNDP Strategic Plan 2018-21 Output 1.5.1 Solutions adopted to achieve universal access to clean, affordable and sustainable energy UNDP Social and Environmental Screening Category: UNDP Gender Marker: 2 High Atlas Project ID (formerly Award ID): 00104187 Atlas Output ID (formerly Project ID): 00105877 UNDP-GEF PIMS ID number: 5564 GEF ID number: 9890 Planned start date: July 2020 Planned end date: June 2025 PAC meeting date: 25 April 2019 Brief project description: The Myanmar Rural Renewable Energy Development (RURED) Project seeks to address the twin challenges of exceptionally low electrification rate in Myanmar, as well as the unsustainably high dependence on high-emission fossil fuels in the country’s energy mix, by means of supporting improvements in the country’s rural energy infrastructure. RURED contributes to the national goals of achieving universal energy access, by supporting the off-grid electrification component of the National Electrification Plan. In doing so, RURED seeks to facilitate expansion of rural renewable energy services and productive applications in Myanmar to avoid greenhouse gas emissions. The investments in off-grid renewable energy systems during project implementation (2019-2024) will lead to cumulative (direct) GHG emissions reduction of 246 kilotons of CO2 (over the investment’s lifetime). De-risking activities and capacity strengthening will catalyse replication in coming years. The Projects seeks to achieve this through the following Outcomes: 1) Effective implementation of enabling policies and regulations at the national and local levels for enhanced RE utilisation for rural productive uses; 2) Awareness and knowledge enhanced of government entities, market enablers and beneficiaries; 3a) Increased investments in rural renewable energy to meet household demand, social services, and productive uses of energy; and 3b) Supporting financial programme formulation. During implementation, in addition to GEF funding of USD 4,934,228, UNDP will contribute with USD 200,000, and the project will be further supported by in-kind and cash contributions to support parallel activities from government partners and other actors (MoALI/DRD, SPM, GIZ) to an amount of USD 37,750,000. Thus, the total resources available for project implementation are USD 42,884,228. 1 | P a g e FINANCING PLAN GEF Trust Fund USD 4,934,228 (1) Total Budget administered by UNDP USD 4,934,228 PARALLEL CO-FINANCING (all other co-financing that is not cash co-financing administered by UNDP) Department of Rural Development (DRD), Ministry of USD 31,250,000 Agriculture, Livestock and Irrigation (MoALI) GIZ (Germany) USD 1,500,000 PACT-Smart Power Myanmar USD 5,000,000 UNDP USD 200,000 (2) Total co-financing USD 37,950,000 (3) Grand-Total Project Financing (1)+(2) USD 42,884,228 SIGNATURES Signature: print name below Agreed by: Date/Month/Year: Signature: print name below Agreed by: Date/Month/Year: Department of Rural Development (DRD), Ministry of Agriculture, Livestock and Irrigation (MoALI) Signature: print name below Agreed by: Date/Month/Year: UNDP Resident Representative 2 | P a g e 1. TABLE OF CONTENTS 1. TABLE OF CONTENTS ............................................................................................................................................ 3 LIST OF EXHIBITS ................................................................................................................................................................ 5 LIST OF ACRONYMS AND ABBREVIATIONS......................................................................................................................... 6 2. DEVELOPMENT CHALLENGE ................................................................................................................................. 9 2.1 INTRODUCTION ........................................................................................................................................................ 9 2.2 PROBLEM ANALYSIS AND THE PROJECT’S OBJECTIVE ....................................................................................................... 15 3. STRATEGY .......................................................................................................................................................... 22 4. RESULTS AND PARTNERSHIPS ............................................................................................................................ 29 4.1 EXPECTED RESULTS ................................................................................................................................................. 29 4.2 PARTNERSHIPS ....................................................................................................................................................... 42 4.3 RISKS AND RISKS AND MITIGATION ............................................................................................................................. 43 4.4 STAKEHOLDER ENGAGEMENT .................................................................................................................................... 46 4.5 SOUTH-SOUTH AND TRIANGULAR COOPERATION (SSTRC) ............................................................................................. 49 4.6 MAINSTREAMING GENDER ....................................................................................................................................... 49 4.7 SUSTAINABILITY AND SCALING-UP .............................................................................................................................. 50 5. PROJECT MANAGEMENT .................................................................................................................................... 52 5.1 COST EFFICIENCY AND EFFECTIVENESS ......................................................................................................................... 52 5.2 PROJECT MANAGEMENT .......................................................................................................................................... 53 6. PROJECT RESULTS FRAMEWORK ........................................................................................................................ 54 7. MONITORING AND EVALUATION (M&E) PLAN ................................................................................................... 57 8. GOVERNANCE AND MANAGEMENT ARRANGEMENTS ....................................................................................... 61 8.1 ROLES AND RESPONSIBILITIES OF THE PROJECT’S GOVERNANCE MECHANISM ...................................................................... 61 8.2 PROJECT STAFFING AND IMPLEMENTATION .................................................................................................................. 64 9. FINANCIAL PLANNING AND MANAGEMENT ....................................................................................................... 66 10. TOTAL BUDGET AND WORK PLAN ...................................................................................................................... 69 11. LEGAL CONTEXT ................................................................................................................................................ 75 12. RISK MANAGEMENT STANDARD CLAUSES ......................................................................................................... 75 ANNEXES 79 ANNEX A. MULTI-YEAR WORK PLAN ........................................................................................................................... 80 ANNEX B. OVERVIEW OF TECHNICAL CONSULTANCIES AND SUBCONTRACTS ............................................................ 82 ANNEX C. TERMS OF REFERENCE FOR MAIN PROJECT STAFF ...................................................................................... 85 ANNEX D. GENDER ANALYSIS AND ACTION PLAN ....................................................................................................... 90 D.1 GENDER MAINSTREAMING ANALYSIS .......................................................................................................................... 90 D.2 GENDER ACTION PLAN ............................................................................................................................................. 92 ANNEX E. BASELINE RURAL AND RENEWABLE ENERGY SITUATION IN MYANMAR ..................................................... 96 E.1 ELECTRICITY ACCESS AND DEVELOPMENT CHALLENGE ..................................................................................................... 96 E.2 RENEWABLE ENERGY ............................................................................................................................................... 98 E.3 ELECTRIFICATION .................................................................................................................................................... 99 E.4 STATUS AND PLANS IN OFF-GRID ELECTRIFICATION......................................................................................................