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Terminal Evaluation – Ukraine Municipal Bioenergy

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Terminal Evaluation – Ukraine Municipal Bioenergy Terminal Evaluation – Ukraine Municipal Bioenergy Development and Commercialization of Bioenergy Technologies in the Municipal Sector in Ukraine a project of: Government of Ukraine United Nations Development Programme Global Environment Facility December 12, 2019 Prepared by: Eugenia Katsigris, Managing Director, Parnon Group Igor Komendo, Director, GoLOCAL Ukraine Municipal Bioenergy Project Terminal Evaluation Basic Project Information Official Project Title: Development and Commercialization of Bioenergy Technologies in the Municipal Sector in Ukraine Country: Ukraine Region: Europe & CIS UNDP PIMS# 2921 GEF Project ID# 4377 GEF Operational Focal Area: CCM (Climate Change Mitigation) GEF Operational Focal Area Objective: Objective 3 - Promote Investment in Renewable Energy Technologies Implementing Modality: Direct Implementation by UNDP Key Government Partners: State Agency for Energy Efficiency, Ministry of Regional Development; Ministry of Ecology Terminal Evaluation Team Members Eugenia Katsigris, Managing Director of Parnon Group: International Consultant Igor Komendo, Director of GoLOCAL: National Consultant Terminal Evaluation Timeline Mission: September 9 – 20, 2019 Main Work: August 26, 2019 – November 30, 2019 (from start of document review to full draft report) Reviews of Draft Report and Finalization: November 24, 2019 – December 12, 2019 Report date: Dec. 12, 2019 Acknowledgements The terminal evaluation (TE) team is highly appreciative of the contributions of the many stakeholders who supported the TE through generous contributions of their time, effort, and insights during, before, and after the mission, which took place September 9-20, 2019, in Kyiv, Uman, Palanka, Zhytomyr, and Odessa and involved meetings with various stakeholders, such as national government, municipal, and UNDP officials and experts, consultants, and businesspersons. First and foremost, the current Ukraine Municipal Bioenergy project team and UNDP Ukraine Country Office strategized, arranged, and coordinated our mission and have responded promptly and expertly to our many requests for documents and other information. The UNDP Regional Technical Advisor (RTA) responsible for the project provided excellent guidance and invaluable institutional memory on the complete history of the project. Previous project team members and persons previously responsible for the project at the UNDP CO took time out from their current responsibilities to brief us on earlier phases. Experts and consultants to the project, past and present, shared with us their knowledge and explained in detail how their work contributed to project aims. This includes several members of the current “bioenergy roster,” who are serving municipalities by providing feasibility studies, guidance on design work, and business advice on how to make municipal biomass projects a reality. It also includes other experts and consultants covering the realms of policy, institutional structure, financing mechanisms, and bioenergy technologies. National- level officials helped us understand the benefits of the project to the nation and its impact on policies and institutions. Municipal governments, a government of federation of villages, and other stakeholders in municipalities (e.g. beneficiaries of biomass boiler installations and investors in the same) explained their realized and pipeline biomass boiler projects, including the benefits and challenges, and discussed their future plans for bioenergy. Banks, an equipment supplier, an association, and other development partners active in Ukraine provided excellent input, each from their angle of expertise, to help us understand the baseline situation, project results, their own related initiatives, and ongoing needs. Specific organizations and individuals are noted with more detail in the realized mission and consultation schedule provided in Annex 1. We wish to thank all of those listed as well as some who participated in meetings or site visits whose names are not included. i Ukraine Municipal Bioenergy Project Terminal Evaluation Contents Project Information Table ................................................................................................... iii Acronyms, Abbreviations, and Other Definitions .............................................................. iv Executive Summary .......................................................................................................... viii 1. Background, History, Approach, and Focus ................................................................... 1 1.1 Project Basics and Design ....................................................................................................................... 1 1.2 Terminal Evaluation: Purpose, Methodology, Challenges and Limitations, and Content of Report ...... 2 1.3 Project Timeline and Issues during Early History .................................................................................. 6 1.4 Project Institutional and Personnel History and Related Issues .............................................................. 7 1.5 Situation in Ukraine during Project, Bioenergy Potential, and Fit of Project ....................................... 10 1.6 Stakeholders and Pilot Cities ................................................................................................................ 13 2. Project Overall: Relevance, Results/ Impacts, and Challenges/ Concerns ................... 14 2.1 Relevance .............................................................................................................................................. 14 2.2 Most Notable Results and Impacts........................................................................................................ 15 2.3 Most Notable Challenges, Concerns, and Shortcomings ...................................................................... 21 2.4 Relevance and Impacts vis-à-vis UNDP Priorities and Country Programming .................................... 23 3. Component 3 Results/ Effectiveness Part 1: Investment/Installation - Bioenergy Feasibility Studies, Design, and Installation ..................................................................... 24 4. Component 3 Results/ Effectiveness Part 2: Investment/Installation - Financial Support Mechanism ......................................................................................................................... 32 5. Component 3 Results/ Effectiveness Part 3: Investment/Installation - Early Straw Pellet Boiler Demonstrations and Other Phase One Component 3 Activities............................. 36 6. Component 1 Results/ Effectiveness: Policy ................................................................. 39 7. Component 2 Results/ Effectiveness: Institutional - Biomass Support Unit ................ 44 8. Component 4 Results/ Effectiveness: Awareness ......................................................... 47 9. Cross-cutting Aspects of Results: GHG ERs, Sustainability of Results, Stakeholder Engagement, and Gender ................................................................................................... 49 10. Assessment of Design, Implementation, and M&E .................................................... 52 11. Cost Effectiveness (“Efficiency”): Expenditure Analysis and Co-Financing ............. 56 12. Conclusions, Lessons, Recommendations ................................................................... 66 12.1 Conclusions ......................................................................................................................................... 66 12. 2 Lessons and Recommendations ......................................................................................................... 68 Annex 1. Evaluation Mission and Other Consultations – Realized Schedule .................. 76 Annex 2. Summary of Field Visits .................................................................................... 80 Annex 3. Documents Reviewed ........................................................................................ 86 Annex 4: Ratings and Explanation .................................................................................... 89 Annex 5. Evaluation Matrix .............................................................................................. 92 Annex 6. Indicator Assessment ......................................................................................... 95 Annex 7. UNEG Code of Conduct Agreement Form ..................................................... 100 Annex 8. Terminal Evaluation TOR ............................................................................... 101 Annex 9. Final GEF Tracking Tool (provided as a separate document) ii Ukraine Municipal Bioenergy Project Terminal Evaluation Project Information Table Project Title Development and Commercialization of Bioenergy Technologies in the Municipal Sector in Ukraine (Ukraine Municipal Bioenergy Project) UNDP Project ID (PIMS#) 2921 PIF Approval Date: June 7, 2012 GEF Project ID (PMIS#) 4377 CEO Endorsement February 27, 2014 Date: Atlas Business Unit Award #: 00074537 ProDoc Signature June 24, 2014 Project ID: 00086891 Date (date project began): Country: Ukraine Date project manager (start and end dates) hired: Sept. 22, 2014 – Feb. 19, 2018 (1st PM, V. Lyashchenko) Aug. 31, 2018 - July 14, 2019 (2nd PM, I. Groza) Region: Europe & CIS Inception Workshop November 19, 2014 date: Focal Area: CCM (climate Midterm Review March 29, 2017 change mitigation) completion date: GEF Focal
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