Financing Plan (In Us$)

PROJECT IDENTIFICATION FORM (PIF) PROJECT TYPE: FULL-SIZED PROJECT TYPE OF TRUST FUND: GEF TRUST FUND For more information about GEF, visit TheGEF.org PART I: PROJECT INFORMATION Project Title: Delivering the transition to energy efficient lighting Country(ies): Bolivia GEF Project ID:1 GEF Agency(ies): UNEP (select) (select) GEF Agency Project ID: 00944 Other Executing Ministry of Hydrocarbons and Submission Date: 02/12/2013 Partner(s): Energy and Ministry of Environment and Water GEF Focal Area (s): Climate Change Project Duration (Months) 36 Name of parent program Agency Fee ($): 290,639 (if applicable):  For SFM/REDD+  For SGP

2 A. INDICATIVE FOCAL AREA STRATEGY FRAMEWORK : Trust Fund Indicative Grant Indicative Co- Focal Area Objectives Amo financing unt ($) ($) CCM-1 (select) GEFTF 1,856,080 7,445,000 (select) CHEM-3 GEFTF 45,662 0 CCM-2 (select) GEFTF 1,157,619 4,630,000 Total Project Cost 3,059,361 12,075,000

The en.lighten initiative’s Suggested Integrated Policy Approach

Task forces of international experts convened by en.lighten in 2010 to 2012 concluded that using an integrated policy approach would ensure that all pertinent policy aspects related to energy efficient lighting would be considered when countries develop their phase-out strategies. The outcome of this public-private consultation process includes four elements: - Minimum energy performance standards (MEPS) - Supporting policies and other mechanisms (fiscal policies, labelling and consumer information) to ensure that MEPS can be implemented successfully and permanently - Monitoring, verification and enforcement (MVE) - Environmentally sound management of lighting products, throughout their life cycles Countries determine how these elements fit in their national context. An integrated approach involves all relevant authorities and stakeholders, including Ministries of Energy and Environment, energy efficiency agencies, private sector organizations (lighting supply chain) and civil society groups. Establishing an integrated National Efficient Lighting Strategy ensures long-term, substantial energy and financial savings and environmental benefits such as reductions of GHG emissions.

Challenges facing Bolivia include: insufficient electrical supply to meet peak demand and increasing electricity consumption in the lighting sector; initial higher costs and lack of experience with efficient lighting that can effectively replace inefficient, conventional technologies; lack of infrastructure to collect and recycle spent products, especially mercury-added lamps; and, insufficient capacity to monitor, verify and enforce the market transition to high efficiency, high quality lighting products that can deliver environmental and financial benefits in a long-term, sustainable manner.

1 Project ID number will be assigned by GEFSEC. 2 Refer to the reference attached on the Focal Area Results Framework when completing Table A.

1 GEF-5 PIF Template-December 27, 2012 Policy objectives include: Establish a regulatory framework to optimize energy supply and demand; create mechanisms to promote savings and energy efficiency; and, set up a certification system that addresses energy efficiency measures. Specific strategies that Bolivia is pursuing are: creating a National Energy Efficiency Agency and the Bolivian Fund for Energy Efficiency; articulating the National Energy Efficiency Plan 2013-2030; drafting a law specifically to promote energy efficiency; planning programs for energy demand and supply; setting a baseline using energy efficiency indicators, creating energy labels for appliances, and, conducting energy audits.

B. INDICATIVE PROJECT FRAMEWORK Project Objective: Promote the rapid utilization of high energy efficient lighting technologies through the transformation of efficient lighting products markets, thereby reducing electrical demand and consumption and the related greenhouse gas (GHG) emissions. Project Grant Expected Expected Outputs Trust Indicative Indicative Component Type Outcomes Fund Grant Cofinancing Amount ($) ($)

1. National TA 1.1 National 1.1.1 Comprehensive policies GEFTF 250,000 1,000,000 policy and Efficient implemented to ensure a regulation Lighting successful transition to efficient development Strategy lighting market including to promote employing financial mechanisms to support the rapid integrated Bolivia in its efforts, and, transition to policy standards and labeling activities efficient approach to harmonized regionally to lighting phasing out achieve maximum lighting inefficient market transformation incan-descent 1.1.2 National legislation to lamps establish and enforce minimum energy performance standards (MEPS) for lamps 1.1.3. Monitoring, verification and enforcement (MVE) frameworks created to ensure compliance 1.1.4 Enabling regulatory environment and legal frameworks to ensure environmentally sound life- cycle management of lamps 1.1.5 Public communications and awareness raising activities designed and implemented to increase public acceptance of high efficiency products, with an understanding of economic and environmental benefits 2. Creation of TA 2.1 Imple- 2.1.1 Implementation of legal GEFTF 850,000 3,425,000 monitoring, mentation of a and administrative processes to verification well- improve compliance with and functioning national or regional standards enforcement MVE sys-tem 2.1.2 Technical training and (MVE) inclu-ding the support to government

2 GEF-5 PIF Template-December 27, 2012 capacities to creation of authorities and customs ensure testing ca- administrations effective pacities in 2.1.3 Creation or strengthening transition to Bolivia or in of national and regional efficient the region laboratories to verify lighting compliance with standards 3. Ensuring TA 3.1 Imple- 3.1.1 Development of a national GEFTF 45,662 50,000 environ- mentation of a framework and strategy for mentally natio-nal environmentally sound sound system to management of lighting management collect, products for a recycle or 3.1.2 Provide training to GEFTF 1,000,000 4,000,000 sustainable responsibly governmental authorities, transition to dispose of retailers and collection services efficient spent ligh-ting 3.1.3 Awareness raising and lighting pro-ducts that communication campaigns to may contain promote collection and valuable recycling of spent lamps and/or 3.1.4 Implementation of waste hazardous management systems for spent materials lamps, including facilities and international coordination for the environmentally sound export/import of lamp waste 4. Lighting TA 4.1 Agree to 4.1.1 Enhance National EfficientGEFTF 450,000 3,000,000 innovation: increase use Lighting Strategy with more accelerating of solid state stringent MEPS, taking into the use of lighting and account advanced lighting solid state controls in the technologies and systems. lighting domestic, 4.1.2 Supporting policies to (including commercial/in increase user acceptance and light emitting dustrial and demand for high efficiency diodes outdoor products and systems. (LEDs) and lighting controls applications 4.1.3. MVE scheme to ensure high quality products that will deliver the expected energy and GHG emission benefits.

TA 4.2 Show 4.2.1 Support the design and GEFTF 60,000 0 sustainable evaluation of a demonstration benefits of programme for locally- advanced appropriate LEDs and lighting lighting controls for Bolivia’s selected systems. stakeholder groups (i.e. low income residents). INV 4.2.2 Procure and install LED GEFTF 253,699 0 and controls systems demonstrations. Sub-Total 2,909,361 11,475,000

3 GEF-5 PIF Template-December 27, 2012 Project Management Cost3 150,000 600,000 Total Project Costs 3,059,361 12,075,000

C. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE AND BY NAME IF AVAILABLE, ($) Sources of Co-financing Name of Co-financier Type of Co-financing Amount ($) Government Ministry of Hydrocarbons and Energy In-kind 3,975,000 Government Ministry of Environment and Water In-kind 2,900,000 Government Municipality of La Paz In-kind 2,900,000 Private sector4 Philips In-kind 1,000,000

Private sector Osram In-kind 1,000,000

Private sector National Lighting Test Center, China In-kind 200,000 International Agency UNEP In-kind 100,000 Total Co-financing 12,075,000

D. INDICATIVE TRUST FUND RESOURCES ($) REQUESTED BY AGENCY, FOCAL AREA AND COUNTRY1 Grant GEF Type of Country Agency Fee Total ($) Focal Area Amount Agency Trust Fund Name/Global ($) (b)2 c=a+b ($) (a) UNEP GEFTF Climate Change Bolivia 3,013,699 286,301 3,300,000 UNEP GEFTF CHEM-3 Bolivia 45,662 4,338 50,000 Total Grant Resources 3,059,361 290,639 3,350,000 1 In case of a single focal area, single country, single GEF Agency project, and single trust fund project, no need to provide information for

this table. PMC amount from Table B should be included proportionately to the focal area amount in this table. 2 Indicate fees related to this project.

E. PROJECT PREPARATION GRANT (PPG)5 Please check on the appropriate box for PPG as needed for the project according to the GEF Project Grant: Amount Agency Fee Requested ($) for PPG ($) 6  No PPG required.  (up to) $50k for projects up to & including $1 million ______ (up to)$100k for projects up to & including $3 million ______ (up to)$150k for projects up to & including $6 million __22,830______2,170_____  (up to)$200k for projects up to & including $10 million ______ (up to)$300k for projects above $10 million ______

PPG AMOUNT REQUESTED BY AGENCY(IES), FOCAL AREA(S) AND COUNTRY(IES) FOR MFA AND/OR MTF PROJECT ONLY Trust Fund GEF Agency Focal Area Country Name/ (in $)

3 To be calculated as percent of subtotal. 4 Private sector partners’ in-kind co-financing amounts estimated based on the number of full time equivalent (FTE) employees dedicated to the project. At a monthly consultant cost of 30,000 USD for Osram and Philips and 12 000 USD for NLTC the total anticipated is 115 FTE months for the project (Osram 25 months, Philips 25 months, and NLTC 15 months). 5 On an exceptional basis, PPG amount may differ upon detailed discussion and justification with the GEFSEC. 6 PPG fee percentage follows the percentage of the GEF Project Grant amount requested.

4 GEF-5 PIF Template-December 27, 2012 Global Agency Total PPG (a) Fee (b) c = a + b GEF TF UNEP Climate Change 22,830 2,170 25,000 Total PPG Amount 22,830 2,170 25,000 MFA: Multi-focal area projects; MTF: Multi-Trust Fund projects.

PART II: PROJECT JUSTIFICATION 7

A. PROJECT OVERVIEW A.1. Project Description. Briefly describe the project, including ; 1) the global environmental problems, root causes and barriers that need to be addressed; 2) the baseline scenario and any associated baseline projects, 3) the proposed alternative scenario, with a brief description of expected outcomes and components of the project, 4) incremental cost reasoning and expected contributions from the baseline , the GEFTF, LDCF/SCCF and co-financing; 5) global environmental benefits (GEFTF, NPIF) and adaptation benefits (LDCF/SCCF); 6) innovativeness, sustainability and potential for scaling up.

I. Summary of the national energy situation Bolivia has large fossil fuel reserves on which its economy depends for more than 10% of GDP, 40% of government revenues and 45% of export earnings. Bolivia's electricity production is hydropower (30%) and conventional thermal (70%), primarily from burning of natural gas. The electrification rate is 77%, with great disparities between urban and rural populations (90% of urban population with access, only 51% rural population with access). Bolivia will struggle to meet projected demand for electricity with its current generation capacity. Bolivia would benefit from investment in energy efficiency due to its economic dependence on fossil fuels and to meet the challenge of growing energy demand. Bolivia began incorporating energy efficiency in its in 2008 in its National Energy Efficiency Program (PNEE), an institutional framework for future energy efficiency projects. II. Summary of the national efficient lighting situation Bolivia ran public information campaigns to promote efficient lighting and to install 8 million CFLs (2008-2009). Bolivia seeks to phase out gradually the import of incandescent lamps through customs policies using increased taxes on imports of incandescent lamps and lower taxes on efficient lamps. Bolivia plans to establish quality standards and technical regulations through a certification and verification institution. However, there is no indication of any efficient lighting legislation established yet. In 2012, just over 9 million saving bulbs were replaced. On June 15, the 2011-2012 season of the lamp replacement program was closed. This program saved about 80 MW of electricity. The bulbs required an investment of USD 10.7 million of which 9.5 were used for acquisition of the bulbs and the rest for distribution. Bolivia will define the concrete levels of Minimum Energy Performance Standards (MEPS) and performance requirements for lamps, including LEDs. A mandatory labeling system will raise consumer awareness and encourage recycling of mercury-added lamps. A monitoring, verification and enforcement scheme will reinforce the policies. III. Summary of benefits of the transition to energy efficient lighting The transition to efficient lighting in the residential, commercial/industrial and outdoor sectors would result in direct annual emission reductions of 145 kilotons of CO2 equivalent. Annual energy savings in terms of reduced electricity consumption would be 359 GWh (6% of total national electricity consumption; 38% of electricity consumption used for lighting). Annual costs savings in terms of avoided electricity expenditures and purchase costs of lamps would be USD 26 million.

Annual benefits of the transition to efficient lighting in Bolivia

5 GEF-5 PIF Template-December 27, 2012 (domestic,commercial/industrial and outdoor sectors)

CO2 emission reduction (kt) Energy savings (GWh) Cost savings (million USD)

145 359 26

With the phase out of only inefficient incandescent lamps, the environmental benefits would be 93 kilotonnes annual CO2 reduction. Annual energy savings in terms of reduced electricity consumption would be 231 GWh. The annual costs savings in terms of avoided electricity bills and lamp costs would be USD 18 million. The implementation of MEPS within the project will lead to a larger stock of high performing lighting products with a mix of approximately 85% CFLs, 5% LEDs, and 10% incandescent lamps. Implementing MEPS provides benefits beyond the period of the project through reduced energy consumption and CO2 reductions. UNEP estimates that by implementing MEPS across all lighting technologies in 2016, Bolivia would have cumulative electric savings of 6.6 TWh and cumulative CO2 reductions of over 2.6 million tons (Mt) in 2030. Cumulative Benefits of Implementing MEPS Across All Lighting Technologies in 2016

2020 2025 2030

Cumulative Electricity Savings from Lighting MEPS (TWh/yr) 1.73 4.04 6.61

Cumulative CO2 Savings from Lighting MEPS (Mt of CO2) 0.70 1.63 2.67

The project will strengthen the capacity of the Government of Bolivia, raise awareness among consumers and interest of lighting industry key players about efficient lighting technologies. The project will speed up the transfer of low-carbon, high efficiency technologies for the lighting sector. This will be translated into comprehensive national policy and regulatory frameworks and create the necessary conditions for technology transfer benefiting Bolivia. The overall objective of the project is to accelerate the transition to energy efficient lighting technologies in Bolivia through the development of a national efficient lighting policy and practical interventions that ensure success of the transition, thereby reducing GHG emissions, mitigating climate change and increasing substantive resources for the development of the Bolivia. The project consists of four major components: Component 1: National policy to promote the rapid transition to efficient lighting This component will develop a National Efficient Lighting Strategy in Bolivia leading to the progressive phase-out of inefficient incandescent lamps. Activities will include: •Identifying national phase-out and efficient lighting objectives.

6 GEF-5 PIF Template-December 27, 2012 •Establishing national mandatory lighting MEPS, based on global best practice, accepted international standards and Bolivia conditions. •Creating policy support mechanisms such as: economic and financial incentives and tools, information and awareness raising campaigns, labeling schemes and other market-based actions. •Designing a national quality control mechanism to ensure compliance with the lighting MEPS •Designing an environmentally sound management scheme with a robust legal framework •Creating a locally appropriate communication, information and awareness raising campaign •Establishing roles, responsibilities and an achievable timeline for implementing the strategy. •Considering how to best finance the strategy to address initial costs and to measure and capture long- term economic benefits Bolivia’s strategy will be developed in consultation with the relevant national public and private stakeholders following a participatory, multi-stakeholder process. To complete the strategy Bolivia will receive direct technical assistance from UNEP. Bolivia will be supported via existing en.lighten methodology and guidance. The en.lighten global Centre of Excellence with its network of efficient lighting experts will support Bolivia officials and stakeholders in assessing the most appropriate channels to ensure the transition. en.lighten’s online support center will help to strengthen Bolivia’s capacities by delivering targeted information, technical webinars and training videos. Key actors include governmental authorities such as the Ministries of Energy, Environment and Economy. This activity will be directly supported and co-financed by UNEP and its private sector partners. en.lighten has an existing Partnership with the Ministry of Electricity. Expected outputs : 1.1.1 Comprehensive policy developed and implemented to ensure a successful transition to efficient lighting market including standards, financial mechanisms to support countries in their efforts to implement their national transition plans; 1.1.2 National legislation set and enforced including MEPS to promote efficient lighting; 1.1.3 MVE framework created to ensure compliance of lighting products in the market; and, 1.1.4 Regulatory environment and legal frameworks that ensure environmentally sound management of spent lamps. 1.1.5 Communications and awareness raising campaign implemented to increase public demand for efficient lighting. Component 2: Creating MVE capacities to ensure an effective transition to efficient lighting The success of a transition strategy depends on a well-functioning system of monitoring, control, and testing facilities to ensure enforcement and full compliance with MEPS. Poor quality products disappoint users and lead to complaints about the transition to efficient lighting. MVE activities include: continuous assessment of the process to verify product efficiency; validating declarations of conformance; and, enforcing actions against suppliers or retailers of non-compliant products. Lighting test facilities will be developed according to the specific needs and situation in Bolivia. Any MVE scheme will comply with Bolivia’s legal system. To enhance the MVE capacity in Bolivia, en.lighten will facilitate sharing of information and skills between neighboring or similar countries. The project will encourage regional cooperation and harmonization to strengthen MVE schemes and to discourage entry of poor-performance products. Key actors in charge of planning, customs operations, and energy include the Ministry of Hydrocarbons and Energy; the Ministry of Planning; and the Ministry of Environment and Water. This component will be directly supported and co-financed by the National Lighting Test Center (Beijing) and its joint collaboration with UNEP, the Global Efficient Lighting Center. Expected outputs: 2.1.1 Legal and administrative processes to improve compliance with national MEPS; 2.1.2 Technical training and support to government trade and customs authorities; and, 2.1.3 Create or strengthen a national lighting laboratory to verify product compliance with MEPS. Component 3: Implementing environmentally sound management for lighting products Concerns over the mercury content of CFLs with regard to health and the environment are an obstacle to the use of mercury-added lamps. To reduce this barrier and to address public concerns, en.lighten’s global task force experts recommend that: the doses of mercury in lamps be reduced to the maximum

7 GEF-5 PIF Template-December 27, 2012 allowable content in line with international best practice; and, countries adopt environmentally sound management systems to ensure that mercury and electronic waste is not released into the environment. This advice is consistent with global initiatives such as the “Basel Convention on the Control of Trans- boundary Movement of Hazardous Wastes and their Disposal,” and the the recently adopted text of the Minamata Convention on Mercury." This component will establish a collection scheme, recycling facilities and/or sound disposal systems, as appropriate, to ensure the sustainable end of life treatment of spent lamps. Actions will conform to the national legal waste management framework for efficient lighting products developed under Component 1 (above). The system will be adapted to the conditions of Bolivia to ensure effectiveness. The project and its private sector partners will coordinate activities among countries within the region and with other organizations to ensure conformance with the Basel Convention. The system will collect and recycle magnetic ballasts that may contain polychlorinated biphenyls (PCBs), and, CFLs and other mercury-added lamps (linear fluorescent and mercury vapor) that presently could be disposed of in an environmentally unsound manner. These activities will be implemented and co- financed with private sector organizations (lamp manufacturers, recycling companies, importers, distributors and retailers) as well as the Basel Convention Regional Centers. Expected outputs: 3.1.1 Implementation of a national framework on environmentally sound lamp waste management; 3.1.2 Training for governmental authorities, retailers and collection bodies; 3.1.3 Communication campaigns to promote environmentally sound handling, separation, collection and recycling of spent lamps; and, 3.1.4 National waste management system for spent lamps (facilities and international coordination for the environmentally sound export/import of lamp waste). Component 4: Lighting innovation – accelerating the use of solid state lighting and controls Solid state lighting and controls used throughout Bolivia could significantly reduce electricity consumption and related GHG emissions. Energy consumption (watt-hours) for lighting can be reduced by deploying technologies that require lower input power (watts); and, by reducing unnecessary use (hours) through automatic controls or changes in user behavior. Bolivia expresses a strong interest in demonstrating, evaluating and deploying light emitting diodes (LEDs) and lighting controls. LEDs for general illumination applications are available in developed markets, but higher initial costs and unfamiliarity among users delay their uptake in Bolivia. Through stakeholder consultations, the project will develop a menu of market-pull activities including:

• Training and information about LEDs and controls and how they are best applied in each sector (domestic, commercial/industrial and outdoor lighting), drawing upon international best practices, case studies and published evaluations; • Demonstrations and evaluations of LEDs and lighting controls, including case studies of financial models for offsetting the higher initial first cost of high efficiency products (such as bulk procurement discounts, leasing schemes, micro-financing, energy service company financing, and low-cost loans for pre-qualified products and installation services); • Best practice technical advice for LED and lighting controls procurement, such as specification development and product performance evaluation methods; • Development of quality specifications and/or MEPS for LED lamps and lighting controls to protect local markets and consumers from inferior products at lower price points; • Technical advice and training via the en.lighten expert network for laboratories that intend to be qualified to test and evaluate the performance of LED lamps and lighting control products; and, • If requested by industry or economic development authorities, technical consultations will be arranged by en.lighten for manufacturers or assemblers of lighting products, so that they can learn about and potentially produce LED lamps and controls. The coordination of public and private institutions is a priority for the implementation of energy efficiency projects. These institutions include: a) Ministry of Hydrocarbons and Energy (Ministerio de Hidrocarburos y Energía - MHE) b) Bolivian Fiscal Oilfields Corporation, (Yacimientos Petrolíferos Fiscales Bolivianos Corporación -

8 GEF-5 PIF Template-December 27, 2012 YPFB) c) National Electricity Company (Empresa Nacional de Electricidad - ENDE) d) Ministry of Transportation (Ministerio de Transportes) e) Ministry of Industries (Ministerio de Industria) f) National Institute of Statistics (Instituto Nacional de Estadísticas - INE) g) Regional Governments; Utilities Companies; Energy Audit Enterprises; National Industry Chamber; and, other funders. Expected outputs: 4.1.1 Enhancement of the National Efficient Lighting Strategy with more stringent MEPS to accelerate demand for advanced lighting technologies and systems. 4.1.2 Supporting policies to increase user acceptance and demand for higher efficiency lighting.. 4.1.3 MVE scheme to to secure the expected energy and GHG emission benefits. 4.1.4 Pilot demonstration programme to introduce and evaluate LEDs and lighting controls. Innovativeness, sustainability and potential for scaling up: The use of solid-state lighting and controls is innovative in an economy where initial costs often lead to selection of inefficient, short-term installations. By demonstrating and documenting the long-term economic and environmental benefits of advanced technology, the business case for sustainable solutions can be examined and adopted by key players in Bolivia, such as municipal governments and other providers of public services who are accountable for sound financial management of resources. As in many other en.lighten Partner Countries, demonstration projects accelerate the adoption of best practices and best available technologies. Peer-to-peer communication and stakeholder evaluations of demonstrations of LED streetlighting, for example, helps to aggregate demand and create templates for technical specifications that can be used to purchase hardware and installations services at lower cost, and to secure maintenance contracts and warranties that deliver longer-term savings.

A.2. Stakeholders. Identify key stakeholders (including civil society organizations, indigenous people, gender groups, and others as relevant) and describe how they will be engaged in project preparation: Stakeholders Role in PPG phase Government and Policy makers, officials and technical staff within government ministries will help national standards- to define needs and articulating appropriate responses in the project preparation setting bodies and documents. The Ministry of Industry and Energy will be the national project testing laboratories partner. The Ministry of Industry and Energy is responsible for policy and regulatory actions to promote energy efficiency. The Ministry of Ecology and Natural Resources will advise the project preparation team on climate mitigation activities and hazardous materials issues. The national standards-setting body will advise on establishing or adopt LED and controls test methods. Testing laboratories will note support needed to build capacity. Energy providers Energy utilities have an incentive to encourage efficiency to lower capital costs for infrastructure. Regulated or state-owned utilities may have additional incentives. Utilities will provide key inputs on program design to the projects, to reflect consumer and commercial customer demand patterns. Lighting The lighting supply chain is affected by energy efficiency regulations. MEPS manufacturers, necessarily impose some burdens on manufacturers and importers, but these can importers, distributors be acceptable as long as they affect all companies equally and also introduce new and retailers business opportunities. Thus the private sector will be invited to review and comment on the proposed project activities. Environmental Non-governmental organizations that advocate responsible energy policies will advocates and contribute their perspectives during the development of the proposed tasks that consumer groups will eventually establish lighting MEPS. They will provide a balancing perspective to manufacturers with regard to the stringency of MEPS and MVE

9 GEF-5 PIF Template-December 27, 2012 schemes. Input from civil society consumer groups will also be sought, to identify potential partners for the implementation phase. International UNEP experts from international organizations and institutions will support organizations, implementation of national activities. The project preparation team will discuss regional banks and the project plans with international and regional development banks and other financial institutions financial institutions to catalyze access to financiers for the project.

A.3 Risk. Indicate risks, including climate change, potential social and environmental risks that might prevent the project objectives from being achieved, and, if possible, propose measures that address these risks to be further developed during the project design:

Risk description Mitigation measure Level of risk Weak government (i) Formulate policies on energy efficient lighting, including the Medium support, which leads to accompanying implementing rules and regulations; (ii) Improve inadequate and ineffective the institutional arrangements for the enforcement of lighting enforcement or policies product standards and quality norms and regulations. Policies might be (i) Implement proposed project via leading policy development High recommended but not bodies; (ii) Involve policy makers in the policy development implemented and review process. (iii) Involve the UNEP Regional Office for advice and contacts (iv) Coordinate activities and obtain political support and advice from UNDP and UNIDO offices in Bolivia Delayed implementation During the proposed project design stage, committed Medium of activities that are implementation partners will be identified. During design a baselines for specific realistic schedule will be agreed upon by responsible agencies. incremental activities of the proposed project Low level participation Involve the private sector key players from the outset; (ii) Medium from the private sector disseminate latest information through appropriate channels; actors including lighting (iii) identify needs and demands through continuous dialogue; technology manufacturers (iv) involve UNEP Executive Director to obtain participation and distributors. and progress from private sector global players.

A.4. Coordination. Outline the coordination with other relevant GEF financed and other initiatives: The project aligns with and provides a valuable resource for GEF’s other initiatives linked to energy efficiency lighting. The en.lighten initiative offers a repository of knowledge and best practice experiences to promote efficient lighting solutions. UNEP coordinates all of its GEF-funded lighting projects with en.lighten’s integrated policy approach. On request, the en.lighten team also consults with UNDP and World Bank lighting project teams. B. DESCRIPTION OF THE CONSISTENCY OF THE PROJECT WITH:

B.1 National strategies and plans or reports and assessments under relevant conventions, if applicable, NAPAS, NAPs, NBSAPs, national communications, TNAs, NCSAs, NIPs, PRSPs, NPFE, Biennial Update Reports, etc.: As non-annex I party to the United Nations Framework Convention on Climate Change (UNFCCC), the national communication of Bolivia to the UNFCCC clearly identifies energy efficiency as a critical path to reduce CO2 emissions. The project is in line with national priorities of Bolivia and

10 GEF-5 PIF Template-December 27, 2012 will contribute directly to its sustainable development. According to the provisions of D.S. 29894 Decree Executive Organization (DOE) in its Article 61, the Vice Ministry of Energy Development (VMDE) among other duties, shall: Propose comprehensive planning of the energy sector in the medium and long term. Coordinate with deputy ministers and institutions sector activities related to energy policy and the environment. Develop and evaluate the country's energy policy to ensure the efficient use of our energy resources. Coordinate with the respective deputy ministers the proposal of energy efficiency policies. Bolivia's D.S. 29466 of 5 March 2008 established the National Energy Efficiency Program (NEEP); 2.2.3 delimits the following lines of action: Implement energy efficiency criteria for supply and demand of electricity and for monitoring and control of national energy efficiency. Incorporation of international mechanisms for energy efficiency. Develop a policy and regulatory framework for the National Energy Efficiency Program. Implement a system of certification of energy efficiency. Develop tools and economic incentives, tax and financial efficiency. Sector programs for energy efficiency in residences, industry, energy transformation, the public sector; and, echnological innovation. Various energy efficiency efforts have been implemented in Bolivia: • In 2007 a program was initiated to replace bulbs in the residential sector and in 2008 a national program started to replace incandescent bulbs with compact fluorescent lamps (CFLs), which was the first nationally coordinated activity to improve energy efficiency in the residential sector. By 2012 just over 9 million incandescent bulbs had been replaced with CFLs and it is expected that this program will reduce the demand for additional power generation capacity by about 80 MW. • Awareness campaigns for rational use of electricity: "Move your electricity consumption off-peak" and "If you turn the light off, you won’t pay for it." While these activities are focused on promoting energy conservation, they also represent the initial awareness activity about energy use. B.2. GEF focal area and/or fund(s) strategies, eligibility criteria and priorities: The proposed project supports GEF climate change focal area objective CCM-1 that deals with the promotion, demonstration, deployment, and transfer of innovative low-carbon technologies, particularly high efficiency and usage-controlling lighting technologies. Lighting is a major electricity-consuming appliance system in all buildings, sectors and industries, so the project is consistent with GEF climate change focal area objective CCM-2 that deals with the promotion of market transformation for energy efficiency in industry and the building sectors.

B.3 The GEF Agency’s comparative advantage for implementing this project: As the executing partner in the GEF en.lighten initiative, UNEP has generated a globally accepted policy consensus to phase out inefficient incandescent lamps. The en.lighten initiative offers a Centre of Excellence comprised of over 50 lighting experts—representing over 30 countries—from private sector companies, governments, civil society, academia, research organizations and international agencies. The Centre of Excellence provides recommendations, technical guidance and efficient lighting expertise to assist countries in the shift to energy efficient lighting. As of early July 2012, 47 countries from four continents have joined the UNEP/GEF en.lighten Global Efficient Lighting Partnership program and have committed to phase out inefficient incandescent lamps by 31 December 2016. Bolivia is a Partner presently and has access to remote support from en.lighten. However, the availability of financial resources is a key obstacle to implement the effective transition in additional countries. Momentum to achieve the global transition developed within a relatively short time, but to satisfy the very strong demand for technical services, UNEP requires additional financial resources. The UNEP/GEF en.lighten initiative has developed informative and practical tools to support committed countries in their efforts. These are all publicly accessible via en.lighten's website. The en.lighten initiative is considered by many a successful model of public/private partnership between the GEF, UNEP, OSRAM AG, Philips Lighting B.V. and the National Lighting Test Center of China as it brings together the expertise and capacities of these leaders and organizations to enhance innovative approaches to accelerate the deployment of efficiency lighting in developing and emerging countries. UNEP and the National Lighting Test Center of China jointly have established a UNEP Collaborating Center on Energy

11 GEF-5 PIF Template-December 27, 2012 Efficient Lighting, the Global Efficient Lighting Center, to supportcountries strengthening their capacities around testing and laboratory capacities to ensure an effective transition to efficient lighting.

PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF AGENCY(IES )

A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the Operational Focal Point endorsement letter(s) with this template. For SGP, use this OFP endorsement letter).

NAME POSITION MINISTRY DATE (MM/dd/yyyy) Juan Pablo Cardozo Viceministero MEDIO 09/13/2012 Arnez AMBIENTE

B. GEF AGENCY(IES) CERTIFICATION

This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for project identification and preparation. Agency Signature Date Project Telephone E-mail address Coordinator, Contact Agency Name Person Maryam Niamir- 02/12/2013 Edu Hassing +33 1 4437 Edu.hassing@u Fuller, Director Task Manager 1474 nep.org GEF Coordina- Climate tion Office, Change UNEP/ UNEP Division of Technology, Industry, and Economics (DTIE)

12 GEF-5 PIF Template-December 27, 2012