Project Title: Developing Sustainable Settlements for Afghan Refugees In

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Project Title: Developing sustainable settlements for Afghan refugees in the Islamic Republic of Iran Project ID Number: 190041 Area/Location/Countries: Asia and Pacific, Islamic Republic of Iran Thematic code: HC3 Safeguarding the Environment, HC1 Creating Shared Prosperity RBM code: HC32 Clean energy access, HC13 Human Security and Post-crisis Rehabilitation

Planned start – finishing date: 01.08.2019 – 31.07.2022 Duration: 36 months Government Coordinating agency & Executing agency/cooperating agency: Bureau for Aliens and Foreign Immigrants Affairs (BAFIA) and Ministry of Industry, Mine and Trade (MoIMT) Counterpart: Local governments, national institutions and agencies Budget: Project Inputs US$ 1,314,291 Programme Support Cost (13%) US$ 170,858 Counterpart Inputs - Gross Project Budget US$ 1,485,149

Brief description: The proposed project will facilitate resilient livelihood for refugees in Islamic Republic of Iran. The objective of the project is to promote sustainable infrastructure in five selected settlements to improve refugees’ livelihood through low-carbon energy, waste and water infrastructure. The key target group of the project will be the refugees residing in the settlements (with special attention to youth and women), with a view to strengthen their capacities and access to job opportunities through vocational trainings and appropriate action plans.

A. CONTEXT

A1. Project Purpose

The strategic approach envisaged by United Nations Industrial Organization (UNIDO) is based on the premise that it is critical to enhance the access of communities to reliable, affordable and sustainable energy for creating productive capacities and job opportunities. In addition, this approach emphasizes the need to empower refugees with skills, tools and knowledge to engage in economic activities and to ensure that they are able to sustain their daily lives with dignity in countries of their (temporary) settlement. This would essentially means, leaving no one behind. The project will aim to strengthen the low-carbon infrastructure (hardware), and provide refugees the necessary skills, tools and knowledge (soft activities) in clean technologies to join the workforce in these industries to adequately face future challenges. Providing cleaner and innovative technologies will include renewable energy (e.g. solar energy), energy efficiency (e.g. energy efficient cook stoves), waste-to-energy, water treatment, as well as sustainable connection to urban areas through innovative mobility concepts. As such, the project will bring innovation for sustainable settlement infrastructure, and deliver skills and tools to strengthen capacities of the refugees. This will primarily benefit the main target group of the project, i.e. the refugee population with particular emphasis on youth and women. Furthermore, this project is envisioned to contribute to long-term development gains such as capacity building of the government counterparts and settlement authorities, whose capacities are critical for the sustainable continuation of the project interventions. The project will thus deliver direct support to address the immediate needs of the people and the communities in question, in a way that will strengthen and improve the long-term capacities of the settlements. A2. Baseline Scenario

Providing for close to 1 million registered Afghan refugees, Islamic Republic of Iran currently is ranked as the fifth largest refugee hosting country in the world. Of these refugees, 97 percent reside in urban or semi-urban areas across the country. The remaining three percent live in 20 government-run refugee settlements. UNIDO is a partner agency to the Solution Strategy for Afghan Refugees (SSAR) which is a tripartite agreement between Government of Iran and the United Nations High Commissioner for Refugees (UNHCR) and UNIDO. In line with the SSAR framework, Government’s inclusive strategy for Afghan Refugees is focused on three pillars, namely, health, education, and livelihoods. As a partner agency to the SSAR in Iran, UNIDO supports the Government’s strategy to develop and sustain self-reliance. The SSAR framework serves as the strategic basis to enable multilateral consensus building and to offer a framework for joint interventions which includes 29 different agencies, NGOs and ministries that work jointly on the three pillars. Connected to this ongoing effort, a portfolio of projects has been prepared for each country in 2014 and updated in 2015. This includes an integrated framework for multilateral cooperation and coordination between all partners.

The strategy compromises the following objectives with connection to the proposed project:1

 Empower Afghan refugees through improved education, access to health services and livelihood opportunities  Support the Government of Iran in the areas of education, health, shelter, water and the environment, in order to reduce the effects and consequences of the temporary presence of Afghan refugees

Furthermore, SSAR is facilitating cross border cooperation between Afghanistan and Iran, linking skilled Afghan refugees in Iran with the job opportunities in Afghanistan. Providing financial services including business loans and micro credits are key interventions of the SSAR program, opening up possibilities of training and capacity building for refugees through the proposed project, in order to support their reintegration in their home country. The project has selected the five most populated Afghan refugee settlements in Markazi, Yazd, Semnan, Kerman and Khorasan as pilot project intervention sites. The selection of these settlements has been done based on a three month feasibility study in consultation with UNHCR and BAFIA. According to the SSAR report of 2018-2019, the five selected sites host 17,920 Afghan refugees of total number of 29,599 refugees who live in settlements. This would be equal to approximately two thirds of the refugee settlements in Iran. Most of the settlements have been established over 20 years ago and the shelters and other infrastructure (water, gas, electricity and public spaces) are in dire need of maintenance or rehabilitation to ensure the sanitary conditions and physical safety of Afghan refugees, and to improve their resilient livelihood in the country. Population of Refugee Settlements in Iran

No. Province Settlement Population 1 Bushehr Dalaki 201 2 Jahrom 126 Fars 3 Sarvestan 577 4 Rafsanjan 5,389 Kerman 5 Bardsir 3,171 6 Kermanshah Songhor 25 7 Khorasan Torbat e Jam 4,020 8 Khuzestan Bani Najar 1,902 9 Kurdestan Varmahang 9 10 Lorestan Abazar 124 11 Markazi Saveh 4,839 12 Semnan Mohajerin 3,672 13 Ziveh 281 14 W. Azerbaijan Dilzeh 14 15 Bezileh 32

1 https://www.unhcr.org/protection/operations/539ab62a9/solutions-strategy-afghan-refugees-islamic-republic-iran- 20152016.html

16 Ardakan 2,982 17 Yazd Meybod 1,207 18 Taft 1,003 19 Zanjan Soltanieh 10 20 Khuzestan Ansar 15 Total 29,599

The role of UNIDO as a UN Specialized Agency is focused on the achievement of Inclusive and Sustainable Industrial Development (ISID) by pursuing the Sustainable Development Goal (SDG) 9 “Industry, Innovation and Infrastructure”. Within the larger context of migration and humanitarian assistance, UNIDO works along the following guiding principles: - The development of infrastructures and productive systems should intervene at an early stage of the Humanitarian Refugee Response Plan (RRP) rather than in post-emergency planning. The capacity of refugees and local businesses should be reinforced in key areas such as: refugees Sites and Settlements; Energy; Water and Sanitation; Food Security; Non-food items; Financial assistance; - In laying the foundations for long term stabilization in the region, the role of industry and the private sector is central in both capacity building and empowering refugees and decreasing forced displacement as well as managing the effects of migration. This entails increasing preventive measures destined to build resilience and address the economic, social, cultural and environmental drivers of migration, while mitigating the negative impacts of migration on refugees and host communities. Developing human capital and skills and facilitating circular migration is essential to enhance positive economic effects of migration. The proposed project will aim to improve the livelihood condition of 17,920 refugees through 2 key intervention areas:

- Resilient low-carbon infrastructure, such as energy, waste, water, transport in settlements

- Strengthening capacity to engage in economic activities by starting up or working with the local service providers with special attention to vulnerable groups (women and youth) creating jobs and supporting business development INTERVENTION AREA ACTIVITIES TARGET BENEFICIARIES Resilient low-carbon Green energy provision, energy SETTLEMENT infrastructure incl. energy / efficiency, waste-to-energy, INFRASTRUCTURE: Settlement waste management / water / water treatment, mobility management, city mobility solutions administration Capacity strengthening for job Refugees creation with focus on clean INDIVIDUAL: Refugees, with (Vulnerable groups) technologies for startups and focus on women and youth entrepreneurs Private (manufacturing and/or Job creation in clean LOCAL ECONOMY: Refugee- service) sector technologies led startups and SMEs

The project will support a stable, environmentally friendly and sustainable energy supply within the target sites through integrated multifocal approach. The goal is to support ongoing efforts within the country to cope with urgent needs and gaps as well as to provide more livable and sustainable infrastructure solutions for refugees while contributing to tackle environmental degradation and climate change. Access to self-employment opportunities will be promoted and facilitated, particularly focusing on the capacity building of female refugees to start small businesses in different fields. This can be obtained through the provision of income-generating activities such as skills and vocational training, as well as the provision of small grants for refugees to establish and expand home based and small businesses. These interventions will be made while also ensuring that host communities, especially those who are vulnerable, are included. Based on the ‘do no harm’ principle, members of host community will be included in the project as much as possible, e.g. bringing in both the refugees and the host community members in the project activities, including the relevant trainings and project events to promote mutual understanding and social cohesion between the different groups of people. UNIDO currently manages a project portfolio of 6 projects with a total budget of US$ 13,436,530 in Iran. The government of Iran funds three of these ongoing projects with an amount of US$ 4,371,271. Country context Historical urban settlements dating back to 7000 BC in Iran, making the country home to one of the world’s oldest civilizations. The country is located in Western Asia and throughout the history, Iran faced changes and a variety of different empires and migration of different ethnic groups. The country's central location in Eurasia and Western Asia give it a geostrategic importance. Tehran is the country's capital and largest city, as well as its leading economic and cultural center. The sovereign state of Iran is a founding member of the UN, ECO, NAM, OIC, and OPEC. It is a regional economic power, and its large reserves of fossil fuels – which include the world's largest natural gas supply and the fourth largest proven oil reserves–, exert considerable influence in international energy security and the world economy. The country's rich cultural legacy is reflected in part by its 22 UNESCO World Heritage sites, the third largest number in Asia and 11th largest in the world. The population of t has increased rapidly within the second half of the 20th century, reaching to 81 million inhabitants in 2017, while it is forecasted that the population will increase to above 100 million by 2050. In line with that, the urban population changed from 15,8 million in 1976 to 53,6 million in 2011, showing a clear trend for urbanization; furthermore, the population is on average very young with largest proportion aged between 0-29. Most of the population is concentrated in the north, northwest, and western part of the country. It is estimated that over the last three decades, one million people have moved within the borders of Iran leading to approximately 75% of this population residing in urban areas. It is expected that this trend will increase towards 80 percent in 2050.2 In addition, Iran has been facing influx of Afghan refugees since 1978 due to different conflicts and developments in Afghanistan. Socio-Economic Context (Source: UNESCO Institute, Organization):

2 www.iran.unfpa.org

GNI per capita, Atlas method (current US$) 5,400 2017 Mortality rate, under-5 (per 1,000) 15.1 2016 Population growth (annual %) 1.1 2017 Population, ages 0-14 (% of total) 23.7 2017 Population, ages 0-14, total 19,226,391 2017 Population, total 81,162,788 2017 Prevalence of HIV, total (% of population ages 15-49) 0.1 2016 Unemployment, total (% of total labor force) 13.1 2017

Overview of the key challenges in refugee settlements Since most of the infrastructure within the refugee settlements is in urgent need of maintenance and rehabilitation, the proposed project will facilitate the sustainable improvement of infrastructure within the selected areas in connection to urban areas and municipality. This will promote and ensure stable provision of energy which is the prerequisite for all human needs such as access to clean water, cooking and education facilities. Therefore, the present UNIDO project proposal is focusing on addressing livelihood infrastructure and educational needs as the key problems of the Afghan refugees in Iran. It is also consistent with the SDGs through the impact that the project activities will have on reducing poverty (SDG 1), ensure healthy lives and promote well-being for all ages (SDG 3), ensure availability and sustainable management of water and sanitation for all (SDG 6) and most critically, to build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation, SDG 9 which is the main mandate for UNIDO.

Recent studies have highlighted the possibility for a reduction of 6.85 million tons of CO2 in a year, and savings of 296 million euros spent on fuel for refugees.3 This illustrates a huge potential of GHG emission reductions and costs saved if deployed in different households of countries, settlements and settlements of refugees. Additionally, energy efficiency and renewable energy interventions are not only clean and safe for refugees, but provide opportunities for inclusive industrialization for the surrounding communities that are hosting the transit settlements. The approach also seeks to reap women’s empowerment potentials through the proposed interventions. The envisaged capacity building activities will not only increase the likelihood that the refugees find employment opportunities at the place of settlement, but also help increase the income generation and employment prospects that can potentially reduce the incentives for migration.

Iran’s energy use intensity and per capita CO2 emission levels are among the highest in the world. Furthermore, gaps in solid waste management are posing risks to environment and human health. UNIDO has been working in this field since several decades and the gained experience, the established network, and the unique focus on industrial development contributes to address such issues within the Sustainable Cities and Communities Program in line with the UNIDO mandate of Inclusive and Sustainable Industrial Development, thus providing benefits to a variety of different stakeholders. Furthermore, keeping this in view, UNIDO4 together with other partners aims at providing integrated and sustainable energy services to refugees for inclusiveness, empowerment and job opportunities. Besides the national level benefits, the implementation of this project promotes regional human security by creating resilient livelihood and empowering Afghan refugees, especially youth and women residing in the selected settlements as well as the hosting community. In the mid-term, promoting human security in the region will also help to increase regional and cross-border stability, which is necessary for voluntary repatriation of refugees to their home countries. The inception phase will deliver a detailed assessment of the current status (baseline) in the target settlements. The parameters to investigate will include access to basic services and employment, fiscal situation, relationship with the host community, etc. Overview of National Policy Baseline Iran aims to develop solutions that are more lasting and is pursuing to implement activities with longer impacts to help refugees and Internally Displaced People (IDPs) through the Humanitarian Implementation Plan which covers Afghanistan, Pakistan, Iran and Central Asia. This plan is intended to address the needs of vulnerable populations affected by the ongoing conflict in Afghanistan and its consequences on neighboring countries like Iran. It also includes provisions to improve capacities to prevent and respond to the effects of natural disasters and climate change. BAFIA under the Ministry of Interior is in charge of reviewing the refugees’ status under the “Amayesh” scheme. This scheme has the goal to enable refugees to access basic services with help of the Amayesh cards. This strategy was implemented in 2003 and the scheme has been carried out on a periodic basis. Ameyesh card holders are allowed to live in urban areas and to have freedom of move within the province where there were registered. In addition, some temporary work permits are issued in accordance with certain rules. The SSAR developed by Afghanistan, Iran, and Pakistan in cooperation with UNHCR enables the agency to support the Government of Iran and carry out UNHCRs core mandate, activities and seeks to recognize a comprehensive solution for Afghan refugees in the region. It aims to address the needs and protection of refugees while seeking durable solutions. This includes five outcomes that are in direct connection to the proposed project:

 Voluntary repatriation  Access to essential services and shelters  Livelihoods and food security

4 United Nations Industrial Development Organization (UNIDO)’s mandate is to promote Inclusive and Sustainable Industrial Development (ISID). UNIDO aims addressing the needs of migrants and displaced communities that include refugees by empowering them in terms of capacity, knowledge, skills and self-reliance.

 Social and environmental protection and resettlement  Coordination and supporting role Furthermore, the Government of Iran has facilitated the inclusion of registered refugees into the universal public health insurance scheme (UPHI) since 2015. This includes additionally to the health benefits, benefits for social protection and reduction of financial burdens in order to prevent and tackle child labor and other social harms among refugee groups.5 The proposed intervention by UNIDO is in line with the Iran UNDAF, which implies that Iran has institutionalized improved social protection and poverty alleviation mechanisms for vulnerable people at national and sub-national levels. Moreover, the proposal also considers the strategic objectives of the UN response to the Afghan refugee crisis, outlined in RRP report by UNHCR. A3. Main Target Groups The direct beneficiaries of the project will be 17,920 Afghan refugees from 29,599 refugees who live in the five target sites in Iran. Furthermore, the host municipalities and operators of the refugee settlements will be supported in their ongoing efforts and will benefit from UNIDO’s experience in sustainable industrial development. Through the integrated approach of the proposed project, comprising of sustainable energy generation, adequate waste management and capacity building, direct beneficiaries will also include the Ministries that are members to the SSAR and the NGO’s who are taking part in this framework in order to achieve a holistic project execution and impact on all connected levels.

5 https://www.unhcr.org/protection/operations/539ab62a9/solutions-strategy-afghan-refugees-islamic-republic-iran- 20152016.html

Target Project Sites The project will be implemented in five provinces of Iran as shown in the map below:

The five selected settlements cover the most populated refugee sites in Markazi (4,839), Yazd (2,982), Semnan (3,672), Kerman (5,389) and Khorasan (4,020). The selection of these settlements has been based on a three month feasibility study in consultation with UNHCR and BAFIA. According to the SSAR report of 2018-2019, the five selected sites are hosting 17,920 Afghan refugees from 29,599 refugees who live in settlements. The livelihood conditions in these settlements differ from province to province, however, based on the UNIDO country office field study in consultation with BAFIA and UNHCR, the five selected settlements are in dire need for infrastructure improvement including waste management, clean water and energy access.

According to SSAR report of 2018-2019, these five selected sites are hosting 17,920 Afghan refugees from 29,599 refugees. UNHCR also states that the half of the Afghan refugee population is children below 18 years and 52% of vulnerable refugees are women. The targeted total number of main project beneficiaries (refugees) is 17,920. The indicative breakdown of beneficiaries shown in the tables below: Beneficiary breakdown based on settlements: Settlement Number of beneficiaries Markazi 4,839 Yazd 2,982 Semnan 3,672 Kerman 5,389 Khorasan 4,020 Total number of project 17,920 beneficiaries Beneficiary vulnerable groups: Total number of project beneficiaries Beneficiary vulnerable groups (indicative) Youth (male and 17,920 Women and girls female below 18 years) 9,319 8,960

The breakdown on number of beneficiaries (women, youth, and other vulnerable) will be collected during the Inception Phase (Outcome 1.), since such information disaggregated by sex and age is currently not publicly accessible. The consultant company/expert groups performing need assessments (Output 1.1.) will be obliged to have at least one gender/social expert in their team. Besides UNHCR, the project will collaborate with relevant NGOs focusing on the social aspects of refugees in Iran such as the Association for Protection of Afghan Women and Children (HAMI). The main beneficiaries of the project will be the refugees. In addition, the private sector and local industries will indirectly benefit from the project activities. The role of local private sector including SMEs and startups will include supplying equipment and services for infrastructure investments and promoting market related skills towards job creation for refugees. The involvement in the local economy is essential to sustain stable jobs for refugees in the long-term. Refugees will be equipped with vocational skills through trainings designed to meet the specific needs of the local actors and private sector. While refugees benefit from sustainable income, the local economy will benefit from qualified employees fine-tuned to their demands. The currently available information about the selected settlements’ livelihood status is described below.

Markazi: Saveh, Mehmanshahr Shahid Naseri: There is a village and refugee settlement in Taraznahid Rural District, in the Central District of Saveh County, Markazi Province (the closest Refugee settlement to Tehran).

Culture and Inhabitants:

 This refugee settlement is located 25 km from Saveh and the village of Taraz Nahid.  More than 5,400 refugees are living in this settlement. More than 4,900 of these refugee are Afghans.  Afghan refugees settled in the area of 500 hectares from the Faryab, Bamyan, Mazar-e-Sharif, Maimana, Herat and other cities of Afghanistan.  There are 8 main clans in the settlement, in which there are Macosites, Bakhtiari, Heratians, Norias and Hazaras. The neighborhood of each tribe is separated from the other, these neighborhoods are built on earthy alleys.  The Afghan refugee tribes, in addition to having their own separate neighborhood, have built a mosque for their tribes in terraced neighborhoods, and offer religious certificates to Afghan children in the same mosque.  The architecture of the houses and their roofs are based on wooden beams and wooden boards that are also used for fruit boxes.  Some of these Afghan refugees have been living in this settlement for more than two decades.  Executive management for the Mehmanshar Shahid Naseri Settlement is hosted by a council consisting of 11 elders of the Afghan tribes, which may have 7 active members of the council or even fewer.  The council’s responsibility include resolving the tribal disputes, water supply to homes, repair of pipe fractures, garden cleaning and executive work to address the problems of residents of the host city.  The population statistics are monitored monthly by BAFIA.  Only 15 households out of 750 households registered in Saveh have agricultural activities, mostly on farms around the host city, forage required by livestock breeders and wheat and barley.  79 households work in livestock sector. According to the manager of the host city of Saveh, refugees working in the agricultural fields at the beginning of the year to pay the sum in their contracts with BAFIA, which is spent on improving the hospitality status.

Photo Sources: http://qomportal.ir/index.aspx?fkeyid=&siteid=29&pageid=481&newsview=9244; http://af.farsnews.com/social/news/13951222000289

Khorasan Razavi:

 Mashad is the second largest city in Iran after Tehran. Tajiik and Hazara are the dominant ethnicities among the Afghan refugee group. The majority are Shiites from Herat, Bamian, Mazare Sharif and Kabul.  Khorasan Razavi is recognized as one of the main purposes of settling Afghans in Iran, most of whom are settled in Mashhad and often in the Golshahr neighborhood which is about 65% of the population, and about 5,000 Afghan refugees reside in the Settlement Mehmanshahr in Torbat- e-Jam settlement.  Golestan: Gorgan and Gonbad-e-Kavus are located 650 km from Mashhad. The majority of Afghans living in this province are Zabuli (Shiite), Baluch (Sunni), Tajik and Turkmen (Sunni).  Khorasan Province shares a 750 km border with Afghanistan.  178,268 refugees reside in the four provinces under UNHCR Sub Office Mashhad area. Torbat-e-Jam settlement:

 Torbat-e-Jam settlement: 170 km from Mashhad, 80 km from Dogharoun (Dogharoun Border Exit Station: the only repatriation cross border point between Iran and Afghanistan, located 270 km south-east of Mashhad).  In the settlement, there are facilities including schools (from elementary to high school), a health center, mosque, bank, park and children's playground.  Most residents are unemployed or work-seekers.

 A tailoring workshop with over 800 meters square of area has set up in this settlement, which has created jobs for about 80 women.

Photo sources: ISNA at https://en.isna.ir/photo/97091205563/Mother-country-is-best-place-of-world

Kerman:

 Dasht Khak Settlement, Simkhardar, Dasht Zahmatkeshan Settlement, Bardsir settlement and Rafsanjan Settlement are places where most of the Afghan refugees settled in Kerman province.  Lack of a cultural center, housing and drinking water are pressing issues.

 Pollution of drinking water and the proximity of sewage to water wells are among the pressing environmental topics.

Photo sources: Fars News Agency and https://www.khabaronline.ir/news/524064

A4. Stakeholders Name Stakeholder’s mandate

BAFIA (The Bureau for BAFIA under the Ministry of Interior of Iran is in charge of reviewing the Aliens and Foreign refugees’ status under the “Amayesh” scheme. This scheme has the goal Immigrants’ Affairs of to enable refugees to access basic services with help of the Amayesh Iran) cards. This strategy was implemented in 2003 and the scheme has been

carried out on a periodic basis. Ameyesh card holders are allowed to live in urban areas and to have freedom of move within the province where there were registered. In addition, some temporary work permits are issued in accordance with certain rules. The refugee settlements in the country are managed by the BAFIA. The Ministry of The Ministry of Industry, Mine and Trade is an Iranian government Industry, Mine and authority responsible for regulation and implementation of policies Trade applicable to domestic and foreign trade and also regulation and implementation of policies applicable to industrial and mine sectors.

Stakeholders that Stakeholders will also consider relevant gender focal points and experts, as promote gender well as local and international associations and/ or agencies promoting equality and women’s gender equality and women’s empowerment, in particular those focusing empowerment. on the nexus between gender and humanitarian assistance, energy needs and entrepreneurship. Governing officials in The project will collaborate with administrative authorities in the pilot Semnan, Khorasan areas. Razavi, Kerman, Markazi and Yazd Republic of Korea’s The project team will be in regular contact with the Republic of Korea’s Embassy Embassy to ensure the delivery of services as well as the visibility of the achievements.

Local Industries SMEs providing goods and services in sustainable energy and waste management sectors in the pilot areas.

A5. Focus on inclusion of vulnerable groups The proposed project will incorporate the three pillars of UNIDO’s Sustainable Cities Program which includes the following standard cross-cutting themes:  Inclusivity: Gender mainstreaming and youth employment  Resilience: Climate smart investment planning  Partnerships: Engaging cities, stakeholders, and the private sector

Having a sustainable livelihood not only is a right for every adult, but also provides opportunities for children to have quality education. In addition, UNIDO recognizes gender equality and the empowerment of women as a significant positive impact on sustained economic growth and sustainable industrial development, which are drivers of poverty reduction and social integration. UNIDO’s policy on gender equality and the empowerment of women provides the overall guidelines for establishing a gender mainstreaming strategy that:  Ensures that a gender perspective is reflected in its programs, policies and organizational practic es;  Advances the overall goal of gender equality and the empowerment of women, particularly the economic empowerment of women;  Benefits from the diversity of experiences and expertise within the United Nations system to adv ance the internationally agreed development goals related to gender equality;

 Accelerates the Organization’s efforts to achieve the goal of gender balance, in particular at deci sion-making levels; The project intends to bring benefits to support institutions for refugees in which both women and men staff will have a chance to improve their skills and knowledge of modern technologies and industrial information. All required efforts will be made by the project to enroll as many women as possible in its planned training activities, both at management and technical levels, and encourage them to participate in all relevant project and decision-making activities. Special attention will be given to the potentials of the energy-women nexus, where women’s empowerment and accelerating clean energy solutions can become mutually reinforcing goals. In addition, gender balance will also be fostered for facilitators and organizers.

Box 1: Gender UNIDO recognizes gender mainstreaming as a key strategy for achieving gender equality and the empowerment of women (GEEW) which are crucial for achieving a significant positive impact on sustained economic growth and inclusive industrial development, which are key drivers of poverty alleviation and social progress. The project aims to demonstrate good practices in mainstreaming gender aspects through its activities, wherever possible, and avoid negative impacts on people, due to their gender. Consequently, gender dimensions will be considered throughout the whole project. 6 UNIDO is utilizing the dual or twin approach for promoting gender equality and women’s empowerment. This dual track approach could be adapted for projects targeting migration issues allowing UNIDO to ensure that the project activities are within the mandate, but also acknowledge the ways in which UNIDO’s initiatives could impact gender dimensions of migration. The UNIDO Gender Strategy also includes a set of indicators and standard evaluative practices to ensure that programs are gender mainstreamed, even if they are not targeting issues directly related to women’s empowerment.

B. UNIDO APPROACH Human security and a human rights-based approach to industrialization have special prominence in UNIDO’s programmatic activities in light of its ISID mandate, with a special focus on economic recovery in post-crisis situations. One way UNIDO focuses on human security and post- crisis rehabilitation is by raising skills for greater (self-) employability and restoring productive capacities. In doing so, UNIDO’s approach is to provide training on how to tap market potential through improving technical, and management skills of Afghan refugees in settlements to promote more sustainable livelihoods for their community, while simultaneously doing the enhancement of infrastructural requirements aligned with needs of this vulnerable group through an inclusive and sustainable industrial development specialized view. UNIDO’s Clean Energy for Migrants (CE4M) strategic approach is based on the premise that access to modern and clean energy can enhance productive capacities and create job opportunities in communities

6 UNIDO (2015)

16 of origin, transit and destination. Particularly in camp contexts, providers of access to energy services often lack coordination which can lead to inefficient, emission intensive, costly and scattered access. In response to this, UNIDO is currently developing a program centered on clean energy and migration known as Clean Energy for Migrants (CE4M). The program currently envisages interventions in four areas: i) addressing drivers of migration, ii) assisting migrants in transit, iii) developing skills for the future; and iv) forging strategic partnerships. A non-exhaustive list of possible activities includes: • Understanding the impact of interventions designed to promote renewable energy, energy efficient and waste to energy technologies and to scale up local energy markets on mobility. • Designing methodologies to collect data and analyze energy use and consumption patterns in refugee camps and informal settlements to develop more sustainable solutions regarding energy access in camp settings. • Identifying suitable energy services, technologies and practices for meeting basic needs, undertaking value chain approaches and promoting capacity building activities • Documenting good practices for learning and replication; • Creating partnerships and networks between countries, development and finance institutions, multi / bilateral partners, civil society and the private sector to scale up these good practices; Related to these efforts, on 9 May 2017, as part of the Vienna Energy Forum, a side event was held entitled “Clean Energy for Migrants and Vulnerable Groups.” The panel is co-hosted by UNIDO and EUEI- PDF, featured panelists from ICMPD, UNHCR, IOM, and Practical Action. The objective of the panel was to explore the possibilities of “new and innovative mechanisms for meeting the energy needs of migrants, refugees and vulnerable groups on a sustainable basis… to help ensure that they are able to sustain their daily lives as well as prepare for a better future.” The importance of partnerships, particularly with the private sector, as well as a desire for interventions to have a long-term transformative impact were the key points of convergence among participants at the event. These are areas which closely align with UNIDO’s mandate and draw on UNIDO’s comparative advantage. The development of sustainable and resilient cities and communities requires an integrated approach in planning and management which is based on a holistic view of its social development, economic development, environmental management (at the local, national and global levels), governance components, as well as increasing cities’ ability to better respond and adapt to the potential stresses and challenges of increasing energy scarcity, climate change, and population change. It goes beyond the drafting of physical plans and entails the coordination of objectives and programs among different city and community stakeholders (e.g., citizens, government and the business sector), as well as the development of linkages between and within socio-economic sectors and activities. In economic terms, the integrated approach tries to improve synergies and efficiencies among activities such as infrastructure development, energy consumption, environmental sustainability and human health. As a lead agency in the implementation of SDG 9 on Industry, Innovation and Infrastructure, UNIDO’s offerings have been framed as three pillars around these three components within an urban or settlement context. These three pillars should not be seen as mutually exclusive but as interconnected.

Building sustainable and resilient cities that face additional stressed infrastructure through refugee appearance requires investment in (a) renewable energy sources, (b) efficiency in the use of water and electricity, (c) design and implementation of compact cities, (d) retrofitting of buildings and increase of green areas, (e) fast, reliable and affordable public transportation and (f) improved waste and recycling systems. Cities especially in developing and emerging economies face the challenges in securing the necessary resources to invest into the stressed infrastructure. Therefore, incentives to create decent employment for large urban populations – most notably vulnerable groups including refugees - that are underemployed and have limited access to good housing conditions, clean water, sanitation, drainage and schools, is necessary.

The proposed project is planned to be executed in close collaboration with BAFIA and UNHCR, as well as the private sector and other partners, in order to maximize the project’s impact and achieve mutual benefits within the target region (see Chapter 1.2.5. for more details). Furthermore, close dialogue, inclusion and capacity building activities for local stakeholder are an integral part of the project strategy.

Project rationale The project’s overall outcome will be to improve the livelihoods of refugees in Afghan refugee settlements in Iran. The key output of the project will be sustainable low-carbon infrastructure and strengthened capacity for income generation in the refugee settlements. The infrastructure in the refugee settlements will be improved through sustainable low-carbon infrastructure, and will particularly focus on sustainable energy provision, waste, water and energy management in selected settlements through technology investment guided by the detailed baseline assessment in the inception phase. Resilient low-carbon infrastructure including energy generation, mobility concepts and waste to energy technologies will be deployed to reduce carbon footprints and improve recycling of waste in the settlements and their connection to urban areas. Such key infrastructure will be improved in up to five settlements through sustainable and resilient pilot projects in target sites. The identified buildings and facilities suitable for a technology intervention will be prioritized, followed by on site audits, feasibility studies and an implementation plan. Such climate-smart planning will enable the local authorities to select and prioritize more resilient, low carbon infrastructure for additional investment. In parallel, the livelihoods for refugees will be improved through the creation of job opportunities in the field of waste and clean energy sector for refugees. Refugees will be empowered and prepared for a sustainable future by building their capacities and skills in operating and maintaining clean energy systems. This will be achieved through a targeted training program for refugees with the suitable professional and academic background. The training programs will be designed as demand-driven and relevant to the needs of the industrial, agro-industrial sectors in Iran, thus maximizing employment possibilities. Empowering refugees with appropriate skills and tools at different levels (incl. managers, operators or entrepreneurs) would open new job opportunities to join clean energy industries and service companies.

Having access to more job opportunities in the clean energy sector would greatly facilitate their early settlement and accelerate their integration into the new environment. The project’s objective will be achieved through the following sets of activities, as explained below: Activity 1: Inception Phase completed (Needs assessment of refugee settlements) During the inception phase of the project, stakeholder consultations will be completed with relevant national authorities such as BAFIA, refugee settlement authorities, Ministry of Interior and other ministries in order to fine-tune the project’s activities, partners and modalities of implementation. The project will carry out an energy analysis of the main energy needs in each of the pilot settlements; the amount and type of waste will be mapped in three settlements in order to identify potentially recyclable and biodegradable materials together with the collection and sorting method. Energy and water savings opportunities will be identified in five settlements through site audits. Audits and pre-feasibility studies will assess the possibility of implementing waste to energy plant (such as a biogas facility) or composting from food/agricultural waste in one of the selected settlements (most promising is Markazi province as many households in refugee settlement are involved in agriculture farming and livestock). Activity 2: Sustainable technologies implemented to improve low-carbon infrastructure (such as energy, waste and water management, mobility) in the settlements The project will conduct feasibility studies on low-carbon technology interventions (such as solar thermal, solar PV, energy efficiency or other sustainable energy) and implement infrastructure solutions in at least 3 settlements through best practice technology demonstration. Guided by the baseline assessment and feasibility studies, a waste management unit may be installed as a demonstration project in one of the settlements. The selection of a waste management unit will be based on the most suitable technology solutions for recyclable, biodegradable wastes including:  composting plant  collection and sorting system of recyclable waste such as plastics  alternatively, a waste-to-energy system (small biogas unit) Furthermore, climate risks will be integrated in local settlement developments plans of five settlements Activity 3: Refugees’ vocational skills on sustainable technologies improved A tailored training and capacity building program will be developed for refugees on sustainable technologies and business models including waste recycling/upcycling methods; with workshops tailored for women participation. Refugees with electrical/electronical or relevant background will be trained in solar PV installation and maintenance where solar PV projects have been installed. The project will provide training and capacity building on viable business models and marketing of end-products (both to local market and larger markets through partner organizations or intermediary actors) and entrepreneurial opportunities on sustainable waste management and waste to energy practices principles with respect to labor laws and child protection. Special attention will be given to the potentials of the energy-women nexus, where women’s empowerment and accelerating clean energy solutions can become mutually reinforcing goals.

Activity 4: Monitoring and Evaluation Project activities and results are monitored and reported throughout the project duration, while the final evaluation of the project will be conducted by an independent third party. Formal monitoring and evaluation (M&E) will comply with the rules and regulations governing the M&E of UNIDO technical cooperation projects, including the UNIDO Evaluation Policy and the Guidelines for Technical Cooperation, both in their respective current versions.

Description of project activities

1.1 Overall needs assessments on energy and waste management and data analysis in five settlements The activities under this component aim to identify and benchmark suitable energy services, technologies and practices for meeting refugees’ needs by collecting data and undertaking analysis on energy use, consumption patterns and generated waste. These 4 main technical assistance activities will focus on 2 key areas: Sustainable Energy:  Energy audits conducted in five settlements  Pre-feasibility studies of sustainable energy infrastructure applications in at least three settlements Waste Management:  Waste generation and composition analyzed in five settlements and potentially recyclable and biodegradable materials identified  Preparing waste management action plans for the settlements including business plans towards income generation for refugees In addition, the assessment will consider the potential for mobility and/or water-related technology interventions in the settlements. This analysis will be accompanied by a socio-economic analysis, the results of which will feed into further steps to be taken towards the implementation plan of the technology interventions and the training and capacity building programs. 2.1 Feasibility studies on low-carbon infrastructure applications in at least three settlements and at least one business plan on waste management infrastructure Based on the need assessment studies, stakeholder consultation, energy audits and pre-feasibility studies and business models, feasibility studies on the identified infrastructure investments (such as renewable energy, energy efficiency or other low-carbon infrastructure) will be developed. Terms of references of technical design will be prepared. Technology options include but are not limited to:

 Photovoltaic panels  Solar thermal systems for water heating and heating  Composting of kitchen/food waste to produce valuable organic fertilizer for income generation, or for agricultural purposes  Collection/sorting center for recyclable waste such as plastics, metals, paper  Small biogas unit to produce electricity/heat from food/agricultural waste  Energy efficiency measures  Clean cook-stoves

 Water treatment  Innovative mobility solutions

2.2 Installation of sustainable low-carbon infrastructure (energy / waste / other) in the settlements Based on the technical design of the feasibility studies and business plans, renewable energy, energy efficiency or other low-carbon infrastructure applications in at least three settlements will be implemented. If confirmed by the results of the feasibility study, one sustainable waste management system will be installed. 3.1 Implementing waste management training programs for refugees At least two waste management training programs will be implemented to support creation of job opportunities and income generation. 3.2 Conduct trainings on the solar system maintenance for refugees with technical background Conduct trainings on the solar system maintenance for refugees with relevant technical background in at least three settlements where solar energy projects have been installed. 3.3 Capacity building and partnership towards job creation and action plan development for women's and youth employment The following activities are envisaged:  Trainings on entrepreneurship and start-up development in clean technologies for refugees and key governmental stakeholders. Capacity building on entrepreneurship, principles of product innovations, development start-up in clean-tech sector for refugees and key governmental stakeholders  Partnership, communication and network platform in Iran established to link qualified job seekers and private sector companies towards employment creation.  2 action plans developed for refugee women’s and youth employment with respect to national/international labor laws and child protection policies (e.g. Article 19 of the UN Convention on the Rights of the Child).  Project activities and results are promoted and project visibility increased through communication tools (short videos, flyers, social media etc.). Other supporting activities will include:  Facilitate frameworks for integration of refugees into job opportunities  Settlement authorities will be trained to further continue training programs, ensuring sustainability of training programs  Certification scheme upon completion of trainings will be discussed with relevant government agencies  To the extent possible, the project will be connected to similar initiatives and networks within the region to create partnerships between countries, development and finance institutions, multi / bilateral partners, civil society and the private sector.

The activities will be fine-tuned to reflect local priorities and site specifics. 4.1 Periodic monitoring of project activities and final evaluation The overall objective of the monitoring and evaluation process is to ensure successful implementation of the project by:  Tracking and reviewing project activities execution and actual accomplishments

 Leading the project processes so that the implementation team can take early corrective action if performance deviates significantly from original plans  Adjust and update project strategy and implementation plan to reflect possible changes on the ground, results achieved and corrective actions taken  Ensure linkages and harmonization of project activities with that of other related projects at national, regional and global levels  Documenting and sharing of good practices for learning and replication  Periodic monitoring of project implementation as per UNIDO guidelines  Monitoring and evaluation of gender and youth impact  Final evaluation completed A monitoring plan, for tracking and reporting on project time-bound milestones and accomplishments, will be prepared by UNIDO in collaboration with the Project Management Unit (PMU) and project partners, at the beginning of project implementation and then periodically updated. By making reference to the impact and performance indicators defined in the Project Results Framework, the monitoring plan will track, report on and review project activities and accomplishments. Terminal independent evaluation will be carried out at a sufficient time before the completion of the project,. UNIDO will make arrangements for the terminal independent evaluation of the project. The UNIDO Evaluation Group will then manage the terminal evaluation in close consultation with the project manager. All monitoring and evaluation documents such as; final evaluation report and thematic evaluations, capacity needs assessment as well as publications/reports on the project will include gender and youth dimensions. Please see Annex 3. Reporting Time Table for forecasted submission dates of project reports. The annual project reports will include financial reporting.

Operational Plan

Project Visibility and Public Relations Plan The project will ensure that communication reaches the target groups of the project while raising awareness of the existence and impact of the project. The key personnel from city administrations and pilot municipalities will be informed on the project’s services, the implementation process and its objectives. National and international communities will be provided with relevant media stories, social media, direct communication tools, conferences and other relevant tools. Communication Tools:  Information material: project leaflets, banners and flyers will be prepared.  Promotion videos: The project will produce short videos from the project sites, including interviews with the refugees to promote the activities. The interviews will be used for monitoring and evaluation of the project.  Websites and Social Media: Project results will be promoted at UNIDO website, settlement authorities’ websites (if available) and websites of municipalities as well as social media accounts (e.g. Twitter, Facebook).  Press releases: The project will try to reach out to relevant national, local media where project activities are implemented to promote the major project achievements. B1. Rationale Like most refugee populations within the MENA and Middle East region, the refugees in Iran are facing needs in all basic humanitarian areas. Since the government of Iran has steadily increased its efforts to achieve betterment (especially in healthcare and education) for the refugee population throughout the past years, this momentum should be used to extend the initiative towards other important areas, such as infrastructure development and maintenance as well as creation of sustainable job and working

23 opportunities in order to improve refugees’ livelihood in Iran and also support local industrial development. Besides the national level benefits, the implementation of this project promotes regional and cross border human security by creating resilient livelihood and empowering Afghan refugees especially youth and women residing in the selected settlements as well as the hosting community. Promoting human security of refugee communities will also help to increase regional and cross-border stability which is necessary for voluntary repatriation of refugees to their home countries. UNIDO has been assisting not only Iran but also other countries that have been affected by the refugee crisis in the region. This includes implementation of technical assistance projects in several conflict- affected countries and situations, targeting refugees, IDPs as well as their host communities in various parts of the world. The proposed project has been built on the experiences gained and lessons learned from earlier UNIDO projects and developed through in-depth discussions with the Iranian Government. B2. Comparative Advantage Since UNIDO mostly has project-based collaborations through its inclusive and sustainable industrial development approach, the organization has a diverse range of activities in various sectors which led this specialized agency to access people with required expertise based on their experience relating to UNIDO main activities and requirements for technical assistance projects. In the last few years, the interventions of international organizations have focused primarily on traditional humanitarian responses while industrial engagement and development have assumed a lower priority. However, there is a need to increase the level of infrastructural support available to host communities. In this respect, UNIDO has implemented technical assistance projects in numerous conflict-affected countries and situations, targeting refugees, IDPs as well as their host communities, in various parts of the world. UNIDO has extensive experience in assisting both in the development of the industrial sector and the establishment of rural/urban industrial associations and production groups. UNIDO has extensive experience working in conflict and post-conflict areas and has successfully implemented several industry support projects, most notably in Afghanistan, Iran, Iraq, Lebanon, Sudan, Turkey etc. Thus, UNIDO has the necessary experience and technical knowledge to provide infrastructural capacity as well as sustainable training skills and support to target beneficiaries and other stakeholders. As a partner agency to the SSAR in Iran which has signed a tripartite agreement with Government of Iran and UNHCR, UNIDO has implemented several projects to carry out activities to develop and sustain self- reliance, in collaboration with Government of Iran (BAFIA) and UNHCR. In 2014, UNIDO has implemented two projects within the SSAR framework to:

 Enhance the opportunities of Afghan refugees for reintegration in Afghanistan by improving their livelihood opportunities through the development of the hand-woven carpet sector val ue chain.  Enhance the opportunities of Afghan refugees for reintegration in Afghanistan by improving their livelihood opportunities through the development of the garment sector value chain.

UNIDO projects in the affected region contribute to the restoration of livelihoods devastated by conflicts and natural disasters by creating economic opportunities for the affected populations – refugees, internally displaced persons (IDPs), returnees, demilitarized groups or simply civilians striving to rebuild their livelihoods. Post-crisis assistance of the project includes rehabilitation of damaged industrial infrastructure, and employment creation and community stabilization. In the context of the Syria crisis, UNIDO is helping to mitigate the impact of the crisis in the region by strengthening the resilience of neighboring host communities, and addressing unprecedented migration by creating jobs and income in these communities. UNIDO has been working with the private sector to create development solutions in crisis-affected situations, and more are expected in the coming years.

B3. Inception Phase The project will start with the Inception Phase (4-6 months), which will focus on: - Stakeholder consultations - Need assessment and pre-feasibility studies on waste and energy interventions - Data collection and analysis (including vulnerable groups) - Detailed baseline assessment - Refinement of the actions for each of the target settlements The scope of activities and budget breakdown will be fine-tuned after the Inception Phase. During the project inception phase, detailed need assessment studies providing the technical and economic analysis of the project will be conducted. The studies will consider and propose options for the community engagement in running and maintenance of the technologies installed. The project will carry out an energy analysis of the main energy needs in each of the settlements; the amount and type of waste will be mapped in three settlements in order to identify potentially recyclable materials together with the collection and sorting method. Energy and water savings opportunities are identified in five settlements through need assessment and site audits. Audits and pre-feasibility studies will assess the possibility of implementing waste to energy plant (biogas facility) or composting from food/agricultural waste in one of the selected settlements (Most likely in Markazi province as many households in refugee settlement are involved in agriculture farming and livestock). In addition, climate risks will be analyzed to be integrated in local settlement developments plans of five settlements (if any). Furthermore, water saving opportunities will be identified in refugee settlements. B4. Sustainability Strategy The design of the project will include the component of an exit strategy of the UNIDO intervention to ensure long term viability of the transferred technology, products, services and systems beyond the immediate project timeline. Sustainability strategies of the project will be developed during the inception phase and will be tailored to the carefully selected sites based on their economic and financial feasibility as well as applicability to productive uses. Since the UNIDO approach is promoting inclusive, sustainable industrial development in all projects and activities around the world, the project will be implemented aligned with UNIDO’s interventions for SDG developments. The proposed project will incorporate the three programmatic fields mentioned in Chapter 1.2.1 in order to ensure a sustainable holistic approach:

 Creating shared prosperity: Advancing poverty eradication and inclusiveness, building productive capacities in an inclusive manner, and providing more opportunities for all women and men as well as across social groups, also through partnerships with all relevant stakeholders involved in industrialization processes;

 Advancing economic competitiveness: Advancing rapid economic and industrial growth, building trade capacities in industries, and ensuring that all can benefit from international trade and technological progress by applying modern industrial policies and complying with global standards and norms;  Safeguarding the environment: Advancing environmentally sustainable growth, building institutional capacities for greening industries through cleaner production technologies and resource efficiency methodologies, and creating green industries, including in fields of waste management and recycling. The project conducted UNIDO Environmental and Social Safeguard assessment. The proposed approach is envisaged to achieve quick impacts but also for medium- or long-term development gains such as capacity building aimed at maximizing impacts of this project on the beneficiaries while ensuring continuity of activities after the closure of the project.

B5. Gender Mainstreaming Strategy UNIDO recognizes that gender mainstreaming is a key strategy for achieving gender equality and the empowerment of women (GEEW) which are crucial for achieving a significant positive impact on sustained economic growth and inclusive industrial development, which are key drivers of poverty alleviation and social progress. The project aims to demonstrate good practices in mainstreaming gender aspects through its activities, wherever possible, and avoid negative impacts on people, due to their gender. Consequently, gender dimensions will be considered throughout the whole project. Guiding principle of the project will be to ensure that both women and men are provided equal opportunities to access, participate in and benefit from the project. Therefore the outcomes, outputs and activities are designed to meet the different needs and priorities of women and men. In practical terms:  Efforts will be made to promote equal participation of women and men in vocational trainings as participants and facilitators.  The other aspect within the strategy is job and business model creation for women. Two outputs of the project have women-relevant indicators. Please see the log-frame and outputs/activities section.  When data-collection and assessments are conducted during inception phase of the project, gender dimensions will be considered. This can include sex-disaggregated data collection, performing gender/social analysis. The consultant company/expert groups performing data- collection and need assessments will be obliged to have at least one gender/social expert in their team.  Gender-sensitive recruitment will be practiced at all levels where possible, especially in selection of project staff. Gender responsive TORs will be used to mainstream gender in the activities and

tasks of consultants and experts. In cases where the project does not have direct influence, gender sensitive recruitment will be encouraged. In cases where the project is not expected to affect women and men differently, gender-sensitive recruitment will still be encouraged to ensure diversity in team composition. Furthermore, whenever possible existing staff will be trained and their awareness raised regarding gender issues.  All decision-making processes will consider gender dimensions. At project management level, Project Steering Committee meetings will invite observers to ensure that gender dimensions are represented, while also the gender balanced composition in the project committee will be emphasized. For this purpose, women’s groups and associations, gender experts and /or other stakeholder concerned with gender and energy will be consulted.  All training materials and knowledge management activities will be gender mainstreamed. This includes integration of gender dimensions into publications, for instance presenting sex- disaggregated data, gender-energy nexus theory, and gender-sensitive language in publications, photos showing both women and men, and avoids presenting stereotypes, as well as assuring that women, men and the youth have access to and benefit from the knowledge created.

B6. Environmental and Social Assessment The project is not expected to cause any environmental harm in the region which is to be selected, nor will the implementation of project activities lead to temporal or permanent displacement of local inhabitants living within and around implementation site. UNIDO Environmental and Social screening template has been completed and the project categorized as Category B.

An Environment and Social Management Plan (ESMP) will be completed in the Inception Phase (Need assessment of refugees) of the project, as per UNIDO and donor requirements based on stakeholder consultation and social analysis of refugee settlements with special focus on vulnerable groups. The ESMP will give particular attention to the relevant guidelines in UNIDO Environmental and Social Safeguards Policies and Procedures (ESSPP) including ‘Vulnerability and community impacts’ and ‘Information Disclosure and Stakeholder Consultation’. Relevant UNIDO operational safeguards specifically OS8, OS9 and O1O will be considered in the preparation stage (Terms of Reference) of the project activity 2.1; ‘Feasibility studies on low-carbon infrastructure’ which includes social and environmental impact analysis as well (see Log frame below).

C. THE PROJECT

C1. Project Logical Framework

Intervention logic Objectively verifiable indicators Sources of verification Assumptions

Development goal/impact Refugees in settlements Sustainable infrastructure in minimum 3 Final project evaluation report benefit from investment in settlements in place through technology Sustainable refugee settlements sustainable infrastructure innovation in place

Outcome(s)/immediate Refugees in settlements have Infrastructure improvements in at least 3 Draft final report Settlements are in dire objective(s)/ access to sustainable settlements need and have potential infrastructure Progress monitoring reports for infrastructure Improved livelihoods of refugees investments including on Training evaluation survey in Afghan refugee settlements Refugees are empowered energy access and waste through skill development and Refugees capacities enhanced towards management training income and jobs creation Outputs (results) Low-carbon infrastructure 3-4 low-carbon infrastructure Technology commissioning solutions are implemented technologies implemented reports Refugees are in need and Sustainable low-carbon through innovative open for vocational infrastructure and strengthened technologies Approximately 1000 refugees and key Training reports trainings and new job capacity for income generation stakeholders trained opportunities in Afghan refugee settlements Capacity of refugees 60 jobs for refugees created List of participants strengthened through

trainings; refugees linked with

job opportunities

Activities 1.1. Overall need assessments 5 energy audits 5 energy audit reports Detailed information on on energy and waste 5 waste analysis 5 waste analysis reports the current infrastructure - Need assessment of refugees management and data The data on project beneficiaries (sex- in settlements (energy, (Inception Phase) analysis in five settlements disaggregated) Report on the project waste streams etc.) and and stakeholder consultation beneficiaries (sex-disaggregated, beneficiaries are (incl. gender dimensions) focus on vulnerable groups) available for collection M&E plan prepared and analysis M&E plan Social and environmental impact assessment Social and environmental impact assessment report Stakeholder consultations conducted Stakeholders meeting minutes - Sustainable technologies 2.1. Feasibility studies on low- 3 feasibility studies on energy 3 feasibility study reports on There is demand and implemented to improve low- carbon infrastructure in at technologies energy technologies (incl. potential for investments carbon infrastructure (such as least three settlements and at 1 business plan on waste technologies environmental and social impact in sustainable energy, waste and water least one business plan on analysis) infrastructure management, mobility) in the waste management 1 business plan on waste interventions in the settlements infrastructure technologies (incl. refugees settlements environmental and social impact analysis)

3 Sustainable energy systems 3 Sustainable energy system 2.2. Installation of sustainable implemented commissioning report low-carbon infrastructure 1 Sustainable waste or waste-to-energy 1 Sustainable waste or waste-to- (energy / waste / other) in the system implemented (depending on the energy system commissioning settlements outcome of the feasibility study) report (depending on the outcome of the feasibility study) - Refugees’ vocational skills on 3.1. Implementing waste At least 2 waste management training Training reports Refugees are interested sustainable technologies management training programs implemented in participating improved programs 150 Refugees (40% women) trained on Progress monitoring reports vocational trainings and waste management network platform 3.2. Conduct trainings on the List of participants solar system maintenance for Educational material

refugees with technical 60 jobs created (at least 20 jobs for 1 partnership and network background women) (sex-disaggregated) directly and platform indirectly 3.3. Capacity building and At least 3 solar system maintenance 1 recommendation report for partnership towards job training programs implemented the action plan for women creation and action plan 150 Refugees trained (30% women) on employment development for women's renewable energy technologies and youth employment At least 10 workshops conducted 1 recommendation report for 700 refugees and key stakeholders (400 the action plan for women women) trained employment

1 Partnership and network platform Communication tools (short established videos, flyers, social media etc.).

At least 2 action plans for women and youth employment

Project promoted and visibility increased - Monitoring and evaluation 4.1. Periodic monitoring of Regularly monitored and reported Project monitoring reports Project monitored and project activities and final Final evaluation Final evaluation evaluated as per UNIDO evaluation and donor’s requirements

C2. Risk & Mitigation Measures Result Assumptions & Risks isks Project element Risk Description Risk Type Risk Level Assumptions Mitigation Measures

Operational Limited local cash flow operation Market Medium Local cash flow operations in I.R Iran may be In terms of slowdown of project activities, the PSC will more challenging than in other countries. approve the recommended actions from UNIDO side Some activities may delay due to inability of presented on the operational modalities related to the or limited payment in the local currency. procurement of goods and services.

Operational Limited energy potential of generated Technical Medium The amount and energy potential of waste in The project will conduct pre-feasibility (site audits) and waste and energy demand of the settlements is not technically feasible for feasibility studies to evaluate economics and energetic settlements pilot project investments such as waste-to- potential of investments energy applications

Operational Settlement staff and refugees are not Beneficiaries Low Lack of or low interest to participate in Informative meetings and promotion activities will be willing to participate to the trainings vocational trainings. Lack of refugees with conducted for local staff and refugee to participate basic technical background (for PV trainings. The potential benefits of occupational maintenance trainings) trainings will be emphasized in the communication

Limited space for installation of Physical Technical Low Physical space is not available for installation Feasibility study will include physical availability of the technologies of technical equipment such as solar energy premises, in terms of solar energy systems, rooftops systems will be used to create space

Low interest from the The private sector will be informed through UNIDO’s Technology technology/service providers Market Low The technology/service provider companies existing communication channels as well as local transfer are not interested/aware of project channels such as chambers of industry, trade, procurement activities commerce

The project will collaborate with local authorities and Operational Socio-economic and communication Beneficiaries Low Communication with the settlement staff work with relevant experts and barriers and refugees are difficult interpreting/translation services wherever necessary

Commercial viability and sustainability Low-carbon infrastructure and the The project will conduct pre-feasibility and business Operational Technical Low of technology applications renewable energy system maintenance plans to evaluate the economic potential of businesses in these communities are not investments during inception phase as well as full scale economically viable feasibility studies for selected investment projects

C3. Institutional Arrangements and Coordination Mechanism UNIDO is the implementing agency for the proposed project within the framework of SSAR. UNIDO will be responsible for the implementation of the project, the delivery of the planned outputs, and the achievement of the expected outcomes. UNIDO will oversee the Project Management Unit (PMU), manage the overall project budget, prepare financial and progress reports for the donor and the Project Steering Committee (PSC) in a timely manner, and coordinate the budgeted M&E plan. Furthermore, UNIDO will support the PSC and the Project Management Unit (PMU) to coordinate and network with other related initiatives and stakeholders in Iran. UNIDO will appoint a project coordinator and mobilize additional technical, administrative and financial services as needed through UNIDO Headquarters and the UNIDO Field Office in Tehran. The project will encourage youth and women participants to ensure their active involvement during the implementation phase. UNIDO/PTC/ENE is the primary implementing department in charge of overall project coordination in close cooperation with UNIDO Country Office and other UNIDO Departments. UNIDO may choose to engage Korean experts to assist project implementation where appropriate. Project Steering Committee The Project Steering Committee (PSC) will be established during the inception phase to provide strategic guidance on the project execution and to facilitate the coordination of various stakeholders, including BAFIA, Ministry of Industry, Mine and Trade, energy service providers, and industrial associations and financial institutions. To ensure sustainability, strategic relevance and effective national coordination, PSC members will be chosen from key governmental organizations and associations. The PSC will meet every year. The roles of the PSC include:  Review and approve project plans and progress reports  Provide strategic advice on work plans  Mobilize relevant partners and stakeholders  Provide recommendations to the project activities and new opportunities and priorities not anticipated in the original project document

In terms of slowdown of project activities due to limited cash-flow in local currency; 1. the recommendations (based on internal review with relevant UNIDO departments; FIN, PRO and PTC on alternative solutions and how to implement them) will be brought up as a discussion point from UNIDO side to the PSC meetings, 2. the PSC will approve the recommended actions presented on the operational modalities related to the procurement of goods and services. Project Management Unit The Project Management Unit (PMU) will consist of a full time National Project Coordinator (NPC), project assistant, and short-term national and international experts whenever required. UNIDO will hire national and international experts on energy, waste management and social aspects for the effective implementation of the project activities, as required. The experts will provide technical inputs to the various project outputs. Over the years, UNIDO has a large pool of international/national experts with variety of skills, obtained through previous projects. UNIDO kindly welcomes any suggestions from the Government of Korea on the issue.

The PMU will manage the project execution on a day-to-day basis. The unit will be headed by the NPC who will be the secretary of the PSC. The PMU team will work closely with direct beneficiaries and key stakeholders, including governmental authorities (such as BAFIA and Ministry of Industry, Mine and Trade) and refugee associations and other stakeholders. The project management team will carry out activities under the guidance of UNIDO, report to the Project Steering Committee, and work in close coordination with the executing partner’s technical staff. UNIDO country office in Iran will be in regular contact with the Republic of Korea’s Embassy to ensure the delivery of services as well as the visibility of the achievements.

Institutional Arrangement Chart

Gov. of Iran/UNIDO

Project Steering Committee (PSC): Co-Chairs: BAFIA and Ministry of Industry, Mine Project Management Unit (PMU) and Trade - Project Coordinator - Technical and Social Experts Members: Representatives from:  Other relevant Beneficiaries: Other Project ministries • Refugees Partners:  Government of • Settlement • Private sector South Korea staff technology/serv  UNIDO • Local ice providers authorities • Local SMEs

D. BUDGET ITEMS

D1. Counterpart inputs In order to guarantee effectiveness, sustainability, buy-in and ownership of the project, UNIDO will facilitate the involvement of central and local authorities of the Government of Iran I.R, as well as that of other relevant national counterparts, in the project. During the inception phase, the specific inputs and roles of counterparts will be detailed and adjusted. BAFIA: The project will be implemented in close collaboration and consultation with BAFIA under the Ministry of Interior which is the authority in charge of reviewing the refugees’ status and managing the refugee settlements. BAFIA is envisaged to have the following key roles: provision of in-kind support for overall project coordination, inter-ministry and refugee settlement communication facilitation, nomination of focal point for the proposed project.

Refugee Settlement Authorities: Settlement authorities are expected to have following key roles: provision local expertise for day-to-day site-level coordination, management, supervision and facilitation for local beneficiary to ensure local institutional mechanism for beneficiary: i.e. selection of pilot sites, installation/demonstration of the systems (including receive/storage of equipment, inspection, permits, authorization), training activities at the site (O&M, vocational etc.), public awareness raising (e.g. policy interpretations, advocacy, lessons learned), regional policy promotion and government funding, and local supervision and management. Furthermore, the project would welcome the nomination of one focal point for overall supervision, quality assurance, policy action and one professional for day-by-day site-level management for the beneficiary for smooth demonstration and project sustainability. Ministry of Industry, Mine and Trade: Provision of providing consultations on targeted industrial sectors for job creation for refugees, relevant policies and project coordination.

UNHCR: The project will be in close collaboration with United Nations High Commissary for Refugees, partner agency to the SSAR.

NGOs and women associations: Provision of expertise for local business promotion and job opportunity including the involvement of women; involvement of associations and NGOs such as the Association for Protection of Afghan Women and Children (HAMI) that promote gender equality is envisaged when possible and relevant.

Local training institutions and universities: Provision of expertise on related technology and support to develop/organize training program(s) together with technology providers and partner institutions for several local target groups such as community people, technicians, entrepreneurs, and engineering students; Provision of academic human resource such as students and lecturers/researchers as well as research facilities during system design and demonstration, if necessary, which can be utilized as a part of on-the- job training; Provision of expert support on innovative self-sustaining mechanism of the project and assistance to understand innovative business development options Partnership with the Donor:

The Government of Republic of Korea joined UNIDO as an important member state in 1985. Since 1985, UNIDO and the Republic of Korea have partnered in support of several sustainable infrastructural programs for poverty reduction and environmental safeguarding initiatives. In March 2011, UNIDO and the Republic of Korea’s Ministry of Knowledge Economy agreed to strengthen cooperation and identify joint projects and activities in the fields of green growth technology and low-

35 carbon industrial development. Joint research on the impact of green industrial investment on global employment was carried out by UNIDO and the Korea Global Green Growth Institute. UNIDO is also working with the Korea Research Institute of Standards and Science (KRISS) in the field of metrology. In 1987, the Republic of Korea established ITPO Korea as part of the UNIDO ITPO network. The role of ITPO Korea is to promote investment and technology transfer from Korea to developing countries with a special focus on green technology for renewable energy. To achieve this, the office implements a comprehensive package of different programs and projects in cooperation with UNIDO. First of all, it organizes investment missions for potential Korean investor companies to assist them in identifying potentials for industrial partnership with local counterparts in developing countries. For example, currently, ITPO Korea is developing a project for constructing a biogas plant using municipal waste in Mozambique. On 25 September 2018, the Ambassador of the Republic of Korea Mr. Ryu, Jeong-Hyun had a meeting with the representative of UNIDO in Iran, Ms. Maryam Javan Shahraki. The priorities of the Government of Korea and the main mandate and activities of UNIDO in Iran were discussed in that meeting. The Ambassador of Korea emphasized on the importance of sustainable interventions in support of vulnerable social groups in Iran. A second fruitful meeting was held on 15 January 2019 in which the both sides focused on the possibility of a sustainable infrastructural intervention by UNIDO for the most vulnerable groups who are affected by the current economic situation in Iran. Following the above-mentioned meetings, UNIDO office in Tehran was kindly offered by the embassy to submit a draft proposal on the discussed subject for Afghan Refugees in Iran. In this connection, the present proposal is submitted to the embassy of the Republic of Korea on 6 February 2019. D2. UNIDO Inputs UNIDO will provide inputs in terms of project management expertise, staff, experience, facilities and know-how: 1. International staff The project will be managed by a UNIDO HQ-based Project Manager (PM). The PM together will be responsible for the general management and monitoring of the project, and reporting on the project performance. UNIDO staff members and consultants from PTC/ENE/ESI will be relied upon for the project activities. In addition, relevant PTC Departments could also be roped in for the delivery of the project contents. Short-term experts may be assigned based on the specific needs identified during the implementation.

2. National staff The Project Management Unit (PMU) will consist of a full time National Project Coordinator (NPC) and short-term experts as per required team setup for the effective project implementation. The PMU will be responsible for the coordination of all the project activities as described in the proposal. It shall have delegated responsibilities to liaise and maintain mutual collaboration between UNIDO and project partners towards achieving one goal as a team. The UNIDO Office in Iran will provide local

supervision and coordination with technical input by UNIDO Vienna Headquarters. The key role of PMU is as follows:  Local overall project coordination with stakeholders as per agreed project document/work plan;  Coordinating PSC meetings, trainings, workshops and missions;  Monitoring and reporting  Project visibility and advocacy The NPC shall be responsible for the day-to-day management of the project, monitoring and evaluation of project activities as per the project work plan which is to be developed, and reporting to the UNIDO PM and UNIDO UR in Iran. 3. Training Specific training for different topics will be prepared and conducted for the target groups. A training strategy and work plan will be formulated. This will take into consideration the result of previous surveys and feasibility studies, as well as consultations. Other unforeseen topics that will be deemed necessary during the inception phase will also be integrated in the program during implementation. Project implementation of advocacy, vocational and technical training programs are expected to be conducted by a group of national and international experts. Furthermore, in order to ensure sustainability of these training programs and render them practical a Train the Trainer methodology will be considered. This will ensure that the outputs will be multiplied; the language barrier will be overcome; and peer learning will be facilitated. 4. Equipment and supplies The necessary equipment for the project implementation will be purchased by the project. All procurement will be undertaken in full adherence to the UNIDO procurement rules and regulations.

E. BUDGET The project will be funded US$ 1,500,000 (incl. support cost and levy coordination fee) by Republic of Korea. The project follows the results-based management budget structure. In order to be able to respond to changing conditions and so as to ensure swift implementation, UNIDO may make budgetary adjustments, not foreseen in the project document, according to its rules and regulations. The budget breakdown may be fine-tuned following the results of the Inception Phase. Budget allocations based on UNIDO budget lines (US$) BL Description Year 1 Year 2 Year 3 Year 4 Total Outcome: Improved livelihoods of refugees in Afghan refugee settlements Output 1: Sustainable low-carbon infrastructure and strengthened capacity for income generation in Afghan refugee settlements 1100 International experts 15,000 20,000 20,000 20,000 75,000

1101 Technical services 1500 Project travel 10,000 10,000 5,000 5,000 30,000 1600 Staff travel 20,000 20,000 20,000 15,000 75,000 1700 National experts & admin staff 30,000 30,000 30,000 30,000 120,000 1701 National Technical support service 2100 Subcontracts 85,000 126,000 126,000 30,000 355,000 3000 In-service training, conferences, workshops 3500 International Meetings 4300 Premises 4500 Equipment - 220,000 329,291 60,000 609,291 5100 Miscellaneous Sub-Total Output 1 160,000 420,000 524,291 160,000 1,264,291 Independent mid-term and terminal evaluation: 1100 International evaluator 15,000 20,000 35,000 1101 Technical services 1500 Project staff travel 2,000 3,000 5,000 1700 National evaluator(s) 5,000 5,000 1701 National Technical support service 5100 Miscellaneous Sub-Total Evaluation - 22,000 - 28,000 50,000 Sub-total 160,000 442,000 524,291 188,000 1,314,291 Programme Support Cost (13%) 1 20,80060,000 57,460 68,158 24,440 170,858 Gross Total 180,800 499,460 592,449 212,440 1,485,149 180,800

The budget allocations based on project activities is shown in the table below:

Activity Budget Set of activities Activities Description of activities (US$) Budget (US$)

1. Need assessment of refugees 1.1. Overall need assessments on energy and waste management and data analysis in 200,000 200,000 (Inception Phase) five settlements and stakeholder consultation

2. Sustainable technologies 2.1. Feasibility studies on low-carbon infrastructure in at least three settlements and 150,000 implemented to improve low-carbon at least one business plan on waste management infrastructure infrastructure (such as energy, waste 759,291 and water management, mobility) in 2.2. Installation of sustainable low-carbon infrastructure (energy / waste / other) in 609,291 the settlements the settlements

3.1. Implementing training programs on low-carbon infrastructure including waste 60,000 management 3. Refugees’ vocational skills on 3.2. Conduct trainings on the renewable energy system maintenance for refugees 90,000 305,000 sustainable technologies improved with technical background 3.3. Capacity building and partnership towards job creation and action plan 155,000 development for women's and youth employment

4. Monitoring and evaluation 4.1. Periodic monitoring of project activities and final evaluation 50,000 50,000

1,314,291 Project activities total US$ 170,858 Programme Support Cost (13%) US$ 1,485,149 Gross Project Budget US$ For details, please see Annex 4. The breakdown of the project budgets

F. MONITORING, REPORTING AND EVALUATION

Monitoring, reporting and evaluation of the project will be carried out in accordance with established UNIDO Technical Cooperation (TC) guidelines and procedures. The overall objective of the monitoring, reporting and evaluation process is to ensure successful and quality implementation of the program by tracking and reviewing the progress and actual accomplishments as the program proceeds, so that the implementation team can take early corrective action if performance deviates significantly from original plans, adjust and update the work plan to reflect possible changes on the ground, results achieved and corrective actions taken; and inform stakeholders of the project process and achievements. The project manager and project team will be responsible for recording monthly progress on project activities and the measurement of outcome indicators. At the local level the project activities shall be monitored and supervised by UNIDO project team. After 18 months, a mid-term progress report will provide an assessment of progress for outcomes and outputs as stated in the Logical Framework, and as measured by the corresponding indicators, based on sex-disaggregated data. Collection of relevant data will be scheduled well in advance of the reporting deadlines so that the evaluation of indicators can be based on facts and as much as possible on independent sources. The conclusions and recommendations of the mid-term review will lead to follow- up action to be taken and any corrective action where necessary. An independent evaluation of the project in the form of a “terminal evaluation report” will be developed at its conclusion to comprehensively assess the results achieved. The terminal report will include assessments on efficiency, effectiveness, sustainability, relevance and impact as well as on environmental friendly approaches and gender sensitivity of the implementation to draw lessons learned. The terminal report will be submitted together with a financial report within six months after the project is declared “financially completed”7. An impact study will be carried out after the project’s closure to draw lessons for future programming for refugee-focused or similar interventions of UNIDO. The project structure will include a dedicated Monitoring and Evaluation component; all required monitoring and evaluation activities will be conducted in line with the Republic of Korea’s and UNIDO’s Evaluation policy, in order to ensure effective delivery of results, and apply adaptive management as interim results prescribe. During the inception phase, a detailed, budgeted M&E plan will be developed and documented in the inception report. Please see Annex 3. Reporting Time Table for forecasted submission dates of project reports. The annual project reports will include financial reporting.

7 The project is “financially completed” after clearing all project commitments and transferring/writing off the project assets.

G. PRIOR OBLIGATIONS AND PREREQUISITES There are no specific prior obligations or prerequisites that need to be met before project implementation can start. Most of the open questions with regard to target areas and beneficiaries will be covered during the inception phase through need assessment and pre-feasibility studies. Ownership of equipment, materials, supplies and all other property financed from this program shall vest in UNIDO. Unless otherwise provided in the Project Document, following operational completion of the Project, ownership of equipment, of materials and supplies, as well as other property necessary for operation of the Project, shall be transferred to the counterparts. H. LEGAL CONTEXT The present project is governed by the provisions of the basic terms and conditions governing UNIDO projects attached in Annex 5 of this project document.

ANNEX 1. Work Plan and Time Table

Years 2019 2020 2021 2022 Activities Description of Activities 3 4 1 2 3 4 1 2 3 4 1 2 Quarters Q Q Q Q Q Q Q Q Q Q Q Q 1. Overall need assessments on energy and waste management and data analysis in five settlements and stakeholder consultation* Feasibility studies on low-carbon infrastructure in at least three settlements and 2. at least one business plans on waste management infrastructure Installation of sustainable low-carbon infrastructure (energy / waste / other) in

the settlements Implementing waste management training programs Conduct trainings on the solar system maintenance for refugees with technical

3. background Capacity building and partnership towards job creation and action plan

development for women's and youth employment 4. Periodic monitoring of project activities and final evaluation* * Stakeholder consultation and monitoring activities will be conducted throughout the project duration. ** Light gray: soft activities, Dark gray: main activities. *** 3rd and 4th quarters of 2019 are foreseen to be the Inception Phase of the project.

ANNEX 2. Project Beneficiaries

Participants Activities Quantity (Indicative)* Beneficiaries Remarks 1. Need assessment of refugees (Inception Phase) 1.1. Overall need assessments on energy and waste management and data Refugees and 5 17920 analysis in five settlements and stakeholder consultation settlement authorities 2. Sustainable technologies implemented to improve low-carbon infrastructure (such as energy, waste and water management, mobility) in the settlements 2.1 Feasibility studies on low-carbon infrastructure in at least three settlements and at least one business plan on waste management 3-4 10000 Refugees infrastructure 2.2. Installation of sustainable low-carbon infrastructure (energy / waste / 3-4 10000 Refugees other) in the settlements 3. Refugees’ vocational skills on sustainable technologies improved 3.1. Implementing at least two training programs on low-carbon 2-4 150 Refugees infrastructure participants will depend on the 3.2. Conduct trainings on the renewable energy (e.g. solar) system 3-5 150 Refugees number of refugees maintenance for refugees with technical background with relevant background Refugees, settlement 3.3. Capacity building and partnership towards job creation and action plan 5 700 authorities and other development for women's and youth employment key stakeholders 4. Monitoring and evaluation 4.1. Periodic monitoring of project activities and final evaluation - - - * ‘Participants’ shows the indicative number of refugees directly benefitting from the project activities. The numbers of participants will be finalized after the Inception Phase based on the selected interventions and the number of refugees living in the settlements where infrastructure improvements will be implemented.

ANNEX 3. Reporting Time Table

2019 2020 2021 2022 Inception Phase Completion Report (Output 1.1.) 31.12.2019

Yearly Monitoring Reports 30.06.2020 30.06.2021

Final Evaluation Report 30.06.2022

Implementation Reports (if requested)

ANNEX 4. The breakdown costs of the project activities Cost per No of Sub-activity Activity Outcome Output Activities Description of Activities Sub-activities applicatio Sub-Total applications budget Total n Stakeholder consultations for refinement of project activities and confirmation of project execution roles Energy audits performed by expert groups / consultant Overall need assessments on company to assess the energy demands and consumption 5 25,000 125,000 1. Inception energy and waste management patterns of refugees in the five pilot settlements phase and data analysis in five Waste analysis studies performed by expert group / consultant 200,000 200,000 completed settlements and stakeholder company to identify the potential of recyclable and consultation biodegradable materials in the five pilot settlements Data collection by social experts on beneficiary refugees including breakdown of key vulnerable groups; gender, youth, 5 15,000 75,000 unemployed Feasibility studies (including terms of reference on technical Feasibility studies on sustainable design) on low-carbon infrastructure applications based on the 2. Sustainable energy applications in at least outcome of the need assessment in selected 3 settlements technologies three settlements and at least one Business plans (including terms of reference on technical 6 25,000 150,000 150,000 implemented to business plan on waste design) on sustainable waste management applications based improve energy management infrastructure on the outcome of the need assessment in selected 3 Sustainable 759,291 low-carbon and waste settlements management in Sustainable low-carbon infrastructure implemented in at least infrastructure 3 163,097 489,291 Improved and the selected Installation of sustainable low- 3 settlements livelihoods of strengthened settlements carbon infrastructure (energy / Sustainable waste management application (or equivalent 609,291 refugees in capacity for waste / other) in the settlements alternative) implemented in 1 settlement depending on the 1 120,000 120,000 Afghan refugee and income outcome of the business plan settlements generation in Implementing at least two training Implementing at least 2 training programs to support job Afghan programs on low-carbon creation (for instance on waste management) based on 2 30,000 60,000 60,000 refugee infrastructure assessed needs settlements Conduct trainings on the renewable Conduct trainings on the renewable energy (e.g. solar) system energy (e.g. solar) system maintenance for refugees with technical background in at least 3 30,000 90,000 90,000 maintenance for refugees with 3 settlements where solar energy projects have been installed. 3. Refugees’ technical background vocational skills 3 trainings on entrepreneurship and start-up development in on sustainable clean technologies for refugees and key governmental 3 25,000 75,000 305,000 technologies stakeholders Partnership, communication and network platform in Iran improved Capacity building and partnership established to link qualified job seekers and private sector 1 25,000 25,000 towards job creation and action companies. 155,000 plan development for women's and 2 action plans developed for refugee women’s and youth youth employment 2 15,000 30,000 employment Project activities and results are promoted and project visibility increased through communication tools (short videos, flyers, - 25,000 25,000 social media). 4. Monitoring Periodic monitoring of project Project activities and results are monitored and reported. Final - 50,000 50,000 50,000 50,000 and evaluation activities and final evaluation evaluation of the project conducted by independent third party Project Activities total 1,314,291 US$ Programme Support Cost (13%) 170,858 US$ Gross Project Budget 1,485,149 US$ 45

ANNEX 5. Basic Terms and Conditions Governing UNIDO Projects in the Islamic Republic of Iran

PROJECT TITLE: Developing Sustainable Settlements for Afghan Refugees in the Islamic Republic of Iran PROJECT NUMBER: 190041

BASIC TERMS AND CONDITIONS GOVERNING UNIDO PROJECTS IN THE ISLAMIC REPUBLIC OF IRAN8

I. IMPLEMENTATION OF THE PROJECT

1. The Government shall have overall responsibility for the Project, including responsibility for its implementation and the realization of its objectives, in accordance with the Project Document. 2. The Government and UNIDO shall each carry out such activities or implement such measures as are stipulated in the Project Document and Work Plan forming part of the Project Document, and which they have undertaken to accomplish by signing the Project Document. 3. The Government shall inform UNIDO of the Government cooperating agency directly responsible for the Government’s participation in the Project. Without prejudice to the Government’s overall responsibility for UNIDO-assisted projects, the Government and UNIDO may agree that UNIDO shall assume primary responsibility for implementation of the Project in consultation and agreement- with the cooperating agency; arrangements to this effect shall be stipulated in the Project Document or in the related Work Plan forming part of the Project Document, together with arrangements for the transfer of such responsibility to the Government or to any entity designated by the Government, which shall be envisaged in the course of project implementation and not later than at the operational completion of the Project. 4. Compliance by the Government with any prior obligation agreed to be required for UNIDO assistance to the Project shall be a condition for performance by UNIDO of its responsibilities with respect to the Project. Should provision of such assistance be commenced before such prior obligations have been met, it may be suspended or terminated without notice at the discretion of UNIDO. 5. UNIDO shall, as appropriate and in consultation with the Government, appoint a Chief Technical Adviser or Project Co-coordinator responsible to UNIDO for overseeing the participation of UNIDO in the Project at the project level. He/she shall supervise and coordinate activities of experts and other UNIDO personnel and be responsible for on-the-job training of Government counterpart personnel. He/she shall be responsible for the management and efficient utilization of all UNIDO-financed inputs, including equipment provided to the Project. 6. In the performance of their duties, advisory experts or associate experts, consultants, firms, organizations and volunteers shall co-operate with the Government and with persons or bodies designated by the Government, and shall comply with such guidance from the Government as may be appropriate to the nature of their duties and the assistance to be given and as may be mutually agreed upon between UNIDO and the Government.

8 Source: Annex G to the Director General’s bulletin DGB(E).54 (ex-DGB.18/Rev.1), dated 15 May 1992 46

7. Technical and other equipment, materials, supplies and all other property financed or provided by UNIDO shall belong to UNIDO. Unless otherwise provided in the Project Document, following operational completion of the Project, ownership of equipment, materials and supplies, as well as other property necessary for operation of the Project, shall be transferred to the Government or to an entity nominated by it. 8. Patent rights, copyrights and other similar rights to any discoveries or work resulting from UNIDO assistance under this Agreement shall belong to UNIDO. Unless otherwise agreed by the Government and UNIDO in each case, however, the Government shall have the right to use any such discoveries or work within the country free of royalty or any charge of similar nature.

II. INFORMATION CONCERNING THE PROJECTS

1. The Government shall furnish UNIDO with such relevant reports, maps, accounts, records, statements, documents, statistical data and other information as it may request concerning the Project, its implementation or its continued feasibility and soundness, or concerning the compliance by the Government with its responsibilities under the Project Document. 2. UNIDO undertakes that the Government shall be kept currently informed of the progress of its assistance activities under this project. Either party shall have the right, at any time, to observe the progress of operations on the Project. 3. The Government shall, subsequent to the completion of the Project, make available to UNIDO at its request information as to benefits derived from and activities undertaken to further the purposes of the Project, including information necessary or appropriate to its evaluation or to evaluation of UNIDO assistance, and shall consult with and permit observation by UNIDO for this purpose. 4. The Government and UNIDO shall consult each other regarding the publication, as appropriate, of any information relating to the Project or to benefits derived therefrom.

III. PARTICIPATION IN AND CONTRIBUTION OF THE GOVERNMENT TOWARDS THE IMPLEMENTATION OF THE PROJECT

1. If the provision of equipment forms part of UNIDO’s assistance to the Government, the latter shall meet charges relating to customs clearance of such equipment, and unless otherwise provided in the relevant Project Document, also the charges relating to its transportation and insurance from the port of entry to the project site together with any incidental handling or storage and related expenses, its insurance after delivery to the project site and, its installation, commissioning and maintenance. 2. The Government also shall meet the salaries of trainees and recipients of fellowships during the period of their fellowships. 3. The Government shall, as appropriate, display suitable signs at each project identifying it as one assisted by UNIDO.

IV. PRIVILEGES AND IMMUNITIES

1. The Government shall apply to UNIDO, including its organs, its property, funds, assets and its officials, the provisions of the Convention on the Privileges and Immunities of the Specialized Agencies (hereinafter, the “Convention”), including any Annex to that Convention applicable to UNIDO. 47

2. (a) The Government shall grant all persons, other than Government nationals employed locally, performing services on behalf of UNIDO, who are not covered by paragraph 1 above, the same privileges and immunities as are granted to officials under Section 19 of the Convention.

(b) For purposes of the Convention:

(i) All papers and documents relating to the Project in the possession or under the control of the persons referred to in sub-paragraph 2(a) above shall be deemed to be documents belonging to UNIDO; (ii) Equipment, materials and supplies brought into, or purchased, or leased by those persons within the country for purposes of the Project shall be deemed to be property of UNIDO.

3. The expression “persons performing services” as used in Chapters IV and V of this Appendix includes operational experts, volunteers, consultants and juridical as well as natural persons and their employees. It includes governmental or non-governmental organizations or firms which UNIDO may retain to implement or to assist in the implementation of UNIDO assistance to the Project and their employees.

V. FACILITIES AND LIABILITY FOR IMPLEMENTATION OF UNIDO ASSISTANCE

1. The Government shall take any measure which may be necessary to exempt UNIDO, its officials or experts, and other persons performing services on its behalf from regulations or other legal provisions which may interfere with operations under this project and shall grant them such other facilities as may be necessary for the speedy and efficient implementation of UNIDO assistance. It shall, in particular, grant them the following rights and facilities:

(a) Prompt clearance of officials or experts and of other persons performing services on behalf of UNIDO; (b) Prompt issuance without cost of necessary visas, licenses or permits; (c) Access to the site of work and all necessary rights of way; (d) Free movement within or to or from the country to the extent necessary for proper execution of UNIDO assistance; (e) The most favourable legal rate of exchange; (f) Any permits necessary for the importation of equipment, materials and supplies, and for their subsequent exportation; (g) Any permits necessary for importation of property belonging to and intended for the personal use or consumption of officials of UNIDO, or of other persons performing services on its behalf, and for the subsequent exportation of such property; (h) Prompt release from customs of the items mentioned in sub-paragraphs (f) and (g) above.

2. The Government shall bear all risks of operation arising under this project. It shall be responsible for dealing with claims, which may be brought by third parties against UNIDO, its officials, experts, or other persons performing services on their behalf, and shall hold them harmless in respect of claims or 48 liabilities arising from operations under this project. The foregoing provision shall not apply where the Government and UNIDO have agreed that a claim or liability arises from the gross negligence or wilful misconduct of the above-mentioned individuals.

VI. SUSPENSION OF ASSISTANCE

UNIDO may by written notice to the Government suspend its assistance to the Project if in the judgment of UNIDO any circumstance arises, which interferes with or threatens to interfere with the successful completion of the Project, or the accomplishment of its purposes. UNIDO may, in the same or a subsequent written notice, indicate the conditions under which it is prepared to resume its assistance to the Project. Any such suspension shall continue until such time as such conditions are accepted by the Government and as UNIDO shall give written; notice to the Government that it is prepared to resume its assistance.

VII. SETTLEMENT OF DISPUTES

1. Except for disputes regarding privileges and immunities, which are subject to settlement in accordance with Section 32 of the Convention on the Privileges and Immunities of the Specialized Agencies, the Parties agree to use their best efforts to settle promptly through direct negotiations any dispute between UNIDO and the Government arising out of or relating to the interpretation or application of the Project Document or of these Basic Terms and Conditions. Any such dispute which is not settled within sixty (60) days from the date either Party has notified the other Party of the nature of the dispute and of the measures which should be taken to rectify it, shall be resolved through consultation between the Director General of UNIDO and the Minister of Foreign Affairs. 2. Any dispute between the Government and an operational expert arising out of or relating to the conditions of his service with the Government may be referred to UNIDO by either the Government or the operational expert involved, and UNIDO shall use its good offices to assist them in arriving at a settlement.

VIII. GENERAL PROVISIONS

1. Assistance made available by UNIDO to the Government under the subject Project Document shall be provided and received in accordance with the pertinent regulations, resolutions and decisions applicable to UNIDO, and subject to the availability of the necessary funds to UNIDO. 2. This Appendix may be modified by written agreement between UNIDO and the Government. Any relevant matter for which no provision is made in this Appendix shall be settled by UNIDO and the Government in keeping with the relevant resolutions and decisions of the appropriate organs of UNIDO.