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Project Document for Nationally Implemented Projects Financed by the GEF Trust Funds

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Project Document for Nationally Implemented Projects Financed by the GEF Trust Funds United Nations Development Programme Project Document for nationally implemented projects financed by the GEF Trust Funds Project title: Bhutan Sustainable Low-emission Urban Transport Systems Country: Bhutan Implementing Partner: Ministry of Management Arrangements: Information and Communications (MoIC) National Implementation Modality (NIM) UNDAF/Country Programme Outcome: “Sustainable and green economic growth that is equitable, inclusive, climate and disaster resilient and promotes poverty reduction, and employment opportunities particularly for vulnerable groups enhanced”. UNDP Strategic Plan Output 1.4 (2014-2017) “Scaled up action on climate change adaptation and mitigation across sectors which is funded and implemented” UNDP Strategic Plan Output 2.5.1 (2019-2023) “Solutions developed, financed and applied at scale for transformation to clean energy and zero-carbon development, for poverty eradication and structural transformation” UNDP Social and Environmental Screening Category: UNDP Gender Marker: Moderate GEN2: Gender equality as a significant objective Atlas Project ID/Award ID number: 00094488 Atlas Output ID/Project ID number: 00098606 UNDP-GEF PIMS ID number: 5563 GEF ID number: 9367 Planned start date: March 2018 Planned end date: February 2021 LPAC date: 4 January 2018 Brief project description: The objective of the project is to facilitate low-carbon transition in the Bhutan’s urban transport sector by promoting wider uptake of low emission vehicles (LEVs), in particular electric vehicles (EVs), as the preferred fuel source for transport in Bhutan. Component 1 “Policy support for low-emission transport” will remove policy and regulatory barriers hampering growth of LEV market. Component 2 “Awareness and capacity development” aims at addressing awareness, misperception and capacity gaps and constraints regarding 1 | Page LEVs among wide range of transport market stakeholders. Component 3 “Investment in low-emission transport systems and support services” will tackle barriers related to affordability of and access to finance for LEVs, as well as investment in electric vehicle supply equipment (EVSE). The project will, in partnership with local financial institutions and regulator, design and implement an innovative financial support mechanism and financial product for EVs. It will also support expansion of the charging infrastructure network and establishment of a viable business model to ensure its sustainability, reliability and further growth. The ambition and the expected scale of market transformation is to ensure that, by the end of this 3-year long project, the fleet of EVs (taxis) in Bhutan to increase 4-fold, i.e. from 99 vehicles today up to 399 by the project end. FINANCING PLAN GEF Funds USD 2,639,726 (1) Total Budget administered by UNDP USD 2,639,726 PARALLEL CO-FINANCING (all other co-financing that is not cash co-financing administered by UNDP) Government USD 10,318,000 (2) Total co-financing USD 10,318,000 (3) Grand-Total Project Financing (1) +(2) USD 12,957,726 SIGNATURES Signature: print name below Agreed by Date/Month/Year: Government Signature: print name below Agreed by Date/Month/Year: Implementing Partner Signature: print name below Agreed by UNDP Date/Month/Year: 2 | Page I. TABLE OF CONTENTS I. Table of Contents ................................................................................................................... 3 II. Development Challenge ......................................................................................................... 6 III. Strategy ................................................................................................................................ 14 IV. Results and Partnerships ..................................................................................................... 19 V. Project Management ........................................................................................................... 35 VI. Project Results Framework .................................................................................................. 38 VII. Monitoring and Evaluation (M&E) Plan ............................................................................... 41 VIII. Governance and Management Arrangements .................................................................... 46 IX. Financial Planning and Management................................................................................... 49 X. Total Budget and Work Plan ................................................................................................ 52 XI. Legal Context ....................................................................................................................... 55 XII. Risk Management ................................................................................................................ 55 XIII. Mandatory Annexes ............................................................................................................. 57 Annex A: Multi Year Work Plan .............................................................................................................. 58 Annex B: GEF Tracking Tool at baseline ................................................................................................. 61 Annex C: Overview of Technical Consultancies ..................................................................................... 62 Annex D: Terms of Reference ................................................................................................................. 64 Annex E: UNDP Social and Environmental Screening Procedure and plans as needed......................... 68 SESP Attachment 1. Social and Environmental Risk Screening Checklist ......................................... 72 Annex F: Stakeholder Engagement Plan ................................................................................................ 75 Annex G: Gender Analysis and Action Plan ............................................................................................. 83 GENDER ACTION PLAN ..................................................................................................................... 84 Annex H: UNDP Risk Log ........................................................................................................................ 85 Annex I: Results of the capacity assessment of the project implementing partner and HACT micro assessment .............................................................................................................................................. 87 Annex J: Letter of Agreement for DPC and Co-financing Letters ............................................................ 88 3 | Page List of Tables Table 1: GHG emissions from Energy Related Activities ................................................................................................ 7 Table 2: Contribution of low-emission vehicles to SDGs ............................................................................................... 9 Table 3 Total costs of ownership (TCO): ICE and EV .................................................................................................... 13 Table 4 BAU Financing for EVs ..................................................................................................................................... 13 Table 5 Key Planned Outputs and Activities to Address Barriers by the proposed UNDP-GEF Project ....................... 17 Table 6 Cost of proposed financial support mechanism and leveraging ratio ............................................................ 24 Table 7 Financing structure for Option 1 ..................................................................................................................... 24 Table 8 Criteria for selection of EV .............................................................................................................................. 25 Table 9 Technical requirements and criteria for EVSE ................................................................................................. 29 Table 10: Emissions reduction potential for one EV .................................................................................................... 35 Table 11: Overview of the emission reduction potential based on the project design ............................................... 35 Table 12 Aggregated GHG Emission Reductions: Direct and Consequential ............................................................... 36 Table 13 Mandatory GEF M&E Requirements and M&E Budget: ............................................................................... 44 List of Figures Figure 1: Motor vehicle ownership and fuel imports in Bhutan, 2005-2010................................................................. 6 Figure 2: GHG emissions from road transport compared to total energy related emissions (ktCO2e), 2005-2040 ...... 7 Figure 3 Daily average concentration of PM10 in Thimphu .......................................................................................... 8 Figure 4: Trend in transport illustrated by Bhutan Living Standard Survey ................................................................. 11 Figure 5 ASI Approach to Low-Carbon Transport Sector Development in Bhutan ...................................................... 15 Figure 6 Preferred transport mode for men and women in Bhutan ........................................................................... 16 Figure 7 Theory of Change ..........................................................................................................................................
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