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Mid Term Review of the UNDP GEF Project “ESCO Moldova”

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Mid Term Review of the UNDP GEF Project “ESCO Moldova” Mid Term Review of the UNDP GEF project “ESCO Moldova” Transforming the market for urban energy efficiency in Moldova by introducing Energy Service Companies 7th March 2017 1 Mid Term Review of the UNDP GEF project “ESCO Moldova” Contents 1. Executive Summary ......................................................................................................................... 5 1.1. Project Information Table ....................................................................................................... 5 1.2. Project Description (brief) ....................................................................................................... 5 1.3. Project Progress Summary ...................................................................................................... 6 1.3.1. Summary of recommendations ...................................................................................... 7 1.3.1. MTR Rating and Achievement Summary Table............................................................... 7 2. Introduction .................................................................................................................................. 10 2.1. Purpose of the MTR and objectives ...................................................................................... 10 2.2. Scope and Methodology ....................................................................................................... 10 2.3. Structure of the MTR report ................................................................................................. 11 3. Project Description and Background Context ............................................................................... 12 3.1. Development context ........................................................................................................... 12 3.2. Problems that the project sought to address: threats and barriers targeted ...................... 12 3.3. Project Description and Strategy .......................................................................................... 13 3.4. Project Implementation Arrangements ................................................................................ 15 3.5. Project timing and milestones .............................................................................................. 15 3.6. Main stakeholders: summary list .......................................................................................... 17 4. Findings ......................................................................................................................................... 18 4.1. Project Strategy ..................................................................................................................... 18 4.1.1. Project Design ............................................................................................................... 18 4.1.2. Results Framework/Logframe ....................................................................................... 18 4.2. Progress Towards Results ..................................................................................................... 19 4.2.1. Progress towards outcomes analysis ............................................................................ 19 4.2.2. Remaining barriers to achieving the project objective ................................................. 25 4.3. Project Implementation and Adaptive Management ........................................................... 26 4.3.1. Management Arrangements ......................................................................................... 26 4.3.2. Work planning ............................................................................................................... 32 4.3.3. Finance and co-finance ................................................................................................. 33 4.3.4. Project-level monitoring and evaluation systems ........................................................ 35 4.3.5. Stakeholder engagement .............................................................................................. 35 4.3.6. Reporting ....................................................................................................................... 36 4.3.7. Communications ( including half-page summary for reporting purposes) ................... 36 Mid Term Review - UNDP GEF 'ESCO Moldova' – March 2017 2 4.4. Sustainability ......................................................................................................................... 37 4.4.1. Financial risks to sustainability...................................................................................... 38 4.4.2. Socio-economic to sustainability .................................................................................. 39 4.4.3. Institutional framework and governance risks to sustainability ................................... 40 4.4.4. Environmental risks to sustainability ............................................................................ 41 5. Conclusions and Recommendations ............................................................................................. 41 5.1. Conclusions ........................................................................................................................... 41 5.1.1. Comprehensive and balanced statements ................................................................... 41 5.2. Recommendations ................................................................................................................ 42 5.2.1. Corrective actions ......................................................................................................... 42 5.2.2. Actions to follow up or reinforce initial benefits from the project............................... 54 6. Annexes ......................................................................................................................................... 57 6.1. MTR ToR (excluding ToR annexes) ........................................................................................ 57 6.2. MTR evaluative matrix .......................................................................................................... 67 6.3. Example Questionnaire or Interview Guide used for data collection ................................... 71 6.4. Ratings Scales ........................................................................................................................ 72 6.5. MTR mission itinerary ........................................................................................................... 73 6.6. List of persons interviewed ................................................................................................... 73 6.7. List of documents reviewed .................................................................................................. 75 6.8. UNEG Code of Conduct declaration ...................................................................................... 82 6.9. Training exercise - the ESCO Moldova EPC role playing game (RPG) ................................... 83 6.10. Note on the importance of individual consumption based billing ................................... 87 6.11. Notes on the timing, source, size, duration and purpose of an extension ....................... 90 6.12. Note on why EPC is not well-suited to investments in municipal buildings ..................... 93 6.13. Proposal for an advert to attract five block associations for an ESCO ............................. 95 In accordance with MTR guidelines, a separate annex issued on the same day as this report details how all received comments have (and have not) been addressed in this report. Mid Term Review - UNDP GEF 'ESCO Moldova' – March 2017 3 Acronyms and Abbreviations BL Baseline CAP Contracts, Asset and Procurement Committee DOA Delegation of Authority EEA Energy Efficiency Agency (Agenţia pentru Eficienţă Energetică) EEF Energy Efficiency Fund (Fondul pentru Eficienta Energetica) EPC Energy Performance Contract ESCO Energy Services Company GEF Global Environment Facility GoRM Government of the Republic of Moldova GUDP Green Urban Development Plan INOGATE An EU multi-country energy technical assistance programme LEDS Low Emission Development Strategy of GoRM to 2020 LGF Loan Guarantee Fund LPAC Local Project Appraisal Committee MoE Ministry of Economy MoENV Ministry of Environment MTR Mid-term Review PAA Public Acquisition Agency (Agenţia Achiziţii Publice) PIF Project Identification Form PIF Project Implementation Form PIR Project Implementation Review PMC Chisinau Municipality (Primaria Municipalitate Chisinau) PMU Project Management Unit RACP Regional Advisory Committee on Procurement RCPO Regional Chief Procurement Officer RPG Role-Playing Game SEAP Sustainable Energy Action Plan TA Technical Assistance UDP Urban Development Plan UNDP United Nations Development Programme Mid Term Review - UNDP GEF 'ESCO Moldova' – March 2017 4 1. Executive Summary 1.1. Project Information Table Title of UNDP supported GEF financed ESCO Moldova - transforming the market for project urban energy efficiency in Moldova by introducing Energy Service Companies UNDP PIMS# 5135 GEF project ID# 00089623 MTR time frame and date of MTR report November/December 2016 Region and countries included in the project Europe and Central Asia, Republic of Moldova GEF Operational Focal Area/Strategic Climate Change, Strategic Priority #4 Program “Promote energy efficient, low carbon transport and urban systems.” Executing
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