UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Project Document (final draft 21 March 2018) (1) Project in the Republic of India Project number: 170113 Project at the selected states of Bamboo for Products and Fuels: strengthening and diversifying North Eastern Region (NER) of inclusive bamboo value chains for sustainable livelihoods in India North East India Thematic area code Creating shared prosperity; and Safeguarding the environment Starting date: Q1, 2018 Duration: 1 year (inception and pilot) + 3 years (main implementation) Project site: Assam; Arunachal Pradesh; Meghalaya; and Nagaland (North East India), Government Department of Industrial Policy and Planning (DIPP); Ministry Co-ordinating agencies: of Development of North East Region (MDONER); National Bamboo Mission; Government of Assam; Government of Arunachal Pradesh; Government of Meghalaya; Government of Nagaland; Counterparts: Numaligarh Refinery Limited (NRL) Nagaland Bamboo Development Agency (NBDA) Arunachal Pradesh Bamboo Resource Development Agency (APBRDA) Integrated Basin Development and Livelihood Promotion (IDBLP) Government of Meghalaya Executing agency: United Nations Industrial Development Organization (UNIDO) Project Inputs (USD) (2) NRL Funding Granted through UNIDO NRL directly (indicative) Phase 1 Phase 2 Phase 1 Phase 2 Net Project Costs $ 237,000.00 $ 866,000.00 $ 302,000.00 $ 1,437,000.00 Project Support costs $ 30,810.00 $ 112,580.00 0 0 (13%): Grand Total $ 267,810.00 $ 978,580.00 $ 302,000.00 $ 1,437,000.00 1 Subject to final approval by NRL and UNIDO. 2 The partnership project will be funded in full by NRL i | P a g e Brief description The proposed partnership project of Numaligarh Refinery Limited (NRL) and the United Nations Industrial Development Organization (UNIDO) aims to strengthen, diversify and expand value chains for production of bamboo-based products and fuels for income and employment creation in North East India, in particular in the States of Assam, Arunachal Pradesh, Meghalaya and Nagaland and improving viability of bamboo use for bioethanol production. The project aims to maximize value creation from abundant bamboo resources by producing both bamboo products as well as providing bamboo as feedstock for the new to establish ethanol plant (bio-refinery), by NRL and its Joint Venture partners. The project will work by means of establishment of community-based bamboo collection and processing clusters and supporting these to develop marketable products and connect to domestic and international markets, whilst also providing bamboo feedstock to the bio- refinery in a cost-effective and sustainable manner. The partnership project aims to contribute to improving livelihoods for impoverished communities in North East Region by creating diverse and demand-driven sustainable bamboo supply chains that provide opportunities for employment and income generation in selected communities in Assam, Arunachal Pradesh, Meghalaya and Nagaland. In addition, the project aims to set up competitive and reliable bamboo feed stock system for bioethanol plant and thereby contribute to realization of aims and objectives of bioethanol policy and national action plan on climate change The project therefore works towards (1) improved provision of knowledge, technical, management, marketing and financing support for market-driven and inclusive expansion and diversification of supply chains for bamboo products and bamboo-derived fuels and (2) establishment of community-based enterprises that sustainably manage and harvest bamboo, produce and market bamboo products and supply bamboo feedstock to bio-refinery. The project will be jointly implemented through a development partnership of UNIDO and NRL. It will be conducted in two phases. Phase I (up to 12 months) concerns inception and pilot and serves primarily to operationalize the cluster-based bamboo supply model, including initial assessment and planning for up to four clusters. Phase I serves to demonstrate the feasibility of the cluster-based supply chain model and thereby also contribute to reducing uncertainties in regard to volume and price of cluster-based bamboo feedstock supply to the biorefinery. Phase II (up to 36 months) is the main implementation stage, organized in two successive batches of clusters development. It will bring supply of bamboo feed stock to scale (e.g. in range of 30-50% of the biorefinery requirement) from up to 25 clusters, based upon detailed performance criteria arising from the phase I. Approved: Signature: Date: Name and title: On behalf of the Government of India: On behalf of UNIDO: ii | P a g e Table of Contents I. CONTEXT....................................................................................................................................... 1 A. BAMBOO IN NORTHEAST INDIA .................................................................................................... 1 1. Resource Base ......................................................................................................................... 2 2. Bamboo utilization and industries .......................................................................................... 7 3. Bamboo for Bioethanol ........................................................................................................... 8 4. Problem Description ............................................................................................................... 9 5. Project Beneficiaries ............................................................................................................. 10 B. GOVERNMENT POLICY AND STRATEGY ....................................................................................... 11 II. REASONS FOR UNIDO ASSISTANCE ..................................................................................... 12 III. THE PROJECT ......................................................................................................................... 14 A. OBJECTIVE OF THE PROJECT ....................................................................................................... 14 B. THE UNIDO APPROACH............................................................................................................. 14 C. RBM CODE AND THEMATIC AREA CODE ................................................................................... 19 D. EXPECTED OUTCOMES................................................................................................................ 19 E. OUTPUTS AND ACTIVITIES .......................................................................................................... 20 F. TIMELINE OF ACTIVITIES ............................................................................................................ 22 G. RISKS AND MITIGATION MEASURES ........................................................................................... 24 IV. INPUTS ..................................................................................................................................... 25 A. COUNTERPART INPUTS ............................................................................................................... 26 B. UNIDO INPUTS .......................................................................................................................... 27 V. BUDGET ....................................................................................................................................... 28 VI. MONITORING, REPORTING AND EVALUATION ............................................................. 30 A. PROJECT MONITORING AND EVALUATION .................................................................................. 30 B. STAKEHOLDERS CUM ADVISORY COMMITTEE ............................................................................ 30 C. REPORTING ................................................................................................................................. 30 D. MONITORING & IMPACT EVALUATION ....................................................................................... 30 VII. PRIOR OBLIGATIONS AND PREREQUISITES ................................................................... 31 VIII. LEGAL CONTEXT .................................................................................................................. 31 IX. PROJECT MANAGEMENT AND COMMUNICATIONS STRATEGY ............................... 31 ANNEX 1: PROJECT LOGICAL FRAMEWORK ............................................................................. 32 ANNEX 2: MOU BETWEEN NRL AND UNIDO ................................................................................... 35 iii | P a g e ABBREVIATIONS AND ACCRONYMS ADC Autonomous District Council APBRDA Arunachal Pradesh Bamboo Resources and Development Agency BAC Bamboo Advocacy Coalition BDAs Bamboo Development Agencies CBTC Cane and Bamboo Technology Centre CII Confederation of Indian Industry DC (H) Development Commissioner (Handicrafts) DIPP Department of Industry Policy and Promotion EBP Ethanol Blending Programme FSI Forest Survey of India FINER Federation of Industry and Commerce of the North Eastern Region GoI Government of India INBAR International Network of Bamboo and Rattan ISID Inclusive and Sustainable Industrial Development JFMC Joint Forest Management Committee KVIC Khadi and Village Industries Commission MoC&I Ministry of Commerce and Industry MoEFCC Ministry of Environment Forests and Climate Change MoMSME Ministry for Micro, Small and Medium Enterprises MSME Micro, Small