TERMINAL REVIEW REPORT Rural Energy Development Programme United Nations Development Programme, Nepal February 2007 Review Team Soma Dutta Rana Pratap Singh Homa Thakali Contents 1. INTRODUCTION------------------------------------------------------------------------------------------- I 1.1 Background and Review Objectives ------------------------------------------------------------------1 1.2 Approach and Methodology----------------------------------------------------------------------------1 2. REDP: PROJECT CONCEPT AND DESIGN----------------------------------------------------------3 2.1 The Origin and Evolution of the Programme --------------------------------------------------------3 2.2 Programme Activities -----------------------------------------------------------------------------------3 2.3 Institutional Arrangements -----------------------------------------------------------------------------4 3. RELEVANCE OF REDP ----------------------------------------------------------------------------------4 3.1 A Perspective of the Rural Energy Sector in Nepal-------------------------------------------------4 3.2 The Context of REDP Project Districts---------------------------------------------------------------5 3.3 Relevance of REDP -------------------------------------------------------------------------------------5 3.4 Relevance of REDP in the Emerging Policy Context ----------------------------------------------6 4. IMPACT ASSESSMENT ----------------------------------------------------------------------------------6 4.1 Achievement of Results---------------------------------------------------------------------------------6 4.2 Poverty Reduction and other MDG Impacts ---------------------------------------------------------8 4.3 Targeting Disadvantaged Groups: Gender Mainstreaming -------------------------------------- 11 4.4 Targeting the Disadvantaged Groups: Social Inclusion ------------------------------------------ 15 4.5 Influencing National Policy -------------------------------------------------------------------------- 16 4.6 Partnerships and Capacity Building----------------------------------------------------------------- 17 4.7 Resource Mobilization -------------------------------------------------------------------------------- 20 5. PROJECT PROCESSES AND EFFICIENCY OF OPERATIONS-------------------------------- 20 5.1 Institutional Structure and Governance------------------------------------------------------------- 20 5.2 Project Design and Planning ------------------------------------------------------------------------- 22 5.3 Technical Supervision -------------------------------------------------------------------------------- 23 5.4 Funds Management------------------------------------------------------------------------------------ 25 5.5 Reporting, Monitoring, and Organizational Learning -------------------------------------------- 27 5.6 Human Resource Management ---------------------------------------------------------------------- 27 5.7 Dealing with Conflict --------------------------------------------------------------------------------- 29 5.8 Costs and Benefits of REDP ------------------------------------------------------------------------- 29 6. SUSTAINABILITY OF EFFORT ---------------------------------------------------------------------- 31 6.1 Sustainability at the Community Level------------------------------------------------------------- 31 6.2 Sustainability at the District Level: the Issue of Internalization -------------------------------- 32 6.3 Programme Level Sustainability--------------------------------------------------------------------- 33 7. CONCLUSIONS, RECOMMENDATIONS AND LESSONS LEARNED ---------------------- 34 7.1 Conclusions--------------------------------------------------------------------------------------------- 34 7.2 Recommendations ------------------------------------------------------------------------------------- 35 7.3 Lessons Learnt ----------------------------------------------------------------------------------------- 38 ANNEXURE 1. TERMS OF REFERENCE ------------------------------------------------------------- 40 ANNEX 2: ISSUES EXAMINED IN THE REVIEW -------------------------------------------------- 45 ANNEXURE 3. LIST OF DOCUMENTS PERUSED ------------------------------------------------- 46 ANNEXURE 4. LIST OF STAKEHOLDERS MET---------------------------------------------------- 47 ANNEXURE 5. CHECKLISTS FOR DISCUSSIONS WITH STAKEHOLDERS ---------------- 48 ANNEXURE 6. FIELD GUIDE --------------------------------------------------------------------------- 50 ANNEXURE 7. LOGICAL FRAMEWORK ANALYSIS (LFA): STATUS OF ACHIEVEMENTS, DECEMBER 2006 --------------------------------------------------------------------------------- 52 ANNEXURE 8. RESOURCE MOBILIZATION, KAVRE DISTRICT------------------------------ 58 ANNEXURE 9. SALIENT FEATURES OF COMPLETED MICRO-HYDRO DEMONSTRATION SCHEMES (DEC 2006) --------------------------------------------------------------------------- 61 ANNEXURE 10. TRAINING PROGRAMMES CONDUCTED BY REDP, 2006 ---------------- 68 Table 1: REDP sites covered in field visits ............................................................................. 2 Table 2: REDP: Progress at a glance (Updated as of January 3, 2006).................................. 6 Table 3: Comparison of programme achievements with output targets in REDP phase II: Summary sheet ........................................................................................................................ 7 Table 4: End – use applications in REDP, 2006...................................................................... 9 Table 5: End-uses in the communities visited......................................................................... 9 Table 6: Impact of income Generating activities/ skill training in the sites visited .............. 10 Table 7: Gender Analysis Matrix: Impact of REDP activities .............................................. 12 Table 8: A glimpse of sample women COs in the project sites............................................. 13 Table 9: Women’s involvement in FGs in Dadeldhura district............................................. 13 Table 10: Gender tracking of REDP programme staff.......................................................... 15 Table 11: Measures for VC inclusion in the field sites visited.............................................. 15 Table 12: Social inclusion tracking of REDP staff .............................................................. 16 Table 13: Cost sharing of sample MHSs............................................................................... 20 Table 14: Technical Performance - Site Observations .......................................................... 23 Table 15: Profile of REDP programme staff......................................................................... 25 Table 16: Details of direct and indirect costs of REDP, 2006............................................... 27 Table 17: Composition of REDP project staff....................................................................... 28 Table 18: Average annual capacity building costs for an REDP district ............................. 30 Table 19: Cost per kW of sample MHSs under REDP ......................................................... 30 Table 20: REDP’s strengths and weaknesses........................................................................ 35 Figure 1: Conceptual framework for REDP review ................................................................ 2 Figure 2: Role of key actors ....................................................................................................4 Figure 3: Women’s empowerment within REDP.................................................................. 14 Figure 4: Status of MHSs under execution............................................................................ 24 Figure 5: Budget vs expenditure from UNDP grant.............................................................. 26 List of Acronyms ADB/N Agricultural Development Bank of Nepal NAVIN Network of VDCs in Nepal ADDC/N Association of District Development NEA Nepal Electricity Authority Councils of Nepal NEA National Executive Agency AEPC Alternative Energy Promotion Centre NGO Non Governmental Organization CDCF Community Development Carbon Fund NMHDA Nepal Micro Hydro development CDM Clean Development Mechanism Association CEF Community Energy Fund NORAD Norweigian Aid and Development CM Community Mobilizer NPC National Planning Commission CO Community Organization NRS Nepalese Rupees DANIDA Danish International Development Agency NTFP Non-Timber Forest Products DDC District Development Council PAF Poverty Alleviation Fund DEA District Energy Advisor PDDP Participatory District Development Project DEC District Energy Committee PDP Power Development Project DEF District Energy Fund PMC Project Management Committee DFO District Forest Officer PSU Project Support Unit DREMC District Rural Energy Management REDP Rural Energy Development Programme Committee REDS Rural Energy Development Section EDO Energy Development Officer RESC Rural Energy Service Centre ENRM Environment and Natural Resource Management RET Rural Energy Technologies ESAP Energy Sector Assistance Programme SO Support Organization EU European Union TRC Technical Review Committee FG Functional Group TTF Thematic Trust Fund HDI Human Development Index UNDP United Nations Development Programme ICIMOD Intenational Centre for Integrated Mountain USAID United States Agency