Project Document United Nations Development Programme Democratic Republic of Congo Project Title: Promotion of mini- and micro-hydropower plants in DRC Axis 4: Sustainable Natural Resources Management & Climate Change UNDAF Outcome 5: The Congolese State improves the management of its natural resources Outcome: (mining, energy, biodiversity and land) and the associated benefits, the management mechanisms, and the country is engaged towards the greening of its economy Outcome SP1: Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and UNDP excluded Strategic Plan Output 5.1: Inclusive and sustainable solutions adopted to achieve increased energy (2014-2017): efficiency and universal modern energy access (especially off-grid sources of renewable energy 2.1: Policies and Programmes are better oriented at national and provincial levels and CPAP Outputs values chains are developed to create jobs; 3.2: DRC is engages into a green economy Ministry of Energy and Hydraulic Resources (Ministère de l’Energie et des Implementing Ressources Hydrauliques/MERH) Partners: Ministry of Environment and Sustainable Development (Ministère de l’Environnement et du Développement Durable/MEDD) Brief Description of the Project The overall goal of the project is to support the Government’s strategy to mitigate climate change and to go towards a green economy and to contribute to the development of electricity generation in off-grid areas in DRC, with the implementation of small scale hydropower systems. The project will participate to DRC’s engagement in the initiative “Sustainable Energy for All” (SE4ALL) and in providing energy services in villages. The project interventions are articulated around four key issues. The first intervention concerns the development of policies and the strengthening of the regulatory and institutional framework to promote private and community-based investment in the development and operation of small-scale hydropower systems. It includes identifying legal and political barriers to the development of micro- and mini-hydropower plants; participating to the necessary corrective actions (policies, strategies & regulations) and ensuring their implementation; helping the energy sector to develop a legal, regulatory and institutional framework specific to micro- and mini-hydropower; and assisting the industry to develop a pricing system that allows to guarantee power supply in rural areas in the long-term. The objective of the second intervention is to create a critical mass in terms of skills and expertise targeting the technological supply chain. It will strengthen the technical capacity at national, provincial and community levels, and across the hydropower technology supply chain, by identifying and overcoming the barriers to the development of mini- and micro-hydropower plants (MHPP) in DRC. This will require assisting local manufacturers of MHPP-related equipments such as turbines; supporting local community initiatives and existing MHPP operators in rural areas; supporting the new private investors in developing solid business plans to raise additional financing; providing technical courses for the training of targeted practitioners (technicians and others) and assist in the acquisition of technical equipment necessary for learning and internships to support the development of the hydropower sector. The third intervention will focus on several targeted investments as pilot projects within a wider selection of potential small-scale hydropower stations in rural communities. The project will hence support the development in rural areas of numerous MHPP for a total installed capacity of 10 MW by 2017. It will identify the sites following the basic information contained in the existing literature (diagnosis and the Renewable Energy Atlas) taking into account that the identified sites are viable (socially, economically and environmentally speaking). The project will facilitate the mobilization of co-financing necessary for the development of the selected sites. With this intervention, the project will generate incomes and activities such as agricultural and other processing for local entrepreneurs, etc. Finally, it will assist the country to develop strong partnerships with the private sector in the development of tangible MHPP projects in rural and peri-urban areas. The fourth intervention is transversal. It is dedicated to communication, public relations and marketing activities for the mobilization of public and private investment dedicated to the development of additional MHPP, to reach an installed capacity of 100 MW in rural areas by 2020. Gaps will be filled in, in terms of information dissemination (communication strategy that highlights the national policy and the economic incentives, technology standards, potential sources of funding, existing capabilities and those under development, etc.). It will underpin the development of tools that guide investment, and assist the energy sector to manage various risks. Synergies with other projects will be made possible under this intervention, and best practices and lessons learned will be shared through communication tools, with other countries and partners. UNDAF Programme Period: 2013-2017 Total allocated resources: 17,337,669 USD Atlas Award ID: 00087442 Regular: Project ID : 00094434 - GEF 3,187,669 USD PIMS# 4690 - UNDP (TRAC) 400,000USD Start Date: July 2016 End Date: June 2021 Other: PAC Meeting Date: tbd * Government 13,000,000 USD Management Arrangements NIM * Donor (Gov. of 750,000 USD South Korea and Netherlands) Agreed by MEDD: Date: Agreed by MERH: Date: Agreed by UNDP: Date: 3 Table of contents List of Acronyms ................................................................................................................... 6 1. Situation analysis ....................................................................................................... 9 1.1. Introduction ................................................................................................................. 9 1.2. National energy context ........................................................................................... 10 1.3. Electricity market analysis ........................................................................................ 11 1.5. Small scale hydropower and the SE4ALL initiative in DRC ..................................... 14 1.6. The development of MHP in RDC: characteristics, potential and barriers .............. 15 2. Intervention strategy ................................................................................................ 20 2.1. Relevance of the project under the United Nations Development Assistance Framework (UNDAF) ....................................................................................................... 20 2.2. UNDP support strategy for the development of renewable energy in DRC: past initiatives and the publication of an Atlas on Renewable Energy ................................... 21 2.3. Review of national projects, policies and strategies ................................................ 22 2.4. Analysis of stakeholders in DRC .............................................................................. 23 2.5. Synergies ................................................................................................................. 28 2.6. Capacity building needs ........................................................................................... 30 3. Objectives of the project, results and activities ........................................................ 32 3.1. Project objective ....................................................................................................... 32 3.2. Project Outcomes ..................................................................................................... 32 3.3. Expected results ....................................................................................................... 33 3.4. Project Outcomes, Outputs and Activities ................................................................ 33 3.5. Project indicators, risks and assumptions ................................................................ 65 3.6. Sustainability and replicability .................................................................................. 68 3.7. Global social and environmental benefits and GEF intervention rational ................ 70 3.8. GHG emissions reduction ........................................................................................ 71 CO2_direct = e * l * c ........................................................................................................... 73 3.9. Cost effectiveness .................................................................................................... 74 3.10. Gender issues ........................................................................................................ 79 4. Logical framework .................................................................................................... 80 5. Total budget and Pluri-annual work plan ................................................................. 87 5. Management arrangements ..................................................................................... 92 6. Monitoring framework, evaluation, reporting and auditing ....................................... 95 7. Legal context ...........................................................................................................