BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY (B-LEADERS) PROJECT ANNUAL REPORT FISCAL YEAR 2016 COVERING OCTOBER 1, 2015 – SEPTEMBER 30, 2016 October 15, 2016 This document was produced for review by the United States Agency for International Development. It was prepared by IRG, an Engility company. 1 BUILDING LOW EMISSION ALTERNATIVES TO DEVELOP ECONOMIC RESILIENCE AND SUSTAINABILITY (B-LEADERS) PROJECT ANNUAL REPORT FISCAL YEAR 2016 COVERING OCTOBER 1, 2015 – SEPTEMBER 30, 2016 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... 9 SECTION 1: PROJECT OVERVIEW AND EXPECTED RESULTS ...................................... 14 A. General Overview .......................................................................................................................... 14 B. Expected Results ............................................................................................................................ 14 SECTION 2: ACTIVITY IMPLEMENTATION PROGRESS ............................................... 21 A. Progress Narrative ......................................................................................................................... 21 B. Quantitative Results for FY 2016 .............................................................................................. 25 C. Implementation Status ................................................................................................................ 27 Task 1: In-Country Capacity on Low Emission Development Strengthened ......................... 27 Task 2: Investments into Clean Energy Projects Increased .......................................................... 37 Cities Development Initiative Sites ......................................................................................................... 41 Crosscutting Activities and Community and Outreach Activities ............................................... 45 SECTION 3: INTEGRATION OF CROSSCUTTING ISSUES ............................................. 50 A. Gender Equality and Women Empowerment ...................................................................... 50 B. Public-Private Partnership .......................................................................................................... 50 C. Production of Communications and Outreach Materials ............................................... 51 SECTION 4: PLANNED ACTIVITIES FOR FY 2017 ......................................................... 56 ANNUAL REPORT FOR FY 2016 1 ANNEXES Annex A. CLEER Files and Equivalency Calculations Annex B. Enhanced Cost-Benefit Analysis Consultations Annex C. LEAP CBA Trainings for the Energy and Transport Sectors Annex D. Agriculture and Land Use 2006 Training Annex E. Water Energy Nexus in Mindanao Annex F. Fora on the NDC Roadmap Annex G. National Energy Policy Review Annex H. Review of Philippine Power Sector’s Reserve Requirements and Fuel Mix Policy Annex I. Preparation of the APEC Guidelines in Improving Energy Resiliency in Off-grid Areas Annex J. Greening the Grid Study Annex K. Public Consultation on the Renewable Portfolio Standards Annex L. Review of Power Distribution Standards Annex M. Capacity Building of Mindanao’s Electric Cooperatives on Demand Side Management Annex N. ERC TWG Training on the Competitive Selection Process (CSP) and Drafting of the CSP Guidelines Annex O. ERC TWG Training on Power Supply Agreements (PSA) Annex P. ERC Market Operations Service (MOS) Team Training on Unbundled Power Rates Annex Q. Capacity Building Series for the ERC and Office of the Solicitor General (OSG) Annex R. PLLENRO Capacity Building on Low Emission Development Strategies (LEDS) Annex S. Communities for Resilience (CORE) Convergence Fora Annex T. Participation in the Asia LEDS 2016 Forum Annex U. Implementation of the Energy Virtual One Shared System (EVOSS) Annex V. Capacity Building for MinDA’s One Stop Facilitation and Monitoring Center (OSFMC) Annex W. LGU Forum on Renewable Energy Investments Annex X. Regional Sectoral Dialogues with Key Business Leaders on Mindanao’s Power Situation ANNUAL REPORT FOR FY 2016 2 Annex Y. Mandaue City Green Building Code and Investment Package Annex Z. Study on the Carbon Sequestration Potential of Mangroves in Iloilo City Annex AA. Mangrove Forest Tour in Iloilo City Annex AB. IMPACT Batangas City Green Business Summit Annex AC. Batangas City Climate Change Mitigation Strategies Annex AD. Isla Verde Energy Resiliency Project Annex AE. GHG Inventory for USAID CDI Sites: Zamboanga City and Tagbilaran City Annex AF. Climate Vulnerable Forum: Sherpa Meeting Annex AG. Climate Change Consciousness Week 2015 Annex AH. #NOWPH Training of Trainers Annex AI. Presentation of Project Initiatives at the Asia Clean Energy Forum 2016 Annex AJ. Climate Change Advocacy at the National Youth Parliament Annex AK. Breakout Session during the Global Leaders Conference Annex AL. LEDS Best Practices at International Urban Development Conference Annex AM. Miss Earth 2016 LEDS Seminars Annex AN. Pathways to LEDS Partnership for a Greener Iloilo City Annex AO. LEDS Camp in Batangas City Annex AP. GMA-7 Partnership Annex AQ. Public-Private Partnerships / Leveraged Funds for FY 2016 Annex AR. Communication and Outreach Materials Produced ANNUAL REPORT FOR FY 2016 3 FIGURES FIGURE 1. OVERVIEW OF ACTIVITIES AND EXPECTED RESULTS ................................... 15 TABLES TABLE 1. LOGICAL FRAMEWORK .....................................................................................................16 TABLE 2. SUMMARY OF PROJECT PROGRESS ..............................................................................21 TABLE 3. FISCAL YEAR 2016 CUMULATIVE ACTUAL RESULTS .............................................25 TABLE 4. LOP TARGETS VERSUS ACCUMULATED ACTUAL RESULTS UP TO END OF FY 2016 ....................................................................................................................26 TABLE 5. SUMMARY OF FUNDS LEVERAGED FOR FY 2016 (IN USD) ................................50 TABLE 6. LIST OF COMMUNICATIONS AND OUTREACH MATERIALS .............................52 ANNUAL REPORT FOR FY 2016 4 ACRONYMS ACEF Asia Clean Energy Forum AFOLU Agriculture, Forestry and Land Use ALU Agriculture and Land Use AMRECO Association of Mindanao Rural Electric Cooperatives, Incorporated ANECO Agusan Del Norte Electric Cooperative APEC Asia-Pacific Economic Cooperation APHC Agus-Pulangi Hydropower Complex AVP Audio-Visual Presentation BAU Business As Usual BBEC Bicol Biomass Energy Corporation B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and Sustainability BERDE Building for Ecologically Responsive Design Excellence BLTMPC Boracay Land Transportation and Multi-Purpose Cooperative BOI Board of Investments CBA Cost-Benefit Analysis CCC Climate Change Commission CDCS Country Development Cooperation Strategy CDI Cities Development Initiative CE Clean Energy CLEER Clean Energy Emission Reduction CO2e Carbon Dioxide Equivalent COP21 2015 Paris Climate Conference (Conference of the Parties 21) CORE Communities of Resilience CSP Competitive Selection Process CVF Climate Vulnerable Forum DENR Department of Environment and Natural Resources DepEd Department of Education DFA Department of Foreign Affairs DICT Department of Information and Communications Technology DO Development Objective DOE Department of Energy DOTC Department of Transportation and Communication DOTr Department of Transportation DQAs Data Quality Assessments ANNUAL REPORT FOR FY 2016 5 DSM Demand Side Management EC-LEDS Enhancing Capacity for Low Emission Development Strategies ECC Environmental Compliance Certificate EE Energy Efficiency EF Efficiency Factor EMB Environmental Management Bureau ENRO Environment and Natural Resources Office EO Executive Order EPIRA Electric Power Industry Reform Act ERC Energy Regulatory Commission ESITU Environmentally Sustainable Initiatives Transportation Unit EVOSS Energy Virtual One Shared System FGD Focus Group Discussion FiT Feed-in Tariff FMB Forest Management Bureau FY Fiscal Year GCC Global Climate Change GDP Gross Domestic Product GHG Greenhouse Gas GIFT Green Innovations for Tomorrow Corporation GPH Government of the Philippines GtG Greening the Grid IBEC Isabela Biomass Energy Corporation IEC Information, Education, and Communication ILP Interruptible Load Program IMPACT Initiate, Mitigate, Participate, Adapt, Clean and Transform INDC Intended Nationally Determined Contribution IPPU Industrial Processes and Product Use IRR Implementing Rules and Regulations LBP Land Bank of the Philippines LCCAP Local Climate Change Action Plan LEAP Long-range Energy Alternatives Planning LEIPO Local Economic and Investment Promotion Offices LEON League of Environment Officers of Negros LED Low Emission Development LEDS Low Emission Development Strategies LEYECO II Leyte Electric Cooperative II LGU Local Government Unit LOP Life of Project ANNUAL REPORT FOR FY 2016 6 M&E Monitoring and Evaluation MBBC Metro Batangas Business Club MERALCO Manila Electric Company MinBC Mindanao Business Council MinDA Mindanao Development Authority MOS Market Operations Service mtCO2e Metric Tons of Carbon Dioxide Equivalent MW Megawatts MWG Modelling Working Group NAMAs Nationally