Contracting Authority: European Commission Promoting Renewable Energy for Climate Change Adaptation and Mitigation in the Philippines ANNEX A.2 – Full application form1 Budget line: 21.0202002 Reference: EuropeAid/158417/DD/ACT/PH Dossier No (for official use only) 1 To obtain information about the deadline for submission, please see section 2.2 of the guidelines. 2 Any reference to European Union financing also refers to European Development Fund grants where applicable. EuropeAid/158417/DD/ACT/PH Page 1 of 60 15 January 2016 Annex A.2 - Full Application with tracked changes 061218.doc Table of contents 1 General information ............................................................................................................... 3 2 The action ................................................................................................................................ 3 2.1. Description of the action................................................................................................................ 3 2.1.1. Description (max 13 pages) .............................................................................................. 3 2.1.2. Methodology (max 5 pages) ........................................................................................... 15 2.1.3. Indicative action plan for implementing the action (max 4 pages) ................................. 20 2.1.4. Sustainability of the action (max 3 pages) ...................................................................... 25 2.1.5. Logical Framework ......................................................................................................... 28 2.1.6. Budget, amount requested from the Contracting Authority and other expected sources of funding 28 2.2. Experience ................................................................................................................................... 29 3 Associates participating in the action .................................................................................. 51 4 Declarations ........................................................................................................................... 57 4.1. Declaration by the lead applicant (full application) .................................................................... 57 4.2. Mandate (for co-applicant(s)) ...................................................................................................... 57 EuropeAid/158417/DD/ACT/PH Page 2 of 60 15 January 2016 Annex A.2 - Full Application with tracked changes 061218.doc 1 General information Reference of the call for Enter EuropeAid reference for the call for proposals proposals [Lot number you are applying e.g. Lot nº 2 to:] Number of the proposal Number applicable for Restricted procedure only. Name of the lead applicant United Nations Industrial Development Organization Title of the action Renewable Energy Technology to Increase Value- Added of Seaweeds in Tawi-Tawi (RETS) 2 The action 2.1. Description of the action 2.1.1. Description (max 13 pages) Tawi-Tawi is the southernmost frontier of the Philippines. The archipelagic province, belonging to the Autonomous Region in Muslim Mindanao (ARMM), consists of a group of islands and islets blessed with abundant natural resources. The vast shallow coastal areas of Tawi-Tawi makes it very conducive for farming of seaweeds (Eucheuma), which is the major source of carrageenan, a seaweed extract with multitudes of uses from cosmetics, food additives, and other products. Ten of the eleven municipalities of Tawi-Tawi produce seaweed, making the province the leading supplier of seaweeds throughout the country with 70% of total production. However, Tawi-Tawi’s seaweeds industry is faced with problems as declining production and annual value. Tawi-Tawi is the largest producer of seaweeds in ARMM but ranks only sixth in terms of value. Tawi-Tawi also remains among the poorest and least electrified provinces in the country. The bulk of seaweeds production comes from the island municipalities of Sitangkai, Panglima Sugala, Tandubas, and Sibutu, that are each served by National Power Corporation – Small Power Utilities Group (NPC-SPUG) diesel generator units. However, household electrification rates on average is less than 20%, and even those connected to the network receive only between 12 and 16 hours of electricity service daily. The United Nations Industrial Development Organization (UNIDO) and Mindanao Development Authority (MinDA) have agreed to cooperate in pursuit of the sustainable development objectives of Mindanao and have identified the promotion of renewable energy technologies for productive use as an initial area for collaboration. The proposed action aims to increase and extend the availability of electricity service in these island municipalities that are home to about 15,000 seaweed farmers, through the renewable energy hybridization of the island grids in the municipalities of Sitangkai and Sibutu. The development, construction and commissioning of a solar PV-diesel genset hybrid system will integrate the assessment and design of appropriate water supply systems. The Action will demonstrate the importance of the water-energy nexus. Water is necessary in the processing in the processing of raw dried seaweeds and at the same time EuropeAid/158417/DD/ACT/PH Page 3 of 60 15 January 2016 Annex A.2 - Full Application with tracked changes 061218.doc increases the viability of the RE-hybrid systems by providing and increasing baseload demand. The proposed action will also explore the application of appropriate decentralized RE systems along the seaweed value chain in the municipalities of Panglima Sugala and Tandubas, particularly in post-harvest processing and facilities. The proposed action integrates efforts to enhance the quality and increase the value of seaweeds produced by the mentioned communities with those of the provincial government of Tawi-Tawi and the Bureau of Fisheries and Aquatic Resources (BFAR)-ARMM. The energy component of the action will also be integrated with the plans and programs of the local government to deliver community social and welfare services, thus improving the quality of life in the seaweed farming communities. Electricity is needed to provide adequate water supply infrastructure, to provide water to improve household and community health, nutrition, sanitation and hygiene. Integration of the energy aspect of the action with productive uses and income-generating activities will improve the households’ ability to pay for the energy service and thus contributes to the sustainability of the action. The objectives of the action are summarized as follows: Overall Objective Reduce if not eliminate poverty in the seaweed farming communities of Tawi-Tawi and strengthen their economic and climate resilience through the integration of energy access improvement with overall rural development efforts, plans and programs. Specific Objectives • Increase and extend the availability of electricity service in the selected seaweed farming communities in Tawi-Tawi, in the municipalities of Sitangkai, Panglima Sugala, Tandubas, and Sibutu, through renewable energy hybridization of the existing Objectives of the action diesel mini-grids and development of decentralized RE systems • Integrate the assessment and design of a feasible water supply system • Increase the production of raw dries seaweeds and the value added of seaweed farming and increase its income and employment generation potential through the availability of electricity services and use of renewable energy technologies (RETs) • Improve the delivery of community services such as health and nutrition, education, sanitation through the availability of electricity services in off-grid and rural seaweed farming communities Seaweed farming communities in the municipalities of Sitangkai, Sibutu, Panglima Sugala and Tandubas, Bureau of Fisheries and Target group(s) Aquatic Resources (BFAR) ARMM and Tawi-Tawi, (Tawi-Tawi Electric Cooperative Inc. (TAWELCO), and the Tawi-Tawi provincial and local governments. EuropeAid/158417/DD/ACT/PH Page 4 of 60 15 January 2016 Annex A.2 - Full Application with tracked changes 061218.doc Seaweed farming communities, BFAR, and electric cooperatives Final beneficiaries serving isolated and off-grid areas. Op 1.1 RE-hybrid systems are implemented in Sitangkai and Sibutu; Feasible decentralized RE systems for the seaweed value chain are developed in Panglima Sugala and Tandubas; Op 2.1 Appropriate water supply systems are assessed and designed integral to the RE hybrid systems; Estimated results Op 3.1 The plans, programs, and projects of BFAR to increase production of higher quality raw dried seaweeds (RDS) are facilitated; Op 4.1 The plans, programs, and projects of the local government units (LGUs) to improve the delivery of economic and community social and welfare services are facilitated. State how the action will improve the situation of the target groups and final beneficiaries and the technical and management capacities of target groups and/or any local co- applicants and affiliated entity(ies). As of March 2017, the status of electrification of the target municipalities are as follows: Status of Electrification of Target Municipalities Connection % Rated Hours of Served Potential electrification Capacity operation (MW) Sitangkai 642 5,789 11 1.950 16 Sibutu 1,460 4,727 31 1.075 16 Panglima 646 6,321 10 1.650 16 Sugala Tandubas 602 4,635 13 0.800 16 Source: TAWELCO The local farming communities also lack