UGANDA DECENTRALIZED RENEWABLES DEVELOPMENT PROGRAM · From this, a solar PV manufacturing and/or...
Transcript of UGANDA DECENTRALIZED RENEWABLES DEVELOPMENT PROGRAM · From this, a solar PV manufacturing and/or...
AFRICAN DEVELOPMENT BANK
UGANDA
DECENTRALIZED RENEWABLES DEVELOPMENT PROGRAM
RDGE DEPARTMENT
March 2017
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TABLE OF CONTENTS
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1. INTRODUCTION ....................................................................................................................................... 1
1.1 BACKGROUND INFORMATION ...................................................................................... 1
1.2 PROJECT PREPARATION GRANT OBJECTIVES ............................................................... 2
1.3 RATIONALE FOR THE USE OF SREP RESOURCES .......................................................... 3
2. DESCRIPTION OF THE OPERATION .................................................................................................. 3
2.1 DESCRIPTION OF PREPARATORY ACTIVITIES ................................................................ 3
3. ESTIMATED COST OF PREPARATORY ACTIVITIES ..................................................................... 4
3.1 ESTIMATED COST OF OPERATION ................................................................................ 4
3.2 FINANCING PLAN ......................................................................................................... 5
4. MODE OF PROCUREMENT OF SERVICES AND GOODS ............................................................... 6
4.1 PROCUREMENT OF GOODS ........................................................................................... 6
4.2 PROCUREMENT OF SERVICES ....................................................................................... 6
4.3 REVIEW PROCEDURE ................................................................................................... 7
4.4 PROCUREMENT PLAN .................................................................................................. 7
4.5 GENERAL PROCUREMENT NOTICE AND REVIEW PROCEDURE ..................................... 7
5. IMPLEMENTATION SCHEDULE .......................................................................................................... 7
5.1 PROJECT PREPARATION TIMETABLE ............................................................................ 7
5.2 DRAFT OF CONSULTING AND PROCUREMENT SCHEDULE ............................................. 7
5.3 ORGANIZATION AND MANAGEMENT OF BANK ASSISTANCE ....................................... 7
6. FINANCIAL MANAGEMENT ................................................................................................................. 7
6.1 DISBURSEMENT METHOD AND APPLICATIONS OF AMOUNT DISBURSED ........................ 7
6.2 AUDIT AND REPORTS................................................................................................... 8
7. LEGAL FRAMEWORK ............................................................................................................................ 8
7.1 LEGAL INSTRUMENT.................................................................................................... 8
7.2 CONDITIONS ASSOCIATED WITH BANK’S INTERVENTION ............................................ 8
8. CONCLUSION AND RECOMMENDATIONS ....................................................................................... 9
8.1 CONCLUSION ............................................................................................................... 9
8.2 RECOMMENDATIONS ................................................................................................... 9
LIST OF ANNEXES
ANNEX I : SREP SC DECISION FOR UGANDA
ANNEX II : SCHEDULE OF ACTIVITIES
ANNEX III : PROCUREMENT GOODS AND CONSULTING
SERVICES SCHEDULES
Acronyms and Abbreviations
ADF African Development Fund
AfDB African Development Bank
CIF Climate Investment Fund
DERD Directorate of Energy Resources Development
GHG Greenhouse Gases
GoU Government of Uganda
MDB Multilateral Development Bank
MEMD Ministry of Energy and Mineral Resources Development
MIC Middle Income Countries
MoFPED Ministry of Finance, Planning and Economic Development
MoJCA Ministry of Justice and Constitutional Affairs
PPG Project Preparation Grant
PSC Project Steering Committee
REA Rural Electrification Agency
SCF Strategic Climate Fund
SREP Scaling-Up Renewable Energy Program
USD United States Dollar
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I. INTRODUCTION
1.1 Background Information
1.1.1 The Scaling-up Renewable Energy Program (SREP) Investment Plan for Uganda1 was
endorsed in Washington D.C. on November 11, 2015 and an envelope of USD 2.3 million as a
preparation grant for the project was approved the same day (see final decision text Annex I). The
Project Preparation Grant (PPG) will cover the expenses to develop an off-grid master plan for the
electrification of islands across Lake Victoria and to conduct the feasibility studies of the most viable
five (5) islands (Component 1). The PPG will also support the expenses to install solar PV rooftop
systems on government buildings around Kampala, Jinja, Mbale and Entebbe, and develop
regulations, legislation, standards, and strategy and investment guidelines (Component 2).
1.1.2 In the internal approval process at the African Development Bank (AfDB), the size of this
PPG falls in the category where it requires the approval by the Board of Directors on a lapse-of-time-
basis according to paragraph 8.5 of the “Climate Investment Funds Guidelines for the Administration
and Utilization of Preparation Grants”(ADB/BD/WP/2011/179/Approved). The Bank has
previously approved other smaller SREP PPGs in line with the aforementioned guidelines by simply
concluding an internal memo and having the respective Government’s authority signing it. Since it is
the first time the Board of Directors will be called to review and approve such a PPG and, after
discussions with PGCL (former GECL), it was agreed that the way forward would be for the Bank to
use the MIC grant template in preparing this document. The aim of this Board Memorandum is
therefore to present the background associated with this PPG, provide further information on the
implementation modalities of the grant, and to request the Board of Directors to approve the SREP
funding as per the Strategic Climate Finance (SCF) Financial Procedures Agreement signed between
AfDB and the Climate Investment Funds (CIF) Trustee in 2010.
1.1.3 As per the SREP rules, there is no need to monitor and evaluate indicators and results in
connection with the implementation of the PPG.
1.1.4 Uganda is a landlocked country located in Eastern Africa with a total area of 241,550 square
kilometers and a total population of 34.9 million, of which 70% live in rural areas. The overall
household access to electricity is about 17% at the national level and roughly 7% in rural areas1.
Limited access and the high cost of electricity services has affected delivery of social services and
constrained the development of industrial and commercial enterprises.
1.1.5 Uganda needs to develop more renewable energy to expanded access to energy, because
Uganda still suffers from power shortages and less than 16% of the population has access to energy.
In addition, to meet the rapidly growing demand of estimated 8-9% p.a. until 2021, the power
generation capacity has to increase by 9% p.a.
1.1.6 The development of renewable energy is in line with the Bank’s Ten-Year Strategy (TYS) as
it contributes to environmentally sustainable growth. The availability of affordable, reliable, and
sustainable energy will initiate small business development and create jobs for Ugandan people
(inclusive growth); provide access to clean water, increase food security, and the sustainable
exploitation of natural resources, which will lead to a green development pathway that boosts the
well-being of Ugandans (green growth). This project is also consistent with two of the Bank’s High
5 priorities: it provides electricity (Priority No.1), and increases well-being through job creation
(Priority No.5). Increased access to power will spur agriculture, education and health sectors and
1 https://www-cif.climateinvestmentfunds.org/sites/default/files/meeting-documents/srep_14_8_srep_investment_plan_for_uganda_final_version.pdf
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contribute to fighting poverty, reducing inequality, and empowering women and girls; which are all
in line with the Sustainable Development Goals and the Bank’s New Deal on Energy for Africa.
1.1.7 The Ssese islands in Lake Victoria in Uganda are an archipelago of eighty-four (84) islands,
of which 64 are inhabited. The islands are in the Kalangala District in southern Central Uganda, which
does not have any territory on mainland Uganda. The population is estimated to be around 106 500,
although gathering census data from the transient inhabitants can be difficult.
1.1.8 Economy: Most of the population and commercial activities in the islands are focused in
small, clustered fishing communities along the shores. The district is only accessible by ferry, leaving
either from Entebbe or Masaka for the main island, once a day. No bridges exist between islands.
Kalangala District has only one operating power plant; the Bukuzindu Hybrid Solar and Thermal
Power Station with 1.6 MW installed capacity and another 1.5 MW power plant fueled with palm oil
that will be operational soon. Daytime power consumption in commercial and public buildings has a
similar profile to the solar radiation curve, which is almost steady throughout the year, as Uganda lies
along the Equator. With an average daily radiation of 5.1 kW/day, Solar PV systems can also be
employed to supply power to daytime loads to be used in these institutions and will result in savings
on power bills.
1.1.9 Access to electricity will impact Sesse citizens in multiple ways. The electricity will boost the
fishing, tourism, and entertainment industries, and easy contact with the mainland by frequent ferry
transportation or any other mean of transport will boost service delivery and encourage youth to start
small businesses such as hair salons, laundromats, welding, etc. Currently the Kalangala fish is
exported to the Uganda mainland and in the region (i.e. Rwanda) where it is refrigerated then
transported hundreds of kilometres by road. Once the islands have electricity there will be organized
and controlled fishing activity and fish will be processed before it gets exported. Tourism and
entertainment activities are expected to grow, including hotels, restaurants, bars, canteens, golf
courses, camping sites and the provision of short-stay accommodation. The agriculture industry, such
as the palm oil plantations, will also benefit from the electricity to process and pack oil for export.
The volume of trade between Kalangala District and the mainland will grow; which means more
income to islanders involved in business.
1.1.10 Electricity in Ssese islands will improve the education and health sectors, as well as many
other social programs beneficial for children and women, the most vulnerable group. Electricity
access is consistent with the government policy of promoting entrepreneurship amongst the youth,
and creating jobs and wealth for the islanders. Islands may also be transformed into natural parks to
reinforce tourism activities, and related services.
1.2 Project Preparation Grant Objectives
1.2.1 Strategic and specific objectives: The Bank will assist the Government of Uganda (GoU) to
implement this PPG which has the objective to (i) develop the proposed master plan that in turn will
serve to prioritize these investments and be the basis for the electrification of the remaining islands
in an orderly and sequential manner, (ii) develop the grid tied rooftop solar PV systems; hence
introducing net metering as a pilot experience. This will lay the foundation for net metering to be
scaled-up by private users such as businesses and households.
1.2.1 The PPG objectives are to support providing modern energy to Ssese islanders and introduce
the Solar Photovoltaic (PV) net-metering rooftop industry into government buildings around
Kampala, Jinja, Mbale and Entebbe. The project will spur the diversification of economic growth for
Ssese islanders. Electricity on Ssese islands will provide the opportunity to sustainably exploit the
resources present in Lake Victoria and new and innovative ideas among islanders will be used to
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create income-generating activities. The net-metering rooftop solar PV system could create a new
solar panel industry (manufacturing or assembling,) and jobs; and reduce the greenhouse gases.
Specifically, the project will (i) light and power Ssese islands, promote tourism and entertainment
industries, and the food processing industry; (ii) it will value the solar energy resources via net-
metering rooftop solar PV. From this, a solar PV manufacturing and/or assembling industry will
emerge, creating jobs, diversifying income for Uganda citizens and improving the lives of Ugandan
people.
1.3 Rationale for the use of SREP Resources
1.3.1 Uganda is committed to universal access by 2030 as outlined in the SE4All Action Agenda.
Although it is the expectation of the GoU that the majority of rural households will be served by the
national electricity grid by then, it is envisaged that at least 60,500 connections in remote rural
locations will be supplied from isolated mini-grids.
1.3.2 This project has the potential to be highly transformational as it will support the kick-start of
serious investments in decentralized power systems in isolated areas that have not benefited much
over the past decades. In addition, this project will considerably contribute to an increase in access to
energy services from renewable sources.
1.3.3 Net-metered solar PV systems provide the possibility for businesses to self-generate and to
sell any excess power back to the grid under a power exchange system that will be developed as part
of this sub-component. This will lead to an improved energy mix for Uganda and decrease the reliance
on hydro power. At the same time, SREP will be instrumental in opening a new market line for solar
products in Uganda which may over time contribute to a considerable increase in solar electricity
generation in particular and economic growth in general.
1.3.4 Both interventions will in the long-run lead to an increase in the capacity generated from
renewable sources, increase access to modern energy services and products and partially reduce the
reliance on hydro power plants on less power intensive activities.
1.3.5 The SREP financing will be instrumental in opening a new market line for small-scale
decentralized products which will increase electricity generation from renewable sources. SREP
financing will be key to addressing a lack of technical capacity and legal and regulatory frameworks.
As SREP finances the deployment of demonstration units, building technical capacity among key
institutions and reducing barriers to entry, a significant scale-up could be expected in the future.
II. DESCRIPTION OF THE OPERATION
2.1 Description of preparatory activities
2.1.1 Components and main activities: the project preparation grant will serve to:
(i) Development of an Off-grid Electrification Master Plan for Ssese Islands in Lake Victoria.
The Master Plan will accordingly be used by Rural Electrification Agency (REA) to solicit
for construction funds;
(ii) Based on item (i) above, detailed full feasibility studies of the most viable five (5) islands
will be undertaken;
(iii) Technical Assistance (i.e. Solar PV Test Equipment for Solar Mapping & Testing).
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Component 1: Decentralized mini-grids: The SREP funds will pilot and demonstrate the economic,
social, and environmental viability of low carbon emission mini-grids in five islands of Kalangala
District. This demonstration, coupled with a good energy policy, will attract private investments to
provide electricity to the remaining part of the district in the mainland.
Sub-component 1.1: Develop an off-grid master plan for the electrification of islands across
Lake Victoria to determine priority investments. Given the limitation on the availability of
funding available for the mini-grids sub-component, the proposed master plan will serve to
prioritize these investments and be the basis for the electrification of the remaining islands in
an orderly and sequential manner. A consultative process will be undertaken to ensure buy-in
from those communities.
Sub-component 1.2: Based on sub component (1.1) above, detailed full feasibility studies of
the most viable five (5) islands will be undertaken. This will ultimately serve to design and
construct at-least five mini-grids in different islands where impact can be maximized.
Component 2: Decentralized Urban Small-Scale Solar PV: The SREP funds will pilot and
demonstrate the use of net-metering system and the grid tied rooftop solar PV systems will introduce
net metering as a pilot experience to supply homes and supply the surplus power to the grid. This
pilot project will be implemented in urban areas targeting public buildings currently connected to the
national grid, and will have significant demonstration impact.
Sub-component 2.1: to install 10x25KW solar PV rooftop systems in government buildings
around Kampala, Jinja, Mbale and Entebbe to test this technology before a scale-up for
private sector. The short-term objective of this sub-component is to pilot and demonstrate
how solar PV can be used to power homes, and administration buildings. In the long term, the
private sector will scale up to the country level, reducing the grid-connected energy
consumption, and saving GHGs. Solar PV will increase the installed capacity for solar energy
in the energy mix of the country, lower the cost of solar energy systems, release valuable
electricity to other more productive uses and initiate transformational change in the country
by changing the way buildings interact with the power grid.
Sub-component 2.2: Technical Assistance (TA) to develop regulations, legislation,
standards, and strategy and investment guidelines. The objective is to put in place appropriate
policies, laws, regulation, and standards for solar grid-connected rooftop systems. This will
lay the foundation for net metering to be scaled-up by private users such as businesses and
households.
III. ESTIMATED COST OF PREPARATORY ACTIVITIES
3.1 Estimated Cost of Operation
3.1.1 The total cost of preparation grant, net of taxes and customs duties, is estimated at USD 2.3
million. A summary of the estimated operation cost by component and expenditure category is
presented below.
3.1.2 The table below provides an estimation of the total costs associated with these activities as
well as the sources of financing.
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Table 1: Summary of Estimated Operation Cost by Component (in USD million)
GoU SREP Total
Component 1 Decentralized mini-grids
Sub component 1.1 Development of Off-grid
Electrification Master Plan
-
1.30 1.30
Sub-component 1.2 Feasibility Studies of 5 Islands 0.45 0.50 0.95
Component 2 Decentralized Urban Small-
Scale Solar PV
-
Sub-Component 2.1 Solar PV roof top system - 0.40 0.40
Sub-Component 2.2 Technical Assistance (TA) - 0.10 0.10
External Audit 0.05 - 0.20
Sub-Total 0.50 2.30 2.80
Table 2: Summary of Estimated Cost by Expenditure (in USD million)
CATEGORY OF EXPENDITURE USD
1. GOODS:
Solar PV Test Equipment for Solar Mapping & Testing 0.40
2. SERVICES:
Off-grid Electrification Master Plan 1.30
Feasibility Studies of Five Islands 0.95
TA : Develop regulations, legislation, standards, and strategy and investment guidelines 0.10
External Audit 0.05
TOTAL 2.80
3.2 Financing plan
3.2.1 This operation will be financed by a SREP PPG of USD 2.3 million. The SREP Sub-
Committee (SC) has endorsed the Ugandan Investment Plan which identified 3 renewable energy
projects for an envelope of SREP USD 50 million at the November 11th, 2015 meeting in Washington
D.C. The Decision (in Annex I) states that the projects need to be further developed. In that context,
the SREP SC approved USD 2.3 million as a grant through the administration of the African
Development Bank Group to prepare the Decentralized Renewables Development Program. The
GoU’s contribution is estimated at USD 0.5 million or about 18% of the total cost. The contribution
will cover management expenses, including logistics and the provision of staff and premises.
Table 3: Operation Financing Plan
Source of Financing USD Million %
AfDB/SREP 2.30 72
GoU 0.50 18
Total 2.80 100
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Table 4: Breakdown of Financing by Expenditure Category (USD million)
CATEGORY OF EXPENDITURE AfDB/SREP GoU Total
1. GOODS: Solar PV Test Equipment for Solar Mapping & Testing 0.4 - 0.4
2. SERVICES:
Off-grid Electrification Master Plan 1.30 - 1.30
Feasibility Studies of Five Islands 0.50 0.455 0.95
Develop regulations, legislation, standards, and strategy and
investment guidelines
0.10 - 0.1
External Audit 0.05 0.05
TOTAL 2.30 0.5 2.80
IV. MODE OF PROCUREMENT OF SERVICES AND GOODS
The Grant Recipient, will be the Government of Uganda. The implementing agency for the proposed
PPG implementation will be Rural Electrification Agency (REA) under the Ministry of Energy and
Mineral Resources Development (MEMD). Hence, the responsibility for the procurement of goods
and services associated with the PPG will remain with the implementing agency with government
oversight
4.1 Procurement of Goods
4.1.1 Procurement of Goods necessary for the execution of the Project shall be carried out in
accordance with the Bank’s Procurement Policy for Bank Group Funded Operations dated October
2015, as amended from time to time, and as further set out below:
Procurement of goods for the Project estimated to cost USD 400,000 in aggregate shall be carried
under International Competitive Bidding procedures and using the Bank’s Standard or Model
Solicitation Documents, with notifications at national level. Goods procured under this method would
include Solar PV Test and Mapping Equipment.
4.2 Procurement of Services
4.2.1 Procurement of Services necessary for the execution of the Project shall be carried out in
accordance with the Bank’s Procurement Policy for Bank Group Funded Operations dated October
2015 as amended from time to time, and as further set out below:
(i) Selection of consultants for consulting services for Development of an Off-grid Master Plan
for Islands on Lake Victoria and feasibility studies for five (5) solar PV mini-grids shall be
undertaken through an international shortlist under Quality and Costs Based Selection
method.
(ii) Development of regulations, legislation, standards, and strategy and investment guidelines
may be undertaken by a firm under Quality and Cost Based Selection Method.
(iii) Contracts for Individual Consultants necessary for the project shall be undertaken using an
Individual Consultants Selection process outlined in the Bank’s Procurement Policy.
(iv) Audit of the grant if not undertaken by Office of the Auditor General shall be undertaken by
an external audit firm selected through Least Cost Selection method.
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4.3 Review Procedure
4.3.1 Except as the Bank shall otherwise determine by notice to the Recipient, all contracts for
goods or services shall be subject to prior review by the Bank
4.4 Procurement Plan
4.4.1 The Recipient shall prepare the Procurement Plan for the Grant. The Procurement Plan shall
set forth the different procurement methods or consultant selection methods, estimated costs, prior
review requirements and timeframe as agreed between the Recipient and the Bank. Any proposed
revision of the Procurement Plan shall be submitted to the Bank for its prior approval.
4.5 General Procurement Notice and Review Procedure
4.5.1 A General Procurement Notice prepared by mutual agreement will be published on MEMD
and on the Bank’s websites after the approval of the proposed PPG. The following documents will be
submitted to the Bank for review and approval prior to publication: call for expression of interest,
requests for proposals, shortlists, report on the evaluation of consultants’ technical proposals, and
draft consultants’ contracts.
V. IMPLEMENTATION SCHEDULE
5.1 Project Preparation Timetable
5.1.1 It is expected that the studies (i.e both Master Plan & Full Feasibility Studies) and the
purchase of the Solar PV Test & Mapping Equipment will take a period of fifteen (15) months to be
implemented including the procurement phase.
Deliverables Deadline
Off-grid Development Master Plan for Islands on Lake Victoria and
Full feasibility studies for five solar PV mini-grids
April 2018
Procurement of consultancy services August 2017
Purchase of Solar PV Equipment for Solar Mapping and Testing April 2018
5.2 Draft of consulting and Procurement Schedule
5.2.1 The draft of procurement plan is presented in Annex III.
5.3 Organization and Management of Bank Assistance
5.3.1 In executing the PPG, the Procurement and Fiduciary function will be ensured by REA. The
funds will be channelled through African Development Bank (AfDB). Procurement of Consultancy
Services and Goods will be done in accordance with the AfDB’s procurement rules.
VI. FINANCIAL MANAGEMENT
6.1 Disbursement method and applications of amount disbursed
6.1.1 The implementing agency through the Grant Recipient will request the SCF Trust Fund
through the Bank. The Bank will provide from the CIF resources, the SREP Grant to the Recipient in
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accordance with the Grant Agreement and the General Conditions. Two disbursement methods can
apply: Special Account (SA) and/or Direct Payment methods.
6.1.2 Disbursement. Resources of the PPG will be disbursed according to the procedures set forth
in the Bank’s Disbursement Handbook. Disbursement may be suspended if amounts are not being
used for the agreed purpose or the Recipient is in breach of terms and conditions of the financing
agreement or any Bank rules. The disbursement of funds will be conditional upon the entry in force
of the Grant Agreement and the Special Account Method will be used. The Recipient shall ensure
that all amounts deposited in the Special Account are accounted for and their use reported prior to the
deadline for the last disbursement. After this date, the Recipient must immediately refund to the Bank
any advances still unaccounted for or remaining in the special account. The account will be managed
by the fiduciary team.
6.1.3 Currency of Disbursements: All disbursements made by the Bank to the Recipient shall be
denominated in US Dollars.
6.1.4 Deadline for Final Disbursement: The deadline for final disbursement shall be 30 June
2018, or such later date as shall be agreed upon in writing between the Recipient and the Bank.
6.1.5 Application of Disbursements: Amounts disbursed on account of the Grant shall be applied by
the Recipient solely for the purposes for which they were disbursed.
6.2 Audit and Reports
6.2.1 Reports. The current financial management systems of the Recipient will be used to manage
the proceeds of the PPG. The Accounting Officer of REA will be responsible for proper maintenance
of accounting records, timely provision of financial reports and ensuring proper accountability of
public funds in accordance with International Public Sector Accounting Standards and applicable
national policies and procedures. The financial reports will be subject to both internal and external
audits.
6.2.2 Audit: The utilization of the PPG proceeds will be conducted by the Recipient in order to
ensure that all expenditures and supporting documents’ review is performed and certified by an
external auditor acceptable to the Bank. The Executing Agency will be responsible for submission of
complete audit reports (including management letter and management responses annually and at the
end of the PPG) to the Bank within six months after the end of each fiscal period of the Recipient.
VII. LEGAL FRAMEWORK
7.1 Legal Instrument
7.1.1 The legal instrument to be used for financing of the project is an AfDB-SCF Trust Fund grant
to the Republic of Uganda.
7.2 Conditions Associated with Bank’s Intervention
7.2.1 Conditions Precedent to Entry into Force: The Grant Agreement shall enter into force on the
date of signature by the Recipient and by the Bank.
7.2.2 Conditions precedent to first disbursement: The obligation of the Bank to make the first
disbursement of the Grant shall be conditional upon the entry into force of the Grant Agreement, and
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the submission of evidence by the Recipient, satisfactory in form and substance to the Bank, in
fulfilment of the following condition: The opening of a USD designated special account at a bank
acceptable to the Bank for receipt of the proceeds of the Grant.
7.2.3 Other Conditions: The Recipient shall submit quarterly progress reports on the status of
implementation of the Project, in a form acceptable to the Bank.
VIII. CONCLUSION AND RECOMMENDATIONS
8.1 Conclusion
8.1.1 The conduct of the aforementioned project will help to develop the Decentralized Renewables
Development Program in Uganda and, in the long-run, contribute to strengthen the share of renewable
energy in national electricity mix, create wealth and jobs while avoiding GHG; and improve the well-
being of Ssese islanders especially the most vulnerable group children and women by getting
education and health products of quality. It will also help to provide the beneficiary with all elements
needed to design and size the off-grid program as well as test the net metering system. It will also
help to remove the barriers to private investors in the renewable energy sector, a strategy that will
help support young entrepreneurs while providing electricity to even more isolated communities in
the country. Lastly, the project will contribute to achieve the Uganda 2040 vision.
8.2 Recommendations
8.2.1 It is recommended that the Board of Directors approve the proposal to implement a SREP
project preparation grant amounting to USD 2.3 million to the Republic of Uganda as per paragraph
8.5 of the Bank’s “Climate Investment Fund – Guidelines for the Administration and Utilization of
Preparation Grants” to finance the studies to prepare the “Decentralized Renewables Development
Program” under the conditions set forth in this report.
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ANNEX I: SREP SUB-COMMITTEE DECISION FOR UGANDA
1. The SREP Sub-Committee, having reviewed document SREP/SC.14/8, SREP Investment
Plan for Uganda, endorses the investment plan as a basis for the further development of the projects
and programs foreseen in the plan and takes note of the request for USD 50 million in SREP funding.
2. The Sub-Committee recalls its decision on the distribution of grant and non-grant resources
to the SREP new pilot countries and reaffirms that the amount of grant funding for the implementation
of the investment plan should not exceed USD 22.5 million.
3. The Sub-Committee requests the Government of Uganda, in the further development of the
proposed projects and programs, to take into account comments made at the meeting and any
additional written comments submitted by Sub-Committee members by November 27, 2015, and to
respond in writing to questions raised during the meeting and in subsequent written comments. The
Sub-Committee also requests the Government of Uganda to provide an update on the progress of the
development of the geothermal component of the investment plan in a year’s time for a possible
review of the component.
4. The Sub-Committee
a) reaffirms that all allocation amounts are indicative for planning purposes and that approval of
funding will be on the basis of high-quality investment plans and projects, subject to the
availability of funds;
b) notes that in case projects under the investment plan cannot be funded with SREP resources,
the development of high-quality renewable energy projects could be a basis to seek funding
from other climate finance sources, such as the Green Climate Fund;
c) approves USD 2.3 million as preparation grant for the project entitled, Decentralized
Renewables Development Program (AfDB);
d) approves USD 1.875 million as preparation grant for the project entitled, Wind Resource Map
and Pilot-Wind Power Development Project (AfDB);
e) takes note of the estimated budget of USD 420,000 for MDB project preparation and
supervision services for the project entitled, Uganda: 130 MW Geothermal Development
Program (AfDB), and approves USD 210,000 as a first tranche of funding for such services;
f) takes note of the estimated budget of USD 150,000 for MDB project preparation and
supervision services for the project entitled, Decentralized Renewables Development
Program (AfDB), and approves USD 75,000 as a first tranche of funding for such services;
and
g) takes note of the estimated budget of USD 150,000 for MDB project preparation and
supervision services for the project entitled, Wind Resource Map and Pilot-Wind Power
Development Program (AfDB), and approves USD 75,000 as a first tranche of funding for
such services.
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ANNEX II: SCHEDULE OF ACTIVITIES
Activity Agency Responsible Deadline
- Preparation of the Present memorandum
- CLSD for translation
- SEGL processing and editing
- PPG Approval
- EOI for the recruitment of a consultant to develop
an Off-grid Development Master Plan for Islands
on Lake Victoria and Full feasibility studies for
five (5)solar PV mini-grids
- Contract start for develop an Off-grid Development
Master Plan for Islands on Lake Victoria and Full
feasibility studies for five (5)solar PV mini-grids
- Submission of report on the Development Master
Plan for Islands on Lake Victoria and Full
feasibility studies for five (5)solar PV mini-grids
- EOI for to Develop regulations, legislation,
standards, strategy and investment guidelines
- Contract start for the develop regulations,
legislation, standards, strategy and investment
guidelines
- Submission of report on the Development of
regulations, legislation, standards, strategy and
investment guidelines
- SPN publication for the Purchase and Installation
of 10x25kW solar PV Equipment for Solar
Mapping and Testing
- Contract start for the Purchase and Installation of
10x25kW solar PV Equipment for Solar Mapping
and Testing
- Reception of the installed rooftop solar PV
equipment
- EOI for External Audit
- Contract start for External Audit
- Submission of Audit report
- Completion of Study Project
AfDB/CIF Secretariat
AfDB/CLSD
AfDB/SEGL
AfDB
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
AfDB and REA
January 2017
January 2017
February 2017
February 2017
March 2017
August 2017
August 2018
March 2017
August 2017
November 2017
July 2017
November 2017
April 2018
November 2017
April 2018
30 June 2018
30 June 2018
III
ANNEX III: PROCUREMENT GOODS AND CONSULTING SERVICES SCHEDULES.
Procurement Packages Methods and Time Schedule for 18 months
Package description Lot
Number
Lot Description Estimated
Amount in
USD (m)
Procurement
Method
Pre-or Post-
Qualification
Dom. or
Regional
Preference
Prior
or Post
Review
SPN
Publication
Date
Contract Start
Date
Comments
Purchase and Installation of
10x25kW solar PV Equipment
for Solar Mapping and Testing
2 Lot 1: Kampala and Entebbe 0.4 ICB Post N/A Prior July 2017 November 2017
Lot 2: Jinja and Mbale
Total Cost
0.4
Consulting Services: Selection Method and Time schedule for 18 Months
Description Selection
Method
Lump sum or
Time-Based
Estimated Amount
in USD (m)
Prior/Post
Review
EOI Publication
Date
Contract Start
Date
Comments
Off-grid Development Master Plan for Islands on Lake
Victoria Full feasibility studies for five (5)solar PV mini-
grids
QCBS Lump sum 1.30 Prior Review March 2017 August 2017
Develop regulations, legislation, standards, strategy and
investment guidelines
QCBS Lump sum 0.1 Prior Review March 2017 August 2017
External audit LCS Lump sum 0.05 Prior Review November 2017 May 2018 15 000USD/year
Individual Consultants IC Time-based 0.95 Prior Review
to be determined
Total Cost
2.4