EuropeAid/135818/IH/SER/TZ
Service Contract № FED/2016/375-441
Technical Assistance for the
implementation of renewable energies
and energy efficiency projects,
including regulatory reforms" (Lot 2)
INCEPTION REPORT
17 August 2016
(Version 1.1)
This project is financed by the
European Union
This project is implemented
by MWH
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
This Project is implemented by Consortium led by
in cooperation with:
Mott MacDonald
PESCARES Italia Srl
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
This technical assistance operation is financed by the European Union, under the Cotonou Agreement, through the
European Development Fund (EDF). The EDF is the main instrument funded by the EU Member States for providing
Community aid for development cooperation in the African, Caribbean and Pacific States and the Overseas
Countries.
The authors take full responsibility for the contents of this report. The opinions expressed do not necessarily
reflect the views of the European Union.
This report is prepared solely for the use and benefit of the Contracting Authority. It is the result of an
independent review, and neither the MWH Consortium, nor the authors accept or assume any responsibility or
duty of care to any third party.
Report Title
Inception report
Version
Version 2.0
Date
17 August 2016
Prepared By
Reviewer
Niels Juhl Thomsen, KE1: Team leader/ Power Engineer
Alejandro Saenz-Core, KE2: EE and RE Economist and Financing expert
Anca Andreescu, Project Manager MWH
iii
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
BASIC PROJECT DATA
Project
Title:
Project
ref. no:
Service
contract
No:
Date of
contract
signature:
Contract
duration:
Total
contracted
amount
(Euro):
Technical Assistance for the implementation of renewable energies and energy efficiency
projects, including regulatory reforms (Lot 2)
EuropeAid/135818/IH/SER/TZ Recipient
Ministry of Land, Water, Energy, and
organisation:
Environment, through Zanzibar Electricity
Corporation (ZECO)
Contact person:
Maulid Shiraz Hassan
Address, telephone
number and e-mail:
Head Office P:O:Box 235, Gulioni
+255 774 386 247
[email protected]
FED/2016/375-441
Contracting
The Alternate National Authorising
Authority:
Officer (NAO)
Contact person:
Principal Secretary
Address, telephone & Ministry of Finance
fax number and eP.O.BOX 1154 Zanzibar, Tanzania
mail:
E: [email protected]
T: +255 778 666664/5
th
7 June 2016
Contractor’s name
MWH SA/NV
and address:
A: Nysdam Office Park, Avenue Reine
Astrid, 92, B-1310 La Hulpe, Belgium
www.mwhglobal.com
24 months
Contact person:
Ms Anca.Andreescu
Address, telephone & A: Nysdam Office Park, Avenue Reine
fax number and eAstrid, 92, B-1310 La Hulpe, Belgium
mail:
T: +32 (0) 2 655 22 78
M: +45 20 60 18 24
F: +32 (0) 2 655 22 80
E: [email protected]
1.152.700,00 EUR
Project Team Leader
Mr Niels Juhl Thomsen
Address, telephone
E: [email protected]
number and e-mail:
M: +255 (0) 774 771 229
Introduction
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regulatory reforms (Lot 2)
Inception Report
TABLE OF CONTENTS
BASIC PROJECT DATA ........................................................................................................................................... IV
TABLE OF CONTENTS ............................................................................................................................................. V
LIST OF ANNEXES ......................................................................................................................................................... VIII
LIST OF ACRONYMS ........................................................................................................................................................ IX
1
INTRODUCTION .............................................................................................................................................11
2
START SITUATION ..........................................................................................................................................14
3
4
2.1
COUNTRY BACKGROUND ..................................................................................................................................... 14
2.2
CURRENT STATE OF AFFAIRS IN THE ENERGY SECTOR................................................................................................. 14
2.2.1
The Power Sector ................................................................................................................................... 14
2.2.2
Energy Demand ...................................................................................................................................... 17
2.2.3
Current Energy Sector Priorities in Zanzibar Economic and Energy Policy Documents .......................... 17
2.2.4
Current Regulatory Vacuum ................................................................................................................... 18
2.2.5
Energy Efficiency .................................................................................................................................... 18
2.2.6
Institutions involved in the Energy Sector in Zanzibar ........................................................................... 19
2.3
RELEVANT PREVIOUS AND ONGOING PROGRAMMES/PROJECTS .................................................................................. 20
2.4
PROGRESS OF LOT 1 ........................................................................................................................................... 21
2.5
UPDATE OF THE TERMS OF REFERENCE ................................................................................................................... 22
2.6
ISSUES IDENTIFIED DURING INCEPTION PHASE .......................................................................................................... 22
2.6.1
Delays in implementation of EU Project Lot 1 ........................................................................................ 22
2.6.2
MCC withdrew its support in March 2016 ............................................................................................. 23
2.6.3
USAID is re-holding upcoming support. ................................................................................................. 23
2.6.4
Initial Training on PPPs and RE and EE projects requested by Contracting Authority ........................... 23
2.6.5
Electricity tariff does not sustain financial balance of ZECO. ................................................................. 23
2.6.6
Energy Statistics is deficient ................................................................................................................... 24
2.6.7
Vision for the energy sector is deficient ................................................................................................. 24
2.6.8
The SIDA Programme ............................................................................................................................. 24
2.6.9
Electricity Transmission Facilities ........................................................................................................... 24
2.6.10
Roads and terrestrial transportation paths ......................................................................................... 24
PROJECT SYNOPSIS ........................................................................................................................................25
3.1
OVERALL PROJECT OBJECTIVE ............................................................................................................................... 25
3.2
PROJECT PURPOSE ............................................................................................................................................. 25
3.3
RESULTS TO BE ACHIEVED..................................................................................................................................... 25
3.4
RELATION OBJECTIVES-RESULTS ............................................................................................................................ 25
3.5
RISKS AND ASSUMPTIONS .................................................................................................................................... 27
3.5.1
Assumptions ........................................................................................................................................... 27
3.5.2
Risks ....................................................................................................................................................... 28
METHODOLOGY AND APPROACH ..................................................................................................................31
ACTIVITY 1: OPPORTUNITIES ASSESSMENT OF RE/ EE TECHNOLOGIES FOR ZANZIBAR ................................................................ 31
Activity 1.1
Prepare Database for RE and EE .................................................................................................................31
Activity 1.2
Assessment of Results/Outcomes of Lot 1 Feasibility Studies ...................................................................32
Introduction
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Inception Report
Activity 1. Opportunity Assessment on RE & EE ................................................................................................................32
ACTIVITY 2: LEGAL, REGULATORY AND INSTITUTIONAL FRAMEWORK FOR ZANZIBAR FOR RE & EE ................................................ 32
Activity 2.1
Review of Existing Regulatory Experiences and Best Practices ..................................................................32
Activity 2.2
Assessment of Effective Financial Incentives .............................................................................................33
Activity 2.3
Drafting legal, regulatory and institutional framework ..............................................................................33
ACTIVITY 3: SUPPORTING MECHANISMS INTRODUCED BY RGOZ AND GEARED TO THE PRIVATE PROJECT PROMOTERS ....................... 33
Activity 3.1
Review of international practices for supporting mechanisms (Enabling Framework) ..............................33
Activity 3.2
Assessment of suitability of support mechanisms .....................................................................................33
Activity 3.3
Preparing strategy of private sector supporting mechanisms ....................................................................34
ACTIVITY 4: TECHNICAL SUPPORT TO THE RGOZ FOR PRIVATE PROJECTS IMPLEMENTATION......................................................... 34
Activity 4.1
Support RGoZ in Private Sector Project Preparation ..................................................................................34
Activity 4.2
Prepare basis for decision on procurement procedures ............................................................................35
Activity 4.3
Possible Pilot projects ................................................................................................................................35
Activity 4.4
Assessing Possibilities for Biomass Power Plant Projects and Waste to Energy Options ...........................35
ACTIVITY 5: TECHNICAL SUPPORT TO THE RGOZ FOR STATE-RUN PROJECTS IMPLEMENTATION..................................................... 35
Activity 5.1
Identify Projects Suitable for Implementation by Government .................................................................36
Activity 5.2
Prepare Implementation Plan for Priority and Pilot Projects .....................................................................36
Activity 5.3
Assess Financing Options for Larger State-Run Projects ............................................................................36
Activity 5.4
Support to RGoZ for Implementing Projects ..............................................................................................36
ACTIVITY 6: TRAINING AND SUPPORT LEARNING PROCESS ..................................................................................................... 36
Activity 6.1
Perform Training Needs Assessment..........................................................................................................37
Activity 6.2
Prepare Training Plan .................................................................................................................................37
Activity 6.3
On the Job Training and Learning Processes ..............................................................................................37
ACTIVITY 7: COMMUNICATION AND VISIBILITY ................................................................................................................... 38
5
6
7
Activity 7.1
Prepare Communication and Visibility and Plan ........................................................................................38
Activity 7.2
Prepare Social Media Communication Strategy .........................................................................................39
Activity 7.3
Implement communication and visibility plan ...........................................................................................39
PROJECT RESOURCES .....................................................................................................................................39
5.1
HUMAN RESOURCES INPUT .................................................................................................................................. 39
5.2
IE BUDGET BREAKDOWN ..................................................................................................................................... 40
PROJECT MANAGEMENT AND COORDINATION .............................................................................................41
6.1
ROLES AND RESPONSIBILITIES ............................................................................................................................... 41
6.2
PROJECT ORGANISATION ..................................................................................................................................... 41
REPORTING AND DELIVERABLES ....................................................................................................................42
7.1
6-MONTHLY PROGRESS REPORTS .......................................................................................................................... 42
7.2
DRAFT FINAL REPORT AND FINAL REPORT ............................................................................................................... 42
7.3
TECHNICAL REPORTS........................................................................................................................................... 43
7.4
REPORT SUBMISSION AND APPROVAL PROCEDURE .................................................................................................... 43
8
MONITORING AND EVALUATION ...................................................................................................................45
9
LIST OF REFERENCES ......................................................................................................................................46
10
ANNEXES .....................................................................................................................................................48
ANNEX A: PROJECT TERMS OF REFERENCE ........................................................................................................................ 49
ANNEX B: UPDATED LOGFRAME ..................................................................................................................................... 50
ANNEX C: DRAFT WORK PLAN ....................................................................................................................................... 53
Introduction
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ANNEX D: OUTLINES OF COMMUNICATION AND VISIBILITY PLAN .......................................................................................... 58
I.
PURPOSE OF COMMUNICATION AND VISIBILITY ACTIVITIES ............................................................................................ 58
II.
OVERALL COMMUNICATION OBJECTIVE .................................................................................................................... 58
III.
COMMUNICATION GOAL AND OBJECTIVES ................................................................................................................ 58
IV.
KEY MESSAGES ................................................................................................................................................... 59
V.
TARGET GROUPS .................................................................................................................................................. 59
VI.
COMMUNICATION TOOLS...................................................................................................................................... 59
ANNEX E: INDICATIVE ALLOCATION OF HUMAN RESOURCES ................................................................................................. 60
ANNEX F: LIST OF STEERING COMMITTEE MEMBERS AND TECHNICAL COMMITTEE MEMBERS .................................................... 62
List of the Steering Committee Members of the Zanzibar Renewable Energy Programme ..............................................62
List of the Technical Committee Members........................................................................................................................62
ANNEX G: MINUTES AND LIST OF PARTICIPANTS OF ZANZIBAR ENERGY DEVELOPMENT PARTNERS MEETING, 13TH JUNE 2016......... 63
ANNEX H: LIST OF STAKEHOLDERS. MEETINGS HELD DURING THE INCEPTION PHASE ................................................................. 67
List of Stakeholders identified ...........................................................................................................................................67
List of Stakeholders Meetings held during Inception Period .............................................................................................67
Introduction
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Inception Report
List of Annexes
Annex A
Project Terms of Reference
Annex B
Updated LogFrame
Annex C
Draft Work Plan / Allocation of expert input/month
Annex D
Outlines of Communication and Visibility Plan
Annex E
Indicative Allocation of Human Resources per Activities
Annex F
List of Steering Committee Members and Technical Committee Members
Annex G
Minutes and List of Participants of Zanzibar Energy Development Partners Meeting, 13 th June
2016
Annex H
List of Stakeholders. Meetings held during the Inception Phase
Introduction
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regulatory reforms (Lot 2)
Inception Report
List of Acronyms
ACP
African, Caribbean and Pacific Countries
ADF
African Development Fund
AEGF
Africa Energy Guarantee Fund
AfDB
African Development Bank
CA
Contracting Authority
CTF
Clean Technology Fund
DoEM
Department of Energy and Minerals
DP
Development Partners
EAC
East African Community
EBRD
European Bank for Reconstruction and Development
EC
European Commission
EDF
European Development Fund
EE
Energy Efficiency
EEP
Energy and Environment Partnership
EIB
European Investment Bank
ESIA
Environmental and Social Impact Assessment
ESIRSR
Electricity Supply Industry Reform Strategy Roadmap
EU
European Union
EUD
EU Delegation
FIT
Feed-in Tariff
GCCA
Global Climate Change Alliance
GEEREF
Global Energy Efficiency and Renewable Energy Fund
GHG
Greenhouse Gas
GIZ
Die Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
IPP
Independent Power Producer
KE
Key Expert
KfW
Kreditanstalt für Wiederafbau
MCA
Millennium Challenge Account
MCC
Millennium Challenge Corporation
MDGs
Millennium Development Goals
MKUZA
Swahili acronym for Zanzibar Strategy for Growth and Reduction of Poverty
MoF&P
Ministry of Finance and Planning
MoFEA
Ministry of Finance and Economic Affairs
MoU
Memorandum of Understanding
NGOs
Non-Governmental Agencies
NKE
Non-Key Expert
PPA
Power Purchase Agreement
PPIAF
Public-Private Infrastructure Advisory Facility
PPP
Public-Private Partnership
PV
Photo-Voltaic
Introduction
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reforms (Lot 2)
Inception Report
RE
Renewable Energy
RES
Renewable Energy Sources
RGoZ
Revolutionary Government of Zanzibar
SCCF
Special Climate Change Fund
SEFA
Sustainable Energy for Africa
SPPA
Standard Power Purchase Agreement
TA
Technical Assistance
TANESCO
Tanzania Electricity
TL
Team Leader
ToR
Terms of Reference
WB
World Bank
ZCBE
Zanzibar College of Business Education
ZECO
Zanzibar Electricity Company
ZIP
Zanzibar Investment Policy
ZURA
Zanzibar Utility Regulatory Authority
Introduction
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Inception Report
1
INTRODUCTION
This Inception Report describes how assistance will be delivered under the EU project “Technical Assistance
for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot
2)” (EuropeAid/135818/IH/SER/TZ), Service Contract №FED/2016/375-441, hereafter interchangeably referred to
as “the Project” and/or “RE & EE Lot 2”. It is financed by the European Union, under the Cotonou Agreement,
through the European Development Fund (EDF). The EDF is the main instrument funded by the EU Member
States for providing Community aid for development cooperation in the African, Caribbean and Pacific States and
the Overseas Countries.
1
The Project is part of the comprehensive EU programme in support of the RE and EE Initiative in Zanzibar
that consisted of the preparatory TA “Bridging Phase”, a contract for supply and installation of wind and solar
measurement equipment (under implementation) and two (2) TA contracts for the implementation of the
programme via 2 lots:
2
>
Lot 1: Wind Resource and Solar Potential Analysis and full scale Feasibility Studies of wind and solar
farms in the perspective of developing 40 MW wind farms in Unguja, 4 MW in Pemba and solar
farms1.
>
Lot 2: Technical Assistance for the implementation of renewable energies and energy efficiency
projects, including regulatory reforms – the present project.
The RE & EE Lot 2 project is a 24-month technical assistance effort, whose main objective is to support the
development of renewable energies in Zanzibar, promote implementation of energy efficiency and adequate
regulatory and institutional framework through appropriate transfer of know-how and capacity developments of
Key Stakeholders.
3
The contract is implemented by an international consortium, led by MWH SA/NV in cooperation with Mott
MacDonald and PESCARES Italia Srl. The project contract was signed on 7th June 2016 and the project
commenced on 13th June with Zanzibar Energy Development Partners Meeting considered also the project kick-off
meeting.
4
The Beneficiary country is the United Republic of Tanzania – Zanzibar, and the Contracting Authority is The
Alternate National Authorizing Officer (NAO) representing the Revolutionary Government of Zanzibar (RGoZ).
1
1
This 24-month project is divided into three project phases as follows:
>
Inception Phase: Months 1.5 (Inception Report: week 6).
>
Implementation Phase: Months 2-23 (draft Final Report: end of month 23).
>
Completion Phase: Month 24 (Final Report: end of month 24).
During the Inception Phase (6 weeks), the Project Team established a well-founded basis for the Project’s
implementation by setting up a project office at the Zanzibar Electricity Company (ZECO) and initiated the
inception activities in accordance with the ToR and Technical Proposal. In this period, the Project Team
concentrated mostly on:
2
>
Familiarising with the state of play in the field and analyse the project start -up situation.
>
Meeting all the (available) stakeholders.
>
Reviewing the available project background information and lessons learnt.
1
The power plant sizes should be part of this assignment allowing for the absorption capacity of the grid and other technical-economic
constraints
Introduction
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regulatory reforms (Lot 2)
Inception Report
>
Compiling a database of all relevant documentation obtained.
>
Adjusting the project activities on the basis of the inception period findings .
>
Updating the project work plan considering also the progress of lot 1 activities and partners expectations.
>
Charting the overall project planning for the forthcoming months of the Project implementation.
The Inception Phase was extended by 2 weeks by the Contracting Authority’s no objection letter dated 22nd
June and the Inception Report due date was fixed for 27th July 2016.
3
Next, the Project Implementation Phase will concentrate on the preparation and delivery of specified
activities designed to deliver the agreed results of the Project. It will cover a period of 22 months (months 2 to 23)
and includes seven major activities:
4
>
Activity 1: Opportunities Assessment of RE/EE Technologies for Zanzibar.
>
Activity 2: Legal, Regulatory and Institutional Framework for Zanzibar for RE & EE .
>
Activity 3: Supporting Mechanisms Introduced by the RGoZ and Geared to the Private Project
Promoters.
>
Activity 4: Technical Support to the RGoZ for Private Projects Implementation .
>
Activity 5: Technical Support to the RGoZ for State-run Projects Implementation.
>
Activity 6: Training and Know-How Transfer.
>
Activity 7: Communication and Visibility.
Finally, the Project Completion phase will end up with the preparation and delivery of the Final Project
Report and deliverables (24 month).
5
This Inception Report is the first deliverable under the EE & RE Lot 2 project. It contains a short description of
the background, some of our initial thoughts gathered from the inception mission meetings with key stakeholders
in Zanzibar in July 2016.
6
The report sets out minor revisions to the scope of work and the implementation plan, hence a revised workplan and schedule is provided. The report also provides a list of documents collected/reviewed to date. The
consultants also set out some of the initial findings, conclusions and next steps for the project.
7
8
9
The report sections content covers the following main aspects:
>
Section 1: Introduces the project, briefly describes the Inception period and the content of Inception
Report, as well as its initial findings.
>
Section 2: Defines the start situation of the project.
>
Section 3: The project synopsis.
>
Section 4: Presents the adjusted project methodology and approach for implementation of the
project activities.
>
Section 5: The available project resources.
>
Section 6: Describes the project organisation and management structure.
>
Section 7: Describes the project reporting and deliverables.
>
Section 8: Covers monitoring and evaluation.
The Annexes contain additional information complementing the information provided in each section.
Initial findings. The Project core team addressed the project’s assumptions and the risk of data availability,
identifying the main stakeholders and interviewing them, requesting for information, and understanding the
stakeholders’ capacity building need vis-à-vis the project development and implementation.
10
Introduction
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Inception Report
Despite the existence of the Zanzibar 2020 Vision, which proposes more diversified priorities and objectives
than the MKUZA II, RGoZ, October 2011; the team of consultants found a lack of shared Vision and coordination
among the stakeholders, which also reflects a lack of coordination at donors’ level. Unfortunately, this produces
overlap, loss of time and money not only on the beneficiary’ side but also in the donors’ one. Many reports have
been prepared, describing the energy sector in many details and recommending policies for their specific focus.
However, the status of these documents is as posts from parties and not compiled into a Government adopted
Vision for the sector as a whole.
11
In all the meetings with stakeholders, the team of consultants has highlighted the need for a common Vision
in order to engage and create consensus and convey the message on building and enabling environment for the
private sector investment.
12
In addition, during these meetings the team of consultants discussed the capacity building gaps and needs
covering various topics, such as Power Demand Methods and tools, and Public-Private Partnership training,
among others.
13
14
Initial conclusions and next steps.
>
Absence of common Vision would create problems in developing strategies, strategic plans, and
action plans putting at risk the implementation of tangibles RE and EE projects.
>
Absence of standards, internal rules and codes, which is fundamental for controlling efficiency of
the electric devices entering Zanzibar.
>
Absence of methods for applying international Best Practices.
>
The next steps will be focused on developing the project’s scope of work, encouraging stakeholders’
in adopting a common vision, and providing capacity building to main project beneficiaries (in
particular, ZECO) meeting their needs and fulfilling the gaps.
Acknowledgement
Finally, MWH consortium would like to acknowledge the kind cooperation provided by the staff of ZECO to
the project team during the inception report. In addition, we wish to thank the officials of the Ministry of Finance
and other public stakeholders who kindly shared their time and insights of the development of the EU RE & EE Lot
2 as a part of the EU support to the energy sector in Zanzibar.
15
Introduction
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2
2.1
START SITUATION
Country Background
Zanzibar is a semi-autonomous region of Tanzania in Eastern Africa. It is composed of the Zanzibar
Archipelago (in the Indian Ocean), at 25–50 kilometres (16–31 mi) off the coast of the mainland, and it consists of
many small islands and two large ones: Unguja (the main island, referred to informally as Zanzibar) and Pemba.
The capital is Zanzibar City, located on the island of Unguja. Its historic centre is Stone Town, which is a World
Heritage Site. Unguja has an area of 1,464 square kilometres while Pemba has a land area of 868 square
kilometres. Zanzibar has a small but rapidly growing population. According to the 2012 Census the total
population of Zanzibar was 1.3 million inhabitants of whom 45.5% is living in Mjini Magharibi Region that is one of
three regions on Unguja and the Regions with Zanzibar town.2
16
In 2012 the average Household Size in Tanzania Mainland was 4.8 persons per household and 5.1 people per
household in Zanzibar. The population growth rate is estimated to be 3.1 % annually, which exerts an increasing
pressure on the infrastructure and resources, including the energy supply structures and resources. The gross
domestic product (GDP) estimates at current prices reached TZS 1,198.0 billion in 2011 compared to TZS 946.8
billion in 2010.
17
The GDP growth rate was 6.4 % in 2010, 6.8 % in 2011, and increased in 2014 to 7.2 %. The major activities
contributing to the GDP are Agriculture, Fishing, Trade, Tourism, and Services.
18
Zanzibar's main contributors to GDP are spices, raffia, and tourism. In particular, the islands produces cloves,
nutmeg, cinnamon, and black pepper.
19
The majority of the energy use is fuel wood for domestic use and it is mostly used as open fire for cooking.
Some more efficient devices are available, but not widely used. Fossil fuels are used in the urban commercial and
domestic sectors. In the urban areas the use of bottled gas for cooking is getting common, while charcoal remains
the most widely used. Electricity use for cooking is still rare, even though electric appliances for cooking are
available on the market. Previously kerosene was widely used for cooking in urban areas, but it has now been
replaced by bottled gas.
20
The land transport sector is running predominately on fossil fuels. The majority of marine transport is based
on fossil fuel as well, sailing being very rare.
21
Both Unguja and Pemba islands have a well-developed road network, no community being further than 15
Km from a main road. The remotest parts of both islands are their Northern tips which are only reachable by
unsealed roads. However, roads are narrow at some points and harbours are not well equipped to handle large
and heavy cargo.
22
2.2
Current State of Affairs in the Energy Sector
2.2.1
The Power Sector
The Department of Energy and Minerals (DoEM) within the Ministry of Land, Housing, Water, and Energy
(MoLWEE) has the overall responsibility for energy issues in Zanzibar. Electricity is supplied by the national power
utility Zanzibar Electricity Corporation (ZECO), which is fully owned by the Revolutionary Government of Zanzibar
(RGoZ).
23
2
Wikipedia
Start Situation
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Inception Report
The power sector in Zanzibar was for a long period characterized by different problems such as load shedding
due to lack of power capacity, high technical and non-technical losses, tariffs that do not fully reflect costs, low
collection rates, and low capacity of the utility organization.3
24
From 21 May to 19 June 2008, Unguja suffered from a major failure of its electric infrastructure, which left
the island mostly dependent on diesel generators. The failure originated in mainland Tanzania. Another blackout
happened from 10 December 2009 to 23 March 2010, caused by a problem with the submarine cable that
supplied electricity from mainland Tanzania. This inflicted a serious shock to Unguja's fragile economy.
25
Unguja (Zanzibar Island) is supplied with electricity from mainland Tanzania through a 39-kilometer, 100megawatt submarine cable from Ras Kiromoni (near Dar as Salaam) to Ras Fumba on Unguja. The construction
works begun in October 2012 by the Viscas Corporation of Japan and was funded by a US$28.1 million grant from
the United States through the Millennium Challenge Corporation. The cable became operational in April 2013.
26
The previous 35-megawatt cable was built by Norway in 1980. Following the inauguration of the new 100
MW cable, the 35 MW cable has been refurbished and it is operational as backup capacity.
27
Since May 2010, Pemba Island has had a 75-kilometer, 20-megawatt, subsea cable directly to mainland
Tanzania. The cable project was financed through a 45 million euro grant from Norway, contributions of 8 million
euros from the Zanzibar government and 4 million euros from the Tanzanian republic government. The project
ended years of dependence on the unreliable diesel, which generated frequent power cuts. Only about 20 per
cent of the cable's capacity was being used in January 2011, so it is anticipated that the cable will meet the
island's needs for 20 to 25 years.
28
ZECO holds a monopoly over the transmission grid and the distribution in the Archipelago. A 132 kV 100 MW
cable is feeding the Unguja Island from Tanzania mainland through a transformer station located in Zanzibar
Town. The entire Unguja Island is being alimented from this main transformer.
29
The transmission and distribution system on Unguja is structured as radial single lines, and not in closed loop
circuits, entailing that any failure anywhere on the single transmission line causes power cuts from the point of
failure. ZECO have plans to construct transmission lines to create closed loop circuits, thus eliminating failure of
transmission lines to cause power cut. This however will not eliminate the power cuts caused by failure of the
distribution lines, but improves the security of service delivery.
30
A 33kV 20MW cable from Tanzania Mainland supply Pemba Island, and the main transformer is located close
to Chake Chake, This is the major transformer on the island and from here the Pemba Island is supplied. Also at
Pemba the transmission and distribution lines are as radial single lines, causing power cuts when one of the single
lines is failing.
31
The overall coverage of the distribution grid is high, with hamlets in all communities. However, not all
households are connected and houses too far from the hamlets can only be connected via ordinary cables with
huge (distance) losses or high costs connections with small scale transformers/inverters. It is estimated that 90 %
of all households could connect to the grid without difficulties, but only a little more than 50 % are actually
connected. Those who do not connect have a variety of reasons not to, with affordability (poverty) believed to be
the dominant reason.
32
The supply from the mainland is stable and sufficient to sustain the present load. However, the stability of the
grid and power cuts outside Zanzibar town is reported to be regular. The losses in the system are around 23%
according to a ZECO analysis4. The estimated losses figure includes technical losses and consumption not paid for
by private customers, but is not considering the lack of payment from some Government organisations. Efforts to
33
3
http://www.swedenabroad.com/en-GB/Embassies/Dar-es-Salaam/Current-affairs/News/Support-to-the-Energy-Sector-in-Zanzibar-sys/
4
Electricity Loss Reduction Study (MCC)
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reduce the loss is initiated, among others by a SIDA 5 funded programme addressing the issue and also the
financial deficit by analysing not only the losses, but the consumer tariff too.
On the other hand, ZECO is not paying in full for the electricity supply it receives from TANESCO (only around
50% of the bill is paid). How long this situation can continue for is unknown. For all practical reasons, ZECO’s
perception of costs that could be entered into a PPA is not the full costs, but half of TANESCO’s official rate, which
is creating a barrier as no IPP can produce at such cost. ZURA is preparing a new tariff for ZECO’s costumers, one
which should cover the full costs of ZECO’ operation. However, it is not known if this tariff will include sorting out
the back lock accumulated in TANESCO, and if so the leap in the tariff will be substantial.
34
In 2003, as a way of tackling some of the problems that the energy sector was facing, the RGoZ requested
Sweden to support the development of the energy sector. In response, Sweden financed a Diagnostic Study of the
Energy Sector in 2004/2005, which proposed a three-phase Energy Sector Programme covering policy framework,
governance and technical issues.
35
Based on the recommendations from the Diagnostic Study, a Phase I of the Energy Sector Programme for
Zanzibar was financed by Sweden and implemented from 2007 to mid-2010.
36
The programme covered two main components: Financial Turn-Around of ZECO, and Support to the DoEM in
the development of a draft Energy Policy. The House of Representatives approved the draft Energy policy in 2009.
Subsequently, DoEM has formulated a Policy Implementation Plan.
37
At the end of Phase I, the general conclusion was that even though the programme had been appropriate,
efficient and very timely, the level of support needed in order for the Financial Turn-Around part of the
programme to be sustainable was underestimated. The administrative and operational capacities of ZECO were
lower than expected and the targets set for the programme had been unrealistic and too ambitious. As a result of
Phase I, the financial and technical situation of ZECO has improved in some areas, however much remains to be
done in order for ZECO to be a financially sound utility.
38
In 2011, MoLWEE submitted a project document to Sweden including a proposal for a Phase II programme in
accordance with the three-phase Energy Sector Programme proposed by the Diagnostic Study. Prior to making a
decision to support a continuation, in 2013 Sweden commissioned a study to evaluate the capacity of ZECO and
DoEM, which is now under execution.
39
The consumer confidence in continued supply seems to be low, judged by the widespread presence of diesel
generators, even in Zanzibar Town. Many of these could stem back from the time when the sea cable from
Mainland Tanzania failed. Though large diesel generators were installed at the time and the failing 35MW sea
cable is now operational as a backup, continued supply should be secured by the combined capacity. However,
though the generators are maintained and regularly fired up, the cost of production is in the high end of USc
40ies, indeed making RE competitive. Further, the pipeline for oil supply from the harbour is no longer
operational. ZECO considers transport by truck to be possible, but this will add to the price and could show to be a
logistical challenge – not only for ZECO, but also in terms of transporting capacity as vehicles will not be available
for their normal duties.
40
The transmission grid on both islands is dimensioned to deliver the load to various load centres on the
islands, consequently it does not have sufficient capacity to transmit power generated by larger renewable energy
plants. The exact capacity that can be transmitted is not known at present, but more than 1MW connected to one
of the sub-stations might not be possible.
41
The present situation is that any larger renewable energy plant will have to be connected to the main
transformers near Zanzibar Town and on Pemba near Chake Chake. This will add considerable costs of
42
5
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implementing larger renewable energy capacity and the capacity of the transformers also determinates the upper
limit for the capacity of renewable energy installations. However, when the demand exceeds the capacity of the
transformer, an extension of this is needed.
2.2.2
Energy Demand
The energy demand is projected to increase by 11% per year according to Zanzibar Planning Commission, and
13% in the Vision 2020 scenario. The total demand will reach 735 GWh by 2020 and 2,719 GWh by 2032, starting
from an un-constrained demand of 287 GWh in 2011.
43
“These projections indicate that Zanzibar’s power sector needs major investments in order to ensure that a
rapidly growing demand is met. In addition there is concern about the present 100% dependence of Zanzibar on
electricity supplied solely from Mainland Tanzania, creating the risk of fluctuating electricity prices, which is driven
by the widely fluctuating international price of energy and by the prospects for rising electricity production cost in
the Tanzania mainland.”
44
The high growth rate of demand in Zanzibar is not a new effect. The demand for electricity has grown fast
and the amount of billed electricity increased with more than 50 % from year 2003 to year 2007. The highest
increase can be seen in the medium sized industries sector, where the tourism sector consisted of a large
proportion.
45
2.2.3
46
47
Current Energy Sector Priorities in Zanzibar Economic and Energy Policy Documents
The strategic priorities for the energy sector in Zanzibar are detailed in the following official documents:
>
The Zanzibar Strategy for Growth and Reduction of Poverty 2010-2015 (MKUZA II) document of the
Revolutionary Government of Zanzibar - the document deals only marginally with electricity and
identifies security of supply and environment as the main concerns, RGoZ, October 2010.
>
The Revisited Zanzibar 2020 Vision which proposes more diversified priorities and objective s than
the MKUZA II, RGoZ, October 2011.
>
Zanzibar Energy Policy, Ministry of Water, Construction, Energy and Land, 8th December 2009.
>
The Strategic Plan 2011-2015, Ministry of Land, Hosing, Water and Energy, July 2011.
>
The Business Plan of the Zanzibar Electricity Corporation (ZECO) from 2010/2011 to 2013/2014
(Zanzibar Electricity Corporation), which prioritizes reliability of supply and access (it envisages 7
000 new grid-based connections annually), ZECO, March 2012.
Overview of energy priorities in Zanzibar (October 2011)6 is presented in Table below.
MKUZA II (1)
Energy
Independence
Energy Security
6
2020 VISION (2)
ENERGY POLICY (3)
High priority
Medium priority
High priority
High priority
STRATEGIC PLAN (4)
ZECO BUSINESS PLAN (5)
High priority
High priority
Medium priority (>Local
Capacity)
References:
(1) The Zanzibar Strategy for Growth and Reduction of Poverty: 2011-2015 MKUZA II, RGoZ, October 2010.
(2) The Revisited Zanzibar Vision 2020, RGoZ, October 2011.
(3) Zanzibar Energy Policy, Ministry of Water, Construction, Energy and Land, 8th December 2009.
(4) The Strategic Plan 2011-2015, Ministry of Land, Hosing, Water and Energy, July 2011
(5) ZECO Business Plan 2010/2011 to 2013/14, ZECO, March 2012.
(6) ZECO’s Electrification Master Plan (EMP) 2015-2030 includes ambitions related to increased share of electricity supply from domestically
produced renewable energy sources.
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Cost of
Production
Medium
priority
GHG Emissions
Energy Access
High priority
48
Low priority
High priority
High priority
Low priority
High priority (>RE)
Low priority
Medium priority
High priority
Preliminary indications suggest that the main priorities of the Zanzibar Government in the energy sector are:
(i)
Reliability of supply, particularly in light of the dramatic consequences of the 2009-10 power cut and
present occasional power shedding.
(ii)
Energy independence, due to projected price escalation of electricity supplied by TANESCO (Tanzania
Mainland Electricity Company).
(iii)
Cost of energy production with regard to affordability and competitiveness concerns.
(iv)
Environmental considerations.
Remarks: Main part of these documents need to be updated and new revisions prepared. Energy issues can only
be addressed through building a common Vision, and an integrated approach (coordination), combining better
legislation and regulation, promotion of renewable energy sources and energy efficiency projects, decentralised
solutions in rural areas, better management of forests resources and integration of climate change issues in all
response strategies. New legislation related to RE and EE should be developed, including potential IPP projects.
2.2.4
Current Regulatory Vacuum
No regulation is in place for Independent Power Producers. The Ministry of Land, Water, Energy, and
Environment has received 16 expressions of interest to supply electricity as Independent Power Producers. Some
have expressed interest and had meetings with the ministry and ZECO, but for a good part of the interested
companies, they have not followed up on these meetings.
49
As no regulation for IPPs is in force, the terms and conditions for IPPs are not known. The major question on
financial, legal, and technical regulation needs to be answered before IPPs can invest. Large areas to the NE and
SE of Unguja have been prioritised for wind and solar farms. However, if these farms have a substantial
generation capacity, the question of payment for the transmission line to connect to the transformer in Zanzibar
Town is not yet determined, nor is the feed-in tariff or the technical requirement for feeding in on the
grid/transformers. If the transmission lines are decided to be owned and operated by IPPs, third party access
must be secured without being subject to unfair pricing, thus hampering development.
50
Other possibilities are not regulated, such as a major consumer is producing first and foremost for own
consumption and exchange surplus and deficit with the grid. That could be a potential threat to the financial
position of ZECO. If major consumers start producing for own use, then ZECO will still have to maintain full
capacity to supply, and as the capacity is only partly used, the costs for ZECO will have to be covered by less
consumption. In the present situation, ZECO does not have an answer to this question, as major consumers are
unable to deliver their excess production to the grid due to capacity constraints. However, at present a 1kW solar
panel is priced at app 1200USD, but new technology is already available for less than 50 USD for 1 kW, making the
financial threat very real for ZECO.
51
ZECO should participate in the preparation of the regulation and conditions of these potential renewable
energy projects, including ZECO as the Single-Buyer of production from any new renewable energy deployment.
52
2.2.5
Energy Efficiency
Energy Efficiency is a wide concept involving all sectors. Only little has happened so far. People and
commercial entities are aware of their electricity bill and try to minimise the use, but with little success.
Dissemination campaigns and pilot projects can help, but must be continuously repeated not to lose effect. At
present no regulation or standards on technologies are enforced. Thus, all kinds of inefficient technologies are
53
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used. Building codes for buildings using cooling or water heating do not exist, vehicles are emitting un-combusted
fuel and running inefficiently, and the use of inefficient two stroke engines is still widespread (road and maritime).
The potential for increasing the energy efficiency seems huge.
Between 70% and 75%of the electricity distributed is used domestically while less than 20 % is used
industrially. Fuel wood, charcoal and kerosene are widely used as sources of energy for cooking and lighting for
most rural and urban areas. The consumption capacity of petroleum, gas, oil, kerosene and industrial diesel oil is
increasing annually, going from a total of 5,650 tons consumed in 1997 to more than 7,500 tons in 1999.
54
The energy coefficient is not known, but the economy of Zanzibar grew 7% in 2014 and the population
somewhat less. In 2014 the energy consumption grew more than 7%, thus showing an energy coefficient of more
than one.
55
Considering the level of use of energy by the majority of the population, an energy coefficient below one is
not within reach for a foreseeable time. However, the energy could be used much more efficiently. As there are
no regulations on the use of technology or regulation on maintenance (regular tests) there is an untapped
potential for improving the financial situation for consumers and the economy of Zanzibar.
56
Unfortunately, Zanzibar does not have a common Vision on sustainable tourism, and sustainable economic
activities.
57
2.2.6
Institutions involved in the Energy Sector in Zanzibar
Government institution
Role and responsibilities
Ministry of Land, Housing,
Water and Energy
Overall responsible for the energy sector in Zanzibar.
Ministry of Finance
The Ministry of Finance has an important role with regard to regulation.
Department of Energy and
Minerals (DoEM)
The Department of Energy and Minerals, within the Ministry of Land, Housing, Water, and
Energy (MLHWE) has the overall responsibility for energy issues in Zanzibar and is in charge of
Energy policy implementation and monitoring. It is responsible for coordination of matters
related to regional and international conventions and protocols on environmental affairs.7 It
regulates the sector, including tariff, supervises energy sector public enterprises, e.g. ZECO.
One division is in charge with renewable energy, one division with energy efficiency.
Directorate of Policy and
Planning
The Directorate is in charge of policies and planning for all the sectors covered by the Ministry
of Land, Housing, Water, including energy.
Zanzibar Electricity
Corporation (ZECO)
The vertically integrated public company ZECO (Zanzibar Electricity Corporation), operating
under the ZECO Act 2006, is the only electricity company in the archipelago; it supplies power
to the two islands of Unguja and Pemba mainly through two submarine cables from the
mainland, under a power purchase agreement with TANESCO.
Zanzibar Utility Regulatory
Authority (ZURA)
Created in April 2013. It is unclear whether it is already fully functional at the time of writing.
This will have to be clarified during the inception phase.
Tanzania Electric Supply
Company (TANESCO)
Tanzania Electric Supply Company Limited (TANESCO) is a parastatal organization under the
Ministry of Energy and Minerals. The Company generates, transmits, distributes and sells
electricity to Tanzania Mainland and sells bulk power to the Zanzibar Electricity Corporation
(ZECO) which in turn sells it to the public in the islands.
The Department of Forestry
of the Ministry of
Agriculture and Natural
Resources
This department is engaged in the household cooking energy sector and improved cook stoves.
7
ZEP 2013.
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Remark: The Ministry of Finance also has a large regulatory role and influence (e.g. on the fossil fuel trading)
exerted through the Public Investment Commissioner, acting under the regulations of the Public Investment Act
of 2002. At present, however, there is limited capacity to regulate energy supply and demand, and more efforts
are needed to reinforce DoEM (Policy Maker) and ZURA (Regulatory and Enforcement Agency).
2.3
Relevant Previous and Ongoing Programmes/Projects
The Project draws on the experience and benefit from past and present large-scale EU and other donorsfunded technical assistance projects in renewable energy and energy efficiency as presented below.
58
Previous Assistance in the Energy Sector
Emergency Diesel Power Plant (NORAD)
The construction and installation of a 25MW emergency diesel power plant at Mtoni, funded by NORAD, was completed
in 2010.
Tanga to Pemba Submarine Cable (NORAD)
The construction and installation of a submarine cable (33kV 20MW) from Tanga on mainland Tanzania to Pemba Island,
funded by NORAD, was completed in June 2010. Capacity
Rural Electrification Program (REP) – Phase IV (NORAD)
Rural Electrification Program (REP) – Phase IV extension funded by NORAD started on August 2006 and was completed in
October 2010. About 100 villages on Unguja and Pemba islands have been electrified and construction and installation of
about 3.2km submarine cable to Tumbatu Island including construction of distribution network.
Dar-as-Salaam to Unguja Second Submarine Cable (MCC)
The construction and installation of the second submarine cable (132 kV, 100 MW) with a new power station consisting
of two 132/33kV, 60 MVA transformers, funded by MCC, was commissioned in April 2013.
Electricity Loss Reduction Study (MCC)
Technical and commercial loss reduction study, including training, was performed for TANESCO and ZECO during
2010/2011. The study establishes the level of system losses, allocated between technical and non-technical losses.
Extension of the 33 kV distribution line from Mtoni substation to Tunguu, Mahonda and Fumba (JICA)
The extension of the 33 kV distribution line from Mtoni substation to Tunguu, Mahonda and Fumba.
Unguja Island Reinforcement of Power Distribution (Belgium)
Project for the Reinforcement of Power Distribution in Unguja Island and concerns a 33/11 kV Mpendae substation and
network rehabilitation.
Technical Assistance to DoEM for an Energy Efficiency awareness campaign (UNDAP)
TA to DoEM for an Energy Efficiency awareness campaign combined with review of legislation, review of tax for
importations and promotion of gas rather than firewood.
On-going Relevant Programmes/Projects in Zanzibar Energy Sector
Zanzibar Renewable Energies and Energy Efficiency Programme
This includes the supply and installation of wind and solar measurement equipment (separately contracted) and the
recruitment of consultancy services for the implementation of the programme in 2 lots: the present study work (Lot 1)
and technical assistance for the implementation of RE and EE projects to be separately contracted as Lot 2.
The current project is Lot 2 of the Programme.
Lot 1: Wind and Solar Potential Analysis and Feasibility Studies of Power Plants
The project specific objective is focused on a dedicated region (Zanzibar) and on the development of renewable energy
technology and their application, and will also contribute to the promotion of implementing energy efficiency
programmes and adequate regulatory and institutional developments.
Feasibility study to assess wind potential in the perspective of developing 40 MW in Unguja and 4 MW in Pemba islands.
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Technical Assistance to prepare the regulatory reforms for RE and EE, including the assessment of solar, small-scale wind
power and biomass development opportunities.
Highly relevant to Lot 2 project.
Capacity Building Programme on Maintenance in ZECO (NORAD)
The project runs 2014 – 2018 and has a total budget of $ 10m, funded by NORAD and implemented by Multi Consult. It
deals with: replacement of the poles of the existing 33 kV systems where the poles have reached the end of their
technical life, as well as grid extension and the provision of a submarine cable from Tanga to Pemba.
The project prepared the Electrification Masterplan in 2014 and ZECO has been mapped in a GIS system.
A feasibility study has been prepared for a 5 MW solar PV farm in north eastern Zanzibar. This could be further adjusted
once GOPA data become available.
Relevant assistance. Coordination needed.
Energy Sector Project support Consolidation Phase (SIDA II)
A 3-year project funded by SIDA at the total budget of $ 5,5 and implemented by Multi Consult. The support is mainly
dedicated to ZECO (TA to the reform process and about 50% for new meters and equipment) and DoEM ($ 450,000).
This assignment will include a gender strategy focusing on the women in the ZECO work force.
There are areas with possible overlap/duplication with Lot 2 such as support to DoEM, energy efficiency and awareness
activities. Need for close consultation and cooperation between the 2 projects is required.
2.4
Progress of Lot 1
The TOR of Lot 1 cover Analysis of the Wind Resource and Solar Radiation and full scale Feasibility Studies of
wind and solar farms. Lot 1 is under implementation by GOPA International Energy Consultants. Five measuring
masts have been built by an Italian Company.
59
From our Team of Consultants and the Minister of Finance and ZECO representatives’ discussions, the RGoZ
requested to the European Union to cancel the contract with the Italian company under reasons of
underperforming during the implementation of the masts. At present, only three of the five masts are generating
data.
60
61
The last quarterly monitoring report available8 details the detected deviations and deficiencies such as:
The Met mast and instrument installation are not in accordance with technical standard (IEC 61400-12-1, Annex
G) including but not limited to:
>
Mast top configuration/dimensions.
>
Bended booms and sensors.
>
Cables not properly fixed.
In addition, the quarterly monitoring report warns about missing documents/information URGENTLY
REQUIRED for correct evaluation, such as: Corrected/Completed installation drawings (as built) with all missing
detailed information including but not limited to
62
8
>
:
>
Height, direction (boom orientation) & serial number of each installed sensor,
>
Alignment of met mast (booms, guy wires, lightning rods),
>
Technical drawings of met mast including all dimensions of met mast and all relevant parts (booms,
lightning rod, etc.).
>
Installation documentation including information on all relevant details including but not limited to:
>
Channel assignment,
Quarterly Report for Wind Resource Analysis - Project Sites in Unguja and Pemba - Report 02: 11/2015-02/2016
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>
Data logger adjustments (slope and offset, etc.),
>
Photo documentation of met mast installation, sensors, and site
Further details could be found in the Quarterly Report for Wind Resource Analysis - Project Sites in Unguja
and Pemba - Report 02: 11/2015-02/2016.
63
Remark: It is necessary to highlight that the success of Lot 2 project will be depending partly on reliable data
quality inputs from project Lot 1; our Team of Consultants will have regular consultations with Lot 1 consultants
and stakeholders, prior even to the results, will allow to keep abreast of the development of data.
2.5
Update of the Terms of Reference
Based on the findings and analysis of the inception phase, the project team has updated the ToR to reflect
developments in the implementation environment. These are summarised below.
64
In the project Background it is stated that the higher GDP per capita at Zanzibar compared to mainland
Tanzania is “illustrating the higher standard of living of Zanzibar and higher capacity to pay for energy services”.
This is not necessary a valid statement as it is not taking into account the income distribution. Only an analysis of
the income distribution can show if the higher GDP per capita is for all levels of income. If the owners of facilities
generating income are dragging the average up, then only this segment of the population will have a higher
capacity to pay.
65
Activity 6 is named “Training and know-how transfer”. Already during the preparation of the ToR it was
disputed from the beneficiary that “know-how transfer” is not an unambiguous term and will henceforth be
referred to as “learning process”. In the ToR know-how and information seemingly is used as expressing the same.
ZECO has expressed that learning from other systems introducing large proportions of renewable energy should
be given priority. For the time being Zanzibar is supplied with electricity through the cable connecting it to the
mainland and this cable has a larger capacity than what is currently needed. This situation can only prevail as long
as the capacity to feed into the cable from the mainland is sufficient to satisfy the demand in Zanzibar and as long
as the needed capacity doesn’t exceed the capacity of the cable. When this will no longer be valid, production
capacity should be available in Zanzibar. It is therefore proposed that ZECO allocates resources (travel costs) to
engage in a “mentor” arrangement that can provide information and support through a learning process, to help
ZECO face its challenges. ZECO should visit its “mentor” and keep contact for advice. The resources made
available for the Project are sufficient for including a “mentor”.
66
The ToR includes reference to activities on desalination. During the Inception Phase it has been revealed that
desalination and fresh water supply from wells is not an issue in Zanzibar, though distribution is an issue. Some
small islands do have problems, and some small-scale desalination could be considered. It should be noted that
desalinated water is expensive and not suitable for irrigation, unless produced via fine distillation.
67
2.6
Issues Identified during Inception Phase
2.6.1
Delays in implementation of EU Project Lot 1
During the project team visits to different sites part of the EU Project Lot 1, it was noticed that the
Measurement Masts were not operating as expected, and that the execution of the project was on delay. In
addition, it seems these measurements would be of insufficient quality as regards Lot 1 feasibility studies.
68
As it was mentioned above in the item 2.3 Progress Lot 1, the RGoZ has requested the cancelation of the
contract with the current contractor. This is putting under risk the interrelated activities under Lot 2, unless Lot 1
ensures sufficient data/quality of data collection for inputs.
69
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2.6.2
MCC withdrew its support in March 2016
An additional risk has been identified: EU withdrawing its support, following MCC (US Government
organisation Millennium Challenge Corporation) withdrawing its support in March 2016.
70
MCC justified its withdrawal of support (which could be EU’s argument as well) with the following statement:
“MCC’s model has a partner country’s commitment to democracy and free and fair elections at its core. The
elections in Zanzibar and application of the Cybercrimes Act run counter to this commitment. As a result, while
the United States and Tanzania continue to share many priorities, the MCC Board of Directors determined that
the Government of Tanzania has engaged in a pattern of actions inconsistent with MCC’s eligibility criteria, and
voted to suspend the agency’s partnership with the Government of Tanzania. MCC will therefore cease all
activities related to the development of a second compact with Tanzania.” 9
71
2.6.3
USAID is re-holding upcoming support.
In line with MCC, USAID is also considering their support, though in a more silent mode. USAID continue to
sustain its on-going assistance, but is discreetly postponing or cancelling assistance not firmly committed.
Department of Environment was in the process of receiving support from USAID, but the process has been
postponed.
72
2.6.4
Initial Training on PPPs and RE and EE projects requested by Contracting Authority
On July 8, 2016, during a meeting with the Contracting Authority (Ministry of Finance and Planning), a
discussion on Project issues occurred. The discussion was about a brief introduction of different models for Public
Private Partnership, and further different models for Power Purchase Agreement and Independent Power
Producers. Training Gap analysis was discussed as well, and the MoF&P noted that they might need some initial
introduction to PPP models, Renewable Energy and Energy Efficiency in order to understand what sort of training
is actually needed. To help the MoF&P the first part of the way to understand the need for training, it was agreed
to meet and discuss the contents of a preliminary introduction to be provided by the REEE Experts. As next steps,
the MoF&P plans to define an internal group interested in participate and to provide a potential date to make the
training, which is expected to take place at mid-July. REEE Experts will prepare the materials accordingly. Outputs
will be reported after the training.
73
2.6.5
Electricity tariff does not sustain financial balance of ZECO.
A major barrier for introducing RE and EE in the ZECO system is that the present tariff of ZECO does not
reflect the costs of the electricity distributed. Further, ZECO is not paying the full amount due for deliveries from
TANESCO, as the tariff in Zanzibar does not provide sufficient revenue, especially as some of the public institutions
do not pay the electricity bill to ZECO.
74
If a PPA is introduced, it would have to reflect the full costs of production, and that would be much higher
than the actual (factual) payment to TANESCO, thus further weakening the financial position of ZECO.
75
Presently ZURA is preparing regulation of electricity prices based on actual costs. Tariff was previously
dictated by the government and not based on an estimate of the real costs. If ZECO, through ZURA’s regulation,
got the foundation for achieving financial balance, it would require a major increase in the electricity tariff, not
only to reflect the present costs, but also the sort out the back-lock with TANESCO.
76
ZECO’s financial imbalance is not sorted out by introducing a real cost tariff, as it has to be much higher than
the present ruling tariff. A major leap in the tariff for the consumers could result in even fewer costumers paying
and increased looting. An even bigger risk for ZECO’s financial position is that households, major consumers,
77
9
Article available at https://www.mcc.gov/news-and-events/release/stmt-032816-tanzania-partnership-suspended
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resorts and hotels will start producing from PV for own consumption, thus reducing the revenue generating sale
for ZECO.
A major leap in the electricity tariff could on the other hand be a benefit for EE, as it could start concern on
the use of electricity and the appliances used. A major electricity saving could be conversion of electric water
heaters systems into solar thermal water heaters. Electric water heaters are widely used by hotels, resorts,
private houses, restaurants, and offices. A large proportion of these are installed in places with plenty of space for
installing thermal solar heaters.
78
2.6.6
Energy Statistics is deficient
During the Inception period, an energy balance for Zanzibar has been pursued. Fragments and out-dated
information was found, but no valid energy balance based on reliable statistical figures was found. The analysis of
the energy sector is therefore based on estimates and assumptions, making any conclusions uneasy. The
electricity sector is well documented and well described with solid statistics. SIDA has started efforts to support
Department of Energy & Minerals to prepare energy statistics and preparing yearly energy balance.
79
2.6.7
Vision for the energy sector is deficient
During the inception, no committed compiled vision for the energy sector was identified. Fragments of a
vision, resting with different ministries and departments, are present, but a coherent comprehensive vision was
not identified. This adds to the risks of the project as the believed ruling vision could change at any moment. The
document “Vision 2020 for Zanzibar”, updated in 2011, should include a vision for the energy sector but it is not.
80
2.6.8
The SIDA Programme
The SIDA programme is about to be implemented and that calls for close cooperation within several areas.
The SIDA Programme is to support training, Energy Efficiency awareness in Energy Sector, and preparation of a
Draft Energy Policy. All these issues are partly overlapping with this Programme and as soon as the SIDA
Programme is going, the coordination of activities will be planned and undertaken– especially with regards to
Activity 6.1 Training Needs Assessment.
81
2.6.9
82
Electricity Transmission Facilities
The current Transmission Lines are not prepared for the integration of Large Renewable Projects
2.6.10
Roads and terrestrial transportation paths
Large and/or heavy pieces of equipment from large Renewable Projects are difficult to transport due the
characteristics of the current roads.
83
Start Situation
Page 24 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
3
3.1
PROJECT SYNOPSIS
Overall Project Objective
The overall objective is to support United Republic of Tanzania in developing interventions promoting
socio-economic development based on renewable energy and efficient energy management.
84
3.2
Project Purpose
The specific objective is to support the development of renewable energies in Zanzibar, promote
implementation of energy efficiency and adequate regulatory and institutional framework through appropriate
transfer of know-how and capacity developments of Key Stakeholders.
85
Objective 1: To provide Key Stakeholders with capacity development in technical, social, environmental, and
economic and financial analysis relating to RE & EE development in Zanzibar.
Objective 2: To support the RGoZ to establish a conducive legal and regulatory framework for RE & EE.
Objective 3: To formulate supporting measures for increased private sector involvement and the establishment
of viable financing mechanisms.
Objective 4: Creating a business environment conducive to private sector initiative in the fields of RE & EE.
Objective 5: To assist the RGoZ and other key stakeholders (institutions, private project promoters, NGO, training
institutions, etc) in the implementation of RE and EE projects.
3.3
Results to be achieved
Result 1:
A cost-benefit analysis of each of the RE & EE technologies is available.
Result 2:
A conducive legislation & regulation for RE & EE including roll-out plans and documentation is
developed and approved by programme counterparts.
Result 3:
The regulatory and licensing requirements and prerequisites for the development of wind and solar
energy in Zanzibar are clearly described.
Result 4:
An action plan for RE projects & EE actions with schedule is defined and under implementation
Result 5:
At least 5 EE measures (e.g. energy audit and action plans, awareness campaigns to government
Institutions, schools, hotels etc) and 2 RE projects (e.g. through technical assistance for preparation
of pilot projects, call for proposals, PPA negotiation and development, etc.) are under
implementation.
Result 6:
At least 5 EE measures and 2 RE projects are under implementation.
Result 7:
Improved awareness of RE & EE among the population of Zanzibar.
3.4
Relation Objectives-Results
The figure below provides overview of the relation between project objectives and project results.
Project Synopsis
Page 25 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Objective 1:
To provide Key Stakeholders with capacity development in
technical, social, environmental, and economic and financial
analysis relating to RE & EE development in Zanzibar.
Result 1:
A cost-benefit analysis of each of the RE & EE technologies is available.
Result 7:
Improved awareness of RE & EE among the population of Zanzibar.
Objective 2:
To support the RGoZ to establish a conducive legal and regulatory
framework for RE & EE
Result 2:
A conducive legislation & regulation for RE & EE including roll-out plans and
documentation is developed and approved by programme counterparts.
Result 3:
The regulatory and licensing requirements and prerequisites for the
development of wind and solar energy in Zanzibar are clearly described.
Objective 3:
To formulate supporting measures for increased private sector
involvement and the establishment of viable financing
mechanisms.
Result 5:
Supporting mechanisms introduced by the RGoZ and geared to the private project
promoters are defined and effective.
Objective 4:
Creating a business environment conducive to private sector
initiative in the fields of RE & EE.
Result 5:
Supporting mechanisms introduced by the RGoZ and geared to the private
project promoters are defined and effective (also supporting Objective 3).
Result 7:
Improved awareness of RE & EE among the population of Zanzibar (also
supporting Objective 1).
Objective 5:
To assist the RGoZ and other key stakeholders (institutions, private
project promoters, NGOs, training institutions) in the implementation
of RE & EE projects
Result 4:
An action plan for RE projects & EE actions with schedule is defined and under
implementation.
Result 6:
At least 5 EE measures and 2 RE projects are under implementation.
Project Synopsis
Page 26 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
3.5
Risks and Assumptions
The ToR identify a series of assumptions underlying the Project’s intervention, as well as a series of risks that
might influence the degree of the Project’s success. We set out these assumptions and risks below and comment
on how these issues might be addressed and how any risks may be mitigated.
86
The ToR sets out a list of important assumptions and risks that underlie the project intervention. Here we
have expanded upon these in more detail. We describe how we will monitor the assumptions upon which the
project is based and the action we will take (insofar as we can) to ensure that they will continue to apply.
87
In terms of risks, we describe our risk management strategy and we identify the mitigating actions that can be
taken.
88
3.5.1
Assumptions
The Consortium’s approach emphasises continuous monitoring of all assumptions and the potential impact
they might have on the project. Include situation quoted in point 3.5
89
Electricity tariff does not sustain financial balance of ZECO
A major barrier for introducing RE and EE in the ZECO system is that the present tariff of ZECO does not
reflect the costs of the electricity distributed. Further, ZECO is not paying the full amount due for deliveries from
TANESCO, as the tariff in Zanzibar does not generate sufficient revenue, especially as some of the public
institutions do not pay the electricity bill to ZECO.
90
If a PPA is introduced, it would have to reflect the full costs of production, and that would be much higher
than the actual (factual) payment to TANESCO, thus further weakening the financial position of ZECO.
91
A major leap in the electricity tariff could on the other hand be a benefit for EE, as it could start a conversion
of electric water heaters systems into solar thermal water heaters. These devices are widely used by hotels,
resorts, private houses, restaurants, and offices. A large proportion of these are installed in places with plenty of
space for installing thermal solar heaters.
92
Vision for the energy sector is deficient
During the inception, no committed vision for the energy sector was identified. Fragments of a vision are
present, resting with different ministries and departments, but a coherent comprehensive vision was not
identified. This adds to the risks of the project, as the vision believed ruling could change at any moment.
93
Below are presented the identified assumptions that are pre-conditions for the project success, as well as the
measures proposed for their monitoring.
94
Assumptions
Technical and human resources from ZECO and
DoEM are sufficient
Close coordination and regular communication with the
relevant stakeholders but also with the development
partners involved in capacity building will be important in
order to evaluate the situation with regard to the available
resources.
Sustained political support
The wider political and macro-environment will influence
the potential of the project to achieve its objectives. A
comprehensive communication, information dissemination
and visibility strategy will contribute to raising awareness
about the value of the programme to the development of
the country as a whole
Sustained support from RGoZ for the
development of specific regulation and
institutions for renewable energy and energy
efficiency
Close coordination and regular communication with the
relevant stakeholders in the Ministries and departments
involved will allow to keep a check on this
Project Synopsis
Page 27 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Sustained involvement of the Zanzibar
counterparts to support the consultant in the
process
Close coordination and regular communication with the
relevant stakeholders in the Ministries and departments
involved will allow to keep a check on this but we have
every reason to believe that excellent working relationships
between the CA and beneficiary country, as well as staff in
relevant institutions and the consultant can be established
and maintained.
Institutional/management capacity within ZECO
and DoEM sufficient to host and oversee
complex project development exercise and grid
integration
Discussions from the very start of the assignment with
other development partners as well as ZECO and DoEM will
be essential in highlighting possible gaps and missing
capacities. This will in turn also determine further the
content of the capacity-building activities. While the
number of beneficiary staff will be a serious consideration
and need to be taken into account when planning capacity
building activities, a realistic and pragmatic approach will
be required.
Sufficient data/quality of data collection inputs
Regular consultations with lot 1 consultants and
stakeholders’ prior even to the results will allow keeping
abreast of the development of data.
Turnover of the permanent staff of the
beneficiary institutions remains reasonably
limited.
As in the assumption outlined above, close coordination
with the main stakeholders should allow keeping check on
this. The importance of training staff and good
collaborative spirit and data sharing with Lot 1 consultant
will also play a role in this.
3.5.2
Risks
The risks identified at tender stage are still valid. Furthermore, one additional risk has been identified, and
that is the risk of EU drawing the same conclusion as MCC, thus deciding to redraw its support to Zanzibar. The
risk is considered to be of medium likelihood and high impact.
95
96
Overview of the project risks is presented in the table below:
Key risk
Consequence
Likeli
hood
Impact
Level
Limited technical and
human resources
from ZECO and
DoEM
Delay of investment in RE
M
H
A training needs assessment in an early phase of
the project will include a status skills and
experience of ZECO and RGoZ staff.
Lack of political
support
Perception of high sovereign
risk by private sector
developers and lenders.
M
H
Regular briefing of senior RGoZ representatives
Uncertainty with regard to
plant output (MWh per year)
Approval of project outputs such as documents,
legal drafting, regulatory reform and
competitive procurement
Increased cost of supply (risk
premium)
Lack of sustained
support from RGoZ
for the development
of specific regulation
and institutions for
renewable energy
and energy efficiency
Investment environment too
uncertain for private sector
investors
Lack of sustained
involvement of the
Shortage of expert input into
project preparation
Mitigation Strategy
M
M
Create a regulatory guideline as a first step to
improve the enabling environment for PPP.
Document approvals of suggested regulatory
changes
High risk premium (tariff and
interest rates) for regulatory
uncertainty; inability to
bring PPP projects to
financial close
Assess fiscal stand of RGoZ with regard to RE and
EE regulation (budget allocations by RGoZ)
Establish contingencies for funding key projects
in the public sector (investment by ZECO and/or
RGoZ)
L
M
We will document the participation of senior
RGoZ representatives in the project’s key events
Project Synopsis
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Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Key risk
Consequence
Zanzibar
counterparts to
support the
consultant in the
process
Inability to provide effective
capacity building
Lack of
institutional/manage
ment capacity within
ZECO and DoEM to
host and oversee
complex project
development
exercise and grid
integration
Reduced size of on grid RE
investments due to
uncertainty in grid stability
and load management
Insufficient
data/quality of data
collection inputs
Insufficient data/quality of
data collection inputs
Insufficient quality of
Lot 1 feasibility
studies
Studies not accepted by
potential developers and
their lenders
Likeli
hood
Impact
Level
(workshops, seminars, drafting of documents
etc.).
We will report on counterpart participation and
discuss issues with senior RGoZ representatives
on a regular basis
M
H
Carefully assessment of Lot 1 study findings.
We will also facilitate and encourage cooperation between ZECO and TANESCO.
We will allocate contingency days for NKE to
work on grid integration
Increased investment cost
(storage) and noncompetitive generation cost
L
M
We will thoroughly assess the bridging phase
and Lot 1 outputs.
We will evaluate of existing wind and solar
projects in the wider East African region (Wind:
Ethiopia and Kenya, Solar PV: mainland Tanzania
and Zanzibar)
M
H
Allow for additional investigations by
prospective private sector investors
Delay in project
implementation
RE and EE measures not
competitive with fossil fuels
from a financial perspective
Careful assessment of feasibility studies,
consultation with Lot 1 consultants
Contingency allocation of NKE to enhance
feasibility studies to bankable level,
Additional due diligence
required by lenders
Sustained low world
market prices for
fossil energy
Mitigation Strategy
L
H
Emphasis on true cost of using fossil fuels and on
the need to improve Zanzibar’s energy security,
calculation of external (environmental cost) of
fossil fuel use
Analysis of options to enhance RE and EE finance
from clean energy and climate change facilities
and emission certificates
Accelerated
development of low
cost generation
capacity by TANESCO
in line with the
Electricity Supply
Industry Reform
Strategy and
Roadmap (ESIRSR)
RE and EE measures not
competitive with TANESCO
supply from a financial
perspective
M
Unexpected
conditions during
construction and
operation
Cost overruns
M
Operating risk due to
new technology and
low skills of operator
Lower plant output,
penalties for operator in line
with provisions in PPA
and/or concession
agreements, higher cost of
L
Establish close work relationship with TANESCO
Monitor progress in the implementation of the
ESIRSR.
In case TANESCO supply remains least cost
supply strategy, seek enhancements of RE and
EE project finance from clean energy and climate
change facilities
M
Schedule delays
Government guarantees
Arrange stand-by finance, emergency equity
and/or insurance,
Reduced rate of return
Transfer risk to government through
adjustments in taxes or royalties for higher EPC
costs
M
M
Foresee the employment of experienced and
reputable O&M operators.
O&M agreement to specify high maintenance
standards and clear penalties and bonuses.
Include design safeguards to reduce plant and
Project Synopsis
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Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Key risk
Consequence
Likeli
hood
Impact
Level
generation
Political risk after
construction
Regulatory changes
Expropriation,
nationalization or
cancellation of concession
Economic Problems (e.g.
high inflation, currency
realignments)
Mitigation Strategy
transmission line outages
L
M
Government guarantee;
Political risk insurance or MLA partial risk
guarantee
Transparent, independent dispute resolution
procedures
Project Synopsis
Page 30 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
4
97
METHODOLOGY AND APPROACH
this 24-month Project is divided into three main phases as follows:
>
Inception Phase: 1 1/2 month or 6 weeks (Inception Report: end of week 6 )
>
Implementation Phase: Months 2-23 (draft Final Report: end of month 23):
>
Completion Phase: Month 24 (Final Report: end of month 24):

Final evaluation

Exit strategy & Project handover

Draft final report and final report
Activity 1: Opportunities assessment of RE/ EE technologies for Zanzibar
Targeted Outputs:

























Analysis of lessons learnt from RE & EE projects done
Projection of on-grid demand and scenarios done
Projection of off-grid projects done
Market assessment for EE measures done
Models of calculation on levelised cost of generation of the various RE technologies prepared
Cost-benefit analysis prepared
Permanent working group including Lot 1 and Lot 2 teams established
Workshop on Lot 1 results
Review of studies from Lot 1
Gaps to be covered under Lot 2 are defined
Portfolio of funds and facilities prepared
Liaison with development partners established
Development partner meeting to present RE & EE strategy held (depending upon size of
programme)
İnformation on availability of funds obtained
Financing strategy defined
Barrier assessment & regulation reviewed
Financing support applications drafted
Technical opportunities described (incl. environmental, social, economic and financial aspects)
Market appraisal for different types of RE & EE technology prepared
Multi-criteria decision matrix developed
Report on opportunities assessment on RE & EE options
Workshop on opportunity assessment report held
Report on levelised economic and financial cost of alternative options
Proposal of Policy paper including detailed action plans with priorities
Delivery of a model for evaluating cost of production of alternative technical and financial options
Deliverable (Project ToR): Report on opportunities assessment on RE & EE options at the close date of this report
(Snapshot), including the related cost-benefit analysis + proposal of policy paper including detailed action plans
with priorities, corresponding budget and schedule.
Note: At the time of Project closure, recommendation for maintaining and updating will be submitted.
Activity 1.1
Prepare Database for RE and EE
1.1.1 Analysis of lessons learned from RE and EE projects in Tanzania, in the sub-region, and globally.
Methodology and Approach
Page 31 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
1.1.2 Demand forecast of on-grid demand in Zanzibar showing the part of the demand that could be provided by
RE and demand reduction by introducing EE.
Forecast of demand for off-grid solutions, based on an analysis of cost of grid supply, affordability of categories of
households.
1.1.3 Assessment of potential for EE measures in different sectors, on lighting, water heaters, air conditioning,
and refrigeration. An implementation strategy for the EE program will be prepared.
1.1.4 Calculation of the long-run marginal cost of electricity generation from different technologies, and compare
these to the real cost of supply from TANESCO.
1.1.5 Cost-benefit analysis of RE and EE projects companies have sent LoI, will be prepared to the extend data
made available allow.
Activity 1.2
Assessment of Results/Outcomes of Lot 1 Feasibility Studies
1.2.1 Review of Lot 1 studies and contributing with data/information, analysis of institutional gap, and gap in
financing.
Activity 1.3 Opportunity Assessment on RE & EE
1.4.1 Determining the possible share for RE & EE, technically and financially. This depends on the RE and EE
strategy of RGoZ, sort of regulation RGoZ, and the level of possible subsidies to increase the affordability of the
users.
1.4.2 Prepare a multi-criteria decision matrix for private and for public sector implementation, with key priorities
of the Energy Strategy. Each project will be rated with regard to specified criterion, leading to a multi-criteria
matrix.
1.4.3 Conduct a workshop with the wider stakeholders on the opportunity assessment.
Activity 2: legal, regulatory and institutional framework for Zanzibar for RE & EE
Targeted outputs:






Review of best practices regimes
Consultation with stakeholders on regulatory regimes held
Review of the barriers and risks for RE integration
Gap analysis and definition of regulatory standards done
Review of financial and tax incentives for RE
Analysis of relevant regulations, instruments and institutions in place, focusing on feasibility in
Zanzibar done
 Evaluation of financial cost of support to RE & EE done
 Regulatory impact assessment done, including cost-benefit analysis for priority regulatory regimes
 Approval from MoF&P on regulatory guidelines has been sought
Deliverable (as per Project ToR): legal, regulatory and institutional framework approved by RGoZ + all related
documents + workshop / training sessions on regulatory reforms.
Activity 2.1
Review of Existing Regulatory Experiences and Best Practices
2.1.1 Status of RE & EE regulation in Zanzibar.
2.1.2 Assessment of international experiences and definition of best practice regimes. Possible regulations of RE
and EE will be reviewed for definition of minimum regulatory standard.
2.1.3 Stakeholder consultation on regulatory regimes with the purpose to surface views on the most appropriate
supporting regulation, incentives, and perceptions of risk and willingness to participate as investors. Anticipated
participants are Ministries Development Partners, financing institutions, Investors, and manufacturers.
Methodology and Approach
Page 32 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Activity 2.2
Assessment of Effective Financial Incentives
2.2.1 Assessment of barriers for fund mobilisation, and identification and assessment of possible sources of
financing not yet known to Zanzibar.
2.2.2 Assessment of international financial incentive practices including tax exemption, feed-in tariffs, specific
loans, micro-finance, grants, rebates, VAT reduction etc.
Assessment of financial flow to/from private sector investments (cost, subsidies, cross-subsidies)
Activity 2.3
Drafting legal, regulatory and institutional framework
2.3.1 Prepare regulatory framework.
2.4.2 Workshop with stakeholders on regulatory framework.
2.4.3 Present regulatory framework to RGoZ for their further action.
Activity 3: Supporting mechanisms introduced by RGoZ and geared to the private project
promoters
Targeted outputs:














Practices of support to private sector listed
Preference list of instruments proposed
User manual for each instrument proposed
Assessment of evaluated risk level
Support mechanisms for private sector RE & EE projects assessed
Consultation with prospective national and international investors held
Assessment of financial support for high priority projects
Contract models
Guidebooks
Audits
Standard application documents
Leaflets on targeted EE measures
Consultation with RGoZ, ZECO, development partners and ZECO held
Workshop for all stakeholders to formally consult on supporting mechanisms, eligibility criteria and
procedures
Deliverable (as per the Project ToR): documents of supporting mechanisms approved by RGoZ including
identification of financing instruments and development of partner coordination. All supporting documents and
tools: guidebooks, audits, etc.
Activity 3.1 Review of international practices for supporting mechanisms (Enabling
Framework)
3.1.1 Review international practices to support private sector involvement, listing possible supporting
mechanisms for private sector involvement in RE and EE projects, and demands on the national budget of various
possible approaches such as grants, concessional loans, risk guarantee, risk capital for EE & RE indicatives, equity,
and support for establishing ESCOs, and a potential Zanzibar RE&EE fund.
Activity 3.2
Assessment of suitability of support mechanisms
3.2.1 Based on the conclusions and calculations made under Task 3.1, prepare assessment of the various potential
sources of financing for private sector RE and EE projects. The assessment will show possible financing mix for RE
and EE projects and their ranking in terms of level of desirability and suitability.
3.2.2 Listing terms and conditions for potential support from financing of GHG emission reduction.
3.2.3 Financial analysis to create informed basis for preparing templates for standardising terms and conditions
for PPAs and/or terms and conditions for tendering and PPP arrangements. This includes the cost of production
Methodology and Approach
Page 33 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
from RE projects and the value of savings from EE projects, using the most attractive sources of financing. The
results of the financial analysis is to determine the level of subsidy needed to maintain a desired level of RE and
EE.
Activity 3.3
Preparing strategy of private sector supporting mechanisms
3.3.1 Propose suitable support mechanisms for RE & EE investments, based on the results of 3.2, sets of incentives
for support of the RE and EE projects will be proposed.
3.3.2 Prepare supporting documentation, including standard tender documents for RE IPPs draft project
licenses/concession, sales contracts, etc. If open door is decided standards documents for submitting LoI and
applications will be prepared.
3.3.3 Proposal for a Focal Point for potential investors. The Ministry of land, water Environment, and Energy, the
Ministry of Finance and Planning (including the PPP unit), ZECO, ZURA, ZEMA, and involved ministerial all have a
role in the process of licensing, and/or tendering for concessions. One entity, and only one, should responsible for
receiving proposals and then initiate the further process.
3.3.4 Workshop on the strategy for wider group of stakeholders.
Activity 4: Technical support to the RGoZ for private projects implementation
Targeted Outputs:
 Sub-work plan for activities related to implementation of selected measures for RE & EE projects













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




developed and approved
Consultation with Lot 1 consultants and EU Delegation on priority projects has been done
Assessment of quality of feasibility studies
Optimal procurement determined
Transaction advice provided to RGoZ
Unsolicited proposals are managed
Identification of priority projects
Suitability of support facilities assessed
Applications for funding sources prepared
Negotiation with funding sources conducted
Bidding and contractual documents are signed by RGoZ and private promoters
A number of projects are designed
A number of projects are under implementation
Monitoring and evaluation plans for projects are developed
Procurement plan for privately financed RE & EE
Standardisation of bidding and contractual documents (Templates)
Feasibility studies
Biomass projects identified
Biomass project preparation studies are done (surveys conducted, evaluation, financing schemes...)
Meetings, workshops and public information events will be held
Deliverable (as per the Project ToR: bidding and contractual documents to be signed by RGoZ and project
promoters+ feasibility studies / Pre-operational surveys of RE & EE projects + Monitoring & Evaluation plan.
Activity 4.1
Support RGoZ in Private Sector Project Preparation
4.1.1 Prepare plan for implementation activities for each measure or project with a favourable cost/benefit
balance, roadmaps implementation will be prepared - clearly identifying:
 Project documents and agreements needed during project development.
 Required human and technical resources and if these are available in the RGoZ institutions.
Methodology and Approach
Page 34 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report


Costs and possible funding sources: Costs to be carried by the private partners and costs to be borne by
RGoZ.
Timeline with major milestones and critical issues.
4.1.2 Consult with Lot 1 and EU Delegation on priority projects.
4.1.3 Check the feasibility studies prepared by private companies for completeness and quality. To be done jointly
with ZECO and at the Ministry.
Activity 4.2
Prepare basis for decision on procurement procedures
4.2.1. Preparation of proposal for the best-suited strategy for PPP procurement, IPP, and standard PPA,
considering costs and benefits.
4.2.2 Assist managing unsolicited proposals received by the MoLWEE using the Regulatory guidelines developed
under Activity 2. Until it is decided to continue/discontinue this Open Door approach, these applications must be
treated seriously. Using the Regulatory guidelines developed under Activity 2, assistance to ZECO in managing
these proposals will continue.
Activity 4.3
Possible Pilot projects
4.3.1 Chose candidate Pilot Projects from the unsolicited proposals sent to MoLWEE. The financial analysis
prepared earlier will allow identifying the most suited. The financial analysis will show the needed feed in tariff for
each project t make the project financial viable.
4.3.2 If called for assist in negotiation with funding sources.
4.3.3 Prepare monitoring and evaluation plans for each project with indicators, training needs, and estimate costs.
For EE the indicators will include, the number of installations, and the increased public awareness of a technology,
and kWh saved.
Activity 4.4
Options
Assessing Possibilities for Biomass Power Plant Projects and Waste to Energy
4.4.1 Review of a long list of identified opportunities for biomass-to-power projects, including:

Landfill biogas power plant.

Small-scale biomass plants fed by agricultural waste.

Small-scale biogas plants fed by domestic waste from villages or hotels.

Facilitate/Revival the development of the UNIDO-funded hybrid-project (PV and gasifier) at Kisakasaka
(on paper).
A shortlist will be presented for RGoZ for selection of 1 to 3 projects to be further elaborated.
Activity 5: Technical support to the RGoZ for state-run projects implementation
Targeted Outputs:


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

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

Decision matrix for selection of state-run projects developed
Cost-benefit analysis on promising projects prepared (priority list)
Consultation with RGoZ held
Needs for technical assistance defined
List of priority state-run projects consolidated
Workshop with development partners and other partners (e.g. NGOs) held
Implementation plan prepared
Projects needing additional support are identified
Facilities for support are assessed
Applications/proposals for funds/facilities are prepared
Feasibility Study Reports
Sub-work plan
Methodology and Approach
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 Business plans developed
 Financing application documents prepared
 Monitoring and Evaluation plans prepared
Deliverable (as per the Project ToR): feasibility study reports, technical & economic tools, business plans,
financing application documents, EE awareness raising tools, workshops, events + Monitoring and evaluation plan.
Activity 5.1
Identify Projects Suitable for Implementation by Government
5.1.1 Prepare a multi-criteria decision matrix to select state-run projects. Possible projects for RGoZ
implementation will be selected based a defined rating scale, leading to a multi-criteria matrix.
5.1.2 Technical Committee and/or the Steering Committee to make hearing among stakeholders on pre-selected
list of possible projects.
5.1.3 Prepare cost benefit analysis on promising projects types. These could be LED, solar water heaters, bio
digesters, grid connected solar PV and wind power plants, small-scale biomass power plant, and PV-Wind hybrid
systems special purposes. The barriers and the expected benefits will be assessed and summarized. Selection of
the most appropriate improved cooking stove to be promoted will be based on suitability for the cooking needs,
available fuel and affordability.
Activity 5.2
Prepare Implementation Plan for Priority and Pilot Projects
5.2.1 Assess the implementation capacity of key state entities. The tasks should be well defined to assess the
capacity of the entities selected to implement them.
5.2.2 Consolidate priority list of projects for RGoZ implementation with TC and SC.
5.2.3 Workshop for stakeholders, including NGOs and private entities, on possible support from development
partners.
5.2.4 Preparation of an implementation plan, outlining the organisation, expected outcomes, activities, and the
resources needed.
Activity 5.3
Assess Financing Options for Larger State-Run Projects
5.3.1 Identify possible sources of financing for large-scale projects in need of additional financial support. This
includes institutional lenders and private sector lenders, and could be as grants or equity. The consultant will
assist preparing documentation demanded during possible negotiations.
Activity 5.4
Support to RGoZ for Implementing Projects
5.4.1 Prepare ToR for awareness and training activities.
5.4.2 Provide technical assistance for implementation.
5.4.3 Prepare plans for monitoring and evaluation for each project. This to include recommendations on key
performance indicators, setting baseline data, data collection instruments, frequency of data collection, training
needs, and estimate costs.
Activity 6: Training and support learning process
Targeted Outputs:









Training needs assessment performed
Questionnaire to evaluate status of learning process, administered and analysed
List of potential training and capacity-building measures including mentor programme prepared
Consultation on training needs with stakeholders held
Potential to cooperate with training institutions assessed
Training plan drafted
Training documents and material (leaflets/ posters)
Trainees and trainers identified
Facilities for support for capacity building assessed
Methodology and Approach
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 Implementation of Learning Courses, Hands-on experiences, Workshops
 Participatory approaches defined (OST- Open Space Technology, Participatory Planning...)
 ZECO has visited and kept contact for advises with a “mentor”
Deliverable (as per the Project ToR): training plan, training documents and material + implementation.
Organisation of Mentoring Arrangement with a utility having gone through the process ZECO is facing.
Activity 6.1
Perform Training Needs Assessment
6.1.1 Prepare questionnaire to determine the level of skills, education, experiences, and the self-awareness of
need for further training. Further the questionnaire will call for self-awareness of needed development of skills.
The main issues that will be taken into account are:

Draft an easily understandable standard format to collect information.

Prepare and plan quality criteria to evaluate, skills, education and experiences of stakeholders.

Prepare a qualitative and quantitative (when feasible) analysis of the findings .
6.1.2 Prepare list of potential training and capacity building measures. The list will include focus groups and
approaches to enhance personal and collective level of understanding the tasks ahead and enable individuals and
units to handle these.
6.1.3 Consultations with the implementing agency and the beneficiaries of the training need assessment to
identify

Specific needs for skills and support learning processes.

Capacity and needs of main energy stakeholders.

Barriers and gaps in the preparation of policies, technology applications, financial context.
6.1.4 Prepare and plan Mentoring Arrangement with a utility that has already gone through the process as ZECO is
facing. This includes:

Identification of suitable Mentor and initiate dialogue.

Determine what ZECO could gain from the arrangement with the help of the potential Mentor.

Arrange for visit, including agendas, preparation of participants, and preparation of the Mentor. Defining
what the participants and ZECO want to gain from the visit.

Prepare for continuous contact with the Mentor, appointment of responsible persons, frequency of
contact, sort of contact, establishing personal relations for ease of contact.

Visit Mentor and/or prepare communication channels.
Activity 6.2
Prepare Training Plan
6.2.1 Liaise with and prepare assessment of the capacity of training institutions, among others, Karume Technical
College, Zanzibar College of Business Education (ZCBE) and the Zanzibar University to establish cooperation,
surfacing possible gaps in existing capacity, level of know-how, and resources available.
6.2.2 Prepare training plan, documents, and material needed for elevating skills and support learning process,
including M&E plan for the training plan is defined and agreed this include planning of training sessions,
observing:
6.2.3 Identify trainees and trainers for each training activity.
6.2.4 Assess facilities for support of capacity building.
Activity 6.3
On the Job Training and Learning Processes
6.3.1 Implement and supervise the training plan, which involves workshops, seminars, study tours (mentoring
arrangement), on-the-job guidance, learning courses, hands-on experiences, conferences and
communication/dissemination activities. In addition, Training-of-Trainers (ToT) seminars can be designed and
undertaken in order to ensure a sustainable learning process.
6.3.2 Solicit participation of stakeholders, through:
Methodology and Approach
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
Organising participatory activities while RE&EE projects are under implementation in order to facilitate
the knowledge transfer between all actors involved.

Daily collaboration between the International Staff and institutional officials to undertake tasks of this
Project.
6.3.3 Regular reporting will be required by all parties in order to evaluate the adequacy of the training against the
targets so as to be adjusted if necessary.
Activity 7: Communication and visibility
! Nota Bene: The Communication and Visibility Plan to be elaborated by an experienced Communication Expert
expected to be deployed by the project in August 2016. The coincidence of events during the project inception
period has delayed the input on this activity but this will be compensated with intensive action in the beginning of
the implementation phase. Outlines of the Communication and Visibility Plan are presented in Annex D.
Targeted Outputs:












Consultation with RGoZ and EUD done
Communication and visibility plan drafted
Budget compiled for brochures, awareness campaigns, publishing…
Social Media Communication strategy
Knowledge and visibility content developed for internet and social media
Virtual project profile developed and registered on capacity4dev.eu
Content for websites (RGoZ and ZECO) developed
Material for communication and visibility compiled
Workshops and events and other activity planned in the C&V strategy organised and implemented
Regular updating of traditional and social media on project progress
Feedback from audiences sought
Awareness raising tools prepared
Deliverable (as per the Project ToR): implementation of the communication & visibility plan (awareness raising
tools, workshops, events, etc.).
Activity 7.1
Prepare Communication and Visibility and Plan
7.1.1 Hearing of all project stakeholders and ensure that aims, approach, outputs, key events, (indicative)
calendar and distribution of responsibilities are agreed on.
Compile a list of stakeholders and their respective profiles in order to select the appropriate communication
media and language for external communication, as well as to establish the identity the project will communicate
throughout its lifetime.
7.1.2 Preparation of a C&V plan, in line with http://europa.eu.int/comm/europeaid/visibility, that defines aims
and objectives of communication with the listed target audience, and


Proposes tools and channels to achieve the aims of communication .
Defines the time frame for actions.
For maximum efficiency and clarity, three clear communication channels will be used, each of which focus on
different target groups:



The upward channel entails the communication with the RGoZ, the Steering Committee, the
Technical Committee and EU Delegation to allow for cooperation and reporting on the progress.
The downward channel provides direction to the project through internal communication within
the team.
The lateral channel targets the other groups (population at large, other stakeholders etc.).
The Communication strategy will regularly be updated to include changing external conditions, circumstances and
demand from stakeholders.
Methodology and Approach
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7.1.3 The cost of all C&V activities for Lot 1 and Lot 2 results will be estimated on the basis of actual quotes
provided by service providers (locally if possible) and past experience. Whenever approval is requested from the
Contracting Authority on a budget item, authorisation will be requested. .
Activity 7.2
Prepare Social Media Communication Strategy
7.2.1 Consult on confidentially before openly sharing information on social media or other communication
channel as the project can be very technical in nature, involving policy advice and competitive procurement.
As it has shown during the Inception Phase, Facebook and other social media are less widespread in Zanzibar and
other means of communication with the wider population, this could be as radio broadcasts and to a lesser
degree TV. Only a little more than 50% of the population has electricity in their home, and that is a constraint on
the communication. Smartphones are widely used, and making people bourse for energy issues requires smart
ways of conveying messages.
7.2.2 Preparation of specific information material for the targeted groups. The information sharing will
periodically be assessed and updated, in accordance with findings of the stakeholder interviews. Distribution list
for sharing an e-newsletter will be prepared and used for dissemination of information.
7.2.3 Prepare a virtual project profile, and register on capacity4dev.eu to enable interaction with public groups
and to allow access to closed collaboration spaces. The platform has the potential to become a centre for
promoting best practice and sharing information.
7.2.4 Prepare content for RGoZ websites such as http://zanzibar.go.tz and the ZECO webpage (http://tukuza.net).
Activity 7.3
Implement communication and visibility plan
7.3.1 Compile data and produce material for sharing, communication and visibility (photos, videos, maps, reports,
documents). Material will be prepared around key messages, logical, and tailored to the interests of the audience.
The three core messages of this specific project are to answer the following questions:
 What does the project do?
 How does it do it?
 Why is it relevant to the target audience
7.3.2 Organise and implement events, workshops and other activities of C&V Plan. This will be done closely
contact in close contact with the Beneficiary and the EU Delegation.
7.3.3 Regularly update webpage and up-loading of new documents. As the Project progresses and prepare new
information martials and messages, these will be aired for sharing.
7.3.4 Seek feedback from target audiences. This is particularly important as the wrong perception can cause
considerable opposition to any initiative and activity.
5
5.1
PROJECT RESOURCES
Human Resources Input
The following table gives an overview of overall use of human resources for the realisation of the Project (Key
and Non-Key expertise):
98
Category of experts
Key Expert 1: Team leader/
Power Engineer
Key
Experts
Key expert 2: EE and RE
Economist and financing expert
Senior International Experts
Non-Key
10
Name
Number of man days
Mr Niels Juhl Thomsen
350
Mr Alejandro Saenz-Core
24010
to be determined
100
KE2 is part-time involved in the project. A mission plan for the timing of KE2 input is proposed as a part of Annex C: Draft Work Plan.
Project Resources
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Experts
5.2
Senior Local Experts
Junior Local Experts
to be determined
to be determined
180
300
IE Budget Breakdown
In accordance with section 6.5 of the TOR, the Provision for incidental expenditure covers the ancillary and
exceptional eligible expenditure incurred under this contract. Its use is governed by the provisions in the General
Conditions and the notes in Annex V of the contract. It covers:
99
[A] Travel costs and subsistence allowances for missions, outside the normal place of duty (Zanzibar
Archipelago), undertaken as part of this contract. If applicable, indicate whether the provision includes costs
for environmental measures, for example C02 offsetting.
>
Daily subsistence costs may be reimbursed for missions foreseen in these terms of reference or
approved by the Contracting Authority, and carried out by the contractor’s authorised experts,
outside the expert’s normal place of posting.
>
The per diem is a flat-rate maximum sum covering daily subsistence costs. These include
accommodation, meals, tips and local travel, including travel to and from the airport. Taxi fares are
therefore covered by the per diem. Per diem are payable on the basis of the number of hours spent
on the mission by the contractor's authorised experts for missions carried out outside the expert's
normal place of posting. The per diem is payable if the duration of the mission is 12 hours or more.
The per diem may be paid in half or in full, with 12 hours = 50% of the per diem rate and 24 hours =
100% of the per diem rate. Any subsistence allowances to be paid for missions undertaken as part
of this contract must not exceed the per diem rates published on the webs ite:
http://ec.europa.eu/europeaid/perdiem_en - at the start of each such mission.
>
The Contracting Authority reserves the right to reject payment of per diem for time spent travelling
if the most direct route and the most economical fare criteria have not been applied.
[B] Translation of training and workshop materials into Kiswahili.
[C] Organisation of workshops and seminars, incl. rent of facilities and national per diems to the attendees
for specific seminar/workshops and training.
[D] Awareness campaigns and visibility activities including material and service provision.
>
The costs may include: renting of premises, renting of equipment, brochures, publications,
presentation materials, interpretation and/or translation services, printing, etc.
Prior approval by the Contracting Authority for the use of the incidental expenditure is not needed. The
Provision for incidental expenditure for this contract is EUR 220 000,00.
100
Project Resources
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6
6.1
PROJECT MANAGEMENT AND COORDINATION
Roles and Responsibilities
101
The Contracting Authority (CA) is the Alternate National Authorizing Officer (NAO).
102
The Implementing Agency (IA) is the Ministry of Land, Housing, Water and Energy (MLHWE).
A Steering Committee (SC) has been established to monitor the programme and approve the main steps and
decisions. It is established with representatives from of different institutions, including Ministry of Finance
(Chairman), MoLWEE, ZECO, Ministry of Agriculture, Planning Commission and EU as observer. The list of the SC
member of the Zanzibar Renewable Energy Programme is provided in Annex F.
103
A Technical Committee (TC) has been established under the tutelage of MLHWE to implement the
programme. It is comprised of officers of DoEM, Department of Land, Department of Environment, Department of
Forest and Natural Resources, Planning Commission, ZECO and Ministry of Finance (multilateral cooperation). The
list of TC members is provided in Annex F.
104
A Program Manager (PM). Mr Maulid Shiraz has been appointed to coordinate the implementation activities.
He is an engineer working at ZECO in the Corporate Planning Department.
105
A Secretary has been appointed to convene the SC and TC meetings and to ensure the coordination between
MoF&P, the other institutions and the development partners. Ms Sabra Machano is the project main point of
contact representing the Contracting Authority and at the same time the appointed SC and TC Secretary.
106
6.2
Project Organisation
The proposed project organisation is illustrated in the figure below. The full-drawn lines with arrows are
“lines of reference”, whereas the broken lines are “lines of communication”.
107
NAO
MLHWE
Steering Committee
Beneficiary and Stakeholders
Population of Zanzibar
Technical Committee
ZECO, Ministry of Finance, Ministry of Agriculture, Planning Commission
TANESCO
ESCOs, NGOs and civil society organisations
SIDA, MCC, Norad, and other international partners
Project Implementation
Team Leader, Gerhard Zieroth
EE & RE Economist and financing expert, Alejandro Saenz Core
Non- Key Experts
International Experts
Local Experts
Technical Advisory Board
20Members of the Technical Advisory
Board
Quality Advisor = Project Director
Project Management Unit
Project Director
Project Manager
Project Management Assistant
Financial and Resourcing Team
Line of Reference
Line of Communication
Project Management and Coordination
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7
REPORTING AND DELIVERABLES
The Project reporting will be in strict compliance with the requirements under paragraph 7 of the Terms of
Reference (see Annex A) and article 26 of the General conditions for service contracts financed by the EU.
108
The TAT will carry out timely and accurate reporting of all activities carried out during the project’s
implementation, and will guarantee the constant availability of all necessary supporting documents, records and
accounts. Two types of reports will be submitted (1) Progress reports (2) Technical reports as defined on page 17
of the Terms of Reference.
109
7.1
6-monthly Progress Reports
The Progress reports will be prepared and presented no later than 1 month after the end of each 6-month
implementation period. These reports will monitor all technical, financial and administrative aspects of the
project. They will give a clear “one-look” summary overview of the implementation and will provide a general
overview on the actual project progress, the location and activities carried out including a summary on the used
working days, resources used during the period, used methods and achieved results, the potential challenges and
constraints encountered, a work plan for the following months, as well as proposed changes with regards to the
previous report and recommendations for future actions. The structure of the report will be agreed with the
Contracting Authority.
110
111
The Interim Reports will be submitted in 6-month intervals for the project duration.
They will include a narrative and a financial section and be provided along with the corresponding invoice, the
financial report and an expenditure verification report defined in Article 28 of the General Conditions.
112
7.2
Draft Final Report and Final Report
The Final report will be prepared and presented within 1 month of receiving comments on the draft final
report from the Project Manager identified in the contract (month 24). The Final Report will tentatively include:
113
>
Complete overview of all activities implemented with time inputs of the experts and the progress
achieved against the work plan as well as a summary of outputs.
>
Identification of any major problems, which may have arisen during th e performance of the
Contract.
>
Assessment of the outcomes of the project measured against the stated project objectives and the
indicators of achievement included in the Logical Frame Matrix.
>
Report on technical, financial and administrative aspects of the project implementation.
>
Proposal for future actions.
>
A CD-ROM containing all materials produced under the Project.
>
Final Financial Report and Expenditure Verification Report including a comprehensive financial
statement for the programme in line with the PRAG.
>
Final update of the monitoring spread sheet.
>
Final Invoice.
The final report, a final invoice and the financial report accompanied by an expenditure verification report
will be submitted at the end of the period of implementation of tasks, at the end of month 24.
114
Reporting and Deliverables
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7.3
Technical Reports
In addition and in line with Section 4.2, following reports have also to be produced and submitted to the
Contracting Authority:
115
Technical Report
Content
A1. Opportunities
assessment on RE & EE
options
Market appraisal in Zanzibar for RE & EE
technologies, cost-benefit analysis + proposal of
policy paper including detailed action plans with
priorities, budget and schedule
Analysis and proposition of a conducive legal,
regulatory and institutional framework in Zanzibar
for RE & EE, including practical roll-out plans and
documentation
Cost-benefit analysis of the supporting
mechanisms and instruments. Proposition,
recommendations and drafting of the related
supporting documents (guidelines, audits, etc.)
Bidding and contractual documents signed by
RGoZ and project promoters+ feasibility studies /
Pre-operational surveys of RE & EE projects,
workshops & training documents + Monitoring &
Evaluation plan
Feasibility study reports, technical & economic
tools, business plans, financing application
documents, EE awareness raising tools,
workshops & training documents +
Monitoring and evaluation plan
A2. All documentation
related to legal, regulatory
and institutional framework
A3. Set of documents of
supporting mechanisms
adopted by RGoZ
A4. Technical support
documents for private
projects implementation
A5. Technical support
documents for state-run
projects implementation
7.4
Indicative Submission
Date
3 months after project
inception
5 months after project
inception
7 months after project
inception
Every 6 months from
the inception
Every 6 months from
the inception
Report submission and approval procedure
Prepared by:
Team Leader (with support from the rest of the TAT)
Quality Assurance by:
MWH Project Manager / MWH Project Director
Submitted to:
>
>
Project Manager (Contracting Authority)
Electronically to all key stakeholders
Quantity:
5 paper copy and 1 electronic version (word format)
Language:
English
Timing:
>
>
>
>
>
Approved by:
>
>
Inception Report: within 6 weeks after start of implementation (month 2);
Interim Reports: every six months;
Draft Final Report: one month before the end of the project (month 23);
Final Report: at the end of the project (month 24);
Technical Reports: as indicated above.
Project Manager (as identified in the Project ToR)
Each of the reports and technical deliverables shall be provided as a draft and
give the beneficiary country two weeks to comment on the drafts. In the
absence of comments or approval by the beneficiary country within the set
deadline, the reports are deemed to be approved
Reporting and Deliverables
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All the reporting will be done in accordance with the EU reporting guidelines and the Consortium will take full
responsibility for their submission.
116
Copyright on all reports and other materials produced under this contract shall remain with the Contracting
Authority.
117
No major report or document shall be published or distributed to third parties without the approval of the
Contracting Authority and the Beneficiary. Reports or other documents/outputs produced by the MWH
Consortium for publication or distribution to third parties will:
118

Pay particular attention to the confidentiality of data;

Mention the source of funding of this project;

Following the visibility rules of the EC which can be download at:
http://ec.europa.eu/europeaid/work/visibility/index_en.htm;
Make clear that any opinions expressed therein remain those of the Consultant and do not represent the
opinion of the European Commission, its services or agencies.
119
Reporting and Deliverables
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8
MONITORING AND EVALUATION
Contract monitoring and evaluation will be based on a periodic assessment of progress on delivery of
specified Project results and towards achievement of Project objectives.
120
Indicators of Achievement (OVI)
Results
Result 1: A cost-benefit analysis of
each of the RE&EE technologies is
available
Result 2: A conducive legislation &
regulation for RE & EE including rollout plans and documentation is
developed and approved by
programme counterparts
Result 3: The regulatory and
licensing requirements and
prerequisites for the development
of wind and solar energy in Zanzibar
are clearly described
Result 4: An action plan for RE
projects & EE actions with schedule
is defined and under
implementation
Result 5: Supporting mechanisms
introduced by the RGoZ and geared
to the private project promoters are
defined and effective
Result 6: At least 5 EE measures
(e.g. energy audit and action plans,
awareness campaigns to
government institutions, schools,
hotels etc.) and 2 RE projects (e.g.
through technical assistance for
preparation of pilot projects, call for
proposals, PPA negotiation and
development, etc.) are under
implementation
Indicators
1) Cost-benefit analysis has been
undertaken
Means of Verification
> Cost-benefit analysis
> Regular progress reports
> Final report
Proposals for legislation and
regulation for RE & EE
3) Roll-out plans
4) Documents on legal, regulatory
and institutional framework
prepared
5) Proposals for legislation and
regulation for RE & EE including
proposals for wind and solar
energy submitted
6) Roll-out plans are ready
7) Documents on legal, regulatory
and institutional framework
submitted
8) Action plan prepared
9) Projects implemented or under
implementation
10) Projects are following the
schedule defined
11) Number of people benefiting
from projects
12) List of supporting mechanisms
submitted
13) Supporting mechanisms are
effective
14) Increased number of projects
15) Increased availability of
technology
16) Energy audits done
17) Number of campaigns
18) Number of government staff
having participated in awareness
campaigns
19) Number of school pupils having
participated in awareness
campaigns
20) Number of hotel staff having
participated in awareness
campaigns
21) Number of leaflets distributed
22) Two RE projects are under
>
2)
Proposals for legislation and
regulation
> Regular progress reports
> (Draft) Final report
>
Proposals for legislation and
regulation are present
> Regular progress reports
> (Draft) Final report
>
Regular progress reports
> (Draft) Final report
>
List of supporting mechanisms
> RGoZ website
> Regulatory framework effective
> Regular progress reports
> (Draft) Final report
>
Awareness programme materials
Regular progress reports
> (Draft) Final report
>
Monitoring and Evaluation
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Results
Indicators
implementation
Means of Verification
Result 7: Improved awareness of
23)
Number of people aware of RE &
EE
24) Number of people willing to pay
for RE instead of traditional
electricity
25) Number of projects proposed to
government
26) Number of projects under
implementation
27) Communication and visibility
plan is implemented
>
RE & EE among the population of
Zanzibar
9
Survey
> Awareness campaign materials
> RGoZ website
> Regular progress reports
> (Draft) Final report
LIST OF REFERENCES
General energy background
1) ZANZIBAR ENERGY SECTOR REVIEW, UNDAP, Jul 2015
2) Zanzibar Energy Policy, Dec 2009
3) Zanzibar Energy Policy, Implementation Plan Department of Energy and Minerals, 2013
4) Energy Sector Review: Sector Survey, Zanzibar Planning Commission, 2014
5) Gender, Health and Social Aspects of SE4ALL Goals: Women’s economic empowerment,
Power point, Energia, ESMAP, Nov 2013
6) Zanzibar Regulatory Utility Authority (ZURA) Act, 2013
7) SDG energy goals
8) Zanzibar Environmental Policy, RGoZ, 2013
9) Fossil Fuels and Renewable Energy – The Zanzibar Case Study Aboud S. Jumbe, Policy
Planning & Research Unit, Department of Environment
10) Fossil Fuel to Renewable Energy, Comparator Study of Subsidy Reforms and Energy
Transitions in African and Indian Ocean Island States, United Nations Office for Sustainable
Development.
Statistical information
1) 2002 Census analytical report
2) 2012 Population and Housing Census, Population Distribution by Administrative Areas
3) 2012 Population and Housing Census, Preliminary Results; Analysis of Population Growth
4) Dynamics and Socio-Economic Development Perspectives, NBS/OCGS June 2013
5) 2012 Population and Housing Census, Basic Demographic and Socio-Economic Profile Report
Statistical Tables, Tanzania Zanzibar. NBS/OCGS April 2014
6) 2012 Population and Housing Census, Basic Demographic and Socio-Economic Profile,
Tanzania Zanzibar, April 2014
Electricity sector
1) TANESCO and ZECO loss reduction study MCA Sept 11.
2) Zanzibar Renewable Energy Feed-in-Tariffs, Second Draft -NEXANT Jan 2013
3) Zanzibar Potential Independent Power Producer Interviews – NEXANT Jan 2013
4) Zanzibar Renewable Energy Assessment, EU/MWH consultants, June 2012
5) SIDA, Zanzibar Energy Diagnostic Study AF-Process AB, May 2005
List of References
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6)
7)
8)
9)
10)
11)
12)
SIDA, End of Term Review of the Swedish Support to the Zanzibar Energy Sector 2007 – 09,
Spanne et al Consultants, June 2010
SIDA, Energy Sector Programme Phase II, Project Document, Oct 2013
TANESCO Tariffs 2014
Model Power Purchase Agreement relating to the Wind Power Generation Plant
EWURA SPPA Document 2012
EAC Regional Scoping Study to Identify Potential areas for Intervention by the EAC Secretariat
on Renewable Energy and Energy Efficiency, EAC/GIZ consultant Gerard Hendriksen, Dec
2013
Adaptation of Feed-in Tariff for remote mini-grids: Tanzania as an illustrative case, Renewable
and Sustainable Energy Reviews, Volume 53, January 2016, Pages 306–318
Climate Change Information
1) The Economics of Climate Change in Zanzibar, Technical Report (Final Version), UKaid, July
2012
List of References
Page 47 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
10 ANNEXES
Annexes
Page 48 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Annex A: Project Terms of Reference
(Enclosed as separate document.)
Annexes
Page 49 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
Annex B: Updated Logframe
I NTERVENTION LOGIC
O BJECTIVELY V ERIFIABLE INDICATORS OF
A CHIEVEMENT
S OURCES AND M EANS OF V ERIFICATION
>
Frequency of illness (e.g. respiratory
diseases from e.g. indoor use of fuel
wood/charcoal
Increased access by households to energy
from RE sources/ using EE measures
Increased access by poorest households to
RE sources/ from using EE measures
Number of MW generated from renewable
energy sources
Number of MWh/year saved
Favourable legal and regulatory,
environment created for EE and RE
projects
Increased awareness on RE & EE
Number of projects on RE & EE
>
Regulatory framework has been prepared
(no of proposals for framework)
Number of staff/stake-holders trained
Number of projects that have been
developed
Number of RE & EE projects under
implementation
Increased number of investments in RE &
EE
Number of people benefiting from projects
Increased public awareness on benefits of
RE and EE
>
A SSUMPTIONS
Overall objective
The overall objective is to support United
Republic of Tanzania in developing
interventions promoting socio-economic
development based on renewable energy and
efficient energy management.
>
>
>
>
>
>
>
>
Surveys
National Statistics
Project Purposes
The specific objective is to support the
development of renewable energies in
Zanzibar, promote implementation of
energy efficiency and adequate regulatory
and institutional framework through
appropriate transfer of know-how and
capacity development of stakeholders.
>
>
>
>
>
>
>
>
>
>
Questionnaires to staff/stakeholders
Questionnaires to customers/energy users
Final report
Final evaluation
>
>
>
>
>
Staff/stakeholders committed
Human & technical resources available
Political support
Interest from potential investors
Public interest in participating.
Annexes
Page 50 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
O BJECTIVELY V ERIFIABLE INDICATORS OF
A CHIEVEMENT
S OURCES AND M EANS OF V ERIFICATION
A SSUMPTIONS
RESULT 1
A cost-benefit analysis of each of the RE&EE
technologies is available
>
>
Cost-benefit analysis
Regular progress reports
Final report
>
Sufficient data/quality of input data
available
RESULT 2
A conducive legislation & regulation for RE &
EE including roll-out plans and
documentation is developed and approved
by programme counterparts
>
Proposals for legislation and regulation
Regular progress reports
(Draft) Final report
>
Sustained support from RGoZ for the
development of specific regulation and
institutions for renewable energy and
energy efficiency
RESULT 3
The regulatory and licensing requirements
and prerequisites for the development of
wind and solar energy in Zanzibar are clearly
described
>
Proposals for legislation and regulation are
present
Regular progress reports
(Draft) Final report
>
Sustained support from RGoZ for the
development of specific regulation and
institutions for renewable energy and
energy efficiency
Sustained involvement of the Zanzibar
counterparts to support the consultant in
the process
RESULT 4
An action plan for RE projects & EE actions
with schedule is defined and under
implementation
>
I NTERVENTION LOGIC
Project Results
>
>
>
>
>
>
>
>
>
RESULT 5
Supporting mechanisms introduced by the
RGoZ and geared to the private project
promoters are defined and effective
Cost-benefit analysis has been undertaken
>
>
>
>
Proposals for legislation and regulation for
RE & EE
Roll-out plans
Documents on legal, regulatory and
institutional framework prepared
>
Proposals for legislation and regulation for
RE & EE including proposals for wind and
solar energy submitted
Roll-out plans are ready
Documents on legal, regulatory and
institutional framework submitted
>
Action plan prepared
Projects implemented or under
implementation
Projects are following the schedule defined
Number of people benefiting from projects
>
List of supporting mechanisms submitted
Supporting mechanisms are effective
Increased number of projects
Increased availability of technology
>
>
>
>
>
>
>
>
>
>
>
Regular progress reports
(Draft) Final report
>
Sustained involvement of the Zanzibar
counterparts to support the consultant in
the process
List of supporting mechanisms
RGoZ website
Regulatory framework effective
Regular progress reports
(Draft) Final report
>
Sustained broader political support
Sustained support from RGoZ
Sustained involvement of the Zanzibar
counterparts to support the consultant in
the process
>
>
Annexes
Page 51 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
I NTERVENTION LOGIC
RESULT 6
At least 5 EE measures (e.g. energy audit and
action plans, awareness campaigns to
government institutions, schools, hotels etc.)
and 2 RE projects (e.g. through technical
assistance for preparation of pilot projects,
call for proposals, PPA negotiation and
development, etc.) are under
implementation
O BJECTIVELY V ERIFIABLE INDICATORS OF
A CHIEVEMENT
S OURCES AND M EANS OF V ERIFICATION
A SSUMPTIONS
>
Energy audits done
Number of campaigns
Number of government staff having
participated in awareness campaigns
Number of school pupils having
participated in awareness campaigns
Number of hotel staff having participated
in awareness campaigns
Number of leaflets distributed
Two RE projects are under implementation
>
>
Number of people aware of RE & EE
Number of people willing to pay for RE
instead of traditional electricity
Number of projects proposed to
government
Number of projects under implementation
Communication and visibility plan is
implemented
>
>
>
>
>
>
>
RESULT 7
Improved awareness of RE & EE among the
population of Zanzibar
>
>
>
>
>
>
>
Awareness programme materials
Regular progress reports
(Draft) Final report
>
>
>
>
>
>
>
>
Survey
Awareness campaign materials
RGoZ website
Regular progress reports
(Draft) Final report
>
Institutional/management capacity within
ZECO and DoEM sufficient to host and
oversee complex project development
exercise and grid integration
Willingness/capacity to pay from
customers
Readiness/interest in RE & EE from
customers
Readiness from investors
Institutional, legal and regulatory
framework is in place
Interest in RE & EE awareness campaigns
from customers
Annexes
Page 52 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
Annex C: Draft Work Plan
Year
2016
Month
6
7
2017
8
9
1
0
11
12
1
2
2018
3
4
5
6
7
8
9
1
0
11
1
2
1
2
3
4
5
6
ACTIVITY 1: Opportunities assessment of RE/EE technologies for Zanzibar
Activity
1.1 -
CONSOLIDATION OF DATABASE FOR RE
AND EE
Activity
1.2 -
ASSESSMENT OF RESULTS/OUTCOMES OF
LOT 1 FEASIBILITY STUDIES
Activity
1.3 -
ASSESSMENT OF FINANCING OPTIONS
FOR RE AND EE INVESTMENTS AND
MEASURES
Activity
1.4 -
REPORT ON OPPORTUNITIES ASSESSMENT
ON RE & EE OPTIONS
ACTIVITY 2: RE & EE regulatory framework for Zanzibar
Activity
2.2 -
INVENTORY OF EFFECTIVE FINANCIAL
INCENTIVES
Activity
2.3 -
REGULATORY IMPACT ASSESSMENT
Activity
2.4 -
DRAFTING OF REGULATORY GUIDE AS A
WORKING PAPER, PRELIMINARY MANUAL
AND BASIS FOR RECOMMENDATIONS ON
COMPREHENSIVE REGULATION
Activity
2.5 -
DRAFTING LEGAL, REGULATORY AND
INSTITUTIONAL FRAMEWORK
ACTIVITY 3: Supporting mechanisms introduced by the RGoZ and geared to the private project promoters
Activity
3.1 -
REVIEW OF INTERNATIONAL PRACTICES
AND OPPORTUNITIES FOR MECHANISMS
SUPPORTING THE PRIVATE SECTOR
(ENABLING FRAMEWORK)
Activity
3.2 -
COST BENEFIT ANALYSIS
Annexes
Page 53 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
Activity
3.3 -
COMPREHENSIVE STRATEGY OF PRIVATE
SECTOR SUPPORTING MECHANISMS
ACTIVITY 4: Technical support to the RGoZ for private projects implementation
Activity
4.1 -
SUPPORT RGOZ IN PRIVATE PROJECT
PREPARATION
Activity
4.2 -
ADVISE ON PROCUREMENT PROCEDURES
FOR PRIVATE PROJECTS
Activity
4.3 -
SUPPORT TO IMPLEMENTATION OF PILOT
PROJECTS
Activity
4.4 -
PREPARATION OF BIOMASS POWER
PLANT PROJECT
ACTIVITY 5: Technical support to the RGoZ for state-run projects implementation
Activity
5.1 -
IDENTIFY PROJECTS SUITABLE FOR
IMPLEMENTATION BY GOVERNMENT
Activity
5.2 -
PREPARE IMPLEMENTATION PLAN FOR
PRIORITY AND PILOT PROJECTS
Activity
5.3 -
ASSESS FINANCING OPTIONS FOR LARGER
STATE RUN PROJECTS
Activity
5.4 -
SUPPORT TO RGOZ IN IMPLEMENTING
STATE RUN PROJECTS
ACTIVITY 6: Training and learning process
Activity
6.1 -
PERFORM TRAINING NEEDS ASSESSMENT
Activity
6.2 -
DEVELOP TRAINING PLAN
Activity
6.3 -
ON THE JOB TRAINING AND KNOWLEDGE
TRANSFER
ACTIVITY 7: Communication and visibility
Activity
7.1 -
DEVELOP COMMUNICATION AND
VISIBILITY AND PLAN
Activity
7.2 -
DEVELOP SOCIAL MEDIA
COMMUNICATION STRATEGY
Annexes
Page 54 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
Activity
7.3 -
IMPLEMENT COMMUNICATION AND
VISIBILITY PLAN
CLOSING PHASE
Annexes
Page 55 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
Jun-18
May-18
Apr-18
Mar-18
Feb-18
Jan-18
Dec-17
Nov-17
Oct-17
Sep-17
Aug-17
Jul-17
Jun-17
May-17
Apr-17
Mar-17
Feb-17
Jan-17
Dec-16
Nov-16
Oct-16
calendar month
Sep-16
Jul-16
Aug-16
Allocation of expert working days per expert/month
project month
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Tot
al
KE 1: Team
Leader
17
20
19
19
21
22
8
15
16
18
13
21
19
16
22
16
14
6
8
7
7
4
15
7
350
KE 2: EE & RE
financing expert11
15
15
17
18
20
13
4
12
12
11
5
12
10
9
12
12
8
5
7
6
5
10
2
240
NKE Legal
0
5
5
22
6
12
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
50
NKE Training
0
0
15
11
7
4
5
2
4
2
10
19
10
0
5
14
0
5
5
0
5
5
2
0
130
NKE
Communication
0
10
15
17
20
20
20
20
2
10
12
10
15
10
10
15
12
10
15
10
10
15
12
0
290
NKE Power
Engineer
0
0
0
0
0
0
21
21
20
20
18
0
0
0
0
0
0
0
0
0
0
0
0
0
100
Missions Plan KE2
WD
Mission 1
July 5/Aug 5
15
Mission 2
End Aug/End Sep
32
Mission 3
Oct/Nov
38
Mission 4
Dec/Jan
17
Mission 5
Feb/Mar
24
Mission 6
Apr/May
16
Mission 7
Jun/Jul
22
Mission 8
Aug/Sep
21
Mission 9
Oct/Nov
20
11
KE2 mission plan (each colour stands for separate mission to Zanzibar).
Annexes
Page 56 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including regulatory reforms (Lot 2)
Inception Report
Mission 10
Dec/Jan
12
Mission 11
Feb/Mar
11
Mission 12
Apr/May/jun
12
Annexes
Page 57 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Annex D: Outlines of Communication and Visibility Plan
The goal of the communication and visibility activities under Activity 7 Communication and Visibility of the
current project (lot 2) is to raise awareness of the Zanzibar population on opportunities offered by RE & EE
technologies as well as the support provided by EU in the energy sector in Zanzibar, and to ensure the
sustainability and dissemination of project outcomes and results of the 2 lots (lot 1 and lot 2). In particular this
activity revolves around the development and implementation of a communication and visibility plan aiming at
effective communication actions fitted to the different target audiences:
121




The general public (i.e. the consumers of electricity on Zanzibar)
Potential private sector investors
Energy sector operators (i.e. staff of ZECO, Planning Commission)
Other development partners with similar projects
A key feature of the communication and visibility efforts will be the capitalisation and sharing of knowledge
of technical and pedagogical value related to the project implementation, and RE & EE by establishment of a
knowledge management platform as part of the partner’s Internet webpages, capacity4dev.eu web platform and
the use of social media.
122
All the communication and visibility measures will be designed and implemented in line with the EU visibility
guidelines for external actions (http://europa.eu.int/comm/europeaid/visibility/index_en.htm), and in close
coordination with the EU Delegation to Tanzania and RGoZ. Any activity with information or visibility relevance
will be consulted with and ex-ante approved by the EU Delegation in Tanzania. No public statement or press
materials can be issued unless cleared with RGoZ and the EU Delegation to Tanzania.
123
i.
Purpose of Communication and Visibility Activities
The Communication and Visibility Plan forms an integral part of the project implementation and aims to
ensure that project communications are targeted, effective and well-coordinated, as well as the project is visible,
accessible and accountable to the stakeholders and general public.
124
The appropriate project visibility will be carried out in compliance with the EU External Actions
Communication and Visibility Manual throughout the entire project duration.
125
This communications plan defines how the general communication strategy will be expressed through
practical public relations activities, defining project key messages, project target audience, and the tools at our
disposal.
126
ii.
Overall Communication Objective
The overall communication objective of the project is to ensure the highest sustainability and dissemination
of project results of the both Lot 1 and Lot 2 of Zanzibar Renewable Energy Programme. This will be achieved
through ensuring the capitalisation and sharing of knowledge on project implementation, benefits of RE & EE
technologies, as well as the support provided by EU in the Zanzibar energy sector.
127
iii.
Communication Goal and Objectives
The ultimate goal is to build public awareness and education on the Energy Efficiency and Renewable Energy
in order to initiate actions that will result in improvement of peoples’ quality of living.
128
129
The Communication and Visibility Plan objectives are:


to raise awareness of the Lot 1 and Lot 2 projects and their activities, objectives and impact;
to enhance the visibility of the EU role and contribution in the energy sector in Zanzibar;
Annexes
Page 58 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report


iv.




v.
to promote the EE & RE and their benefits to the Zanzibar population;
to ensure the highest sustainability and dissemination of project results through ensuring the capitalisation
and sharing of knowledge on project implementation.
Key Messages
Introduction and investment in renewable energy technologies and expansion of renewable energy capacity
will help to eliminate energy poverty and to enhance people prosperity.
Increasing the use of renewable energy and improved energy efficiency leads to economic growth, increased
social equity, improved health and environmental sustainability.
Awareness of different energy efficiency options can result in EE behaviour change
EU is financing and supporting the energy sector development in Zanzibar and thus contributing to the
improvement of life quality and wellbeing of Zanzibar population.
Target Groups
The following potential target groups will be reached:





vi.






The general public (i.e. the consumers of electricity on Zanzibar)
Potential private sector investors
Energy sector operators (i.e. staff of ZECO, Planning Commission)
Other development partners with similar projects
Wider development community (via the capacity4dev.eu web platform)
Communication Tools
Personal interactions (daily contact through meetings, phone conversations);
Project events: workshops, training activities, round tables, conferences, promotional events;
Press releases, publication of articles, newsletter (a periodic update sent to our mailing list)
Brochures, flyers and other promotional material;
Web presence and social media: Website, Twitter, Facebook, LinkedIn, Youtube,
Repositories: online storage space for the project documents, articles and data.
! Nota Bene: The Communication and Visibility Plan to be elaborated by an experienced Communication Expert
expected to be deployed by the project in August 2016. The coincidence of events during the project inception
period has delayed a bit the input on this activity but this will be compensated with intensive action in the
beginning of the implementation phase.
Annexes
Page 59 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Annex E: Indicative Allocation of Human Resources
Project Activities
Human Resources Input
Activities related to ACTIVITY 1
Activity 1.1: Consolidation of database for RE & EE
Activity 1.2: Assessment of results/outcomes of lot 1 feasibility studies
Activity 1.3: Assessment of financing options for RE & EE investments
and measures
Activity 1.4: Report on opportunities assessment on RE & EE options
>
>
>
>
>
>
>
>
TL: 7 working days
KE2: 12 working days
TL: 7 working days
KE2: 1 working days
TL: 8 working days
KE2: 3 working days
TL: 6 working days
KE2: 9 working days
Activities related to ACTIVITY 2
Activity 2.1: Review of existing regulatory experiences and best
practices
Activity 2.2: Inventory of effective financial incentives
Activity 2.3: Regulatory impact assessment
>
>
>
>
>
>
Activity 2.4: Drafting of regulatory guide as a working paper,
>
preliminary manual and basis for recommendations on comprehensive >
regulation
>
>
Activity 2.5 Drafting legal, regulatory and institutional framework
>
>
TL: 7 working days
KE2: 8 working days
TL: 1 working day
KE2: 2 working days
TL: 7 working days
KE2: 8 working days
TL: 8 working days
KE2: 5 working days
Senior NKE: 4 working days
TL: 7 working days
KE2: 11 working days
Senior NKE: 36 working days
Activities related to ACTIVITY 3
Activity 3.1: Review of international practices and opportunities for
mechanisms supporting the private sector (enabling framework)
Activity 3.2: Cost benefit analysis
Activity 3.3: Comprehensive strategy of private sector supporting
mechanisms
>
>
>
>
>
>
>
TL: 7 working days
KE2: 3 working days
Senior NKE: 10 working days
TL: 7 working days
KE2: 12 working days
TL: 25 working days
KE2: 16 working days
Activities related to ACTIVITY 4
>
Activity 4.1: Support RGoZ in private project implementation
>
>
Activity 4.2: Advise on priority projects
Activity 4.3: Evaluate potential for concessionary finance and to
support for projects that are financially marginal
>
>
>
>
TL: 7 working days
KE2: 5 working days
Senior NKE: 42 working days
TL: 18 working days
KE2: 11 working days
TL: 38 working days
KE2: 26 working days
Annexes
Page 60 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Activity 4.4: Preparation of biomass power plant project
>
>
TL: 21 working days
KE2: 15 working days
Activities related to ACTIVITY 5
Activity 5.1: Identify projects suitable for implementation by
government
>
Activity 5.2: Prepare implementation plan for priority and pilot
projects
>
Activity 5.3: Assess financing options for larger state run projects
Activity 5.4: Support to RGoZ in implementing state run projects
>
>
>
>
>
>
TL: 5 working days
KE2: 7 working days
TL: 10 working days
KE2: 5 working days
TL: 25 working days
KE2: 10 working days
TL: 32 working days
KE2: 19 working days
Activities related to ACTIVITY 6
Activity 6.1: Perform training needs assessment
Activity 6.2: Develop training plan
>
TL: 7 working days
Senior NKE: 22 working days
>
TL: 20 working days
KE2: 4 working days
Senior NKE: 28 working days
>
>
>
Activity 6.3: On the job training and learning processes
>
>
>
TL: 23 working days
KE2: 14 working days
Senior NKE: 62 working days
Junior NKE: 20 working days
Activities related to ACTIVITY 7
>
Activity 7.1: Develop communication and visibility and plan
>
>
Activity 7.2: Develop social media communication strategy
>
>
>
Activity 7.3: Implement communication and visibility plan
>
>
>
TL: 7 working days
KE2: 3 working days
Junior NKE: 30 working days
TL: 8 working days
KE2: 2 working days
Junior NKE: 28 working days
TL: 15 working days
KE2: 13 working days
Senior NKE: 18 working days
Junior NKE: 222 working days
Annexes
Page 61 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Annex F: List of Steering Committee Members and Technical Committee Members
List of the Steering Committee Members of the Zanzibar Renewable Energy Programme
Steering Committee Member of the Zanzibar Renewable Energy Programme
Name
Designation
Institution
Email
Mr. Khamis M. Omar
Principal Secretary
MoF&P
[email protected]
Mr. Ali Khalil Mirza
Principal Secretary
MLHWE
[email protected]
Mr. Abdalla A. Omar
President
ZNCCI
[email protected]
Ms. Mwandawa K. Moh’d
D. Chairperson
ANGOZA
[email protected]
Eng. Leopold Lwajabe
Engineer
EDF-PSU DNAO
[email protected]
In addition, possible SC invitees can be: General Manager – ZECO; Director of DoEM; Commissioner of External
Finance; Commissioner of Planning Commission; Project Manager RE & EE; Secretary; EU delegation.
List of the Technical Committee Members
Members of the Technical Committee
Mrs. Sabra I. Machano.
Ministry of Finance
Mr. Maulid Shiraz
ZECO
Mr. Sayyidomar Idarous
Dept. of Energy and Minerals
Mr. Salim H. Bakar
Dept. of Environment
Mr. Miza S. Khamis
Department of Environment
Mr. Mohamed Habib
Department of Land
Mrs. Maryam Dhahir
Planning Commission
Annexes
Page 62 of 67
Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Annex G: Minutes and List of Participants of Zanzibar Energy Development Partners Meeting,
13th June 2016
MINUTES
Zanzibar Energy Development Partners Meeting, 13th June 2016 (Lot 2 Project Kick-off Meeting)
Technical Committee of the Zanzibar Renewable Energies and Energy Efficiency Programme
Date:
Venue:
Participants:
Monday 13th June 2016 0900 - 1600
Ministry of Finance and Planning Conference Room
List of participants is enclosed
Time
09:15
Activity
Opening
09:30
Presentation of
DoEM
10:15
Presentation of
EU RE/EE
programme
Tareq, GOPA
Description
Introductory remarks by the Director of Department of Energy and Minerals Mr.
Mohammed A. Mohammed, representative of the DPs (EU delegate) Mr. MELIN Mikael
Eng Sayyidomar provided an overview of the current programmes in the DoEM. Main
points
1. UNDP programme to strengthen environment and climate change governance.
DoEM share in b Budget $ 316,000 over 2012 – 2016. Ending. Phase 2 not yet
clear.
2. SIDA; Energy Sector Support Programme, phase 2, 2016 – 2019. DoEM share in
budget $450,000, rest programme for ZECO
3. Norwegian Oil for Development (OfD) support to upstream petroleum sector,
budget NOK 5m ($0.5m)
4. World Bank; TA and Capacity building support for Z’bar energy sector $10m, in
planning stage
5. EU RE and EE program, € 3m, divided in bridging phase 2013-15 and phase 2
(ongoing now). This includes the installation of mast of measuring wind and solar
radiation in 3 sites in Unguja and 2 sites in Pemba. There have been many delays
in the installation and official handing over of the equipment by the contractor
AGMIN. Currently only 3 out 5 masts are not working and this situation is not
resolved yet.
The rest of the EU support is divided in Lot 1 (GOPA consultants to prepare full
feasibility studies for wind and solar) and Lot 2 (MWH for TA on regulatory
framework). Some of the issues were elaborated further in the following
presentations.
The consultant presented the progress of the programme which includes
6. Wind and solar measurements. This part of the work in behind schedule as the
wind masts supplied by AGMIN were delayed for many months and also 3 out of 5
masts are not supplying data due to technical problems and vandalism. These
problems are current being corrected
7. There are still many issues with data collection as regards of mixing data from
different masts, shadow effect of masts, limited periods covered so far etc. The
quality of the data will affect the feasibility studies. There are discussions on a 6
months’ extension of the work to be able to collect the required wind and solar
data
8. The consultant provided a first results from the Makunduchi mast which shows an
average of just over 6 mtr/sec and a fairly constant south east direction. However,
these data need further verification over the rest of the measuring period.
9. For solar PV (8 MW park) the initial financial calculations show production costs of
Euro 6.7 – 6.95 cents/kWh but this might very well change when more data
become available.
10. The EIA has started and the scoping report is ready. The main issues raised so far
are possible birds damage. This is of special concern in Pemba (Michemweni area)
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Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
11:15
MWH
Niels Juhl/
Valentina
11:30
Multi Consult
Andrew Yager
12:00
Multi Consult
Andrew Yager
12:15
Barefoot
College
Lucie Mauron
with its bat population. The actual EIA will start once payment to ZEMA has been
done.
11. Logistics survey is underway to provide information on the transport and
assembling options of the large wind turbines. The focus of the survey is on wind
turbines of 225 – 275 kW capacity which can be established without large cranes.
The survey will be delivered in July 2016
12. Training plan has been prepared and implementation will start within coming
months. Will include financial and technical aspects, maintenance etc. The final
list of trainees has to be agreed.
13. The study will also look at the costs of Solar Home Systems for consumers which
are too far from the ZECO grid.
The MWH consultants presented an update of their work which is still in the initial
stages. This lot 2 of the EU project is planned for 24 months with a budget of € 1.1 m).
The focus is on preparing the regulatory framework for the production of renewable
energy sources such as wind and solar. The consultants will build upon the
information and reports from GOPA consultants under lot 1.
The team leader arrived only in the weekend preceding this EDPG meeting. The second
long term expert (financial expert) is expected within two weeks.
The inception report of this part of the EU project is due in one month.
The team leader of Multi Consult reported on the SIDA supported programme
“Zanzibar Energy Sector Support Programme, phase 2 or consolidation phase. Few
points from the presentation and discussions;
1. Duration of project 3 year and total budget of $ 5,5 mainly for ZECO (TA to the
reform process and about 50% for new meters and equipment) and DoEM ($
450,000)
2. Project manager just arrived in Z’bar.
3. Inception phase of 4 months
4. This assignment will include a gender strategy focusing on the women in the ZECO
work force
5. There are areas with possible overlap/duplication with EU Lot 2 such as support to
DoEM, energy efficiency and awareness activities. The meeting called for close
consultation during inception and implementation
Multiconsult also implements the Norwegian funded programme in ZECO; Capacity
building on maintenance. Few points from the presentation:
1. Norwegian support to Zanzibar utility company goes back as far as the 80s and has
been there on and off ever since. This includes grid extension and also the
provision of the submarine cable from Tanga to Pemba.
2. This current project period covers 2014 – 18 and total budget of $ 10m,
3. Project prepared he Electrification masterplan in 2014
4. The ZECO has been mapped in a GIS system
5. A feasibility study has been prepared for a 5 MW solar PV farm in north eastern
Zanzibar and been circulated. This could be further adjusted once GOPA data
become available
Barefoot College is a NGO originating from INDIA where it was established in 1972. It
focusses on training of rural illiterate or semi-illiterate women between 35 and 50
years old. This includes a series of life enhancing subjects including small solar power.
In Zanzibar Barefoot has
1. Opened a college in Zanzibar in Aug 2015 (inaugurated by President Shein)
2. Operating under the Ministry of Empowerment, Social Welfare, Women, Youth
and Children
3. Budget 2014/15 Tsh 400 m, plus $ 400,000 through fund raising from USA sources.
4. Women are trained over period of 5 months and main focus is solar power
5. Objective is to train 20 Barefoot solar engineers per year, 1000 households
equipped with solar systems
6. Systems installed and maintained by the women trained by Barefoot
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Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
7.
Village solar committee to collect contributions from each household to ensure
long term maintenance (for instance replacement of batteries after 5 years
8. In the discussion a point was raised on disposal of used batteries. Barefoot is
collecting these batteries and working on an environmental friendly disposal
system
The participants discussed the need for a further coordination mechanisms and joint
actions. Some of the point raised included:
1. Meeting focused on electricity sector but little or no attention is given to biomass
and oil products which are the other important sources of energy mainly for
cooking and transport needs
2. Coordination is needed to ensure best use of resources and avoid overlap and
duplication, especially now there are a number of DPs active and possible the
World Bank coming in as well
3. For example, both EU and Norwegian supported projects plan interventions to
increase awareness among energy users on efficient use of energy.
4. The Government of Zanzibar needs to take leadership/ initiative in planning and
organizing of regular EDPG meetings
5. There was some debate on the roles of the Ministry responsible for Energy and
Ministry of Finance and Planning in the coordination of DP meetings. The meeting
agreed that the MoF&P needs to play an active role in this aspect.
6. It was proposed to have quarterly meetings in the future
7. In conclusion MoF&P agreed to call for a meeting with the Ministry of Lands,
Energy, Water and Environment so as to analyze the whole support which goes to
the energy sector in order to avoid duplication of activities.
The meeting was closed by the acting director of the DoEM
12:45
Discussion
1315
Closure of the
meeting
Break at Serena Hotel with lunch for the guests
Visit to ZECO
A number of the delegates took the opportunity to visit the ZECO main operation
Mtoni control
center in Mtoni. They were shown the facilities that were constructed with support of
centre
the MCC as part of the installation of the new submarine cable. The power distribution
center monitors and controls the supply of electricity from the mainland the
distribution through various feeders to the different points in Unguja island.
In addition, there is a sub control center established with support of JICA
Return to Stone town
1330
1500
1630
LIST OF PARTICIPANTS
Zanzibar Renewable Energy Programme Meeting (Lot 2 Project kick-off Meeting)
13th of June 2016
Name
Organisation/function
Email address
Phone number
Marijn Noordam
Emb of Netherlands
[email protected]
0793 030 044
Katrine Vestbostad
Emb of Norway
[email protected]
0782 777 010
Jorgen Eriksson
Emb of Sweden
[email protected]
0754 000 241
Stephen
Mwakifwamba
Francis Songela
Emb of Sweden
[email protected]
0784000239
EU delegation
[email protected]@gov.se
0783 492 601
Lars Dahl
EU Delegation
[email protected]
+255 22 211 7473/6
Mikael Melin
EU Delegation
[email protected]
+255 22 211 7473/6
Rosina Apolei
JICA
[email protected]
+255 789 854 615
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Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Name
Organisation/function
Email address
Phone number
Zak Rich
World Bank/MoF&P
[email protected]
+255 774 169 763
Lucie Mauron
Barefoot college
[email protected]
+41 795451436
Gerard Hendriksen
Consultant
[email protected]
0779 894 009
Francois Carmen
EU Bridging phase TA
[email protected]
0773 356 358
TareqZahad
GOPA-Intec
[email protected]
+49 176 848 08187
Niels Juhl Thomson
MWH
[email protected]
Valentina Villoria
MWH, project manager
[email protected]
Halima Wagao
MoF&P
[email protected]
0776 942 258
Khatib Moh’d
MoF&P
[email protected]
0777 412 369
Grace Aloyce
ONAO-MoF&P
[email protected]
0759 032 876
Ibrahim Muhazi
ONAO-MoF&P
[email protected]
0767 181 016
Miza S Khamis
Dep of Forestry
[email protected]
0777 332 223
Mohamed A M
DoEM
[email protected]
+255778629640
Omar S Muhamed
DoEM
[email protected]
0777 463 588
Sayyidomar A.
Idarous
Abdalla Haji Steni
DoEM
[email protected]
0777 144 756
ZECO
[email protected]
0777 417 904
HafidSilima
ZECO
[email protected]
0777 435 005
Haji Amran
ZECO
[email protected]
0777 878 598
Haji Silima
ZECO
[email protected]
0773 234 000
Maulid Shirz Hasan
ZECO
[email protected]
+255 774 356 247
Said H Bakar
ZECO
[email protected]
0777 468 002
Khamis Amada
Fakih
Zainab A Ayoub
ZURA
[email protected]
0773 570 611
ZURA
[email protected]
0773 923 395
Andrew Yager
Multi Consult
(SIDA/Norad pro-ject
Team Leader)
[email protected]
Annexes
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Technical Assistance for the implementation of renewable energies and energy efficiency projects, including
regulatory reforms (Lot 2)
Inception Report
Annex H: List of Stakeholders. Meetings held during the Inception Phase
List of Stakeholders identified
>
Ministry of Finance & Planning.
>
Ministry of Land, Housing, Water and Energy and its departments of Energy of Environment.
>
ZECO.
>
SIDA Programme.
>
Norad Programme.
>
Donors and development partners.
>
TANESCO. Lot 1.
>
Public institutions.
>
Potential investors and developers for RE and EE projects.
>
Opinion leaders.
>
Banks and Financial institutions.
>
Zanzibar Revenue Board.
>
Customers.
>
Suppliers.
>
NGOs – Barefoot College and REZA.
>
Communities in general.
List of Stakeholders Meetings held during Inception Period
>
Ministry of Land, Water, Energy, and Environment.
>
Department of Energy.
>
Department of Environment.
>
Ministry of Finance and Planning.
>
Ministry of Finance and Planning – the Public Private Partnership Unit.
>
ZURA.
>
ZECO Planning Department.
>
Meeting with Technical Committee for the EU REEE Programme.
>
Meeting with Ministry of Infrastructure, Transportation, and Communication.
Annexes
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