AFRICAN DEVELOPMENT BANK UGANDA DECENTRALIZED RENEWABLES DEVELOPMENT PROGRAM

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1 AFRICAN DEVELOPMENT BANK Public Disclosure Authorized Public Disclosure Authorized UGANDA DECENTRALIZED RENEWABLES DEVELOPMENT PROGRAM RDGE DEPARTMENT March 2017

2 TABLE OF CONTENTS Page 1. INTRODUCTION BACKGROUND INFORMATION PROJECT PREPARATION GRANT OBJECTIVES RATIONALE FOR THE USE OF SREP RESOURCES DESCRIPTION OF THE OPERATION DESCRIPTION OF PREPARATORY ACTIVITIES ESTIMATED COST OF PREPARATORY ACTIVITIES ESTIMATED COST OF OPERATION FINANCING PLAN MODE OF PROCUREMENT OF SERVICES AND GOODS PROCUREMENT OF GOODS PROCUREMENT OF SERVICES REVIEW PROCEDURE PROCUREMENT PLAN GENERAL PROCUREMENT NOTICE AND REVIEW PROCEDURE IMPLEMENTATION SCHEDULE PROJECT PREPARATION TIMETABLE DRAFT OF CONSULTING AND PROCUREMENT SCHEDULE ORGANIZATION AND MANAGEMENT OF BANK ASSISTANCE FINANCIAL MANAGEMENT DISBURSEMENT METHOD AND APPLICATIONS OF AMOUNT DISBURSED AUDIT AND REPORTS LEGAL FRAMEWORK LEGAL INSTRUMENT CONDITIONS ASSOCIATED WITH BANK S INTERVENTION CONCLUSION AND RECOMMENDATIONS CONCLUSION RECOMMENDATIONS... 9 LIST OF ANNEXES ANNEX I : SREP SC DECISION FOR UGANDA ANNEX II : SCHEDULE OF ACTIVITIES ANNEX III : PROCUREMENT GOODS AND CONSULTING SERVICES SCHEDULES

3 Acronyms and Abbreviations ADF AfDB CIF DERD GHG GoU MDB MEMD MIC MoFPED MoJCA PPG PSC REA SCF SREP USD African Development Fund African Development Bank Climate Investment Fund Directorate of Energy Resources Development Greenhouse Gases Government of Uganda Multilateral Development Bank Ministry of Energy and Mineral Resources Development Middle Income Countries Ministry of Finance, Planning and Economic Development Ministry of Justice and Constitutional Affairs Project Preparation Grant Project Steering Committee Rural Electrification Agency Strategic Climate Fund Scaling-Up Renewable Energy Program United States Dollar

4 I. INTRODUCTION 1.1 Background Information The Scaling-up Renewable Energy Program (SREP) Investment Plan for Uganda 1 was endorsed in Washington D.C. on November 11, 2015 and an envelope of USD 2.3 million as a preparation grant for the project was approved the same day (see final decision text Annex I). The Project Preparation Grant (PPG) will cover the expenses to develop an off-grid master plan for the electrification of islands across Lake Victoria and to conduct the feasibility studies of the most viable five (5) islands (Component 1). The PPG will also support the expenses to install solar PV rooftop systems on government buildings around Kampala, Jinja, Mbale and Entebbe, and develop regulations, legislation, standards, and strategy and investment guidelines (Component 2) In the internal approval process at the African Development Bank (AfDB), the size of this PPG falls in the category where it requires the approval by the Board of Directors on a lapse-of-timebasis according to paragraph 8.5 of the Climate Investment Funds Guidelines for the Administration and Utilization of Preparation Grants (ADB/BD/WP/2011/179/Approved). The Bank has previously approved other smaller SREP PPGs in line with the aforementioned guidelines by simply concluding an internal memo and having the respective Government s authority signing it. Since it is the first time the Board of Directors will be called to review and approve such a PPG and, after discussions with PGCL (former GECL), it was agreed that the way forward would be for the Bank to use the MIC grant template in preparing this document. The aim of this Board Memorandum is therefore to present the background associated with this PPG, provide further information on the implementation modalities of the grant, and to request the Board of Directors to approve the SREP funding as per the Strategic Climate Finance (SCF) Financial Procedures Agreement signed between AfDB and the Climate Investment Funds (CIF) Trustee in As per the SREP rules, there is no need to monitor and evaluate indicators and results in connection with the implementation of the PPG Uganda is a landlocked country located in Eastern Africa with a total area of 241,550 square kilometers and a total population of 34.9 million, of which 70% live in rural areas. The overall household access to electricity is about 17% at the national level and roughly 7% in rural areas 1. Limited access and the high cost of electricity services has affected delivery of social services and constrained the development of industrial and commercial enterprises Uganda needs to develop more renewable energy to expanded access to energy, because Uganda still suffers from power shortages and less than 16% of the population has access to energy. In addition, to meet the rapidly growing demand of estimated 8-9% p.a. until 2021, the power generation capacity has to increase by 9% p.a The development of renewable energy is in line with the Bank s Ten-Year Strategy (TYS) as it contributes to environmentally sustainable growth. The availability of affordable, reliable, and sustainable energy will initiate small business development and create jobs for Ugandan people (inclusive growth); provide access to clean water, increase food security, and the sustainable exploitation of natural resources, which will lead to a green development pathway that boosts the well-being of Ugandans (green growth). This project is also consistent with two of the Bank s High 5 priorities: it provides electricity (Priority No.1), and increases well-being through job creation (Priority No.5). Increased access to power will spur agriculture, education and health sectors and 1 1

5 contribute to fighting poverty, reducing inequality, and empowering women and girls; which are all in line with the Sustainable Development Goals and the Bank s New Deal on Energy for Africa The Ssese islands in Lake Victoria in Uganda are an archipelago of eighty-four (84) islands, of which 64 are inhabited. The islands are in the Kalangala District in southern Central Uganda, which does not have any territory on mainland Uganda. The population is estimated to be around , although gathering census data from the transient inhabitants can be difficult Economy: Most of the population and commercial activities in the islands are focused in small, clustered fishing communities along the shores. The district is only accessible by ferry, leaving either from Entebbe or Masaka for the main island, once a day. No bridges exist between islands. Kalangala District has only one operating power plant; the Bukuzindu Hybrid Solar and Thermal Power Station with 1.6 MW installed capacity and another 1.5 MW power plant fueled with palm oil that will be operational soon. Daytime power consumption in commercial and public buildings has a similar profile to the solar radiation curve, which is almost steady throughout the year, as Uganda lies along the Equator. With an average daily radiation of 5.1 kw/day, Solar PV systems can also be employed to supply power to daytime loads to be used in these institutions and will result in savings on power bills Access to electricity will impact Sesse citizens in multiple ways. The electricity will boost the fishing, tourism, and entertainment industries, and easy contact with the mainland by frequent ferry transportation or any other mean of transport will boost service delivery and encourage youth to start small businesses such as hair salons, laundromats, welding, etc. Currently the Kalangala fish is exported to the Uganda mainland and in the region (i.e. Rwanda) where it is refrigerated then transported hundreds of kilometres by road. Once the islands have electricity there will be organized and controlled fishing activity and fish will be processed before it gets exported. Tourism and entertainment activities are expected to grow, including hotels, restaurants, bars, canteens, golf courses, camping sites and the provision of short-stay accommodation. The agriculture industry, such as the palm oil plantations, will also benefit from the electricity to process and pack oil for export. The volume of trade between Kalangala District and the mainland will grow; which means more income to islanders involved in business Electricity in Ssese islands will improve the education and health sectors, as well as many other social programs beneficial for children and women, the most vulnerable group. Electricity access is consistent with the government policy of promoting entrepreneurship amongst the youth, and creating jobs and wealth for the islanders. Islands may also be transformed into natural parks to reinforce tourism activities, and related services. 1.2 Project Preparation Grant Objectives Strategic and specific objectives: The Bank will assist the Government of Uganda (GoU) to implement this PPG which has the objective to (i) develop the proposed master plan that in turn will serve to prioritize these investments and be the basis for the electrification of the remaining islands in an orderly and sequential manner, (ii) develop the grid tied rooftop solar PV systems; hence introducing net metering as a pilot experience. This will lay the foundation for net metering to be scaled-up by private users such as businesses and households The PPG objectives are to support providing modern energy to Ssese islanders and introduce the Solar Photovoltaic (PV) net-metering rooftop industry into government buildings around Kampala, Jinja, Mbale and Entebbe. The project will spur the diversification of economic growth for Ssese islanders. Electricity on Ssese islands will provide the opportunity to sustainably exploit the resources present in Lake Victoria and new and innovative ideas among islanders will be used to 2

6 create income-generating activities. The net-metering rooftop solar PV system could create a new solar panel industry (manufacturing or assembling,) and jobs; and reduce the greenhouse gases. Specifically, the project will (i) light and power Ssese islands, promote tourism and entertainment industries, and the food processing industry; (ii) it will value the solar energy resources via netmetering rooftop solar PV. From this, a solar PV manufacturing and/or assembling industry will emerge, creating jobs, diversifying income for Uganda citizens and improving the lives of Ugandan people. 1.3 Rationale for the use of SREP Resources Uganda is committed to universal access by 2030 as outlined in the SE4All Action Agenda. Although it is the expectation of the GoU that the majority of rural households will be served by the national electricity grid by then, it is envisaged that at least 60,500 connections in remote rural locations will be supplied from isolated mini-grids This project has the potential to be highly transformational as it will support the kick-start of serious investments in decentralized power systems in isolated areas that have not benefited much over the past decades. In addition, this project will considerably contribute to an increase in access to energy services from renewable sources Net-metered solar PV systems provide the possibility for businesses to self-generate and to sell any excess power back to the grid under a power exchange system that will be developed as part of this sub-component. This will lead to an improved energy mix for Uganda and decrease the reliance on hydro power. At the same time, SREP will be instrumental in opening a new market line for solar products in Uganda which may over time contribute to a considerable increase in solar electricity generation in particular and economic growth in general Both interventions will in the long-run lead to an increase in the capacity generated from renewable sources, increase access to modern energy services and products and partially reduce the reliance on hydro power plants on less power intensive activities The SREP financing will be instrumental in opening a new market line for small-scale decentralized products which will increase electricity generation from renewable sources. SREP financing will be key to addressing a lack of technical capacity and legal and regulatory frameworks. As SREP finances the deployment of demonstration units, building technical capacity among key institutions and reducing barriers to entry, a significant scale-up could be expected in the future. II. DESCRIPTION OF THE OPERATION 2.1 Description of preparatory activities Components and main activities: the project preparation grant will serve to: (i) (ii) Development of an Off-grid Electrification Master Plan for Ssese Islands in Lake Victoria. The Master Plan will accordingly be used by Rural Electrification Agency (REA) to solicit for construction funds; Based on item (i) above, detailed full feasibility studies of the most viable five (5) islands will be undertaken; (iii) Technical Assistance (i.e. Solar PV Test Equipment for Solar Mapping & Testing). 3

7 Component 1: Decentralized mini-grids: The SREP funds will pilot and demonstrate the economic, social, and environmental viability of low carbon emission mini-grids in five islands of Kalangala District. This demonstration, coupled with a good energy policy, will attract private investments to provide electricity to the remaining part of the district in the mainland. Sub-component 1.1: Develop an off-grid master plan for the electrification of islands across Lake Victoria to determine priority investments. Given the limitation on the availability of funding available for the mini-grids sub-component, the proposed master plan will serve to prioritize these investments and be the basis for the electrification of the remaining islands in an orderly and sequential manner. A consultative process will be undertaken to ensure buy-in from those communities. Sub-component 1.2: Based on sub component (1.1) above, detailed full feasibility studies of the most viable five (5) islands will be undertaken. This will ultimately serve to design and construct at-least five mini-grids in different islands where impact can be maximized. Component 2: Decentralized Urban Small-Scale Solar PV: The SREP funds will pilot and demonstrate the use of net-metering system and the grid tied rooftop solar PV systems will introduce net metering as a pilot experience to supply homes and supply the surplus power to the grid. This pilot project will be implemented in urban areas targeting public buildings currently connected to the national grid, and will have significant demonstration impact. Sub-component 2.1: to install 10x25KW solar PV rooftop systems in government buildings around Kampala, Jinja, Mbale and Entebbe to test this technology before a scale-up for private sector. The short-term objective of this sub-component is to pilot and demonstrate how solar PV can be used to power homes, and administration buildings. In the long term, the private sector will scale up to the country level, reducing the grid-connected energy consumption, and saving GHGs. Solar PV will increase the installed capacity for solar energy in the energy mix of the country, lower the cost of solar energy systems, release valuable electricity to other more productive uses and initiate transformational change in the country by changing the way buildings interact with the power grid. Sub-component 2.2: Technical Assistance (TA) to develop regulations, legislation, standards, and strategy and investment guidelines. The objective is to put in place appropriate policies, laws, regulation, and standards for solar grid-connected rooftop systems. This will lay the foundation for net metering to be scaled-up by private users such as businesses and households. III. ESTIMATED COST OF PREPARATORY ACTIVITIES 3.1 Estimated Cost of Operation The total cost of preparation grant, net of taxes and customs duties, is estimated at USD 2.3 million. A summary of the estimated operation cost by component and expenditure category is presented below The table below provides an estimation of the total costs associated with these activities as well as the sources of financing. 4

8 Table 1: Summary of Estimated Operation Cost by Component (in USD million) GoU SREP Total Component 1 Decentralized mini-grids Sub component 1.1 Development of Off-grid Electrification Master Plan Sub-component 1.2 Feasibility Studies of 5 Islands Component 2 Decentralized Urban Small- - Scale Solar PV Sub-Component 2.1 Solar PV roof top system Sub-Component 2.2 Technical Assistance (TA) External Audit Sub-Total Table 2: Summary of Estimated Cost by Expenditure (in USD million) CATEGORY OF EXPENDITURE USD 1. GOODS: Solar PV Test Equipment for Solar Mapping & Testing SERVICES: Off-grid Electrification Master Plan 1.30 Feasibility Studies of Five Islands 0.95 TA : Develop regulations, legislation, standards, and strategy and investment guidelines 0.10 External Audit 0.05 TOTAL Financing plan This operation will be financed by a SREP PPG of USD 2.3 million. The SREP Sub- Committee (SC) has endorsed the Ugandan Investment Plan which identified 3 renewable energy projects for an envelope of SREP USD 50 million at the November 11 th, 2015 meeting in Washington D.C. The Decision (in Annex I) states that the projects need to be further developed. In that context, the SREP SC approved USD 2.3 million as a grant through the administration of the African Development Bank Group to prepare the Decentralized Renewables Development Program. The GoU s contribution is estimated at USD 0.5 million or about 18% of the total cost. The contribution will cover management expenses, including logistics and the provision of staff and premises. Table 3: Operation Financing Plan Source of Financing USD Million % AfDB/SREP GoU Total

9 Table 4: Breakdown of Financing by Expenditure Category (USD million) CATEGORY OF EXPENDITURE AfDB/SREP GoU Total 1. GOODS: Solar PV Test Equipment for Solar Mapping & Testing SERVICES: Off-grid Electrification Master Plan Feasibility Studies of Five Islands Develop regulations, legislation, standards, and strategy and investment guidelines External Audit TOTAL IV. MODE OF PROCUREMENT OF SERVICES AND GOODS The Grant Recipient, will be the Government of Uganda. The implementing agency for the proposed PPG implementation will be Rural Electrification Agency (REA) under the Ministry of Energy and Mineral Resources Development (MEMD). Hence, the responsibility for the procurement of goods and services associated with the PPG will remain with the implementing agency with government oversight 4.1 Procurement of Goods Procurement of Goods necessary for the execution of the Project shall be carried out in accordance with the Bank s Procurement Policy for Bank Group Funded Operations dated October 2015, as amended from time to time, and as further set out below: Procurement of goods for the Project estimated to cost USD 400,000 in aggregate shall be carried under International Competitive Bidding procedures and using the Bank s Standard or Model Solicitation Documents, with notifications at national level. Goods procured under this method would include Solar PV Test and Mapping Equipment. 4.2 Procurement of Services Procurement of Services necessary for the execution of the Project shall be carried out in accordance with the Bank s Procurement Policy for Bank Group Funded Operations dated October 2015 as amended from time to time, and as further set out below: (i) (ii) (iii) (iv) Selection of consultants for consulting services for Development of an Off-grid Master Plan for Islands on Lake Victoria and feasibility studies for five (5) solar PV mini-grids shall be undertaken through an international shortlist under Quality and Costs Based Selection method. Development of regulations, legislation, standards, and strategy and investment guidelines may be undertaken by a firm under Quality and Cost Based Selection Method. Contracts for Individual Consultants necessary for the project shall be undertaken using an Individual Consultants Selection process outlined in the Bank s Procurement Policy. Audit of the grant if not undertaken by Office of the Auditor General shall be undertaken by an external audit firm selected through Least Cost Selection method. 6

10 4.3 Review Procedure Except as the Bank shall otherwise determine by notice to the Recipient, all contracts for goods or services shall be subject to prior review by the Bank 4.4 Procurement Plan The Recipient shall prepare the Procurement Plan for the Grant. The Procurement Plan shall set forth the different procurement methods or consultant selection methods, estimated costs, prior review requirements and timeframe as agreed between the Recipient and the Bank. Any proposed revision of the Procurement Plan shall be submitted to the Bank for its prior approval. 4.5 General Procurement Notice and Review Procedure A General Procurement Notice prepared by mutual agreement will be published on MEMD and on the Bank s websites after the approval of the proposed PPG. The following documents will be submitted to the Bank for review and approval prior to publication: call for expression of interest, requests for proposals, shortlists, report on the evaluation of consultants technical proposals, and draft consultants contracts. V. IMPLEMENTATION SCHEDULE 5.1 Project Preparation Timetable It is expected that the studies (i.e both Master Plan & Full Feasibility Studies) and the purchase of the Solar PV Test & Mapping Equipment will take a period of fifteen (15) months to be implemented including the procurement phase. Deliverables Deadline Off-grid Development Master Plan for Islands on Lake Victoria and April 2018 Full feasibility studies for five solar PV mini-grids Procurement of consultancy services August 2017 Purchase of Solar PV Equipment for Solar Mapping and Testing April Draft of consulting and Procurement Schedule The draft of procurement plan is presented in Annex III. 5.3 Organization and Management of Bank Assistance In executing the PPG, the Procurement and Fiduciary function will be ensured by REA. The funds will be channelled through African Development Bank (AfDB). Procurement of Consultancy Services and Goods will be done in accordance with the AfDB s procurement rules. VI. FINANCIAL MANAGEMENT 6.1 Disbursement method and applications of amount disbursed The implementing agency through the Grant Recipient will request the SCF Trust Fund through the Bank. The Bank will provide from the CIF resources, the SREP Grant to the Recipient in 7

11 accordance with the Grant Agreement and the General Conditions. Two disbursement methods can apply: Special Account (SA) and/or Direct Payment methods Disbursement. Resources of the PPG will be disbursed according to the procedures set forth in the Bank s Disbursement Handbook. Disbursement may be suspended if amounts are not being used for the agreed purpose or the Recipient is in breach of terms and conditions of the financing agreement or any Bank rules. The disbursement of funds will be conditional upon the entry in force of the Grant Agreement and the Special Account Method will be used. The Recipient shall ensure that all amounts deposited in the Special Account are accounted for and their use reported prior to the deadline for the last disbursement. After this date, the Recipient must immediately refund to the Bank any advances still unaccounted for or remaining in the special account. The account will be managed by the fiduciary team Currency of Disbursements: All disbursements made by the Bank to the Recipient shall be denominated in US Dollars Deadline for Final Disbursement: The deadline for final disbursement shall be 30 June 2018, or such later date as shall be agreed upon in writing between the Recipient and the Bank Application of Disbursements: Amounts disbursed on account of the Grant shall be applied by the Recipient solely for the purposes for which they were disbursed. 6.2 Audit and Reports Reports. The current financial management systems of the Recipient will be used to manage the proceeds of the PPG. The Accounting Officer of REA will be responsible for proper maintenance of accounting records, timely provision of financial reports and ensuring proper accountability of public funds in accordance with International Public Sector Accounting Standards and applicable national policies and procedures. The financial reports will be subject to both internal and external audits Audit: The utilization of the PPG proceeds will be conducted by the Recipient in order to ensure that all expenditures and supporting documents review is performed and certified by an external auditor acceptable to the Bank. The Executing Agency will be responsible for submission of complete audit reports (including management letter and management responses annually and at the end of the PPG) to the Bank within six months after the end of each fiscal period of the Recipient. VII. LEGAL FRAMEWORK 7.1 Legal Instrument The legal instrument to be used for financing of the project is an AfDB-SCF Trust Fund grant to the Republic of Uganda. 7.2 Conditions Associated with Bank s Intervention Conditions Precedent to Entry into Force: The Grant Agreement shall enter into force on the date of signature by the Recipient and by the Bank Conditions precedent to first disbursement: The obligation of the Bank to make the first disbursement of the Grant shall be conditional upon the entry into force of the Grant Agreement, and 8

12 the submission of evidence by the Recipient, satisfactory in form and substance to the Bank, in fulfilment of the following condition: The opening of a USD designated special account at a bank acceptable to the Bank for receipt of the proceeds of the Grant Other Conditions: The Recipient shall submit quarterly progress reports on the status of implementation of the Project, in a form acceptable to the Bank. VIII. CONCLUSION AND RECOMMENDATIONS 8.1 Conclusion The conduct of the aforementioned project will help to develop the Decentralized Renewables Development Program in Uganda and, in the long-run, contribute to strengthen the share of renewable energy in national electricity mix, create wealth and jobs while avoiding GHG; and improve the wellbeing of Ssese islanders especially the most vulnerable group children and women by getting education and health products of quality. It will also help to provide the beneficiary with all elements needed to design and size the off-grid program as well as test the net metering system. It will also help to remove the barriers to private investors in the renewable energy sector, a strategy that will help support young entrepreneurs while providing electricity to even more isolated communities in the country. Lastly, the project will contribute to achieve the Uganda 2040 vision. 8.2 Recommendations It is recommended that the Board of Directors approve the proposal to implement a SREP project preparation grant amounting to USD 2.3 million to the Republic of Uganda as per paragraph 8.5 of the Bank s Climate Investment Fund Guidelines for the Administration and Utilization of Preparation Grants to finance the studies to prepare the Decentralized Renewables Development Program under the conditions set forth in this report. 9

13 ANNEX I: SREP SUB-COMMITTEE DECISION FOR UGANDA 1. The SREP Sub-Committee, having reviewed document SREP/SC.14/8, SREP Investment Plan for Uganda, endorses the investment plan as a basis for the further development of the projects and programs foreseen in the plan and takes note of the request for USD 50 million in SREP funding. 2. The Sub-Committee recalls its decision on the distribution of grant and non-grant resources to the SREP new pilot countries and reaffirms that the amount of grant funding for the implementation of the investment plan should not exceed USD 22.5 million. 3. The Sub-Committee requests the Government of Uganda, in the further development of the proposed projects and programs, to take into account comments made at the meeting and any additional written comments submitted by Sub-Committee members by November 27, 2015, and to respond in writing to questions raised during the meeting and in subsequent written comments. The Sub-Committee also requests the Government of Uganda to provide an update on the progress of the development of the geothermal component of the investment plan in a year s time for a possible review of the component. 4. The Sub-Committee a) reaffirms that all allocation amounts are indicative for planning purposes and that approval of funding will be on the basis of high-quality investment plans and projects, subject to the availability of funds; b) notes that in case projects under the investment plan cannot be funded with SREP resources, the development of high-quality renewable energy projects could be a basis to seek funding from other climate finance sources, such as the Green Climate Fund; c) approves USD 2.3 million as preparation grant for the project entitled, Decentralized Renewables Development Program (AfDB); d) approves USD million as preparation grant for the project entitled, Wind Resource Map and Pilot-Wind Power Development Project (AfDB); e) takes note of the estimated budget of USD 420,000 for MDB project preparation and supervision services for the project entitled, Uganda: 130 MW Geothermal Development Program (AfDB), and approves USD 210,000 as a first tranche of funding for such services; f) takes note of the estimated budget of USD 150,000 for MDB project preparation and supervision services for the project entitled, Decentralized Renewables Development Program (AfDB), and approves USD 75,000 as a first tranche of funding for such services; and g) takes note of the estimated budget of USD 150,000 for MDB project preparation and supervision services for the project entitled, Wind Resource Map and Pilot-Wind Power Development Program (AfDB), and approves USD 75,000 as a first tranche of funding for such services. I

14 ANNEX II: SCHEDULE OF ACTIVITIES Activity Agency Responsible Deadline - Preparation of the Present memorandum - CLSD for translation - SEGL processing and editing - PPG Approval AfDB/CIF Secretariat AfDB/CLSD AfDB/SEGL AfDB January 2017 January 2017 February 2017 February EOI for the recruitment of a consultant to develop an Off-grid Development Master Plan for Islands on Lake Victoria and Full feasibility studies for five (5)solar PV mini-grids - Contract start for develop an Off-grid Development Master Plan for Islands on Lake Victoria and Full feasibility studies for five (5)solar PV mini-grids - Submission of report on the Development Master Plan for Islands on Lake Victoria and Full feasibility studies for five (5)solar PV mini-grids - EOI for to Develop regulations, legislation, standards, strategy and investment guidelines - Contract start for the develop regulations, legislation, standards, strategy and investment guidelines - Submission of report on the Development of regulations, legislation, standards, strategy and investment guidelines - SPN publication for the Purchase and Installation of 10x25kW solar PV Equipment for Solar Mapping and Testing - Contract start for the Purchase and Installation of 10x25kW solar PV Equipment for Solar Mapping and Testing - Reception of the installed rooftop solar PV equipment - EOI for External Audit - Contract start for External Audit - Submission of Audit report - Completion of Study Project March 2017 August 2017 August 2018 March 2017 August 2017 November 2017 July 2017 November 2017 April 2018 November 2017 April June June 2018 II

15 Procurement Packages Methods and Time Schedule for 18 months ANNEX III: PROCUREMENT GOODS AND CONSULTING SERVICES SCHEDULES. Package description Purchase and Installation of 10x25kW solar PV Equipment for Solar Mapping and Testing Lot Number Lot Description Estimated Amount in USD (m) Procurement Method Pre-or Post- Qualification Dom. or Regional Preference Prior or Post Review SPN Publication Date Contract Start Date 2 Lot 1: Kampala and Entebbe 0.4 ICB Post N/A Prior July 2017 November 2017 Lot 2: Jinja and Mbale Total Cost 0.4 Comments Consulting Services: Selection Method and Time schedule for 18 Months Description Selection Method Lump sum or Time-Based Off-grid Development Master Plan for Islands on Lake Victoria Full feasibility studies for five (5)solar PV minigrids Develop regulations, legislation, standards, strategy and investment guidelines Estimated Amount in USD (m) Prior/Post Review EOI Publication Date Contract Start Date QCBS Lump sum 1.30 Prior Review March 2017 August 2017 QCBS Lump sum 0.1 Prior Review March 2017 August 2017 Comments External audit LCS Lump sum 0.05 Prior Review November 2017 May USD/year Individual Consultants IC Time-based 0.95 Prior Review to be determined Total Cost 2.4 III

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