CONTRACTS DEPARTMENT INVITATION FOR EXPRESSION OF INVITATION EOI. For

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1 ENERGY EFFICIENCY SERVICES LIMITED (A JV of PSUs of Ministry of Power, Govt. of India) A-13, IWAI Building, 4 th & 5 th Floors, Sector-1, NOIDA CONTRACTS DEPARTMENT INVITATION FOR EXPRESSION OF INVITATION EOI For Notice (Expression of Interest) for Hiring a Consultant on Competitive Bidding basis to conduct the Independent of the achievement of the Disbursement Linked Indicators necessary for the World Bank to trigger disbursements EOI No..: EESL/06/EOI-ICB-Independent Verification Agent dated EESL invites eligible Consulting Firms ( Consultants ) to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have the required qualifications and relevant experience to perform the Services. The EOIs should be duly supported by a) Submission of brochures/ presentations showcasing experience in Energy & Environment sectors, particularly in a. Development of Verification and Monitoring protocol & framework for due diligence of the EE project. b. Reporting on stakeholder consultations /participant responses and feedback survey on usefulness of stakeholder consultation. c. Development of reporting templates and database management system. d. Market sounding or Industry survey related to consumer behaviour for special category of product, buying behaviour, etc. e. Development of action plans and decision making tools. b) Core business of the firm specifically indicating the business model (Commercial, Not-For-Profit, NGO, etc.) c) Educational and professional qualifications of key personnel d) Experience of key personnel in above areas of expertise e) Technical and managerial organization of the firm (including the number, location, and size of establishments in India) f) Turnover for the last 3 years of the firm submitting the EOI (or of each of the Joint Venture partners, if the EOI is submitted as a Joint Venture), etc.

2 EOI DETAILS Period during which the EOI document will be available on website Closing date and time for receipt of EOI Time and date of opening of EOI Contact Person(s) for EOI related Queries RfP to be addressed to & Place of receipt of EOI EOI through From to (1400 hrs. IST) (upto 1430 hrs. IST) On (at 1500 hrs. IST) Mr. Birendra Kumar Singh, Dy. Manager (Contracts)/ Prashant Kumar Yadav AM (F) Energy Efficiency Services Ltd. Tel.: GM (C&BD) Energy Efficiency Services Limited, A-13,IWAI Building, 4 th & 5 th Floor,Sector-1, NOIDA , U.P. Bidder may also submit their EOI through at following addresses before the last date & time for receipt of EOI: pkyadav@eesl.co.in; barora@eesl.co.in; eproc@eesl.co.in Terms of Reference is Attached

3 TERMS OF REFERENCE For an Independent Verification Agent to verify the Disbursement Linked Indicators (DLIs) of the India Energy Efficiency Scale-Up Program (P162849) I. BACKGROUND Energy efficiency is critical for India to address the multiple challenges facing the power sector, moderate demand growth, and meet its climate change goals. Maintaining India s electricity supply-demand balance while curbing thermal generation, and therefore Greenhouse Gas (GHG) emission growth, will require a combination of investments in networks, additional clean energy generation capacity and energy efficiency (EE). India s energy savings potential is estimated to be percent across all demand segments, representing about INR 740 billion, with industry and residential sectors offering the highest saving potential. However, energy efficiency in India faces financing, awareness, technical and capacity barriers. Energy Efficiency Services Limited (EESL) was established in 2009 as a state-owned ESCO under MOP, a joint venture between four Public Sector Utilities National Thermal Power Corporation Limited (NTPC), Rural Electrification Corporation Limited (REC), Power Finance Corporation Limited (PFC), and Power Grid Corporation of India Limited (PGCIL). EESL s central role started with its implementation of the Unnat Jyoti by Affordable LEDs for All (UJALA) program, which involves Light Emitting Diode (LED) lightbulbs to replace conventional lightbulbs. Currently, the Government envisages 770 lightbulbs in the residential sector will be replaced by LED lightbulbs by March 2019, corresponding to estimated load reduction of 20,000 MW and an annual energy savings of over 100 kwh. Similarly, EESL is implementing the Street Lighting National Program (SLNP), with the Government s goal to replace 13.4 conventional street lights with LEDs. EESL s newer initiatives target previously underserved market segments, such as energy efficient air conditioners, buildings energy efficiency, and agricultural demand side management. Through the India Energy Efficiency Scale-up Program (P162849), the World Bank is supporting EESL in the implementation of its growing program covering priority initiatives with the objective of to scale-up energy savings in residential and public sector and to strengthen EESL s institutional capacity. II. WORLD BANK OPERATION World Bank s Program-For-Results instrument World Bank financing ([$220] ) is provided through the Program-For-Results (PforR) financing instrument (which is accompanied by an [$80m] IBRD Guarantee). The PforR focuses on the achievement of outputs and outcomes derived from the four Results Areas described below. Funds are disbursed to EESL when certain Disbursement Linked Indicators (DLIs) are met, signaling progress towards the overall objectives of each Results Area. 1 With the PforR instrument, the proposed operation scale up energy savings in residential and public sectors, strengthen EESL s institutional capacity, and enhance its access to commercial financing. The PforR would support: (i) Under Results Area 1, on energy savings and EE market transformation in the residential sector, providing financing to scale up EE delivery in the residential sector under UJALA, focusing on EESL s sales of LED light bulbs, tube lights, and ceiling fans; 1 Additional program documents, including the Program Appraisal Document can be found here. 1

4 (ii) Under Results Area 2, targeting energy savings and EE market transformation in public street lighting, providing financing for scaling-up LEDs in public street lighting through EESL s SNLP program. (iii) Under Results Area 3, development of sustainable business models in new EE market segments, focusing on upstream program development support and incorporation of technical, environmental and social sustainability elements in the design of new initiatives under development, such as its Air Conditioning, Agricultural Demand Side Management, and Building Energy Efficiency Programs, which require additional preparatory work to ensure sustainable scale-up. (iv) Under Results Area 4, on EESL institutional strengthening for sustainable EE scale-up, focusing on technical, managerial, procurement, environmental and social capacity and practices. Disbursement Linked Indicators (DLIs) The World Bank will disburse [$220 ] against the achievement of outputs and outcomes derived from the results chain (see Program Appraisal Document <hyperlink to be added>). The PforR envisions disbursements according to six DLIs under the four results areas described above. EESL is hiring a consultancy to conduct the independent of the achievement of the DLIs which is necessary for the World Bank to trigger disbursements of the PforR as per the DLI Matrix (in Annex 3 of the Program Appraisal Document - PAD). The DLIs are outlined below, with details presented in Annex 1 of the PAD. (i) Results Area 1: Energy savings and EE market transformation in the residential sector DLI 1: Number of LED bulbs and LED tube lights sold via EESL Program. DLI 2: Number of energy efficient ceiling fans sold via EESL Program. (ii) Results Area 2: Energy savings and EE market transformation in public street lighting DLI 3: Number of LED street lights installed under SLNP. (iii) Results Area 3: Development of sustainable business models in new EE market segments DLI 4: EESL implementation of EE AC sustainability actions DLI 5: EESL approval of business model for collaboration with private sector ESCOs in the implementation of EESL Building EE activities (iv) Results Area 4: Institutional strengthening for sustainable EE scale-up DLI 6: Establishment of sustainable development unit and implementation of updated environmental and health safety standards (EHSS) guidelines covering all EESL programs under implementation Verification Protocols Achievement of DLIs will be verified [bi-annually/ annually] and results will form the basis for requesting the trigger of disbursement. For scalable DLIs (i.e., DLIs 1, 2 and 3), payments will be made in proportion to the achieved results for each period, provided they meet the minimum requirement, after they have been verified. For non-scalable DLIs (i.e., DLIs 4, 5 and 6), the complete target must be achieved to trigger the corresponding disbursement. The IVA will follow the protocols which are detailed in the PAD (shown in Annex 2 of these ToRs). III. SCOPE OF WORK The scope of work for the Independent Verification Agent (IVA) will consist of carrying out independent of the achievement of the DLIs based on the agreed Verification Protocol of each DLI and producing a report for EESL, which will accompany each disbursement claim prepared by EESL and 2

5 submitted to the World Bank for the duration of the India Energy Efficiency Scale-up program (i.e., 5 years). The report will include the details of the procedures, as well as the results for each DLI as follows: (i) DLI 1: Number of LED bulbs and LED tube lights sold by EESL under UJALA program (as specified in the DLI matrix included in the PAD and copied in Annex 3) : the will be based on the EESL dashboard ( and and [sale receipts]. IVA will confirm quantities reported in EESL dashboard by verifying system integrity of reporting of sales through the dashboard and random sampling of sales receipts (to be conducted by IVA). Upon of the achievement of the DLI, the IVA will report to EESL and the WB the confirmation of quantities of LED bulbs and LED tube lights sold via EESL program, along with description of process followed (including how the system integrity was verified, along with information on the random sampling) and if the threshold for disbursement was achieved. DLI 2: Number of energy efficient ceiling fans (BEE 5-star or above) sold by EESL under UJALA program (as specified in the DLI matrix included in the PAD and copied in Annex 3): The will be based on the EESL dashboard ( and [sale receipts]. IVA will confirm quantities in EESL dashboard by verifying system integrity of reporting of sales through the dashboard and random sampling of sales (to be conducted by IVA). Upon of the achievement of the DLI, the IVA will report to EESL and the WB the confirmation of quantities of energy efficient fans sold via EESL program, along with description of process followed (including how the system integrity was verified, along with information on the random sampling), and if the threshold for disbursement was achieved. (ii) DLI 3: Number of LED street lights installed under SNLP (as specified in the DLI matrix included in the PAD and copied in Annex 3): The will be based on quantities in the EESL dashboard and a confirmation of those quantities through by verifying system integrity of reporting of sales through the dashboard and random sampling of [Implementation Completion Certificate] issued by the municipalities (to be conducted by IVA), along with description of process followed (including how the system integrity was verified, along with information on the random sampling) Upon of the achievement of the DLI, the IVA will report to EESL and the WB a confirmation of quantities of LED street lights installed under SNLP and that threshold for disbursement (as specified in Annex 2) was achieved. (iii) DLI 4: Implementation of EE AC Sustainability Actions (as specified in the DLI matrix included in the PAD and copied in Annex 3): For the, IVA will request ESSL and ESSL will provide to the IVA the following documents: EESL Board meeting minutes, as certified by the Company Secretary, confirming approval of decision on AC sustainable actions, including the list and description of the AC sustainable actions; consumer guide covering among others steps to take to ensure safe replacement and disposal of refrigerants, along with information on buy-back options (where available); data or source of information of efficient AC sold / distributed after the Board decision, to be data source for the IVA ; reporting template for manufacturers on AC refrigerant disposal, along with EESL s standard AC bidding documents, or bidding documents for the last [2-3] procurement tenders, for the IVA ; and Report on stakeholder consultations on sustainable efficient AC, including, inter alia, date and location, agenda; material presented and/or distributed; list and contact details of 3

6 participants; and participant responses to feedback survey on usefulness of stakeholder consultation. Other information the IVA may consider necessary for the. IVA to carry out the procedures and assessment to verify the following: (1) EE AC sustainability actions plan was submitted to and approved by the [Board][management] with the decision instructing implementation, and that the actions approved are consistent to those in the DLI; (2) the consumer guide has been completed and is being disseminated in packaging (description of EESL s dissemination process and through random sampling); (3) final reporting template on disposal of AC refrigerant has been completed and it is being included as a requirement in EESL s AC bidding documents [in standard documents or at least in the latest [[2]-[3]] bids; and (4) EESL has carried out stakeholder consultation (including with at least [3] AC manufacturers and [2] waste disposal agents) on safe refrigerant disposal through report which includes elements outlined in the DLI. The IVA can contact or request confirmation and feedback directly from participants selected randomly by IVA. (5) Confirm posting on EESL website of EE AC sustainability actions, (plan) approved the consumer guide and the standard reporting template, as described before in (1), (2) and (3) (iv) DLI 5: EESL approval of business model for collaboration with private sector ESCOs in the implementation of EESL Building EE activities (as specified in the DLI matrix included in the PAD and copied in Annex 3): IVA to request EESL and ESSL will provide to the IVA the following documents EESL Board meeting minutes, as certified by the Company Secretary confirming approval of business model, and the copy of the document approved; copy of report on business model; and EESL report describing consultation with private ESCOs) carried out by ESSL (including date and location; material presented and/or distributed; list and contact details of participants; key issues raised by participants; and participant responses to feedback survey on stakeholder consultation). Other information the IVA may consider necessary for the. IVA to carry out the procedures and assessment to verify the following: (1) confirm the development and approval by [Board][Management] of ESSL of report on business model and that it is consistent with the requirements of DLI5; (2) Confirm the consultations done by ESSL and summarize scope, participation, and feedback by participants. The IVA can contact or request confirmation and feedback directly from participants selected randomly by IVA (5) Confirm posting on EESL website of approved EESL business model with private ESCOs (v) DLI 6: Establishment of Sustainable Development unit and implementation of updated EHSS guidelines covering all EESL programs under implementation (as specified in the DLI matrix included in the PAD and copied in Annex 3): IVA to request EESL and ESSL will provide to the IVA the following documents : EESL Board meeting minutes, as certified by the Company Secretary confirming establishment of the Sustainable Development units described in the PAD, along with agreed ToRs, staffing plan and budget allocation to IVA, copy of TORs and organization. 4

7 Updated EHSS guidelines in place and applicable/adopted at the time of the, and documentation confirming that it covers and applies to all EESL programs under implementation Description of dissemination carried out by EESL of the updated ESSA guidelines to (i) EESL staff and (ii) to vendors. The IVA will carry out the by randomly selecting a sample of EE staff and of Vendors included in the dissemination. Report to EESL management on activities of Sustainable Development Unit and on implementation of updated EHSS Guidelines, covering all EESL programs under implementation, and documentation confirming it has been submitted to management. IVA to carry out the procedures and assessment to verify the following: Verify that the unit has been established, with TORs covering scope of work as outlined in Environmental and Social Safeguards Assessment (ESSA) <hyperlink to be added> Annex VII and acceptable to WB) and staffing plan approved; and budget confirmed, reporting to Managing Director. The updated EHSS guidelines cover all EESL programs under implementation and is consistent with ESSA and its Annex VII). The completion and submission to EESL management of a report on activities of Sustainable Development unit and on implementation of updated EHSS. IV. REPORTING The IVA will produce and deliver [annual] [bi-annual] reports covering the scope described in the section Scope of Work directly to EESL. Based on the DLIs set out in the Program Appraisal Document (and described in the Annexes of these ToRs) 2 and the relevant terms and conditions in the legal agreement signed for the India EE Scale Up program, [EESL will review and submit comments [to seek corrections for any unclarities, inaccuracies, misunderstandings or misinterpretations], if any, to the consultant] Final reports will accompany EESL s requests for triggering disbursement by the World Bank to EESL. The IVA should produce reports from its independent and submit to EESL them by March 31 each year. V. DELIVERABLES A work plan for the duration of the India Energy Efficiency Scale-up Program that specifies the type of work, methodology and procedures (including approach for robust random sampling), information requirements, roles and responsibilities, and timelines. This will be prepared and submitted to EESL within [1 month] for EESL s review and agreement, following the signature of the contract; [Annual] [Bi-annual] reports of DLI achievements including description of procedures submitted to EESL for inclusion in its subsequent request to the World Bank to trigger associated disbursements Indicative report outlines (with timelines) should be prepared and shared with EESL prior to commencement of exercises. 2 It may be noted that the annexes provide the current version of the DLIs and protocols for reference only. The consultant would be required to verify to the online version of the Program Appraisal Document at all times. In the event of any discrepancy between the Annexes contained in these ToRs and the PAD, the consultant shall rely on the information provided in the PAD. 5

8 VI. SUPPORT FROM EESL Provision of related documents and/ or information as agreed, including PAD; Facilitation of access to data sources and stakeholders, as necessary for. The EESL contact for the work to be conducted by the selected IVA is [EESL to provide name and coordinates of EESL staff that will manage the process] VII. WORKING SCHEDULE It will be finalized later. Annex 1: Summary of Disbursement Linked Indicators Disbursement-Linked Indicator Definition Amount (US$ s) Results Area 1: Energy savings and EE market transformation in the residential sector (50% of total, $110 ) DLI1. Number of LED bulbs and tube lights sold via EESL Program DLI2. Number of energy efficient ceiling fans sold through EESL program Number of LED bulbs and tube lights sold by EESL under UJALA program Number of EE ceiling fans (BEE 5-star rating or above) sold by EESL under UJALA program $66 $44 Results Area 2: Energy savings and EE market transformation in public street lighting (25% of total) DLI3. Number of LED street lights installed under SLNP Number of street lights installed under SLNP $55 Results Area 3 : Development of sustainable business models in new EE market segments DLI4. EESL implementation of EE AC sustainability actions (RF) EESL [Board][Management] adopts decision to implement EE AC actions, including (i) dissemination of consumer guide on safe refrigerant replacement and disposal and of buy-back options (where available) through packaging of EESL-procured AC; (ii) use of reporting template for manufacturers on AC refrigerant disposal, including Registered E-Waste Dismantler/Recycler s (or evidence) of disposal, in conformity with India s Environmental Protection Act to enable monitoring and recording of AC disposal and recycling actions by manufacturers participating in EESL bids; (iii) and conducting stakeholder consultations on safe refrigerant disposal with e-waste providers and AC stakeholders. Decision is implemented. (10% of total, i.e. $22 ) $14 6

9 DLI5. EESL approval of business model for collaboration with private sector ESCOs in the implementation of EESL Building EE activities EESL [Board][management] approval of business model for broadening service offering and private sector ESCO partnerships under the Buildings EE Program, including (i) description of partnership model(s) and range of energy solutions that would be targeted; (ii) clarification of roles, responsibilities and implementation risk sharing; (iii) description of M&V method for EE in buildings; and (iv) plan for consultations with private sector ESCOs $8 Results Area 4 Institutional strengthening for sustainable EE scale-up DLI6. Establishment of sustainable Establishment of EESL unit in charge of environmental and development unit and adoption of social sustainability and EESL adoption of updated EHSS updated EHSS guidelines covering all guidelines covering all EESL programs under EESL programs under implementation implementation. The unit should (i) be set up based on agreed TOR (as per work scope in Annex VII of ESSA and acceptable to WB); (ii) be resourced with budget and dedicated full-time qualified staff; and (iii) have direct reporting to EESL s Managing Director. Update of EHSS guidelines covering all EESL programs under implementation and delivery of management report on implementation of the updated EHSS guidelines. (15% of total) $33 Annex 2: Verification Protocol # DLI Definition/ Description of achievement 1 Number of LED bulbs and LED tube lights sold via EESL program 2 Number of energy efficient ceiling fans sold via EESL program 3 Number of LED street lights installed under SLNP Number of LED bulbs and LED tube lights sold by EESL under UJALA program. Number of energy efficient ceiling fans (BEE 5-star or above) sold by EESL under UJALA program Number of EESL street lights installed under SNLP Scalability of Disbursemen ts Data source/agency (Yes/No) Yes EESL Dashboard ( in) and sales receipts Yes Yes Protocol to evaluate achievement of the DLI and data/result Verification Procedure Entity independent agent (IVA) EESL Dashboard ( rg/) and sales receipts Dashboard and contracts with ULBs [and State rural departments] and independent agent (IVA) Independent agent IVA to confirm quantities in EESL dashboard through random sampling. IVA to send WB a confirmation of quantities of LED bulbs and LED tube lights sold via EESL program and that minimum number for disbursement (in table above) was achieved. IVA to confirm quantities in EESL dashboard through random sampling. IVA to send WB a confirmation of quantities of energy efficient fans sold via EESL program and that minimum number for disbursement (in table above) was achieved. IVA to confirm quantities in EESL dashboard through random sampling. IVA to send WB a 7

10 # DLI Definition/ Description of achievement 4 Implementatio n of EE AC sustainability actions EESL [Board][managemen t] approves decision to implement EE AC sustainable actions and communicates them on EESL website, including, (i) dissemination of consumer guide on safe refrigerant replacement and disposal and of buyback options (where available) through packaging of EESLprocured AC; (ii) use of reporting template for manufacturers on AC refrigerant disposal, including Registered E-Waste Dismantler/Recycler s (or evidence) of disposal, in conformity with India s Environmental Protection Act to enable monitoring and recording of AC disposal and recycling actions by manufacturers participating in EESL bids; and (iii) consultations on safe refrigerant disposal with e-waste providers and AC stakeholders (including at least [3] AC manufacturers and [2] waste disposal agents) Scalability of Disbursemen ts (Yes/No) No Protocol to evaluate achievement of the DLI and data/result Data source/agency Verification Entity Procedure contractors installing street lights [EESL Board meeting minutes, as certified by the Company Secretary]; final consumer guide; random sample of EESL ACs (to confirm inclusion of consumer guide); final reporting template; and EESL AC bidding document including reference to use of template; report from consultations on safe refrigerant disposal Independent agent (IVA) confirmation of quantities of LED street lights installed under SNLP and that minimum number for disbursement (in table above) was achieved. EESL submits to IVA EESL Board meeting minutes, as certified by the Company Secretary confirming approval of decision on AC sustainable actions; and the following documentation: (i) consumer guide (including steps to take to ensure safe replacement and disposal of refrigerants, along with information on buy-back options (where available) and evidence of inclusion of guide in AC packaging from random sample of EESL ACs; (ii) reporting template for manufacturers on AC refrigerant disposal, along with evidence of its reference in EESL s AC bidding documents; and (iii) Report on stakeholder consultations, including, inter alia, date and location, agenda; material presented and/or distributed; list and contact details of participants; and participant responses to feedback survey on usefulness of stakeholder consultation. 8

11 # DLI Definition/ Description of achievement 5 EESL approval of business model for collaboration with private sector ESCOs in the implementatio n of EESL Building EE activities EESL [Board] [management] approval of business model for broadening service offering and private sector ESCO partnerships under the Buildings EE Program, including (i) description of partnership model(s) and range of energy solutions that would be targeted; (ii) clarification of roles, responsibilities and implementation risk sharing; (iii) description of M&V method for EE in buildings; and (iv) plan for consultations with private sector ESCOs EESL publishes report on business model for broadening service offering and private sector ESCO Scalability of Disbursemen ts (Yes/No) No Protocol to evaluate achievement of the DLI and data/result Data source/agency Verification Entity Procedure IVA to confirm (1) evidence of [Board][managemen t] decision; (2) completion and dissemination of consumer guide in packaging (through random sampling); (3) final template and its reference in EESL s AC bidding documents; and (4) EESL s stakeholder consultation on safe refrigerant disposal through report which includes elements outlined above in (iii). IVA to confirm posting of (i); (i); and (iii) EESL Board meeting minutes, as certified by the Company Secretary; report outlining business model for collaboration with private sector ESCOs in implementation of EESL Building EE activities; EESL website 9 Independent agent on EESL website. EESL submits to IVA (i) EESL Board meeting minutes, as certified by the Company Secretary confirming approval of business model; (ii) copy of report on business model; and (iii) report on consultation with private sector ESCOs (including date and location; material presented and/or distributed; list and contact details of participants; key issues raised by participants; and participant responses to feedback survey on stakeholder consultation. IVA to confirm development of report on business model which includes required elements [and is published on EESL website];

12 # DLI Definition/ Description of achievement partnerships under the Buildings EE Program on business model containing elements (i), (ii), (iii) and (iv) on EESL website. EESL conducts and reports on consultation (agenda acceptable to WB) with [at least [10]] private sector ESCOs. Scalability of Disbursemen ts (Yes/No) Protocol to evaluate achievement of the DLI and data/result Data source/agency Verification Entity Procedure completion of report consultations with private sector ESCOs which includes elements specified in this table. 6 Establishment of Sustainable Development unit and implementatio n of updated EHSS guidelines covering all EESL programs under implementatio n (1) EESL Board approval of establishment of Sustainable Development Unit; (2) update of EHSS (Environmental, Health, Social and Safety) Guidelines to cover all EESL programs under implementation and (3) completion and delivery of management report on implementation of updated EHSS Guidelines. The unit shall (i) have direct reporting to EESL s Managing Director; (ii) be resourced with budget and dedicated full-time qualified staff (i.e., by professionals of relevant academic and professional experience, such as environmental, engineering/ sciences, environmental law, social development and community outreach); and (iii) approved TOR (as per the ESSA and its Annex VII, and acceptable to WB) which include, inter alia: - Continuous Update of EHSS Guidelines and Manuals to (i) ensure full No (1) EESL Board meeting minutes, as certified by the Company Secretary providing evidence of approval of unit, along with staffing plan; mandate; budget and approved ToRs; (2) Updated EHSS guidelines covering all EESL programs under implementation; and (3) Management report on activities of Sustainable Development Unit implementation of updated EHSS guidelines. Independent agent (IVA) EESL to submit EESL Board meeting minutes, as certified by the Company Secretary confirming establishment of unit, along with agreed ToRs, staffing plan and budget allocation to IVA. IVA to confirm that unit has been established, with TORs covering scope of work as outlined in ESSA Annex VII and acceptable to WB) and staffing plan approved; and budget confirmed, reporting to Managing Director. EESL to submit updated EHSS guidelines (covering all EESL programs under implementation) to IVA. IVA to confirm updated EHSS guidelines cover all EESL programs under implementation (consistent with ESSA and its Annex VII). IVA to confirm dissemination of 10

13 # DLI Definition/ Description of achievement coverage of programs carried out by EESL; and (ii) cover all environmental and social risks and mitigation plans for all EESL programs under implementation - Development of EHSS training and capacity building for EESL staff and contractors - Monitoring of EHSS guidelines, and preparation of bi-annual management report on implementation of EHSS Guidelines -The Updated EHSS guidelines (as specified above) shall cover all EESL programs under implementation 3 and be well disseminated among all EESL staff and vendors - report to EESL management on activities of Sustainable Development Unit and implementation of updated EHSS guidelines (including implementation performance, strengths, weaknesses, as per Annex VII of ESSA) covering all EESL programs under implementation. Scalability of Disbursemen ts (Yes/No) Protocol to evaluate achievement of the DLI and data/result Data source/agency Verification Entity Procedure updated ESSA guidelines to EESL staff and vendors through random sampling. EESL to submit to IVA Management report on implementation report of updated EHSS Guidelines, covering all EESL programs under implementation. IVA to confirm report submitted to EESL management and covers, inter alia, implementation performance, strengths, weaknesses (as per Annex VII of ESSA) for all EESL programs under implementation. 3 An EESL program is deemed under implementation once it reaches a minimum of either (i) 5 projects (a project is defined as one procurement and sale/ installation cycle for any appliance) completed; or (ii) cumulative program investment of USD 30 as of the year preceding the publication of the updated EHSS guidelines 11

14 Annex 3. Disbursement-Linked Indicator Matrix [numbers in brackets are indicative and not final] 4 DLI 1 - Number of LED bulbs and tube lights sold via EESL program [DLI quantities are based on 75% of EESL targets, as communicated 11/30/2017, i.e. 274 bulbs and tube lights] Allocated amount: [$[0.24] per LED bulb or tube light] for up to 274 LED bulbs and tube lights. [Disbursements possible for minimum of 50% of yearly target up to total of 25% above yearly target] DLI 2 - Number of energy efficient ceiling fans sold via EESL program [DLI quantities based on 75% of EESL target, as communicated 11/30/2017, i.e. 7.2 EE fans] Allocated amount: [$[3.01] per fan] for up to 7.3 EE fans [Disbursements possible for minimum of 50% of yearly fan target up to total of 25% above yearly target] Total Financing Allocated to DLI [$66 ] [$22 ] As % of Total Financin g Amount DLI Baselin e (3/31/20 17) [216] Period 1 (3/31/201 8) [71] [30%] [$17.1] [0.59] [1.1] [10%] [$3.4] Indicative timeline for DLI achievement Period 2 (3/31/201 9 [79] [$19] [1.5] [$4.5] Period 3 0) [79] [$19] [1.65] [$5.0] Period 4 1) [41] [$9.9] Period 5 2 [4 ] [$1.0] [1.5] [1.5 ] [$4.5] [$4.5] 4 Consultant is advised to check information provided in this Annex with the PAD. In the event of any discrepancy, the consultant should rely on the PAD. 12

15 DLI 3 - Number of LED street lights installed under SLNP [DLI quantities based on 75% of EESL target, as communicated 11/30/2017, i.e. 9 street lights] Allocated amount: [$[8.56] per street light] for up to 9 street lights [Disbursements possible for minimum of 50% of yearly street light target up to total of 25% above yearly target] DLI 4 - EESL implementation of EE AC sustainability actions Total Financing Allocated to DLI [$77 ] Allocated amount: [$14 ] As % of Total Financin g Amount DLI Baselin e (3/31/20 17) Period 1 (3/31/201 8) [2] [2.3] [35%] [$19.25] No decision Decision adopted [6.4%] [$7] Indicative timeline for DLI achievement Period 2 (3/31/201 9 Period 3 0) [2.2] [2.2] [$19.25] [$19.25] Impleme ntation of EE AC sustainab ility actions [$7] Period 4 1) [1.9] [$16.04] Period 5 2 [0.4] [$3.21] DLI5 EESL approval of business model for collaboration with private sector ESCOs in the implementation of EESL Building EE activities No approve d business model Approval of business model Allocated amount: [$8 ] [3.6%] [$8] DLI 6 Establishment of Sustainable Development unit and implementation of updated EHSS Guidelines covering all EESL programs under implementation No env and social unit; EHSS guidelin es not updated (for new program s) Board approval of new unit (ToRs and staffing plan) updated EHSS guideline s, incl all EESL programs under implement ation Report delivered to managem ent on activities of SD unit and on impleme ntation of EHSS 13

16 Total Financing Allocated to DLI Allocated amount [$33 ] TOTAL $220,000,0 AMOUNTS 00 As % of Total Financin g Amount DLI Baselin e (3/31/20 17) Period 1 (3/31/201 8) [15%] [$14] 100% [$60.75] Indicative timeline for DLI achievement Period 2 (3/31/201 9 [$14] [$64.82] Period 3 0) [$50.27] Period 4 1) [5 ] [$35.45] Period 5 2 [$8.7] 14