Energy and Environment Partnership with the Mekong Region. EEP Mekong Programme

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1 Energy and Environment Partnership with the Mekong Region EEP Mekong Programme Call-for-Proposal (CfP) MEETING 14 June 2016: Hanoi 15 June 2016: Ho Chi Minh City

2 Call-for-Proposals No.6 Announced on 30 May 2016 CN submission deadline 12 August 2016 FPP submission deadline 07 October 2016 Contracting projects for funding end-november 2016

3 Eligibility for Application Technical focus NOT ELIGIBLE ARE: Feasibility studies Pilot projects (testing of new technology) projects with main focus on capacity building

4 Eligibility for Application Geographic Coverage: Cambodia, Lao PDR, Myanmar, Thailand, and Vietnam o Regional projects implemented in more than one of the Mekong partner countries are eligible Duration: 20 months (*ending in 2018) Lead Partners: Private sector companies and business associations registered in one or more of the Mekong countries or Finland Promotion of South-South, North-South and trilateral cooperation between the Mekong countries and Finland. Encourage transfer of know-how and technology in Clean Energy from Finland to the Mekong region cooperation with Finnish partners is considered an advantage in application for funding. Partners must sign partnership commitment letter to be attached as signed scan copy to the concept note/ project proposal. NOT ELIGIBLE AS LEAD PARTNER ARE: multilateral institutions, development agencies, trust funds, govt. agencies, universities but can cooperate with lead partners

5 EEP-MEKONG CONTRIBUTION Project size - Euro Max EEP-M co-funding Euro Min self contribution - Euro Max contribution EEP-M 500, , , % 1,000, , , % 1,500, , , % 2,500, ,000 1,875, % 5,000, ,000 4,250, % 10,000,000 1,000,000 9,000, % Own contributions have to exclude grants from other sources (donors etc.) loans from commercial sources or development agencies, however, are eligible.

6 Funding Approach Result based Funding - RBF Project developers have to indicate which of the milestones/results in their proposal will trigger the EEP incentive Eligible results are: A. Increased access to sustainable energy services o number of households and/or businesses supplied with clean energy B. Increased renewable energy generation or energy saving o kwh generated from renewable sources or saved by energyefficiency improvement v combination of both types of results is possible incentive is paid ex post after delivery of results no advance payment. but for achievement of milestone (e.g. partial or full completion of the installation of a clean energy system) can also be proposed by project developers.

7 eepmekong.org

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9 On line application form: Guidelines Download and calculator

10 Overall CfP Process Invitation for Concept Notes Negotiation Screening and Review of Concept Notes Expert Review of Full Project Proposals Invitation for Preparation of Full Project Proposals Continued RCU Support to Project Developers

11 Concept Note Stage Number of Concept Notes Received by Country

12 Concept Note Stage Number of Concept Notes Received by Technology

13 Call-for-Proposal (CfP) Application Selection Process CONCEPT NOTE stage CN received (RCU) CN screening (RCU) CN Evaluation (RCU + evaluators) Evaluation summary (RCU) Endorsement by EoF-MFA Invitation of selected CN/ PD to submit FPP (RCU) 3 external evaluators for each CN

14 Call-for-Proposal (CfP) Application Selection Process CN Screening (RCU & NC) CN received 71 CN screening 44

15 Distribution of screened and validated CNs by country Country CN submitted CN validated (%) Cambodia 11 9 (82 %) Lao PDR 10 5 (50 %) Myanmar 9 7 (78 %) Thailand 13 9 (69 %) Vietnam (54%) Regional 4 1 (25 %) TOTAL (62 %)

16 Rationale why 11 CN from Vietnam did not pass screening CN exceeds eligible funding share Additionality of EEP-M funding not given 4 CN* 2 CN Proposed project type not eligible (pilot, f-study) 2 CN Insufficient info provided (lead partner, financing) 1 CN Proposed technology not eligible 1 CN Project developer not from Vietnam 1 CN * PD have been contacted by RCU during CN screening to adjust funding share if made mistakenly

17 Call-for-Proposal (CfP) Application Selection Process CONCEPT NOTE stage CN received (RCU) CN screening (RCU) CN Evaluation (RCU + evaluators) Evaluation summary (RCU) Endorsement by EoF-MFA Invitation of selected CN/ PD to submit FPP (RCU) 3 external evaluators for each CN

18 CN EVALUATION CRITERIA

19 EVALUATION OF CONCEPT NOTES 44 Concept Notes for evaluation 13 CN from Vietnam (30 %) Evaluation by RCU with the support from external evaluators validated by MFA/EoF-Hanoi Evaluators contracted by RCU 3 evaluators for each CN 17 Concept Notes pass evaluation 5 CN from Vietnam (29 %)

20 CN selected during evaluation process Country CN to evaluation CN rejected CN validated Cambodia (56 %) Lao PDR (40 %) Myanmar (43 %) Thailand (11 %) Vietnam (38%) Regional (100 %) TOTAL (39%)

21 Rationale why 8 CN from Vietnam did not pass the evaluation process Sustainability not given business plan (description) 3 CN Project is commercially viable w/o funding (additionality) 2 CN Business as usual (no innovative business model) Proposed technology at early stage of application 2 CN 1 CN Preparation of business plan - sustainability of project (up scaling, market generation etc.) and formulation of additionality of project funding are major issues for rejection of CN from Vietnam.

22 Call-for-Proposal (CfP) Application Selection Process Full-Project PROPOSAL stage FPP received (RCU) FPP Evaluation (RCU + evaluators) Evaluation summary recommendation of projects for funding Validation of recommendation for funding by EoF-MFA Endorsement of projects for funding (SC) Funding Contract PD - MFA (RCU) 3 external evaluators for each FPP

23 Full-Project PROPOSAL Country no. of projects Cambodia 5 Lao PDR 2 Myanmar 3 Thailand 1 Vietnam 5 Regional 1 TOTAL 17 Technology - overall FPP Solar-PV 8 Solar thermal 1 Biomass 5 Biogas 3 TOTAL 17 Technology - Vietnam FPP Biomass 3 Biogas 1 Solar - thermal 1 TOTAL 5

24 FPP Applications received - approved Project value Euro Funding request Euro FPP received (total) Mio 4.8 Mio FPP Vietnam* Mio 0.88 Mio Project value Euro Funding request Euro FPP approved (total) Mio 3.26 Mio FPP Vietnam Mio 0.15 Mio * One project developer from Vietnam decided not to submit FPP

25 Rationale why 3 FPP from Vietnam did not pass the evaluation process Main issues: o Sustainability of project approach not given o o o o Project approach (business model) not innovative Technology not proven and commercial viability doubtful Proposed costs for technology unrealistic high Many project activities not related to deployment of clean energy (cap building) Sustainability of project (up scaling, market generation etc.) - project cost calculation access to energy not improved main reasons for rejection of FPP from Vietnam.

26 Proposed capacity building measures for project developers from Vietnam Concept Note Stage Project Idea development Problem identification/analysis Sustainability, Replicability, and Scalability of projects Definition of Eligibility Criteria Result Chain (Basic concepts) Result-based Financing definition - methodology Business plan (Basic concepts) Development Impacts: Human Rights Base Approach and Cross Cutting Objectives *Two training programmes for project developers during end-june July 2016

27 Proposed capacity building measures for project developers from Vietnam Full-Project PROPOSAL Stage Result Chain development (use of on-line system) Business plan formulation Risk analysis and mitigation in project description Implementation Plan development o Financial Information Project budget development Financial sources description Financial management: Transparency and Accountability Result Based Financing (RBF) detail scheduling *One training programme for project developers during September 2016

28 More information please contact visit our website

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