Brief Description of Initiation Plan The project objective is to improve significantly energy efficiency of Refrigeration and Air conditioning (RAC) equipment and appliances manufactured and used in Indonesia and aimed for reduction of greenhouse gas (GHG) emissions. This project is a unique demonstration of the combining and sequencing different sources of funding that target specific goals, namely the Multilateral Fund (MLF) for implementation of the Montreal Protocol has provided grant funding to Indonesia for compliance with the phase-out schedule for Hydrochlorofluorocarbons (HCFCs), through implementation of a performancebased HCFC Phase-out Management Plan (HPMP) and the GEF funding requested in the project which would facilitate the realization of energy efficiency benefits while transitioning to non- HCFC technologies. Collectively, the implementation of energy efficiency measures in the design and manufacturing of new RAC equipment and appliances during this changeover phase would enable the country s RAC industry realize greater global environmental benefits due to the early adoption of energy efficiency technologies and techniques in the design and manufacturing of energy efficient RAC equipment and appliances while carrying out HCFC phase-out for compliance with the Montreal Protocol. The improvement in the energy efficiency of new RAC equipment in Indonesia will be achieved by addressing the existing barriers that hinder the widespread application of EE technologies and techniques in the manufacturing of energy efficient refrigeration and air conditioning (RAC) equipment and appliances in the country. The barriers to improving the energy efficiency of RACs manufactured and used in Indonesia, and to the widespread use of EE RACs are including (1) Policy and institutional barriers, in which regulations on the application of energy efficiency standards and labels for energy consuming equipment and appliances are still limited in Indonesia, (2) Awareness and market barriers, the users of RACs are not aware of the availability and benefits of the energy efficient variety of such product, (3) Financial barriers, the financial institutions still consider energy efficiency projects as high risk ventures, (4) Technical barriers, Technology transfer for improving energy efficiency of RACs from multinational players is governed by intellectual property and other related issues. The project will comprise of four main components, addressing the above mentioned barriers to the manufacture and use of energy efficient RACs. The four main components are aimed to deliver the abovementioned outputs and outcomes. The four components are as follows: Component 1: Policy and Institutional Frameworks for the RAC Industry. The expected outcome is enforced policies, laws and regulatory support mechanism to ensure manufacturing and sale of certified quality energy efficient (EE) RACs in Indonesia Component 2: Public awareness of benefits of energy efficient RACs. This project component is expected to address the barriers related to low market penetration of EE RACs. Component 3: Promoting investments for EE enhancements in the RAC Industry. This component will address the removal of financial barriers to enable EE RAC manufacturers to access financial resources in order to achieve the expected outcomes, increased production and sales of EE RACs in Indonesia as well as enhanced capacities of RAC manufacturers to produce EE RACs. Component 4: Technical Assistance and training for RAC Industry. This project component will focus of improving the technical capacities of the RAC manufacturing enterprises to develop and implement energy efficient RAC manufacturing technologies.
PROJECT PREPARATION GRANT (PPG) PROJECT TYPE: Full-sized Project TYPE OF TRUST FUND: GEF Trust Fund Submission date: 03/19/2012 Resubmission date: 01/16/2013 GEF PROJECT ID: 4899 GEF AGENCY PROJECT ID: 4945 COUNTRY(IES): Indonesia PROJECT TITLE: Promoting Energy Efficiency for Non-HCFC Refrigeration and Air Conditioning (PENHRA) GEF AGENCY(IES): UNDP GEF FOCAL AREA(s): Climate Change A. PROJECT PREPARATION TIMEFRAME Start date of PPG 12/01/2012 Completion date of PPG 30/08/2013 B. PROPOSED PROJECT PREPARATION ACTIVITIES ($) Describe the PPG activities and justifications: The PPG exercise will focus on the activities that are necessary to collect adequate information and conduct relevant analyses to design and prepare the fullsize project document and CEO Endorsement Request for the proposed GEF-funded project. List of Proposed Project Preparation Activities 1. Conduct baseline studies and assess (a) energy performance benchmark for Refrigeration and Air conditioning (RAC) equipment and appliances, and (b) technical assessment for the application of energy efficient (EE) technologies and techniques in RAC equipment and appliances manufacturing Analyze and design (a) financial Output of the PPG Activities Detailed assessment report on the following: Energy performance benchmark of RAC equipment and appliances from targeted manufacturers Proposed application of energy efficient (EE) technologies and techniques to manufacture energy efficient RAC equipment and appliances Listed priority equipment type, and suggested an approach for addressing implementation of MEPS Conducted stakeholder consultation workshops and Trust Fund Grant Amount (a) Co-financing (b) Total c = a + b GEF TF 20,000 25,000 45,000 GEF TF 17,500 21,000 38,500
assistance program on the basis of a methodology for the selection of manufacturers that would benefit from grant funding, (b) maintained consistency in the disbursement of grant assistance between MLF and GEF, (c) options for technology adoption by the manufacturers and opportunities for North/South and South/South technology transfer 3. Conduct of Logical Framework Analysis (LFA) with the project stakeholders 4. Detailed Design of Project Components & Activities 5. Establishment of institutional framework for project partners/co-financiers in the project implementation and to ensure close coordination with cofinanced baseline activities come up with: a methodology for financial assistance under PENHRA which maintains a consistency with MLF policies through stakeholder consultation workshops options for technology transfer explored if at all applicable Agreed logical framework or project planning matrix defining the project goal, objective, outcomes and outputs, with the relevant indicators (with baseline & target values), means of verification and critical assumptions Finalised implementation plan along with institutional structure & manpower plan for project implementation, monitoring and knowledge dissemination Detailed design of the project activities which are incremental compared to baseline activities and based on the outputs of LFA workshop Finalized required agreements for the project implementation arrangements including cofinanced baseline activities Established well defined communication mechanism among key stakeholders / partners Obtained letter of GEF TF 25,000 25,000 50,000 GEF TF 30,000 10,000 40,000 GEF TF 9,966 8,000 17,966
commitment for Cofinancing from partners 6. Drafting of the Draft ProDoc and responses GEF TF 0 6,000 6,000 Project Document to comments (if any) 7. Finalization and Submission of the ProDoc and CEO Endorsement Request Final ProDoc & CEO Endorsement Request GEF TF 0 5,000 5,000 Total Project Preparation Financing 102,466 100,000 202,466 C. FINANCING PLAN SUMMARY FOR PROJECT PREPARATION GRANT: ($) Project Preparation Agency Fee Grant Amount 102,466 9,734 Co-financing 100,000 Total 202,466 9,734 D. PPG AMOUNT REQUESTED BY AGENCY(IES), FOCAL AREA(S) AND COUNTRY(IES) 1 : N.A. E. PPG BUDGET Cost Items Total Estimated Person Weeks for Grant (PW) Grant Amount ($) Co-financing ($) Total($) Local consultants * 60 45,000 30,000 75,000 International consultants* 13 32,500 0 32,500 Travel 7,000 35,000 42,000 Workshop & Stakeholder 15,466 30,000 45,466 Consultations Office and Miscellaneous 2,500 5,000 7,500 Total PPG Budget 102,466 100,000 202,466 * Annex A for Consultant cost details should be prepared first before completing this table. See notes on Annex A for the required detailed information. This table is the sum of all local and international consultants presented in Annex A. F. GEF AGENCY(IES) CERTIFICATION This request has been prepared in accordance with GEF policies and procedures and meets the GEF LDCF/SCCF/NPIF Trust Fund criteria for project identification and preparation. Agency Coordinator, Agency Name Adriana Dinu UNDP/ GEF Officer-in- Charge Signature Date (Month, day, year) Project Contact Person 01/16/2013 Butchaiah Gadde, Regional Technical Telephone +66 2304 9100 ext 5048 Email Address butchaiah.gadde @undp.org
Annex A Consultants Financed by the Project Preparation Grant (PPG) Type of Consultant Local Local Position / Titles Energy Efficiency Technical Energy Efficiency Policy $/PW 1 Estimated PWs 2 Tasks to be Performed 750 20 1. Provide an overview of RAC equipment and appliances produced by manufacturers in Indonesia. 2. Provide nationally acknowledged energy performance testing standards used for RACs. 3. Engage government, RACs manufacturers, and testing institutions/laboratories to support energy performance benchmarking study and technical assessment. 4. Collaborate with accredited testing laboratories to conduct energy performance testing. 5. Develop energy performance benchmark and technical assessment report. 6. List priority equipment type, and the suggested approach for addressing implementation of minimum energy performance standards (MEPS) 7. Design and suggest financial assistance program along with a methodology for the selection of manufacturers that would benefit from the available limited grant funding 8. Analyse specific guidelines provided by MLF Executive Committee and GEF procedures while funding multinational manufacturers and come up with an approach to ensure that there is consistency in the guidelines being used for grant assistance 9. Identified a set of energy efficient technologies and techniques to manufacture energy efficient RAC equipment and appliances. 10. Analyze the cost-benefit analysis of energy efficient equipment and related broader economic benefits 11. Facilitate stakeholder consultation workshops to discuss the recommendations and provide required technical inputs. 12. Develop final report. 750 20 1. Conduct desk study and interviews on energy efficiency policies in Indonesia and elsewhere in the region, with a focus on energy efficient RAC equipment and appliances. 2. List possible policies in line with the priority equipment type (level of penetration and coverage), and the stringency levels that will be pursued for addressing implementation of MEPS 3. Identify an approach for the implementation of possible policy options. 4. Provide an analysis on how public awareness of benefits of energy efficient RACs will lead to greater market penetration 5. Detail the policies and related activities that are covered in PENHRA project and demonstrate that these are additional to those covered already in the HPMP project 6. Demonstrate the linkage in awareness activities covered under both PENHRA and HPMP projects 7. Detailed analysis of the options for technology adoption by the manufacturers and opportunities for North/South and South/South technology transfer
Local International Project management Project Development and Management 1 Provide dollar amount per person week 2 Provide person weeks needed to carry out the task 8. Facilitate stakeholder consultations to discuss on the policy options and provide inputs. 9. Develop final report. 750 20 1. Participate in stakeholder consultations and coordinate overall technical inputs, comments and suggestions 2. Conduct Logical Framework Analysis 3. Consolidate the inputs from LFA exercise and individual experts 4. Structure the draft of project document in coordination with International consultant. 5. Prepare operation manual for the project including but not limited to: administrative rules, regulation, procedure following UNDP guidelines; and complete set of financial procedures to be followed by the project. 6. Put in place project reporting and monitoring guideline following UNDP standards. 7. Assist International consultant in finalizing Project Document. 2,500 13 1. Participate in stakeholder consultations and coordinate overall technical inputs, comments and suggestions 2. Finalise the inputs from individual experts. 3. Preparation of project proposal document which includes: Discuss outline activities with rest of the experts Prepare draft UNDP ProDoc, CEO endorsement request and CC tracking tool documents based on inputs during consultation and from individual experts Finalize the documents based on feedback from UNDP CO/Bangkok, liaising with individual experts in the team for required inputs/clarifications 4. Finalize Project Document Assist with clarifications on comments from GEF Sec review
Total Budget and Work Plan Award ID: 00072677 Project ID(s): 00085740 Project Title: Promoting Energy Efficiency for Non-HCFC Refrigeration and Air Conditioning (PENHRA) Business Unit: IDN10 Project Title: Promoting Energy Efficiency for Non-HCFC Refrigeration and Air Conditioning (PENHRA) PIMS no. 4945 Implementing Partner (Executing Agency) UNDP GEF Outcome/Atlas Activity Project Preparation Grant to formulate a full size project - Promoting Energy Efficiency for Non- HCFC Refrigeration and Air Conditioning (PENHRA) Budget note: Responsible Party/ Implementing Agent Fund ID Donor Name UNDP 62000 GEF Atlas Budgetary Account Code 71300 71200 ATLAS Budget Description Local Consultants International Consultants Amount 2013 (USD) Budget Note 45,000 a 32,500 b 71600 Travel 7,000 c 75700 Workshops 15,466 d 74500 Miscellaneous 2,500 e Sub-total 102,466 Three Local Consultants (Energy Efficiency Technical (1), Energy Efficiency Policy (1), Project a management ) $15000 x 3 = $45,000 b One International Consultant (Project Development and Management ) $32,500 c Travel cost for consultants d Workshops & Stakeholder Consultations e Offices & Miscellaneous Expenses