project identification form (pif)...gef-6 pif template-january 2015 5 part ii: project justification...

GEF-6 PIF Template-January 2015

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For more information about GEF, visit TheGEF.org

PART I: PROJECT INFORMATION

Project Title: Facilitating Renewable Energy & Energy Efficiency Applications for Greenhouse Gas

Emission Reduction (FREAGER)

Country(ies): Papua New Guinea (PNG) GEF Project ID:

GEF Agency(ies): UNDP GEF Agency Project ID: PIMS 5569

Other Executing

Partner(s):

Office of Climate Change & Development

(OCCD)

Submission Date: 30 July 2015

GEF Focal Area(s): Climate Change Project Duration (Mos) 48

Integrated Approach Pilot IAP-Cities IAP-Commodities IAP-Food Security Corporate Program: SGP

Name of Parent Program: N/A Agency Fee ($) 269,860

A. INDICATIVE FOCAL AREA STRATEGY FRAMEWORK AND OTHER PROGRAM STRATEGIES:

Objectives/Programs (Focal Areas, Integrated Approach Pilot, Corporate Programs) Trust

Fund

GEF Project

Financing Co-financing

CC-1 Program 2 GEFTF 2,840,640 17,111,000

Total Project Cost 2,840,640 17,111,000

B. INDICATIVE PROJECT DESCRIPTION SUMMARY

Project Objective: Enabling the application of feasible renewable energy and energy efficiency technologies for achieving

greenhouse gas emission reduction in PNG.

Project

Component

Financing

Type

Project

Outcomes Project Outputs

Trust

Fund

GEF Project

Financing, $

Co-

Financing, $

1. Energy

Policy and

Institutional

Framework

Development

TA Implementation

of approved

national energy

policy, and

enforcement of

supportive

policies, rules

and regulations

on low carbon

(LC)

development

that includes the

application of

renewable

energy and

energy

efficiency in

energy

generation and

energy-end use

sectors.

Finalized policy research, analysis

and assessment on low carbon (LC)

development and implementation

mechanisms compatible to the PNG

context, including disseminated

guides and reference documents on

LC development planning, design

and implementation.

Formulated and recommended LC

development standards, policies and

implementing rules and regulations

(IRRs) on the promotion and

incorporation of EE & RE

applications in city/town, province

and district development planning

and implementation for inclusion in

the national energy policy (NEP).

Formulated and recommended

policies on sustainable energy

supply and utilization services for

inclusion in the NEP

Approved and enforced revised

NEP that include LC development

GEFTF 541,170 2,707,500

PROJECT IDENTIFICATION FORM (PIF) PROJECT TYPE: Full-sized Project

TYPE OF TRUST FUND: GEF Trust Fund

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policies and strategies

Approved and enforced LC

development standards, policies,

and IRRs in cities/towns, provinces

and districts.

Approved and budgeted follow-up

plan for the evaluation and potential

enhancement of LC development

planning and strategies in

cities/towns, provinces and districts.

Completed assessment of applicable

institutional mechanisms for the

effective implementation of LC

development standards, policies,

and IRRs, including strategies and

initiatives

Formulated and recommended

institutional framework for the

implementation of LC development

standards, policies, and IRRs,

including institutional mechanisms

that integrate LC development with

the socio-economic, climate change

and disaster management objectives

of the country

Completed performance evaluation of

the adopted institutional mechanisms,

and implemented enhancements of

the institutional framework.

2. Renewable

Energy &

Energy

Efficiency

Technologies

Applications

TA Enhanced

technical

viability and

capacity in the

application of

energy

efficiency

technologies

and

development of

feasible RE-

based energy

systems

(electricity and

non-electricity

production) in

the country.

Completed evaluation of applicable

and feasible LC technologies (EE &

RE) in PNG, including identified

and prioritized LC energy projects

Documented energy performance and

impact reports on implemented

demos; including action plan for

community-supported LC energy

initiatives in highland and outer

island communities.

Completed capacity development

program for the national, provincial

and district government authorities

and local community leaders on the

planning and evaluation of LC

development projects

Completed design and

implementation plans for the

replication of demonstrated LC

energy projects

GEFTF 541,000 2,705,400

Inv Increased

installed

capacity of RE-

based energy

systems

(electricity and

Completed designs and

implementation plans for the

demonstration of the commercial

applications of EE and RE

technologies that promote and

support LC development in the

GEFTF 1,076,100 8,047,200


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non-electricity

production) and

implementation

of viable energy

efficiency

technology

applications in

the country.

cities/towns, provinces and districts

of the country

Operational LC development

technology application

demonstrations in pilot communities

Completed EE and RE projects

financed either through the financing

scheme established by the project; or

by private sector investments

3. Financing of

Renewable

Energy and

Energy

Efficiency

Projects

TA Improved

availability of,

and access to,

financing for

renewable

energy and

energy

efficiency

initiatives in the

energy

generation and

energy end-use

sectors

Completed evaluation of existing

financing schemes for development

projects (government, private sector,

and regional/international)

Completed design and development

of feasible financing models and

schemes to facilitate financing of LC

development projects

Completed capacity building for the

existing banks (government and

private sector) on financing

residential/commercial EE and RE

projects

Established and operational financing

scheme for LC development projects

Completed technical assistance

services to financing scheme

applicants

Completed evaluation of suggested

enhanced financing policies for

supporting initiatives on low carbon

development.

GEFTF 270,500 1,622,800

4. Energy

Development

& Utilization

Awareness

Enhancement

TA Improved

awareness and

attitude towards

renewable

energy and

energy

efficiency

applications in

the energy

generation and

energy end-use

sectors.

Completed and fully evaluated LC

development (EE and RE)

promotional campaigns and

workshops in target districts in

selected provinces

Completed promotional workshops

and/or activities to disseminate

information on sustainable EE &

RE technology applications and to

enhance awareness and knowledge

on LC development


for local authorities on the

sustainable application of EE and

RE technologies, techniques and

practices in support of sustainable

LC development


for the energy sector in the energy

efficient operation and maintenance

of LC energy systems and RE-based

power generation systems

Established information network for

the promotion and dissemination of

GEFTF 276,600 1,217,100


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knowledge on LC development

within and outside of the country

Enhanced energy supply and

consumption monitoring and

reporting system in the country.

Sub-Total

2,705,370 16,300,000

Project Management Cost 135,270 811,000

Total Project Cost 2,840,640 17,111,000

C. INDICATIVE SOURCES OF CO-FINANCING FOR THE PROJECT BY NAME AND BY TYPE, IF AVAILABLE

Sources of Co-

financing Name of Co-financier

Type of

Co-

financing

Amount ($)

National Government PNG Power Limited Cash 15,769,000

National Government Office of Climate Change & Development Cash 146,00

Local Government Eastern Highlands Provincial Government Cash 1,096,000

Private Sector Bank of South Pacific Cash TBD

GEF Agency United Nations Development Programme Cash 100,000

Total Co-financing 17,111,000

D. Indicative Trust Fund Resources Requested by Agency(ies), Country(ies) and the Programming of Funds: N.A.

E. Project Preparation Grant (PPG)1

Is Project Preparation Grant requested? Yes /No If no, skip item E.

PPG AMOUNT REQUESTED BY AGENCY(IES), TRUST FUND, COUNTRY(IES) AND THE PROGRAMMING

OF FUNDS

Project Preparation Grant amount requested: $ 100,000 PPG Agency Fee: $ 9,500

GEF

Agency

Trust

Fund

Country/

Regional/Global Focal Area

Programming

of Funds

(in $)

PPG (a) Agency

Fee2 (b)

Total

c = a + b

UNDP GEFTF Papua New Guinea Climate Change GEF-6 STAR 100,000 9,500 109,500

Total PPG Amount 100,000 9,500 109,500

F. PROJECT’S TARGET CONTRIBUTIONS TO GLOBAL ENVIRONMENTAL BENEFITS3

Corporate Results Replenishment Targets Project Targets

1. 4. Support to transformational shifts towards a

low-emission and resilient development

path

750 million tons of CO2e mitigated (include both

direct and indirect)

4,795 kilotons CO2e

1 PPG requested amount is determined by the size of the GEF Project Financing (PF) as follows: Up to $50k for PF up to$2m

(for MSP); up to $100k for PF up to $3m; $150k for PF up to $6m; $200k for PF up to $10m; and $300k for PF above $10m. On

an exceptional basis, PPG amount may differ upon detailed discussion and justification with the GEFSEC. 2 PPG fee percentage follows the percentage of the Agency fee over the GEF Project Financing amount requested. 3 Provide those indicator values in this table to the extent applicable to your proposed project. Progress in programming against

these targets for the projects per the Corporate Results Framework in the GEF-6 Programming Directions, will be aggregated

and reported during mid-term and at the conclusion of the replenishment period. There is no need to complete this table for

climate adaptation projects financed solely through LDCF and/or SCCF.

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PART II: PROJECT JUSTIFICATION

1.0. Project Description

1.1. Global Environmental Problems, Root Causes and Barriers

Papua New Guinea (PNG) is the largest country in the South Pacific both in land area and population. It

is comprised of around 600 islands, and, 22 provinces in four regions (Southern, Highland, Momase and

Island regions). The country is endowed with natural resources, as well as energy resources (renewable

and non-renewable), the exploitation of which help bring in foreign direct investments into the country.

PNG’s economy has been growing in recent years, and the country believes that this increase in economic

growth can be sustained through the development of traditional sectors like agriculture, mining and

forestry and newer ones like natural gas, services and tourism. Economic growth has increased from 2–

3% to 6–7% over the last decade, driven by high commodity prices and rapid growth in the construction,

telecoms and tourism sectors. But in spite of its natural wealth and increasing economic growth, the

nation faces enormous challenges to human development and service delivery, especially in rural areas.

Nonetheless, as set out in its Vision 20504, the country is committed to developing a thriving economy, a

fair and happy society and a sustainable environment.

The current growth path set out at 7% while realistic is a carbon-intensive one. Greenhouse gas (GHG)

emissions would continue to increase, by up to 32% by 2030 if the current economic activities are to

continue at its present rate. The current Land Use, Land-Use Change and Forestry (LULUCF) emissions

are estimated at 80–97 Mtons CO2e annually, and this accounts for 95% of PNG’s current GHG

emissions. This is mainly due to deforestation and forest degradation: timber extraction, smallholder

agriculture (expansion into forest and shortening of rotation cycle) and commercial agriculture (especially

palm oil plantations). Under a BAU scenario, all of these will continue to represent the bulk of the

country’s GHG emissions by 2030, despite representing less than 20% of total economic value added.

The GHG emissions from other sources (non-LULUCF emissions) that make up the remaining 5% of

PNG’s GHG emissions are expected to increase from 2.5–3.5 Mtons CO2e in 2010 to 10–14 Mtons CO2e

by 20305. These GHG emissions are from the following:

Energy sector - Total GHG emissions are projected to increase significantly from 0.3–0.5 to 1.4–2.0

Mtons CO2e in 2030, mainly due to the country’s expected economic growth

Transportation sector – Total GHG emissions are expected to increase from 1.6–2.4 to 3.3–4.5 Mtons

CO2e by 2030, mainly due to increasing wealth, population growth and ongoing road construction

and rehabilitation.

Oil & Gas sector – Total GHG emissions are forecast to increase from 0.4–0.6 to 5.3–7.5 Mtons CO2e

by 2030, mainly due to the LNG facility operations that involve among others, the upstream

production process and gas flaring

Other sectors such as agriculture (direct emissions, excluding land use change), industry and

buildings, collectively accounts for less than 1% of the country’s total GHG emissions). However this

is projected to grow in the future considering the increasing growth rate of population and

development in the country complemented by the production and sale of the country’s LNG.

4 The Government’s PNG Vision 2050 sets the overall direction for Papua New Guinea to attain the nation’s dream to be a

‘smart, wise, fair, healthy and happy society’ and one of the top 50 economies in the world by year 2050. 5 The 10-14 Mtons CO2e range by 2030 is based on the National Climate Compatible Development Management Policy, Office

of Climate Change and Development, Papua New Guinea. Trend analysis of annual historical data on CO2 emissions from the

URL http://data.worldbank.org/country/papua-new-guinea, results in a range of 10-16 Mtons CO2e by 2030.

http://data.worldbank.org/country/papua-new-guinea


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In the Vision 2050, the Papua New Guinea Government notes the economy can make a significant

contribution to reducing GHG emissions with good forest management and through the development of

its renewable energy resources. Since the LULUCF sector accounts for the bulk of the country’s GHG

emissions, the country is currently working with the UNDP on the implementation of initiatives aimed at

reducing emissions from deforestation and forest degradation and increasing forest carbon stocks. These

are mainly regarding the country’s REDD+ programme initiatives. There are actually numerous

technically feasible, cost-effective options for LULUCF emissions abatement and sequestration in PNG,

and for every cause of deforestation and forest degradation, there are multiple abatement options that can

be considered, including full abatement by stopping an ongoing activity that results in LULUCF

emissions, or partial abatement by reducing the carbon intensity of the activity through sustainable forest

management practices.

For the non-forestry sectors, the forecast GHG emissions can be reduced by approximately 20%, i.e., ~2.2

Mtons CO2e in 2030 compared to a BAU scenario. Most of these will be from the energy sector; about

half the abatement potential would be due to carbon neutral energy sector at largely negative abatement

costs. A carbon neutral energy sector will also reduce indirect emissions from the manufacturing and

service sectors as these sectors would rely on cleaner generation of energy.

Currently, the country is a net energy exporter. About 65% of refined petroleum products in the country

are consumed locally for different end-uses in the industrial and transport sectors, as well as for electricity

generation. The remaining 35% is exported overseas. Oil and natural gas constitute most of the share in

the total primary energy supply of the country. The demand for oil is concentrated in the industrial sector,

followed by electricity and transport. All of the natural gas produced in the country is exported overseas.

RE resources are abundant in the country and their technical potential is enormous. But many of these

resources are in remote locations with limited demand, and are not readily exploitable.

RE Resource Remarks Geothermal Potential is about 21.92 TWh/year6; Current installed capacity is 52.8 MW.

Hydropower Potential is about 15,000 MW; Current installed capacity < 230 MW7.

Ocean Thermal Energy

Conversion (OPPL) Very limited knowledge of potential (also for tidal energy or wave energy).

Wind energy No estimates yet; Wind mapping activities currently underway.

Solar energy

Papua New Guinea has huge potential for solar energy utilization, with an estimated

potential of 1,244 TWh/year. Government funding for village solar PV power

generation systems carried out by PPL and OCCD.

Biomass energy8

Main practical biomass energy potential is in logging and agricultural areas, using

either the crop output or residues. Some palm oil mills are utilizing oil processing waste

as fuel, the same as what is being done in sugar mills.

Biogas Energy

Few palm oil mill are utilizing the palm oil mill waste to generate biogas energy to

power their operations. New Britain Palm Oil Limited (NBPOL) has installed 3 MW9

methane biogas power plant in its palm oil mill. Others such as Hargy Oil Palm Limited

are also planning to adopt similar technologies to generate electricity from its palm oil

mill wastewater treatment.

6 APEC Energy Demand and Supply Outlook – 5th Edition, Papua New Guinea. 7 ADB PNG Power Sector Development Plan Final Report (2009) 8 Regarding liquid biofuels, there is huge potential in the country but there is limited knowledge of the actual quantities produced

and used. Some institutions have already taken on board biofuel research and are using biofuel to demonstrate its result in

vehicles. Institutions such as the Pacific Adventist University recently launched its biofuel products made from Used Vegetable

Oil (UVO) in early 2015 and Madang Provincial Government had announced that it will be using coconut biofuel produced from

a biofuel plant in Karkar Island to run its vehicles. 9 NBPOL has installed two 1.5 MW methane biogas power plant in its Mosa and Kumbango palm oil mills respectively to

support its operation and facilities. It is understood that excess electricity from the two methane biogas power plants are currently

being sold to PPL Kimbe grid.


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In its Copenhagen Accord response of 2 February 2010, PNG stated it was seeking to “decrease GHG

emissions at least 50% before 2030 while becoming carbon neutral before 2050”, subject to certain

conditions (UNFCCC, 2010). The country can make great strides towards its stated objective of becoming

carbon neutral by 2050 if it takes full advantage of technically achievable abatement and sequestration

opportunities10.

In 2010, the PNG Government announced the Development Strategic Plan 2010–2030, which has five

guiding principles adopted from the National Constitution —one of which is ‘natural resources and

environment’. Also in that same year the government announced its Vision 2050, which has seven pillars,

one of which is ‘Environmental Sustainability and Climate Change’, and the Medium Term Development

Plan (MTDP) 2011–2015 (DNPM, 2010b), which among others focus on increasing access to electricity

for all households in the economy. A key strategic objective on this is to provide access to electricity to at

least 70% of households by 2030 (DNPM, 2010a). Comprehensive analysis of the cost effectiveness of

various alternative sources of electricity has been planned and is now underway. A newly approved

Electricity Industry Policy has opened up the electricity generation aspect to interested private sector

electric power project developers and investors to invest in the country’s electricity sector, which used to

be the domain of the state-owned PNG Power Ltd (PPL), a fully integrated power authority that used to

be responsible for the generation, transmission, distribution and retailing of electricity in PNG. Despite

the country’s endeavor to achieve its set target for GHG emission reduction, there are a number of

barriers that are hindering the country’s efforts.

Policy, Regulatory and Institutional Barriers: There is no national energy policy (NEP), which should

embody the aspirations and plans of PNG in the area of energy development and utilization, in support to

the country’s sustainable economic development and of the country’s climate change mitigation targets.

The absence of a NEP is a significant issue that needs to be addressed to enable the actions that would

motivate interest in developing and sustaining the energy sector. Among these are: (a) Unclear energy

regulatory framework; (b) Lack of clear and appropriate policies on energy development and utilization11;

and, (c) Inadequate enforcement of existing energy-related policies and strategies, inclusive of the

supporting rules/guidance and legislations/regulations. Under the current Electricity Industry Policy, the

participation of local and foreign investors in the country’s electrification program has been allowed, and

there are now at least 4 power purchase agreements (PPAs) for power projects in the country.

Nonetheless, there are still problems associated with conflicting policies in the energy sector that can

discourage private sector (local and/or foreign) capital in sustainable energy projects in the country. There

is also the problem of lack of in-house capacity in the government, particularly in the Department of

Petroleum and Energy (DPE) on energy policy making and planning. Moreover, there are many entities in

GoPNG that are involved in the energy sector of the country12. The Independent Consumer and

Competition Commission (ICCC) is the only national regulatory body that acts as a consumer and

business watchdog. It regulates all businesses in PNG, including the government, where it engages in

trade, and that includes PPL. However, under the new Electricity Industry Policy, the technical regulatory

function has been transferred from PPL and now rests with DPE. The GoPNG sees that there may be a

cause of conflict of interest for PPL to regulate itself in this manner. The majority of the responsibility for

power sector planning, among others, currently rests with PPL. There is little interaction among the

entities involved in energy in terms of data sharing or cross-checking, with the result that it is very

difficult to create an accurate picture of the sector needed to regulate the sector effectively and understand

10 Carbon neutral means that emission from all sectors should be compensated by carbon enhancement through

afforestation/reforestation and carbon protection from forest conservation. The LULUCF sector in particular can make a

substantial contribution, reducing emissions by up to 70% by 2030 compared with a BAU scenario. 11 The National Energy Plan that states the target of achieve 70% electrification for the country by 2030. 12 Instead of only one single institution that look after the energy industry in the country (e.g., Ministry/Department of Energy),

there are others, not directly under the supervision of that one institution that looks after energy (e.g., ICCC, PPL, DPE).


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the opportunities for improvement. As a result of these, there is lack of support from national and

provincial governments on RE and EE initiatives at all levels of government including communities.

Technical Barriers: The main barrier is the lack of collective technical capacity in the country to identify,

prioritize and plan, design, engineer, implement, operate and maintain RE-based energy systems that are

essential for sustainable development. Currently, there is some technical and engineering capacity in the

country to carry out infrastructure projects (e.g., oil and gas sector). However, this is not always (or even

not at all) be available for deployment for RE-based energy system (electricity and non-electricity

purposes) projects. Because of this, the country is not fully benefitting from its indigenous RE resources

which can significantly contribute to sustainable development, particularly improved energy supply and

efficient energy consumption and environmental quality improvement. In general, there is poor

knowledge of available EE and RE technologies and how these will be appropriately applied, and there is

also very limited knowledge of the country’ RE resources and their potentials. The private sector

technical capacity in the design, engineering and implementation of EE and RE technology application

projects is limited. The private sector technical capacity in the design, engineering and implementation of

EE and RE technology application projects is limited. These problems are seen as stemming from the

limited support from the government for increasing local technical knowledge on EE and RE technologies

and their applications. The national electricity utility, PPL, is a key source of technical expertise in the

energy sector but it also needs to enhance technical capacity on the network and supply aspects of the

country’s electricity sector. Enhancing the private sector’s technical capacity in these areas will facilitate

its involvement in the development and implementation of EE projects in the energy end use sectors of

the country, and in RE-based power generation projects.

Financial and Market Barriers: In PNG, most of the EE and RE initiatives are from the government or

from the donor agencies. Many of the installed RE-based power generation projects in the country are

funded through bilateral and multi-lateral donor funds. There are very limited initiatives by the general

public and the private sector to implement EE and RE projects. The development and implementation of

RE and EE (or even the practice of EE) among the general public is often hampered by their limited: (1)

knowledge of planning, designing and implementing it; and, (2) financing it. Financial support for EE and

RE initiatives is generally lacking from the government and private sector (banks/financial institutions).

Aside from the absence of cohesive EE and RE policies that can encourage end-users to venture to EE

and RE initiatives, there are also no financial incentives for the implementation of projects on the

application of EE and/or RE technologies. The financial sector in the country is also generally not

interested in these initiatives, since such projects are often viewed as risky investments (mainly due to

high initial costs of EE/RE technologies, and the absence of concrete government policies on EE and RE

applications). There are also market-related barriers that contributes to this main financial barrier such as:

(a) limited financial resources in rural communities; (b) small market size in places where there are

available RE resources; (c) absence of commercially available EE/RE equipment in the local market; (d)

dispersed load and market centers for RE-based energy systems; and, (e) lack of productive demand for

electricity in rural areas.

RE & EE Awareness Barriers: There have been many projects on EE and RE that were implemented in

the past and most of these have included information dissemination and awareness raising activities. The

GoPNG has also advocated for the application of RE technologies and EE techniques and practices.

However, the impact in terms of the attitude of the general public as well as with the national and local

government authorities, have not significantly changed. Widespread application and practice of RE and

EE initiatives still remains much to be desired in the country. In general, the level of awareness of EE and

RE technologies and techniques (i.e., what are these, how are these implemented; and what are the

benefits from these) is low. The level of knowledge of applying EE & RE technologies is likewise low,

and so is the knowledge of opportunities and obstacles to the application RE technologies for productive

and social uses. This is further exacerbated by the limited training available from the government and


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learning institutions in the country on EE/RE technologies, inadequate information about the magnitude

and availability of available RE resources, and lack of information about energy annual production,

supply, and distribution and consumption in the country.

1.2. Baseline Scenario and Associated Baseline Projects

PNG is already doing great strides in reducing the bulk of its GHG emissions, which are mainly from

LULUCF, through its REDD+ program. Tackling the remaining GHG emissions (i.e., from non-LULUCF

sources) is mainly through the reduction of fossil-based energy utilization and this is currently being done

through energy efficiency and renewable energy initiatives. The baseline projects (ongoing and planned)

on renewable energy and energy efficiency in the country include:

Baseline

Project Brief Description Implementer

ADB Power

Development

Project

Objective: Improvement of socio-economic conditions of targeted urban

and peri-urban areas by bringing in improved utilization of reliable,

clean power. Among the major components of the project are: (a)

Installation or upgrading power generation capacity, including those that

are renewable energy-based; (b) Installation of transmission and

distribution systems; and, (c) Capacity building for PPL and project

beneficiaries.

PNG Power

Limited

ADB Town

Electrification

Investment

Program (TEIP)

Objective: Improving socio-economic outcomes of populations in

targeted provincial centers in PNG. Among the major project

components are: (a) Construction and operation of 6 hydropower plants

for PPL; (b) Construction of transmission lines that will be operated by

PPL to connect provincial centers to generation sources; and, (c)

capacity building for PPL and project beneficiaries.

PNG Power

Limited

WB - PNG

Energy

Development

Project

The components of the project include: (a) Institutional and Policy

Development for RE and Rural Electrification, focusing on policy

development (RE and Rural Electrification), institutional and strategy

development, and capacity strengthening for the GOPNG’s role in the

development of electrification projects that may be considered in the

medium and the long term; and (b) Technical Assistance for Preparation

and Planning for Port Moresby Hydropower Supply, which focus on the

Naoro Brown hydropower project (70-80 MW) to supply the Port

Moresby grid, and in improving PNG Power’s planning with respect to

hydropower supply for Port Moresby.

Department of

Petroleum and

Energy (DPE) and

PNG Power

Limited (PPL)

WB - RE

Resource

Mapping

Initiative

Focus is on RE resource mapping and geospatial planning, including

ground-based data collection, data analysis, GIS mapping, strategic

environmental assessment, and policy integration, and in the production

of high quality atlas outputs for all types of RE resources.

Department of

Petroleum &

Energy and PNG

Power Limited

NZAid –

Energy Access

Improvement

Improvement in energy access for 4,500 rural households and businesses

along transmission corridors (Divune Hydropower, Ramazon

Hydropower, and Kimbe-Bialia Transmission line)

PNG Power

Limited

Eastern

Highlands

Provincial

Government

Solar & Wind

Farm Projects

Eastern Highlands Province Solar and Wind Farm Projects. These

energy project is part of a ward development plan which constitutes

district and provincial plan. It falls under the Eastern Highlands Province

Green Province development agenda. Initial feasibility studies has been

carried out by OCCD to Pilot community solar farm projects in several

communities in Eastern Highlands Province, namely Kwongi 2 village in

Daulo district, Ivingoi village in Okapa district and Wonenara Station in

Obura-Wonenara district in Eastern Highlands Province.

Eastern Highlands

Provincial

Government

District/Province

RE projects

Selected provinces and districts that make use of their support

improvement program funds for the installation of RE-based power

District/Province

Governments


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supported by

DSIP/PSIP

generation facilities to either displace or supplement diesel-based power

generation.

Yonki Toe of

Dam (TOD)

Power Station

Project

Construction of an 18 MW Power Station built to modern standards to

support the existing 120 MW Ramu Grid.

PNG Power

Limited

The abovementioned baseline projects/activities in the areas of RE and EE are mainly on the electricity

sector (supply side mainly). There are provinces/districts that make use of their support infrastructure

program funds to finance the implementation of RE-based power generation projects. Also, there were

some possible activities on EE on the demand side as influenced by the now completed ADB Promoting

Energy Efficiency in the Pacific (PEEP) project but these are all on electricity use, nothing much on the

utilization of other energy forms. With the current strategy on the awareness raising and information

dissemination, the current rather low level of public awareness of cost-effective RE technology

applications not only for electrical energy purposes, and the idea of rational use of energy and using

renewable energy will continue as in the past. It is forecast that with the current initiatives, the growth in

CO2 emissions from the use of fossil fuels will grow by about 2.8 to 5.5% each year. This is about 8.0 to

10.9 Mtons/year. Since the generation and consumption of energy is the major non-LULUCF source of

GHG emissions in the country, not paying attention to this will result in non-achievement of the country’s

aspiration to reduce non-LULUCF GHG emissions. This may even persists for a much longer period of

time if the current strategy (and lack of appropriate support policies) would remain as the primary feature

of capacity building, awareness raising, and information/data generation and dissemination. The

opportunities to contribute to the realization of the 50% GHG emission reduction by 203013; and for

reducing GHG emissions while improving the energy access to about 90% of the people of PNG that live

in non-electrified areas, will just be lost if only these baseline projects/activities will be implemented. The

realization of significant GHG emission reduction through the implementation of applicable and feasible

RE technologies and EE measures, techniques and practices in support of the socio-economic

development of the country will not be realized if an alternative development path that will achieve the

national GHG emission reduction target will not be taken and facilitated.

1.3. Alternative Scenario

The objective of the proposed GEF project is the enabling of the application of feasible renewable energy

and energy efficiency technologies for achieving greenhouse gas emission reduction in PNG. This is with

the view of enhancing the realization of non-LULUCF GHG emissions in the country. A comprehensive

evaluation of the set GHG emission reduction target (for non-LULUCF sources) will be done in

conjunction with the setting of EE and RE targets under the NEP. That evaluation is to confirm the

current target or if necessary come up with a more realistic level of target considering the current situation

in the energy sector, and of the national economy, the ongoing and planned initiatives in the country (by

the government, donor agencies, private sector, etc.), and what can potentially be done to enhance the

utilization of feasible RE resources and application of EE technologies that will support economic

development in PNG. The facilitation or enabling objective is meant to address, i.e., eliminate the

identified barriers to the cost-effective application of RE technologies using the country’s indigenous RE

resources, as well in the effective and extensive application of EE measures and techniques that are also

in line with low carbon development and involved in the sustainable development in the country. In this

regard, a barrier removal approach will be applied for this project. With the assistance of the GEF, the

proposed project will facilitate the application of appropriate technological, institutional and policy-

oriented options that would enable the widespread application of RE and EE technologies for supporting

the sustainable development of all communities particularly in the highlands and outer islands. This

13 The national target is achievement of carbon neutral status by 2050 (Office of Climate Change & Development).


11

would involve making use, in a rational and cost-effective manner, of available RE and non-RE resources

to ensure socio-economic growth that contributes to increased climatic resilience, productivity and

income generation of the citizens, and GHG emission reduction. The baseline activities of the country

will only achieve a portion of the non-LULUCF GHG emission reduction target. Incremental activities

have to be carried out to reach the target. The combination of the baseline and incremental activities will

bring about the realization of the alternative scenario which features the realization of the targets. The

proposed project will bring about this alternative scenario.

The project focus is on the enhanced utilization of feasible RE resources and optimal and efficient

utilization of energy for supporting of socio-economic development, to contribute to the realization of the

country’s energy targets. This will cover the following:

1. Formulation and advocacy work to lobby support for the approval and effective enforcement of the

national energy policy including the support policies, regulations and projects on the application of

EE and RE technologies in the energy generation and energy end-use sectors in the country;

2. Establishment and building of capacity of an official institutional framework and mechanism for the

regulation of the energy sector and enforcement of energy policies and regulations that among others,

support RE and EE applications, and facilitate low carbon development;

3. Demonstration14 of more community-based application EE and RE technologies, as well as integrated

energy planning and policy implementation, including the design and implementation of energy-

related aspects of low carbon development;

4. Improving the availability/access to financial resources (local and foreign) for financing RE and EE

projects, including the development of financing schemes and other financial instruments.

5. Design and implementation of an improved advocacy and promotional program to improve awareness

and attitude towards EE and RE applications in the GOPNG and the PNG society and citizenry.

Component 1: Energy Policy and Institutional Framework Development – This component will address

the policy and institutional barriers that hinder the widespread application of low carbon development

initiatives in PNG. With the successful completion of the activities that will deliver the expected outputs

under this component the expected outcome would be the implementation of approved national energy

policy (NEP), and enforcement of supportive policies, rules and regulations on low carbon (LC)

development that includes the application of EE & RE in energy generation and energy-end use sectors.

The indicative activities that will deliver the expected outputs include the following: (1) Conduct of

policy research, analysis and assessment on LC development and implementation mechanisms; (2)

Development and dissemination of guides and reference documents on LC development planning, design

and implementation; (3) Formulation and recommendation of appropriate LC development standards,

policies and implementing rules and regulations (IRRs) on the promotion and incorporation of EE & RE

applications in city/town, province and district development planning and implementation for inclusion in

the national energy policy (NEP); (4) Formulation and recommendation of policies on sustainable energy

supply and utilization services for inclusion in the NEP; (5) Revision of the NEP; (6) Promotion and

lobbying for approval and enforcement of the revised NEP that include LC development policies and

strategies; (6) Promotion and lobbying for the approval and enforcement of LC development standards,

policies, and IRRs in the development planning of cities/towns, provinces and districts; (7) Preparation

and promotion for the approval and budget allocation of the follow-up plan for the evaluation and

potential enhancement of LC development planning and strategies in cities/towns, provinces and districts;

14 Based on suggestions made in previous EE&RE projects in the country, as well as findings from the UNDP-GEF mission

conducted in March 2015, the potential demonstrations could include: (1) Application of the integrated energy planning

techniques for the benefit of the DPE; (2) Application of feasible community-based RE energy systems for productive uses and

household energy needs; (3) Application of EE technologies selected energy-end use sectors such a public utilities, buildings, and

in the transport sector; (4) Design, engineering and financing of feasible RE and EE technologies; and, (5) Piloting of specific

policies and strategies for the application of RE and EE techniques, measures and practices.


12

(8) Assessment of applicable institutional mechanisms for the effective implementation of LC

development standards, policies, and IRRs, including strategies and initiatives; (9) Formulation and

recommendation of the institutional framework for the implementation of LC development standards,

policies, and IRRs, including institutional mechanisms that integrate LC development with the socio-

economic, climate change and disaster management objectives of the country; and, (10) Conduct of

performance evaluation of the adopted institutional mechanisms, and implemented enhancements of the

institutional framework.

Component 2: Renewable Energy & Energy Efficiency Technologies Applications – The barriers

concerning the technical viability and capacity of low carbon development, in general, and the application

of EE & RE technologies, in particular, will be addressed under this project component. The delivery of

the expected outputs under this component would bring about 2 expected outcomes: (a) enhanced

technical viability and capacity in the application of energy efficiency technologies and development of

feasible RE-based energy systems (electricity and non-electricity production) in the country; and, (b)

increased installed capacity of RE-based energy systems (electricity and non-electricity production) and

implementation of viable energy efficiency technology applications in the country. To deliver these

outputs the following indicative activities will be carried out: (1) Evaluation of applicable and feasible LC

technologies (EE & RE) in PNG; (2) Identification and prioritization of LC energy projects; (3)

Evaluation of energy performance and impacts of implemented demos; (4) Preparation of action plan for

LC energy initiatives in highland and outer island communities; (5) Design and implementation of a

capacity development program for the national, provincial and district government authorities and local

community leaders on the planning and evaluation of LC energy projects; (7) Design and implementation

plans for the replication of demonstrated LC energy projects; (8) Preparation of design and

implementation plans for the demonstration of the commercial applications of EE and RE technologies

that promote and support LC development in the cities/towns, provinces and districts of the country; (9)

Implementation of LC development technology application demonstrations in pilot communities; (10)

Implementation of EE and RE projects that are financed either through the financing scheme established

by the project; or by private sector investments.

Component 3: Financing of Renewable Energy and Energy Efficiency Projects – The financial barriers

related to the financing of EE & RE projects will be addressed under this project component. The

expected outcome from the delivery of the expected outputs from the activities that will be conducted is

improved availability of, and access to, financing for EE & RE initiatives in the energy generation and

energy end-use sectors. The following indicative activities are expected to deliver the outputs: (1)

Evaluation of existing financing schemes for development projects (government, private sector, and

regional/international); (2) Preparation of feasible financing models and schemes to facilitate financing of

LC development projects by local banks; (3) Design and conduct of a capacity building program for the

existing banks (government and private sector) on financing residential/commercial EE and RE projects;

(4) Establishment and operation of a designed financing scheme for LC development projects either

through the national/provincial government(s) or in partnership with a local commercial bank; (5)

Provision of technical assistance services to financing scheme applicants; and, (6) Evaluation of

suggested enhanced financing policies for supporting initiatives on low carbon development.

Component 4: Energy Development & Utilization Awareness Enhancement – This project component is

intended to address the barriers related to the level of knowledge and understanding in the country about

energy development and utilization. With the delivery of the expected outputs from this project

component, the expected outcome is improved awareness and attitude towards EE & RE applications in

the energy generation and energy end-use sectors in support of LC development. To deliver these outputs,

the following activities will be carried out: Design implementation and evaluation of LC development

(EE and RE) promotional campaigns and workshops in target districts in selected provinces; (2)

Organization and conduct of promotional workshops and/or activities to disseminate information on


13

sustainable EE & RE technology applications and to enhance awareness and knowledge on LC

development; (3) Design and implementation of a capacity development course for local authorities on

the sustainable application of EE and RE technologies, techniques and practices in support of sustainable

LC development; (4) Design and conduct of a capacity development program for the energy sector in the

energy efficient operation and maintenance of LC energy systems and RE-based power generation

systems; (5) Establishment of an information network for the promotion and dissemination of knowledge

on LC development within and outside of the country; and, (6) Design and implementation of an

enhanced energy supply and consumption monitoring and reporting system in the country.

With the removal of barriers and the facilitation of the sustained enabling environments, it is expected

that the annual growth rate of non-forest GHG emissions (mainly from the fossil fuel combustion) in the

country would be reduced to about 1.3%. This translates to an annual CO2 emissions of 6.0 to 6.5 Mtons.

1.4. Incremental Cost Reasoning

Since the proposed GEF project will be focus on the non-LULUCF GHG emissions of the country, its

main focus will be on the energy generation and energy end-use sectors. The proposed GEF project will

work alongside work being done by the GoPNG in reducing GHG emissions from the LULUCF sector,

which accounts for 95% of PNG’s GHG emissions. It will build on the ongoing and planned projects and

activities of the GoPNG towards the realization of the GHG emission reduction target of the country,

particularly in the energy generation. While the ongoing and planned initiatives of the country, as outlined

in various uncoordinated projects and those of other partnership programs with donor agencies in the

Pacific, will contribute to the achievement of the target, these baseline projects/programs are still limited

to enable the country to achieve its climate change mitigation targets. With just these, the full potential for

the use of the country’s indigenous RE resources, potential for energy and energy cost savings, clean

energy and low carbon technology applications, and associated local benefits (e.g., improved energy

services, increased income generation activities, etc.), and GHG emission reductions from the energy

generation and energy end use sectors will not be realized.

The envisioned GEF project will endeavor to enhance the baseline initiatives of the country including

added features that will facilitate the enhanced utilization of the country’s RE resources, as well as

improved energy efficiency features (practices, techniques and technologies). The facilitation and

enabling of the application of RE and EE technologies/techniques and low carbon development will be

done through the removal of barriers associated with the low level of enforcement of policies, regulations

and institutional mechanisms, limited capacity and knowledge about the application, design, financing

and operation of RE and EE initiatives of both the public and private sectors of the country. Most of the

incremental activities of the project are the barrier removal activities that the project will carry out

particularly those that the country will not be, or presently does not have the capacity for, addressing

these barriers. Incremental support activities are necessary to facilitate the demonstrations and piloting of

the processes and procedures involved in integrated energy planning, application of the energy-saving

techniques and technologies that will encourage the major stakeholders in the various energy end use

sectors to embrace, and support these. Without the incremental barrier removal and enabling activities the

achievement of the anticipated alternative scenario in the energy end use sectors in PNG will not be

realized. More importantly, incremental activities to establish and enforce policy and regulatory

frameworks that are supportive (through effective institutional arrangements, financial/fiscal incentives,

information sharing, etc.) will be necessary to sustain the replication of RE, EE and low carbon initiatives

in all energy consuming sectors of the country, particularly in the electricity generation sector. The

substantial sustainable development benefits that result from the application of such initiatives will not be

achieved if the barriers that the GEF can help eliminate will not happen.

1.5. Global Environmental Benefits


14

The proposed project is also within the context of sustainable development in PNG particularly in the

rural areas of provincial and district centers. In that regard, it will bring about local benefits mainly

through contributions to: (1) improvement of the living conditions of rural citizens in the highland areas

and in the outer islands and allows them to contribute more productively to the economy; (2) protection of

the natural environment; (3) improvement in the welfare and well-being of women and children, (4)

diversification of the resource base of the economy; and, (5) improvement in the country’s foreign

exchange reserves due to reductions in petroleum products import bill that will be brought about by

substitution of fossil energy generation by indigenous RE resources.

Although relatively smaller in magnitude compared to that from the REDD+ program, the global

environmental benefits of the proposed GEF project would mainly come from GHG emission reductions

from fossil fuel displacement by RE resources in electricity generation, and in the improvement of the

specific energy consumption of each energy end use sectors in PNG through improved energy utilization

efficiency. The GHG emission reductions would come from: (1) Direct emission reductions from

completed RE-based power generation initiatives that the project will facilitate and enable, as well as

from the EE technology application demonstrations and replications; and, (2) Indirect emission reductions

from follow-up RE and EE technology application projects in the country as influenced by this proposed

GEF project.

Comparing the forecast energy consumption trend in the baseline scenario from the expected energy

consumption trend that will be facilitated by the proposed GEF project, an average % annual energy

savings of about 20% during the period 2017-2030 can be realized with the GEF project. The GEF project

is expected to be implemented during the 4 year period from 2017 to 2020. Throughout the project’s 4

year implementation period, annual incremental energy savings would be realized corresponding to an

average annual incremental CO2 emission reduction of about 1.0 Mtons CO2. It is estimated that 25% of

the incremental CO2 emission reductions can be attributable to the proposed project, and that would

translate to about 1,000 ktons of avoided CO2 emissions. Compared to other approaches (e.g., individual

efforts by energy consumers on EE and RE applications) to achieve GHG emission reductions from non-

forest sectors, the barrier removal approach that this proposed project will employ will be more cost

effective. Considering the synergistic aspect of the key stakeholders working in an integrated manner and

the higher chances of scaling-up/replication whatever low carbon development techniques/practices will

be introduced, demonstrated, and promoted under the project.

1.6. Innovation, sustainability and potential for scaling up.

Innovation: A programmatic approach of planning and implementing community-based application EE

and RE technologies, integrated energy planning and policy implementation, and the design and

implementation of low carbon development is the main innovative feature of the proposed project, which

is unlike the current initiatives that are focus more on the construction of RE-based power generation

units to be operated by PPL. Another innovative feature is the facilitation of the reforming of the

institutional framework and mechanism for the regulation of the energy sector and enforcement of energy

policies and regulations that support RE and EE applications, and low carbon development.

Sustainability: Since the creation of the relevant enabling conditions (e.g., supportive policy/regulatory

frameworks and institutional mechanisms to facilitate the widespread application of EE & RE

technologies) is part and parcel of the proposed project, this will help ensure sustainability of the

frameworks and mechanisms that will be established. Towards the end of the project lifetime, a suitable

follow-up action plan will be developed for approval and enforcement to further ensure sustainability of

these enabling environments, the appropriate actions to ensure sustainability of the policies, regulations,


15

and institutional frameworks that will be established and enforced/implemented will be determined during

the project preparation stage of this proposed project.

Potential for Scaling-up: The demonstration of the application of such technologies/techniques that will

be among the interventions that will be carried out can be replicated in the outer islands where the

communities are keen in improving their energy security. Furthermore, best practices that will come out

from the interventions that will be carried out in the project can also be shared with other PICs and SIDS

with similar circumstances as PNG.

2. Stakeholders: Will project design include the participation of relevant stakeholders from civil society

and indigenous people? (Yes /No ) If yes, identify key stakeholders and briefly describe how they

will be engaged in project design/preparation:

The main stakeholders of this project are the Department of Petroleum & Electricity (DPE) and the PNG

Power Limited (PPL). The other stakeholders are those involved in public works and infrastructures,

transport, private industries and banks/financial institutions.

Stakeholder Roles and Responsibilities in Project Preparation

Office of Climate Change and

Development (OCCD)

Responsible for communication and coordination with office of the GEF OFP and

UNDP on the PIF development; liaison with National, Provincial and local level

governments; in-charge of project development management.

Department of Petroleum and

Electricity

Provision of assistance in the identification and design of demonstrations for the

promotion of EE and RE technology applications in electrical and fossil fuel

systems.

PNG Power Limited (PPL)

Provision of assistance in the identification and design of demonstrations for the

promotion of EE and RE technology applications in electrical systems

Provincial and Local Level

Governments.

Responsible for the coordination, communication and provision of data for the

design of project activities in selected rural communities in the highlands and outer

islands, liaison with village/community authorities in the design and

implementation arrangements for the community-based RE/EE technology

application demonstrations

NGO, Social community and

the other social/civic groups

Provision of assistance in the identification and analysis of barriers to the

application of RE/EE in village/community development. Provision of advice in the

design of the barrier removal activities of the project.

District Authorities and

Organizations

(village/community

authorities and households)

Provision of assistance in the identification and analysis of barriers to the

application of RE/EE in village development. Provision of advice in the design of

the barrier removal activities of the project.

Assistance in the organization, design and preparation of the relevant activities in

the project demonstration and replication activities.

Provision of advice on the gender-sensitive design of capacity development

activities of the project, including the involvement of women in the implementation

of demonstration activities, where feasible.

3. Gender Considerations: Are gender considerations taken into account? (Yes /No ). If yes,

briefly describe how gender considerations will be mainstreamed into project preparation, taken into

account the differences, needs, roles and priorities of men and women.

The involvement of women working in both management and technical departments of the PNG

Government agencies/institutions who can play important roles in the design, development and

implementation of the proposed UNDP-GEF project will be part and parcel of the project design strategy.

This is also the opportunity for the country to further enhance the role of women in deployment of low

carbon technologies and mitigation options, and come up with gender-sensitive policies in the energy


16

sector and the energy end-use sectors of the country will be done, recognizing the possible contributions

of women in the management and implementation of climate change mitigation measures. Furthermore,

the design and preparation of this project will take into account the contributions, impacts and benefits of

community based EE and RE technology applications, including children and indigenous people.

4. Risk: Indicate risks, including climate change, potential social and environmental risks that might

prevent the project objectives from being achieved, and, if possible, propose measures that address these

risks to be further developed during the project design (table format acceptable):

During the project implementation, the risks that might prevent the project objectives from being

achieved are listed as follows:

Risk Level of

Risk Mitigation Actions

1. The country lacks local

capacity (particularly in

provinces/districts) to

implement the project activities

Medium

The project proponents (including the design and implementation

teams) will coordinate with the management teams of ongoing

projects (UNDP and non-UNDP) in the country to take advantage

of potential synergies in the management of the project

implementation. The UNDP country office (and the UNDP-GEF

EITT Team in Bangkok) can also support the GOPNG on this if

requested.

2. Prompt and adequate support

from local communities that

will be involved in community-

based RE system demos may

not be forthcoming in a timely

manner.

Low

A capable project team comprised of competent local and

international experts will be established by the OCCD. The

OCCD’s good working relationship with local communities will

be put to good use to actively promote the implementation of this

project, and ensure the support of the local communities. The

DPE and PPL will be supported by other entities in the execution

of this project particularly in the coordination of the

demonstration activities with the project partners.

3. Environmental and socio-

cultural issues may delay or

potentially stop the

implementation of demo

activities in rural communities.

The design of the demonstration activities that will be carried out

in rural communities will seriously take into account all the

necessary legal, environmental (e.g., EIAs) and socio-cultural

requirements. These aspects will be taken into account in the

design, planning and implementation of the project demos/pilots.

4. Committed level of co-

financing for specific project

activities may not be fully

realized or not be forthcoming

in a timely manner.

Medium

The project team shall secure government assurance of co-

funding prior to project launching. During project

implementation, the project team will closely monitor and ensure

the timely availability of co-financing from project partners and

co-financers.

5. Approval and enforcement of

formulated policies, rules and

regulations by the relevant

GOPNG agencies are not

forthcoming or are delayed.

Low

Advocacy and lobbying activities will form part of the project

activities to ensure adequate support from the national and local

government legislative bodies on the adoption of the formulated

policies and regulations. UNDP-PNG assistance to facilitate this

shall be provided if necessary.

6. The outcomes and benefits

derived from the project

implementation activities will

not be fully sustained.

Medium

Among the project activities is the development of a sustainable

follow-up plan. Such plan will be advocated by the project team

to secure approval (and funding). Such plan will be useful for the

replication of the demonstrated applicable and feasible EE & RE

technologies in the highland and the outer island communities.

7. The implementation of the

project activities will be

affected by natural disasters,

and potential adverse climate

change/variability events.

Medium

For the installation/construction of the systems involved in the

demo activities, proper engineering and construction design and

construction that ensure the structural integrity and climate

resilience of the installations will be adequately followed and

applied. This will be done in the design and implementation of


17

major EE/RE activities that will involve procurement,

design/engineering, installation and operation of EE & RE

technology system installations15.

8. Change in national/local

government administration will

negatively impact on the

government support for project

Medium

Community leaders and other local government departments

involved in the project will monitor political dynamics and will

try to resolve any misunderstanding within the project. In

anticipation of this potential risk, the project team will start

raising the project profile and advocate for project benefits right

from the outset, and involve key national and local stakeholders

and decision makers during the project design stage.

9. Prohibitive transport costs

will affect/limit access to outer

islands where some of the demo

activities will be carried out.

Low

Proper coordination and planning by the relevant government

departments and other ongoing UNDP and/or non-UNDP

supported projects in carrying out joint outer island missions.

The overall risk of this proposed project is medium.

5. Coordination: Outline the coordination with other relevant GEF-financed and other initiatives:

Part of the work on the design and development of this project is identifying and understanding all GEF

and non-GEF funded projects that are related to the proposed project. The coordination work will be

mainly for the purpose of exploring and possibly making use of potential synergies; for ensuring

complementarities and building on best practices and lessons learned; and for potential sharing of project

resources particularly on transport costs for trips to the country’s outer islands. Among these projects are:

Planned and implemented RE projects of some district/provincial governments funded through

district/provincial support improvement program funds.

All DPE ongoing and planned activities on EE and RE – Since the DPE is one of the implementing

partners, the project development team (PDT) will coordinate with them to determine how these

activities (mainly on energy policy development and coordination) can be utilized as baseline

activities of the proposed GEF-project.

All PPL ongoing and planned projects on EE and RE – The PPL is also one of the implementing

partner and they will coordinate with the PDT on how their projects will be utilized as baseline

activities of the proposed GEF-project.

The establishment of links with other implementers of related ongoing projects/programs is expected to

help in identifying the relevant activities that will build on their respective achievements. The UNDP

Country Office in Port Moresby, PNG will be fully involved in the project development through its

participation in the various stakeholder and co-financing consultation meetings and technical workshops

during project development, and in the multipartite review meetings.

6. Consistency with National Priorities. Is the project consistent with the National strategies and plans

or reports and assessments under relevant conventions? (Yes / No ). If yes, which ones and how:

NAPAs, NAPs, ASGM NAPs, MIAs, NBSAPs, NCs, TNAs, NCSAs, NIPs, PRSPs, NPFE, BURs, etc.

The proposed project is consistent with PNG’s ongoing effort to finalize and implement a National

Energy Plan (NEP). It is also in line with the country’s Second National Communications to the

UNFCCC, particularly in specific actions and policies related to EE and RE applications in supporting

economic and social development. Specifically, the project is in accord with the country’s National

15 The design of the systems that will be installed will be based on what the WB, ADB and other donors have required for their projects. The same standards/requirements that were specified in such projects particularly on the earthquake and typhoon conditions will be applied.


18

Climate Compatible Development Management Policy that aims to achieve the following targets: (1) 50%

GHG emissions reduction by 2030; and, (2) carbon neutrality by 2050. The proposed project is fully

consistent with PNG’s national strategies and will contribute to the achievement of the national energy

saving and climate change mitigation targets. The project will also build on the National Electrification

Rollout Plan (which aim for 70% electrification by 2030), and the Electricity Industry Policy of 2011.

7. Knowledge Management: Outline the knowledge management approach for the project, including, if

any, plans for the project to learn from other relevant projects and initiatives, to assess and document in

a user-friendly form, and share these experiences and expertise with relevant stakeholders.

Considering the current capacity of the country in designing and implementing EE and RE projects, the

knowledge management system that will be employed in the project will consists of the conduct of

training courses for pertinent personnel in the energy and utilities sector, as well as those in the outer

island communities. There will be special mentoring sessions for specific group of staff who will be

carrying out the operations and maintenance of the various demo/pilot installations that are part of the

project. These mentored staff will form the cadre of in-house experts in the PPL and DPE. Under this

project, an information network will be established and operationalized for the promotion and

dissemination of knowledge on low carbon development within and outside of the country. Moreover, as

part of the design, establishment and operationalization of an energy supply and consumption monitoring

and reporting, database development and maintenance will be carried out. This aspect of knowledge

management, which involve the drawing on of information from a wide variety of sources, will be

implemented, not only for the purpose of the country’s energy planning but also to achieve an organized

usage of knowledge about the energy situation in the country.


19

PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND

GEF AGENCY(IES)

A. RECORD OF ENDORSEMENT16 OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE

GOVERNMENT(S):

NAME POSITION MINISTRY DATE

Gunther Joko GEF Operational Focal Point Conservation & Environment Protection

Authority 6 May 2015

B. GEF AGENCY(IES) CERTIFICATION

This request has been prepared in accordance with GEF policies17 and procedures and meets the GEF

criteria for project identification and preparation under GEF-6.

Agency

Coordinator,

Agency name

Signature Date Project Contact Person Telephone Email

Adriana Dinu

UNDP/GEF

Executive

Coordinator.

Manuel L. Soriano

Sr. Technical Advisor

Energy, Infrastructure,

Transport & Technology

+66-2-304-

9100 Ext 2720

manuel.soriano

@undp.org

C. ADDITIONAL GEF PROJECT AGENCY CERTIFICATION (Applicable Only to newly accredited GEF

Project Agencies): N.A.

16 For regional and/or global projects in which participating countries are identified, OFP endorsement letters from these countries are required

even though there may not be a STAR allocation associated with the project. 17 GEF policies encompass all managed trust funds, namely: GEFTF, LDCF, and SCCF

project identification form (pif)...gef-6 pif template-january 2015 5 part ii: project justification...

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