ACRONYMS APR ATLAS Annual Project Review UN Budgeting and financial reporting program AWP BCNS BEEC BEEP BTOR CDC CH4 CHP Annual Work Plan Building Codes Norms and Standards Building Energy Efficiency Center (of MUST) Building Energy Efficiency Project (prior UNDP GEF project that was Implemented in Mongolia from 2009 to 2013) Back To Office Report Construction Development Center (of MCUD) Methane Combined Heat and Power (power plants) CO Country Office of
NPC National Project Coordinator NPD OECD National Project Director Organisation of Economic Cooperation and Development PAC Project Advisory Committee PIF PIMS Project Identification Form Project Information Management System (of UNDP) PIR PMC Project Implementation Reports Project Management Cost PMU Project Management Unit PPG PPP Project Preparatory Grant Purchasing Power Parity PPR Project Progress Reports PSC QPR RCU RE Project Steering Committee Quarterly Progress Report Regional Coordination Unit (of UNDP, for Mongolia the relevant Asia-Pacific RCU is based in Bangkok) Renewable Energy RTA SBAA SNC TE Regional Technical Advisor (of the UNDP Asia-Pacific Region) Standard Basic Assistance Agreement (for UN operations in a particular country) Second National Communication (to the UNFCCC) Terminal Evaluation tCO2e TOR Ton of carbon dioxide equivalent Terms Of Reference UAC Unit Abatement Cost UNDAF United Nations Development Action Framework UNDP UNEP United Nations Development Programme UN Environment Programme UNFCCC UN Framework Convention on Climate Change USD or US$ VAT US Dollar Value Added Tax SITUATION ANALYSIS Context and Global Significance Country background After the economic reforms during the late 1990’s, Mongolia has been one of the fastest growing economies in the past decade, riding on the back of large stock of resources and immense Foreign Direct Investment (FDI) inflows to the mining sector. Real Gross Domestic Product (GDP) growth averaged 9% over the past decade, and per capita income had more than quadrupled, to over $4,000. Mining accounts directly for 20% of the economy, while the total share, including indirect impacts, is likely much higher— mineral exports account for over 40% of GDP. The economic reforms have also stimulated rapid growth in the construction sector as well as in the energy consumption pattern. Throughout
Expected Outcomes Expected Outputs Activities Outcome 3: Effective climate change mitigation policies strengthened by NAMA impacts ascertained through the established MRV system Output 3.1: Defined key indicators (GHG and to be monitored for the selected mitigation actions • Activity 3.1.1: Conduct in-depth assessment to determine key indicators and metrics for construction sector NAMA • Activity 3.1.2: Establish monitoring framework and define key parameters for demonstration projects to be measured, monitored, recorded and updated on the web-based inventory system in Outcome 1 Output 3.2: Developed and implemented accurate MRV system for the construction sector NAMA • Activity 3.2.1: Review best practices in MRV methodologies and guidelines based on established CDM methodologies, IPCC and UNFCCC NAMA guidelines and principles • Activity 3.2.2: Develop MRV standards and methodologies to measure, report and verify GHG and non-GHG indicators • Activity 3.2.3: Implement the MRV activities for the NAMA in prioritized and pilot demonstrations Output 3.3: Designed and completed capacity development in the implementation and institutionalization of the MRV system • Activity 3.3.1: Commission need assessment and design of capacity development programs for MRV practitioners • Activity 3.3.2: Execute capacity development trainings for MRV practitioners • Activity 3.3.3: Design and conduct a post training evaluation survey of the trainees • Activity 3.3.4: Prepare communication and knowledge products highlighting the results of the MRV Output 3.1: Defined key indicators (GHG and non-GHG) to monitor for the selected mitigation action
Number of public and private sector entities supporting the sustainable operation of the GHG inventory system by EOP 3 Number of prioritized NAMA in the construction sector developed and funded for the implementation by the project by EOP 1 Number of individual EE interventions that constitute the construction sector NAMAs by Year 4 4 Number of identified fully capable and qualified private and/or public sector entities that are interested in funding prioritized NAMA projects by Year 4 3 Number of MRV systems for construction sector emissions set up and operational by Year 2 1 Number of institutions adopting and operationalizing MRV systems of the pilot NAMA, by 2nd Quarter Year 3 2 Number of construction sector NAMA case studies using the approved MRV framework and incorporated in policy documents by EOP 3 Risks Risks identified in the implementation of the Project are summarized in Table 15. The overall risk is considered moderate. Assumptions The main assumptions of this Project are the: Continued strong government support policy on NAMA in construction sector. Interest remains strong in reduction of air pollution in winter among energy consumers / building sector as it has impacts on their health. Willingness of construction sector to comply with the building code. Table 15: Summary of Project Risks Description Rating Mitigation measures Policy measures are not in place to fully implement NAMAs Moderate The project will be implemented jointly with the MEGDT, one of the four mainstream policy making Ministries that hosts the Climate Change Coordination Office. Furthermore, establishment of multi-stakeholder task forces will be ensured with representations from Government entities, academia and NGOs by decree of high-level Government bodies, in order to support of relevant regulatory mechanisms for NAMA. Ineffective coordination that leads to overlaps and lost Low The project will focus on strengthening overall coordination capacity of the Climate Change Coordination Office. Regular coordination meetings with key stakeholders will be supported in order to enable a discussion platform, establish a close working relationship and avoid duplication
PROJECT RESULTS FRAMEWORK Section II: Project Results Framework This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: Improved sustainability of natural resources management and resilience of ecosystems and vulnerable populations to the changing climate. Country Programme Outcome Indicators: Change in energy intensity of economy and greenhouse gas emissions per capita. Primary applicable Key Environment and Sustainable Development Key Result Area: 1. Mainstreaming environment and energy Applicable GEF Strategic Objective and Program: GEF-5Climate Change Objective 2: Promote Market Transformation in Industry and the Buildings Sector Applicable GEF Expected Outcomes: a) Appropriate policy, legal and regulatory frameworks adopted and enforced b) Sustainable financing and delivery mechanisms established and operational c) GHG emissions avoided Applicable GEF Outcome Indicators: a) EE policies and regulations are adopted and enforced b) Volume of investment mobilized c) Number of EE projects d) Tonnes of CO2 equivalent avoided Strategy Indicator Baseline Targets Source of Verification Assumptions GOAL: Reduced GHG emissions in the construction sector Cumulative CO2 emissions reduced from start of project to (EOP), (tCO2e) Cumulative heat and electrical energy savings due to the Project by EOP, MWh 2,014 3,521 10,709 18,722 Project final and M&E report Reports published by MCUD and other relevant government agencies Reports published by project partners (e.g. Industry/Professional Associations, Building Managements and Developers) Commitment to EE in the construction sector by the government remains firm. Participation of and private sectors in the project remains strong
Economic growth improved or at least remains constant OBJECTIVE: To facilitate market transformation for energy efficiency in the construction sector through the development and implementation of NAMA Number of construction sector NAMA developed and implemented by EOP % of new buildings that are fully or beyond BCNS compliance by EOP Number of people gainfully employed on EE in the construction sector in Mongolia by EOP 0 80% 0 1 100% 50 Project final and M&E reports Reports published by MCUD and other relevant government agencies Pilot demonstration project reports Reports published by project partners (e.g. Industry/Professional Associations, Building Managements and Developers) Commitment to EE in the building sector by the government remains firm. Economic growth improved or at least remains constant COMPONENT 1: Establishment of Baseline Energy Consumption and GHG Emission in the Construction Sector OUTCOME 1: Effective EE policy making informed by robust energy consumption monitoring and reference baselines for the construction sector Number of energy consumption and GHG emission inventory systems operational and adopted for the construction sector NAMA by Year 3 0 1 Project final and M&E reports Reports published by MCUD, MEGDT, MOE and other relevant government agencies Local stakeholder support in collecting and utilizing the energy consumption and GHG inventory system remain firm Number of MOU to operationalize the data collection frameworks for the energy consumption and GHG inventory system by EOP 0 1 Number of public and private sector entities supporting the sustainable operation of the GHG inventory system by EOP 0 4 COMPONENT 2: Development and Implementation of NAMA in the Construction Sector OUTCOME 2: Number of prioritized NAMA in the construction sector developed and 0 1 Project final and M&E reports Commitments of demonstration
Prioritized NAMA in the construction sector developed and funded for implementation funded for the implementation by the project by EOP Pilot demonstration project reports project hosts remain strong Economic growth improved or at least remains constant No. of individual EE interventions that constitute the construction sector NAMAs by Year 4 1 6 No. of identified fully capable and qualified private and/or public sector entities that are interested in funding prioritized NAMA projects by Year 4 1 3 COMPONENT 3: Measurement, Reporting and Verification (MRV) system for NAMA OUTCOME 3: Effective climate change mitigation policies strengthened by NAMA impacts ascertained through the established MRV system MRV system for construction sector emissions set up and operational by Year 2 0 1 Project final and M&E reports Pilot demonstration project reports Reports published by project partners (e.g. Industry/Professional Associations, Building Managements and Developers) Commitments of demonstration project hosts remain strong Economic growth improved or at least remains constant No of institutions adopting and operationalizing MRV systems of the pilot NAMA, by 2nd Quarter Year 3 0 2 Number of construction sector NAMA case studies using the approved MRV framework and incorporated in policy documents by EOP 0 3
Measurement of Means of Verification for Project Progress on output and implementation Oversight by Project Manager Project team To be determined as part of the Annual Work Plan's preparation. Annually prior to ARR/PIR and to the definition of annual work plans ARR/PIR Project manager and team UNDP CO UNDP RTA UNDP GEF Directorate None Annually Periodic status/ progress reports Project manager and team None Quarterly Final Evaluation Project manager and team, UNDP CO UNDP RCU External Consultants (i.e. evaluation team) Indicative cost : 30,000 At least three months before the end of project implementation Project Terminal Report Project manager and team UNDP CO local consultant 0 At least three months before the end of the project Audit UNDP CO Project manager and team Indicative cost per year: 3000 One per program cycle and additional audit if any based on the adjusted risk rating Visits to field sites UNDP CO UNDP RCU (as appropriate) Government representatives For GEF supported projects, paid from IA fees and operational budget Yearly TOTAL indicative COST Excluding project team staff time and UNDP staff and travel expenses US$ 54,000 (+/- 5% of total budget) Audit Clause: The Government will provide the Resident Representative with certified periodic financial statements. The required Audit of financial statements relating to the status of UNDP (including GEF) funds will be conducted according to UNDP financial regulations, rules and audit policies by the legally recognized auditor, or by a commercial auditor engaged by the UNDP. LEGAL CONTEXT This Project Document shall be the instrument referred to as such in Article I of the Standard Basic Assistance Agreement between the Government of Mongolia and the United Nations Development Program, signed by the parties on 21 March 1978. The host country-implementing agency shall, for the purpose of the Standard Basic Assistance Agreement, refer to the government co-operating agency described in that Agreement. Consistent with the Article III of the SBAA, the responsibility for the safety and security of the implementing partner and its personnel and property, and of UNDP's property in the
Annex II: Risk Analysis OFFLINE RISK LOG Project Title: Nationally Appropriate Mitigation Actions in the Construction Sector in Mongolia Project ID: Date: # Description Date Identified Type Impact & Probability Countermeasures / Management Response Owner Submitted, updated by Last Update Status (compared with previous evaluation) 1 Policy measures are not in place to fully implement NAMAs Policy P = 1 I = 4 The project will be implemented jointly with the MEGDT, the lead Ministry for climate change policy and responsible for development of the National Communication and other ministries MCUD for the construction sector and MOE for the energy sector. Furthermore, establishment with task forces will be ensured with representations from government entities, academia, and NGOS by decree of high-level government bodies, in order to support setting up of relevant regulatory mechanism. Project manager Submitted by Project Proponent, updated by Project Manager 2 The construction sector may not support the idea of implementing CCM measures either on their own or through the NAMA process Market P= 2 I = 5 The project will facilitate public private dialogues and engage the private sector early on to solicit their perspectives and needs for low carbon development. Project manager Submitted by Project Proponent, updated by Project Manager