request for CEO ENDORSEMENT Project Type: Full-sized Project Type of Trust Fund: GEF Trust Fund For more information about GEF, visit part i: project information Project Title: Green Urban Lighting Country(ies): Armenia GEF Project ID: 4742 GEF Agency(ies): UNDP GEF Agency Project ID: 4669 Other Executing Partner(s): Ministry of Nature Protection of the Republic of Armenia, Ministry of Energy and Natural Resources of the Republic of Armenia, Municipalities of Yerevan and other cities Submission Date: Re-submission Date: June 2013 August 2013 GEF Focal Area (s): Climate Change Project Duration (Months) 48 Name of Parent Program (if applicable): For SFM/REDD+ For SGP N/A Agency Fee ($): 160,000 Focal Area Objectives Expected FA Outcomes Expected FA Outputs Trust Fund Grant Amount ($) Cofinancing ($) CCM-2 Outcome 2.1 Appropriate policy, legal and regulatory frameworks adopted and enforced Countries adopting EE policies and initiatives GEF TF 550,000 600,000 Outcome 2.2 Sustainable financing and delivery mechanisms established and operational Investment mobilized for energy efficiency GEF TF 1,050,000 7,895,000 Total project costs 1,600,000 8,495,000 Project Framework Project Objective: To remove barriers to energy-efficient lighting in the cities of Armenia, by means of technical assessment, facilitation of financing, and development and implementation of municipal programs and national policy Project Component Grant Type Expected Outcomes Expected Outputs Trust Fund Grant Amount ($) Confirmed Cofinancing ($) 1. Knowledge and capacities for urban green lighting TA Municipal authorities in Yerevan and other cities have reliable information about urban lighting use and costs, are aware of energy saving potential and familiar with green lighting technologies and solutions. Lighting specialists and 1.1 Completed audits of at least ten public lighting systems. 1.2 Completed study tour to GEF Public Lighting project in Central Europe (100% co-financed). 1.3 Completed technical training and capacity building on lighting for 248,000 350,000 efficient
savings and avoided replacement costs. Electricity price = US $0.0664/kWh. The cost-effectiveness of the project is expected to be even greater in its technical assistance components, where components use the powerful leverage of municipal and national policy as well as public and/or private co-financing to achieve results on a large scale in both public and residential sectors. Assuming implementation of the modest IL phase-out, the project on the whole would achieve avoided CO2 emissions at a rate of approximately US $2.40 of GEF funds per ton. C. describe the budgeted m &e plan: Table C.1: M&E Budget Type of M&E activity Responsible Parties Budget US$ (excluding project team and UNDP staff time) Time frame Inception Workshop (IW) and Report Project Manager supported by an International Expert UNDP Armenia UNDP-GEF Regional Technical Advisor (RTA) 5,000 Within first two-three months of project start up Measurement of Means of Verification for Project Purpose Indicators: GHG emission monitoring (baseline and results) in-line with GEF/STAF methodology UNDP-GEF RTA Project Manager GHG monitoring expert 10,000 Start, mid and end of project Measurement of Means of Verification for Project Progress and Performance (measured on an annual basis) Oversight by Project RTA and Project Manager Project Team None Annually prior to APR/PIR APR/ PIR Project Manager and Team UNDP Armenia UNDP-GEF RTA None Annually Project Board Meetings Project Coordinator UNDP Armenia None Following Project IW and subsequently at least once a year Periodic status reports Project Manager and team None Quarterly Mid-term External Evaluation Project Manager UNDP Armenia UNDP-GEF RTA External Consultants (i.e. evaluation team) 20,000 At the mid-point of project implementation. Final External Evaluation Project Manager UNDP Armenia UNDP-GEF RTA 20,000 At least three months before the end of project implementation Terminal Lessons Learnt Report Project Manager UNDP Armenia National Experts None At least one month before the end of the project Audit UNDP Armenia Project Manager and team 6,000 ($2,000 average per year, except for 1st year) Annually Visits to field sites (UNDP staff travel costs to be UNDP Armenia UNDP-GEF Regional For GEF supported projects, paid from IA fees and Annually
ANNEX A: PROJECT RESULTS FRAMEWORK Project Strategy Objectively Verifiable Indicators Goal To save energy and to reduce emissions of greenhouse gases by increasing energy efficiency of lighting in Armenia Indicator Baseline End-of-project target Sources of verification Risks and assumptions Objective: To remove barriers to energy-efficient lighting in the cities of Armenia, by means of technical assessment, facilitation of financing, and development and implementation of municipal programs and national policy Quantity of energy saved and GHG emissions avoided 40 GWh of electricity consumed for street lighting in 2011, accounting for about 16,000 tonnes of CO2 emissions 550 GWh consumed for residential lighting in 2011, accounting for about 220,000 tonnes of CO2 emissions Direct energy savings of 1.4 GWh per year from demonstration projects (560 tonnes of CO2) Indirect energy savings of 20 GWh per year from replication of demonstration projects via municipal programs (8000 tonnes of CO2) Indirect energy savings of 125 GWh per year from implementation of national lighting policy (50,000 tonnes of CO2). Direct energy savings and savings from municipal programs: meter readings and power company invoices Savings from national policy: calculations based on regulatory requirements, data from national agencies and suppliers on import and other market indicators Achievement of targets depends on adoption and timely implementation of municipal programs and national policies, which in turn require sufficient political will and financing. Outcome 1: Municipal energy audits and technical Audits, training, and capacity-building activities prepare municipal agencies and lighting companies to implement EE lighting programs effectively. Number of municipal energy audits conducted Comprehensive energy audits are not part of normal practice for public lighting in Armenia At least 10 comprehensive audits of public lighting completed in Yerevan and other cities. Completed audit documentation Number of specialists and agency representatives trained on lighting No specialized training on EE lighting is offered in Armenia Training on EE lighting delivered to specialists and agency representatives in Yerevan and at least 10 other cities Training materials, participant rosters, summaries of proceedings
Outcome 2: Demonstration projects Pilot projects yield energy savings, raising the confidence and capacity of investors and decision-makers about EE lighting Efficiency and energy savings of installed EE lighting Share of LED in demonstration projects Various levels for existing types of lighting – baseline technologies include older 250W HPS lamps, 400W lamps, incandescents and fluorescent tubes. (Baselines to be updated during the inception period.) At least five demonstration projects completed, covering various technologies including LEDs, and various applications including both street lighting and buildings Direct energy savings of 1.4 GWh per year 100% LED for new outdoor and indoor lighting 5% LED for outdoor lighting retrofits Field verification, metering, and other documentation Fulfillment of the target will depend on planning, financing, and implementation according to strict timetables agreed upon by the project and its partners.
Outcome 3: Replication via municipal lighting programs and associated financial instruments Municipal lighting programs lead to widespread deployment of EE lighting and associated energy savings Adoption and financing of municipal programs for EE public lighting Energy savings from these programs Financial commitments for energy-efficient municipal lighting Municipal programs for EE public lighting are desired but not comprehensively designed, financed, or implemented Municipality of Yerevan develops and approves program for upgrades of municipal lighting, with secured financing Similar programs are developed for at least five other cities of Armenia Savings of 20 GWh per year from municipal lighting programs US $10 million for municipal lighting secured Official documentation of adoption of programs and financing agreements. Adoption of municipal programs requires sufficient funds from municipal budgets and/or public and private sources of financing Outcome 4: National policies, codes, and standards on lighting New national policies mandate significantly greater energy efficiency and ensure product quality for lighting, particularly in residential buildings Adoption and entry into force of phase-out of conventional incandescent lighting Adoption and implementation of other needed policies to promote EE lighting in various areas, including codes, standards, and procurement rules Conventional incandescent lighting is available without restrictions and constitutes 85 percent of residential lighting in Armenia A national phase-out of conventional incandescent lighting is adopted and enters into force Lamps with at least 25 percent greater luminous efficacy replace conventional incandescents according to the timetables of the adopted phase-out Other adopted policies and standards support the phase-out Official documentation of adopted legislation, standards, or other state policy and regulations. Adoption of national policy requires sufficient political will and addressing of stakeholder concerns about lighting quality, cost to consumers, and mercury containment.