Mid-Term Review for the Project – “Green Energy Small & Medium Enterprises (SMEs) Development Project in Tajikistan”

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Evaluation Plan:
2016-2022, Tajikistan
Evaluation Type:
Mid Term Project
Planned End Date:
03/2021
Completion Date:
05/2021
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
30,000

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Download document 1. TOR_international_Annex 3 MTR.pdf tor English 292.96 KB Posted 947
Download document 2. Tracking Tool_PIMS5476 TAJ Green Energy CCM.xlsx related-document English 52.62 KB Posted 856
Download document 3. Inception Report MTR.pdf related-document English 1406.55 KB Posted 1846
Download document 4. Management_response_MTR_Green_SMEs_Project.pdf related-document English 229.82 KB Posted 834
Download document 5. 2021 Co-financing table UNDP Green Energy MTR_25062021.xlsx related-document English 12.94 KB Posted 860
Download document Final MTR Green SMEs Project_29052021.pdf report English 2278.49 KB Posted 935
Title Mid-Term Review for the Project – “Green Energy Small & Medium Enterprises (SMEs) Development Project in Tajikistan”
Atlas Project Number: 00097769
Evaluation Plan: 2016-2022, Tajikistan
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 05/2021
Planned End Date: 03/2021
Management Response: Yes
Focus Area:
  • 1. Energy
  • 2. Others
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.5.1 Solutions adopted to achieve universal access to clean, affordable and sustainable energy
SDG Goal
  • Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all
SDG Target
  • 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services
Evaluation Budget(US $): 30,000
Source of Funding: GEF
Evaluation Expenditure(US $): 26,356
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Nationality
Matthew Addison International Consultant
Shukhrat Igamberdyev Local Consultant
GEF Evaluation: Yes
GEF Project Title: Green Energy Small & Medium Enterprises (SMEs) Development Project in Tajikistan
Evaluation Type: Mid-term Review
Focal Area: Biodiversity
Project Type: EA
GEF Phase: GEF-1
GEF Project ID: 9191
PIMS Number: 5476
Key Stakeholders: Ministry of Energy and Water Resources, Pamir Energy
Countries: TAJIKISTAN
Lessons
Findings
Recommendations
1

Extend the project by 18 months to account for the pressures of COVID-19 and poor design, if and only if, the recommendations below are followed

2

Focus urgent procurement assistance to extend the ICTA contract with more in-time spent in country (consider about 100 days in country per year) and hire a new PM

3

Sign the Letter of Agreement (LoA) with the Ministry of Energy and Water resources so that work on Outcome 1 can begin

 

4

Conclude an agreement with the MoEWR for the project’s participation in the Pamir Energy World Bank grant for rural electrification

5

Change the project structure with a strengthened project team (and greater involvement of the ICTA to make it more effective

Extracts from MTR report: 

The ICTA needs to have a more direct role in the management and supervision of the project recognizing the labour force characteristics, the current salary and the urgent needs of the project. Several problems have occurred because the PM did not follow technical guidance of the ICTA. Moreover, an ICTA will generally have more in-depth management and technical experience than the PM. The ICTA contract modality should accommodate more frequent involvement in-country, with focused deliverables (beyond only consulting and advising) as opposed to current contract terms. The ICTA needs to have more time in country (normally 3 weeks for each trip). Note that this may require a change in the contractual relationship of the ICTA. We use this as a term to denote someone of the current ICTA’s experience and education which is much greater than that required for the PM. This term is not meant to imply any form of contractual relationship. The determination of the contractual vehicle is beyond the scope of the MTR 

In addition to this change, the project needs to routinely access local technical talent to support the ICTA and PM. There is a budget for local technical expertise but so far, the PM did not take advantage of this. The revised organisation structure also includes a Knowledge Management team recognizing the importance of this team in achieving the overall project objective and in successfully replicating demonstrations in Outcomes 2 and 3.

6

Develop better work planning tools including detailed life of project and annual work plans, and a strategy for how to meet the project targets. Revise and use the indicator monitoring plan as a management tool

7

Develop a communications strategy and plan – demonstrate, document, and disseminate project results

 

8

Drop the focus on SME RESCOs and pilots

 

9

Make changes in Outcome 2: (1) hold a roundtable among MFIs, GE suppliers, and Project staff to fully understand the market conditions and where they need assistance to achieve project objectives; (2) conduct a rapid market assessment; (3) develop financial products based on 1 and 2; (4) reducing the number of participating MFIs to three; (5), opening up activities to all Green Energy products that are financially feasible, and, (6) developing a market assessment before implementing 
 

 

10

ICTA to consider revising the design of the financial support mechanism, revise and adjust some of the project log frame indicators and aggregate a few targets

 

11

Consider command and control measures including demand-side management in project activities since the price of electricity is so far below the actual cost. Working with MoEWR and PE, focus policy and regulations to require some EE measures or to mandate SWH under specific conditions 

 

12

Consider teaming with OSCE on a limited mini-grid effort to expand the number of people and communities reach through RESCOs and increase the MW served by the project while establishing a model for community-based electricity supply 

Extract from MTR report: 

OSCE has explored several communities in Khatlon that will not be connected to the grid in the next five years. Each of these communities has some form of existing, albeit degraded, power system. A community-based mini-grid as OSCE envision would be one form of RESCO and each community has different capabilities and resources to contribute. 

Once the project has successfully concluded its agreement on the PE/World Bank Activity, it will have reached many of its main targets and have resources left over. The project might consider programming some of those into the OSCE mini-grid concept. The project would not normally consider these projects because they are high per-unit cost of the person served and given the project’s limited budget, efforts here would not be cost-effective unless the project had already reached its targets. The only model that stands a chance of working and being sustainable is the community-based model

 

1. Recommendation:

Extend the project by 18 months to account for the pressures of COVID-19 and poor design, if and only if, the recommendations below are followed

Management Response: [Added: 2021/06/25]

Recommendation is accepted

Key Actions:

Key Action Responsible DueDate Status Comments Documents
1.1. Preparation of request for Project no-cost extension by 18 months
[Added: 2021/06/25] [Last Updated: 2021/12/30]
PM, CTA 2022/11 Initiated We have been in touch with our Regional Programme Associate at IRH in this regard and were advised to wait on the NCE, since it can be made 6 months prior to the operational closure of the project. 5476-Green Energy SMEs Development project will be operationally closed in May 15, 2023. So that means, the request should be done at Nov-Dec of 2022. In order to make this process effective, we have initiated budget review and revision process to assess project priorities in line with MTR recommendations and ensure that there are enough funds for all operational expenses throughout the life of the project, including the recommended extension period. The results of the budget review clearly showed that there are enough funds for the project’s no cost extension. History
1.2. UNDP Resident Representative's approval of project extension
[Added: 2021/06/29] [Last Updated: 2021/12/30]
PM, TL 2022/11 Initiated We have been in touch with our Regional Programme Associate at IRH in this regard and were advised to wait on the NCE, since it can be made 6 months prior to the operational closure of the project. 5476-Green Energy SMEs Development project will be operationally closed in May 15, 2023. So that means, the request should be done at Nov-Dec of 2022. In order to make this process effective, we have initiated budget review and revision process to assess project priorities in line with MTR recommendations and ensure that there are enough funds for all operational expenses throughout the life of the project, including the recommended extension period. The results of the budget review clearly showed that there are enough funds for the project’s no cost extension. History
1.3. Submission of Request to UNDP IRH and then to UNDP-GEF HQ for approval
[Added: 2021/06/29] [Last Updated: 2021/12/30]
PM, TL 2022/11 Initiated We have been in touch with our Regional Programme Associate at IRH in this regard and were advised to wait on the NCE, since it can be made 6 months prior to the operational closure of the project. 5476-Green Energy SMEs Development project will be operationally closed in May 15, 2023. So that means, the request should be done at Nov-Dec of 2022. In order to make this process effective, we have initiated budget review and revision process to assess project priorities in line with MTR recommendations and ensure that there are enough funds for all operational expenses throughout the life of the project, including the recommended extension period. The results of the budget review clearly showed that there are enough funds for the project’s no cost extension. History
2. Recommendation:

Focus urgent procurement assistance to extend the ICTA contract with more in-time spent in country (consider about 100 days in country per year) and hire a new PM

Management Response: [Added: 2021/06/25] [Last Updated: 2021/06/28]

Recommendation is accepted 

 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
2.1. Amendment of the existing contract of ICTA (no-cost extension)
[Added: 2021/06/28]
Procurement Unit; Team Leader / Energy, Environment and Disaster Risk Reduction 2021/06 Completed The contract was extended until August 31, 2021; CTA will visit Tajikistan for 2 weeks in July 2021
2.2. Hire a new Project Manager
[Added: 2021/06/28]
HR, Team Leader / Energy, Environment and Disaster Risk Reduction 2021/06 Completed Ms. Muhiba Rabejanova has been hired as a PM
2.3. Extension of the existing contract of ICTA by 12 months and by adding xx days (TBD)
[Added: 2021/06/29] [Last Updated: 2021/08/19]
PM, TL 2021/07 Completed The contract was extended until August 31, 2021 History
2.4. Prepare ToR and announce a tender for ICTA
[Added: 2021/06/29] [Last Updated: 2021/08/19]
PM, HR 2021/07 Completed TOR is prepared and the process initiated via express roster History
2.5. Hire an ICTA
[Added: 2021/06/29] [Last Updated: 2021/10/31]
HR 2021/10 Completed Mr. Paata Janelidze was hired and commenced work on October 20, 2021 History
3. Recommendation:

Sign the Letter of Agreement (LoA) with the Ministry of Energy and Water resources so that work on Outcome 1 can begin

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/28]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
3.1. Signing of LoA including Annexes with the Ministry of Energy and Water Resources
[Added: 2021/06/28] [Last Updated: 2021/10/31]
Team Leader / Energy, Environment and Disaster Risk Reduction, PM, ICTA 2021/10 Completed LoA was fully executed on October 14, 2021 History
3.2. Approval of ToRs for experts to be hired for performing tasks under Annex 2
[Added: 2021/06/28] [Last Updated: 2021/12/30]
PM 2021/12 Completed A total of 13 experts were hired through the LoA with MEWR to work on promotion of by-laws on RES and GE within the Ministry and Government entities. The experts have presented drafts of their reports during the Inter-ministerial working group on December 9th, 2021. Their final product will be finished by April 2022, and presented in the final session of the IMWG. History
3.3. Starting of works under Component 1 of the Green Energy SME Project
[Added: 2021/06/28] [Last Updated: 2021/11/15]
PM 2021/10 Completed The activities under C1 have commenced after signing of the LoA with MEWR on C1. LoA is valid until June 2022. History
4. Recommendation:

Conclude an agreement with the MoEWR for the project’s participation in the Pamir Energy World Bank grant for rural electrification

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/28]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
4.1. To agree with the MoEWR the scope of cooperation under the WB-funded Tajikistan Rural Electrification Programme (TREP)
[Added: 2021/06/28] [Last Updated: 2022/07/01]
Team Leader / Energy, Environment and Disaster Risk Reduction, PM, ICTA 2022/07 Initiated History
4.2. Signing of Agreement with the MoEWR on providing grants to the ministry for implementation of green energy projects under the TREP programme
[Added: 2021/06/28] [Last Updated: 2022/06/02]
DRR, Team Leader / Energy, Environment and Disaster Risk Reduction, PM, ICTA 2022/07 Initiated History
5. Recommendation:

Change the project structure with a strengthened project team (and greater involvement of the ICTA to make it more effective

Extracts from MTR report: 

The ICTA needs to have a more direct role in the management and supervision of the project recognizing the labour force characteristics, the current salary and the urgent needs of the project. Several problems have occurred because the PM did not follow technical guidance of the ICTA. Moreover, an ICTA will generally have more in-depth management and technical experience than the PM. The ICTA contract modality should accommodate more frequent involvement in-country, with focused deliverables (beyond only consulting and advising) as opposed to current contract terms. The ICTA needs to have more time in country (normally 3 weeks for each trip). Note that this may require a change in the contractual relationship of the ICTA. We use this as a term to denote someone of the current ICTA’s experience and education which is much greater than that required for the PM. This term is not meant to imply any form of contractual relationship. The determination of the contractual vehicle is beyond the scope of the MTR 

In addition to this change, the project needs to routinely access local technical talent to support the ICTA and PM. There is a budget for local technical expertise but so far, the PM did not take advantage of this. The revised organisation structure also includes a Knowledge Management team recognizing the importance of this team in achieving the overall project objective and in successfully replicating demonstrations in Outcomes 2 and 3.

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/28]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
5.1. Development of a ToR (will consider more presence of ICTA in the country) and signing of a new contract with the ICTA (as per Action 2.3. above)
[Added: 2021/06/28] [Last Updated: 2021/10/06]
PM 2021/09 Completed the ToR is ready History
5.2. Development of a ToR and selection of a Technical Assistant (with energy engineering background)
[Added: 2021/06/28] [Last Updated: 2021/12/30]
PM, ICTA 2021/12 Completed Please see 2.4. History
6. Recommendation:

Develop better work planning tools including detailed life of project and annual work plans, and a strategy for how to meet the project targets. Revise and use the indicator monitoring plan as a management tool

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/29]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
6.1. Training of a newly appointed PM in work planning tools
[Added: 2021/06/28] [Last Updated: 2021/08/19]
DRR, Team Leader / Energy, Environment and Disaster Risk Reduction 2021/07 Completed on job trainings are ongoing History
6.2. Revision of AWP for 2021 by using work planning tools
[Added: 2021/06/28] [Last Updated: 2021/12/26]
PM, ICTA 2021/11 Completed the AWP 2021 has been revised History
7. Recommendation:

Develop a communications strategy and plan – demonstrate, document, and disseminate project results

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/29]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
7.2. Implementation of communication plan
[Added: 2021/06/28] [Last Updated: 2021/12/30]
PM 2022/12 Initiated Continuously History
7.1. Development of communication strategy and plan
[Added: 2021/06/28] [Last Updated: 2021/12/30]
PM, ICTA 2021/12 Completed Communication strategy and plan was developed and cleared by CO on October 27th, 2021. History
8. Recommendation:

Drop the focus on SME RESCOs and pilots

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/28]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
8.1. Excluding RESCO-related activities from the revised AWP and revised budget
[Added: 2021/06/28] [Last Updated: 2021/10/06]
PM 2021/12 No Longer Applicable [Justification: This will be replaced by collaboration between UNDP, WB, MEWR and PEC. ]
History
9. Recommendation:

Make changes in Outcome 2: (1) hold a roundtable among MFIs, GE suppliers, and Project staff to fully understand the market conditions and where they need assistance to achieve project objectives; (2) conduct a rapid market assessment; (3) develop financial products based on 1 and 2; (4) reducing the number of participating MFIs to three; (5), opening up activities to all Green Energy products that are financially feasible, and, (6) developing a market assessment before implementing 
 

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/29]

Recommendation is accepted

Key Actions:

Key Action Responsible DueDate Status Comments Documents
9.4. Launching of the marketing campaign on developed GE financial products by the selected MFIs
[Added: 2021/06/28] [Last Updated: 2022/07/01]
PM, ICTA, MFIs 2022/07 Initiated History
9.1. Signing a contract with Frankfurt School of Finance & Management gGmbH Provision of consulting services for selected microfinance institutions for development, promotion, and supervision of green financial products
[Added: 2021/06/28] [Last Updated: 2021/08/19]
PM 2021/07 Completed completed. History
9.2. Conduct meetings with MFIs and GE suppliers
[Added: 2021/06/28] [Last Updated: 2021/12/30]
PM, ICTA 2022/03 Completed This will be done during the implementation process of the contract with Frankfurt School of Finance and Management gGmbH. At this point it is too early in the process, we will conduct these meetings when there is actual hard data on the MFIs and GE suppliers provided by Frankfurt School to the project. The contractor is taking longer than planned to deliver on the required tasks, therefore they had asked for a no-cost extension of their contract until the end of February 2022. History
9.3. Identification of financially feasible GE products for different customer classes for different GE products (at a given interest rate, a given loan tenor, and a given cost of GE product and price of electricity), and given energy demand of customer
[Added: 2021/06/28] [Last Updated: 2022/04/27]
PM, ICTA 2022/03 Completed The action is completed History
10. Recommendation:

ICTA to consider revising the design of the financial support mechanism, revise and adjust some of the project log frame indicators and aggregate a few targets

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/29]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
10.1. Development of a financing scheme for solar technologies based on the findings of the market assessment
[Added: 2021/06/28] [Last Updated: 2022/03/06]
ICTA 2022/02 Completed completed History
10.2. Adjustment of indicators and targets in the Project Results Framework as needed
[Added: 2021/06/28] [Last Updated: 2021/10/06]
PM, ICTA 2021/09 Completed the adjusted Results Framework is subject to approval by RTA and the donor History
11. Recommendation:

Consider command and control measures including demand-side management in project activities since the price of electricity is so far below the actual cost. Working with MoEWR and PE, focus policy and regulations to require some EE measures or to mandate SWH under specific conditions 

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/28]

Recommendation is partially accepted – considering the tight timeframe, as well as there are no targets established for energy savings due to the implementation of EE measures, the Green Energy SMEs project will not focus on demand-side EE measures (thermal insulation of walls, EE windows, and doors, etc.) 

 

 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
11.1. Study of cost-effectiveness of SWH for tourist SMEs
[Added: 2021/06/28] [Last Updated: 2022/04/27]
ICTA, Frankfurt School 2022/03 Completed completed History
11.2. development of draft legal act on enforcement of the implementation of electricity tariffs for industrial consumers
[Added: 2021/06/28] [Last Updated: 2022/04/27]
ICTA, MoEWR 2022/03 Completed completed History
12. Recommendation:

Consider teaming with OSCE on a limited mini-grid effort to expand the number of people and communities reach through RESCOs and increase the MW served by the project while establishing a model for community-based electricity supply 

Extract from MTR report: 

OSCE has explored several communities in Khatlon that will not be connected to the grid in the next five years. Each of these communities has some form of existing, albeit degraded, power system. A community-based mini-grid as OSCE envision would be one form of RESCO and each community has different capabilities and resources to contribute. 

Once the project has successfully concluded its agreement on the PE/World Bank Activity, it will have reached many of its main targets and have resources left over. The project might consider programming some of those into the OSCE mini-grid concept. The project would not normally consider these projects because they are high per-unit cost of the person served and given the project’s limited budget, efforts here would not be cost-effective unless the project had already reached its targets. The only model that stands a chance of working and being sustainable is the community-based model

 

Management Response: [Added: 2021/06/28] [Last Updated: 2021/06/29]

Recommendation is accepted 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
12.1. Discussion with OSCE its plans regarding the implementation of community-based mini-grids in the Khatlon Region
[Added: 2021/06/28] [Last Updated: 2021/08/19]
ICTA 2021/07 Completed completed History
12.2. Subject to OSCE plans, development of a scope of cooperation
[Added: 2021/06/28] [Last Updated: 2022/03/06]
PM, ICTA 2022/01 Completed completed History

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