Methane Capture and Utilization Demonstration Project

Report Cover Image
Evaluation Plan:
2003-2007, Jordan
Evaluation Type:
Project
Planned End Date:
03/2007
Completion Date:
12/2007
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
5,000

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Title Methane Capture and Utilization Demonstration Project
Atlas Project Number:
Evaluation Plan: 2003-2007, Jordan
Evaluation Type: Project
Status: Completed
Completion Date: 12/2007
Planned End Date: 03/2007
Management Response: Yes
Focus Area:
  • 1. Crisis Prevention & Recovery
Corporate Outcome and Output (UNDP Strategic Plan 2014-2017)
Evaluation Budget(US $): 5,000
Source of Funding:
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Email Nationality
Remi Reji Team Leader
GEF Evaluation: Yes
Evaluation Type:
Focal Area:
Project Type:
GEF Phase: GEF-null
PIMS Number:
Key Stakeholders:
Countries: JORDAN
Comments: Terminal
Lessons
Findings
Recommendations
1 A solid institutional and commercial basis is needed for JBC and its staff to safeguard the capacity built up during the project. This requires the development of a viable business plan, revision of the company structure, adequate structuring of assets and operational activities, a reinvestment and insurance plan; an expansion plan for disseminating the technology while broadening the working area for the company in Jordan and abroad; and incentives for the staff, possibly performance-based.
2 Municipal and government incentives will be needed to support the long-term exploitation of the Ruseifah biogas plant. Such incentives can reflect the avoided costs related to waste mitigation by JBC, while additional rewards may be applied to sustain electricity generation based on biogas. In a long-term national strategy, such incentives may be recovered by levying waste production.
3 Although fertilizer production is apparently not a viable option, CDM may provide an additional revenue stream for landfill gas, compared to the open landfill baseline. Small-scale biogas projects may be clustered and submitted for CDM as well. In order to benefit from CDM, landfills should be better managed and controlled than currently attainable in Jordan. Data recording as under this UNDP/GEF project should improve drastically and include proper means of verification and monitoring.
4 It is recommended to secure the results of the project, specifically the Jordan Biogas Company, which is an urgent issue. A possibility is to organize JBC in separate entities for holding the assets (equipment); for operating them; and for providing services and consultancy.
5 UNDP to obtain commitment from JBC's shareholders to develop a sound business plan and carry out a detailed analysis of the financial viability for each component (assets, operation, services). This can possibly be done within the context of the ongoing Phase 2. The evaluators do not have recommendations regarding the legal structure and ownership of JBC.
6 It is recommended to link JBC with other landfill initiatives in Jordan and the region to stimulate replication. JBC's competences can be applied elsewhere; however, (some of the) staff is still considered as GAM staff and assists in activities outside JBC without generating income for the company. This situation makes it difficult to assess the operational costs of JBC and to train personnel in a targeted way. It is suggested to UNDP to show GAM and CEGCO that the provision of operational and consultancy services to third parties represent a business opportunity and to obtain their commitment. This element can then be integrated into JBC's business plan and should include a detailed human resources development plan.
7 UNDP to explore the possibilities to link the JUST university with initiatives in Jordan to apply small biodigesters for rural families and farmers. This would operationalise the research capacity created in the country and open up the potential of biogas technology for a different group of beneficiaries. It is suggested to UNDP to meet with JUST to review how biogas can be instrumental for rural area development and to identify potential partners.
1. Recommendation: A solid institutional and commercial basis is needed for JBC and its staff to safeguard the capacity built up during the project. This requires the development of a viable business plan, revision of the company structure, adequate structuring of assets and operational activities, a reinvestment and insurance plan; an expansion plan for disseminating the technology while broadening the working area for the company in Jordan and abroad; and incentives for the staff, possibly performance-based.
Management Response: [Added: 2008/07/10]

GAM, CEGCO, and JBC shall establish this mode with external aid.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Elaboration of a business model based on evaluation recommendations.
[Added: 2008/07/10]
JBC No due date No deadline established
2. Recommendation: Municipal and government incentives will be needed to support the long-term exploitation of the Ruseifah biogas plant. Such incentives can reflect the avoided costs related to waste mitigation by JBC, while additional rewards may be applied to sustain electricity generation based on biogas. In a long-term national strategy, such incentives may be recovered by levying waste production.
Management Response: [Added: 2008/07/10]

Government should help by provide Income tax exemption. Company working capital was increased.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Ministry of energy to increase electric tariff, MOPIC provide JBC with TAX exemption. CEGCO and GAM inject funds to raise company capital. Plant staff salaries raised.
[Added: 2008/07/10]
JBC No due date No deadline established
3. Recommendation: Although fertilizer production is apparently not a viable option, CDM may provide an additional revenue stream for landfill gas, compared to the open landfill baseline. Small-scale biogas projects may be clustered and submitted for CDM as well. In order to benefit from CDM, landfills should be better managed and controlled than currently attainable in Jordan. Data recording as under this UNDP/GEF project should improve drastically and include proper means of verification and monitoring.
Management Response: [Added: 2008/07/10]

Ministry of Environment, Ministry of Industry and Commerce also JBC and GAM should take this issue into consideration. Developing guidelines for landfill operation is essential. Develop in partnership with the above mentioned partners and private sector a Jordan wide small Bio digesters project.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Developing guidelines for landfills design and operation, launching a small Bio-digesters project..
[Added: 2008/07/10]
JBC, MOPIC No due date No deadline established
4. Recommendation: It is recommended to secure the results of the project, specifically the Jordan Biogas Company, which is an urgent issue. A possibility is to organize JBC in separate entities for holding the assets (equipment); for operating them; and for providing services and consultancy.
Management Response: [Added: 2008/07/10]

JBC welcomes this recommendation; with Government support JBC is willing to expand

Key Actions:

Key Action Responsible DueDate Status Comments Documents
MOPIC to make contacts with MOMA to commence a project in Ekaider landfill
[Added: 2008/07/10]
No due date No deadline established
5. Recommendation: UNDP to obtain commitment from JBC's shareholders to develop a sound business plan and carry out a detailed analysis of the financial viability for each component (assets, operation, services). This can possibly be done within the context of the ongoing Phase 2. The evaluators do not have recommendations regarding the legal structure and ownership of JBC.
Management Response: [Added: 2008/07/10]

External aid for JBC is Crucial in this regard, we appreciate UNDP support in this matter as JBC does not have the capacity to develop such tasks

Key Actions:

Key Action Responsible DueDate Status Comments Documents
MOPIC and JBC to carry out detailed analysis of the financial viability of JBC
[Added: 2008/07/10]
No due date No deadline established
6. Recommendation: It is recommended to link JBC with other landfill initiatives in Jordan and the region to stimulate replication. JBC's competences can be applied elsewhere; however, (some of the) staff is still considered as GAM staff and assists in activities outside JBC without generating income for the company. This situation makes it difficult to assess the operational costs of JBC and to train personnel in a targeted way. It is suggested to UNDP to show GAM and CEGCO that the provision of operational and consultancy services to third parties represent a business opportunity and to obtain their commitment. This element can then be integrated into JBC's business plan and should include a detailed human resources development plan.
Management Response: [Added: 2008/07/10]

In fact JBC employees are fully paid from JBC generated income, linking JBC to other Landfill gas initiatives has to be addressed by MOPIC, MOMA and GAM

Key Actions:

Key Action Responsible DueDate Status Comments Documents
An initiative by MOPIC, MOMA and GAM to Link JBC with other landfill projects.
[Added: 2008/07/10]
No due date No deadline established
7. Recommendation: UNDP to explore the possibilities to link the JUST university with initiatives in Jordan to apply small biodigesters for rural families and farmers. This would operationalise the research capacity created in the country and open up the potential of biogas technology for a different group of beneficiaries. It is suggested to UNDP to meet with JUST to review how biogas can be instrumental for rural area development and to identify potential partners.
Management Response: [Added: 2008/07/10]

Until now there is no small bio digester operational in Jordan ,in order to spread such technology ,a pilot is required to be operated and then disseminated ,UNDP experience in other countries could be beneficial to implement a project for small bio digesters in Jordan

Key Actions:

Key Action Responsible DueDate Status Comments Documents
UNDP, JUST ,MOMA, and JBC to Discuss establishing a small Bio digester model
[Added: 2008/07/10]
2008/12 Completed

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