UNEP ARGeo PROJECT COMPONENT

STATUS AND WAYFORWARD

MESERET TEKLEMRAIAM (Ph.D)

Second ARGEO Steering Committee Meeting

1 September 2011

Nairobi, Kenya

AFRICAN RIFT GEOTHERMAL DEVELOPMENT

FACILITY PROJECT (ARGEO)

PRESENTATION OUTLINE

• African Rift Geothermal development Facility (ARGeo)

• Objective of the Project

• Size of the Fund

• Target Countries

• UNEP ARGeo Project Component

• Current Status of the Project

• Next Steps/Way Forward

• Conclusion

ARGeo :

• Proposal originates from the “Eastern Africa Geothermal

Marketing Acceleration Conference” held in Nairobi, 9-

11April 2003.

• Proposed in view of the fact that the region:

Has a large untapped geothermal resource potential,

Resource is an indigenous, environmentally clean

and economically viable, renewable energy resource.

Its development to date has been constrained by the

risks that are associated with RED and the financial risks

that are associated with investment in power

development projects.

• Promote geothermal resource utilization by removing

risks and by reducing the cost of power development

project implementation.

• Planned to deliver a package consisting of financial and

technical inputs as means for realizing that promotion.

• Policy support will aim to help in cultivating the

recognition that the resource is reliable and indigenous vis

a vis other sources of power.

• Utilization of the resource in agriculture and industry

will also be promoted.

OBJECTIVE OF THE PROJECT

ARGEO

PROJECT COMPONENTS

Has two components:

• Regional Networking and technical assistance

• Risk Mitigation Fund.

Implementing agencies for this project are:

• UNEP and

• World Bank (WB).

•Regional Network : Managing a geothermal information

system, capacity building (pooling of resources,human and

equipment) and awareness raising.

•Technical Assistance : (a) Surface investigations to confirm

the presence of utilizable geothermal resources. (b) Sector

policy advice and promotion of institutional structures and legal

and regulatory framework.

•Risk Mitigation Fund: to cover risky investments in

exploration and appraisal drilling

PROJECT COMPONENTS

SIZE OF THE FUND

A total of US$17.75 Million is approved by GEF:

• US $13 Million for the (RMF)

• US $4.75 Million for R N and TA (UNEP)

CO-FINANCE

• Icelandic International Development Agency (ICEIDA)

• German Federal Institute for Geosciences and Natural

Resources (BGR)

• United Nations University-Geothermal Training Programme

(UNU-GTP)

• International Atomic Energy Agency (IAEA)

• ARGeo Member Countries

At Present, ARGeo TARGET COUNTRIES

Djibouti

Eritrea

Ethiopia

Kenya

Tanzania

Uganda

UNEP ARGEO

PROJECT COMPONENT

• Regional Networking, Information Systems, Capacity

Building and Awareness Creation, and

• Technical assistance: Surface Exploration Studies

•Regional Network : Managing a geothermal information

system, capacity building and awareness raising.

•Technical Assistance : (a) Surface investigations to confirm

the presence of utilizable geothermal resources. (b) Sector

policy advice and promotion of institutional structures and legal

and regulatory framework.

UNEP PROJECT

COMPONENTS

INFORMATION

SYSTEMS

CAPACITY

BUILDING

AWARENESS

CREATION

REGIONAL

NETWORKING

UNEP ARGEO PROGRAMME

TECHNICAL

ASSISTANCE

ARGeo implementation will be preceded by an initial

project development stage which will identify:

Most suitable resource areas for support,

Survey the already existing human,

institutional and infrastructural capacities in

the region,

Assist with the creation of the collaborative

institutional network and database,

Survey the policy and legislative regime in

the region.

IMPLEMENTATION

•Potential number of geothermal fields explored in the region

•Number of geothermal resources sites with confirmed energy potential

• Number of skilled human resources

•Adequate networking and information exchange

• Partnership developed and Synergy and complementarities created

Expected Output of the Project

MAIN BODIES OF THE UNEP ARGEO PRO.

• STEERING COMMITTEE (MC, Donors and I.Agencies)

• PROJECT MANAGEMENT UNIT (UNEP)

• ARGEO TECHNICAL ADVISORY TEAM

• ARGeo MEMBER COUNTRIES

ORGANIZATIONAL CHART OF ARGEO

National Project Management Unit (NPMU)

THE WORLD BANK (WB)

GEF Implementing Agency

of the GEF Grant for RMF

and TAF

ARGeo Technical

Advisory Team

(ATAT)

ARGeo Steering Committee Members (SC) GEF, ARGeo Countries, UNEP, WB, Donors and Supporters

NPMU NPMU

NPMU

NPMU

NPMU

NPMU

Advice (UNEP/DTIE)

Project Management Unit

Executing Agency for Regional Networking & TA

• UNEP ARGeo Program officially started its operation

by November 2010 during the Third African Rift

Geothermal Conference (ARGeo-C3) held in Djibouti.

STATUS

ARGeo-C3, DJIBOUTI (2010)

PROGRESS ON PROJECT PREPARATION

• Update Country’s Status Report in the EAR

• Start Developing East African Geothermal Database

• Start Inventory of Human Resources, Equipment

and Institutional Set Up

• All the above Prepared by ISOR through ICEIDA

Co-Fund

• UNEP PM Reviewed the above and final document on

country report published

• Preparation of Draft Bye laws for establishing

African Geothermal Association (IGA)

Regional Networking, Information Systems,

AC and CB

Partnership and South-South Cooperation

• Communicated with various partners

such as BGR, ICEIDA, UNU-GTP,

UNIDO, BRGM, USAID etc..

• Agreed to establish agreement in

principle with GDC and KENGEN to

support ARGeo in Regional

Networking, awareness creation

capacity building, technical Assistance

etc.

GDC

Held Discussion and reached in principle

agreement with AUC-KfW

(i)Regional Networking

• Geothermal Database

• Website, outreach and communication

material

• Organization of regional geothermal forums

• Policy development and harmonization

• Capacity building (institution and

infrastructure)

(ii) Technical Assistance

Surface Exploration Activities

UNEP ORGANIZED A SIDE MEETING WITH MINISTERS

AND DM ON ARGEO IN ABU DHABI (JULY 2011)

• Guidelines for Preparation of Project Proposals

• Draft Project Proposal From Uganda, Kenya

Eritrea and Ethiopia are Submitted to UNEP

• Review overall approach of proposals on the

basis of Guidelines and selection Criterea

• Exchanged ideas and views with member

countries on submitted proposal

TECHNICAL ASSISTANCE

Alid Geothermal Prospect, Eritrea

Kibiro Geothermal Prospect, Uganda Silali Geothermal Prospect, Kenya

Tendaho Geothermal Prospect, Ethiopia

GUIDE LINES AND Selection Criteria

Countries Presentation,

analysis and

synthesis of the

existing

information

(What we

know)

Identification of

yet unknown

features

Exploration

methodology

that suit to

address the

problem

Environemn tal

studies before

and after

completion of

the study

Implementation

arrangement

(Human,

institution,

Infrastructure)

Cost brekdown

and work

Schedule

Next Step of

the project

Djibouti NA - - - - - -

Eritrea Further D.

Required

Further D.

Required

Depends on the

first two

Not mentioned Well done. Well Done. Mentioned

Ethiopia Done Described.

Needs ST

assessment

Depends on the

earlier point

Not mentioned done done Mentioned

kenya Further D.

Required

Further D.

Required

Depends on the

earler

Not mentioned Done Done Mentioned

Tanzania NA - - - - - -

Uganda Done Done. Needs

ST assessment

Depends on the

previous

Not mentioned Done. No

appropriate

institution

Done Not

mentioned

HELD ARGeo 2nd SC Meeting (1 September 2011) .

Output of the SC Meeting (1 September 2011) .

• Awareness created about ARGeo Project Status

and way forward

• Evaluated Four country Proposals submitted to

UNEP on the basis of overall aproach and criterea

for prioritization of project proposals

• Draft East Africa Geothermal Database

introduced

• Commitment to co-finance ARGeo Project 2011-

12

• Adoption (Agreement in priniciple) of : (i) UNEP

2011-12 work plan; (ii) Implementation modalities

of UNEP ARGeo project (iii) Role of ARGeo SC and

(iv) TOR for ATAT

HELD ARGeo High level Meeting (2 September 2011) .

Awareness created about ARGeo Project Status and

way forward

Ministers Visited to Olkaria Geothermal P.Plant (3Sept.2011)

ARGeo Nairobi Ministerial Resolution .

• ARGeo is recognized as an intergovernmental

coordination and information forum facilitating and

coordinating sustainable use and devt. of geoth. Resource

under the guidance of AUC

• UNEP supports AM Countries in: (i) RN on Geothermal

Agencies, (ii) undertake CB, and Surface exploration

studies which would minimize the financial and technical

risk of the drilling activities to follow with the AUC-GRMF

and WB RMF.

• ARGeo Ensures a well integrated regional geothermal

exploration and development approach which will

cooperate closely with AUC, KfW, BGR, ICS-UNIDO etc..

ARGeo Nairobi Ministerial Resolution .

Other Participants also recommend that Governments:

• Establish appropriate institutional and infrastructural

framework

• Develop and harmonize policies with a view to encourage

Private developers to accelerate DGER.

• Allocate adequate funds or increase budgetary allocations

• Include Geothermal in their NPDMP

• Support regional Energy Development for Power

Generation and direct uses

NEXT STEPS

(A) Regional Networking, IS and AC

• Develop website, outreach and communication material

• Finalize Geothermal Database

• Organize ARGeo Regional Forums e.g. ARGeo-C4

• Set up National Project Management Unit

• Customized (Tailor made) Training Programmes for

experts and decision makers on Geoscientific studies,

Project planning and Management and Database

Management

Further - In Principle agreement with AUC

and KfW

(B) Technical Assistance

• Set up ARGeo Technical Advisory Team

• Identify and select priority projects

• Start Procurement processes

• Start Implementation of surface exploration studies

NEXT STEPS

CONCLUSION

• Overall strategy to accelerate geothermal

development in the countries of EARS is to

adopt a regional geothermal resource

development approach

• Harmonization, coordination and synergy of

various geothermal programmes in the region

will significantly contribute to accelerate

GERD by reducing cost, increase efficiency and

quality of the work

• Holistic Utilization of Energy resource (both

PG and DU) can create wealth, tackle food

insecurity and boost socio economic

development.

ACTIVITIES UNDER THE UMBRELLA OF RG

ARGeo-C1

Ethiopia (2006)

Djibouti

ARGeo-C2,

UGANDA (2008)

BIENNIAL GEOTHERMAL CONFERENCES

ARGeo-C3,

DJIBOUTI (2010)

THANK YOU