Work Order 10 - Draft - Web viewSamoa lies in a tropical cyclone area in the Pacific ... farms and a further US1 million as a revolving credit line for ... loss from storm or other

Technical Assistance to the GCCA Climate Support Facilityunder the 10th EDF Intra-ACP Financial Framework

Work Order 41

Strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities in the Pacific

Technical Assistance to the GCCA Climate Support Facility under the 10th EDF Intra-ACP Financial Framework FED/2012/292-331

Mission Reportfor ACP Secretariat and European Commission

Field Mission from 30 March 2014 to 28 April 2014

Dr. Scott K. CunliffePrivate Sector and Climate Resilience Advisor

Quality Control: Manuel Harchies

NOTE: This document is supported also by the “Resource Documentation”, produced as a separate document for use by SPREP to continue to take these initiatives forward. This is a key overall objective of the GCCA

Climate Support Facility for this project.

First Draft 24 June 2014Revised 12 September 2014

Consortium SAFEGE-Prospect-ADETEF-Eco – Gulledelle 92, 1200 Brussels, BELGIUM

Table of Contents

1.0 Summary Recommendations

2.0 Samoa, Climate Change and Clean Energy

3.0 Mission data

3.1 Introduction and Overview

3.2 Objectives

3.3 Achievement of Specific Objectives

3.4 Key Tasks

3.5 Outputs

3.6 Additional Outputs

4.0 Workshop: Climate Finance for Samoa - Brainstorming Workshop Wednesday 23 April 2014

Appendix

1. Draft Outline Proposal for initial consideration of ADB for the CIF submission

2. Week One Update - 9 April 2014

3. ADB response to the submission 10 April 2014

4. ADB Management Response (July 2014)

5. Workshop – Outline and Evaluations (24 April 2014)

6. Work plan draft 24 March 2014

7. Draft Outline Paper on

“Risk, clean energy and climate finance for small island states – a case discussion from Samoa”

8. Terms of Reference for the Consultancy (including realignment)

Climate Support Facility – WO 41 – Mission Report

Summary Recommendations Of key significance is the successful agreement in principle that has been forged with

the Carbon War Room (Islands Programme) to develop a range of support options for Samoa, building on the Ten Islands initiative being currently rolled out in the Caribbean region.

Continued interest has been expressed by the Clinton Foundation to support clean energy initiatives on Samoa.

The upcoming Small Island Developing States (SIDS) Conference1 in Samoa in September, will be an opportunity to showcase local private sector initiatives at the « Private Sector » forum are of the conference, with the support of SPREP and other local partners.

Although an official management response has been promised by the Asian Development Bank (10 June), to date this has not been received. It is expected that the Bank will outline the appropriate methods and procedures for applying for CIF Set Aside Funding, wither under the PPCR Set Aside or the Clean Energy Set Aside in due course.

The lack of cooperation from the ADB is consistent with their lack of assistance of any kind from July 2013 and in the second instance in April 2014. As a result, SPREP has forwarded a poignant letter to the Bank for which as response has yet to be received after one month. There still remains an opportunity to apply for funding under the CIF set aside however the frustration of two previous attempts has resulted in the private sector group having a rather dim view of the Bank.

Although concrete pledges for financial support have not been forthcoming to date, this is an extremely important initiative for Samoa, one that will be recognised by Government as a necessity rather than a luxury, and support will be forthcoming in the not too distant future. Strong Government backing to the initiative will be most valuable to ensure a smooth passage through the approvals and licensing processes.

Key messages

The major challenge for clean energy today does not lie in technology costs but in the cost of financing proven technologies and in the access to long-term affordable financing. For some low carbon climate resilient technologies, both technology costs and costs of financing the technology are important.

There is a key role for the public sector to play in removing a number of barriers for investment.

1 Third International Conference on Small Island Developing ... The Third International Conference on Small Island Developing States will be held from 1 to 4 September 2014 in Apia, Samoa. www.sids2014.org/

Draft 12 September 2014 Page 3 of 73


Reducing investment risks needs to be a first-order priority, before applying more comprehensive public policy instruments such as subsidies or loan guarantees.

Financial incentives will not be effective unless complemented by the right regulatory and institutional frameworks.

Existing investment appraisal tools should be used to make smart decisions (among further political, financial and social considerations).

Importance of creating a business case for actions by the private sector – no financing without a proper business plan.

In order to draw the private sector into financing projects, there needs to be a stronger focus on evidence based learning and attribution of outcomes to the intervention.

Policy stability and consistency (across different government departments) are paramount criteria for potential investors.

Governments need to have a complete understanding of the markets beyond the project developer level, to enable them to play a catalytic role in helping more projects to get implemented successfully.

Before investing public money in a project, government actors need to ensure that public resources achieve financial leverage (mobilise significantly larger amounts of private capital) and additionality (private investment that would not have happened anyway).



Samoa, Climate Change and Clean Energy

A brief Introduction

Small Island States and Clean Energy NeedsIslands face increasing challenges from their dependence on imported fossil fuels, which impacts the prices they pay for everything from electricity to food. This is further complicated by the added demand that tourism places on the island’s resources. Natural energy resources are abundant on islands. However, the systems required to use them have not been widely implemented or up-scaled.

Business and Employment OpportunitiesThis lack of implementation is the result of multi-market barriers that islands and technology providers encounter. These multi-market barriers include local permitting, long-term fossil fuel contracts, and other legislative barriers. What is missing is a scaled regional approach to these barriers as well as successfully implemented pilot operations that can show how these affordable and appropriate alternatives are not only good for business but good for the environment and good for the economy in general. Business opportunities and the economic value of clean energy solutions abound in various parts of the world; small island states with their relatively small scale needs are often not adequately assessed in terms of need coupled with a significant lack of knowledge and understanding on the part of legislators and potential investors.

The Samoan IslandsSamoa is comprised of two relatively large islands, Upolu and Savaii, two smaller inhabited islands, Manono and Apolima, and a number of smaller uninhabited offshore islands, islets and rocks with a total land area of 2,934 km2. Samoa lies in a tropical cyclone area in the Pacific Ocean between its closest neighbours American Samoa, Tonga, Wallis and Futuna and the Tokelau island. The population of Samoa is over 179,000 people (2006 census). Around three quarters of the population lives in the capital city Apia on Upolu.

The Economy The economy of Samoa is typical of a small island developing economy. It has traditionally been dependent on development aid, private family remittances from overseas and agricultural exports. Agriculture employs two-third of the labour force and accounts for 90% of exports. The main exports are coconut cream, coconut oil, noni (juice of the nonu fruit), cocoa and copra. Tourism accounts for 25% of GDP.

Climate Change and Clean EnergySamoa is frequently affected by extreme weather events such as hurricanes and tsunamis. There is a strong drive within the country to not only make the country more resilient to extreme weather events but also to move away from diesel and on to more sustainable energy sources. Samoa has received some funding for individual projects from UN bodies but there is a need for a coordinated approach that is able to leverage funds from both public and private sources. With support from the EU Global Climate Change Alliance (GCCCA), SPREP is working with the Samoan Government and private renewable energy developers to develop a clean energy, recycling and diesel replacement roadmap that is appropriate for the country.



Making ProgressThis process is still in an early stage, but the process is already identified natural resources available, suitable technology to make best use of those resources and gaining acceptance from the government and the community. The initial seed financing is the most important need at present.

Increasing Electricity DemandsThe electricity supply system in Samoa is currently stretched to its limit. There is a need for an increase in the supply of energy and an improvement in the efficiency of the existing transmission systems. There are frequent outages and inconsistency in the voltage supply. The main demand for electricity is from the tourism sector, businesses in the city, and utilities such as the water supply system. The transport sector is a major user of diesel.

Natural ResourcesSamoa has an abundant supply of solar energy, inland rivers, surrounded by sea and a small potential for geothermal energy. There is also an abundant supply of agricultural waste and surplus resources such as coconuts. An important consideration for the government when implementing an alternative energy supply will be the ancillary benefits that any scheme might bring such as the creation of employment. Biomass gasification is currently favoured by the government and the community because it would provide a boost to the agricultural sector and provide jobs. The majority of the energy supply is used by the tourism industry, utilities and other businesses and industries in the cities.

Pyrolysis and GasificationBiomass gasification uses agricultural waste or purpose grown biomass as a feedstock. This would include a process of pyrolysis to recycle senile coconut palms, the trunks, the fonds and the shell, not the valuable copra given the recent significant increase in the global price of copra. The biomass is gasified at very high temperatures to produce a combustible gas and heat. The combustible gas is burned in a generator to produce electricity or alternatively, the biomass gasifiers can also be adapted to produce a liquid biofuel. Liquid biofuels can be used as a 100% diesel alternative for transport and other applications. A second pyrolysis proposal will utilize shredded recycled tyre rubber while recycling the steel and nylon by products.

The future of Clean Energy is Bright for SamoaWhile the cost of solar energy for electricity generation remains unaffordable and wind energy is not feasible, the current private sector proposals developed with SPREP include various recycling initiatives and two clean energy (waste to energy) production projects to address the current unsustainable reliance in diesel fuel electricity generation. These projects represent home-grown private sector initiatives, supported by local organizations and soon to be endorsed by Government2.

Asia Pacific Development AgendaAs population, urbanization and income levels increase, the scope of the environment and climate challenges facing the Asia-Pacific region is daunting. Fast growth has led to unsustainable resource consumption and a rapid increase in greenhouse gas emissions in many countries. At the same time, climate change is already disproportionally affecting smaller economies such as the small island states in the Pacific which have hardy contributed to the cause but have a lower adaptive capacity compared to economically better-off countries in the region.

2 The Government has not yet officially endorsed any of these draft proposals. Discussions and negotiations are ongoing.



Climate change is at the forefront of the development agenda in the region and poses a huge challenge that cannot be tackled by governments alone. Workable solutions will depend on the functioning interplay of governments and other actors, such as communities, businesses and financial institutions.

Mobilization of private capital is essential to the achievement of mitigation and adaptation goals. The financial sector controls trillions of dollars that could potentially be directed towards a green economy. In order to mobilize the financial and private sector, it will be crucial to overcome the barriers to investment by strengthening national regulatory and policy frameworks.

To encourage and facilitate clean energy, recycling and climate resilient investment in the Asia-Pacific region, SPREP and the GCCA have jointly supported the development of private sector initiatives in Samoa, in view of these pilot projects, once successfully implemented, to provide working examples of clean energy production and efficient waste recycling for up scaling throughout the Pacific Region. These initiatives are critical to sustained economic growth in the region in the immediate and foreseeable future.

Thanks to the Carbon War Room for some of the above background information.Monday 26 May 2014



Mission data

Country The main place of execution of the Services is located in the Beneficiary country of Samoa.

Period The Parties agree that the time allocated to the Consultant for the execution of the Services is a maximum of 39 (thirty-nine) working days.

Local coordinator

The Secretariat of the Pacific Regional Environment Programme (SPREP), Climate Change Division, with Espen Ronneberg, Climate Change Adviser as the focal point, and advisory support would be given by the Division, including Dr Netatua Pelesikoti, Director. Contact details: [email protected] and [email protected]

Acronyms ADB – Asian Development BankBOT – build-operate-transferCIF - Climate Investment FundDBO – design-build-ownEEZ – exclusive economic zoneEPC – Electric Power CorporationFIAS – Foreign Investment Advisory ServiceFY – fiscal yearGDP – gross domestic productGSM – global system for mobile communicationsIMF – International Monetary FundISP – Internet service providerKwH – kilowatt hoursLHD – left hand driveMW – megawattMWTI – Ministry of Works, Transport and InfrastructurePIC - Pacific Island CountryPPCR - Pilot Programme for Climate ResiliencePPP – public-private partnershipRHD – right hand driveSAA – Samoa Airport AuthoritySBC – Samoa Broadcasting CorporationSBEC – Small Business Enterprise CentreSOE – state-owned enterpriseSOEMD – State-Owned Enterprise Monitoring DivisionSPA – Samoa Ports AuthoritySPBD – South Pacific Business Development FoundationSPREP – Secretariat of the Pacific Regional Environment ProgrammeSLC – Samoa Land CorporationSSC – Samoa Shipping CorporationSSS – Samoa Shipping ServicesSTA – Samoa Tourist AuthoritySTEC – Samoa Trust Estates CorporationSWA – Samoa Water AuthorityTA – technical assistanceTDMA – time division multiple accessUNCITRAL – United Nations Commission on International Trade LawUNDP – United Nations Development ProgrammeVAGST – value-added and goods and services tax


mailto:[email protected]



Introduction and OverviewThe Mission commenced 31 March and time in the field was completed 28 April. While considerable progress was made towards achieving the overall objective, the project required a realignment given the reluctance of the Asian Development Bank to support the Solar Water Purification climate change adaptation initiative forwarded to them in draft on 6 April for submission to the Climate Investment Fund (CIF).

It was hoped that in this second submission (following the unsuccessful attempt in July 2013) that over the course of April, that we could complete the proposal for the Second Round of the CIF Set Aside with the support of ADB and in accordance with the new guidelines and lessons learned from the first approval of some USD$40 million. We were informed on 10 April that ADB would again not be willing to assist or to move forward with the submission to the CIF.

It was then agreed that the focus would then be to identify additional donors and to pursue those from which the most positive initial responses were received. This included the Carbon War Room (http://www.carbonwarroom.com/) and the Clinton Foundation (http://www.clintonfoundation.org/).

In addition to developing these relationships as far as possible during this time, it was agreed that a summary outline of these experiences (from July 2013 and April 2013) would be compiled for publication by SPREP or other willing publisher, to highlight the experiences gained and the overall issue of small island states and their ability to gain access to climate finance avenues. It was agreed this could make a valuable contribution to the SIDS3 Conference (http://www.sids2014.org/) to be held in Apia Samoa in September 2014.

The tasks undertaken therefore reflect this change in focus.

ObjectivesAs specified in the ToR:

General objective: To assist the Pacific regions’ private sector engagement in climate change adaptation and mitigation activities to build resilience

Specific objective: Aimed at strengthening the private sector engagement in activities associated with reducing Pacific countries’ exposure to climate risk and uncertainty in Samoa (and if possible Tonga and PNG), the specific objectives of this Work Order will be:

1. Assist SPREP in reviewing and revising the initiatives and proposals developed in August 2013;

2. Investigate possible donor support to the initiatives proposed and revised from Work Order 29;

3. Identify initial development opportunities in the other two PPCR countries (Tonga and PNG); and

4. Develop application and required documentation to selected relevant donors for financial support to carry out these initiatives in the Pacific.

Key tasks:I. Identify and assess relevant donors and opportunities to fund the proposed initiatives

aimed at strengthening the private sector engagement in activities associated with reducing countries’ exposure to climate risk and uncertainty in the Pacific region (Samoa in particular) with a focus on the energy, water and recycling sector as proposed in Work Order 29.

3 UN Conference on Small Island Developing States, 1-4 September 2014 in Apia, Samoa.


http://www.sids2014.org/

http://www.clintonfoundation.org/

http://www.carbonwarroom.com/


II. Identify possibilities for activities and funding for these activities in the other two countries, Tonga and PNG

III. Prepare relevant application and supporting documents in a timely manner for SPREP and in accordance with relevant application requirements of identified donors.

Achievement of Specific Objectives 4

With the overall goal in mind; “Strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities in the Pacific”, the project has achieved this goal.Direct financing however has not been secured.

Access to the PPCR Private Sector Set Aside funds from the Climate Investment Funds (CIF) has again been denied by ADB, citing reasons as follows: quote:

”… ADB is unable to take these forward… We think this solar water purification proposal would be unlikely to receive funding … there is a need for a clearer argument for its development benefits … a project where a company wants to sell a product into a new market, but users can’t afford to pay, then concessional finance becomes a subsidy, and proposals would be unlikely to be approved on this basis”.

It is my view (and that of SPREP) that these suggestions do not reflect a comprehensive view of the water project, clearly a significant adaptation project for not only Samoa but indeed all small island states facing safe drinking water solutions, current and indeed in the future. A letter responding to ADB on their position was drafted for SPREP on 12 April 2014. Similarly, it is recommended that a response to the ADB Senior Director of the Pacific Department, Mr. Robert Guild5 be prepared in order to get a definitive response from a Senior decision-maker at the Bank regarding their position on support to private sector initiatives in the Pacific.

In order to prepare as best we could for this Second Round of the Set Aside funding, we had thoroughly reviewed the new criteria for selection (CIF and PPCR Sub-Committee) as well as all relevant documentation made available on the CIF web site following the first round of the PPCR Set Aside (https://www.climateinvestmentfunds.org/cif/node/11440 ).

Given the Bank’s unwillingness to assist with the PPCR funding proposal, it was agreed with SPREP and the GCCA-ACP Programme Representative, Mr. Manuel Harchies that for the remainder of the Consultant contributions to the project, we would re-focus efforts on other accessible sources of funding for the initiatives from Samoa. This is detailed below.

Assist SPREP in reviewing and revising the initiatives and proposals developed in August 2013

Investigate possible donor support to the initiatives proposed and revised from Work Order 29

Identify initial development opportunities in the other two PPCR countries (Tonga and PNG);

Develop application and required documentation to selected relevant donors for financial support to carry-out these initiatives in the Pacific

COMPLETED COMPLETED INCOMPLETE PARTIALLY COMPLETE

100% 100% 25% 50%

4 Each of the Specific Objectives is addressed later in the Mission Report.5 Robert Guild, PhD, Director, Transport, Energy, and Natural Resources, Pacific Department, Co-Chair, Transport Community of Practice, Asian Development Bank Tel (632) 632-6109, [email protected]


https://www.climateinvestmentfunds.org/cif/node/11440


Key TasksAs specified in the ToR (in BLUE) there are three Key Tasks as follows (methods, achievement, completion below each task),:

A. Identify and assess relevant donors and opportunities to fund the proposed initiatives aimed at strengthening the private sector engagement in activities associated with reducing countries’ exposure to climate risk and uncertainty in the Pacific region (Samoa in particular) with a focus on the energy, water and recycling sector (Work Order 29). Upon arrival in Samoa, the urgent requirement was to forward our intended private

sector adaptation proposal to ADB to gain access to the Second Set Aside funding of between USD$30-45 million. The first Set Aside funding of USD$40 million was announced in November 2013. With some USD$70 million available in 2013, the unused sum of around USD$30 million was made available for the Second Round of the Private Sector Set aside, announced in December 2013, with a deadline for applications set at 30 April 2014. Applications for access to the Second Round of the Set Aside should really have commenced in December 2013.

Immediate and regular communications with ADB PPCR representative was established as well as with several individuals (nine in total) with responsibilities for climate finance, the PPCR and the Private Sector arm of the Bank, were established upon commencement of the work on site. An initial draft (clearly needing further development, it was a draft) was forwarded to ADB around 4 April and a negative response received 10 April. As indicated above, collaboration with ADB leading the proposal development process as executing agency should have commenced in December or January at the latest.

Further possible donors have been identified and shortlisted. The three most promising prospects are the Carbon War Room (http://www.carbonwarroom.com/ ), the Clinton Foundation (http://www.clintonfoundation.org/ ), and the NAMA Facility (http://www.nama-facility.org/ ). NOTE: the NAMA Facility was deemed to be a long term initiative that would require the support of GIZ and the German NAMA Secretariat and the selection process for such NAMA support is a lengthy and complex process. Discussions with GIZ in Fiji suggested there may be opportunities to pursue this on a Regional or Sub-regional basis but may not be able to provide the short term support needed by the current proposals in Samoa. See also the donor section in the Resources Documentation (separate) for further detail on these organizations and other possible donor organizations relevant to small island developing states, private sector, and clean energy/recycling initiatives.

Of the three above, the NAMA Facility6 will require the most dedicated human resources given the requirement to first establish a NAMA for which the NAMA Facility will fund implementation, not the formulation of the NAMA itself. While this would be feasible in the medium term, it would require considerable human resources to facilitate this process. Discussions between the Consultant and the GIZ representative in Fiji (Dr. Wulf Killmann7) on 25 April suggested that they would be willing to support such an initiative however there is no financial allocation in their existing programme budget for this, They could offer assistance that would be useful in the Implementation Phase given adequate notice. COMPLETED

B. Identify possibilities for activities and funding for these activities in the other two countries, Tonga and PNG

6 NAMA means Nationally Appropriate Mitigation Actions, and the Facility will fund implementation of NAMAs once they have been developed by the host country. Samoa at present does not have a NAMA. It is not dissimilar to the NAPA process led by UNDP and the GEF.7 Dr. Wulf Killmann, SPC/GIZ Coping with Climate Change in the Pacific Island Region (CCCPIR), GIZ Program Director & Senior Advisor, Deutsche Gesellschaft für Internationale Zusammenarbeit(GIZ)GmbH Tel: +679 3305 983; +679 3307 543 www.giz.de


http://www.nama-facility.org/

http://www.clintonfoundation.org/



It was agreed that we would focus on Samoa, given that the PPCR Set Aside option was not available (which included the requirement to couch the proposal within the overall Pacific Regional SPCR including Tonga and PNG).

The option and indeed high value follow on from the proposed support to Samoa would be the potential value of these pilot projects to the other countries of the Pacific once tangible results have been achieved.

NOT COMPLETED

C. Prepare relevant application and supporting documents in a timely manner for SPREP and in accordance with relevant application requirements of identified donors. It was agreed that it would be premature to begin application processes but rather we

should take the time to investigate all positive leads on sources of donor funding and develop those relationships as far as possible at this stage of the work.

Considerable progress has been made with both the Carbon War Room and with the Clinton Foundation (see below).

PARTIALLY COMPLETED

Outputs As specified in the ToR (in blue) methods, achievement, and completion below each output:

A. A revised detailed proposal for submission to SPREP for submission to the donors. The work schedule was packed with desk research, communications and discussion with

potential donors and support organizations following the notification from ADB to not support the CIF submission.

The workshop was formulated as a Brainstorming Session with SPREP representatives and the company representatives of the four project proposals.

One additional proposal was brought forward by Fr. Ben, a local Minister who has developed a waste separation project for household refuse to be separated, collected and recycled appropriately.

Although the project will not specifically complete applications for funding, the groundwork is in place for this to now proceed.

The project will however develop an outline of a publishable paper on the experience and lessons learned from the GCCA support in July 2013 and April 2014. This could potentially be distributed at the SIDS Conference in early September should SPREP decide to proceed with the development of the full paper (it could potentially be included in the various SPREP contributions to the September SIDS Conference in Samoa)8. (See the outline in the attachments).

COMPLETED (IN PROGRESS AT 24 MAY, TO BE COMPLETED FOR THE SIDS CONFERENCE AT THE DISCRETION OF SPREP)

B. Mission report, including inputs and outputs of regional workshop and participants’ evaluation of the workshop It was agreed the consultant would prepare a draft paper on climate financing for clean

energy and recycling in small island states in collaboration with SPREP (Climate Change 8 A solid set of commitments to the SIDS Conference meant that it was not possible for the Climate Change Unit to complete this paper in time. It is hoped that there may still be an opportunity to finalize this paper with SPREP in due course as a peer-reviewed publishable paper. The consultant is willing to assist with this publication in his own time, together with SPREP co-authoring the paper. This discussion is continuing with SPREP at this time (September 2014).



Division and other relevant technical persons) for publication and/or presentation to the SIDS Conference in September 2014.

First draft outline for review to be forwarded by Thursday 29 May 2014.

FINAL DRAFT TO BE COMPLETED AFTER THE SIDS CONFERENCE IN SEPTEMBER.

Note: both these outputs were postponed until after the SIDS conference in the first week of September, in the hope that there would be some support for small scale initiatives such as what the Samoa consortium has developed.

Additional OutputsIn addition to those specified in the Terms of Reference and as a result of the re-orientation of the project, the following outputs were achieved during the consultancy:

Draft Value Proposition (prepared for the Director is the Island Programme9, CWR Multiple correspondences with ADB and various donors Complete Workshop design, arrangement, facilitation, presentations and reporting Draft paper outline: “Risk, clean energy and climate finance for small island states”

4.0 Workshop: Climate Finance for Samoa - Brainstorming Workshop Wednesday 23 April 2014

The Workshop was held in the Conference rooms of the Sanalei Hotel. Transport was provided by SPREP, the venue costs were covered by the GCCA project. The note taker assigned to preparing minutes of the meeting lost the data and was unable to provide us with a thorough record of the workshop. The complete list of attendees is included in the Workshop information in the Appendix.

Our collective objective: (distributed the day after the Workshop)

To adopt a comprehensive approach to clean energy and recycling (reducing carbon emissions and eliminating fossil fuel reliance) in Samoa and the Pacific Island States.

Dear All,

1. Thanks...

Firstly, my sincere thanks to all of you for your attendance and contributions to yesterdays working session on climate finance for Samoa and other Pacific islands. It was a very positive day given your collective responses and the richness of the discussions. Just the simple sharing of information made the day valuable to all.

2. Notes ... Private Sector Climate Business Consortium

Enclosed are the three pages of my notes from your brainstorming on the value and possibilities of forming a consortium amongst the private sector in Samoa to provide a stronger platform to garner support for the clean energy initiatives we have on the table already. I will elaborate more on this in the Workshop summary I will complete in the coming days.

Naifo: ... thanks for passing on your notes when you get a chance, cheers.

9 Justin Locke, Director of Islands, Carbon War Room, Washington DC, USA



3. Summary of Discussions

As indicated, I will try to complete draft of this for your inputs and comments in the coming days and forward to all.

4. Presentations

Enclosed are all my presentations from yesterday. Could everyone please forward to me their slides from yesterday as they will help as we develop the initial draft of the NAMA Facility submission. I will figure out a way to share these with everyone.

5. Evaluation and Feedback

I will send through separately a quick evaluation form to feed back to the EU donor supporting us with this initiative.

6. Results

Four projects: We have four separate individual private sector projects no on the table of varying scales of operation.

Consortium: There seemed to be pretty solid support for the consortium idea, combining forces for a collective voice that is of value, particularly going after the funding options we have identified as most promising.

Climate Finance Donors: We have identified three key potential donors as follows:

The Clinton Foundation

The Carbon War Room

The NAMA Facility

7. Update

Just quickly, Espen informed me yesterday that he will be meeting with the Carbon War Room group this morning in NY.

8. Next Steps

I will be heading home on Monday but will support things for about another eight days or so from home. Once Espen returns, we will see how best to support the consortium formation and various application/submission processes we have now confirmed.

Thanks again for your inputs and positive contributions. It has been my pleasure to work with you all. I believe we have a very positive future for clean energy and recycling for Samoa, and for Samoa to be the shining light in the Pacific for this comprehensive approach to clean energy, reducing carbon emission and substituting clean energy sources for fossil fuels.

Best regards, Scott

Contents of the Resources Documentation April 2014-05-29

The following is a list of all documentation generated over the course of the project, March to June 2014. It is intended that this information will form a useful resource of to continued efforts to generate interest and financing for the initiatives developed since July 2013 with the support of the



GCCA (Technical Assistance to the GCCA Climate Support Facility under the 10th EDF Intra-ACP Financial Framework FED/2012/292-331).

Scott Cunliffe 12 May 2014, Revised 12 July 2014



Appendix

1. Draft Outline Proposal for initial consideration of ADB for the CIF submission

2. Week One Update - 9 April 2014

3. ADB response to the submission 10 April 2014

4. ADB Management Response (July 2014)

5. Workshop – Outline and Evaluations

6. Work plan draft 24 March 2014

7. Draft Outline Paper on: “Risk, clean energy and climate finance for small island states – a case discussion from Samoa”

8. Terms of Reference for the Consultancy (including realignment)



Appendix 1. Draft Outline Proposal for initial consideration of ADB for the CIF submission

Pilot Programme for Climate ResiliencePacific Regional Track

Project Concept Note for the Use of Resourcesfrom the PPCR Competitive Set-Aside Round II

Prepared by SPREP for ADB


Climate Resilient and Sustainable Drinking Water

Supply for Small Island Households and Small Business


6 April 2014





DRAFT FOR DISCUSSION ONLY 4 April 2014

1. Country/Region: Samoa 2. CIF Project ID#: TBD

3. Project/Program Title: Climate Resilient and Sustainable Drinking Water Supply for

Small Island Households and Small Businesses

4. Date of Endorsement of the Investment Plan:

SPCR Regional Track Investment Plan – April 2014

5. Funding Request (in million USD equivalent):

Non-Grant (loan, equity, guarantee, etc.):USD$ … m

6. Implementing MDB(s):

ADB Private sector arm Public sector arm

7. Executing Agency: Secretariat for the Regional Environment Programme (SPREP)

TTL: Espen Ronneberg

8. MDB Focal Point and Project/Program Task Team Leader (TTL):

Headquarters- Focal Point: Cinzia Losenno TTL: Loretta Rufo

I. Project/Program DescriptionProvide a summary description of the project, objectives, and expected outcomes. Also, provide information whether this will be a solely private sector project, a PPP, or a public sector project financing private sector entities.

Climate Resilient and Sustainable Drinking Water Supplyfor Small Island Households and Small Businesses

i) Introduction The project addresses the steady reduction in potable ground water, water supply for coastal,

rural and isolated communities and a sustainable reduction in the cost or potable water available to urban communities.

In short, the sun acts to assist the distillation of pure drinking water from polluted or contaminated water (including salt water) using a patented panel (2.2m x 1.0m) that looks like a solar panel. The polluted water is gravity fed at the top and pure water is collected at the bottom. That’s it.

The innovation of this technology is multifaceted. Primarily, it can take water with a high level of pollutants (including sea water, household liquid waste, rainwater, polluted fresh water) and purify it (gravity feed) using the sun’s energy to produce potable distilled water and salt, an additional marketable by-product. A single panel costing about $400 can supply a household with around twenty litres per day of pure uncontaminated drinking water for a minimum of ten years (likely twenty to twenty-five years as testing continues).

The project is developed with two main components: a) a commercial water farm in two locations to provide more affordable safe drinking water to communities using bottled water in the key urban areas, and b) a microfinance institution managed community drinking water project for family and community drinking water supply through the 310 village network.

MOUs established between partners, largely Samoa based, options to expand to Tonga and Solomon Islands, further investigations required to expand to PNG.



Unique to this project will be the technical oversight, management and collaboration provided by SPREP utilizing their collective capacity to provide technical support throughout implementation. This technical backstopping will be led by the SPREP Climate Change Team with coordination support from their Monitoring and Evaluation Unit. SPREP is already involved in two project initiatives under the Pacific Regional SPCR project managed by the Asian Development Bank.This project is driven by three main goals, supported by various specific objectives outlined in the logical framework matrix below (concept note format):

1. innovation2. sustainability, and 3. the special needs of small islands.

This project comprises a number of components under the theme of building climate resilience with resilient infrastructure investment that will develop and sustain new water resources for the Pacific Island Countries, starting with Samoa with plans to extend to all the three Pacific SPCR countries.The proposal is 100% private sector.EXPLAIN MORE … SC

ii) Direct Links to the SPCR Investment ObjectivesFirst and foremost, the programme provides opportunities to support and strengthen the PPCR objectives of the National SPCR projects as well as all three components of the Pacific Regional Track SPCR. More specifically, the proposed investments will:

provide opportunities to build climate resilience capacity in three PPCR countries and the other eleven countries of the Pacific

contribute to mainstreaming climate resilience, particularly to Government and the private sector through respective Chambers of Commerce

provide solid, practical applications of climate resilience building in key economic and humanitarian sectors;

link directly to Components One and Three led by SPREP with close connections to Component Two of the Regional Track;

address real rather than perceived needs of communities needing new tools and practices to minimize the adverse impacts of climate change on the mostly coastal populations of the Pacific.

(ref. SPCR objectives …. SC)

iii) Outline of the project: Climate Resilient and Sustainable Drinking Water Supply

for Small Island Households and Small BusinessesPotable Water Sector Rationale Extreme weather events, irregular rainfall (with resulting floods and droughts), changing

weather patterns and saltwater intrusion will all have significant impacts on agriculture production and food security. This will have follow-on effects on diet (with more reliance on imported, often less healthy, foods) and livelihoods/income for families relying on agriculture for their existence. Some farmers already have been forced to grow crops (e.g., taro) in raised tin containers, and some of the smaller islands have lost coconut palms to saline intrusion.

These changes also affect the secure supply of potable water. The combination of changes in rainfall patterns and saline intrusion has a large impact in freshwater supplies. Climate change models indicate that these effects will be more significant in the future.



For example, a possible 10% reduction in average rainfall by 2050 for Kiribati would lead to a 20% reduction in the size of the freshwater lens on Tarawa Atoll10.

The water sector in the Pacific has received increasing attention in recent years as a result of growing stresses on potable water supplies due to both rapid urban population growth and expanding needs of rural populations. The purchase of potable drinking water is often a major component of household expenditures (estimated at US1095.00 per annum in urban areas) given the suggested need to boil the water for drinking that is currently delivered through the existing reticulated water supply system in the capital, Apia as well as in rural areas. Reticulated water in rural areas is currently not treated or purified.

The competition for water resources in the Fuluasou and Vaisigano water catchments around Apia, is critical. Both public water supply and public energy supply are provided by the same two river systems. Hydropower operations in Fuluasou river catchment is now non-operational due to insufficient water quality and complete infilling of the intake reservoir with sediment.

Three major drinking water suppliers in Apia are delivering:a) low consumption volumes of artesian spring water (untreated, potable, around

Tala$1 per litre)) and b) high energy consuming reverse osmosis purification process (most common,

delivered in twenty litre plastic bottles for around Tala$0.35 cents per litre). Surface water and groundwater are the only sources of water used for water supply

provision, with the exception of rainwater harvesting practiced widely in the Falealupo Peninsula and in otherwise isolated and rural households. Surface water provides approximately 65% of the water supply and groundwater 35%. There is no known water quality monitoring for wastewater-associated pollution11. Investigations conducted in 2007 indicated the following priority issues: Severe degradation of catchment zone - water quality and quantity, pollution

(eutrophication, suspended solids in the Apia Catchment) Reduction in stream flow or quality (in the Tafa'igata Aquifer) Salinisation of ground water (Faleolo Aquifer) Pollution (agro-chemical, Togitogiga Catchment) Reduction in stream flow (Irrigation -Tanumalala/Aleisa)

Future demand for accessible, affordable and safe drinking water is a critical concern in Samoa. The situation in Tonga and PNG is envisaged to be similar12. The proposal therefore addresses the need for climate resilient basic services and critical infrastructure provision to both rural and urban populations. This investment will provide an affordable, low-tech, low maintenance source of potable water to urban and rural populations further minimizing stresses on increasingly saline ground water aquifer sources and reduced surface flows. The detailed proposal included in the Resource Text (under separate cover) outlines a clear economic rationale to support this innovation.

10 Pacific Regional: Strategic Program for Climate Resilience (SPCR), Approved 30 April 2013, page 38.11 SOPAC Water, Sanitation and Hygiene: http://www.pacificwater.org/pages.cfm/country-information/samoa.html12 This is as yet to be verified. The initial project concept note for submission on 15 August will include a small number of necessary follow-up investigations needed to finalise the technical and organizational components of the proposal.



Potable Water Delivery MechanismsDescribed in more detail in Part III, b) Innovation, the two proposed delivery systems are important to the rationale, why it should receive the funding and how it will advance the SPCR objectives.There are two primary stages to develop this innovative technology, supported by equally innovative delivery systems. In short,

Phase One will utilize the majority of the loan to develop the two water farms on Upolu and Savai’i islands (the two largest Samoan islands). Revenue streams from this venture will partially subsidise13 the purchase of family-sized or community-sized purification panels in Phase Two.

Phase Two: An established and respected micro finance institution in Samoa will manage small loans to women’s groups to purchase outright the water purification panels. Women will effectively take charge of drinking water production, possible sale and community delivery in rural areas.

An alternative to the Phase Two above would be to partially break up the loan to the water company to include a direct loan to the microfinance organization as a low risk loan with an agreed amortization period14.

(exec summary of project, outcomes, sustainability etc. …. SC)

II. Context and marketProvide brief explanation of country/sector context and an overview of the market (product nature, supply and demand status, prices, and competition. In the absence of other comparable products, provide a brief explanation on how the proposed product will substitute for existing products and the benefits from a climate standpoint, and the prospects of commercial viability. If proposing a new business model, provide information of comparable to business as usual). Also, provide an overview of current market barriers and how will they be reversed by the proposed project.

i) Country context and rationale At this stage Samoa does not have any commercial biogas digestion projects on this

scale. This means that much of the green waste and sewage is disposed of in landfill. With the biogas technology that is currently available the majority if not all of this waste can be recovered and converted into valuable alternative energy and fertilizer products. The local impacts to Samoa are significant in terms of environmental sustainability, clean energy, and sustainable fertilizer, lower costs of fertilizers and energy as well as direct and indirect employment. This makes this project particularly important and valuable to Samoa and the Samoan community.

Due to the high cost of LPG in Samoa, the financial viability of such a project is forecast to be very high. The only limiting factor for the private sector to become involved in this type of venture is the high initial investment costs and the lack of financial instruments in the current finance sector to permit such a project to go ahead.

Given the very nature of disparate small island states of the Pacific Island Countries (PICs), and their limited capacity to responsibly dispose of the accelerating volumes of solid and liquid biological waste, there exists a significant demand and need for cleaner,

13 Actual subsidy to be determined once the business case is prepared and revenue forecasts clearly determined.14 The Micro finance company SPBD, has a 12 year respected history in the region with an enviable default percentage of less than one percent (http://www.spbdmicrofinance.com/).



cheaper and a more environmentally responsible means of recycling this rich waste that is currently being wasted. Building climate resilience must rely on this kind of initiative that minimized waste, maximizes the use of recyclable organic waste and thus minimizing GHG emissions whilst contributing to greater food security from increased agricultural production that utilizes rich organic fertilizers.

This is precisely the situation in Samoa and the other SPCR countries (Samoa, PNG and Tonga), and indeed in virtually all the island states of the Pacific.

The PPCR concessional loan will be fully utilized in the first 12 months of implementation. It is estimated that over the next three years, the project proponents will continue their research and development of the product (and raw materials consumption) utilizing this initial pilot testing, in view of further installations in years two and three of viable recycling infrastructure to address specific deficits that exist in Tonga and PNG. Expected return on the investment will be realised in three to five years for this project.

In addition to these benefits, installation of a commercial facility can be achieved with the guidelines for acceptable projects. ???

NEED MORE COUNTRY CONTEXT, WHAT IS RECYCLED, WHAT IS NOT RECYCLED, POTENTIAL ETC. Samoa and Pacific in general – SC see refs from SPREP

ii) The market for clean potable water and organic salt (incl. market barriers and how to overcome these)

Potable Water Market in Samoa There is about 140,000 rural people but only about 20 % can afford to buy bottle water ,

about 60 + % of the 40,000 urban people buy bottle water, therefore the current market is estimated at 159,000 litres per day which equates to a sales value of US31,800.00 per day ie 11.6 mill PA with an estimated cost per family is US1095.00 Per year

The bottle water is currently produced by various methods including RO which requires large amounts of energy which is produced in some cases by diesel generators, the solar water farms will provide the opportunity for 18 % of this water to be substituted with a sustainable water supply.

The market is divided into 4 segments:o Direct sales of panels utilizing micro finance , estimated sales of 1000 -2500 per year

o Sales of panels to non micro finance customers 500 per annum, these combined sales are targeting the 28,000 rural house holds including those that are currently economically excluded being able to purchase bottle water

o Sale of bottled water in 20 litre containers will be wholesale at US$2.00 per bottle allowing for a distribution margin for the current bottle manufactures of over $2.00 per Bottle.

o Sales of Bulk water at the 2 water farm location of 118,000 litres per day from each site at $2.00 per 1000ltrs. The site of the water farm will be identified to sell this bulk water

o Income is further supplemented by the sale of salt 1470 tonne per year at US150.00 per tonne replacing the current import of salt and creating a new industry in Samoa

Our production cost of distilled water is less than US$2.00 per 1000 litres with minimal operational costs , current bottled water production require a RO and possible de



ionising this is estimated at a minimum of 1 WKH per 1000 litres including use of chemicals and creating a reject stream into the environment.

In relation to bulk water it eliminates the infrastructure cost and the purification processors , in relation to house hold the Carocell replaces the need to boil water saving as much as 4tonne of CO 2 emission per household per year. There are multi benefit in relation to sustainability including sickness from water borne disease , improved productivity , hygienic personal washing.

NEED MORE on MARKET barriers for water, WHAT IS AVAILABLE, WHAT IS NEEDED, POTENTIAL GROWTH ETC.

iii) The benefits and commercial viability(subsititute for existing products?)

iv) The business model - Potable Water Technology F Cubed is dedicated to being the global leader in producing and delivering cutting edge

direct solar water processing technologies, cost effective strategies and sustainable innovation for the world’s most precious resource, WATER.

F Cubed’s unique technology is a solution to the world’s water issues only using natural renewable solar energy. F Cubed panels produces pure clean drinking water, from any feed water source by bio-mimicking the natural water cycle of evaporation and condensation; also producing a secondary water supply of UV disinfected, heated, and filtered water, precipitating inorganic compounds and leaving no waste. Each panel (20-year operating lifecycle) treats an average of 60 liters per day of unusable water, exceeding WHO drinking water standards, leaving zero carbon footprint. Modular in design the unit can operate as a single unit or multi units.

The Carocell direct solar desalination system has been developed over an 8-year period with commercial sales in the last 2 years; the product is being exported to over 30 countries.

III. Project description and Innovation

a. Project DescriptionDescribe the project’s objectives and activities

SC - development outcome driving the logframe

b, Innovative Support and Monitoring and Management – SPREP15

SPREP will provide guidance to all the projects under an innovative combination of: linking monitoring and reporting to the production and dissemination of practical

knowledge products; recording and sharing lessons learned amongst all Pacific member countries; creating links to existing and planned regional and national initiatives on climate

change and adaptation; as executing agency for aspects of the Regional SPCR, to link the private sector

projects to SPCR intended outcomes on a day to day basis, and15 See attached background material on SPREP capacity and capability statement.



to provide overall technical backstopping where possible and necessary.(See Innovation Section below).

b. Innovation how the project is innovative in terms of technology, business model, financial instruments or structure, market creation, and/or new partnerships, and how the innovation will add value to the project. The level of innovation proposed needs to be justified in the country- or sector-specific context of the proposal.

SC - the added value of innovation?

The project proponents acknowledge the importance of the word “innovation” in the criteria and intended outcomes of this seed funding from the CIF. If there is one aspect of this proposed programme that will be exemplary, it is clearly the collective innovation and creativity with which this proposal has been developed. It is not simply the technologies or business model; the innovation is part of all aspects of design, development, management and implementation including:

innovative science and technologies in the water resources technology;

innovative management systems linking M+E to reporting, knowledge management, publications and communications needs of the projects (SPREP);

making direct linkages between the project technologies (and project implementation) to the scientists, current research throughout the Pacific and the existing network of SPREP to ensure applicability, replicability and possible inclusion in regional level projects managed and implemented by SPREP;

mainstreaming these initiatives through the business community represented by the Chambers of Commerce, utilizing this resource to also provide climate change resource persons at strategic locations throughout the project implementation.

Potable Water Innovation F Cubed is a global leader in direct solar desalination technology , the technology allows

the processing of any sources water and is multi-functional utilizing the Carocell panels allows the implementation of water processing at Point of Use ( Households) to large scale water farms given it modular nature.

The Carocell technology produces 3 usable water sources , distilled water , disinfected flow through water and rain water harvesting. It can be utilized for processing sea water contaminated water and waste water including sewage.

By utilizing the unique zero liquid discharge capabilities, salt is produced as a available by product when processing seawater

This project encompasses multiple aspects of the technologies used utilizing the micro finance facility to provide distilled ,disinfected water and rain water collection to the under severed rural population representing 28,000 house holds .

Establishing a sales distribution and manufacturing Joint Venture company with a local partner for sales ,training and operation of the 2 water farms, the water farms consist of 1 HA of panels plus evaporation channels for salt production and a bottling plant for 20 ltr



bottles and infrastructure to deliver bulk water to the immediate neighbourhood , 1 farm is to be location on Upolu and the other to be located on Savaii

It is envisaged that this business model can be rolled out across the pacific nations providing them with a totally sustainable and integrated water supply including salt production.

It is proposed that the US 4million dollar loan will be used as follows US 3million dollar to establish the joint venture and the 2 water farms and a further US1 million as a revolving credit line for our micro finance partner SPBD ( South Pacific Business Development) which will be utilized by our POU ( point of use) customers.

As part of the project Preparation Grant Request for the Pacific Regional SPCR16, technical backstopping and monitoring and evaluation activities will be provided by SPREP throughout the course of the initial three years implementation. This will be led by the SPREP Climate Change Team with coordination support from their Monitoring and Evaluation Unit. Unique to this programme will be the technical oversight provided by SPREP utilizing their capacity to provide technical support throughout implementation. This technical backstopping will ensure: Lessons Learned (and knowledge management)

collection of lessons learned, preparation of relevant media for distribution regionally;

Sustainability (and M+E)performance monitoring and evaluation to maintain the implementation processes, ensure replicability for other applications in the region

Technical backstoppingproviding any necessary expertise from the organization where opportunities exist to extend the project beneficiaries, including water resources management, coastal management, pollution control, climate change adaptation etc. linking science and scientists to the developments.

Mainstreaming into the Private SectorAnother unique component of this programme will be the utilization of the existing strong network of Chambers of Commerce in the Pacific. In four key Chamber Headquarters (Samoa, Tonga, Fiji and PNG) a climate change resource person will be placed within the Chamber to provide support to the implementation of Components One and Two of the SPCR (Pacific Track)17 as well as having a ‘mainstreaming’ role to provide information and support to other private sector organizations to build resilience and CCA initiatives. The Chambers will also be the “Champions” of the private sector initiatives funded by the Set-aside. This innovative use of professional networks will likely be a ‘mainstreaming’ methodology not previously utilized in PPCR projects, a model that may well be an important addition to the business model for rolling out these small concessional loans.

16 This will need to be determined with ADB given the shared use of project preparation grants is not that common. If there was an opportunity to request grant funding in support of this aspect of ensuring sustainability of the project, this would be welcomed by SPREP.17 Pacific Regional: Strategic Program for Climate Resilience (SPCR) dated 30 March 2012, approved April 2013.



c. Technology, Product, and/or Business Model: Provide description of the technology, the technology provider if identified, whether it has been tested, commercialized and viable commercially. If the project does not involve a technology, provide a description of the business model and its structure.

d. Sustainability of intended results: Provide information on the likelihood of a project to produce results which can be sustained over time without additional external financial support or have a demonstrative character to be scaled up through markets.

IV. InclusivityProvide information on how the project/program may benefit vulnerable or marginalized groups, and how gender considerations will be addressed to the extent possible, provide information on the population size, degree of vulnerability, and estimated impact on vulnerable populations. SC – can do this …

V. Financial Plan (Indicative)

Source of Funding

(by type of instrument, equity, debt, guarantee, grants, credit lines, etc.)

Amount (USD million equivalent)

Percentage (%)

Project developer $ 0.10 2%

MDBs

PPCR $ 3.8 96%

Local banks

Other investors $ 0.10 2%

Bilaterals

Others

TOTAL $ 4.0 100%

SAMOA WATER AND SALT COMPANY FINANCIAL SUMMARY Establish Joint venture with local partner currently in discussions with Kew Consult Ltd.

Sale of panels /operating the water farms/ logistics. Organise mirco finance for SPBP US1million revolving for finance of 1 panel per

household and micro entrepreneurs for small water sales. Establish 2 x 1 HA Water Farms

Bottle water sales wholesaleBulk Water SupplySalt Production



US $3.0 Million loan from SPCR Employ 16 people in Samoa.

Total Loan Sought from SPCR US $ 4.0 Million

COMPANY REVENUE PROJECTIONSBottled Water Sales

5% people = bottled water 3 litres / per person per day30,000ltrs / day / 20 liter = 1500 Bottles per day @ us$2.00 Wholesale = $3000.00 Gross per Day A$1,095,000.00 per annum

Supply High Quality Bulk WaterProduction per HA + Rain water harvesting = 123,000 litres per day2 x 1 HA water farms = 246,000ltrs – 30,000lts bottled water = 216,000 litres per day216,000 litres per day = 79 mega litres per year @ $2,000.00 = A$158,000.00 Gross rev( 500 litres per day for 432 households) ( 2000 people)

Salt Production Sale of Salt 1470 Tonne @ $150.00 = $220,500.00

ANNUAL GROSS INCOMEBottled Water ( 20 ltr units) $1,095,000.00Bulk Water Supply 79 Megs $ 158,000.00Sale of Salt $ 220,500.00

Total Gross Income $1,473,500.00

VI. Expected Results and Indicators18

Indicator(s) Expected Result(s)

Development Result(s):…

SC to assist

VII. Implementation Arrangements and FeasibilityProvide information on the implementation feasibility of the proposed project and an estimated timeline for PPCR funding and MDB approval (PPCR Sub-Committee and MDB).

SC - add cost benefit analysis, business profit and loss statement projections as well as a realistic timeline

18 These indicators will need to contribute to the five agreed PPCR core indicators which are monitored at the level of the endorsed SPCR.



This Section will be completed following initial ADB due diligence investigations in order to provide information on the implementation feasibility of the proposed projects and a timeline by when the project will start implementation on the ground and when the project will be completed. ADB will also provide the expected PPCR Sub-Committee approval date and the expected MDB Approval date.

VIII. Potential Risks and Mitigation MeasuresWhat are the risks that might prevent the project development outcome(s) from being realized, including but not limited to, political, policy-related, social/stakeholder-related, macro-economic, or financial?

Potential Risks Risk Level

Mitigation Measures

Environmental risk

Lack of quality control (employee performance) results in below acceptable standard of product.

Low Fastidious monitoring of all aspects of production, bottling and distribution operations and maintenance and low tolerance for below average employee performance.

Institutional (policy) risk

Unfavorable attention from legislators unwilling to allow expansion or use of incentives to promote the further use and development of the technology.

Low MOU agreements on tax incentives and licensing

Economic/Financial risk

Lack of technical skills to maintain and expand the implementation of small-scale solar water purification panels elsewhere in the Pacific.

Low to Medium

Good training available to employees, regular monitoring of performance and capability. Employee incentives.

Possible competition of other water products. Low Locally produced product will not incur significant transportation costs; cost effectiveness of on-site water production and bottling. Maintain low cost product delivery with slim profit margins.

Social and physical risk

Potential damage or total loss from storm or other hazard impact including vandalism, fire, flooding etc Medium

to high

Adequate preparedness for potential disaster and hazard impact, evacuation plan prepared, contingency plan for alternate siting if required. Insurance (risk sharing).

. Lack of acceptance of the product for any reasons Low Keep costs of overheads down to keep pricing competitive. Knowledge products available to inform the public of the costs and benefits of the technology for small island states.



Annex I SOLAR WATER PURIFICATION – Full proposal (August 2013, to be updated)

Annex II PRIVATE SECTOR COMPANY INFO.SOLAR WATER PURIFICATION - F-cubed

Annex III PPCR objectives19

19 https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_design_Document_final.pdf



Annex I SOLAR WATER PURIFICATION – Full proposal (August 2013, to be updated)

I. SOLAR WATER PURIFICATIONEstablish a 50 / 50 joint venture company between F Cubed Australian and Kew Consultant Ltd principle Mr Latu Saulutoga Kupa. ( being Negotiated )

The JV company will be responsible for :

1. The Sale and distribution of Carocell Direct Solar Desalination / Purification Panels.2. The establishment of 2 desalination/salt production water farms of 1 HA each site.

1 located on the island of Upolu and the other on the island of Savai’i

Sales & Service of panels(i) Micro finance .

Through a $1million low interest loan facility to SPBD microfinance for the support of local sales of 2500 Carocell 3000 units to individual houses holds and communal Village water Supply in Samoa. A MOU has been Exchanged with SPBD.

(ii) Other direct sales to customers .

Water / Salt Farms Production

Two 1 HA water farms to for the production of pure water and Salt through the processing of Seawater to Zero liquid discharge.

1 Water farm of 1 HA located on Upolu ( area required 2 HA)

1 Water farm of 1 HA located on Savaii ( area required 2 HA)

Volumes for a 1 HA water farm per day

Processing sea water

Producing 53,000 Ltrs of pure water per day ( based on Solar radiation of 20 Mj/m2/day)

Rain water harvesting 70,000 ltrs per day ( based on 2555mm rain fall per year)

Annual Salt production 735 Tonnes/ per/ Annum

COMPANY REVENUE PROJECTIONSBottled Water Sales

5% people = bottled water 3 ltrs / per person per day30,000ltrs / day / 20 ltr = 1500 Bottles per day @ us$2.00 Wholesale = $3000.00 Gross per Day A$1,095,000.00 per annum

Supply High Quality Bulk Water



Production per HA + Rain water harvesting = 123,000 ltrs per day2 x 1 HA water farms = 246,000ltrs – 30,000lts bottled water = 216,000 ltrs perday216,000 ltrs per day = 79 mega litres per year @ $2,000.00 = A$158,000.00 Gross rev( 500 ltrs per day for 432 households) ( 2000 people)

Salt Production

Sale of Salt 1470 Tonne @ $150.00 = $220,500.00

ANNUAL GROSS INCOMEBottled Water ( 20 ltr units) $1,095,000.00Bulk Water Supply 79 Megs $ 158,000.00Sale of Salt $ 220,500.00

Total Gross Income $1,473,500.00

PANEL SALES2 Options(i) 1000 Panels through Micro Finance(ii) 2500 Panels through Micro Finance

Sales of Carocell units: in USDRetail : 1st Year Sales Plan ( Min – Max)(i)1000 Microfinance+ 500 Retail from JV Total 1500(ii)2500 Microfinance + 500 Retail From JV Total 3000

Selling price $400.00CIF Cost + 15 % ( Vagst)$270.00 + $40.50 $ 310.50 + installed cost

Gross profit $89.50 per Carocell unit

REVENUE SUMMARYRevenue

(i) Sale of Carocell units 1500 x $89.50 $ 134,250.00(ii) Sale of Carocell Units 3000 x $89.50 $ 268,500.00

Bottle water sales $1,095,000.00Bulk Water Sales $158,000.00Sale of Salt $220,500.00

GROSS REVENUE ON SALES (i) 1,607,750.00(ii) 1,742,000.00

Note all figures are in USD



Employment:

General Manager 1 30 k

Admin Manager 1 10k

Admin Assistant 1 10k

Logistics Manger 1 4 k

Assistant 1 4 k

Salt Farm

Farm Manager 2 10 k

Production 4 4 k Salt harvesting and Bottling

Sales Person 3 30 k ( 1 water , 1 salt , 1 Panels)

Panel Installers 2 8 k

TOTAL 16 people average salary 100 K

SAMOA WATER AND SALT COMPANY SUMMARY

Establish Joint venture with local partner currently in discussions with Kew Consult Ltd. Sale of panels /operating the water farms/ logistics.

Organise mirco finance for SPBP US1million revolving for finance of 1 panel per household and micro entrepreneurs for small water sales.

Establish 2 x 1 HA Water Farms

Bottle water sales wholesale

Bulk Water Supply

Salt Production

US $3.0 Million loan from SPCR

Employ 16 people in Samoa. Total Loan Sought from SPCR US $ 4.0 Million

THE DRAFT MOU BETWEEN F-CUBED AND THE MICROFINANCE INSTITUTION SPBD IS ENCLOSED BELOW.









Annex II PRIVATE SECTOR COMPANY INFO.SOLAR WATER PURIFICATION - F-cubed

http://www.fcubed.com.au/aspx/home.aspx

SOLAR WATER PURIFIER & SOLAR DESALINATION TECHNOLOGY

F CUBED was established in 2004 to develop Solar Thermal Desalination, Zero Liquid Discharge (ZLD) and Solar Water Treatment Systems. The system meets the overwhelming need for clean drinking water, producing pure water from saline or polluted sources. In most situations it does this at a much lower cost than conventional systems (reverse osmosis technology) with, most importantly, zero liquid discharge (ZLD).The company has spent the past five years investing in research and development for a unique desalination unit powered entirely by the sun, to be known as Carocell. The business is now dealing with offices in over 20 countries.With no power source required, no expensive parts and minimal maintenance and the enormous benefits to industry and from a global humanitarian perspective, the product has already attracted a significant amount of interest from overseas markets without any active marketing.

The company and its staff are passionate about the conservation of water and are committed to helping preserve the precious resource.F CUBED is an Australian owned, global company, dedicated to the conservation, production and processing of the worlds most critical resource, water through solar desalination process & efficient water purification systems like solar water purifiers. Carocell solar desalinating / purification technology is the most efficient and cost effective system of its kind, producing pure, clean drinking water on any scale from any water source.


http://www.fcubed.com.au/aspx/home.aspx


F CUBED Australia Pty Ltd 23 Fillo DriveSomertonVictoriaAustralia3062

National sales and administration: (+61) 3 8339 0006Facsimile: (+61) 3 8339 0083

F CUBED International PO Box 25UnleySouth AustraliaAustralia5061

Peter Johnstone – Founder F CUBED (Australia) Pty Ltd was established in 2004, by Peter Johnstone. Peter Johnstone is the CEO and Chairman of F CUBED.Peter was previously the Chief Executive Officer and Founder of Integrated Packaging, one of the largest manufacturer of adhesive plastic film in Australia and New Zealand for 20 years, culminating in a wealth of industry knowledge and experience. He played a pivotal role as inventor and driver of several innovative products such as the patented Round Bale Silage wrapping, the patented Cold Orientation Process (producing extremely thin films with increased mechanical properties and UV life) and the patented X Tend (an ultra thin film for covering crops to increase productivity and reduce the amount of water irrigation required to produce a crop).During this time, Peter was involved with several Greenfield start-ups, in Australia, New Zealand and Ireland as well as negotiating a number of complex joint ventures and licensing agreements.Peter and his dedicated global team of professionals have developed what is arguably one of the greenest and most efficient solar technologies available. F CUBED is proud to provide a solution for the world's growing water crisis.



Annex III PPCR objectives20

II. PURPOSE AND OBJECTIVES21

2. Pursuant to the terms of the SCF Governance Framework Document, PPCR will be established under the SCF as a SCF Program. The terms set out hereunder will supplement the terms of the SCF Governance Framework Document in respect of the operations and activities of the PPCR. Capitalized terms appearing herein, but not otherwise defined, shall have the same meaning as that ascribed to them in the SCF Governance Framework Document. In the event of any conflict between any provision of this document and any provision of the SCF Governance Framework Document, the provisions of the SCF Governance Framework Document will prevail.

3. The objective of the PPCR is to pilot and demonstrate ways to integrate climate risk and resilience into core development planning, whiles complementing other ongoing activities. The pilot programs implemented under the PPCR should be country led, build on National Adaptation Programs of Action and other relevant country studies and strategies, and be strategically aligned with the Adaptation Fund and other donor funded activities to provide pilot finance in the short term so as to learn lessons that will be useful in designing scaled up adaptation financing.

4. The PPCR aims to contribute to achieving the objectives of the SCF by seeking to provide incentives for scaled-up action and transformational change in integrating consideration of climate resilience in national development planning consistent with poverty reduction and sustainable development goals.

Objectives of the SPCR22

This SPCR will achieve ―transformational‖ change by supporting more effective integration of CCA and related DRR to enable Pacific island countries to become resilient to climate change and climate-related disasters.

The overall outcome of the SPCR will be to improve participating countries‘ resilience to climate change and climate-related disasters through strengthened capacity, increased knowledge and information, and better access to finance and technical support to address CCA and DRR.

The SPCR will address key barriers to this transformation in Pacific island countries, including limited capacity and effective coordination mechanisms at all levels, limited knowledge and technology, limited finance, and challenges in accessing climate change financing.

Based on PPCR guidelines, the regional SPCR focuses on activities that are relevant to the region and best implemented on a regional basis. These include providing support to Pacific island countries, including pilot countries, in the form of advice and information, training, regional mentoring and monitoring, coordination, and helping to share lessons learned and best practices. It will also promote replication, scaling-up, and leveraging of potential and critical investments.

20 https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_design_Document_final.pdf21 THE PILOT PROGRAM FOR CLIMATE RESILIENCE FUND UNDER THE STRATEGIC CLIMATE FUND, Climate Investment Funs, December 2011, p. 3.22 http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience _Pacific_Regional_Track.pdf


http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience%20_Pacific_Regional_Track.pdf

http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience%20_Pacific_Regional_Track.pdf


Three components as follows:

Component 1: mainstreaming CCA and related DRR into national and local development policies and plans. This will enable countries to collect knowledge and analyze and evaluate it, and identify best models and methodologies for replication and scaling-up.

Component 2: identifying and implementing practical CCA and related DRR knowledge and experience. Regional experts will be deployed into selected Pacific island countries to guide the integration of CCA/DRR into sectoral plans, focusing on infrastructure development (coastal, including physical planning/water) and food security (food production/oceanic fisheries).

Component 3: building and supporting Pacific Island Countries‘ capacity to respond to climate change risks. A network of experts will be established under a regional technical support mechanism (RTSM) to provide on-demand advice and capacity building in CCA and DRR in all 14 Pacific island countries. This service will be particularly important for the smaller countries with the most severe capacity constraints.

Component 1

Mainstreaming Climate Change Adaptation and Disaster Risk Reduction into National and Local Development Policies and Planning

Lead Agency: This component will be led by the Secretariat of the Pacific Environment Programme (SPREP).

Objectives

The overall objective is to increase the climate resilience of Pacific island countries by strengthening their capacity to mainstream climate change and related disaster risks into development planning processes, policies, and plans. The specific objectives are to

o mainstream integrated CCA and related DRR considerations into sector planning processes, decision making, and resource allocations linked to national development planning processes;

o develop tailor-made tools for mainstreaming CCA and related DRR specific to each participating country and target sectors;

o build awareness and understanding of climate drivers, climate variability, and climate change consequences and impacts, and the role of these in adaptation and disaster risk management to underpin mainstreaming;

o build capacity in the use and application of CCA and related DRR tools; and strengthen institutional arrangements and policy support for mainstreaming at the sector level linked to national development processes.

Component 2

Identify and Implement Practical Climate Change Adaptation and Disaster Risk Reduction Knowledge and Experience

Lead Agency: Two agencies will lead component 2, the Secretariat of the Pacific Community (SPC) and the Pacific Islands Forum Fisheries Agency (FFA).



Objectives: The overall objective is to improve the use of local, national, and regional knowledge and information on CCA and related DRR in order to strengthen the capacity of Pacific island countries to manage climate change risks to food security and critical infrastructure.

Specifically, component 2 aims to build and strengthen the national capacity of all participating Pacific island countries to understand and implement an integrated CCA and related DRR approach in key sectors. This will be achieved by helping them access, analyze, and manage the essential information, and develop and implement JNAPs or their equivalent to enable effective CCA decision making. Activities under this component will also assist in building competencies in the use of appropriate management tools. These will respond to climate risks associated with coastal zone management, drinking water resources, agriculture, and oceanic fisheries. The activities will underpin the JNAPs or equivalent being developed through Component 1.

Component 3

Building and Supporting Pacific Island Countries’ Capacity to Respond to Climate Change Risks

Lead Agency This component will be led by the Pacific Islands Forum Secretariat (PIFS).

Objective: The overall objective is to develop a regional technical support mechanism (RTSM) that would support and strengthen countries‘ capacities to respond effectively to climate change risks in the context of national development priorities.



Appendix 2. Week One Update - 9 April 2014

The following was forwarded to Just to update you on progress to date for the first week of activities in Samoa, the following tasks have commenced as per the WO41 requirements:

1. WORK PLAN draft work plan for the project (to be finalised on Saturday).

Preliminary discussions on the workshop organization has commenced.

Dates for possible visit to Manila not yet determined (waiting for ADB response on pre-feasibility and other inquiries.

2. ASIAN DEVELOPMENT BANK initial discussions with ADB on CIF and other funding mechanisms

applicable to small island states' initiatives from the private sector for building climate resilience.

We are awaiting a decision from ADB on their pre-feasibility assessment prior to proceeding to the full proposal in CIF prescribed format.

Access to the Canadian Climate Change Fund for the Private Sector in Asia is limited to existing ADB projects as supplementary funds (up to a maximum of 25% of total project sum) and may not be appropriate for our relatively small scale needs in Samoa.

Other avenues of financing ( some of ADB's other resources/activities) are being investigated with the assistance of the climate financing and private sector unit of the Bank.

A new team has taken over responsibility for PPCR coordination (Focal Point - team leader).

To be clear, the ADB have not yet provided us with firm confirmation that they will forward any of our proposals to the CIF AU for consideration prior to the 30 April deadline.

3. PROPOSAL PREPARATIONS Earlier draft materials have been forwarded to ADB.

A draft of one project (sustainable water supply) has been prepared and forwarded to ADB for consideration and pre-feasibility assessment.

Work on both of the clean energy projects has commenced to update and repackage these projects.

4. PRIVATE SECTOR PARTNERS Most of the previously identified private sector partners have been

contacted for preliminary discussions on the current activities supported by



the GCCA.

Some proponents have progressed with their initiatives including an application for research and development funding for the biofuel project.

The water project consortium have been active elsewhere in the Pacific with solar filtration panel installation, to be expanded in the near future.

5. CLIMATE FINANCE OPPORTUNITIES A number of additional climate financing opportunities have been

investigated and will be followed up dependent upon ADB's decision regarding the CIF Set Aside funding proposal opportunity (see below).

6. REQUEST FOR CHANGES TO WO41 Dependent upon the response from ADB regarding their pre-feasibility

assessment of proposed projects and the subsequent decision to submit one or more proposals to the CIF for consideration by 30 April, the following is proposed:

o Commence proposal preparations for at least two climate finance organizations (most likely the Carbon War Room and the NAMA Facility)

o Commence drafting a "BUSINESS CASE" for building climate resilience in the Pacific (this will be a baseline for any future climate financing for SPREP)

o Consider the opportunity to develop a longer term "CLEAN ENERGY INITIATIVE FOR THE PACIFIC" that makes best use of SPREP networks, experience and capacities throughout the region, building on such projects and the PACC and other projects related to climate resilience and energy.

Dialogue has been established with the following sources of funding for private sector and climate resilience projects in Samoa:


http://nama-facility.org/news.html



http://www.gcca.eu/

http://www.climatefinanceoptions.org/cfo/

http://www.climatefundsupdate.org/resources/finance

End Week One Update



Appendix 3. ADB response to the submissionFrom: cinzia losenno <[email protected]>Subject: PPCR private sector set aside - Samoa conceptsDate: 10 April 2014 5:18:25 PM GMT+07:00To: Scott Cunliffe <[email protected]>Cc: espen ronneberg <[email protected]>, Loretta Rufo <[email protected]>, don purka

<[email protected]>, david barton <[email protected]>, maria lourdes drilon <[email protected]>, tahir qadri <[email protected]>, KThapar, [email protected]

Dear Scott

Thank you for your enquiry regarding the 6 project ideas for consideration under the PPCR private sector set aside. The project ideas were reviewed also by our private sector colleagues. Unfortunately at this stage, ADB is unable to take these forward.

As we discussed over the phone, PPCR is dedicated to building greater climate resilience, and is focused on climate change adaptation projects. Of the 6 project ideas, 5 are mitigation projects and only one is related to adaptation (solar water purification).

We think this solar water purification proposal would be unlikely to receive funding, and as mentioned, we are not willing to take it forward. From initial assessment it appears there is a need for a clearer argument for its development benefits (with clear demarkation from a subsidy program), an argument for financial sustainability, a business plan, and additional sponsors (ADB typically invests up to 25%). One other key element to consider is how concessional finance can be used to unlock greater investment. If you have a project where a company wants to sell a product into a new market, but users cant afford to pay, then concessional finance becomes a subsidy, and proposals would be unlikely to be approved on this basis. On the other hand, if you can identify potential for scale up, e.g., there is a private sector developer who has a financially sustainable, piloted business model, and needs funding for scale up (with willing commercial co-investors) to strengthen a development sector that has strong potential for growth, then this would have a better chance for receiving funding.

The PPCR website contains more information, and may be useful to see the results from the first round of funding. https://climateinvestmentfunds.org/cif/node/11440 There is also further information on the selection criteria for projects (also listed here below): - Further advancement of the objectives of the endorsed SPCR: the degree to which the proposed project meets the investment criteria for the PPCR; - Level of innovation proposed: this may include innovation in terms of technology, business model, financial instruments or structure. The "level of innovation proposed" needs to be justified in the country- or sector-specific context of the proposal; - Readiness: feasibility of MDB board approval within 9-18 months of PPCR funding approval by the PPCR Sub-Committee. An assessment of readiness may include regulatory framework, institutional capacity or implementation risk; - Level of benefits to vulnerable groups: how the project/program may benefit vulnerable or marginalized groups, and how gender considerations will be taken into account; - Sustainability of intended results: the likelihood of a project to produce results which can be sustained over time without additional external financial support or have a demonstrative character to be scaled up through markets.

Kind regards Cinzia LosennoSenior Environment Specialist (Climate Change Adaptation)Regional and Sustainable

Development DepartmentAsian Development BankTel (632) 632 4996www.adb.org




Appendix 4. ADB Management Response (July 2014)

(not yet received @ 12 September 2014)



Appendix 5. Workshop – Outline and Evaluations

Brainstorming Workshop Outline

CLIMATE FINANCE IN SAMOA AND THE PACIFIC REGION

Wednesday 23 April, Sinalei Resort, 0830hrs to 1300hrs

DRAFT FOR DISCUSSION – TUESDAY 22 APRIL 2014

The Brainstorming Workshop is provided at no cost to participants. It is supported by SPREP Climate Change Division and the EU Global Climate Change Alliance who are also supporting the cost of Dr. Cunliffe’s time in Samoa with SPREP.

BrainstormingWe are therefore proposing that we take a half day next week, either Wednesday or Thursday, to collectively brainstorm the proposal process and get as much of the application done as we can in a half day. It will be sponsored by SPREP and the EU support for this project.

PurposeThe main purpose of this brainstorming is to review what has been done to date and to agree whether or not to move forward with a package of proposals that comprehensively address a range of energy and recycling needs in Samoa and indeed across the Pacific Island states.

More specifically, the purpose is to:

o review existing proposals;

o understand the current initiatives at SPREP;

o brainstorm strengths, weaknesses and opportunities to develop clean energy and recycling facilities in Samoa and elsewhere in the Pacific;

o introduce the current opportunities for climate financing in Samoa and the Pacific;

o complete as much as possible of the NAMA application and other potential requirements.

Format half day, early start

presentations on current situation (SPREP, Scott, three proposals)

open discussion of opportunities and constraints, partnerships, Government

commencement of proposal preparations to NAMA Facility

… next steps, then lunch



Location

The proposal is to have the brainstorming at the Sinalei Hotel (thanks Joe);

Initial feedback is that Wednesday would be best, say 0830hrs to 1300hrs then lunch at the hotel;

Espen and I will prepare the agenda, required inputs, schedule etc. (he is travelling at present);

We will send through confirmation of the above on Easter Monday so you will have it first thing Tuesday morning (although I know Tuesday will be very busy for all.

Expected Outcomes

1. Understanding of the status of work being undertaken to raise capital for climate finance in Samoa and the region (SPREP and private sector)

2. Knowledge of the three initiatives being proposed (status, costs, plans, needs)3. Work plan for NAMA Facility application – consensus to work in partnership, with

Government.

Schedule

o As we only have a half-day, your assistance in arriving on time is most appreciated, thanks.

o Scott will be the facilitator for the discussions. The agenda is flexible, just a guide.

o A short report will be generated and provided to all after the event.

o We are a small group so it will be a good interactive and informal format, but we do want to cover the issues suggested in the schedule/agenda below.

What Time Who Info.

Minibus departs SPREP 0730 hrs Edwin, Scott, Naifo, Alex, Peter

Driver: Elisara 720814

Arrive Sinalei, tea, coffee 0800 hrs All Thanks Joe for hosting the event !!

Session OneOverview of work to date on climate finance

0830 – 0900 Scott Outline Brainstorming, ADB efforts, current options (Pres#1, #2)

Session TwoStatus of the three private sector projects and current initiatives at SPREP

0900 - 1000 1. Nixon (SPREP PIGGAREP)

2. Diane (SPREP PACC+) (arrinvg at 10)

3. Peter (liquid hydrocarbon)

4. Edwin (recycling/fertilizer)

5. Alex/Naifo (tyre recycling + electricity)

Five to ten minute presentation of your project and questions/discussion.

Mr. Posa Skelton will also join us (Biodiversity, Learning – SPREP)

Session ThreeIntroduction to the NAMA Facility financial support process, consensus

1000 - 1030 Scott Overview of the detailed documentation required and guidance



on moving forward resources. (Pres#3, #4)

Morning Tea 1030 - 1100 ALL Sinalei hospitality !

Session FourWork on key components of the application process, timing, tasks, plan of action, Government partnership, and financial proposal.

1100 – 1230

(group presentation by about 1200-1215)

ALL Select key parts of required docs, two groups: i) applications needs, and ii) plan of action to get the job done. (SC Pres#5)

Wrap up and follow up plan (timing) 1230 - 1300 Scott + ALL

LUNCH 1300 - 1400 Sinalei hospitality !

Return home (Minibus departs to SPREP)

1400 ++ ALL

Presentations

Who What How

Scott1. Overview of work to date2. Intro to current options3. NAMA Round 1, timing Round

24. NAMA in Indonesia5. NAMA in Samoa

10 min, slides and handouts

ditto

Nixon SPREP and PIGGAREP 5 to 10 minutes, use slides if you wish, overview and prior NAMA application

Diane SPREP and PACC and other initiatives

5 to 10 minutes, use slides if you wish, overview and other current and planned SPREP initiatives from the Climate Change Division

Edwin Biomass recycling – fertilizer and gasification

5 to 10 minutes, use slides if you wish, overview and status

Alex/Naifo Tyre recycling, electricity generation 5 to 10 minutes, use slides if you wish, overview and status

Peter/Joe Liquid hydrocarbon, gasification and pyrolysis, electricity generation

5 to 10 minutes, use slides if you wish, overview and status

Posa SPREP and Biodiversity programme and learning initiatives

Resource person to provide brief intro to the Biodiversity Division and Learning Networks.

Room Requirements (SC confirmed with Aaron Monday 21 April – quote Tues 22 April)



accommodate say 10 persons table seating if possible facilitator table projector and computer (tech support?) ability to darken the room morning tea and lunch

Participant List

Who Project Email Phone

Scott Cunliffe EU Global Climate Change Alliance and SPREP

Scott Cunliffe <[email protected]>

728 5686

Nixon Kau SPREP - PIGGAREP [email protected] +685 21929 Ext 260

Diane McFadzien SPREP – PACC [email protected] 21929

Edwin Tamasese Biogas, Fertilizer [email protected] 7795462

Peter Beresford-Blood Liquid hydrocarbon, clean electricity

peter beresford-blood <[email protected]>

+685 7785081

Joe Annandale Liquid hydrocarbon, clean electricity

Joe Annandale <[email protected]> +685 25191

Naifo Chang Tyre Recycling, clean electricity Samoa Tyre Recycle Limited <[email protected]>

+685 25871

Alex Chang Tyre Recycling, clean electricity Samoa Tyre Recycle Limited <[email protected]>

+685 7606274

Dr. Posa Skelton SPREP Learning Network, biodiviersity division

[email protected] 21929

Fr. Ben Solid Waste Recycling Advocate and practitioner.

… others? (please let me know asap, thx… SC)

End Outline



Brainstorming Workshop Evaluation

24 April 2014



Five quick questions. Your cooperation to complete this is most appreciated. Let me know if you would like to see the compiled results once all evaluations have been received. Please fill in and send back to me as soon as you can. It should only take you three to four minutes at most. Thanks, Scott

All questions to be rated 1 to 5 (1= poor or strongly disagree, 5= excellent or strongly agree, 3=OK). There is room at the bottom to write a comment if you would like to do that as well. Thanks for your assistance with this.

# Question Score(1 to 5)

1 Was the workshop a useful and important opportunity? 5

2 How were the venue, facilities, and hospitality? 5

3 How was the overall organization and facilitation of the Workshop? 5

4 Was this a useful day? 5

5 Would you recommend there be further opportunities for this group to meet and discuss current and future opportunities to access climate finance?

5

6 Do you think it would be useful to have a presence at the SIDS conference in September (either as a group or individually) to be able to present/showcase your private sector innovations and proposals for clean energy/recycling?

5

7. What are your recommended follow-up actions to this workshop?8. What would you do to improve this kind of working session?


First and foremost, thank you for the unique God-given opportunity to be invited and to participate in this very important seminar.

I feel that the group be officially formed and start formulating what is required to move ahead to fulfill the group’s vision on Climate Change aspects as well as all that were presented to “Keep Samoa Clean” and help our neighboring Pacific Island Nations on similar grounds.

I would definitely look at Government input to support this group with our visions and very important businesses that were presented on that day. Government should have been represented on this important seminar and I therefore recommend their participation in future meetings

I would suggest that this type of very important working session to be run on two or three days, and perhaps a group visit to facilities that are already in operation and make recommendations on improvements. Most importantly to me making approaches to “International Funding Aids” and “Funding Agencies” that were mentioned to assist our group move forward. I also feel meetings should be run six monthly. Once again thank you Scott and to SPREP for this opportunity. God bless.



24 April 2014











5


3

9. What are your recommended follow-up actions to this workshop? To analyze where everyone is with their projects; From this to have an Action Plan as to how to best work out on how to get our foot into climate funds. Emphasize the importance to get Government support before going ahead with any climate funds.

Because without it, it would be a waste of any climate fund(s) time.

10. What would you do to improve this kind of working session?

thanks for your inputs…. SC 24 April 2014


For everyone to have a positive & open mind about the purpose of these sessions and that is to reduce Samoa’s GHG emissions and to make it financially viable to do it. My reason:

Majority of these projects are electricity generation and even though the EOI & Solar Tenders for the EPC are now closed, it is important to note as electricity demand increases in Samoa there is still a chance that others proposals will have a chance of getting in with an opportunity. This still means that the spark to the fire will happen again, it’s only a matter of time.


Workshop Evaluation

24 April 2014





# Question Score (1 to 5)






5


4


… thanks for your inputs…. SC 24 April 2014


(add a page if you need additional space)



24 April 2014











5


5


… thanks for your inputs…. SC 24 April 2014


7. Agreement for the group to work together (have a Letter of Agreement) - which does not obligate them to commit anything but at least to agree to work together on common issues. Engage more with the Government and other stakeholders so that new ideas and solutions could be discussed/shared.

8. Develop the agenda early and get feedback - and have more discussion. For the short period I was there - I found the morning tea session valuable and I was able to gauge more of the issues. Many of the things that were constraints - wasn't mentioned during the 'formal' presentations but was freely discussed during morning tea. Have formal parts (e.g. presentations/updates/progress, etc.) and then a free flow session (no recording - no minutes - but a candid discussion where everyone can ask 'silly' questions and suggest 'silly' answers). Only when there's an agreement that an issue is so important then - that could be captured for future discussions.


Appendix 6. Work plan draft 24 March 201423

DRAFT for Discussion

PROJECT TITLE: Work Order 41 - Strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities in the Pacific24

Scott CunliffeSenior Advisor, Climate Resilience and Climate Finance First Draft 24 March 2014

Revised 12 April 2014

IntroductionThe initial draft from 24 March was not forwarded until we had firm confirmation from the Asian Development Bank that the PPCR Set Aside funding proposal would be supported by the Bank and forwarded on schedule by 30 April 2014.

The decision came from ADB on Friday 10 April; the decision is to not take the proposal forward in any form at this time. Access to the Canadian Climate Fund for the Private Sector in Asia under the Clean Energy Financing Partnership Facility has also been denied. This situation will be further described in subsequent reporting (Mission Report) upon project completion.

It has been agreed with the SPREP Director General and the Climate Change Division persons that the remainder of the Consultant’s effort will be aimed at Specific Task #4 (as indicated below) that states:

“… develop application and required documentation to selected relevant donors for financial support to carry-out these initiatives in the Pacific”.

In this regard, work has already commenced during the Week One (1-5 April) to identify potential alternate donors. Several possible funding sources have been identified and initial contact with these donors has commenced. It has been agreed that there are three donors that show the most promise (numbers 2. and 3. below have already voiced their interest in supporting clean energy efforts in Samoa and elsewhere in the Pacific):

1. The NAMA Facility (German and UK Governmental initiative);

23 This Work Plan will form part of the final report to the GCCA on the project outcomes and achievements.24 Work Order N° 41 is under the project “Technical Assistance to the GCCA Climate Support Facility under the 10th EDF Intra-ACP Financial Framework” with identification # FED/2012/292-331



2. The Carbon War Room (an NGO with a clean energy focus); and3. The Clinton Foundation

The revised Work Plan therefore reflects this slight diversion in approach. In Part I below, aspects of the Work Order #41 have been adapted to accommodate this new approach to the project. The revised text is provided in a ALL CAPS dark red text colour.

Part I Project Context and JustificationObjectives25

General objective: To assist the Pacific regions’ private sector engagement in climate change adaptation and mitigation activities to build climate resilience.

Specific objectives:

Aimed at strengthening the private sector engagement in activities associated with reducing Pacific countries’ exposure to climate risk and uncertainty in Samoa (and if possible Tonga and PNG), the specific objectives of this Work Order will be:



7. Identify initial development opportunities in the other PACIFIC two PPCR countries (Tonga and PNG); and

8. develop application and required documentation to selected relevant donors for financial support to carry-out these initiatives in the Pacific.

Key tasks

i. Identify and assess relevant donors and opportunities to fund the proposed initiatives aimed at strengthening the private sector engagement in activities associated with reducing countries’ exposure to climate risk and uncertainty in the Pacific region (Samoa in particular) with a focus on the energy, water and recycling sector as proposed in Work Order 29.

ii. Identify possibilities for activities and funding for these activities in the other two countries, Tonga and PNG OTHER COUNTRIES OF THE PACIFIC

iii. Prepare relevant application and supporting documents in a timely manner for SPREP and in accordance with relevant application requirements of identified donors.

Specific tasks

1. Review and fully understand the parameters set out for developing proposals under various funding opportunities, including the Pilot Program for Climate Resilience (PPCR) (see https://www.climateinvestmentfunds.org/cif/set-

25 Work Order 41, “Strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities in the Pacific”,


https://www.climateinvestmentfunds.org/cif/set-aside/ppcr


aside/ppcr) and the Canada Fund26 managed by ADB (see attached Annex 2.). COMPLETED

2. Collect all the necessary resources needed for developing the proposal, including utilizing the Pacific Climate Change Portal donor directory (see http://www.pacificclimatechange.net/components/com_booklibrary/ebooks/SPREP%20Database_v3donors%20%282%29.pdf).

3. Assess the private sector initiatives from Work Order 29 in order to identify opportunities and needs to engage the sector with relevant donors

4. Review and revise the draft proposal from Work Order 29 and discuss with the SPREP mission coordinator. The proposal should meet the requirements set-out by relevant donors.

Deliverables

A. A revised detailed proposal for submission to SPREP for submission to the donors

B. Mission report, including inputs and outputs of regional workshop and participants’ evaluation of the workshop

Part II BackgroundIncreasingly important role of the private sector:

private sector is increasingly suggested as being a key partner for building resilience to climate change (see recent UNFCCC documentation on the role and significance of the private sector in future climate resilience initiatives;

private sector is also an important economic driver to small islands development throughout the Pacific;

support livelihoods, sustainable development and reduce poverty;

Pacific private sector has generally low capacity compared to other regions; support is welcomed.

Key regional and national support: SPREP and ADB:

SPREP to lead on private sector (strengthening capacity to engage in climate change adaptation and mitigation activities;

CIF and PPCR27 - three pilot countries (PNG, Samoa, and Tonga) and a regional pilot

26 Canadian Climate Fund for the Private Sector in Asia - The Canadian Climate Fund for the Private Sector in Asia was established in March 2013. The fund aims to catalyze greater private investment in climate change mitigation and adaptation in Asia and the Pacific. The fund is ADB’s first concessional debt cofinancing facility specifically oriented to support private sector operations to combat climate change.

27 PPCR objectives are to: (i) pilot and demonstrate approaches for integration of climate risk and resilience into development policies and planning; (ii) strengthen capacities at the national levels to integrate climate resilience into development planning;




regional component supports the SPCR (approved 30 April 2012)

The Pacific Regional SPCR (will be delivered through Council of Regional Organisations of the Pacific) and SPREP (Components 1. and 3.).

i. Component 1: Mainstreaming Climate Change Adaptation and Disaster Risk Reduction;

ii. Component 2: Identifying and Implementing Practical Climate Change Adaptation and Disaster Risk Reduction Knowledge and Experiences; and

iii. Component 3: Building and Supporting Pacific Developing Member Countries Capacity to Respond to Climate Change Risks28.

PPCR - competitive funding window to engage private sector29 implemented by the MDBs (ADB for the Pacific countries).

Applications close on 30 April, 2014

Aligned with three of five GCCA priority areas:1) mainstreaming climate change into poverty reduction and development efforts – through enhancing private sector engagement and involvement, 2) adaptation – by fostering private sector engagement and ownership of adaptation measures in the region, and 5) disaster risk reduction – by increasing private sector participation in joint national action plans for disaster risk reduction and climate change adaptation.

Part IV Work Plan (revised 12 April)

Tasks & Milestones Dates (2014)

Responsible(including work days - WD)

Preliminary start-up (review TOR, arrange travel, confirm, preliminary documentary research-CIF set aside results from November 2013)

Mon 18-23 March (p/t)

Scott Cunliffe (SC), Manuel Harchies (MH), Espen Ronneberg (ER), Barbara Becht (BB)

ZERO WD

Home based investigations, initial contact with stakeholders, review CIF PPCR, initiate contact with ADB, determine appropriate persons as focal points for the PPCR set aside

Mon 24 March to 28 March

SC, ER

4.5 WD

Travel days x 3 (cheapest available economy, least number of stopovers, restricted fare – 1.5 days each way)

Sun 30 March - Mon 31 March

BKK-AKL-APW

(iii) scale-up and leverage climate resilient investment, building upon other on-going initiatives; (iv) enable learning-by-doing and sharing of lessons at the country, regional, and global levels; and (v) strengthen cooperation and capacity at the regional level (CIF, 2009, Guidance Note on PPCR Regional Programs).28 Asian Development Bank (ADB) will administer Components 1 and 3, while the World Bank (WB) will lead the administration of Component 2.29 US$29 million has been set-aside for this second round of funding from the CIF for the PPCR.



and Mon 28 April – Tue 29 April

APW-SYD-BKK

3.0 WD

Summary TOR and work plan (first draft)

REVISED Saturday 12 April

Mon 24 March

Sat 12 April

SC

WEEK ONE (TUES 1 TO SAT 5 APRIL)

o Arrival, Office set up, prelim meetings SPREP expertso Draft Outline of Proposal (earlier drafts sent to ADB)o Initial stakeholder contact and discussionso Initial research on alternative funding sourceso revised draft for Solar Water Purification (prelim draft only)

forwarded to ADB

Arr. Mon 31 Mar.

Office Tuesday 1 April to Sat 5 April

SC, ER (see contact list of all key individuals contacted, met with, and discussed options)

5.0 WD

WEEK TWO (MON 7 TO SAT 12 APRIL)

o Review documentation on revised proposals, familiarization with PPCR Set aside Round Two and Round One Results

o Draft Outline of Proposal sent to ADB (water purification)o Initial stakeholder contact and discussions (Liquid

Hydrocarbons, Tyre Recycling and Biodigester projects)o ADB discussions on Canadian Fund accessibility (criteria will

exclude small projects such as ours)o Initial discussions with PPCR Focal point from M. of Financeo Continuous correspondence with ADB daily, detailed responseo Friday 11 April – ADB will not submit proposal to the CIF

Mon 7 April to Sat 12 April

SC, ER

6.0 WD

WEEK THREE (MON 14 TO FRI 18 APRIL)

o Finalise response to ADB and draft for Canadian Fundo Initiate contact with three identified funds (NAMA Facility,

Gates Foundation and Carbon War Room)o Forward Work Plan (revised draft) to GCCA consortium

(MH,BB)o DRAFT proposals, plan of action for the next 8 monthso plan workshop and travel to Manila if necessary (likely = no)

Mon 14 April to Fri 18 April

SC, ER

5.0 WD

Easter Public Holiday – Good Friday (work day) Fri 18 April SC

Easter Public Holiday – Easter Monday (non- work day) Mon 21 April SC (non-work days: Saturday 19, Sunday 20, Monday 21)

WEEK FOUR (TUES 22 TO SAT 26 APRIL)

o Final draft proposals to SPREPo On-going negotiations with possible funding agencieso Possible draft “Business Case for Building and Strengthening

Climate Resilience in the Pacific” (not confirmed)o Workshop (if agreed)o Outline plan of action and schedule of activities

Tuesday 22 April to Sat 26 April

SC, ER (see contact list of all key individuals contacted, met with, and discussed options)

5.0 WD

Stakeholder Workshop Planning (tentative) TBD ER, SC

ADB Meetings in Manila (tentative) TBD ER, SC

Departure from Apia Monday 28 April SC



Report Writing (home) and debriefing (Brussels) (4 working days) Mon 12-14 August SC, MH, BB

4.0 WD

TOTAL WORK DAYS (including x3 days travel) 30 Mar to 29 April28

FINAL SUBMISSION all reporting requirements Before Friday 27 June

SC, ER, MH, BB, SPREP

To be provided by the Beneficiary All relevant resources on climate change, background documents and, contact points

in Pacific countries and organizations

Organising the venue and logistics in-country for the review workshop (including booking room and providing logistic material such as computers, IT equipment, coffee/lunch break, printing facilities)

Selection (in coordination with the Expert) and invitation of relevant key participants to the review workshop

Provide transport for the Expert for travelling from hotel to venue where the workshop is held and also for travelling outside the workshop location and for consultation with key stakeholders, as needed.

Coordination and Supervision This will be done through the SPREP Climate Change Division, with Espen

Ronneberg, Climate Change Adviser as the focal point, who will be in regular communication with the expert as required.

Further advisory support would be given by the Division, including Dr Netatua Pelesikoti, Director.

Contact details: [email protected] and [email protected]





STATEMENT OF WORK (STATEMENT OF WORK (14-41-01-12IEB016)

Between Consortium SAFEGE-Prospect-ADETEF-Eco and the Consultant:

PURPOSE OF THE STATEMENT OF WORK

The Consultant is entrusted to carry out a mission in Samoa within the framework of the contract concluded between the Consortium and the ACP Group of States, (hereinafter referred to as «the Client») for Work Order N° 41 under the project “Technical Assistance to the GCCA Climate Support Facility under the 10th EDF Intra-ACP Financial Framework” with identification number FED/2012/292-331 (hereinafter referred as «the Project»).

COMMENCEMENT AND END OF SERVICES

The present Statement of Work is concluded for a duration of 102 (one hundred and two) days starting on 20/03/2014 and ending on 30/06/2014.

The Parties agree that the time allocated to the Consultant for the execution of the Services is of 39 (thirty-nine) working days.

Communication Line / Reports Submission

The appointed Team Leader for this Work Order is the Consultant. The Consortium designated Project Administrator is Manuel HARCHIES.

No contact with the Client shall be entered into for the purposes of this assignment, without prior authorisation of the Consortium

The Consultant shall be responsible for technical coordination of the project, elaboration of the work schedule and routine contacts with the Client and project stakeholders.

The Consultant is required to contribute to drafting and preparation of all project reports (as a whole and for his own part of technical competence) with respect to the work schedule. The overall redaction, compilation and submission of the reports to the Consortium are the responsibility of the Team Leader.

The Consultant shall not submit any reports (either draft or final versions) directly to the Client. All reports (or parts thereof) must be submitted to the Consortium designated staff only that will ensure internal quality control and official submission to the Client.

END Work Plan 24 March



Appendix 7. Draft Outline Paper on: “Risk, clean energy and climate finance for small island states – a case discussion from Samoa”

Risk, clean energy and climate finance for small island states – a

case discussion from Samoa

(tentative title) Draft for Discussion 24 May 2014

Outline (paper to include some treatment of each of the following key points with a sentence or two on each):

exec summary:

o the needs of small islands cannot be compared to larger economies;

o the risks are similar, the needs are not (building climate resilience is about managing risk);

o the paper makes the case for specific treatment (technical and financial support, Government regulatory revisions, knowledge and community trust) that is needed for private sector entrepreneurs in small island states;

o Samoa is used as a case study to illustrate the lessons learned, highlighting the generous support from the Climate Support Facility under the GCCA;

o sample lessons: timing is critical, there are no quick fix solutions so thorough planning is a

necessary baseline; assistance is usually necessary for business planning; public sector support is not automatic for what seems to be a good idea; small grants from the CSF and the GCCA is providing this support to ‘home-

grown’ initiatives to generate interest from donors for small scale initiatives which is what is needed in small island developing states;

it is however critical to a successful financing operation; while immediate needs are readily identifiable, it's the long term

implications and opportunities for up scaling that need out of the box thinking;

knowledge and understanding of the technologies (both decision-makers – Government, and the general public) needs to precede any substantial investment to garner trust, commitment and support for efforts to produce clean energy and to responsibly recycle useful refuse;



MDBs appear to be overwhelmingly supportive on paper, but the requirements (reality) are very specific and are generally not aimed at small scale investment operations;

partnerships need to be comprehensively developed, there are multiple players in any investment of this type, a plan for partnership building (like a ‘Road Map’ as some like to term this strategic planning);

similarly, the policy environment and the need to address, revise, develop and implement supportive policies is a necessary role investors, innovators and entrepreneurs must also tackle, contribute to and support;

there may be additional strength in numbers; by combining several small initiatives together (a sort of consortium) may be a way to show solidarity as well as to generate a comprehensive approach to the issues;

oversight and technical support from a respected organization (NGO, INGO, MDB, bilateral, Government Department etc.) will likely be a valuable attribute to sell early ideas prior to getting some successful implementation ‘runs on the board’.

what is climate finance:

o intro to the evolving recognition of the need to finance climate resilience, adaptation and mitigation, separate from other environmental concerns of development in general;

o what this means for small islands (finaincial support, creating jobs, using home grown entrepreneurs, capitalizing on CCA and mitigation as a business opportunity);

o adaptation is good for business in almost any context.

o … more ?

general opinion of available support (the literature):

o why does the private sector need to ‘step up’ according to the major donors?;

o what is available these days? (on paper or the screen, in reality, how much talking is required?);

o private companies are ‘for profit’, why do they need support?;

o what’s out there for small island states?

o … more ?

the value and importance of private sector initiatives:

o is ‘home grown’ better?;

o can the private sector work with government and communities …;

o … of course they can, that’s what they do ‘for profit’ !!;

o entrepreneurs create jobs; adaptation and mitigation are business opportunities;

o local solutions, community trust and legislative controls, these do not always go together well;

o … more ?

a brief case study – Samoa and clean energy

o (see summary notes above in Exec Summary)



o Lessons from SPREP… lots of good stuff here !!!o generous support from the GCCA is a valuable “seed funding” source to determine

how small groups can join forces to be a stronger voiceo such support is a critical factor to provide the organizational and intellectual support

needed to be able to communicate effectively with donors;o … more ?

resilient infrastructure and the big lenders

o big lenders and small needs, how do we bridge that gap?o we must recognise the importance of creating a business case for actions by the

private sector – no financing without a proper business plan, this is a basic bottom line for the larger lending institutions (MDBs);

o … more ?

small islands, same needs

o Current climate variability and extreme events are already causing major impacts and economic costs in the Pacific;

directed public sector support to boost private sector contributions in the long term

o there is a key role for the public sector to play in removing a number of barriers for investment, financial incentives will not be effective unless complemented by the right regulatory and institutional frameworks;

o reducing investment risks needs to be a first-order priority, before applying more comprehensive public policy instruments such as subsidies or loan guarantees;

o existing investment appraisal tools should be used to make smart decisions and needs to be communicated in a comprehensive argument that includes political, financial and social considerations;

o policy stability and consistency (across different government departments) are paramount criteria for potential investors to be confident of public sector advocacy and support for lean energy and recycling initiatives;

o governments need to have a complete understanding (and a strong knowledge base, relevant skills, ongoing training and education) of both the technologies and the markets beyond the project level, to enable them to play a supportive role in helping more projects to be implemented successfully;

lessons for small islands

o … maybe this is the lessons from the intro?

o conclusions… do we need conclusions or recommendations or just be satisfied with a description of the above?

o it would seem useful to go out with a bang… that could possibly be a look at ADB or MDBs in general?

o … end of the day, the bottom line is that there remain significant barriers to getting necessary seed financing for small scale operations on their feet through concessional financing or other incentive based mechanisms, and there should be a way to be able to take a slice off some of the big money TAs that ADB support for example, to include say a 2% contribution to local private sector innovations (i.e. 2% taken for major TAs in the energy and infrastructure sector, for example).

Anyway Espen… over to you, hope you have a chance to but some meat on these bones…



cheers, Scott

==========================



Climate Finance Bibliographic materials*

(this is a screen shot of the docs I have complied as key docs that we will need to refer to, mostly very recent…)



Appendix 8. Terms of Reference for the Consultancy (including realignment)

Work Order 41

Strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities in the Pacific

Context and Justification

The Secretariat of the Pacific Regional Environment Programme (SPREP) is the lead agency coordinating climate change in the Pacific. SPREP has been asked by Member countries, other agencies and private sector organizations to assist with strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities.

The Pacific Pilot Program on Climate Resilience (PPCR) is part of the global Climate Investment Funds (CIF). It comprises three pilot countries (Papua New Guinea [PNG], Samoa, and Tonga) and a regional pilot to be initially implemented in two or three selected countries. The Pacific regional component will support implementation of the Strategic Program for Climate Resilience (SPCR) for the Pacific Region, which was approved by the PPCR Subcommittee on 30 April 2012.

The Pacific Regional SPCR has three components, which will complement and reinforce each other and will be delivered through existing regional organizations (Council of Regional Organisations of the Pacific [CROP] agencies) and mechanisms:

(i) Component 1, Mainstreaming Climate Change Adaptation and Disaster Risk Reduction;

ii) Component 2, Identifying and Implementing Practical Climate Change Adaptation and Disaster Risk Reduction Knowledge and Experiences; and

(iii) Component 3, Building and Supporting Pacific Developing Member Countries Capacity to Respond to Climate Change Risks.

The Asian Development Bank (ADB) will administer Components 1 and 3, while the World Bank (WB) will lead the administration of Component 2.

“Clean Water, Clean Fuel: Resilient Infrastructure in Pacific Island Countries, a Private Sector Initiative30”

30 Pilot Programme for Climate Resilience Pacific Regional Track, DRAFT PROPOSAL, Program Concept Note for the Use of Resources from the PPCR Competitive Set-Aside, 12 August 2013 (see Appendix 1.)



In February 2013, the PPCR established a new competitive funding window31 to enable financing for innovative programs and projects that engage the private sector in activities associated with reducing countries’ exposure to climate risk and uncertainty. SPREP requested Technical Assistance from the Intra-ACP GCCA to assist in the development of a project proposal to the PPCR Sub-Committee. A detailed proposal involving the private sector in Samoa was developed, and six separate but linked climate resilience-building projects were established as follows:

i. SOLAR WATER PURIFICATION

ii. COCONUT BIOFUEL PRODUCTION

iii. ENERGY PRODUCTION FROM WASTE (tyre recycling)

iv. ORGANIC WASTE RECYCLING (sustainable fertilizers and renewable energy)

v. SUSTAINABLE BUILDINGS

vi. SOLAR HYDRO POWER VILLAGE ENERGY

These were duly submitted to the ADB in August, but SPREP was informed by ADB that it was unable to complete its internal procedures and due diligence work to meet the PPCR deadlines. ADB also suggested that the proposals could be submitted to the ADB’s Canadian Fund that focuses on private sector engagement in climate change work. Contact has been made with the ADB so that a completed proposal could also be submitted to that fund through ADB. The key purpose of this work order is then to build on the work completed to date and update these proposals to specific and appropriate format and content for further donor consideration.

Since the August development of these proposals, the proponents of the projects in Samoa have further developed and strengthened the content and proposed financing and implementation arrangements. Extensive research for example on the coconuts to biofuels project has opened up the possibility of using certain turnkey components to implement the process. This follows from discussions with SIDS Dock32 on funding elements of the research and development initially called for in the proposal. Opportunities for partnerships and innovative private sector actions in Tonga and PNG will also be investigated.

Similarly, the ship waste to energy and compost project has received greater attention given the cruise ships that will be used for accommodation during the 2014 SIDS Conference in Samoa. An IMO (International Maritime Organization) compliance requirement is giving added impetus to this proposal. The energy from waste (tyre recycling) is going ahead separately. ADB has thus recommended that only two of the projects be submitted in order to ensure that ADB has sufficient time to analyse the projects. SPREP is thus recommending that projects ii and iv be progressed through the available avenues with ADB and other donors.

The completed reports from this TA are attached as Annex 1.

31 Climate Investment Funds, February 2013, PROCEDURES FOR ALLOCATING PPCR RESOURCES ON A COMPETITIVE BASIS FROM AN AGREED SET ASIDE OF RESOURCES. Each pilot country listed above was invited to work with the MDBs to prepare, for endorsement by the Sub-Committee, a concept or concepts for programs/projects that further advance the objectives of its SPCR utilizing the additional allocation.32 SIDS DOCK is an initiative developed by small island developing States (SIDS) for SIDS to promote renewable energy, energy efficiency, and contribute towards sustainable development with support from the UN Development Programme (UNDP) and the World Bank. Read more: http://sids-l.iisd.org/news/first-sids-dock-pacific-meeting-reviews-progress/



Follow-up Mission – March/April 2014

In order to build on work completed to date with the private sector initiatives to build resilience in the Pacific, (see Annex 1.), SPREP is therefore requesting the Intra-ACP GCCA Programme for financial support for a follow-up mission.

The follow-up mission aims to review and revise the proposals from the first mission (Work Order 29), investigate possible donors to the initiatives proposed and revised, and initial investigations of the opportunities in the other two PPCR countries (Tonga and PNG) and preparing the relevant application and required documentation to relevant donors for financial support to carry-out identified initiatives in the Pacific, focusing initially on Samoa. The addition of Tonga and PNG to the investigation will be undertaken remotely (from Samoa, no travel required) in order to identify promising private sector opportunities and consider including these companies in the Samoa workshop as described below.

Description of the Assignment

Objectives:

General objective: To assist the Pacific regions’ private sector engagement in climate change adaptation and mitigation activities to build climate resilience.

Specific objectives: Aimed at strengthening the private sector engagement in activities associated with reducing Pacific countries’ exposure to climate risk and uncertainty in Samoa (and if possible Tonga and PNG), the specific objectives of this Work Order will be:



11. Identify initial development opportunities in the other two PPCR countries (Tonga and PNG); and

12. develop application and required documentation to selected relevant donors for financial support to carry-out these initiatives in the Pacific.

Key tasks:iv. Identify and assess relevant donors and opportunities to fund the proposed

initiatives aimed at strengthening the private sector engagement in activities associated with reducing countries’ exposure to climate risk and uncertainty in the Pacific region (Samoa in particular) with a focus on the energy, water and recycling sector as proposed in Work Order 29.

v. Identify possibilities for activities and funding for these activities in the other two countries, Tonga and PNG

vi. Prepare relevant application and supporting documents in a timely manner for SPREP and in accordance with relevant application requirements of identified donors.



Specific tasks:5. Review and fully understand the parameters set out for developing proposals

under various funding opportunities, including the Pilot Program for Climate Resilience (PPCR) (see https://www.climateinvestmentfunds.org/cif/set-aside/ppcr) and the Canada Fund33 managed by ADB (see attached Annex 2.).

6. Collect all the necessary resources needed for developing the proposal, including utilizing the Pacific Climate Change Portal donor directory (see http://www.pacificclimatechange.net/components/com_booklibrary/ebooks/SPREP%20Database_v3donors%20%282%29.pdf).

7. Assess the private sector initiatives from Work Order 29 in order to identify opportunities and needs to engage the sector with relevant donors

8. Review and revise the draft proposal from Work Order 29 and discuss with the SPREP mission coordinator. The proposal should meet the requirements set-out by relevant donors.

9. In consultation with the SPREP mission coordinator, organise a one-day workshop to conduct a regional consultation between SPREP, other agencies and private sector representatives identified by the SPREP mission coordinator to review the draft document. Collect and incorporate comments from reviewers. Obtain approval for a final draft document and ensure that it is written within the required proposal writing format set out under the donor requirements

10. Perform in-depth editing and final quality control review. Submit final proposal to SPREP mission coordinator for submission to donors (PPCR and others) within the specified deadline.

Outputs to be delivered: C. A revised detailed proposal for submission to SPREP for submission to the

donorsD. Mission report, including inputs and outputs of regional workshop and

participants’ evaluation of the workshop

Organisational and Methodological issuesPlace: Home-based and at least one regional consultation between SPREP, other agencies and selected private sector representatives, and a consultation with ADB in Manila. Duration & Indicative Planning: A submission is needed by 30 April 2014, therefore a draft version of the proposal should be ready and handed to the SPREP mission coordinator by 1 April 2014Start-up: The assignment should start as soon as possible after approval of the Work Order and in consultation with the mission coordinator who will coordinate and supervise the mission on the ground.

33 Canadian Climate Fund for the Private Sector in Asia - The Canadian Climate Fund for the Private Sector in Asia was established in March 2013. The fund aims to catalyze greater private investment in climate change mitigation and adaptation in Asia and the Pacific. The fund is ADB’s first concessional debt cofinancing facility specifically oriented to support private sector operations to combat climate change.


http://www.pacificclimatechange.net/components/com_booklibrary/ebooks/SPREP%20Database_v3donors%20(2).pdf

http://www.pacificclimatechange.net/components/com_booklibrary/ebooks/SPREP%20Database_v3donors%20(2).pdf



Preparatory phase: Home-based (7 working days – no per diem; telephone budget required estimated Euro150 maximum)

Prepare a work plan including preparations for in-country mission, in consultation with the mission coordinator

Start tasks 1, 2, and outline of draft proposal (task 3). Analyse key documents collected and those provided by the mission coordinator

In-country – Samoa: (20 working days with per diem 34 : )

Complete tasks 1 – 4

Carry-out tasks 5 and 6

Meeting in Manila with ADB (2 working days)

The meeting will allow for detailed face-toface discussions with ADB officials on the PPCR and the Canadian Fund.

Report Writing (home/away) and debriefing (Brussels) (4 working days)

The debriefing will take place after submission of the Mission report and all relevant documents, in consultation with the ACP Secretariat. If the Expert is not based in Brussels, the debriefing may be done by telephone or via Skype.

The working language and report writing will be English.

International travel (4 working days). Travel in the country/region (to be specified by the mission coordinator)

Inputs required

1. To be provided by the Climate Support Facility (CSF) Non-Key Senior Expert – Project Writer/Advisor: 39 working days; one return ticket to Samoa (from the consultant’s location); one return ticket to Manila (from the consultant’s location); (2 x Manila plus two travel days 12 x Samoa plus 4x travel days), per Diems.

Consultant’s profile:

Master’s degree (PhD Preferred) in Environmental/Natural Resources Management, Environmental Policy/Governance or Communication, Technical Writing or a related field :

Solid understanding and at least 10 years extensive experience of working on natural resources or environmental management, policy and governance; environment or climate change policy, with experience on support to the private sector to engage in climate change and a strong focus on management, communication and/or writing project proposals - preference for experience in ACP countries

At least 8 years demonstrated proposal/technical writing experience

34 Given the urgency of the proposal preparations, there is a justifiable need for the consultant to work a six-day week (including one weekend day per week as necessary. An agreement on this matter will be sought from CSF GCCA-ACP. The agreement will be based on a written request (e-mail) from the consultant to CSF and a written positive reply (e-mail) from CSF to the consult, cc BBSC members.



Demonstrated strong written and oral communications skills; attention to detail and ability to work within tight deadlines

Proficient in the use of Microsoft Office, such as Microsoft Word, PowerPoint including template design

Strong interpersonal and analytical skills, flexible, ability to interact with technical experts, management and others at different levels

Familiarity with writing project proposals within the international context, particularly with a focus on environment, climate change or related field would be an added advantage

Excellent written and spoken English

Workshop Costs

The CSF will cover the following costs related to the workshop, including room rental and other miscellaneous costs (hardware, equipment, coffee breaks and lunch break, printing meeting documents)

Financial support for the review workshop (1 day / 14 participants)

The working language for the workshop will be English.

2. To be provided by the Beneficiary : All relevant resources on climate change, background documents and, contact points

in Pacific countries and organizations, key donor identification Organising the venue and logistics in-country for the review workshop (including

booking room and providing logistic material such as computers, IT equipment, coffee/lunch break, printing facilities)

Selection (in coordination with the Expert) and invitation of relevant key participants to the review workshop

Provide transport for the Expert for travelling from hotel to venue where the workshop is held and also for travelling outside the workshop location and for consultation with key stakeholders, as needed.

Round trip travel to Manila for ADB discussions

Coordination and Supervision

This will be done through the SPREP Climate Change Division, with Espen Ronneberg, Climate Change Adviser as the focal point, who will be in regular communication with the expert as required.

Further advisory support would be given by the Division, including Dr Netatua Pelesikoti, Director.

Contact details: [email protected] and [email protected]




Documents

Work Order 10 - Draft - Web viewSamoa lies in a tropical cyclone area in the Pacific ... farms and a further US1 million as a revolving credit line for ... loss from storm or other