Project Document - Global Environment Facility
United Nations Development Programme
Country: Sudan
PROJECT DOCUMENT*
Project Title: Promoting Utility-Scale Power Generation from Wind Energy
UNDAF Outcome(s): Government and stakeholders have evidence-based policies, strategic plans and mechanisms to ensure an enabling environment for improved basic services; and people in Sudan, with special emphasis on populations in need, have access to equitable and sustainable quality basic services.
UNDP Strategic Plan Primary Outcome: Countries have strengthened institutions to progressively deliver universal access to basic services. Align with latest UNDP Strategic Plan
UNDP Strategic Plan Secondary Outcome: Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded
Expected CP Outcome(s): Population vulnerable to environmental risks and climate change become more resilient and relevant institutions are more effective in the management of natural resources
Expected CPAP Output(s): Investment in green energy and access by needy communities to sustainable energy improved
Executing Entity/Implementing Partner : Ministry of Water Resources & Electricity
Implementing Entity/Responsible Partners:
Ministry of Environment, Forestry & Natural Resources
Ministry of Petroleum
Higher Council for Environment & Natural Resources
National Energy Research Centre
* For UNDP-supported, GEF-financed projects as this includes GEF-specific requirements
Brief Description
The project aims to support the removal of barriers to the adoption of utility-scale wind energy tied to the national grid in Sudan. Wind energy has been identified as a priority mitigation technology by the Government of Sudan, and, although it is a mature technology globally, it has not yet been adopted in Sudan. A systems approach is proposed to integrate energy policy analysis within the broader developmental objectives of Sudan. The project will also establish regulatory frameworks for encouraging private investments in grid-connected wind energy.
Sudan currently has plans to develop utility-scale wind farms in four regions: Dongola in the North, Nyala in the
South, the Red Sea coastal region and Khartoum.
The project includes four components: the implementation of an initial wind farm; support to policy and regulatory development, particularly to encourage private sector participation; strengthening the support for wind technology in the country; and an adaptive learning and replication plan. Support to the implementation of the first wind farm in Sudan, Dongola, will align the wind farm with international best practices. It will also create a case study for replication in later wind farms. The Dongola wind farm will be implemented in five phases over the lifetime of the UNDP-implemented, GEF-financed project. This phasing will allow lessons-learned in the early phases to be applied in the later phases and, perhaps more importantly, will provide five years of continuous wind farm construction-commissioning-operation that will serve as a laboratory for training personnel and developing associated tools and guidelines. The opportunity to have such continuous exposure is very rare and will assist in transferring knowledge and experience to neighbouring countries.
The project aims to help diversify Sudan's power sources and reduce its reliance on fossil fuels, particularly for future expansion. The project will therefore help increase Sudan's energy security and support its development.
The project has been designed to play a catalytic role in this transformational scaling-up of wind energy, and renewable energies more broadly.
The project implementing partner is the Ministry of Water Resources and Electricity. The project is expected to last
60 months.
Programme Period:
Atlas Award ID:
Project ID:
PIMS #
Agreed by (Government):
2014-2018__
00080570______
00090222_____
4726__________
Start date:
End Date
PAC Meeting Date
Management Arrangements
Sept. 1, 2014__
Sept. 1, 2019_
NIM
TBD_________
Total resources required
Date/Month/Year
US$ 217,486,364
Total allocated resources: o GEF o o o UNDP
US$ 3,536,364
Government (cash) US$ 213,250,000
Government (in-kind) US$ 450,000
US$ 250,000
Agreed by (Executing Entity/Implementing Partner):
Date/Month/Year
Agreed by (UNDP): Date/Month/Year
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Table of Contents
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List of Acronyms
O&M
PIR
PMU
PPG
PPP
PB
PV
QPR
RCU
RE
RTA
SWH
TPR
TTR
TWh
WB
UNDAF
UNDP
UNEP
UNFCCC
MEM
MEFPD
MoM
MoP
MoSC
MWRE
MRV
MW
NAMA
NEC
NERC
NGO
CO
CO
2
CSP
EE
EENS
GDP
GEF
GHG
GT
HCENR
IEA
IPP
M&E
UNDP Country Office
Carbon dioxide
Concentrating Solar Power
Energy Efficiency
Expected Energy Not Supplied
Gross Domestic Product
Global Environment Facility
Greenhouse Gas
Gas Turbine
Higher Council for Environment and Natural Resources
International Energy Agency
Independent Power Producer
Monitoring and Evaluation
Ministry of Energy and Mining
Ministry of Environment, Forestry and Physical Development
Ministry of Mining
Ministry of Petroleum
Ministry of Science and Communications
Ministry of Water Resources and Electricity
Monitoring, Reporting and Verification
Megawatt
Nationally Appropriate Mitigation Action
National Electricity Corporation
National Energy Research Centre
Non-Governmental Organisation
Operations & Maintenance
Project Implementation Review
Project Management Unit
Project Preparation Grant
Public Private Partnership
Project Board
Photovoltaic
Quarterly Progress Report
UNDP Regional Coordination Unit
Renewable Energy
UNDP Region-Based Technical Advisor
Solar water heater
Tripartite Review
Terminal Tripartite Review
Terawatt-hour
World Bank
United Nations Development Assistance Framework
United Nations Development Programme
United Nations Environment Programme
United Nations Framework Convention on Climate Change
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List of Annexes
8.1 Off-line Risk Log
8.2 GHG Calculations
8.3 Terms of Reference for Project Personnel
8.4 GHG Reductions Calculation
8.5 Consideration of Bird Migration and Ecological Impacts
8.6 Environmental and Social Safeguards
8.7 Letters of Co-financing
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1.
Situation analysis
1.1. Context and Global Significance
1.
Like many developing countries, Sudan has a shortage of electricity. Approximately 35% of the population has access to electricity. Even then, it is not reliable and experiencesregular power outages. Hydro-power has the largest share of energy generation. The potential to expand hydro-power to meet future needs is limited. Sudan does not have significant oil or gas production and as a result will have to turn to importation of fossil fuels to meet future energy needs. Climate change threatens to affect rainfall patterns on which
Sudan relies for the water that generates its hydro-power. This further emphasises the need for Sudan to diversify its energy sources. The project seeks to address these problems by promoting the use of wind energy in Sudan.
2.
Sudan currently has a generation capacity of 2,723 MW of power, has no wind generation capacity and no grid-connected solar capacity. Publicly-owned utilities own all of the power generation facilities, transmission and distribution lines in Sudan. The Government owns 5,984 km of 220 kV transmission lines and 965 km of
500 kV transmission lines. Approximately 35% of Sudan's population has access to electricity 1 . In 2012, the power consumption per capita was 233 kWh/ year.
2 There are no independent power producers (IPPs) in the country, though initiatives are underway to promote private investment in power generation. This project seeks to support those initiatives where they relate to wind power.
3
3.
Figure 1: Electricity generated, consumed and distribution losses 2000-2010 4
4.
In 2012, the power transmission losses were approximately 4%, and distribution losses were approximately
18%, such that, in total, roughly one-fifth to one-quarter of the electricity generated is lost in transmission
1 UNESCO (2009), Electricity Access Rates .
2 Arab Union of Electricity (2012), Statistical Bulletin .
3 RCREEE (2013), Arab Future Energy Index .
4 US EIA (2013), Sudan and South Sudan Country Profile .
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and distribution.
5 As a result, Sudan must generate 25% to 33% more power than is consumed to overcome the transmission and distribution losses, and, in the process, emit associated greenhouse gases.
5.
Forty-four percent of Sudan's electricity is generated from fossil fuels. The principal fossil fuels currently used for Sudan’s power generation are heavy and light fuel oils, with shares of 61% and 39% respectively of the fossil fuel used for power generation in Sudan.
6 Hydro-power plants represent 56% of Sudan's installed power generation capacity, more than any other technology.
7
Figure 2 shows the installed generation
capacity in Sudan by technology. To meet the Government's target of 75-80% electrification by 2031, the
Government plans to install 12,000 MW of additional generation capacity by 2031. This is to include 1,582
MW of renewable energy (other than large-scale hydro-power), with approximately 650 MW of wind energy.
8
21%
2%
16%
56%
Hydro-power
Diesel generators
Combined cycle
Gas turbines
Steam turbines
5%
Figure 2: Installed power capacity in Sudan 9
6.
The major hydro-power installations in Sudan are: Roseires, Sinnar, Jebel Aulia, Khashm el-Girba and
Merowe. The most recent, Merowe, commissioned in 2009, has a capacity of 1,250 MW and represents 82% of the total hydropower capacity and 46% of the country's overall generation capacity.
10 The total amount of hydro-power generated in 2012 was 5,365 GWh 11 .
7.
The total technically feasible potential for hydro-electric power generation is 4,920 MW (or
24,132 GWh/year) 12 , implying that, in the long-term, the bulk of expansion in generation capacity will come from sources other than hydro. Sudan's long-term development plan observes that 8,675 MW of additional thermal power plants will be needed by 2030.
13 The technologies for thermal electricity generation have been identified as combined cycle gas turbines (CCGTs), low-sulphur diesel (LSD) generators, and coal-fired power
5 Arab Union of Electricity (2012), Statistical Bulletin .
6 Arab Union of Electricity (2012), Statistical Bulletin .
7 Government of Sudan (2013), Second National Communication to the UNFCCC .
8 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan .
9 Arab Union of Electricity (2012), Statistical Bulletin .
10 US EIA (2013), Sudan and South Sudan Country Profile .
11 Arab Union of Electricity (2012), Statistical Bulletin .
12 National Electricity Corporation (2004), NEC Medium-Term Development Plan: 2005-2010.
13 National Electricity Corporation (2006), NEC Long-term Power System Planning Study .
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plants. While these plants will provide much-needed electricity, they will only exacerbate the country’s energy security problems and lead to rising energy-related greenhouse gas emissions.
Figure 3: Cumulative installed renewable energy capacity by type, 2014 - 2031 14
8.
Sudan’s medium-term development plan echoes the trend towards thermal power generation. In June 2011,
MWRE released its Medium Term (2012-2016) Power System Development Plan. It emphasizes least-cost energy solutions towards achieving the Government of Sudan's electricity access targets. These targets and objectives include, among others: (i) an increase in the available generation capacity from 2,232 MW in 2011
(with 2,532 MW installed capacity) to 4,161 MW (with 5,180 MW installed capacity), (ii) increasing the electrification rate from 27% to 45% by 2016 (rising to 75-80% by 2031), (iii) raising per capita consumption from 233 kWh to 572 kWh, and (iv) extension of the national grid from 6,246 km to 9,100 km. The Medium
Term Power System Development Plan also targets the addition of 551 MW of renewable electricity to the national mix over the medium-to-long term.
9.
The Government of Sudan has made considerable steps towards opening up major public service sectors to private investment, including the power sector, to help serve its population of 37 million.
15 It has already put in place incentives to encourage the participation of IPPs in the power sector. Sudan's Investment
Encouragement Act, first passed in 1999 and later updated in 2003 and 2007, identifies the power sector as a major target for investment. It specifies power projects, and especially renewable energy power projects, as having strategic importance. As such, they are eligible for incentives such as exemption from import duties and customs. Their profits are also exempt from corporate income taxes for a decade.
16 Sudan's power sector remains Government-owned but has been restructured to reflect a private-sector structure. Independent companies have been established with responsibilities for power generation, transmission and distribution, including a single company that owns and operates the Merowe Dam. This structure serves to further establish the framework for private sector participation.
14 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan .
15 Central Bureau of Statistics, Sudan (2014)
16 RCREEE (2013), Arab Future Energy Index .
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10.
The electricity tariffs to consumers in Sudan, residential and industrial, are approximately 8.2-8.3 US cents/kWh 17 , whereas the cost of generation from wind is expected to be in the range of 9.5-13
US cents/kWh, based on a discount rate of 10%.
18 Sudan's weighted average fuel cost for thermal power is approximately 11 US cents/kWh 19 . At a discount rate of 10%, the cost of generation from fossil fuels in Sudan is 11-14 US cents/kWh, depending on the source of fuel (LNG, NG).
20 Thus, the generation cost of wind energy from the best locations in Sudan is competitive with the fuel saving cost from fossil fuel, meaning that the
Government realizes a savings by operating a wind power plant compared with the average fossil fuel plant
(other than coal). Wind energy presents other advantages, such as diversifying Sudan's energy sources and reducing the country’s reliance on imported fossil fuels. Wind also offers the advantage of not being subject to fluctuations in the global price of gas and oil.
11.
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shows power consumption in residential, commercial and industrial sectors. The residential sector is the largest consumer, responsible for 52% of consumption, with commercial, industrial and others splitting the remaining 48% roughly equally.
Figure 4: Power consumption in Sudan 21
12.
With the secession of South Sudan in July 2011, Sudan lost 75% of its oil resources. This has further increased the urgency of the implementation of Sudan’s Renewable Energy Master Plan (REMP), to reduce Sudan’s dependence on fossil fuel. Sudan has abundant wind and solar resources, as shown in the resource maps below, but currently lacks the capacity to utilise these resources for power generation.
13.
A wind measurement campaign was started in Northern Sudan in 2002 in order to identify areas of high wind energy potential and investigate the feasibility of electrical power generation by wind energy. Subsequent wind measurements have focused on other areas of high potential. A number of studies confirm that Sudan has considerable wind energy resources, with annual average wind speeds in selected locations in the range of 7-8 m/s, particularly in North State, north of latitude 12˚ N and along the Nile valley.
22 In total, there is a
17 RCREEE (2013), Arab Future Energy Index .
18 Lahmayer International (2011), Feasibility Study for 100 MW Dongola Wind Farm.
19 Lahmayer International (2011), Feasibility Study for 100 MW Dongola Wind Farm, p.141.
20 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan, pp 17 .
21 Arab Union of Electricity (2012), Statistical Bulletin .
22 Government of Sudan (2011) Renewable Energy Sector Related Policies, in Draft Second National Communication to the UNFCCC.
(courtesy of Secretary General, Higher Council for Environment and Natural Resources).
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potential of 5,000 MW of utility-scale wind energy generation in Sudan.
23 The principal sites for wind energy have been identified as: (1) the central northern part of Sudan with Dongola at its centre; and (2) the Red
Sea region, with Port Sudan as its major city.
Figure 5 Calculated annual average wind speed at 50 m height in Sudan. Red ovals show areas with the highest potential.
24 At 60 m height, the winds speeds in Dongola, Nyala and the Red Sea region are 7.2, 7.9, and 7.0 m/s, respectively .
25
14.
Based on the wind speeds in Dongola, Nyala, and the Red Sea region of 7-8 m/s, and the expected capital costs of wind power, electricity generation from wind is economic in these areas. As part of the UNDPimplemented, GEF-financed project, a more accurate wind map will be developed to help identify areas of high wind potential.
26
23 KEMA (2009), Strategic Options for Renewable Energy in North and South Sudan .
24 Lahmeyer International (2013), Long and Medium Term Power System Plans of Sudan .
25 Altaif, Ahmed, Renewable Energy Director, Ministry of Water Resources & Electricity (2013), Renewable Energy Projects in Sudan presentation: http://www.slideshare.net/rcreee/rcreee-ener-menasudan-renewable-energy-projects21082013 .
26 The present resource map is generated based on extrapolation of satellite data and limited ground data. As part of the project, a wind map with measurements at wind turbine hub-heights, currently about 80 metres, will be developed. The result will be a map better able to predict the usable wind resource.
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Figure 6 Annual available global horizontal irradiation in Sudan.
27
15.
The majority of Sudan receives solar insolation greater than 2,300 kWh/m 2 /year, which is considered excellent. To take advantage of Sudan’s plentiful solar resources, the Government is planning to develop four solar projects with a total capacity of 20 MW: Khartoum PV plant (10 MW), Nyala PV plant (5 MW), Al Fashir
PV plant (3 MW) and Al Geneina (2 MW).
28 Thus far, these projects have not been initiated.
1.2.
Baseline, barriers and current government policy to address the root causes and threats
16.
The Ministry of Water Resources and Electricity (MWRE) has succeeded the Ministry of Electricity and Dams
(MED) as the body responsible for the electricity sector in Sudan. MWRE is planning the installation and commissioning of four utility-scale wind farms by 2020: Dongola (100 MW), two Red Sea wind farms (Tokar and Port Sudan, 180 MW), Nyala (20 MW) and Khartoum (20 MW).
29 This timeframe coincides with the implementation of the UNDP-implemented, GEF-financed project. Table 1 summarises the details of the wind farms and their status.
27 Lahmeyer International (2013), Long and Medium Term Power System Plans .
28 RCREEE (2012), Sudan Renewable Energy Country Profile .
29 Following the guidance of the GEF Secretariat during PIF review, the Dongola and Red Sea wind farms form the baseline project for the purposes of the UNDP-implemented, GEF-financed project. The Nyala wind farm is excluded: it is relatively small, is due to commence after Dongola (and hence lacks Dongola’s symbolic importance as Sudan’s first utility-scale wind farm), and has few additional learning or replication benefits beyond those provided by the Dongola wind farm. Moreover, the Nyala wind farm is connected to a local grid but not the national grid and hence lacks national impact and does not offer potential lessons-learned from integrating wind energy into the national grid.
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17.
For the purposes of the Global Environment Facility, the baseline project consists of the Dongola and Red
Sea sites. Hence, the baseline project has a total installed capacity of 280 MW that is expected to produce
849,695 MWh of renewable electricity annually when all the sites are operational. The cost of these wind farms is approximately US$523 million.
18.
To enumerate the added value (incremental reasoning) of the UNDP-implemented, GEF-financed project, it is necessary to establish the rationale and orientation of the project for the market development of wind energy in Sudan. As will be discussed below, the market development for wind energy faces significant barriers in Sudan. The baseline project provides a unique opportunity to start addressing these barriers with a view to favouring private-sector investment in the market development of wind energy in the medium-tolong term. Some of these barriers, namely those related to the transfer of nationally-appropriate wind energy technologies, will be addressed directly in conjunction with the baseline project. In order to generate market acceptance at a time when wind technology does not exist in Sudan, it is crucial to first demonstrate the technological viability of wind energy in the local context. Any technological failure at the early stages in wind energy development will only undermine the acceptance of the technology in Sudan, resulting in an unwanted increase in yet more market barriers. Using the favourable conditions generated by the imminent
Dongola wind farm to promote wind energy, other – broader – barriers will be addressed by the UNDPimplemented, GEF-financed project in order to pave the way for the market development of the Red Sea wind farm and beyond.
Figure 7 Location of the Dongola wind farm indicated by the green arrow
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Figure 8 View to the west across the Dongola wind farm site
Figure 9 Wind speed distribution at 30 m for the Dongola site. Average wind speed at 60 m above ground level is 7.2 m/s and higher for 80 m.
19.
Although wind energy is mature and technologically viable, there are currently no applications of wind turbines at any scale for the generation of electricity in Sudan. The experience of Sudan with wind turbine technology has thus far been limited to small-scale mechanical water pumping.
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20.
The key focus of the UNDP-implemented, GEF-financed project is to help Sudan understand the planning and operational requirements of wind power, to gain experience with installation and grid integration issues, and to employ policy options that promote wind energy development within the broader context of low-carbon, climate-resilient development. GEF funding will thereby create the appropriate technological, institutional, policy and capacity environment that will enhance the probability of success of the baseline wind farms and establish the pre-conditions for replication elsewhere in Sudan.
21.
The baseline wind farms currently face technological barriers, which have not been taken into consideration in their design. If not addressed decisively, these technological barriers will enhance the risk of failure of these demonstration wind farms, thereby reducing future acceptance of the technology. In particular, the national grid of Sudan is relatively unstable, with variations in both frequency and voltage (during visits to
Sudan, power outages were observed as well as dimming of the grid voltage levels) 30 . The Ministry of Water
Resources and Electricity (MWRE) has experience in synchronising power generated from different conventional sources that provide base load. However, MWRE does not have experience in synchronising the grid with power generated from a variable source such as wind. Although the power system has improved in recent years, grid stability to accommodate power generated from a variable source such as wind is still inadequate.
22.
Extensive consultations have been held in Sudan with MWRE and the North State Government where the planned Dongola farm is located, through two missions to Sudan as part of the project preparation phase.
MWRE confirms that the issue of the interface electronics has not been considered (or budgeted for) for any of the baseline wind farms, and that the now-completed tender process for the Dongola wind farm reflects this omission. Further, MWRE specifically emphasises the need for GEF assistance in this area. In the absence of such interface electronics, it is highly probable that the grid will face islanding problems that will lead to load management problems and further grid instabilities.
Table 1 Baseline wind farms in Sudan
Wind farm project
Installed capacity
(MW)
Dongola 100
Electricity generated
(MWh/yr)
300,917
Expected commissioning date
Status of feasibility study
Status of financing
Included as co-financing for the purposes of the UNDPimplemented,
GEFfinanced project?
Yes
20 64,006
In phases
2014: 5 MW
2015: 20 MW
2016: 25 MW
2017: 25 MW
2018: 25 MW
(total 100 MW)
2018
Completed, will be updated as part of the
UNDPimplemented,
GEF-financed project
Completed
MWRE will finance in stages
No Nyala
(not part of the baseline project)
In the process of seeking funding
30 Al Jazeera, 11 March 2014, Sudan's bid to combat power outages, http://www.aljazeera.com/video/africa/2014/03/sudan-bidcombat-power-outages-2014311193932109307.html
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Red Sea
(Tokar,
Port
Sudan)
180
Khartoum 20
Total 320
576,054 2018 - 2020
47,000
960,701
2016 - 2019
Pre-feasibility study has been completed
Land leasing process
Not yet secured
(US$310 million capital cost anticipated)
Not yet
No
No
1.3.
Institutional framework and stakeholder analysis
23.
There are four key stakeholders involved in the development and deployment of power projects in Sudan.
These are the Ministry of Water Resources and Electricity (MWRE); the Ministry of Petroleum (MoP); the
Higher Council for Environment and Natural Resources (HCENR), under the Ministry of Environment, Forestry and Physical Development (MEFPD), which is responsible for assessing the environmental impacts of projects and issuing the appropriate permits; and the National Energy Research Centre (NERC), which has responsibility for the development of novel energy resources and has a division dedicated to wind energy.
Each key stakeholder is discussed further below.
24.
The Ministry of Water Resources and Electricity (MWRE) is the Government body responsible for electric power in Sudan, and the National Implementing Partner of this project. MWRE is responsible for implementing the wind farms described in the project, as well as being the main counterpart for the policy and regulatory reforms described. MWRE will also be the host to the central unit (“one stop shop”) supporting private-sector investors in wind power in Sudan. MWRE will carry out the following in the context of the UNDP-GEF project:
Implementation of wind farms
Support to the policy and regulatory reforms
Use of Dongola implementation as a training facility to support national capacity building
Hosting a central point to support investors in private wind power (a “one-stop shop”)
Installation and monitoring of wind measuring equipment
Data analysis and reporting
Site selection and preparation
Technical economic and environmental studies
Building the local capacity for wind installation operation and maintenance
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The
Minister
Under-Secretary
Electricity
Regulatory
Authority
Sudanese
Electricity
Transmission
Company
Sudanese
Electricity
Distribution
Company
Sudanese
Thermal
Power
Generating
Company
Sudanese
Hydro
Power
Generation
Company
Merowe
Dam
Electricity
Company
General
Directorate of Financial and Human
Resources
General Directorate of Electricity
Generation Using
Atomic Energy and
Renewable Energy
Sources
General
Directorate of
International
Cooperation
General
Directorate of
Investment,
Finance and
Contracts
General
Directorate of Policies,
Planning and Projects
Figure 10 Organisational chart of Ministry of Water Resources and Electricity. The unit concerned with the present project is highlighted.
25.
The Ministry of Petroleum (MoP) was created in 2010 through the split of the Ministry of Energy and Mining into three separate ministries: the Ministry of Water Resources and Electricity, the Ministry of Petroleum, and the Ministry of Mining. Under the MoP's General Directorate of Energy Affairs is the Renewable Energy
Directorate. The latter has been active in promoting and developing a wind energy atlas since 2003. Ongoing and planned MoP activities in this regard include:
Installing wind energy masts in the various parts of Sudan (in Toker in Red Sea State, Nyala in Western
Darfur State and Dongola in Northern State).
Collecting and analysing wind energy data.
Developing the wind atlas
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Figure 11 Organisational chart of Ministry of Petroleum. The unit concerned with the present project is highlighted.
26.
Higher Council for Environment and Natural Resources (HCENR) - The Higher Council for Environment and
Natural Resources oversees the application of environmental laws and regulations to all development projects in Sudan, and has particular responsibilities in the climate change area. HCENR serves as the
Designated National Authority (DNA) for the Clean Development Mechanism (CDM). It is also the NAMA Focal
Point and UNFCCC Focal Point for Sudan. With UNDP support, HCENR has been developing standardised baselines for Sudan. HCENR has also developed a Technology Needs Assessment (TNA) for Climate Change
Adaption and Mitigation, funded by the GEF. In the context of the UNDP-implemented, GEF-financed project,
HCENR will participate in implementation through provision of the following services: o Training and participation in conducting EIAs for wind projects, specifically items of special concern to wind farms such as bird and bat studies. o Awareness-raising and mobilisation to promote wind applications for power generation. o Advocacy for wind energy application as a clean source of energy. o Assistance to the design and implementation of the Nationally Appropriate Mitigation Action
(NAMA) elements of the UNDP-implemented, GEF-financed project.
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Figure 12 Organisational chart of the Ministry of Environment, Forestry and Physical Development
27.
The National Energy Research Centre (NERC) has been active in promoting and developing wind energy technologies for small-scale applications such as water pumping since its establishment in 1972. NERC has a special department for wind and mini-hydro equipped with instruments and a mechanical workshop. The activities of the Wind Department include:
Research in applications of wind technologies
Resources inventory, assessment and evaluation
Supervising the manufacturing of wind models for research purposes in universities
Training of students and the private sector in wind energy technologies and applications
Teaching wind energy courses to undergraduate and postgraduate students in a number of Sudanese universities
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The Minister
Undersecretary
General Directorate for Renewable
Energy
Africa City of
Technology
Atomic Energy
Commission
National Energy
Research Centre
National Centre for Research
Solar Energy
Department
Wind and
Mini-hydro
Department
Biomass
Department
Technology Development and Dissemination
Department
Figure 13 Organisational chart of the Ministry of Science and Communications. The unit concerned with the present project is highlighted.
Table 2 Stakeholder roles and co-finance amounts
MoP
Stakeholder
MWRE
Role o Implementation of wind farms o Support to the policy and regulatory reforms o Use of Dongola implementation as a training facility to support national capacity building o Hosting a central point to support investors in private wind power (a “one-stop shop”) o Installation and monitoring of wind measuring equipment o Data analysis and reporting o Site selection and preparation o Technical economic and environmental studies o Building the local capacity for wind installation operation and maintenance o Installing wind energy masts in the various parts of Sudan (in
Toker in Red Sea State, Nyala in Western Darfur State and
Dongola in Northern State). o Collecting and analysing wind energy data. o Developing the wind atlas
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Co-financing Amount
($)
213,000,000
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250,000
HCENR
NERC o Training and participation in conducting EIAs for wind projects, specifically items of special concern to wind farms such as bird and bat studies. o Awareness-raising and mobilisation to promote wind applications for power generation. o Advocacy for wind energy application as a clean source of energy. o Assistance to the design and implementation of the Nationally
Appropriate Mitigation Action (NAMA) elements of the UNDPimplemented, GEF-financed project. o Research in applications of wind technologies o Resources inventory, assessment and evaluation o Supervising the manufacturing of wind models for research purposes in universities o Training of students and the private sector in wind energy technologies and applications o Teaching wind energy courses to undergraduate and postgraduate students in a number of Sudanese universities
Project implementing agency
200,000
250,000
UNDP 250,000
2.
Strategy
2.1. Project Objectives, Outcomes, and Outputs
28.
The objective of the project is to reduce greenhouse gas (GHG) emissions by promoting the use of wind energy in Sudan. The project will provide direct technical assistance to the Dongola wind farm and will aid in the replication of experiences from the Dongola wind farm to be applied to the Red Sea wind farms and subsequent wind farms. The project also aims to put in place legislation and a framework to promote private sector involvement in renewable energy in Sudan.
29.
The Dongola wind farm will be owned and operated by MWRE. Future wind farms, in particular the planned wind farms on the Red Sea, are intended to be privately owned and operated as IPP projects, provided the appropriate legislation, guidelines, regulations and experience are in place to support their development as such. An outcome of the UNDP-implemented, GEF-financed project is to enable the Government of Sudan to tender future wind farms as IPP projects.
30.
The project preparation process involved extensive stakeholder consultation through two five-day missions to Sudan, including consultations in the capital, Khartoum, and in North State, where Dongola is located. The consultations included a large workshop held at MWRE with relevant stakeholders as well as consultation with the North State Government and visits to the Dongola site. A site inspection was undertaken by an international ornithological and ecological expert to address items not included in the present Environmental
Impact Assessment (EIA) for the Dongola project, notably the issue of the wind farm’s potential impact on resident and migrating birds. Initial indications are that the site does not pose an ecological threat; nonetheless, appropriate ecological surveying will take place as part of the UNDP-implemented, GEFfinanced project, both for the benefit of the Dongola wind farm and also so as to establish protocols and capacities to implement similar surveys at future wind farm sites. As a result of the extensive stakeholder
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consultations and comments received, which are reflected in the project design, the project has considerable ownership by the relevant entities and stakeholders in Sudan.
31.
The UNDP-implemented, GEF-financed project will advance the baseline scenario in Sudan by creating a technical and regulatory basis for the development of wind power specifically and renewable energy in general, as many of the underlying regulations are similar. The project will support existing initiatives, such as the draft Electricity Law, the Investment Law, and the application of lessons-learned in Dongola in the construction of the Nyala and Red Sea wind farms. The experiences gained in Dongola should serve to reduce the risk of investing in wind farms in Sudan and help encourage private-sector investors to participate.
32.
The project provides a series of distinct and coordinated initiatives to achieve:
Support for the construction of the Dongola wind farm in a manner that follows international norms and best practices with respect to the wind farm and the electricity grid;
Support for a regulatory framework that paves the way for the implementation of wind farms throughout Sudan to help meet the country’s energy needs for sustainable development through
Government and private-sector participation;
Capacity building to establish the technical and regulatory capacities within Sudan to promote the development of wind farms;
A replication plan to both promote the replication of wind farms throughout Sudan and support their replication by providing distilled lessons and tools from the implementation of Dongola.
Outcome 1: Initial wind farm implementation
33.
This outcome will provide assistance to the development of the Dongola wind farm, specifically in supporting the construction of the wind farm in phases, the grid interconnection aspects of the wind farm, and the development of a set of guidelines for replication of wind farms throughout Sudan. The Government is implementing the wind farm in phases, with 5 MW to be built in 2014, 20 MW in 2015, and 25 MW to be built in each year between 2016-2018, to reach the 100 MW total. The phasing of the Dongola wind farm implementation introduces challenges and opportunities. The UNDP-implemented, GEF-financed project will help to address some of the challenges and take advantage of the opportunities that arise.
34.
The principal challenge lies in planning and procurements for a project that will be implemented in stages over five years rather than in a single stage. Wind farms are often designed in conjunction with the selected turbines and laid out in a configuration so as to produce the optimum amount of power for a given site.
Considerations will have to be made to design a wind farm that will be implemented in phases, and for which the turbines to be purchased in later phases may not be known in advance as the tendering will not have occurred. A strong design team and project management will be needed to ensure the smooth development of the project. Aside from the technical challenges, there are also procurement challenges with respect to modifying a contract that was initially intended to be 100 MW in a single phase to now be phased over five years, and ensuring that pricing remains competitive.
35.
The opportunities arise in learning throughout the implementation process. Whereas typically lessons are learned from one project to be utilised in a future project, in this case lessons learned in the first phase can be immediately applied in subsequent phases. It also allows implementation to begin immediately, with minimal additional studies since the issues associated with the first-phase 5 MW wind farm are quite different from those for a 100 MW wind farm. Some of the studies performed earlier for the Dongola wind farm have overlooked significant aspects, such as evaluation of the effects on bird life in the EIA or grid integration aspects in the feasibility study. The UNDP-implemented, GEF-financed project will support these studies and therefore enhance the operational and environmental robustness of the wind farm.
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36.
With Sudan’s relatively small grid capacity, upon completion of the Dongola wind farm the installed wind capacity will be approximately 3% of the total installed capacity. At times of high wind energy output and low overall loads, wind penetration on the grid may reach 10%. On the other hand, Sudan has excellent hydro-power penetration, with approximately 58% of installed capacity and 79% of generated energy coming from hydro-power. There is thus excellent potential to use the hydro-power to stabilise a grid with a large percentage of variable renewables, whether wind or solar. This will allow Sudan to surpass one of the obstacles to development of significant renewable energy capacity in countries with relatively small grid capacities. This stabilising and facilitating role of hydro-power has hitherto not attracted any attention, but it will be addressed as part of the UNDP-implemented, GEF-financed project.
37.
A grid study will be carried out for the Dongola wind farm, with particular attention given to the interconnection equipment and grid interface electronics. Support will also be provided to ensure that the wind farm data is made available to the national load dispatch centre, which manages power plant dispatch throughout Sudan. The load dispatch centre relies on short, medium and long-term forecasts of the load to balance supply and demand on the network. The role of the load dispatch centre, and its reliance on information and the availability of proper equipment at the wind farms, will increase as the amount of wind energy connected to the grid increases. The load dispatch centre will also have a need for forecasting wind generation in the way it does loads, and the ability to maintain spinning reserves (or hydro-power reserves) to compensate for fluctuations. Grid considerations have not been taken into account for the Dongola wind farm and a grid interconnection study has not been undertaken. The work done as part of this output will play a critical role not only in maximising the benefits from the Dongola wind farm, but in laying the groundwork to allow Sudan to connect increasing amounts of wind energy while managing a smoothly operating grid.
38.
As part of this outcome, the wind farm implementation specifications will be reviewed in light of the project phasing and grid connection requirements. The specifications will be amended to include equipment and procedures for grid connection and monitoring and evaluation requirements. Appropriate supervision of construction will also be included to ensure that the outcomes are as intended in the specifications.
39.
Unlike conventional power plants, where the cost of energy produced is directly related to the fuel burned, renewable energy power plants (including hydropower) are capital-intensive and thereafter fuel is free. It is therefore in the interest of the electricity system to maximise the operation of renewable energy plants. The operation, maintenance and management of renewable energy plants to maximise their outputs therefore plays a significant role in making the electricity they generate cost-effective. To help achieve optimal operation, Outcome 1 includes training for MWRE staff and project staff on project implementation and management, and operational best practices and monitoring, including such local specific items as grid interaction 31 to maximise the wind energy generated, and maintaining turbine blade efficiency in a dusty climate which can erode efficiency.
40.
To streamline future wind farms, this project outcome will focus on the development of standardised guidelines and procedures for future wind farms. These guidelines will be developed during the implementation of the Dongola wind farm to make sure that the experiences gained from Dongola are well encapsulated for future wind farms. Guidelines will be divided into technical and financial. Technical guidelines will include EIA guidelines, tools for the assessment of identified Red Sea wind farms, and template tender documents and proposal materials for investors. The financial guidelines will include banking proposal preparation; training to support negotiations with investors; and regional development and bottle-neck
31 Wind power plants, like all plants on a network, affect the operation of the network. Because wind power plants depend on the wind rather than operator input they must be regulated to control, for example, power outputs, ramp rates, frequency control and voltage control so as not to inject undesirable dynamics onto the power grid.
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issues (e.g. logistical/accessibility constraints). In effect, the UNDP-implemented, GEF-financed project will lay the groundwork for a healthy private-sector IPP wind energy market to develop in Sudan. Key studies, templates, protocols and lessons-learned reports arising from the project’s support to the Dongola wind farm will be completed by the middle of 2017 (i.e. in the third year of project implementation), informed by the
50MW (i.e. half) of Dongola’s capacity that will have been installed by end-2016. This time-line allows for consideration of the key findings/lessons-learned from installation of the first 50MW at Dongola; allows the use of project-generated materials (e.g. for training purposes at Dongola) for the remaining 3 years of the project lifetime; and means that the materials – and, equally importantly, awareness/understanding of them
– will be in place in readiness for the commencement of the Red Sea farms a year later.
41.
In cooperation with MWRE, a framework policy for a feed-in tariff will be developed; and in conjunction with
HCENR, a NAMA will be developed around the feed-in tariff. HCENR has officially notified the UNFCCC that the UNDP-implemented, GEF-financed project will be developing a FiT as a NAMA, and this information has already been submitted to the NAMA Registry. A set of guidelines will be established for NAMA eligibility and design criteria. HCENR will act as the national coordinating institution and quality assurer for the NAMA. For the purpose of calculating emission reductions in the context of the NAMA, a tool for annually updating the emission factor of the national electricity system, based on the established CDM tool for this purpose, will be developed.
42.
The UNDP-implemented, GEF-financed project will significantly advance the state of environmental impact assessment needed for wind farms in Sudan. A significant part of that advancement is with respect to evaluation of the ecological impact of wind farms, particularly on avian species. The UNDP-implemented,
GEF-financed Migratory Soaring Birds project 32 has produced a significant body of work which, prior to this project preparation, had not been utilised in the context of GEF-financed climate change mitigation projects.
As part of the project preparation, an international expert from the Migratory Soaring Birds project visited the Dongola wind farm site and utilised tools from the Migratory Soaring Birds project to help evaluate the potential impact on the site. Some of the outputs are shown below. As part of the current project, the EIA already in place will be updated and improved to bring it in line with international best practice and best guidance. Protocols and tools developed by the project in conjunction with the Dongola wind farm will be made available to all future wind farms, most imminently the Red Sea wind farms.
32 PMIS 1028.
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Figure 14 Integrated Biodiversity Assessment Tool (IBAT) map for Sudan
Figure 15 Soaring bird sensitivity map for Dongola generated as part of the project preparation process
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Outcome 1 Outputs Activities
1. Initial wind farm implementation.
1.1 Completed design, installation and operation of interface electronics in
Dongola wind farm such that islanding problems are avoided and grid stability is ensured.
1.1.1 A detailed grid study for Dongola wind farm undertaken in conjunction with the Ministry of Water
Resources & Electricity and the Engineering,
Procurement & Construction (EPC) contractor, including a review of interconnection equipment and interface electronics, and monitoring of the grid. Sudan's large hydro-electricity capacity provides a good opportunity for stabilising the grid with fluctuating renewables.
1.1.2 Review of contract technical specifications, supervision of construction, testing and commissioning of Dongola wind farm.
1.1.3. Training for a) project implementation and project management, and b) operational best practices and monitoring, including such local specific items as grid interaction to maximise the wind energy generated, and maintaining turbine blade efficiency in a dusty climate which can erode efficiency. Training will include the
National Control Centre, responsible for dispatching power plants.
1.2 Completed and approved replication and investment plan for the construction of additional wind farms in the Red Sea region prepared with the objective of catalysing new investment:
Technical component for the Red
Sea wind farms to address interface electronics and grid stability, minimisation of environmental impacts (e.g. soaring birds) and development of a prioritised list of practicable wind farm sites.
Finance component for the Red Sea wind farms to support implementation as private-sector
IPP projects: address business planning; banking proposal preparation; negotiation with investors; regional development and bottle-neck issues (e.g. logistical/accessibility constraints);
NAMA development for the Red Sea wind farms to catalyse climate finance.
1.2.1 Assessment of the potential ecological impacts of the development process and post-construction assessment of Dongola wind farm and development of tools, templates and protocols for future projects.
1.2.2 Development of guidelines for wind farm-specific
EIA considerations (e.g. migrating birds, noise) and other hazards (e.g. civil and military aviation). These will make use of materials from the UNDP-implemented, GEFfinanced Soaring Birds project.
1.2.3 Detailed assessment of identified Red Sea and future wind farms sites using the tools, templates and protocols developed.
1.2.4 Development of the Red Sea wind farm tender and investor proposal documents in conjunction with the
Ministry of Water Resources & Electricity.
1.2.5 Development of a feed-in tariff policy NAMA for wind power in Sudan, including: development of a set of guidelines to establish national NAMA eligibility and design criteria; strengthening HCENR as the national coordinating institution and quality assurer for NAMAs; establishment of a baseline for calculating emission reductions from grid-connected renewable energy through development of a tool for annually updating the emission factor of the national electricity system; and development and implementation of an MRV framework for the NAMA.
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Outcome 2: Policy and institutional regulatory framework
43.
Outcome 2 focuses on mobilising increased wind power investment in Sudan through enabling policy and regulatory frameworks. The outcome strengthens the renewable energy component of Sudan's long-term energy plan, explores the costs and benefits of a range of financial incentives, and integrates policies and codes, in particular, to comply with the East African Power Pool members, which are envisaged to trade power with Sudan through a common grid in the future.
33
44.
To help encourage private investments in wind energy, the activities of this outcome are structured around creating a coherent system of policies and standardised tools to streamline the investment process. These include an analysis of the cost-effectiveness of various financial policy instruments (portfolio standards, feedin-tariffs, carbon finance, carbon taxation, removal of fossil fuel subsidies, reforms of existing tariffs, accelerated depreciation of turbines, tax credits, capital subsidies, time-of-use tariffs, etc.) for reducing GHG emissions and increasing the energy independence of Sudan.
45.
Based on certain selected cost-effective policies, standardised agreements will be formulated for power purchase, metering and accounting guidelines. These will allow investors to clearly determine prior to their initial steps the format of the agreements they would enter into, therefore considerably reducing initial risk and encouraging private-sector participation. It will also contribute greatly to the transparency of the sector.
The goal of these agreements and guidelines is to provide a single standardised Power Purchase Agreement
(PPA) template which can streamline the process of contracting with developers.
46.
To help achieve maximum cost-effectiveness, activities under this outcome will make use of wind resource, grid accessibility, ecological impact and terrain data to estimate wind energy costs throughout Sudan. These cost estimates, together with information from the Government of Sudan’s development plans and strategies, will help support the process of identifying areas to for wind development, and establishing a feed-in tariff that is sensitive to the variations between locations. Such a spatially-differentiated FiT would be strategically planned to account for variations in the wind resource, grid availability/stability and economic development to achieve the greatest overall developmental impact for Sudan. The tariffs will be periodically revised and updated based on changes in market conditions and on the amount of power that has been installed relative to Sudan’s targets and needs.
47.
Outcome 2 also includes the adoption of secondary legislation to promote private-sector investment in wind energy projects, including a Public-Private Partnership Act and an Independent Power Producers Act. This output puts in place general legislation to provide an overall framework for the adoption of renewable energy technologies and their connection to the grid, including a grid code specifying the technical requirements for the interconnection of renewable energy sources; an inter-ministerial National High
Committee for Renewable Energy (NHCRE) for providing cross-sectoral perspectives and high-level political support for renewable energy; and a single point of interaction (a so-called “one stop shop”), housed within
MWRE, where wind energy developers can access all required information and obtain necessary permits.
48.
A grid code is a central component of allowing power producers to connect to the grid while ensuring that a stable and functional grid is maintained. The grid code specifies the technical aspects of the grid connection to ensure that the power plant can adequately react to fluctuations in the grid and to ensure that the power plant output does not fluctuate in a way that disturbs the grid. A typical grid code specifies parameters such as the voltage-time response required, such that the voltage from the plant ramps up gradually instead of
33 http://www.eappool.org/about-eapp/eapp-governance.html
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suddenly. Other parameters often specified include frequency fluctuations and requirements that the plant disconnect upon instruction from the grid control centre (dispatch centre). The existence of a grid code standardises these aspects by fixing voltage regulation ranges, response times and other variables. In the presence of a good grid code, taking into account the characteristics of the Sudanese grid, users will be allowed to connect to the grid in a way that maximises their power generation while allowing the grid controller to maintain a well regulated, stable grid. By contrast, without a grid code, the connection of each individual plant becomes a difficult process and maintaining a well regulated grid becomes a matter of ad hoc adaptation. A robust grid code will take advantage of Sudan’s large hydro-power resources to stabilise the overall grid and allow maximum penetration of variable renewable resources.
49.
To help support Sudan’s development of wind resources, the project will promote the centralisation of several planning and execution facilities. With respect to Government entities and the political process, an inter-ministerial committee, the National High Committee for Renewable Energy (NHCRE), will be established with a mandate and operational guidelines to strengthen and harmonise renewable energy policies and streamline the decision-making process. The Committee will rely on appropriate support from other stakeholders, providing it with the technical resources to efficiently issue sound judgments that will support and enable the development of renewable energies.
50.
From the perspective of investors and project developers, a “one-stop-shop” will be established to consolidate all requirements for permits and permissions within a clear set of documentation that will allow for smooth and transparent interaction with the regulatory process. An office will be established in MWRE to provide a single point of contact for investors with the Government and permitting process. To support this ‘one-stop-shop’, a training programme will be enacted to put in place procedures and support for the staff.
Outcome 2 Outputs Activities
2. Policy,
Institutional, and regulatory framework.
2.1 Formulated long-term energy policy and regulations for Sudan, including analysis of the cost-effectiveness of financial policy instruments (portfolio standards, feed-in-tariffs, carbon finance, carbon taxation, removal of fossil fuel subsidies, reforms of existing tariffs, accelerated depreciation of turbines, tax credits, capital subsidies, time-of-use tariffs, etc.) for reducing
GHG emissions and increasing the energy independence of Sudan.
2.2 Developed and endorsed standardised Power Purchase
Agreement (PPA) for grid-connected renewable energy projects.
2.3 Established and approved dynamic, geographically-zoned feed-in tariff for wind energy in Sudan.
2.1.1 Strengthening of the RE component of Sudan's
Long-Term Energy Plan.
2.1.2 Development of a structured analytical process – using Systems Dynamic Modelling – and a stakeholder consultation process to explore cost-benefit profiles of a range of financial policy instruments.
2.1.3 Integration of policies and codes, maintaining compatibility with East African Power Pool members.
2.2.1 Established regulatory framework for renewable energy purchases, including standardised Power
Purchase Agreements.
2.2.2 Established guidelines for IPP energy metering and accounting.
2.3.1 Estimation of wind energy production costs in selected regions of Sudan based on geographical conditions and wind speeds, and grid availability/stability.
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2.4 Adopted and approved secondary legislation relevant to wind energy developed for catalysing private sector investment in wind energy projects, including a Public-Private Partnership
Act and an Independent Power
Producers Act.
2.5 Formulated and adopted grid code for the interconnection of variable renewable energy sources.
2.6 Established and operational interministerial High Committee for
Renewable Energy for providing cross-sectoral perspectives and highlevel political support for clean energy.
2.7 Established an operational “onestop shop” (OSS) for wind energy investors and developers housed jointly between the Investment and
Regulatory Departments of the Ministry of Water Resources and Electricity.
2.3.2 Design and establishment of a feed-in tariff mechanism for wind energy IPPs based on geographical zones.
2.4.1 Evaluation and development of legislation and regulations for private-sector grid-connected power generation, including a Public-Private Partnership Act, an
Independent Power Producer Act and pro-wind energy revisions to the Investment Act.
2.4.2 Establishment of guidelines for the use of the FiT,
PPP rules and other mechanisms to support independent power producers, including an arbitration mechanism for
IPPs.
2.4.3 Design of a PPP programme for wind farms with the
Government.
2.5.1 Bounds and guidelines established for frequency and voltage stability of the national grid to allow the reliable inter-connection of renewable energy sources of variable nature.
2.5.2 Established and approved guidelines for new substations and transmission lines for the interconnection of additional wind farms to the national grid.
2.6.1 Mandate, membership and operational guidelines defined for the Committee.
2.6.2 Institutional strengthening and harmonisation of policy agendas of participant institutions for streamlined
Committee decision-making.
2.7.1 Consolidation of requirements for permits and legislation for wind energy projects in a single location with a single set of documentation explaining the process and requirements for investors.
2.7.2 Interface with required institutions to provide representation within MWRE capable of providing the
OSS service.
2.7.3 Establishing procedures and training personnel to support integration of the permitting process, sitespecific surveying, technical assistance for feasibility studies, and ecological and environmental impact assessments to help support the requirements of financiers and donors.
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Outcome 3: Strengthening the wind technology support and delivery system
51.
This outcomes aims to enhance stakeholders’ technical and planning know-how and technological capacities for wind power initiatives. To achieve this, a wind atlas for the Republic of Sudan will be developed in a GIS system, with additional layers for geology, geomorphology, land ownership and type (e.g. protected areas / forests), settlements and routes of migratory birds. By overlaying geographical data such as wind speeds, elevations, general soil conditions, distance from the grid, cost of land and other variables, it will be possible to produce an atlas of estimated wind energy production costs at locations throughout Sudan. This atlas will be the basis for establishing spatially-differentiated feed-in tariffs and will provide a valuable tool in evaluating areas in which to invest.
52.
A training programme will be implemented such that during the phased construction of the Dongola wind farm local experts, technicians and practitioners will be trained to prepare and conduct site study visits during construction, interconnection, operation and maintenance of the pilot wind farms. This will build a cadre of locally-available skilled knowledge that can contribute to the development and operation of wind farms.
53.
One of the impediments to the development of wind energy at present is a lack of local knowledge of wind farms and their implementation, making each step in the process more difficult and slower. The phasing of the Dongola wind farm will in essence support a five-year construction programme that will serve as an extended five-year training site for local personnel. Although the phasing delays somewhat the onset of wind capacity on the grid, it provides a much greater opportunity for learning, training, development of guidelines and immediate implementation of lessons-learned.
54.
To further spread local capability for wind technology, renewable energy-related curricula for national universities and the National Energy Research Centre (NERC) will be supported. This activity will help create a generation of young graduates who have a strong theoretical background in wind technology and experience with local conditions.
Outcome 3
3. Strengthening the wind technology support delivery system. and
Outputs
3.1 Developed and approved wind atlas for Sudan in a
GIS system, with additional layers for geology, geomorphology, land ownership and type (e.g. protected areas / forests), settlements and routes of migratory birds.
Activities
3.1.1 Compilation and reconciliation of existing wind data and establishment of wind measurement masts where needed.
3.1.2 Compilation of sources of data for geology, geomorphology, land ownership, settlements, electric grid connections, bird migration, cultural heritage, etc.
3.1.3 Integration of wind and other datasets, including the wind cost estimates developed under 2.3.1, into a
GIS system capable of Web-based (offsite) interrogation and analysis.
3.1.4 Development of a national map to highlight priority areas for wind development.
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3.2 Local experts, technicians and practitioners capacitated to prepare and conduct site study visits during construction, interconnection, operation and maintenance of the initial wind farm.
3.3 Approved RE-related curricula of specialised universities and the National Energy Research Centre
(NERC).
3.2.1 Establishment of a structured training programme for national experts, technicians, academics and students throughout the construction of the
Dongola wind farm to help build capacity and establish strong linkages with educational and vocational courses.
3.2.2 Establishment of an ongoing O&M training centre at the Dongola wind farm.
3.3.1 Development of training, demonstration and study materials for participating universities and NERC; development or adoption of technical standards.
3.3.2 Establishing collaboration with established RE-related curricula and activities at international universities and institutions.
Outcome 4: Adaptive learning and replication plan
55.
To help enable conditions for leveraging significant additional investment and knowledge nationally and regionally, this outcome will provide documented lessons-learned, experiences and best practices related to the development of the Dongola wind farm. It will also arrange regional workshops for transferring knowledge and capacity to Sudan from relevant regional countries with established wind energy sectors (e.g.
Egypt, Morocco, Kenya).
56.
The outcome will help ensure the continued successful operation of the Dongola wind farm by putting in place a quality assurance process, for example ISO 9001.The documentation of such a process will help codify the operational practices used and serve as a basis for dissemination of lessons-learned and practices from
Dongola.
57.
To take advantage of regional experience in wind energy, the project will establish study tours to support the networking of Sudanese wind professionals with counterparts in the region. Such tours will form a basis for cooperation with the East African Power Pool, of which Sudan is already a part, to strengthen regional ties and further the exchange of renewable power across the East African grid.
4.
Outcome 4
Adaptive learning and replication plan.
Outputs
4.1 Documented lessons-learned, experiences and best practices related to the development of the Dongola wind farm compiled and disseminated for other wind farm projects in Sudan.
Activities
4.1.1 Development of a set of documents, lessonslearned and practices as a case study of the implementation of Dongola wind farm.
4.1.2 Establishment of a quality management certification process (e.g. ISO 9001) at Dongola wind farm to serve as an example to other wind farms in Sudan.
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4.2 Completed regional workshops for transferring knowledge and capacity to
Sudan from relevant regional countries
(e.g. Egypt, Morocco, Kenya).
4.1.3 Establishment of methods for ongoing dissemination of lessons-learned and best-practices through online media and other means, such as training sessions, universities, etc.
4.1.4. Specialised local engineering universities, research institutions, professional syndicates, NGOs and consulting companies with enhanced technical capacity to site, design, install, operate and maintain wind turbines at selected project sites.
4.2.1 Establishment of study tours, networking connections and assuring interaction at regional forums on a regular basis.
4.2.2 Establishment of regional cooperation among East
African Power Pool countries on the development and integration of renewable energy into the East African grid.
2.2. Key indicators, risks and assumptions
58.
In accordance with the GEF-5 Climate Change Focal Area Objective #3, to “Promote Investment in Renewable
Energy Technologies”, the key success indicators of the project are:
The extent to which policies and regulations for RE are adopted and enforced;
The volume of investment mobilised; and
The number of tonnes of CO
2
-equivalent avoided.
59.
The project specifically aims to achieve the following:
Installation of the 100 MW Dongola wind farm, while ensuring a stable grid connection.
Replication of lessons from Dongola for the Nyala, Khartoum and Red Sea wind farms.
Development of a comprehensive set of policies and regulations to encourage investment in wind power in Sudan.
Completion of technical and regulatory standards needed for connection of private-sector power generators to the grid.
Development of a wind resource map for Sudan, coupled with other geographical information, such as bird flights, to determine optimal areas for development.
Development of a NAMA around a spatially-differentiated feed-in tariff.
Development of a “one stop shop” within the Government to streamline the project development process.
Development of human capacity, through training, workshops and advanced study curricula, to support wind farm projects.
60.
For further details about the related targets, see the project’s results framework in Section 3.
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61.
The main identified risks to the successful implementation of the project include:
Finance – Obtaining finance for the wind farms continues to be a challenging. The Government has committed to developing the Dongola wind farm in phases to overcome this obstacle. The privatesector financial system is not currently well equipped to make major investments in wind energy, largely because domestic financiers lack examples of functioning wind farms against which to appraise new project proposals. Successful implementation of Dongola wind farm will provide just such an example.
Political – The Government may fail to marshal the necessary resources or coordination amongst its entities to bring about the desired legislative and regulatory reform. MWRE already faces a significant burden in meeting rising demand for electricity. Implementation of policy reforms requires the involvement of MWRE, MoP, the Cabinet of Ministers and other Government bodies. The necessity to coordinate between these entities represents one of the risks to successful implementation of the project.
Novelty and adoption risk – Private-sector entities in Sudan are slow to adopt new technology and take up unfamiliar businesses in part because the overall system does not encourage such behaviour.
To date, there has not been any private-sector investment in utility-scale power generation. The capital investment required is large and may not be easily raised locally while foreign investors are wary of perceived investment risks in Sudan.
Technology – Technical risk is minimal, especially as wind turbines have been installed in conditions similar to those in Sudan for many years. Early installations in neighbouring Egypt had failures due to the heat and dust. Manufacturers currently offer turbine packages for high-temperature and highdust locations to allow turbines to function in these environments.
Performance risk – The operation of wind farms in Sudan's climate is different from operation in
European climates. Performance is sometimes degraded, because of heat, because of maintenance downtime, or because of the accumulation of dust on the turbine blades. These issues can be mitigated with appropriate operations and maintenance, but must be well planned for.
Implementation capacity – Inadequate and/or non-capacitated human resources to successfully implement the project and support the mainstreaming of its results. The current capacity to implement and operate wind farms in Sudan is almost non-existent. The proposed project includes elements to develop human capacity. Should these not succeed, they represent a risk to the sustainable development and operation of wind farms in Sudan.
Climate change – The climate risk faced by the project is minimal. The greatest climate change risk would be a shift in wind patterns but a shift large enough to have material impact on the baseline wind farms is not expected within their 20 year lifetimes and even thereafter. The National
Adaptation Programme of Action (NAPA, 2007) observes that the occurrence of extreme weather events in the form of wind storms is rare. The impact of higher air temperature on changes in air density (leading to power loss) is insignificant. However, climate change will adversely affect hydropower because of reduced rainfall. Hydro-power is Sudan's main power source. A change in river flows would cause Government and private sector attention to be drawn away from hydro-power and to the potential of other sources, such as wind power.
Ecological risks – As part of the project preparation, the Dongola wind farm site was visited by an international ornithologist and ecology expert, who determined that the site posed minimal risks to wildlife and birds. As part of the UNDP-implemented, GEF-financed project, a more detailed site survey will be undertaken to assess bird risks and impacts, and the means of mitigating them, including options such as avian deflectors for transmission lines (see Figure 16 below). Migratory bird routes are likely to be a more significant issue for the Red Sea wind farm; the project will ensure that the appropriate protocols and systems are in place to minimise avian impacts.
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Figure 16 Example of a bird risk mitigation measure - avian deflectors for power lines.
62.
Further details on these risks, with their probability and impact analysis and related mitigation measures, are presented in the “Offline Risk Log” in Annex 7-1.
63.
For addressing the project management risks, a committed, full-time project manager with adequate outreach and networking skills is absolutely essential for the success of the activities. The project manager should have an ability: i) to engage the key stakeholders in constructive discussion about future renewable energy development needs; ii) to guide and supervise the studies undertaken and effectively co-operate with the international experts who are engaged to support this work; iii) to present their findings and recommendations in a convincing manner to key policy-makers and opinion leaders by taking into account the main macroeconomic and policy drivers for domestic energy sector development; and iv) to identify areas of future work. During project implementation, the project manager also needs to be supported by qualified technical and legal experts.
64.
A typical risk for the training and capacity building activities is that, after the completion of training, there will be no real demand for the services of the trained experts. The integrated approach adopted by the project is expected to mitigate this risk by providing opportunities for those trained on the Dongola wind farm to participate in the Nyala, Khartoum and Red Sea wind farms, therefore considerably increasing the local human contribution to these wind farms and encouraging further replication.
2.3. Expected benefits, design principles and strategic considerations
65.
The calculated global GHG reduction benefits of the project will consist of a combination of:
Direct GHG emission reduction benefits from the Dongola wind farm.
Indirect GHG reduction benefits resulting from broader market transformation arising from project activities.
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66.
No post-project GHG emission reduction benefits arising from ongoing operation of financing mechanisms established or supported by the project have been accounted for in this project, as the GEF cash contribution to capital investments represents a one-time capital grant without expected pay-back.
67.
Over the lifetime of the UNDP-implemented, GEF-financed project, the direct CO
2
emission reductions attributed to the Dongola wind farm are calculated to be 91,780 tCO
2
/year, or 1,835,600 tCO
2
over the
20 year life of the wind farm.
34 With a GEF financial contribution of $3,536,634, this translates as a cost of
$GEF 1.93/tCO
2
abated directly. This does not include any wind farms installed as an indirect result of the project – through the project’s market-opening, awareness-raising and supply chain assistance activities, for example. For further details about the assumptions and results of the project’s GHG reduction analysis, see
Annex 8-4.
68.
The associated national and local benefits include reduced local pollution from the burning of fossil fuels and strengthened national energy security through reduced dependency on imported fuels.
69.
These developments will catalyse the adoption of wind technology and provide a foundation that allows the widespread use of wind energy either in response to regulatory stimulus or simply to help realise systems where wind energy may already be advantageous but is not utilised due to a lack of capacity or awareness.
2.4. Project rationale and policy conformity
70.
The project contributes to GEF Climate Change Focal Area Objective #3, to “Promote Investment in
Renewable Energy Technologies”, recognising that renewable energy plays an indispensable role not only in combating global climate change but also in addressing energy access, energy security, environmental pollution and sustainable development. In accordance with the adopted strategy, the GEF support under expands beyond the creation of an enabling policy and regulatory environment and also encompasses wind energy investment projects that will lead to a step-change in the deployment of wind energy.
71.
The specific outcomes of the GEF-5 climate change strategy that the project will address are the following:
Favourable policy and regulatory environment created for renewable energy investments.
Investment in renewable energy technologies increased.
GHG emissions avoided.
72.
The project is consistent with Sudan's national strategies, as evidenced by the already-existing incentives for renewable power in Sudan's Investment Act. The project will help further the goals Sudan's national strategies by putting in place the overall framework that will make them effective. The Technology Needs
Assessment (TNA) carried out by HCENR with GEF support points to renewable energy as one of Sudan's key priorities in climate change mitigation. Similarly, Sudan's Second National Communication to the UNFCCC includes renewable energy as “a key potential mitigation option”. The objective of the project is also consistent with the views and objectives espoused by several stakeholders, especially from MWRE, during the extensive consultation process carried out as part of the project preparation.
73.
The project aims to develop and accelerate the adoption of grid-integrated wind power generation by providing a structure around the Dongola wind farm to translate the experience from that project onto a national basis to be replicated by other wind farms, most notably the planned Red Sea wind farms at Toker,
Port Sudan, Nyala and Khartoum. Sudan’s development depends critically on the availability of reliable electric power and independence from fossil fuels as Sudan is currently a fossil fuel-poor nation. The present
34 Lahmeyer International (2013), 100 MW Wind Power Project in Dongola .
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lack of availability of options, the lack of a framework to allow the sale of power to the grid, the lack of technical know-how in the market, the lack of user experience with the technology, and the lack of handson experience amongst Government officials means that adoption of fossil fuel alternatives is slow and limited.
74.
The UNDP-implemented, GEF-financed project will achieve its objective by addressing impediments to the development of private-sector wind power projects. Specifically, the project intends to achieve the project objective through the following:
Supporting the establishment of a regulatory framework;
Creating financial incentives – in the form a feed-in tariff to complement already-existing incentives under the Investment Act. The project will analyse existing and possible incentives and propose to the
Government appropriate incentives for implementation;
Establishing a technical knowledge base and cadre of experienced professionals to support the development of wind power projects.
75.
The project will play a critical role in creating a market that does not presently exist and supporting it through a nascent stage to the point where it is self-sustaining and able to respond to the needs of the Government, financiers and IPPs.
2.5. Country ownership: country eligibility and country drivenness
76.
According to the Instrument for the Establishment of the Restructured Global Environment Facility, Sudan qualifies for GEF financing on the following grounds:
It has ratified the UN Framework Convention on Climate Change; and
It receives development assistance from UNDP’s core resources.
77.
The objective of the project is consistent with the strategies of the Sudanese Government, particularly as outlined in the Renewable Energy Master Plan (2005). The project will provide the basis for Sudan to initiate the development of a NAMA to support renewable energy. It will thus provide Sudan with the opportunity to reinforce its engagement with the international climate change architecture and demonstrate its commitment to international efforts to reduce GHG emissions.
78.
UNDP has considerable experience in deploying policy instruments to de-risk renewable energy investments in developing countries.
35 The project will be a direct application of UNDP’s work in this area.
79.
Sudan has already demonstrated strong country drivenness in implementation of its power projects as recognition of the critical role they play in the development of the country. This has been true in particular of its hydro-power projects. The same can be expected for wind power projects as today they represent not only a renewable source of power but also a source of national security by diversifying energy supply and reducing the reliance on fossil fuels.
80.
The GEF Operational Focal Point for Sudan endorsed the project with a letter signed on February 14, 2011.
2.6. Cost-effectiveness
35 UNDP (2013), Derisking Renewable Energy Investment .
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81.
The GEF financing for Outcome 1 (US$2,391,864), represents the bulk of the GEF financing for the project and has been allocated to support the development of the Dongola wind farm as Sudan’s first wind project.
The development of Dongola is seen as the most critical step in launching wind energy in Sudan. Success at
Dongola will translate to future projects, while a failure at Dongola will setback wind power in Sudan by several years. The current lack of experience and resulting shortcomings in some of the preparatory studies for Dongola indicate that UNDP-GEF support will be critical in bringing the implementation of Dongola up to international best practice.
82.
The GEF financing for Outcome 2 will consist of grants for technical assistance, which will support the further development of regulations, technical requirements for grid connection, a feed-in tariff, and a centralised
“one-stop-shop” to support the development of wind energy in Sudan. Together, these initiatives are expected to foster a regulatory environment for attracting investments for privately-owned, grid-connected renewable energy power generation and for facilitating effective monitoring, quality control and dissemination of the results of the investments made.
83.
The GEF financing for Outcome 3 consists of technical assistance to strengthen the support for wind technology and the delivery of such support. This includes the creation of a wind atlas, overlaid with other geographical information, as well as the development of a well-trained cadre of competent wind professionals in Sudan who are expected to serve as the core of future wind projects.
84.
The GEF financing for Outcome 4 consists of technical assistance to ensure the documentation and dissemination of experience from Dongola, as well as the interaction of professionals from Sudan with others in the region, to further the experience gained and support the integration of wind power in the East African
Power Pool, of which Sudan is a member.
85.
The proposed project is extremely cost-effective as it will utilise relatively limited GEF funds to leverage almost $214 million of co-financing (a co-financing ratio of over 60). In the absence of the UNDPimplemented, GEF-financed project, the wind farm would be built but not according to best practices and with greatly reduced potential for replicability and efficient performance. If the project were to focus solely on policy issues it would risk being irrelevant without a concrete demonstration and opportunity to use this demonstration as a learning vehicle for future projects. The cost-effectiveness of the project is reflected in its very low GHG abatement cost - less than $2/tCO
2
.
2.7. Sustainability
86.
The savings in fuel from grid-connected thermal electricity plants are comparable to the levelised cost of generation from wind power. Wind power is therefore competitive with Sudan’s current marginal cost of thermal generation and can be expected to relieve some of the need for fossil fuels. Sudan can, therefore, realise a cost saving by operating a wind power plant in place of a current, average, grid-connected fossil fuel plant.
87.
Once the implementation of the initial phases of the Dongola wind farm has been successfully completed and demonstrates outputs as anticipated, it can expected that other planned wind projects (e.g. the Red Sea sites, Khartoum and Nyala) as well as more long-term projects will be mobilised.
88.
Although wind energy may be competitive with fossil fuel generation on the basis of levelised cost, it remains capital-intensive. MWRE has experience with such high-CAPEX projects, having implemented a number of hydro-power projects to date. Unlike hydro-power projects, which tend to be very large in scale, wind power can scale from a few megawatts to hundreds of megawatts depending on the available land and the wind
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resource. With appropriate policies and a regulatory framework in place, the wind initiative can be expected to be self-sustaining while making a significant contribution to the overall sustainable development of Sudan.
When Sudan is buying fuel on in the international market, each megawatt-hour of electricity produced from renewables has the potential to save some $100-$130 in fuel costs. A farm such as Dongola will save the
Government some $35 million/year in avoided fuel costs.
2.8. Replicability
89.
The project has strong potential for replicability as the Government of Sudan already has intentions to build
220 MW of wind farms after the initial 100 MW installed with the assistance of the UNDP-implemented, GEFfinanced project. As a result, the project has immediate replicability of an additional 220 MW. Sudan’s longterm plans call for the construction of 600 MW of wind power, providing further opportunity for replicability.
90.
The proposed phasing approach to be used at Dongola provides excellent opportunities for the lessonslearned from initial phases to be tested and codified in later phases, producing by the end of a project a comprehensive and tested field guide for wind farm implementation. This guide will be the reference used in subsequent replicated wind farms.
91.
Whereas the Dongola wind farm will be owned by MWRE, the direction taken by MWRE, and supported by the UNDP-implemented, GEF-financed project, is to establish the framework that will allow the private sector to replicate the wind farm built in Dongola. The feed-in tariff and its associated NAMA that will be developed by the project will apply to all future wind farm projects, thereby promoting replication.
92.
A number of countries in the region are at various stages of developing renewable energy capacity. Given the interest of several GEF programme countries in developing and implementing similar projects, the materials developed and the results and lessons-learned from this project are expected to be of direct interest to other countries. An activity of Outcome 4 is specifically dedicated to condensing the lessonslearned in other countries in the region to help Sudan, and similarly to document the lessons from the UNDPimplemented, GEF-financed project to help wind energy development throughout Sudan and in other countries.
93.
The project includes funds for the general sharing of knowledge, including study-tours to various locations in the region that will help spread experiences and develop a network for cooperation between the various stakeholder groups at the national and international levels.
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3. Project Results Framework
Project Outputs and Related Target(s)/Sub-target(s), as applicable
This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: The
Government of Sudan has the institutional framework to develop and implement MDG-based, pro-poor, equitable and inclusive socio-economic and environmental policies and strategies.
Country Programme Outcome Indicators: Capacities of national and sub-national authorities and communities for effective environmental governance, natural and renewable resources management and climate change strengthened.
Primary applicable Key Environment and Sustainable Development Key Result Area:
1. Mainstreaming environment and energy OR
2. Catalysing environmental finance OR
3. Promote climate change adaptation OR
4. Expanding access to environmental and energy services for the poor.
Applicable GEF Focal Area Objective: GEF-5 FA Objective # 3 (CCM-3): “Promote Investment in Renewable Energy
Technologies”.
Project
Objective 36
To overcome barriers to the market development of utility-scale wind farms in
Sudan.
Outcome 1 37
Indicator
Introduction of RE policies and regulations.
MWh of power generated by gridconnected wind energy.
Number of individuals that benefit from windgenerated electricity.
Number of wind power
IPPs operating in Sudan.
Megawatts of installed grid-
Baseline
There is currently no wind capacity in Sudan. The
100 MW
Dongola wind farm is planned, as are others.
No Dongola wind farm grid study.
Targets
End of Project
Construction and operation of the Dongola wind farm, with resulting power generation of 300,917
MWh/year.
1.3 million beneficiary individuals per year, calculated on the basis of
Dongola’s annual power output and the annual average electricity consumption of a gridconnected consumer (233 kWh/year).
Compilation of lessonslearned, trained personnel and replication manuals to be applied in other wind farms.
100 MW of grid-connected wind power installed at
Dongola wind farm.
Source of verification
Project monitoring reports and final evaluation.
As applicable, post-project market monitoring and evaluations.
Project monitoring reports and
Risks and
Assumptions
Security risk: the volatile economic situation in Sudan may delay implementation.
Political risk: while the Ministry of
Water Resources and Electricity
(MWRE) has plans to build four wind farms, MWRE has for years been struggling with shortages of funds, labour and skills which strain its human and material resources.
As above.
36 Objective (Atlas output) monitored quarterly ERBM and annually in APR/PIR
37 All outcomes monitored annually in the APR/PIR. It is highly recommended not to have more than 4 outcomes.
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Initial wind farm implementation. connected wind power.
Availability of environmental and social guidelines for implementing wind farms.
Successful tendering process for the Red Sea wind farm.
Outcome 2
Policy, institutional and regulatory framework.
Indicator
Extent to which RE policies and regulations are adopted and enforced.
Baseline
No training programme designed or in place.
Limited EIA requirements that neglect ecological
(notably avian) and community aspects of wind farm investments.
Tendering process not yet designed or initiated; without UNDP-
GEF intervention, likely to be similar to the
Dongola tendering process, with similar deficiencies.
A bill has been drafted for RE policies.
The law aims to establish a legal framework for encouraging RE projects in
Sudan.
Targets
End of Project
Development of guidelines for wind farm-specific EIA considerations (e.g. migrating birds, noise) and other hazards (e.g. civil and military aviation).
Detailed assessment of identified Red Sea wind farm sites using the tools, templates and protocols developed.
Development of Red Sea wind farm tender and investor proposal documents in conjunction with MWRE.
Development of a feed-in tariff policy NAMA for wind power in Sudan.
Existence of implemented and enforced policies and legislation for renewable energy.
Estimation of wind energy production costs in selected regions of Sudan based on geographical conditions and wind speeds.
Design and establishment of a feed-in tariff for wind
Source of verification final evaluation.
Project monitoring reports and final evaluation.
UNDP Environmental Finance Services
Risks and
Assumptions
Assuming that the proposed legal and regulatory improvements pass swiftly through the
Government and
Parliamentary approval process.
The financing for the FiT also presents a risk.
However, given that wind power is
Page 39
Outcome 3
Strengthening the wind technology support and delivery system.
Outcome 4
Adaptive learning and replication
Number of individuals and organisations trained and capable of supporting activity in the
Sudanese wind market.
Existence of a reliable national wind atlas.
Indicator
Establishment of a Quality
Management
System for
Baseline
Preliminary wind measurements have been carried out as well as some feasibility assessments based on those measurements.
MWRE and private sector capacities to plan and implement wind energy investments is limited.
There is currently no plan for compiling and disseminating
Targets
End of Project energy IPPs based on geographical zones.
Mandate, membership and operational guidelines defined for the interministerial National High
Committee for Renewable
Energy (NHCRE).
Institutional strengthening and harmonisation of policy agendas of participant institutions for streamlined
Committee decision-making.
Compilation and reconciliation of existing wind data and establishment of wind measurement masts where needed.
Integration of wind and other datasets into a GIS system capable of Webbased (off-site) interrogation and analysis.
Development of a national map to highlight priority areas for wind development.
Establishment of a structured training programme for national experts, technicians, academics and students throughout the construction of the Dongola wind farm to help build capacity and establish strong linkages with educational and vocational courses.
Establishment of a quality management certification process (e.g. ISO 9001) for
Dongola wind farm.
Source of verification
Project reports.
Project reports.
Obtaining the quality
UNDP Environmental Finance Services
Risks and
Assumptions competitive with conventional power in the proposed locations in Sudan, the risk is not specific to renewable power but to the power sector in general. If
Sudan can fund power, it can fund wind power.
Lack of interest while the market opportunity is not yet clear to participants (this risk is minimal).
Existing datasets for geology, geomorphology, elevation, land ownership, etc. can be compiled and consolidated without intellectual property / institutional ownership barriers.
Lack of reporting by market participants, making collection of data difficult.
The major risk is garnering interest by convincing individuals that there is a future for
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plan.
Indicator
Dongola wind farm.
Educational tours to wind farms.
Baseline lessonslearned in wind power.
Targets
End of Project
Establishment of study tours, networking connections and assuring interaction at regional forums on a regular basis.
Source of verification management certificate.
Risks and
Assumptions wind power in
Sudan.
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4.
Total budget and workplan
Award ID:
Award Title:
Business Unit:
00080570
Project
ID(s): 00090222
Promoting utility scale power generation from wind energy
SDN10
Project Title:
PIMS no.
Implementing Partner
(Executing Agency)
Promoting Utility-Scale Power Generation from Wind Energy
4726
Ministry of Water Resources and Electricity
GEF
Outcome/Atlas
Activity
OUTCOME 1:
Initial wind farm implementation
OUTCOME 2:
Policy, institutional and regulatory framework
Responsible
Party/
Implementi ng Agent
MWRE
MWRE
Fund
ID
Donor
Name
62000 GEF
62000 GEF
Atlas
Budgetary
Account
Code
ATLAS
Budget
Description
71200
71300
71400
71600
71200
71300
71400
71600
International
Consultants
Local
Consultants
Contr. services – indiv.
Travel
72200 Equipment
Sub-total GEF
Total Outcome 1
International
Consultants
Local
Consultants
Contr. services – indiv.
Travel
Amount
Year 1
(USD)
250,000
60,000
35,000
20,000
65,000
20,000
8,000
6,000
Amount
Year
(USD)
2
200,000
70,000
35,000
20,000
65,000
20,000
8,000
6,000
Amount
Year 3
(USD)
200,000 191,864 150,000
75,000
35,000
15,000
50,000
20,000
8,000
4,000
Amount
Year 4
(USD)
75,000
35,000
15,000
20,000
10,000
8,000
4,000
Amount
Year 5
(USD)
60,000
35,000
15,000
15,000
10,000
8,000
2,410
Total
(USD)
991,864
340,000
175,000
85,000
215,000
80,000
40,000
22,410
See
Budg et
Note
: a b d
400,000 400,000 0 0 0 800,000 e
765,000 725,000 325,000 316,864 260,000 2,391,864
765,000 725,000 325,000 316,864 260,000 2,391,864 c f g h i
OUTCOME 3:
Strengthening the technology wind support and delivery system
MWRE
MWRE
UNDP Environmental Finance Services
62000
UNDP
GEF
4000 UNDP
75700
Workshops and meetings
Sub-total GEF
Workshops
75700 and meetings
71200
71300
71400
International
Consultants
Local
Consultants
Contr. services – indiv.
Sub-total UNDP
Total Outcome 2
71200
International
Consultants
71300
71400
75700
Local
Consultants
Contr. services – indiv.
Workshops and meetings
71600 Travel
Sub-total GEF
71200
71300
International
Consultants
Local
Consultants
71600
74100
Travel
Professional services
Sub-total UNDP
Total Outcome 3
6,000
2,000
12,000
2,600
30,000
15,000
20,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
25,000
25,000
75,000 100,000 95,000 80,000 70,000 420,000
4,000
6,000
8,000
2,000
6,000
105,000 105,000 86,000 44,000 37,410 377,410
2,000
12,000
2,600
40,000
30,000
20,000
5,000
5,000
7,000
6,000
8,000
2,000
4,000
2,000
10,000
2,600
40,000
25,000
20,000
5,000
3,000
5,000
2,000
2,000
1,800
4,000
2,575
30,000
20,000
20,000
5,000
3,000
1,000
2,000
2,000
2,000
4,000
2,575
20,000
20,000
20,000
5,000
3,000
1,000
2,000
20,000 23,000 15,000 11,000 11,000
20,000 j
9,800
42,000
12,950
160,000
110,000
100,000
26,000
21,000
23,000
10,000
80,000
95,000 123,000 110,000 91,000 81,000 500,000 k l m
12,000 12,000 12,000 11,750 11,750 59,500 n
28,600 28,600 26,600 20,125 20,325 124,250
133,600 133,600 112,600 64,125 57,735 501,660 o p q r s t
u v w
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OUTCOME 4:
Adaptive learning and replication plan
MWRE
Project management
(This is not to appear as an
Outcome in the
Results
Framework and should not exceed 10% of project budget)
MWRE
MWRE
UNDP Environmental Finance Services
62000
62000
4000
GEF
4000 UNDP
GEF
UNDP
71200
71300
71400
75700
71600
International
Consultants
Local
Consultants
Contr. services – indiv.
Workshops and meetings
Travel
Sub-total GEF
71200
International
Consultants
71300
Local
Consultants
71600
75700
Travel
Workshops and meetings
Sub-total UNDP
Total Outcome 4
71400
Contr. services – indiv.
71600
72800
Travel
IT Equipment
Sub-total GEF
72800
72400
72500
IT Equipment
Communicati on
Office supplies
74500 Miscellaneous
Sub-total UNDP
Total Management
10,000 10,000
8,000 8,000
12,000
2,000
2,000
7,000 1,000 1,000 1,000 13,000 ai
41,090 33,000 31,000 31,000 31,000 167,090
2,000 2,000 2,000 500 500 7,000 ai
750
12,000
2,000
2,000
3,000
750
5,000
8,000
12,000
2,000
2,000
750
5,000
8,000
12,000
2,000
2,000
750
5,000
8,000
12,000
2,000
2,000
750
35,000
40,000
60,000
3,750 x y z
5,000
2,500
5,000
2,500
5,000
5,000
5,000
5,000
5,000
5,000
25,000
20,000
37,500 37,500 35,000 35,000 35,000 180,000 aa ab
1,000 1,000 1,000 1,000 2,000 6,000 ac
10,000 ad
10,000 ae
0
5,000
1,000
6,000
1,000
6,000
1,000
6,000
1,000
7,000
4,000
30,000
42,500 43,500 41,000 41,000 42,000 210,000 af
24,090 20,000 20,000 20,000 20,000 104,090 ag
10,000 10,000 10,000 10,000 10,000 50,000 ah
500
500
500
500
500
500
500
500
500
500
2,500
2,500
3,750 3,750 3,750 2,250 2,250 15,750
44,840 36,750 34,750 33,250 33,250 182,840
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Summary of
Funds: 38
TOTAL GEF
TOTAL UNDP
GRAND TOTAL
1,023,590 1,000,500 572,000 506,864 433,410 3,536,364
57,350 61,350 51,350 39,375 40,575 250,000
1,080,940 1,061,850 623,350 546,239 473,985 3,786,364
Amount
Year 1
Amount
Year 2
Amount
Year 3
GEF 1,023,590 1,000,500 572,000
Amount
Year 4
Amount
Year 5 Total
506,864 433,410 3,536,364
UNDP 57,350 61,350 51,350 39,375 40,575 250,000
Ministry of Water Resources and Electricity 28,000,000 47,000,000 47,000,000 47,000,000 47,000,000
213,000,000
50,000 50,000 50,000 50,000 50,000 250,000 Ministry of Petroleum
Higher Council for
Environmental and National
Resources
National Energy Research
Centre
40,000
50,000
40,000
50,000
40,000
50,000
40,000
50,000
40,000
50,000
200,000
250,000
TOTAL 26,220,940 48,201,850 47,763,350 47,686,239 47,613,985 217,486,364 a. b. c. d.
Budget Note Description of cost item
International technical consultants to support grid integration, wind farm implementation, NAMA finance, and knowledge transfer
Local consultants to support the international consultants on grid integration, wind farm implementation, NAMA finance and to begin building local capacity in these areas
Long-term consultants and project staff
Land travel to the Dongola project site, accommodation at the project site, international travel to and from Khartoum and accommodation in Khartoum for international consultants.
38 Summary table should include all financing of all kinds: GEF financing, cofinancing, cash, in-kind, etc...
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h. i. j. k. l. m. e. f. g. q. r. s. t. n. o. p. u. v. w. x. y. z. aa.
UNDP Environmental Finance Services
Equipment to support monitoring and integration of the wind farm into the Sudan power grid
Institutional and policy experts with experience in renewable energy frameworks – specifically, feed-in tariffs and regulations, technical experts with experience in wind energy yield forecasting and development of grid codes for wind
Local consultants to support the international consultants on feed-in tariffs and regulations, wind energy yield forecasting and development of grid codes for wind
Long-term consultants and project staff
International travel for consultants to and from Khartoum, accommodation in Khartoum, minimal travel within Sudan.
Workshops and meetings, mainly with G overnment officials around the formulation of policies and creation of a “one-stop-shop” for wind investors
Workshops and meetings, mainly with G overnment officials around the formulation of policies and creation of a “one-stop-shop” for wind investors
Institutional and policy experts with experience in renewable energy frameworks – specifically, feed-in tariffs and regulations, technical experts with experience in wind energy yield forecasting and development of grid codes for wind
Local consultants to support the international consultants on feed-in tariffs and regulations, wind energy yield forecasting and development of grid codes for wind
Long-term consultants and project staff
International experts in wind mapping, wind site surveying and GIS systems to develop wind atlas for Sudan; international experts to support curricula development
Local consultants to support wind mapping, wind site surveying, bird migration and GIS systems to develop wind atlas for Sudan; local academics to participate in curricula development
Long-term consultants and project staff
Workshops and meetings in Khartoum and at other Sudanese universities to support curricula development; workshops to consult on geomorphology, geology and land ownership
International travel to and from Khartoum, travel within Sudan to site locations and workshops
International experts in wind mapping, wind site surveying and GIS systems to develop wind atlas for Sudan; international experts to support curricula development
Local consultants to support wind mapping, wind site surveying, bird migration and GIS systems to develop wind atlas for Sudan; local academics to participate in curricula development
International travel to and from Khartoum, travel within Sudan to site locations and workshops
Audit costs
International and regional experts to support documentation of lessons-learned from Dongola wind farm and regional workshops
Local consultants to support documentation of lessons-learned from Dongola wind farm and regional workshops
Long-term consultants and project staff
Regional workshops for transferring knowledge and capacity to Sudan from relevant regional countries (e.g. Egypt, Morocco,
Kenya); and to share and disseminate lessons-learned from Dongola
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ab. ac. ad. ae. af. ag. ah.
Ai.
Travel for international consultants to and from Khartoum; travel for workshops and regional interaction
International and regional experts to support documentation of lessons-learned from Dongola wind farm and regional workshops
Local consultants to support documentation of lessons-learned from Dongola wind farm and regional workshops
Travel for international consultants to and from Khartoum; travel for workshops and regional interaction
Regional workshops for transferring knowledge and capacity to Sudan from relevant regional countries (e.g. Egypt, Morocco,
Kenya); and to share and disseminate lessons-learned from Dongola
Long-term consultants and project staff
Travel for project management staff
Computers, software, IT services and web hosting
UNDP Environmental Finance Services Page 47
5. Management Arrangements
( SEE UNDP POPP FOR FURTHER DETAILS )
Project Organisation Structure
Senior Beneficiary:
Project Board
Executive:
Ministry of Water
Resources and Electricity
Project Assurance
UNDP Programme Office
Project Manager
Senior Supplier:
UNDP
Project Support
TEAM A TEAM B TEAM C
94.
The project will be nationally executed by the Ministry of Water Resources and Electricity, under the National Implementation Modality (NIM). UNDP will be accountable for the disbursement of funds and the achievement of the project goals, according to the approved work plan. The executing agency will assign a senior officer as a National Focal Point to: (i) coordinate the project activities with activities of other Government entities; and (ii) certify the expenditures are in line with approved budgets and work-plans.
95.
A Project Board (PB) will be established at the inception of the project to monitor project progress, to guide project implementation and to support the project in achieving its listed outputs and outcomes. It will be chaired by a UNDP representative and will include representatives from MWRE, HCENR, and a Project Assurance Officer from UNDP. Other members can be invited at the decision of the PB on an as-needed basis, but taking due regard that the PB remains sufficiently lean to be operationally effective. The final list of the
PB members will be completed at the outset of project operations and presented in the
Inception Report by taking into account the envisaged role of different parties in the PB. The project manager will participate as a non-voting member in the PB meetings and will also be responsible for compiling a summary report of the discussions and conclusions of each meeting.
96.
The coordination of the above stakeholders will be carried out by MWRE with the support of
UNDP. The coordination will begin with the establishment of a Local Project Appraisal
Committee (LPAC) and the invitation of stakeholders to an inception meeting. The PB will identify and put in place steps for initial activities to support, for example, the technical
Page 48 UNDP Environmental Finance Services
capacity building in the period when the regulatory and financial structures are being developed. One goal of project coordination will be to ensure that the various components of the project are in place when they are needed: e.g. financial instruments are ready when regulations come into place; technical capacity and equipment supply are available at the appropriate time, etc. The PB will meet on a regular basis during project implementation, and it will have the responsibility of coordinating and harmonizing the actions of all the key stakeholders.
97.
The day-to-day management of the project will be carried out by a Project Management Unit
(PMU) under the overall guidance of the PB. The PMU will be established within MWRE and will coordinate its work with UNDP, MoP, HCENR, and other stakeholders. The Project
Manager will report to UNDP, the executing agency and the PB. The Terms of Reference of the key project personnel are presented in Annex 8.3 of this Project Document. The project personnel will be selected on a competitive basis in accordance with the relevant UNDP rules and procedures and in consultation with the UNDP-GEF Region-based Technical Advisor.
98.
The project manager will be supported by international and national experts taking the lead in the implementation of specific technical assistance components of the project. Contacts with experts and institutions in other countries that have already gained experience in developing and implementing renewable energy policies and financial support mechanisms are also to be established.
99.
UNDP will maintain the oversight and management of the overall project budget. It will be responsible for monitoring project implementation, timely reporting of the progress to the
UNDP Regional Centre and the GEF, as well as organising mandatory and possible complementary reviews and evaluations on an as-needed basis. Furthermore, it will support the coordination and networking with other related initiatives and institutions in the country.
100.
To successfully reach the objective and outcomes of the project, it is essential that the progress of different project components is closely monitored both by the key local stakeholders and authorities as well as by project’s international experts, starting with the finalisation of the detailed, component-specific work plans and implementation arrangements and continuing through the project’s implementation phase. The purpose of this is to facilitate early identification of possible risks to successful completion of the project together with adaptive management and early corrective action, when needed.
101.
In order to accord proper acknowledgement to the GEF for providing funding, a GEF logo should appear on all relevant GEF project publications, including any hardware purchased with GEF funds. Any citation on publications regarding projects funded by GEF should also accord proper acknowledgement to the GEF in accordance with the relevant GEF guidelines.
102.
The international experiences and lessons-learned from catalysing local renewable energy development have been taken into account in the design of this new project. The activities of other donors and the foreseen synergies and opportunities for cooperation have been discussed in detail in Chapter 1.4 of this project document. During implementation, proper care will be taken to have adequate communication and coordination mechanisms in place to ensure that areas of common interest can be addressed in a cost-efficient way.
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6. Monitoring Framework and Evaluation
The project will be monitored through the following M& E activities. The M& E budget is provided in the table below.
Project start:
A Project Inception Workshop will be held within the first 2 months of project start with those with assigned roles in the project organisation structure, UNDP Country Office and, where appropriate/feasible, regional technical policy and programme advisors as well as other stakeholders. The
Inception Workshop is crucial to building ownership for the project results and to plan the first year annual work plan.
The Inception Workshop should address a number of key issues including: a) Assist all partners to fully understand and take ownership of the project. Detail the roles, support services and complementary responsibilities of UNDP CO and RCU staff vis à vis the project team.
Discuss the roles, functions, and responsibilities within the project's decision-making structures, including reporting and communication lines, and conflict resolution mechanisms. The Terms of
Reference for project staff will be discussed again as needed. b) Based on the project results framework and the relevant SOF (e.g. GEF) Tracking Tool if appropriate, finalise the first annual work plan. Review and agree on the indicators, targets and their means of verification, and recheck assumptions and risks. c) Provide a detailed overview of reporting, monitoring and evaluation (M&E) requirements. The
Monitoring and Evaluation work plan and budget should be agreed and scheduled. d) Discuss financial reporting procedures and obligations, and arrangements for annual audit. e) Plan and schedule Project Board meetings. Roles and responsibilities of all project organisation structures should be clarified and meetings planned. The first Project Board meeting should be held within the first 12 months following the inception workshop.
An Inception Workshop report is a key reference document and must be prepared and shared with participants to formalize various agreements and plans decided during the meeting.
Quarterly:
Progress made shall be monitored in the UNDP Enhanced Results Based Managment Platform.
Based on the initial risk analysis submitted, the risk log shall be regularly updated in ATLAS. Risks become critical when the impact and probability are high. Note that for UNDP GEF projects, all financial risks associated with financial instruments such as revolving funds, micro-finance schemes, or capitalisation of ESCOs are automatically classified as critical on the basis of their innovative nature
(high impact and uncertainty due to no previous experience justifies classification as critical).
Based on the information recorded in Atlas, a Project Progress Reports (PPR) can be generated in the
Executive Snapshot.
Other ATLAS logs can be used to monitor issues, lessons learned etc. The use of these functions is a key indicator in the UNDP Executive Balanced Scorecard.
Annually:
UNDP Environmental Finance Services Page 50
Annual Project Review/Project Implementation Reports (APR/PIR): This key report is prepared to monitor progress made since project start and in particular for the previous reporting period (30 June to 1 July). The APR/PIR combines both UNDP and SOF (e.g. GEF) reporting requirements.
The APR/PIR includes, but is not limited to, reporting on the following:
Progress made toward project objective and project outcomes - each with indicators, baseline data and end-of-project targets (cumulative)
Project outputs delivered per project outcome (annual).
Lessons-learned/good practice.
AWP and other expenditure reports
Risk and adaptive management
ATLAS QPR
Portfolio level indicators (i.e. GEF focal area tracking tools) are used by most focal areas on an annual basis as well.
Periodic Monitoring through site visits:
UNDP CO and the UNDP RCU will conduct visits to project sites based on the agreed schedule in the project's Inception Report/Annual Work Plan to assess first hand project progress. Other members of the
Project Board may also join these visits. A Field Visit Report/BTOR will be prepared by the CO and UNDP
RCU and will be circulated no less than one month after the visit to the project team and Project Board members.
Mid-term of project cycle:
The project will undergo an independent Mid-Term Review at the mid-point of project implementation
(2017). The Mid-Term Review will determine progress being made toward the achievement of outcomes and will identify course correction if needed. It will focus on the effectiveness, efficiency and timeliness of project implementation; will highlight issues requiring decisions and actions; and will present initial lessons learned about project design, implementation and management. Findings of this review will be incorporated as recommendations for enhanced implementation during the final half of the project’s term. The organisation, terms of reference and timing of the Mid-Term Review will be decided after consultation between the parties to the project document. The Terms of Reference for this Mid-Term
Review will be prepared by the UNDP CO based on guidance from the Regional Coordinating Unit and
UNDP-GEF. The management response and the evaluation will be uploaded to UNDP corporate systems, in particular the UNDP Evaluation Office Evaluation Resource Centre (ERC) .
The relevant SOF (GEF) Focal Area Tracking Tool will also be completed during the Mid-Term Review cycle.
End of Project:
An independent Final Terminal Evaluation will take place three months prior to the final Project Board meeting and will be undertaken in accordance with UNDP and SOF (e.g. GEF) guidance. The final evaluation will focus on the delivery of the project’s results as initially planned (and as corrected after the
Mid-Term Review, if any such correction took place). The final evaluation will look at impact and sustainability of results, including the contribution to capacity development and the achievement of global environmental benefits/goals. The Terms of Reference for this evaluation will be prepared by the UNDP
CO based on guidance from the Regional Coordinating Unit and UNDP-GEF.
UNDP Environmental Finance Services Page 51
The Final Terminal Evaluation should also provide recommendations for follow-up activities and requires a management response which should be uploaded to PIMS and to the UNDP Evaluation Office Evaluation
Resource Centre (ERC) .
The relevant SOF (e.g. GEF) Focal Area Tracking Tool will also be completed during the final evaluation.
During the last three months, the project team will prepare the Project Terminal Report. This comprehensive report will summarise the results achieved (objectives, outcomes, outputs), lessons learned, problems met and areas where results may not have been achieved. It will also lay out recommendations for any further steps that may need to be taken to ensure sustainability and replicability of the project’s results.
Learning and knowledge sharing:
Results from the project will be disseminated within and beyond the project intervention zone through existing information sharing networks and forums.
The project will identify and participate, as relevant and appropriate, in scientific, policy-based and/or any other networks, which may be of benefit to project implementation though lessons-learned. The project will identify, analyze, and share lessons-learned that might be beneficial in the design and implementation of similar future projects.
Finally, there will be a two-way flow of information between this project and other projects of a similar focus.
Communications and visibility requirements:
Full compliance is required with UNDP’s Branding Guidelines. These can be accessed at http://intra.undp.org/coa/branding.shtml
, and specific guidelines on UNDP logo use can be accessed at: http://intra.undp.org/branding/useOfLogo.html
. Amongst other things, these guidelines describe when and how the UNDP logo needs to be used, as well as how the logos of donors to UNDP projects needs to be used. For the avoidance of any doubt, when logo use is required, the UNDP logo needs to be used alongside the GEF logo. The GEF logo can be accessed at: http://www.thegef.org/gef/GEF_logo. The UNDP logo can be accessed at http://intra.undp.org/coa/branding.shtml
.
Full compliance is also required with the GEF’s Communication and Visibility Guidelines (the “GEF
Guidelines”). The GEF Guidelines can be accessed at: http://www.thegef.org/gef/sites/thegef.org/files/documents/C.40.08_Branding_the_GEF%20final_0.pdf
Amongst other things, the GEF Guidelines describe when and how the GEF logo needs to be used in project publications, vehicles, supplies and other project equipment. The GEF Guidelines also describe other GEF promotional requirements regarding press releases, press conferences, press visits, visits by Government officials, productions and other promotional items.
Where other agencies and project partners have provided support through co-financing, their branding policies and requirements should be similarly applied.
Page 52 UNDP Environmental Finance Services
M&E workplan and budget
Type of M&E activity
Responsible Parties Budget US$
Excluding project team staff time
Time frame
Inception and Report
Workshop
Project Manager
UNDP CO, UNDP-GEF
Indicative cost: 10,000
Within first two months of project start up
Measurement of Means of Verification of project results.
Project Manager will oversee the hiring of specific studies and institutions, and delegate responsibilities to relevant team members.
Oversight by Project Manager
Project team
Measurement of Means of Verification for
Project Progress on output and implementation
ARR/PIR Project manager and team
UNDP CO
UNDP RTA
UNDP GEF
Project manager and team Periodic status/ progress reports
Mid-term Review
Final Evaluation
Project manager and team
UNDP CO
UNDP RCU
External Consultants (i.e. evaluation team)
Project manager and team,
UNDP CO
UNDP RCU
External Consultants (i.e. evaluation team)
Project Terminal Report Project manager and team
UNDP CO
local consultant
Audit
Visits to field sites
TOTAL indicative COST
UNDP CO
Project manager and team
UNDP CO
UNDP RCU (as appropriate)
Government representatives
To be finalised in Inception
Phase and Workshop.
To be determined as part of the Annual Work Plan's preparation.
None
None
Indicative cost: 33,000
Indicative cost : 40,000
0
Indicative cost per year:
2,000
For GEF-supported projects, paid from IA fees and operational budget
Excluding project team staff time and UNDP staff and travel expenses US$ 93,000
(+/- 5% of total budget)
Start, mid and end of project (during evaluation cycle) and annually when required.
Annually prior to
ARR/PIR and to the definition of annual work plans
Annually
Quarterly
At the mid-point of project implementation.
At least three months before the end of project implementation
At least three months before the end of the project
Yearly
Yearly
UNDP Environmental Finance Services Page 53
7. Legal Context
This document, together with the CPAP signed by the Government and UNDP which is incorporated by reference, constitutes a Project Document as referred to in the SBAA [or other appropriate governing agreement] and all CPAP provisions apply to this document.
Consistent with the Article III of the Standard Basic Assistance Agreement, the responsibility for the safety and security of the implementing partner and its personnel and property, and of UNDP’s property in the implementing partner’s custody, rests with the implementing partner.
The implementing partner shall: a) put in place an appropriate security plan and maintain the security plan, taking into account the b) security situation in the country where the project is being carried; assume all risks and liabilities related to the implementing partner’s security, and the full implementation of the security plan.
UNDP reserves the right to verify whether such a plan is in place, and to suggest modifications to the plan when necessary. Failure to maintain and implement an appropriate security plan as required hereunder shall be deemed a breach of this agreement.
The implementing partner agrees to undertake all reasonable efforts to ensure that none of the UNDP funds received pursuant to the Project Document are used to provide support to individuals or entities associated with terrorism and that the recipients of any amounts provided by UNDP hereunder do not appear on the list maintained by the Security Council Committee established pursuant to resolution 1267
(1999). The list can be accessed via: http://www.un.org/Docs/sc/committees/1267/1267ListEng.htm
.
This provision must be included in all sub-contracts or sub-agreements entered into under this Project
Document.
This project will be audited in accordance with UNDP Financial Regulations and Rules and applicable audit policies
.
UNDP Environmental Finance Services Page 54
8. Annexes
8.1 Risk Analysis
UNDP Environmental Finance Services Page 55
# Description
1 The security situation in
Sudan may pose some risks or perceived risks.
Without general security, the ability of crews to travel, transport goods and work will be restricted. With renewable energy equipment, where the entire capital is procured and installed upfront, theft or damage can mean a complete loss of invested capital.
Date identified
Type
Political/
Operational
2 The Government may fail to marshal the necessary resources or coordination amongst its entities to design and implement the desired policy changes.
Regulatory
Impact &
Probability
May prevent access to certain areas for implementation of projects.
P 39 = 2
I 40 = 3
Countermeasures /
Management response
Owner
Advice on secure travel routes within Sudan. An escort from MWRE will be provided where
Project
Board necessary.
The locations of main activities in the project
(Dongola, in the North
State, Red Sea,
Khartoum) are secure and fall within the
Minimal, Low or
Moderate Threat Level areas identified by the
UN ( http://undsssudan.org/files/docs/S udan_SLS_Map.pdf) .
Lack of policy basis to catalyse adoption of wind energy
P = 2
I = 5
Policy reform and decision making can be slow in Sudan.
UNDP will rely on close relations with MWRE and other counterparts.
Through close
Government
Submitted, updated by
Last
Update
Status
N/A N/A
N/A N/A
39
Probability from 1 (low) to 5 (high)
40
Impact from 1 (low) to 5 (high)
UNDP Environmental Finance Services Page 56
# Description
3. Novelty and adoption risk
– Private-sector entities in Sudan are slow to adopt new technology and take-up unfamiliar business models.
4 Technology risk –
Technical failures, either
Date identified
Type
Impact &
Probability
Organisational Slow uptake of wind energy by market participants.
P = 2
I = 4
Technological Lower than anticipated
Countermeasures /
Management response
Owner participation, UNDP will aim to spur action.
Sudan’s need for electric power and previously demonstrated commitment to building power projects indicates that there is a will to move forward.
The project supports existing government policy to encourage renewable energy and bring private developers into the market.
There is considerable interest in investment in Sudan, in particular
Project
Board by countries in the region which already have large agricultural projects in Sudan.
Investment in infrastructure is seen as a means to support their other investments.
Consultants hired for the project will be
NA
Submitted, updated by
Last
Update
Status
N/A
N/A
N/A
N/A
Page 57 UNDP Environmental Finance Services
# Description due to equipment failure or bad installation, can lead to poor public image and loss of confidence.
The operating conditions, in particular heat, dust, and humidity (on the Red
Sea Coast), represent a challenging environment for wind farm equipment and thus a risk which will be mitigated through selection of equipment for these conditions.
5 Financial Risks – The
Government can be slow to adopt incentives to promote industries. This reflects in part the slow pace of policy reform and decision-making in
Sudan. Generating the funds for capitalintensive wind farms or for an expensive feed-in tariff are challenges for the Government.
In addition, the private sector can be slow to react to incentives,
Date identified
Type
Financial
UNDP Environmental Finance Services
Impact &
Probability
Countermeasures /
Management response electricity output of the RE plants installed.
P = 2
I = 3 tasked with studying and emphasising appropriate technology for the ambient environment.
Owner
Submitted, updated by
Last
Update
Status
Lack of financial incentives and subsidised electricity will mean limited incentive for the
Co-financing already committed guarantees a minimum level of activity in wind energy during the project years. Thereafter, the widespread use of benefits of wind energy wind power. should be well demonstrated to
P = 3
I = 4 encourage Government action.
The fuel savings, per kilowatt-hour, from fossil fuel plants is comparable to the generation cost of wind.
Government
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# Description particularly in areas of unknown technology such as wind power.
Therefore, the long-term success of the wind energy market will depend on adoption of financial incentives by the Government and the building of capacity to support the private sector’s reaction to these incentives.
6 Lack of adequate and reliable market data to facilitate the monitoring of project impacts and planning of further policy measures.
Date identified
Type
Impact &
Probability
Countermeasures /
Management response
Therefore, the
Government can direct present resources spent on fossil fuel to purchasing or financing wind power. Sudan therefore has a financial incentive to develop wind power.
Owner
Operational Reduced information on the reaction of the market to the measures implemented.
P = 2
I = 2
Close cooperation with the main participants in the local wind energy market and MWRE to obtain the required data will be emphasised.
Robust MRV arrangements will be put in place, in particular for the
NAMA. GHG monitoring can allow estimations of avoided costs (fuel imports, avoided thermal generation
National
Project
Manager
(NPM)
Submitted, updated by
Last
Update
Status
Page 59 UNDP Environmental Finance Services
7
# Description
Inadequate and/or noncapacitated human resources to successfully implement the project and support the mainstreaming of its results.
8 Adverse impacts on residents and ecosystems
(e.g. soaring birds) serve to disrupt or delay wind farm implementation.
Date identified
Type
Impact &
Probability
Countermeasures /
Management response
Owner
Operational Project not meeting the stated targets.
P = 1
I = 5 capacity, etc.) to be derived with a fair degree of accuracy.
The project includes significant capacity building and outreach components to help overcome this risk. The project will use the individuals trained to implement power plants under the project, thereby providing immediate use for the knowledge they have acquired and providing them with immediate income from it.
National
Project
Manager
(NPM)
Environmental
/ social risk
Sufficiently severe This can be mitigated in impacts on local communities or part through collaboration with the ecosystems to disrupt implementation
UNDP-implemented,
GEF-financed biodiversity project,
Government or jeopardise funding (e.g. from international development
“Mainstreaming
Conservation of
Migratory Soaring Birds into the Key Productive
Submitted, updated by
Last
Update
Status
N/A N/A
Page 60 UNDP Environmental Finance Services
# Description
9 Climate Change Risk
10 Risk to settlements
UNDP Environmental Finance Services
Date identified
Type
Impact &
Probability
Countermeasures /
Management response
Owner banks and donors).
P=2
I=3
Environmental
Risk
A shift in wind patterns due to global warming could adversely affect the wind farms. A shift in rainfall causing less flow on the
Nile could reduce hydro-power making wind more important
P=2
I=2
Sectors Along the Rift
Valley/Red Sea Flyway”.
A protocol will be developed to reduce the avian strike risk.
Consideration of long term wind patterns and expected shifts as a consequence of warming should be taken into account when the wind farms are planned.
Government
Social Risk Wind farms may Wind farms should only disturb settlers by be sited on areas causing noise or light flicker.
P=1 sufficiently far from populations to avoid disturbance.
I=2
Government
Submitted, updated by
Last
Update
Status
Page 61
UNDP Environmental Finance Services Page 62
8.2 Stakeholder involvement plan
Stakeholder
Ministry of Water
Resources and Electricity
Renewable Energy
Directorate, Ministry of
Petroleum
Higher Council for
Environment and Natural
Resources (HCENR)
Role
The principal role of MWRE is the implementation of Dongola wind farm and to formulate policies, strategies and action plans for the supply of electricity in Sudan, with a key focus on diversifying Sudan’s electricity mix to include renewables. MWRE will be responsible for implementing the proposed project.
The Renewable Energy Directorate is carrying out extensive wind energy resource mapping along the Red Sea coast that will provide input for the future development of wind farms in the Red Sea region.
As the national focal point for climate change under the UNFCCC,
HCENR is responsible for coordinating National Communications, the development of Climate Change Action Plans, NAPAs, Technology
Needs Assessments and NAMAs. As the focal point for UNFCCC, HCENR is the official Government entity responsible for NAMAs. A study recently completed by HCENR that recommends wind energy being developed as a NAMA. Accompanying the development of NAMAs,
HCENR has a specific plan to develop a Low Emission Development
Strategy for Sudan as an umbrella structure for NAMAs.
Further, HCENR is the Designated National Authority (DNA) and is central to carbon finance activities in Sudan. HCENR is also responsible for assessing EIAs and SIAs for wind farm developments in Sudan in accordance with the Environment Protection Act.
National Energy
Research Centre (under the Ministry of Science and Technology)
Ministry of Environment,
Forestry and Physical
Development (MEFPD)
NERC is the primary institute at the national level for conducting research on renewables in Sudan, as well as pilot project implementation. NERC is also involved in all climate change-related studies that are completed under the UNFCCC.
The Under-Secretary of MEFPD is the GEF Operational Focal Point.
HCENR is a part of the MEFPD.
63
8.3 Terms of Reference for Project Personnel
Project Board
Duties and responsibilities:
The Project Board (PB) is the main body to supervise the project implementation in accordance with UNDP rules and regulations and referring to the specific objectives and the outcomes of the project with their agreed performance indicators.
The main functions of the PB are:
General monitoring of project progress in meeting its objectives and outcomes and ensuring that they continue to be in line with national development objectives;
Facilitating the co-operation between the different Government entities, whose inputs are required for successful implementation of the project, ensuring access to the required information and resolving eventual conflict situations raising during the project implementation when trying to meet its outcomes and stated targets;
Supporting the elaboration, processing and adoption of the required institutional, legal and regulatory changes to support the project objectives and overcoming of related barriers;
Facilitating and supporting other measures to minimize the identified risks to project success, remove bottlenecks and resolve eventual conflicts;
Approval of the annual work plans and progress reports, the first plan being prepared at the outset of project implementation;
Approval of the project management arrangements; and
Approval of any amendments to be made in the project strategy that may arise due to changing circumstances, after careful analysis and discussion of the ways to solve problems.
PB Structure and Reimbursement of Costs
The PB will be chaired by UNDP. The PB will include representatives from the key Ministries and Agencies involved in the project and, as applicable, representatives of the project’s other co-financing partners.
The costs of the PB’s work shall be considered as the Government’s or other project partners’ voluntary inkind contribution to the project and shall not be paid separately by the project. Members of the PB are also not eligible to receive any monetary compensation from their work as experts or advisers to the project.
Meetings
It is suggested that the PB will meet at least once a year, including the annual Tripartite Review (TPR) meeting.
A tentative schedule of the PB meetings will be agreed as a part of the annual work plans, and all representatives of the PB should be notified again in writing 14 days prior to the agreed date of the meeting.
The meeting will be organized provided that the executing agency, UNDP and at least 2/3 of the other members of the PB can confirm their attendance. The project manager shall distribute all materials associated with the meeting agenda at least 5 working days in prior to the meeting.
National Focal Point
As a representative of the Government and the project’s executing agency, the National Focal Point has the main responsibility to ensure that the project is executed in accordance with the Project Document and the
UNDP guidelines for nationally executed projects.
64
His/her main duties and responsibilities include:
Coordinate and guide the work of the Project Manager with the work of the national implementing agency through meetings at regular intervals to receive project progress reports and provide guidance on policy issues;
Certifying the annual and, as applicable, quarterly work plans, financial reports, and ensuring their accuracy and consistency with the project document and its agreed amendments;
Taking the lead in developing linkages with the relevant authorities at national, provincial and governmental level and supporting the project in resolving any institutional- or policy-related conflicts that may emerge during its implementation.
Project Manager (full-time)
Duties and responsibilities:
Operational project management in accordance with the Project Document and the UNDP guidelines and procedures for nationally implemented projects, including:
General coordination, management and supervision of project implementation;
Managing the procurement and the project budget under the supervision of UNDP to assure timely involvement of local and international experts, organisation of training and public outreach, purchase of required equipment etc. in accordance with UNDP rules and procedures;
Submission of annual Project Implementation Reviews and other required progress reports (such
QPRs) to the PB, Executing Agency and the UNDP in accordance with the section “Monitoring and
Evaluation” of the Project Document;
Ensuring effective dissemination of, and access to, information on project activities and results,
(including a regularly updated project website);
Supervising and coordinating the contracts of the experts working for the project;
As applicable, communicating with the project’s international partners and attracting additional financing in order to fulfill the project objectives; and
Ensuring otherwise successful completion of the project in accordance with the stated outcomes and performance indicators summarized in the project’s log frame matrix and within the planned schedule and budget.
Expected Qualifications:
Advanced university degree and at least 6 years of professional experience or university degree with
8 years of professional experience in the specific areas the project is dealing with, such as wind farms, wind development and wind resource assessment, including solid knowledge of international renewable energy experiences, state-of-the-art approaches, and best practices in catalysing the renewable energy market (by applying different policy measures, new financing mechanisms, etc.)
Experience in managing projects of similar complexity and nature, including demonstrated capacity to actively explore new, innovative implementation and financing mechanisms to achieve the project objective;
Demonstrated experience and success in the engagement of, and working with, the private sector and NGOs, creating partnerships and leveraging financing for activities of common interest;
Good analytical and problem-solving skills and the related ability to adaptively manage with prompt action on the conclusion and recommendations coming out from the project’s regular monitoring and self-assessment activities as well as from periodic external evaluations;
65
Ability and demonstrated success to work in a team, to effectively organise it, and to motivate its members and other project counterparts to effectively work towards the project’s objective and expected outcomes;
Good communication skills and competence in handling project’s external relations at all levels;
Fluent/good knowledge of the Arabic and English languages;
Experience in developing countries, and preferably in North Africa; and
Familiarity and prior experience with UNDP is considered an asset.
Project Assistant (full-time)
Duties and responsibilities:
Supporting the project manager in the implementation of the project, including:
Responsibility for logistics and administrative support of project implementation, including administrative management of the project budget, required procurement support, etc.
Maintaining up to date business and financial documentation, in accordance with UNDP and other project reporting requirements;
Organising meetings, business correspondence and other communications with the project partners;
Supporting the project outreach and PR activities in general, including keeping the project web-site up to date;
Managing the projects files and supporting the project manager in preparing the required financial and other reports required for monitoring and supervision of the project progress;
Supporting the project manager in managing contracts, in organizing correspondence and in ensuring effective implementation of the project otherwise.
Expected Qualifications:
Fluent/good knowledge of the Arabic and English languages.
Demonstrated experience and success of work in a similar position
Experience working in developing countries, preferably Sudan.
Good administration and interpersonal skills.
Ability to work effectively under pressure.
Good computer skills.
8.4 GHG Reduction Calculations
Direct GHG Emission Reductions
The calculation is presented in three steps:
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1Calculation of an emissions factor for electricity displaced by project electricity
2Calculation of the electricity generated by the project, according to GEF Guidelines
3Calculation of GHG emissions avoided
At each step, the most conservative assumptions are used.
Step 1:
The weighted average grid emission factor in Sudan for operational plants and expected plants is 0.305 tonnes CO
2
/MWh.
41
Step 2:
The Dongola wind farm lifespan is calculated as being 20 years, in accordance with GEF guidelines. The annual net energy production is taken as 300,917 MWh/year. 42
Step 3:
Multiplying the average grid emission factor by the calculated energy generated from wind energy as a result of the project, the avoided greenhouse gas emissions over 20 years are 1,835,600 tonnes CO
2
.
The Dongola wind farm would be constructed in the baseline, even without GEF assistance. However, the
UNDP-implemented, GEF-financed project will enhance operation of the wind farm (through amendment of wind farm specifications; supervision of construction; and training for MWRE staff on project implementation and management, operational best practices and monitoring, and maintaining turbine blade efficiency in a dusty climate) and will enhance the ability of the wind farm to supply reliable electricity to the grid (through a grid study and assessment of interconnection equipment and grid interface electronics).
Conservatively, the GEF ‘causality’ for the emission reductions associated with Dongola wind farm is assessed to be 40% (“The GEF contribution is modest, and substantial emission reductions can be attributed to the baseline”). Therefore, the direct emission reductions arising from Dongola wind farm are calculated as:
0.4 x 1,835,600 tCO
2
= 734,200 tCO
2
.
Indirect GHG Emission Reductions
Top-down analysis:
Given that the project deals with a limited number of known wind farms instead of a large number of small power sources (as is the case with PV, for example), a bottom-up approach is more appropriate for calculation of indirect emissions.
Bottom-up analysis:
The GEF guidelines provide a formula for bottom-up emissions assessment as:
CO
2 indirect BU
= CO
2 direct
* RF
41 100 MW Wind Power Project
– Dongola Project Design Document.
42 Lahmayer International (2011), Feasibility Study Report: 100 MW Dongola Wind Farm.
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where RF is a Replication Factor. The replication factor for this project is 2.2, as 220 MW of wind farms are intended beyond the 100 MW Dongola wind farm that is included as part of the project. The energy production from these wind farms is estimated at 428,400 MWh/year, based on the wind resource available at the proposed sites.
43,44
The associated greenhouse gas reductions in the 10 year post-project period are therefore:
428,400 MWh/year × 0.305 tonnes CO
2
/MWh × 10 years = 1,306,620 tonnes CO
2
.
Applying a 40% causality factor (with similar reasoning as for the direct emission reductions), the indirect emission reductions are estimated as:
0.4 x 1,306,620 tCO
2
= 522,648 tCO
2
.
8.5 Consideration of Bird Migration and Ecological Impacts
The Environmental and Social Impact Assessment for the 100 MW Dongola Wind Farm does not indicate that an ornithological assessment has been undertaken. It does indicate that 50 bird species have been recorded there, though it does not mention 3 of the 4 threatened species which could be expected to be there based on sensitivity mapping. Three of the threatened species highlighted in the Migratory Soaring Birds Tool sensitivity map as potentially occurring – the Lappet-Faced Vulture
,
Egyptian Vulture and Eastern Imperial
Eagle – are also of high vulnerability to collision with wind farms.
43 Lahmayer International (2011, Feasibility Study Report: 20 MW Nyala Wind Farm.
44 Lahmayer International (2011), Feasibility Study Report: 180 MW Red Sea Wind Farm.
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The ESIA report further states that “a bird survey in one of the migration seasons (a 15-day survey between
March and May or August and October )” should be undertaken during construction”. But this would be at too late a juncture to apply mitigation or micro-siting readjustment to consider any possible action arising out of this survey.
As part of the project preparation phase for the UNDP-implemented, GEF-financed project, a preliminary assessment of the potential impact of the Dongola wind farm on species in the region was performed.
The assessment relied on a site visit by Mr. Marcus Kohler of Bird Life International, and on the use of the
Migratory Soaring Birds Tool (MSB Tool) developed as part of the UNDP-implemented, GEF-financed
Migratory Soaring Birds project. The tool is intended as a source of preliminary site-scale information to be accessed at the earliest stages of the development planning process. It is designed to inform and complement subsequent Environmental Impact Assessments (EIAs) and is considered a complement, not an alternative, to detailed, on-the-ground evaluations.
The site visit did not reveal that the site is of high ecological importance. There were no significant wildlife observations during the period spent on-site. Mr. Kohler did recommend that appropriate ornithological surveys be undertaken. The MSB Tool presents information on 83 species of migratory soaring bird that occur across the Middle East and north-east Africa. Although this is a group of species at particular risk of collision with turbines, it is obviously important that wind developers consider all the biodiversity impacts associated with a project. It is recommended that in further assessments carried out as part of the project, the
Integrated Biodiversity Assessment Tool (IBAT) be used in addition to site surveying as the most authoritative source of wider biodiversity information.
The MSB Tool presents information from a number of sources, primarily Important Bird and Biodiversity
Areas (IBAs). However, it should be noted that Sudan is an especially data-poor country. The information currently available for the Dongola project areas is limited. A search at Dongola (20km radius) produces only seven satellite tracking records for White Stork and a forecast that 16 species of soaring birds may potentially occur within the area, as shown in Figures 14 and 15 of this Project Document, and the screen capture from the MSB Tool below. They show the results of a single point search (buffered to 20km), centred on Dongola town (Decimal degrees—LON: 30.48, LAT: 19.167).
The assessment places the site in the unknown sensitivity category. However, this does not mean that the site is necessarily of no importance for soaring birds. It simply indicates that this area has not been subject to any systematic avian surveys. This is expected as very little ornithological research has been undertaken in this part of Sudan. The ornithological surveys to be conducted as part of the UNDP-implemented, GEFfinanced project will be valuable not only to the Dongola project, but also to contributing to the MSB Tool database.
Despite the limited data available for this region, the assessment does include some useful information. For instance, it shows that seven satellite tagged White Stork have passed through the site. Although this is a relatively small number, only a tiny fraction of the world’s White Stork have been fitted with satellite transmitters, so this could signify a far greater movement of this species through the area – perhaps involving hundreds of birds. If the assessment buffer is increased to 50 km than the site intersects with 23 white Stork tracks and one Peregrine Falcon track.
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The assessment also shows that the known ranges of a number of globally-threatened species with high inherent vulnerability to collision (SVI scores) could potentially occur in the area. These include declining species such as the Lappet-faced Vulture, Saker Falcon and Eastern Imperial Eagle.
It is important to note that the tool only deals with soaring bird species and the Dongola site should also be assessed in terms of other vulnerable taxonomic group, both avian (e.g. bustards) and non-avian (e.g. bats).
A more detailed ornithological survey will be carried out as part of the UNDP-implemented, GEF-financed project.
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8.6 Environmental and Social Safeguards
71
72
73
74
8.7 Letters of Co-financing
75
HCENR Letter of Co-Financing
76
Ministry of Petroleum Letter of Co-Financing
77
Ministry of Water Resources and Electricity Letter of Co-Financing
78
National Energy Research Centre Letter of Co-Financing
79
UNDP Letter of Co-Financing
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Annex 1: Signature Page
Country: Sudan
UNDAF Outcome: Government and stakeholders have evidence-based policies, strategic plans and mechanisms to ensure an enabling environment for improved basic services; and people in Sudan, with special emphasis on populations in need, have access to equitable and sustainable quality basic services.
CPAP Outcome: Populations vulnerable to environmental risks and climate change become more resilient and relevant institutions are more effective in the management of natural resources.
CPAP Output: Investment in green energy and access by needy communities to sustainable energy improved.
Executing Entity/Implementing Partner : Ministry of Water Resources & Electricity
Total resources required
Total allocated resources:
GEF
US$ 217,486,364
Government (cash) US$ 213,250,000
Government (in-kind) US$ 450,000 o
Start date:
UNDP
End Date
Management Arrangements
PAC Meeting Date
Agreed by (Government):
US$ 3,536,364
US$ 250,000
Sept 1, 2014
Sept 1, 2019
NIM
______________
Date/Month/Year NAME SIGNATURE
Agreed by (Executing Entity/Implementing Partner):
SIGNATURE NAME
Agreed by (UNDP):
NAME SIGNATURE
Date/Month/Year
Date/Month/Year
81
