11-11-15 Project Document PADpdf 0 0
11-11-15 Project Document PADpdf 0 0
11-11-15 Project Document PADpdf 0 0
Country: Mauritania
PROJECT DOCUMENT
UNDP Strategic Plan Focus Area: Output 1.3: Inclusive and sustainable solutions adopted to achieve
increased energy efficiency and universal modern energy access (especially off-grid sources of
renewable energy).
UNDAF Outcome(s) 2012 - 2016: Outcome 1 National institutions, local and civil society are able to
exercise good environmental governance and economic valuation of natural resources taking into
account climate change.
Expected CPAP Output (s)
From CPAP component 3: Improving environmental governance and rational use of natural resources
Overcoming Barriers: This project seeks to overcome the regulatory, institutional, technical, financial
and social barriers for the promotion of hybrid renewable mini-grids in Mauritania by:
1. Creating an enabling environment to attract private sector participation through the creation of
policy, regulatory, legislative and financial de-risking instruments for hybrid based mini-grid
(diesel/RE) development;
2. Building the necessary capacity to operate, manage and maintain hybrid mini-grid systems in
country through the publication of guidebooks, on-the-job capacity building, the provision of
business and technical advisory services to the national utility and hybrid mini-grid developers
and the provision of tailored capacity building to relevant national agencies;
3. Showcasing a viable hybrid mini-grid business model
Agreed by (Government):
Date/Month/Year
Date/Month/Year
Agreed by (UNDP):
Date/Month/Year
List of Figures
List of Annexes
1.1 Context
Mauritania is a large, 1.030.00 km2, semi-arid country with a population of 3,357 million people
(2013 census), 60% of which is under the age of 25. A little over 41% of the population lives in
urban areas with an increase in urbanization of 2,91% per year. In 2012, the Gross Domestic
Product (GDP) per person was 1 247 USD and estimated at 1 191 USD in 2013. It is estimated
that approximately 20% of the population live on less than $1.25 per day.
The main economic activities include extractive industries1, fishing and agriculture. In terms of
percentage of GDP, industrial activities represent 48%, services represent 37% and agriculture -
including fishing- represent 10% of GDP. While in terms of employment the balance is inverted
1 Extractive industries include all activities related to mining and oil and gas extraction.
Exported resources boost the country’s economy but also expose it to external commodity price
variations. In 2011, extractive industries provided approximately 38% of total country revenues
(excluding foreign development aid) up from 24% of revenues in 2010 (with a balance of 83%
provided by mining activities and 17% by oil and gas). On the other hand, fossil fuel imports cost
545,5 million USD in 2008 in comparison to total revenues of 1 627 million USD, of which 326
million USD came from crude oil exports.
These numbers help to better understand to what extent the country is exposed to commodity
price variations. This was highlighted in a recent IMF analysis of the country’s economy: “a
number of risks that can potentially negatively affect the countries growth perspectives remain,
exposing it to a negative evolution of exchange terms. One of the absolute priorities is to reduce
the economy’s exposure to external price variations2”. The Mauritanian economy will remain
exposed to commodity price variations for its export revenues, but it can help to reduce price risks
by increasing its use of domestic resources for energy needs. The country has already
acknowledged this situation in its national policies by encouraging the use of domestic resources
for its energy needs, starting with the use of domestic gas for electricity production as well as the
promotion of renewable energy resources.
For 2012 Net entropic emissions of GHG were evaluated at 7070,544 Gg Eq-CO2 equivalent to
2.1 tons eq-CO2/person3. Of these, CH4 represents 68% of direct emissions (almost exclusively
from cattle) and CO2 represents 31% of emissions (transport 30%, energy 20%, industry 14%,
residential 12%, land use 6%). Between 1990 and 2012 CO2 emissions increased by 517%,
mainly due to the energy industry.
Mauritania has a wealth of energy sources, be they fossil or renewable. Oil and gas reserves are
not yet fully measured due to their recent exploitation and exploration. In terms of renewables,
solar and wind resources are predominant within the country, while large hydro resources are
taped through the OMVS (Organisation de Mise en Valeur du Fleuve Sénégal)
However, to date, the country is almost exclusively dependent on imported energy sources. This
is why the country has actively promoted the development and use of indigenous energy sources.
For the moment, only a portion of the population has access to modern energy services with 64%
of the country’s primary energy consumption ensured by traditional biomass. Overall, a little over
24% of the population has access to electricity with 60% of the population in urban areas and 5%
of the rural population4. Electricity demand itself is growing by 10% per year, mainly led by industry
needs which represent more then half of total consumption.
2 : Sixth Review of the Three-Year Arrangement Under the Extended Credit Facility and Request for Waiver for breach
4 In 2011, 41,5% of the population lived in urban zones with urbanization increasing at a rythm of 2,91% per year.
The Banda Gas field, whose reserves are estimated at 1.2 Tcf5, is forecasted to enter production
by 2017. The gas reserves will be used to directly produce what is expected to be low-cost
electricity for the grid. However, recent changes in the architecture of the project (abandoning the
initially planned framework of building a jointly owned company with mining industry operators),
risk delaying electricity production from gas. As the first power plant of this project has already
been built (120 MW dual-power plant), it is being run on fuel oil until the Banda gas field is in
production.
RE potential
Mauritania is part of the OMVS (Organisation pour la Mise en Valeur du Fleuve Senegal) and
participates in the projects that are planned and implemented within this framework. Mauritania
currently has 30 MW of the capacity of the Manantali hydro dam, and 18 MW of the hydro Felou
dam. Two additional dams, Gouina and Gourbassi are planned to be completed by 2020.
In the case of wind resources, the values are just as high, but more localized around coastal areas
with a peak of more than 9 m/s winds in the Nouadhibou region. In the northernmost coastal
areas, wind speeds of between 8.3 and 8.7 m / s have been measured. Values drop gradually
further south but they remain above 7 m / s along the coast. These values are quite high in
absolute terms, showing a good potential in coastal areas. It is more difficult to establish wind
patterns inland, since they are affected by topography and specific conditions related to the sites.
5 Source: MPEM
Demand
Annual primary energy consumption in the country was estimated at 4.8 million barrels of oil
equivalent in 2010 (eia). Annual consumption per capita is 0.3 toe (GTZ 2009), and 0.17 toe
without traditional biomass. Mauritania's energy mix is composed of approximately 67% biomass
(wood and charcoal), followed by petroleum products. In other words, petroleum products account
for the vast majority of commercial energy used in the country.
Up to 2015, thermal production capacity is ensured by HFO and Diesel
Source: APAUS
Electrical consumption is increasing by more than 10% per year, while less than 5% of the
population in rural areas has access to electricity6. Electricity demand (including national network
and mining) is forecasted7 to grow from 411 MW in 2013 to between 840 MW and 1,400 MW in
2025 (in the “low” and "high growth" scenarios) It should be noted that 75% of this capacity is
related to mining sector energy demand (1,050 MW in 2025), rendering the growth scenario very
sensitive to mining industry growth.
The total installed electric capacity in Mauritania reaches 411 MW (on and off-grid). This includes
48 MW of hydropower, 18 MW of PV, 4,4 MW of wind power. However, several on-going
renewable projects will increase the renewable share. 30 MW of wind power are installed and
should be in production in second half of 2015, while 30 MW of PV have been funded and should
reach the construction stage in 2015.
Figure 3: Installed electricity in 2014 (MW) (Somelec, Delegated Services Providers, Mining
companies)
Source: MPEM
Electricity tariffs can be split in two different categories. On one side, the national utility,
SOMELEC serves on-grid and major of-grid markets (namely regional capitals, Moughatas), on
the other, Delegated Service Providers serve the off-grid markets. Electricity tariffs are set by
MPEM decree. In the case of DSPs, maximum tariffs are set by the Multi-sectoral Regulatory
Authority (MRA) under MPEM decree. Within the call for proposals to cover an off-grid area, DSPs
propose a tariff. The MRA then assesses the necessary subsidy to be granted to DSPs on a
quarterly basis. These grants are taken from the Universal Access Fund (FAUS), which is funded
by taxes on telecommunication operators as well as state funds. The fund itself is managed by
APAUS, the agency for universal access (covering electricity, water and telecommunications).
The tariff differential between off-grid clients is significant. In rural areas, the equivalent of social
rates can almost double -from 10.6 USD cents to 17.5 USD cents/kWh-, depending if clients are
served by SOMELEC or DSPs. However, SOMELEC’s current rates do not allow the company to
extend its service provision. In 2013 SOMELEC’s balancing subsidy was 20 million USD for 180
000 clients (111 USD/client), while the operating subsidy for DSPs reached a little under 1.5
million USD for 6 000 clients (250 USD/client).
Average costs of on-grid production were estimated to reach 0.16 USD/kWh in 20148. SOMELEC
forecasts production costs to decrease to 0.10 USD/kWh when the Banda Gas will become
available. However, the 120 MW dual Gas-Fuel Oil plant built to use the gas will continue
functioning with fuel-oil until the gas is exploited, increasing production costs significantly. On-grid
wind power is expected to cost between 0.07 and 0.10 USD/kWh9 (respectively 9 m/s and 7 m/s
wind speeds). Obviously, the ultimate cost of production is highly dependent on the cost of
financing, capital costs being one of the more significant elements of renewable energy production
costs.
Off-grid production costs are significantly higher. Electricity produced on mini-grids is estimated
at an average of 0,54 USD/kWh. While an average world-level price for hybrid diesel-renewable
(PV or Wind) mini-grids is estimated to be 0.4 USD/kWh without subsidies10. This helps to better
understand to what extent increased hybridisation of mini-grids in rural areas of Mauritania can
help to decrease the ultimate cost of providing off-grid energy services.
8Source: APAUS/MPEM
9 Study on the master plan on the generation and transport of electric power in Mauritania (Horizon 2011-2030),
Tractebel Engineering, 2010.
10 Hybrid Mini-grids for Rural Electrification: Lessons Learned; Alliance for Rural Electrification (ARE); 2011. And
Hybrid Power Systems; IRENA; 2013
The rate of access to electricity11 is quite low in the country, partly due to the difficulty of extending
the network and to the scattered nature of demand, which makes interconnection difficult. Overall,
it is estimated that the number of households connected to the grid progressed from 22% in 2000
to 24% in 2004 and 34% in 2013.
In order to overcome these disadvantages, the "Master Plan of production and transport of
electrical energy in Mauritania" is considering an extension of the network from the main
consumption centres. Connection areas within a radius of 120 km around the point of generation
/ interconnection are defined to measure the potential of connection to the network / mini-grid.
Some of these areas could be directly connected to the national grid, others powered from solar
hybrid /diesel power / (Kiffa being one of the first areas covered by hybrid production and a 33 kV
network).
11 This is the ratio between the number of households covered and the total number of households in the area or district.
Beyond the implementation of large-scale mini-grids (such as Kiffa, that has a combined capacity
of 1.3 MW from Solar PV and 4.8 MW from diesel generators), the country has also promoted the
development of smaller mini-grids for rural communities for many years. The first renewable
energy-based mini-grids were experimented in the mid-1990s with the Alyzés program (one of
the first UNDP-GEF projects initiated in the country), based on simple mechanical wind-turbines.
Moreover, until recently most of the mini-grid applications were based on diesel generators. In
this vein, all of the regional capitals (Wilayas and Mouqhataas) are served with diesel generators
and mini-grids. The Multi-Functional Platform (MFP) model has also widely been used throughout
the country to improve access to energy services.
Many of these mini-grids are managed and partially maintained by delegated service operators
(DSPE). An institutional system is in place for the selection, management, financing and
verification of delegated service operators. The Multisectoral Regulatory Agency –ARM- (Agence
de Régulation Multisectorielle) is responsible for managing the DSPEs and allocating funds from
the Universal Access Fund FAUS (Fonds d’Accès Universel aux Services)12. For each service
12 L’ordonnance n° 2001- 06 , 27 June 2001: creating the FAUS and APAUS, the agency in charge of implementing
Beyond the existence of a regulatory and financial architecture for the development of mini-grids,
the country has also been exploring the promotion of renewable and hybrid-based mini-grid
development. As previously indicated, the first renewable-based mini-grids were implemented in
the mid-1990s based on wind. Moreover, NGOs and national agencies (APAUS, ADER) have
been promoting the development of renewable based mini-grids on a similar model to the MFP
but based on solar energy. A joint GRET (Groupe de Recherche et d’Echange Technologique –
NGO-) and APAUS project funded by the EU energy facility, (EF) PERUB, installed 24 solar-
based MFP projects between 2008 and 2011, 24 other solar platforms were installed through a
joint UNDP/USAID/APAUS project and 6 others by APAUS. Another project, ERUDI, based on
EF funding, is installing 100 additional solar platforms between 2011 and 2015.
Mauritania has implemented the necessary legal, regulatory and financial structure to promote
the development of hybrid renewable minigrids. However, many issues still remain to be solved,
including the definition of a sustainable infrastructure to promote these projects and defining a
sustainable financial mechanism. Until now, most of these projects have been implemented on
an ad-hoc basis. Despite an existing will to promote hybrid mini-grids, the State is limited by the
availability of funds and the development of a sustainable environment for their expansion.
Renewable energy use is relatively widespread in Mauritania although not yet mainstream.
Renewable energy based applications have been implemented based on needs. As the country
is relatively large with dispersed populations and economic activities, the country has not been
able to develop the electricity network to serve all industry and population needs. Renewable
energy applications have progressively been adopted within the country based on their respective
values and benefits.
Initial renewable energy uptake concerned off-grid solar and wind applications for rural population
needs. The spread of applications run from individual solar kits for homeowners to mini-networks
and solar platforms. Many Development Finance Institution (DFI) programmes and projects have
promoted and directly invested in renewable energy applications in Mauritania. International
NGOs based in the country have a significant experience in this area.
As renewables have become increasingly competitive with mainstream fossil fuel applications,
industries in Mauritania have progressively adopted them. This is namely the case of the telecom
sector that has embraced photovoltaic generation for cell-phone repeater tower energy needs.
Extractive industries, one of the main economic forces within the country, are increasingly
adopting solar and wind solutions for their small off-grid needs. Their success in this area and
the FAUS. The FAUS funds are replenished based on a levy on national telecommunications companies, on license
fees for electricity market operators and multilateral funds.
Mauritania’s government and national agencies are also very active in the promotion and
implementation of renewable energy applications. One of the reasons for this being the increasing
price of fossil fuel imports in the national balance of payments and variable commodity prices that
affect the country’s ability to develop. This has resulted in the inauguration of some of the first
large-scale renewable energy projects in the country (the 15 MW Nouakchott PV project
inaugurated in 2014 and the 30 MW wind farm project in Nouakchott to be inaugurated in 2015).
Several other projects are planned in the short and medium term, the most advanced being an
additional 30 MW PV plant near/in Nouakchott.
Policies
In the past few years, the Government of Mauritania has been quite active in increasing modern
energy access and the promotion of clean energies. This includes the enactment of several legal
acts, among them: (i) an electrical code (intended to liberalize the electricity sector); (ii) a law
establishing a regulatory Authority; (iii) a law13 establishing the creation of a Universal Access
Fund (Fonds d’Accès Universel FAU) mainly fueled by a tax levy on regulated sector operators,
State and aid budgets; (iv) a law establishing the Agency for Promotion of Universal access to
modern energy services (APAUS); (v) a decree creating the National Agency for the development
of renewable energy and energy efficiency (ANADER)14 October 2010; (vi) a policy letter on rural
electrification, outlining the actions of the Agency for Development of Rural Electrification (ADER).
In addition, the Government created a climate change coordination unit (CCPNCC) in 2009 to
organize and address nationwide climate change issues.
The overall mandate of APAUS is the reduction of social poverty by improving the living
conditions, especially in areas with low attractiveness to private operators. The agency ensures
the provision of basic services like water, electricity and telecommunication to rural and peri-urban
areas. The core business model it operates under is one of public ownership of the assets with
delegation of the operations to the private sector. APAUS manages the FAUS, a national fund for
universal access to services. On the other hand, the mission of ADER is specific to the
coordination and facilitation of decentralized rural electrification process. ADER is a private
agency, but recognized by the Government as providing public services. ADER usually is a prime
contractor for executing rural electrification programmes.
To better manage the isolated mini-grids in the provinces, the Government authorized the creation
of hybrid mini-grids. This will help the Government to reduce its heavy subsidy towards the power
Several initiatives on promoting renewable energies are initiated in Mauritania. Among them, a
readiness assessment campaign and several hybrid energy generations that are subsumed as
baseline for this GEF funded project.
In 2011, the International Renewable Energy Agency (IRENA) developed the Renewables
Readiness Assessment (RRA) as “a comprehensive tool for assessing key conditions for
renewable energy technology development and deployment in a country, and the actions
necessary to further improve these conditions". Unlike other assessments, the RRA is a country-
initiated, country-led process that identifies short- to medium-term actions for rapid deployment
of renewables. There are four main phases in this assessment: (i) initiation and demonstration of
intent; (ii) detailed country assessment and action plan; (iii) RRA validation and finalization; and
(iv) follow up.
Mauritania initiated its RRA in 2012. It helped to provide an overview of RE potentials, and a list
of current national RE initiatives in the country. Government officials, key stakeholders and actors
were informed of the process during a workshop held in November 2013 where they were invited
to identify and detail potential actions needed to enhance renewable energy deployment in the
country.
The GEF funded project has been defined within the context of the RRA and will facilitate the
initiation of several actions identified during the RRA.
Projects
The project aims to improve access to electricity in four zones along the coastal area, towards
the north of the country (near Nouadhibou). The four target localities are Lemcid, Lemhaijratt,
Bellewakh, and Tiwillit. They are located in isolated areas far from any electrical grid. Wind energy
was chosen due to the high potential on the Mauritanian coast, particularly in the targeted zones.
The wind speed in that area is about 9 m/s.
The localities chosen are fishing villages, with important activities on fish conservation. Energy is
needed for cooling and ice production. But energy is also needed for the production of drinking
In each locality, the project intends to install wind turbines with a combined capacity of 270kW.
These are small turbines, with mast heights of 11 to 15 meters. The total capacity to be installed
in the 4 localities is about 1 MW of wind energy. This will be hybridized with the already existing
1 MW capacity generated from diesel generators. In addition to the power plant, the project will
build transmission and distribution lines, constituting a mini-grid. The energy will be utilized mainly
for lighting, cooling (fish) and seawater desalination.
The project was prepared by APAUS and submitted for financing to the Abu Dhabi Fund for
Development (ADFD) it was pre-approved in January 2014. Funding is now available. The ADFD
will provide 5 million USD in loans to the project. The final approval and availability of the loan will
occur once the following criteria are met:
o Co-financing (the ADFD covers only 50% of the project cost, the rest needs to be
co-financed);
o demonstration that the project will be well implemented, under an adequate legal
environment;
o demonstration of the potential for replication.
The GEF funded project will help to secure this financing by (i) putting in place an enabling
environment for the development of hybrid diesel/RE based mini-grids, (ii) developing a suitable
business model and financial instruments of these hybrid mini-grids for viability and replication,
(iii) and building partnerships for cofinancing. The GEF proposed project will also use the above-
mentioned diesel/wind power mini-grids as a showcase of a new business model that will promote
confidence, sustainability and replication.
The project aims to improve access to electricity in Kiffa (third city of Mauritania in terms of
population, 600 km south from Nouakchott), meet the needs of populations and economic
activities, through the construction of a hybrid solar PV / thermal power plant.
The total capacity of the plant will be 6.1 MW: 1.3 MW from Solar PV and 4.8 MW from diesel
generators. The actual electricity demand in that region is 2.1 MW, entirely produced from thermal
sources. But that demand is expected to increase by 4.8 MW in 2017 and 6.7 MW in 2022.
The total budget of the project is 30 million USD, in which 19 million USD is dedicated to the
construction of the hybrid plant. The remaining budget will be for the extension of the mini grid
around the Kiffa region and a capacity building program to SOMELEC, the power utility, for a
better management of the plant.
The budget is provided by AFD (French Development Agency) through a 25 million USD of
concessional loan, and 5 million USD as grant, through the EU Energy Facility program.
Besides the Kiffa project, there are many other smaller initiatives for hybrid diesel/RE (mainly
solar PV) plants in provinces in Mauritania. But at this point, all lack secure funding, and are at a
conceptual or feasibility study stage.
Main
Projects Description
stakeholder
Capacity: at NEMA: 6 MW (4MW thermal / 2 MW Solar PV); at Abel Bagrou: 3
MW (2MW thermal / 1 MW Solar PV)
Néma and Adel Budget: 68 million USD (to be secured)
APAUS
Bagrou (East) This projects aims to hybridize and increase the existing thermal plant to 9 MW,
with an extension of the mini grid. The produced electricity is targeted mainly for
households and water pumping.
Capacity: 4 MW (2MW thermal / 2 MW Solar PV)
Atar (North) SOMELEC Budget: 22 million USD (to be secured)
This projects aims to hybridize and increase the existing thermal plant to 4 MW.
Capacity: 2 MW (1MW thermal / 1 MW Solar PV)
Tidjikja (Centre) SOMELEC Budget: 22 million USD (to be secured)
This projects aims to hybridize and increase the existing thermal plant to 2 MW.
Capacity: 4 MW (2MW thermal / 2 MW Solar PV)
Aleg (South) SOMELEC Budget: 22 million USD (to be secured)
This projects aims to hybridize and increase the existing thermal plant to 4 MW.
Atar, Tidjikja and Nema are part of the “Spider centres” (centres araignées). The concept of spider
centres was created to limit the unaffordable extension cost of the main grid. A spider centre
supplies several localities that are linked to the center by a 33 kV Medium Voltage line. Electricity
generation is made from diesel generators installed in the centre. Centres are managed either by
SOMELEC or APAUS.
The above hybrid projects are promising, but most of the funding is not secured yet. The business
model of these projects is not optimized, as it is either managed by the power utility, SOMELEC,
at a highly subsidised cost, or managed by APAUS, through small, delegated service operators
(private sector) with high electricity pricing. The proposed GEF funded project will help to sustain
the hybrid mini grid concept, by introducing a better business model (public private partnerships)
and favoring the replication. The project will enable large–scale replication by removing underlying
policy, technical and financial barriers to investment and management of hybrid based mini-grids.
17 In addition to the listed hybrid diesel/RE projects, there are others that are entirely RE source production (not hybrid),
such as the 15MW solar PV plant in Nouakchott with Masdar, the 3 MW solar PV plant in Zouerate with SNIM, the 15
MW wind power plant in Nouakchott, the 2.5 MW solar PV plant in Aftout with IBD. Etc... But these projects are not
hybrid and do not have the same objective compared to the RE based hybrid projects in the provinces.
Economic activities in these four villages are almost exclusively directly or indirectly linked to
fishing. Most of the transformation of the fishing product is realised by women’s cooperatives.
There are between 2 and 5 women’s cooperatives18 in each village, composed of between 30-
100 women each. These cooperatives take in charge the transformation (drying, scaling, filleting,
production of fish oil) of the fish, producing local added value. Several species of fish are
exploited, depending on the season.
The population itself varies depending on the fishing season. Many itinerant fishermen are active
in the region, mainly from neighbouring Senegal. During the strength of the fishing season, the
populations in villages can almost double.
In addition to economic activities, the project inception mission was able to identify some of the
major cost items for the four villages.
19 1 USD = 290 UM
Mauritania’s electricity sector is governed by the Electricity code, adopted in 200120. Although
aimed at creating a liberalised electricity sector, SOMELEC, the electricity utility remains
predominant within the sector.
Ministry of Petroleum, Energy and Mines (MPEM): The ministry develops, implements and
monitors the enforcement of policies, strategies and programmes in the field of electricity. The
MPEM also provides the governance structures to supervise operational entities such as
SOMELEC and ADER for the Department of Electricity DEME (APAUS falling under the Ministry
of Economic Affairs and Development –MAED). In addition, a Sectoral Focal Point (SFP) has
been created to cover Climate Change issues and ensure the interface with the Ministry of
Environment and Sustainable Development (MEDD).
Multisectoral Regulation Authority (MRA): Established in 200121, the MRA is responsible for
the regulation of activities in the water, electricity, telecommunications, postal service sectors,
and any other area for which it is made responsible. For now, in the field of electricity, it is only in
Agency for the promotion of Universal Access to Basic Services (APAUS): in charge of
access to water, energy, telecommunications / ICT, created in 200122 APAUS is an independent
body funded through diverse sources (in particular overseeing the management of the Fund for
Universal Access to Services (FAUS) for the Government). It also manages the Universal Access
Fund to regulated services that aims to gradually consolidate most of the resources used for the
expansion and operation of these services. The APAUS conducts electrification and infrastructure
development actions in rural villages, whilst being responsible for heavy maintenance of
delegated service generators
Mauritanian Electricity Company (SOMELEC): set up in 2001 following the split of SONELEC
(National Company of Water and Electricity) in view of liberalising the electricity sector. It is
responsible for the generation, transport, distribution and sale of electricity in urban and suburban
areas across the entire national territory. It is also in charge of the management of remote
networks in Mouqhataas.
Mining Companies: Some of the Mining companies are active in the electrification of villages
near their centres of operation. They are also increasingly considering the possibility of reducing
their operating costs through the use of renewable energy to supplement their off-grid needs.
NGOs: A number of NGOs, including international ones such as the GRET, are involved in the
sector. They provide both awareness and demonstration projects in the field of renewables,
especially in rural areas.
Education and vocational training: Education and vocational training are an important factor
for the advancement of the project. Senior education applicable to renewables is dispensed within
the Mauritania “Ecole des Mines” as well as the university. Vocational training centres are
maintained by the SOMELEC and SNIM while technical schools such as the ISET in Rosso and
CSET in Nouakchott ensure basic electrician training.
During the project preparation all of the main actors were contacted and encouraged to participate
in the definition of needs in order to ensure appropriation, in addition proposed activities cover
some of the actions identified during the RRA process. As a result, the project will aim to use
synergies from the planned capacity building activities to ensure the availability of specific,
applicable training modules for the maintenance and installation of hybrid mini-grids. These
training modules will be delivered at two different levels:
One through the “école des métiers” of SOMELEC, the CSET and ISET (vocational
training schools) to train electricians needed for basic management and maintenance of
22 Ordonnance ° 2001-06 establishing the Agency for the Promotion of Universal Access to Services
Legal, regulatory and institutional framework: Although the country has made great steps in
implementing renewable energy projects and promoting the use of renewables for energy service
access, the sector at large is not well organized. The country has led a “project-based” policy,
leading to a great number of installations, but sometimes lacking in terms of the framework for
development. Project coordination and prioritisation need to be developed in line with a national
action plan and policy. Although the regulatory framework exists, for the moment, only Delegated
Energy Service Providers (off-grid) and independent power producers are regulated. The national
electricity company (SOMELEC), although active in rural capitals (provision of electricity for
Mouqhataas), is not under the regulators’ control. In addition, no specific actions have been taken
to ensure the transition from mini-grids to the national grid as the transmission and distribution
network progress. There are no specific provisions to promote hybridisation of distributed
generation networks and local generation as well as to ensure the promotion of these resources
through additional incentives or even adapted financial incentives. Although national legislation
does not prevent the promotion of renewable energy sources, it can be improved to include more
incentives and provisions in line with their specific characteristics and needs. Institutional and
human capacities are insufficient to support rural electrification based on hybrid power plants and
need to be reinforced at all levels.
Technical barriers: The combination of power generation sources, using both a fossil fuel and
RE for a hybrid system, will require qualified people to manage the system. SOMELEC is not
used to manage hybrid systems in isolated areas, and therefore will need technical and
engineering capacities to ensure optimal system design, installation and maintenance. The low
quality and quantity of skilled and competent workers in the power sector increases the cost of
RE operation due to the need to rely on expensive imported services even for basic repairs and
maintenance. The overall management of the technical system will have a real influence on the
lifetime of the system and its affordability to end-users. In addition, the experience acquired will
need to be capitalized on in order to assist existing IPPs (mostly in the mining sector) and
Delegated Energy Service Providers to progressively shift towards a similar model.
Sustainable O, M & M model: The lack of experience with, and demonstration of sustainable
operation, maintenance and management (OM&M) of hybrid diesel/RE-based mini grids poses a
significant barrier. Before any large-scale replication can take place, an O, M & M model has to
be designed and tested in order to minimize the substantial transaction costs and prove economic
and technical viability of solar PV and wind power operations in second cities of Mauritania. The
key missing aspects of a sustainable O&M&M model, that have to be put in place are : (i) technical
oversight over plant operations and responsibility for repairing faulty equipment such as cracked
Solar panels; (ii) an efficient and effective tariff structure which adequately covers both start-up
and O&M&M costs; (iii) a robust and effective financial management, billing and payment
collection system; and (iv) community mobilization, customer relations and conflict resolution
procedures (such as in case of illegal connections or theft), engagement of productive end-users,
etc.
Mauritania has identified energy access as one of its main development priorities within its
development targets. The challenge for Mauritania is to pursue its energy access targets without
creating additional burdens on its national budget while optimising interventions in the sector.
The country has taken action through the definition and identification of priority projects and their
implementation through all available development funding sources. This has led to a concrete
“project-led” policy aiming to provide infrastructure investments wherever possible. These
projects have been implemented through a diversity of actors present in the country. The main
actors being the Agency for Universal Access (APAUS), SOMELEC and the NGO/Agency for the
Development of Rural Electrification (ADER). They have been supported in their actions by
numerous national and international NGOs present in the country. Mauritania also created a
universal access fund (FAUS) aimed at providing basic water, energy and telecommunications
needs for remote areas not covered by the network.
Two areas of action have been identified by the country to reduce the cost of increasing energy
access:
Hybridization of mini-grids, using renewable energy sources to lower the burden of fossil
fuel costs;
Increasing the efficiency of interventions and ensuring optimal management and
maintenance of hybrid mini-grids.
The proposed GEF-UNDP project, commonly called “Hybrid mini-grids” project will help to
contribute to these needs by helping to demonstrate the viability of hybrid systems for remote
uses; by helping to build the necessary legal, regulatory and financial systems and by promoting
the necessary capacity building to help ensure the viability of these systems.
23 MPEM
Poverty Reduction Strategy Paper (PRSP) 2011-2015: Energy has been directly identified as
one of the priorities for the country's development. The strategy paper is aimed at accelerating
economic growth, the basis for all poverty reduction, to improve the competitiveness of the
economy and reduce its dependence on external factors. The second focal area is aimed at
enhancing the growth potential and productivity of the poor. This involves the promotion of sectors
that directly benefit the poor and areas with a high concentration of poverty, while the third area
focuses on developing human resources and access to basic services. The current project
addresses most of Mauritania’s development priorities, helping to provide access to basic
services to the poorest parts of the population while enhancing their growth potential and
productivity through the provision of electricity services while reducing their exposure and
dependence on external factors (i.e. fossil fuels). Furthermore, the PRSP includes a target
whereby the proportion of renewable energy systems (RES) in electricity generation should rise
to 15% in 2015 and 20% in 2020.
The project is in line with Objective 3 “promoting investment in renewable energy technologies”
of the Climate Change Mitigation section of the GEF Focal Area Strategy. While the Second
National Communication to the UNFCCC (2008) of Mauritania highlighted that the Energy sector
is a significant contributor to GHG emissions representing some 14% of total GHG emissions for
the country. The Second National Communication, as well as early results of the third national
communication, identified renewable energy technologies as being able to play an important role
in helping to reduce GHG emissions.
The project also covers a number of the priority actions identified in Mauritania’s National
Environment Action Plan (NEAP, Plan d’Action National Environnement)24. It namely provides
support to four out of six priorities identified within the NEAP. This includes poverty as a central
problem to environmental degradation, human sustainable development including the
environment, and the relation socio-economic development and the environment (actions within
the project aiming to provide environmentally-friendly development solutions). The project also
serves the aim of “diminishing the weight of public debt to facilitate the fight against poverty”, in
effect, the reduction of imported fuel consumption will help to reduce the burden on national
budgets.
In recent years, the Government of Mauritania has undertaken several actions to promote modern
energy service access and clean energies. Mauritania has clearly identified the access to basic
services, including energy services, as one main elements of its national development policy. The
The country has also enacted several legal acts in this vein, including an electrical code
introducing the basis for a liberalized market with a regulator in charge of oversight (the ARM).
More importantly, it has established a Universal Access Fund25 (Fonds d’Accès Universel FAU)
mainly fueled by a tax levy on regulated sector operators, State and aid budgets and an agency,
the Agency for Promotion of Universal access to modern energy services (APAUS) to manage
this fund and implement the projects. The Government also created in 2009, a climate change
coordinating unit (CCPNCC) whose role is to coordinate and address nationwide climate change
issues.
Moreover, the country has also implemented numerous projects within these policy goals,
including a 15 MW PV plant in operation and a 30 MW wind farm in construction. More specifically
in this case, the country is actively promoting access to energy services and hybridization of
remote energy production mini-grids. In this vein, the Kiffa project aims to hybridize electricity
production in remote areas with a 1,3 MWp PV field combined to a 4 MW fossil fuel plant. In
addition, more than 52 solar-based multifunctional platforms have also been installed in remote
villages through combined development funding sources and an additional 100 solar platforms
should be installed in the short term through additional ACP-EU Energy Facility funding for the
ERUDI project.
This GEF funded project will help to support several pillars of the United Nations Development
Assistance Framework (UNDAF). This includes pillar 1 seeking to promote the fight against
poverty and food security, through the creation of local economic activity and the increase of local
added value as well as pillar 3 aiming to improve environmental governance and the rational use
of natural resources.
This project is designed to help demonstrate the viability of hybrid renewable-diesel mini-networks for
remote access needs. It aims to demonstrate the technologies involved and how combining service
provision (electricity, water, cooling/ice) to help create added value within the rural communities can ensure
the maximum development impact while encouraging the necessary economic growth to allow populations
to pay for the related services and necessary maintenance. This project will adopt a two-fold approach:
Assisting to create and implement the necessary institutional and legislative package while
encouraging an integrated approach to capacity building aimed at not only ensuring
project maintenance, but also that future vocational training and technical education
include the necessary elements;
In addition, the project has been strongly anchored within existing country priorities, on-going programmes
and plans. Elements of previously identified priorities (within the UNDP/IRENA RRA process) have been
integrated within the original project design to maximise synergies. These elements, such as:
the creation of a renewable energy observatory;
centralized compilation of renewable energy data collected within implemented projects;
collaboration with the university and vocational training schools to offer concrete training
and ensure the sustainability of training afforded within renewable projects;
the use of existing in-country capacity to help build local expertise;
Have been central to the development of the project.
In addition, partnerships outside of the project perimeter have been developed and pursued to
ensure sustainability and replicability. For example, cooperation with the Small Grants
Programme26 is already envisaged to accompany the adoption of new techniques and added
value activities. This will include assisting the target villages to:
Adopt energy efficient solutions (equipment such as lighting, refrigeration, etc..);
Make the best use of available energy in launching efficient productive, added value
activities (fish transformation);
Potentially combine a waste collection and reuse action to encourage the development of
local agricultural produce (much of the waste being linked to fish remains).
Accompanying local development potential linked to the provision of energy services is one area
where many development projects have lacked. The lack of this type of accompanying action can
explain the lag in energy use in newly equipped villages. The SGP contribution will be key in this
area.
Policy, regulatory, legislative and financial instruments for hybrid based mini-grids (diesel/RE)
development
Capacity Building for hybrid mini-grid system management
Showcasing a viable hybrid mini-grid business model
Component 1: Policy, regulatory, legislative and financial instruments for hybrid based mini-grids
development
This component will enable the development of hybrid mini-grids, by facilitating the increased
share of renewable energies in the already existing and future planned mini-grids. The power
utility SOMELEC, APAUS, and other private and independent power producers, will benefit from
26 The Small Grants Programme in Mauritania has namely focused its GEF6 programming on “Low-Carbon Energy
Access Co-benefits” in order to contribute to satisfying global demand for energy services for people without access to
electricity. In line with the Sustainable Energy for All (SE4ALL) framework, the programme will focus on providing
bottom-up, low-cost energy solutions with a high carbon emission reduction potential.
Basically, the policy framework will promote a “hybrid” business model, combining the utility
business model and the private sector business model. Each of these business models has its
advantages and disadvantages, so combining the two will be more relevant and sustainable.
According to the World Bank, utilities are the most common driver for rural electrification in
developing countries. The principal advantage of the utility model is that the primary responsibility
lies with an experienced party with the financial resources and technical capabilities to implement
and manage the project. Utilities have a privileged position and can easily have better access to
financial mechanisms. Some experts consider that this model is more likely to be successful
because of economies of scope and scale that utilities can generate, but also in the light of their
access to financing27. However, utilities can have a top down approach that is not suitable to local
circumstances and may lose ownership and willingness to pay from local communities. Utilities
are also usually driven by political agendas, and may follow a demonstration approach, by doing
an upfront investment in rural areas, without proper maintenance. This usually leads to a quick
failure of the mini-grid. In the case of Mauritania, the utility does not have access to sufficient
financing, being in chronic deficit due to tariff levels and lack of reform. While it can access funding
through state guarantees, Mauritania itself is not in a position to raise debt as it is still in a transient
HIPC (Highly Indebted Poor Country) status.
The private sector based model is the ideal option. But investing in rural areas presents a high
risk that most of the private companies cannot afford. The capacity of payment in the provinces
is low. But if well established, the private sector model has the advantage to be sustainable, as
driven by profit. But this model leads usually to higher electricity pricing, that customers cannot
afford.
The hybrid model28, what is proposed in this project, will be a combination of the utility and private
sector models. This will be done mainly through public private partnerships. For example, the
utility can invest in the mini-grids installations, while a local private company is responsible for the
overall daily management, maintenance and operating. This kind of arrangement will certainly
lower the O&M&M costs. APAUS has already experienced some kind of cooperation with
delegated service operators that can be compared to a small-scale public private partnership.
The lessons learned from this cooperation will feed the development of the new business model.
This component will help to design policy instruments for long term viable hybrid mini grids, while
developing some financial instruments Output-based aid (OBA) scheme29, long term concessions,
27 Hybrid Mini-Grids for Rural Electrification: Lessons Learned, Alliance for Rural Electrification (ARE), (2011)
28 Hybrid usually refers to the energy source of the mini grids. But here particularly, when associated with business
model, it refers to the combination of 2 traditional business models: the power utility business model and the private
sector business model.
29 The Output Based Aid (OBA) mechanism was modified to exclusively focus on design and planning of improved
instruments. As Mauritania already has a functioning universal access fund, the priority has been put on better design
and planning rather than actual investment. Investment-related funds were transferred to the subsidization of the
equipment in component 3.
This component will address technical barriers to the implementation of hybrid mini-grids. The
aim is to help the power utility SOMELEC, APAUS and potential service providers upgrade their
capacity for delivering turnkey solutions for hybrid systems. Technical assistance will be provided
to a number of competitively selected local SMEs through an open Tender or Call for Expression
of Interest for the provision of solar and wind power equipments. An international technology
transfer partner (an experienced renewable energy company) will be sub-contracted to deliver
such assistance. In addition, the project will provide training courses to system designers
(university/SOMELEC, etc…) and end-users, develop and publish guides on design, installation
and maintenance of hybrid systems. Confidence and capacity building of private sector investors
will be conducted. Also, community organizations in pilot locations (local NGOs and
SMEs/productive users) will be provided with assistance and advice on the relevant aspects of
wind and solar PV operations, such as identification of potential sites, pre-feasibility assessment
and business planning. Key stakeholders in the governments, relevant civil servants, and selected
national agencies will also benefit from the capacity building.
The expected outcome from this component is the improved confidence of communities,
developers, the power utility and potential investors in the technical and economic viability of
hybrid-based mini-grid plants.
The showcase will consist of supporting the hybrid diesel/wind power plant project in 4 costal
zones, by putting in place a suitable business model that allows confidence, sustainability and
replication. If successful, the project will favor similar initiatives and induce other hybrid plants to
secure funding and partners. The showcase will result to the effective installation of 1 MW wind
power.
The showcase will be implemented in conjunction with financial instruments and OBA scheme to
be designed under Component 1. The showcase (entire Component 3) will demonstrate the
financial viability of the proposed business model. Financial viability of hybrid mini-grids will be
addressed by introducing a cost-recovery tariff system (Output 1.2) supplemented by output-
based aid (OBA) scheme (Output 1.3)
Cost-reflective tariffs: Permitting cost recovery and cost-based tariffs is essential to enabling the
power utility and private sector entities to operate hybrid mini-grid systems. These developers
have no ability to cross-subsidize electricity rates and must demonstrate financial viability to
obtain financing. The key challenge and task here is to set the mini-grid tariffs at the right level
that balance profitability of investment, on one side, with affordability of service for consumers, on
the other side.
OBA scheme: While cost-recovery tariff structure is essential to ensure commercial viability of the
service providers for hybrid mini-grid systems, in practice, it is usually unrealistic to expect full
All in all, the combination of two instruments, market tariffs and OBA scheme is seen as the most
suitable choice of instruments to effectively address the underlying barrier, i.e. financial and
economic viability of hybrid mini-grids in Mauritania. The size of the OBA scheme is an initial
estimate that needs further definition. In part the current proposed amount is informed by the
availability of funding. At PPG stage, the cost for the incentive will be clearly quantified.
Through the implementation of the pilot investment project, the appropriateness of proposed
policy and financing instruments will be demonstrated. The demonstrations will also be used as
a testing ground for developing a domestic technology supply chain. Furthermore, these
demos/pilots are expected to generate valuable information on the suitability of, and the practical
implementation of the operation & maintenance & management (O&M&M) models that will be
developed. The project will seek to test a few alternative models, i.e. in addition to the utility and
private sector models, involving community-based organizations (e.g. equipments owned by
association of energy users).
The Project objective is to optimize existing mini grids in Mauritania by providing an adaptive
business model and maintaining a sustainable hybrid system (diesel/RE).
Component 1: Policy, regulatory, legislative and financial instruments for hybrid based
mini-grids development
Outcome 1.1 & 1.2: Enabling policy and institutional framework for hybrid-based mini-grids
set up
This outcome seeks to overcome the policy, regulatory and institutional barriers for creating an
enabling environment for the scaling up of hybrid renewable-diesel solutions as inclusive value
chain business development by strengthening the institutional framework for hybrid-diesel mini-
grid promotion at the national, regional and community level; and operationalize effective policy,
legal, and regulatory frameworks and knowledge management. A strong coherent policy and
strategy supported by transparent institutional, technical and financial framework will send a clear
signal to investors, technology developer, service providers and producers to mobilize their
resources to accelerate the market transformation to sustainable hybrid renewable-diesel
solutions.
Output 1.1: Policy, institutional and legislative package for hybrid-based electrification
adopted
Activity 1.1.1: Support to the government approval and enactment process of the institutional and
legislative package
The project will also closely work with SOMELEC, the national utility, to help them better
understand the aims and goals of the project and how its implementation can help SOMELEC in
reaching its electrification targets. SOMELEC being one of the main national actors with a
consequent ability to influence discussions and decisions, will be closely associated to all work
and proposed decisions/
The GEF project will focus on engaging with stakeholders at the national level. Implication on
cross-cutting issues such as the parallel development of renewable energy projects for the
national grid and the encouragement of hybrid generation by large industry power producers
(mainly off-grid in remote areas) will be taken into account and promoted in order to better
integrate the mini-grid policy in the national framework and to ensure maximum synergies
between actors.
The actors included in this action will include representatives from all Line Ministries, National
Agencies, NGOs as well as local, private sector and industry representatives involved and
affected by the proposed legislative and institutional changes.
Output 1.2: Cornerstone policy instrument and institutional framework defined adopted
and enforced
Reduction of upfront investment costs, financially viable tariff, subsidies, harmonized national
electricity code, concession regimes licensing rules, PPAs and PPPs for hybrid-based mini-grids.
For example, initiating the discussion of possible hybridisation of off-grid industrial energy
production and increased renewable energy production on grid will help to better share the costs
of renewable energy development within the country, not limiting it to off grid applications. In a
similar manner, some of the barriers to renewable energy development within the country include
a perceived risk in terms of capacity to install and maintain renewable systems nationally. The
actions envisaged within Component 2, as well as those related to Action 1.2.2 will allow to initiate
the necessary framework for broader development while allowing to share future costs between
a greater number of actors. This can include the encouragement of:
hybridization of the mining-industry’s generation capacity,
the injection of excess energy from mining electricity generation in a mini-grid around
their company.
The policy-related work of this activity will strongly count on the collaboration and buy-in of the
Government institutions related to the success of the enforcement of such policies (MPEM,
MAED, but also finance, and also other Government. institutions such as APAUS). Such
collaboration will be structured in workshops such as a multi-stakeholder meetings (included in
activity 1.1.3) and a specific workshop on rural electrification in the context of the project.
Although this activity will cover both on and off-grid renewable energy targets and actions, its
main result will be to help reduce the upfront investment, maintenance and management costs
for renewable energy projects, in turn decreasing the tariffs needed to fund renewable-based
projects. By including the larger on-grid and industrial/mining off-grid markets, the legislation will
help to tap the much greater cost reduction potential of the larger, deeper markets to better serve
the ultimate goal: greater, less expensive and cleaner energy access.
Activity 1.2.2 Definition of institutional framework and contractual context for viable mini-grid
management
Beyond the general policy framework, Mauritania needs to adapt the current institutional
framework to better answer current barriers to hybrid mini-grid development and wider renewable
energy development. Adjustment to the current institutional framework will help the country to
better address these issues while avoiding more risky, broader reforms. This activity will namely
help to address the responsibilities for heavy maintenance (currently shared between the DSOs
–for daily maintenance- and National Agencies –for heavy maintenance--, project sizing and
reception of delivered infrastructures.
Refining the process and responsibilities for project design and reception/acceptance of installed
infrastructure will help to smoothen the transition from DSO off-grid to “on-grid” SOMELEC
management of infrastructures. Clarifying the institutional framework & ownership structure of the
infrastructure will also help to make clear responsibilities and avoid gaps in the lifetime
management of projects.
Activity 1.3.3: Vision paper on budgets used & available for RE electrification
A short vision paper will also be prepared to measure current budgets available for rural energy
service development. The analysis would include measurements and predictions of current and
future budgets available for these developments. This will allow measuring to what extent
Mauritania needs to either extend or broaden the collection of funds for off-grid energy service
provision.
This component will address technical barriers to the implementation of RE-diesel based mini-
grids. The expected outputs of this component are to have local capacity (local SMEs with
possible international experienced business partners) to install and maintain the SHP-based mini
grids deployed and also promote partnerships with local companies that can develop and operate
mini-grid concessions or licenses in isolated areas. If Micro grid based electrification is to make a
real difference, it requires both financial capital and business know-how that can develop
replicability. This component is about building human capital.
The project will develop and publish guidelines on design, installation, management and
maintenance of hybrid renewable-diesel mini-grids based on the project’s lessons learned and
similar experiences in other regions. Several sub-sections will be included to cover the
management and maintenance of inverse osmosis water desalination units (used for off-grid
applications) and refrigeration/ice production units. This guidebook will be accompanied by
specific case studies and educational materials aimed to be used in training modules that will be
delivered by the university, the SOMELEC school of trades, and other national schools and
engineering programmes.
The full operation and maintenance manual should be made available on-line to assist delegated
service operators in trouble shooting their installations and maintaining them.
Output 2.2 On-the-job capacity building program for hybrid plant operators delivered,
including on materials, plant design, combination construction, O&M
Successful mini grid projects also require human capital from all those involved in the
development of a project. In the initial phases of the project, traditional concepts of capacity
building, which might focus more on general business skills and technical knowledge, have to be
complemented with project specific and problem targeted technical assistance at specific stages
of the mini grid development. In the later phases, growing from demonstration single projects to
roll out of multiple projects, there will be a need for internally driven human capital development
within mini grid developers to complement the earlier technical assistance received. They need
detailed knowledge of the local target communities and their socio cultural environment; they need
This activity will be focused on Materials and Workshops to be delivered. The Materials will aim
at providing concrete, updated and tailored knowledge about the development of RE-diesel based
mini-grids in the region. A “Technical solutions and Operational Models Guidebook for RE-diesel
based mini-grids” will be published. Capacity building will be about Project Construction, O&M,
implemented through two Training Sessions: Training Session 1: design and construction;
Training Session 2: O&M.
Capacity building will be provided through training courses and workshops designed by an
international consultancy and engineering partner that will deliver such support as part of a
technical assistance and backstopping contract. The initial training will be delivered to the
selected SME as well as representatives from the faculty of the University, of the SOMELEC
school of trades and the other specialised schools of trade. By training the trainers, the project
will help to institutionalise specific concrete training within the institutions active in technical
training and higher education. This will help ensure the availability of hybrid mini-grid training for
all future actors in the sector.
The full training materials will be prepared and made available to the national actors, providing
them with a full training module made available for all country sector actors.
Output 2.3 Business and technical advisory services to the power utility and other hybrid
mini-grid plant developers
Technical assistance will be provided to competitively selected equipment providers and installers
through an open Tender or Call for Expression of Interest for the provision of solar and wind power
equipments. An international technology transfer partner (an experienced renewable energy
company) will be sub-contracted to deliver such assistance.
On the job, technical engineer advice on maintenance management and optimised plant
performance will be made available. Members of faculty trained within the context of activity 2.2
will also be able to participate in the on-the job training efforts.
Output 2.4 Tailored capacity building program delivered to relevant national agencies
Although initial capacity building needs for Delegated Service Operators will have been provided,
all skill levels must be taken into account, including government, local institutions and service
providers. This will include the MPEM’s Sectorial Focal Point (SFP) in order to assess needs.
A study will be launched to determine remaining needs for “training” that may not be available in
the country and identify institutions having the capacity to deliver them. The study of needs will
help to define and produce additional specific training modules to be delivered through the training
and education institutions in the country.
The expected outcome from this component is the improved confidence of communities,
developers, the power utility and potential investors in the technical and economic viability of
hybrid-based mini-grid plants.
The showcase will consist of supporting the hybrid diesel/wind power plant project in 4 costal
zones, by putting in place a suitable business model that allows confidence, sustainability and
replication. If successful, the project will favor similar initiatives and induce other hybrid plants to
secure funding and partners. The showcase will result to the effective installation of 0,5-1 MW of
wind power (exact capacity and design will be finalized based on the detailed technical study
carried out in activity 3.1.2).
The showcase will be implemented in conjunction with financial instruments and OBA scheme to
be designed under Component 1. The showcase (entire Component 3) will demonstrate the
financial viability of the proposed business model. Financial viability of hybrid mini-grids will be
addressed by introducing a cost-recovery tariff system (Output 1.2) supplemented by output-
based aid (OBA) scheme (Output 1.3)
The outcome of this component will be to provide a detailed technical study concerning the village
needs and the wind resources available. This will allow to propose the most viable economic
solution for equipping the villages in energy service needs. Currently, two approaches are
feasible, one involving the individual equipment of each village with its own production capacity,
mini-grid and related services (water treatment + ice production). The other approach would
centralise energy production in one village, and distribute the energy through a medium voltage
line while conserving mini-grid and end service needs in each.
Activity 3.1.2: Site assessment + detailed tech study for most appropriate solution
Preliminary studies show that several solutions can be considered for the provision of energy
services. The detailed site assessment and technical study will be overseen by an international
technical partner in collaboration with local service providers and the USTM. This will allow to
ensure national appropriation of the project with the added benefit of building national capacity to
undertake part of these studies.
Output 3.2: Public-Private partnerships are established for the exploitation of hybrid mini-
grids
The contractual documents will also need to be finalised based on the latest information and
progress made within the context of the project. Moreover, the contracts themselves will need to
be revised and explained to the selected service provider/DSO.
Output 3.3: 0.6 MW of wind power generation capacity + storage + hybrid system
management is installed and managed sustainably in a hybrid power plant covering 4
coastal communities
The work will be divided into lots, potentially allowing national companies to participate in the
construction. However, a single entity will need to be responsible for the finalisation, delivery and
reception of the infrastructure (as general EPC contractor). The transport and distribution lot
should be carried out in close collaboration with SOMELEC in order to ensure that the mini-grid
and surrounding infrastructure can be integrated in the national grid when SOMELEC is in a
position to connect the project to the national grid.
30 The ARM is responsible for the selection, contractualisation and management of DSOs under the current national
Although some of the local population has already adopted limited electricity provision services
through individual solar kits or generators, their use of the available energy and the end-use
equipment is not always adapted to the solutions provided. On the other hand, the vast majority
of the population has only very limited access to energy services. These will need to be assisted
in their use of the installed systems. Finally a number of activities will be made possible by the
new infrastructure. However, the populations do not always have the means to invest in the
necessary equipment. The awareness raising campaign will help them better understand the
potential sources of funding and constraints, such as the partnership with the Small Grants
Programme that is already envisaged to accompany the adoption of new techniques and added
value activities.
As well, the project will seek to disseminate information among the potential target communities
through communication channels such as radio, printed documentation, events and also seek to
establish information channels in the different regions of the country.
Current baseline solutions for mini-grid remote-access energy services in Mauritania are
exclusively based on diesel generation. Electricity produced on mini-grids is estimated at an
average of 0.54 USD/kWh for diesel based electricity generation. While an average world-level
price for hybrid diesel-renewable (PV or Wind) mini-grids is estimated to be 0.4 USD/kWh without
The combined direct and indirect global benefits of the project have been assessed at least 47,000
tons of CO2eq. With a GEF funding request of US$ 1,270,142 US$, this corresponds to an
abatement cost of less than 27 US$ per ton of CO2 reduced.
2.6 Sustainability
From technical and economic points of view, the sustainability of hybrid-based power generation
has been proven in the international market, both in the context of developed and developing
countries. By addressing the underlying policy and financing barriers that impede the
development of hybrid systems in Mauritania, the creation of a sustainable niche for Solar PV and
wind power systems will be realized. Financial sustainability of hybrid system will be ensured via
the introduction of financially viable business models, which in its pilot stage will be supported
with output-based aid scheme and long-term concession. In addition, the project will address the
capacity needs of all actors across the entire rural electrification system value chain. This capacity
building will have long term impact on both sustainability and scaling up.
2.7 Replicability
The project will enable large–scale replication by removing underlying policy, technical and
financial barriers to investment in diesel/RE hybrid-based mini-grids. There are at least 5 hybrid
mini grid projects that can serve as replication. This number is expected to increase gradually in
the future. This constitutes a big potential for replication and scaling up of the proposed GEF
funded project, as an operational business model will be defined and adopted for hybrid mini-grid
systems.
In addition, the availability of specific training for managing and maintaining these systems will
allow to ensure a constant pool of well-trained professionals, while the creation of a renewable
observatory will help to promote these actions and encourage their replication.
2.8 Innovation
31 Hybrid Mini-grids for Rural Electrification: Lessons Learned; Alliance for Rural Electrification (ARE); 2011. And
Hybrid Power Systems; IRENA; 2013
In addition, Mauritania does not have any renewable energy policy, and this project will fill this
gap.
The project will result in direct and indirect GHG emissions reduction and avoidance from
supporting demonstration projects (direct) while facilitating design and implementation of
national policies for hybrid renewable-diesel based electricity generation and capacity building
(including design, maintenance and management) for present and future projects (indirect).
The project is expected to not only reduce GHG emission, but also avoid future emissions
growth by paving the way with the use of energy solutions with renewable technologies. This
provides and contributes to the global goal of mitigating climate change.
The project will enable rural areas to benefit from access to modern energy services, impacting
more than 2 700 people on a permanent basis, taking into consideration that the population of
these villages more than doubles during the fishing season.
With regard to direct GHG emissions, socio-economic analysis conducted during the mission in
the target villages reveal the following baseline energy use patterns:
Lighting is either insured through candles or battery powered electric lights;
For other electricity needs, disposable and rechargeable batteries are in common use,
which are either charged on-site from diesel generators or require long travel (over 20-30
km) to nearby centers for recharge;
Thermal generators exist in some of the locations to supply community centers (health
centers, etc…).
Under a business as usual case, GHG emissions would likely increase since the villages would
eventually be equipped with diesel generation linked to a mini-grid to provide household needs,
water desalination services and ice production.
In this context, project-supported RE-diesel mini grids will replace fossil fuel consumption which
in a baseline scenario would be supplied to the villages and will result in 1,845 tCO2 eq/year the
first year or about 47,000 tons CO2 equivalent over the technology’s 20 year lifetime. This is
Direct post-project: The project does not include activities (e.g., a Fund) that would result in
direct post-project greenhouse gas emission reductions.
Indirect: Using the GEF bottom-up methodology, indirect emission reductions attributable to the
project are 141,000 tonnes of CO2 equivalent. This figure assumes a replication factor of 3.
According to the Manual, Approach 2a-Top-down information but with a bottom-up methodology,
that is: CO2indirect TD= CO2 TM * CF
Thus, the CO2Indirect Top Down reductions are:
5 MW * 8760h * 50% * 0,786 tCO2/MWh = 34,426 tCO2 eq/y; and during the 20 years of
lifetime of the investment, 688,520 tCO2 eq.
As a summary, the estimated Direct and Indirect reduction of CO2 eq emissions is:
Indirect post-
Indirect post-
Time-frame Direct project project (bottom-
project (top-down)
up)
Women bear the brunt of household chores in fishing villages. Women are responsible for water
collection and all household chores, representing a large amount of their productive time. To a
certain extent, they are also mainly responsible for managing household expenses and education.
Not only will local access to electricity and potable water help to reduce costs born by the
households, but also free up time for women. Local access to electricity and drinking water will
help to reduce the time spent on chores. Women are one of the main sources of added value in
fishing villages. In most cases, they are the ones that transform the fishing product, cleaning it,
drying it, transforming it into fish flour or flake and producing fish oil from the remains. In all, a
total of 11 women’s cooperatives, representing more than 420 women, were identified in the four
villages covered by the project.
The production of ice, mainly used for fish conservation, will also help to increase revenue from
fishing in the villages. All in all, between the increased revenue afforded to the households and
decreased costs from the provision of local electricity, water and ice, local populations will have
access to higher revenues. In turn this should allow local populations to conserve more added
value from their own production and re-invest in new activities.
Some of the accompanying programmes, such as the GEF-SGP’s (although not accounted for as
co-funding), will assist the local women’s cooperatives in transforming their produce and
extracting more added value. In addition, the SGP will consider assisting local populations (once
again mostly women’s cooperatives) in collecting the remaining fish residues, transforming them
into fertilizer and initiating a local, small agriculture project.
All of these measures should not only improve the daily life of women, but also assist them in
initiating productive activities to produce more local added value. This will help empower women
that are currently limited in their options to help encourage development.
The project will help to alleviate a number of issues related to Millennium Development Goals.
Villages that are currently very poor and pay the maximum for the little energy services they can
afford will be provided more affordable, accessible energy services and potable water. Villagers
will be able to sell their produce at better prices in the city thanks to refrigeration provided by the
production of ice. Time saved on household chores will provide opportunities for women to
increase transformation and added value to local produce, in turn providing more revenue.
Accompanying programs such as the one provided by the SGP will be able to fund additional
activities including local, small-scale agriculture, helping to increase subsistence farming as well
as limited revenue-producing produce.
The electrification of the villages will assist primary education targets as well. It will allow to
increase the time spent studying after dark while providing an extra motivation for teachers to
The reduction in time spent collecting water and on household chores will free women to increase
their productive activities. Women’s cooperatives already transform the fishing produce, added
corollary programmes will allow them to increase their revenues even more.
The availability of fresh, locally produced drinking water will help to decrease diseases.
More importantly, the project will help to promote sustainable energy sources and a new energy
service business model including water and ice production. This combined model helps to
introduce additional activities for the Delegated Service Operators, justifying higher levels of
presence, maintenance and management since the costs linked to infrastructure management
will be spread over a larger selection of activities.
The project is expected to provide significant socio-economic benefits to the communities covered
by the project. The four coastal villages are traditional fishing villages, whose permanent
population is mainly composed of Imraguens – a native and indigenous ethnic group. Seasonal
activities can double during the villages’ population during the various fishing seasons.
Due to the remote nature of the villages, fishermen are in most cases obliged to sell their produce
directly to wholesalers. As they do not currently have access to cooling or ice for the conservation
of their take, they are obliged to either sell the fish to wholesalers or dry the fish locally. As can
be seen in the following table, prices are much higher on the main Nouakchott fish market then
those proposed by wholesalers.
Based on interviews carried out during the inception mission, an approximate total of 1.4 t of
mullet is fished per year (500 fishing boats for the four villages, for a catch of between 500-1 000
kg/month/boat over the 4 months of the mullet fishing season). The wholesale price for the yearly
total amounts to 751 000 USD, while the Nouakchott market price would amount to 3.7 million
USD, a difference of 3 million USD between the base case and the project case. This provides
an approximation of the potential local benefits, tripling the cash flow to the villages.
In addition, the costs borne by households for their energy services will be reduced at the same
time as those born by fisherman for transporting their produce, while potable water will not only
become available on-site, but will also probably cost less than half of the current prices paid by
This project will contribute to achieving the following Country Programme Outcome as defined in CPAP or CPD: From CPAP component 3: Improving environmental governance
and rational use of natural resources
Primary applicable Key Environment and Sustainable Development Key Result Area (same as that on the cover page, circle one):
4. Expanding access to environmental and energy services for the poor.
Indicator Baseline Targets Source of Risks and Assumptions
End of Project verification
Project Objective Investment in hybrid 0 USD/year (2014) By the end of the project –year 4 Monitoring and Investors’ risk is lower than estimated
To optimize existing RE-diesel mini-grid (EOP): a total of 7 million USD of reporting on total RE-
mini grids in Mauritania projects mobilized in investment from the government, diesel mini-grid
comparison to multilateral aid organisations and investments triggered Co-financing from government and
by increasing the share multilateral institutions does not
of Renewable Energy baseline year 2014 private sector will be mobilized. by the project.
materialize
(RE) and developing an
appropriate business Amount of reduced 2014: the baseline EOP: 47 104 tCO2 M & E framework
model for the CO22 emissions by the assumes that all new The installed capacities are lower than
sustainability of the investments facilitated demand for electricity anticipated;
hybrid system by the project (in rural will be met by diesel
electricity generation generators Downtime of RE-diesel mini-grid projects,
compared with the identification and construction is lengthier
baseline) than expected.
Number of MWH
64.2 MWh (2.5 MWh/y over 20 year Monitoring and
produced under the
lifetime with a 2.5% growth/year) reporting of yearly
project
generation of installed
pilot RE-diesel mini-
Number of people in grid pilot project
rural areas benefiting EOP: 4 sites, 430 households
from access to better benefiting from access to better
services energy services, water and cooling
for fishing produce
Outcome 1.a Legislative package is 0 Revised legislative package MPEM publication of Country priorities for policy and regulation
Enabling policy and designed and enacted encouraging the development of the relevant on rural electrification are shifted to other
institutional renewable energy legislation issues
framework for hybrid- Development and
based mini-grids set submission to the New regulation is not adopted by
up government of the government
Revised institutional Revised institutional framework put in legislation
0 place
framework
Outcome 1.b Revised framework for Existing framework for New framework implemented MRA publication of New, sustainable pricing is deemed
Financial viability of hybrid-based DSP is remuneration not tariffs politically unviable
mini-grid ensured implemented taking hybrid grid
management into
account Political support for DSP extension not
sufficient
The level of Signature of new
investment and tariff 0
partnerships,
reforms ensure the New sources of financing for tariff proposal of new
financial viability of subsidisation researched Legislative and institutional framework
legislation for deemed too risky by IFIs
mini-grids collection of funding
Outcome 2 Ministry and related
Outcome 2: Capacity agency Technicians trained Training module available and Publication available Training and education institutions do not
for delivering turnkey representatives have on a project to project implemented cooperate/prefer keeping their
solutions and quality the capacity to basis prerogatives
understand and Advisory services used for training,
O&M&M project preparation and management
design measures to
ensure quality
O&M&M.
Limited RE training in
Education and vocational schools Participation of schools and Training and education institutions do not
professional training and limited practical universities in project training M&E report deem RE training to be important enough
necessary for quality training in university to modify curriculum
O&M&M are modules
implemented and Non existent
viable.
Outcome 3 Coastal community Non-existent Local populations have adopted M&E report Infrastructure inappropriate for projected
A functioning project is project and devised additional uses, improper installation
business model is demonstrated to be activities to use existing infrastructure
demonstrated for the financially and
technical and technically viable.
financial viability of Political support insufficient
diesel/RE hybrid- Measurement instruments are
Lessons learned from operational and managed in a Equipment
based mini-grids the project are applied management
Non-existent collegial manner
to future off-grid contract/agreement Measurement instruments are damaged
projects. signed
1. Policy, 62000 GEF 72100 Contractual Services-Companies 25,000 25,000 20,000 20,000 90,000 5
regulatory, 62000 GEF 74200 Audio Visual & Print Prod Costs 5,000 5,000 5,000 5,000 20,000 6
legislative and Training, workshop and
financial APAUS 62000 GEF 75700 Conferences 5,000 5,000 5,000 5,000 20,000 7
instruments for
hybrid based mini- 62000 GEF 74500 Miscellaneous 2,500 2,500 2,500 2,500 10,000 8
grids development Total GEF Outcome 1 97,500 87,500 75,000 75,000 335,000
4000 UNDP 72100 Contractual Services - Companies 15,000 15,000 15,000 15,000 60,000 9
4000 UNDP 71400 Contractual Services - Individuals 10,000 10,000 10,000 10,000 40,000 10
Total UNDP Outcome 1 25,000 25,000 25,000 25,000 100,000
Total Outcome 1 122,500 112,500 100,000 100,000 435,000
62000 GEF 71200 International Consultants 10,000 10,000 10,000 10,000 40,000 11
62000 GEF 71300 Local consultants 10,000 10,000 10,000 10,000 40,000 12
62000 GEF 71600 Travel 5,000 10,000 10,000 10,000 35,000 13
2. Capacity Building
for hybrid mini-grid Training, workshop and
APAUS 62000 GEF 75700 Conferences 10,000 10,000 10,000 10,000 40,000 14
system
management 62000 GEF 72200 Equipment & Furniture 5,000 5,000 5,000 5,000 20,000 15
62000 GEF 74500 Miscellaneous 2,500 2,500 2,500 2,642 10,142 8
Total GEF Outcome 2 42,500 47,500 47,500 47,642 185,142
Total Outcome 2 42,500 47,500 47,500 47,642 185,142
BUDGET NOTES
1 International expert (RE-based mini-grids) will, with assistance of local consultants, design the de-risking instruments
2 Local consultant will be hired to support the design of de-risking instruments
3 International/domestic travel to project sites
4 Equipment costs cover promotion documents and equipments
5 Companies hired to support policy design, enact and enforcement
The Project Organization will be compromised of a Project Board, a Project Management Unit, led by the Project
Manager, and specific teams for carrying out the activities for the project and an International Consultancy and
Backstopping unit as Project Support.
MPEM and APAUS will be the government institutions responsible for the implementation of the project and will act
as the Implementing Entity/Responsible Partner. UNDP is the Executing Entity/Implementing Partner for the project
and accountable to the GEF for the use of funds. The project is a National implementation modality (NIM) project.
The overall responsibility for the project implementation by MPEM and APAUS implies the timely and verifiable
attainment of project objectives and outcomes. MPEM and APAUS will provide support to, and inputs for, the
implementation of all project activities.
Working closely with MPEM and APAUS, the UNDP Country Office (UNDP-CO) will be responsible for: (i) providing
project assurance services to government (ii) recruitment of project staff and contracting of consultants and service
providers; (iii) overseeing financial expenditures against project budgets approved by the Project Board; and (iv)
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ensuring that all activities including procurement and financial services are carried out in strict compliance with
UNDP/GEF procedures. A UNDP staff member will be assigned with the responsibility for the day-to-day
management and control over project finance.
The UNDP country office shall provide support services for the Project as: (i) HR activities including recruitment of
project personnel, issuance of project personnel contracts etc; (ii) process of undertaking procurement activities of
project goods and services; (iii) finance transactions; etc and charge the DPC according to Actual Price List for Direct
Support Cost”.
A Project Board 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 co-chaired by UNDP
and MEDD. The MPEM as the key ministry in charge of energy and APAUS, as the key governmental agency in
charge of rural electrification, will ensure that other governmental agencies are duly consulted and involved as per
their mandate such as the Ministry of Environment and Sustainable Development, MAED and others. The Board will
remain sufficiently lean to facilitate its effective operation. Other participants can be invited into the Board meetings
at the decision of the Board.
The final list of the Project Board 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 Board. The project manager will
participate as a non-voting member in the Board meetings and will also be responsible for compiling a summary
report of the discussions and conclusions of each meeting.
The day-to-day management of the project will be carried out by a Project Management Unit (PMU) under the overall
guidance of the Project Board. The PMU will be established in the APAUS offices, consisting of a full time Project
Manager and three Team Leaders responsible for their specific areas, as elaborated in the organizational chart above
(Teams A-Policy and institutional framework-, B-Capacity building, C-Implementation/showcasing). For successfully
doing this, public outreach, establishment of the contacts and co-operation with the key local and international
stakeholders and expert institutions as well as ability for adaptive management and new innovative approaches will
be of utmost importance and will be emphasized in the recruitment. This core team will be complemented during the
project implementation by the required short time legal, technical and financial experts to support the identified
specific areas of work. Contacts with experts and institutions in other countries that have already gained experience
in developing and implementing similar projects are also to be established. The Project Manager will report to UNDP
and the Project Board. The Terms of Reference of the key project personnel are presented in Annexes Part IV 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 Regional Technical Adviser.
At the outset of project operations, a project inception report will be prepared in co-operation with the key
stakeholders, local and international expert(s) engaged in leading or supporting the implementation of the project.
The inception report will include detailed work plans for each subcomponent (output) of the project at the specific
activity level and elaboration of the required resources and stakeholders to be involved for reaching the stated targets.
These output specific work plans will provide the main basis for day-to-day management, implementation and
monitoring of the progress of the project, complemented by the annual monitoring to be done at the Outcome level
by the PIRs. For further details about the project’s overall monitoring and evaluation framework, see chapter 6.
UNDP Mauritania 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 Co-ordination Center and
the GEF as well as organizing mandatory and possible complementary reviews and evaluations on an as-needed
basis. It will also be responsible for procurement of the required expert services and other project inputs and
administer the required contracts. Furthermore, it will support the co-ordination and networking with other related
initiatives and institutions in the country.
For successfully reaching the objective and outcomes of the project, it is essential that the progress of different project
components will be closely monitored both by the key local stakeholders and authorities as well as by project’s
international experts, starting with the finalization 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
UNDP Environmental Finance Services
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identification of possible risks to successful completion of the project together with adaptive management and early
corrective action, when needed.
In order to accord proper acknowledgement to 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 GEF in accordance with the respective GEF
guidelines.
During implementation, proper care will be taken to have adequate communication and co-ordination mechanisms in
place to ensure that areas of common interest can be addressed in a most cost-efficient way.
Project Support will be provided by a competitively selected Technical Consultancy and Backstopping contract, which
will hire an international team of experts with experience in assisting PMU in such kinds of nation-wide, policy
development and technology demonstration projects. The main task of the Project Support team of experts will be to
assist the PMU in the tendering processes of services and works and providing the technical expertise for the efficient
and effective management of the project. The dedication of these experts is not expected to be full-time, thus, they
will not be required to permanently be in Mauritania; they will rather have a fluent and efficient communication with
the PMU staff and will occasionally do field-missions to the country, especially for key moments and events, such as,
at least, a kick-off mission, beginning of Component 3 batches and some workshops.
Short term national consultancies will be hired through competitive process targeting the studies, field-investigations
and research needed to support the development of the project, as described in 2.1.
Short term international consultancies will be hired trough competitive process in order to develop the knowledge
base and the policy, regulatory, project design proposals of the Project, as described in 2.1.
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1. MONITORING FRAMEWORK AND EVALUATION
UNDP will be responsible for monitoring and evaluation (M&E), including organizing project evaluations, approving annual
implementation work plans and budget revisions, monitoring progress, identifying problems and suggesting remediating
actions, facilitating timely delivery of project outputs and supporting the coordination and networking with other related
initiatives and institutions in the country and in the region.
During implementation, proper care will be exercised to have adequate communication and co-ordination mechanisms in place
to ensure that areas of common interest can be addressed in a cost-efficient way.
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 organization 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 GEF Tracking Tool, if appropriate, finalize 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, microfinance schemes, or capitalization 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
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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 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).
Lesson 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.
End of Project:
An independent Terminal Evaluation will take place three months prior to the final Project Board meeting and will be
undertaken in accordance with UNDP and GEF guidance. The terminal 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 terminal 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 Service Centre and UNDP-
GEF.
The 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 GEF Focal Area Tracking Tools will also be completed during the terminal evaluation.
During the last three months, the project team will prepare the Project Terminal Report. This comprehensive report
will summarize 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.
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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,
analyse, 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.
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Budget US$
Type of M&E activity Responsible Parties Excluding project team staff Time frame
time
Project manager and team
UNDP CO
Not required as this project is a At the mid-point of project
Mid-term Evaluation UNDP RCU
MSP implementation.
External Consultants (i.e.
evaluation team)
Project manager and team,
UNDP CO At least three months
Final Evaluation UNDP RCU Indicative cost : 40,000 before the end of project
External Consultants (i.e. implementation
evaluation team)
Project manager and team At least three months
Project Terminal Report UNDP CO 5,000 before the end of the
local consultant project
UNDP CO
Audit Indicative cost per year: 5,000 Yearly
Project manager and team
UNDP CO For GEF supported projects,
Visits to field sites UNDP RCU (as appropriate) paid from IA fees and Yearly
Government representatives operational budget
TOTAL indicative COST
US$ 75,000
Excluding project team staff time and UNDP staff and travel
(+/- 5% of total budget)
expenses
Audit Clause
Audit will be conducted according to UNDP Financial Regulations and Rules and applicable Audit policies.
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2. LEGAL CONTEXT
Standard text has been inserted in the template. It should be noted that although there is no specific statement on the
responsibility for the safety and security of the executing agency in the SBAA and the supplemental provisions, the second
paragraph of the inserted text should read in line with the statement as specified in SBAA and the supplemental provision, i.e.
“the Parties may agree that an Executing Agency shall assume primary responsibility for execution of a project.”
If the country has signed the Standard Basic Assistance Agreement (SBAA), the following standard text must be
quoted:
This document together with the CPAP signed by the Government and UNDP which is incorporated by reference constitute
together 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 security situation in the
country where the project is being carried;
b) 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.
If the country has not signed the SBAA, the following standard text must be quoted:
This document together with the CPAP signed by the Government and UNDP which is incorporated by reference constitute
together the instrument envisaged in the Supplemental Provisions to the Project Document, attached hereto.
Consistent with the above Supplemental Provisions, 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 security situation in the
country where the project is being carried;
b) 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.
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The following standard text for a global/ multi country and regional projects should be included:
This project forms part of an overall programmatic framework under which several separate associated country level
activities will be implemented. When assistance and support services are provided from this Project to the associated
country level activities, this document shall be the “Project Document” instrument referred to in: (i) the respective signed
SBAAs for the specific countries; or (ii) in the Supplemental Provisions attached to the Project Document in cases where
the recipient country has not signed an SBAA with UNDP, attached hereto and forming an integral part hereof.
This project will be implemented by the agency (name of agency) (“Implementing Partner”) in accordance with its financial
regulations, rules, practices and procedures only to the extent that they do not contravene the principles of the Financial
Regulations and Rules of UNDP. Where the financial governance of an Implementing Partner does not provide the required
guidance to ensure best value for money, fairness, integrity, transparency, and effective international competition, the financial
governance of UNDP shall apply.
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 security situation in the country where
the project is being carried; (b) 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.
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IV. Annexes
1. Risk Analysis. Use the standard UNDP Atlas Risk Log template. For UNDP GEF projects in particular, please outline
the risk management measures including improving resilience to climate change that the project proposes to
undertake.
Probability
Date Countermeasures / Submitted, Last
# Description Type & Owner Status
identified Mgt response updated by Update
Impact
The current political
situation in the
country is stable.
However, this risk
exists due to recent
legislative election
Project
contests. To mitigate
implementation is a
this risk, the project
risk, as the country
will build a wide
faced project
coalition of partners
cancellations in the
and stakeholders
1 past due to political Political P34 = 2 N/A N/A N/A
whose interest in
instability. In addition, I35= 4
hybrid mini‐grids
Mauritania is located
promotion will likely
in the very unstable
to sustain, even in
part of the unsecured
case of regime
Sahara.
change. They include
local businesses and
communities, NGOs
and international
development
agencies.
The success of this Initial consultations
project will be with the Government
determined to a large of Mauritania have
degree by adoption indicated an interest
P=1 Project
2 and effective Policy and a willingness to
I= 4 Board
enforcement of the establish a Renewable
proposed polices. Lack Energy Support Unit
of political support and an Investment
may jeopardize the Grant Mechanism for
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achievement of Renewable Energy
immediate results and projects. The political
over‐all impact. will to support this
project is strong.
The crack of Solar The project intends to
panels or wind use proven feasible,
turbines is quite affordable and
common and could adapted technologies
result to systems while replicating
breaking down. solutions that have
Insufficient quality of P= 2 been successfully Project
3 Technology
locally produced I= 5 introduced in several Board
equipment leading to countries in the
early breakdown of region. In this respect,
the systems and the project will build
dwindling consumer partnership with
confidence in the companies established
technology. in the country.
The project voluntarily
decided to work with
already existing mini‐
grids. In these areas,
there is already a
capacity and
Widespread poverty willingness to pay from
and lack of sustainable end‐users. On the
source of income other hand, the
resulting in low ability combination of the Project
P=3
4 to pay for energy Financial power utility business Board
I= 4
supply services. There model and private
is also a lack of ability sector business model
to finance projects for through PPP (public
SMEs. private partnerships)
will reduce the
financial risk from
both side (utility side
and private sector
side).
In Mauritania, hybrid Introduction of
systems will have to financial viable tariff
compete with for hybrid diesel/RE‐
subsidized and locally based mini‐grids will
available diesel P=4 be a cornerstone Project
5 Market
alternatives, such as I= 4 instrument of the Board
Multifunctional proposed policy
platforms (MFP) package and business
running on diesel. model, aimed
Without additional specifically at
UNDP Environmental Finance Services
Page 68
incentives, hybrid addressing this market
plants will likely to risk by leveling the
remain uncompetitive. playing field for RE
against other available
alternatives. Financial
commitments will be
secured to sustain the
policy package and
business model
operation beyond the
GEF proposed project
duration from the
Government and other
donors.
In the case of extreme
Climate change is
climate change,
predicted to cause
regular maintenance
changes and increase
and inspection will
variability of
help to ensure the
Mauritanian solar and
performance of solar
wind patterns. Higher
and wind solutions,
temperatures may
P=2 overheat or Project
6 cause overheat of Climate destruction. The
solar panels and I= 2 Board
choice of resistant and
reduce the
well‐adapted
productivity of these
materials will also be
panels. And stronger
of importance. Both of
wind may cause
these actions are
destruction and
important to protect
broken of panels.
from climate risks.
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2. Terms of Reference: TOR for key project personnel should be developed and attached.
Project Board
Duties and responsibilities:
The Project Board 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 Board 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;
To provide strategic leadership and serve as coordination mechanisms for various partners involved;
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 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.
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.
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Structure and Reimbursement of Costs
Following an agreement at country level, the Project Board will be co-chaired by Ministry of Environment and one UN
agency per year alternately. APAUS, as the key governmental agency in charge of decentralized energy solutions,
will ensure that other governmental agencies are duly consulted and involved as per their mandate. The Board may
also include representatives of other stakeholders, by ensuring, however, that the Board will remain sufficiently lean
to facilitate its effective operation. Other participants can be invited into the Board meetings at the decision of the
Board.
The costs of the Board’s work shall be considered as the Government’s or other project partners’ voluntary in-kind
contribution to the project and shall not be paid separately by the project. Members of the Board 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 Board will have regular meetings, twice a year, or more often if required. A tentative schedule
of the Board meetings will be agreed as a part of the annual work plans, and all representatives of the Board 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 Board 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.
Expected Qualifications:
In evaluating the candidates applying for the position of the project manager, it is highlighted that a committed, full-
time project manager with adequate outreach, results oriented and networking skills is absolutely essential for the
success of the project. Therefore, a specific emphasis in the evaluation will be placed on the demonstrated and
proven capacity and results of the applicants to: i) engage the key stakeholders into constructive discussion about
future development of hybrid mini-grids; ii) to guide and supervise the studies and specifications done and effectively
co-operate with the international experts who are engaged to support this work; iii) to lead the local staff to effectively
support and supervise the project activities; iv) to present the results, findings and recommendations in a convincing
Page 71
manner to key policy-makers and government bodies for the development of hybrid mini-grids; and iv) to identify
areas of future replication.
Contributing to the requirements above, the candidates applying for the position are expected to have:
Advanced university degree and at least 7 years of professional experience or university degree with 10
years of professional experience in management in the specific areas of the project is dealing with, including
solid knowledge of the state-of-the-art approaches and best practices with Renewable Energy projects and
rural electrification;
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, national
and local government agencies, and NGOs, creating partnerships and leveraging financing for activities of
common interest;
Good analytical and problem-solving skills and the related ability for adaptive management 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;
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 French and English languages; and
Familiarity and prior experience with UNDP and GEF requirements and procedures are considered as an
asset
Administrative Manager
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;
Organizing meetings, business correspondence and other communications with the project partners;
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:
University degree experience in economics, business administration or similar with at least 5 years of
professional
Fluent/good knowledge of French and English languages
Demonstrated experience and success of work in a similar position
Good administration and interpersonal skills
Ability to work effectively under pressure
UNDP Environmental Finance Services
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Good computer skills
Administrative assistant
Duties and responsibilities
Supporting the project Administrative assistant, including:
Coordinating 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;
Organizing meetings, minute taking, business correspondence and other communications with the project
partners;
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:
University degree experience in economics, business administration or similar with at least 5 years of
professional
Fluent/good knowledge of French and English languages
Demonstrated experience and success of work in a similar position
Good administration and interpersonal skills
Ability to work effectively under pressure
Good computer skills
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In close cooperation with the PMU and UNDP’s Focal Point on Energy and Environment, and in consultation with
the project partner organizations and stakeholders, prepare Annual Project Work Plans to be agreed upon by the
Project Board (PB);
Provide “on-the-job” technical guidance and mentoring to the PMU in order to strengthen their capacity to
effectively implement the technical aspects of the project;
Support the PM in reporting to the PB on the progress of project implementation and achievement of project
results in accordance with the project's logical framework matrix;
Support the PMU in project-related meetings, as required;
Review reports of national and international consultants, project budget revisions, and administrative
arrangements as required by UNDP/GEF procedures;
Assist the PM in the development of a concrete Monitoring and Evaluation Plan at the outset of the project (within
inception report);
Support the PM in preparing project progress reports, information releases, as well as monitoring and review
reports in accordance with UNDP/GEF monitoring and evaluation rules and procedures;
Support the PM in the preparation and implementation of mid-term review and terminal Independent Evaluation
Missions (TOR’s, identification and recruitment of appropriate candidates, organization of missions, joint field
missions and discussion with evaluators, etc.);
Support UNDP CO staff on their annual monitoring visits to project sites.
Expected Qualifications:
Page 74
3. Special Clauses. In case of government cost-sharing through the project which is not within the CPAP, the following
10 clauses should be included:
1. The schedule of payments and UNDP bank account details.
2. The value of the payment, if made in a currency other than United States dollars, shall be determined by applying the
United Nations operational rate of exchange in effect on the date of payment. Should there be a change in the United
Nations operational rate of exchange prior to the full utilization by the UNDP of the payment, the value of the balance of
funds still held at that time will be adjusted accordingly. If, in such a case, a loss in the value of the balance of funds is
recorded, UNDP shall inform the Government with a view to determining whether any further financing could be
provided by the Government. Should such further financing not be available, the assistance to be provided to the
project may be reduced, suspended or terminated by UNDP.
3. The above schedule of payments takes into account the requirement that the payments shall be made in advance of
the implementation of planned activities. It may be amended to be consistent with the progress of project delivery.
4. UNDP shall receive and administer the payment in accordance with the regulations, rules and directives of UNDP.
5. All financial accounts and statements shall be expressed in United States dollars.
6. If unforeseen increases in expenditures or commitments are expected or realized (whether owing to inflationary factors,
fluctuation in exchange rates or unforeseen contingencies), UNDP shall submit to the government on a timely basis a
supplementary estimate showing the further financing that will be necessary. The Government shall use its best
endeavours to obtain the additional funds required.
7. If the payments referred above are not received in accordance with the payment schedule, or if the additional financing
required in accordance with paragraph ( ) above is not forthcoming from the Government or other sources, the
assistance to be provided to the project under this Agreement may be reduced, suspended or terminated by UNDP.
8. Any interest income attributable to the contribution shall be credited to UNDP Account and shall be utilized in
accordance with established UNDP procedures.
9. Ownership of equipment, supplies and other properties financed from the contribution shall vest in UNDP. Matters relating
to the transfer of ownership by UNDP shall be determined in accordance with the relevant policies and procedures of
UNDP.
10. The contribution shall be subject exclusively to the internal and external auditing procedures provided for in the financial
regulations, rules and directives of UNDP.
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4. Annexes
STANDARD LETTER OF AGREEMENT BETWEEN UNDP AND THE GOVERNMENT FOR THE
1. Reference is made to consultations between officials of the Government of the Republic of Mauritania
(hereinafter referred to as “the Government”) and officials of UNDP with respect to the provision of support services
by the UNDP country office for nationally managed programmes and projects. UNDP and the Government hereby
agree that the UNDP country office may provide such support services at the request of the Government through its
institution designated in the relevant programme support document or project document, as described below.
2. The UNDP country office may provide support services for assistance with reporting requirements and direct
payment. In providing such support services, the UNDP country office shall ensure that the capacity of the Government-
designated institution is strengthened to enable it to carry out such activities directly. The costs incurred by the UNDP
country office in providing such support services shall be recovered from the administrative budget of the office.
3. The UNDP country office may provide, at the request of the designated institution, the following support
services for the activities of the programme/project:
(a) Identification and/or recruitment of project and programme personnel;
(b) Identification and facilitation of training activities;
(a) Procurement of goods and services;
4. The procurement of goods and services and the recruitment of project and programme personnel by the UNDP
country office shall be in accordance with the UNDP regulations, rules, policies and procedures. Support services
described in paragraph 3 above shall be detailed in an annex to the programme support document or project document,
in the form provided in the Attachment hereto. If the requirements for support services by the country office change
during the life of a programme or project, the annex to the programme support document or project document is revised
with the mutual agreement of the UNDP resident representative and the designated institution.
5. The relevant provisions of the [Insert title and date of the UNDP standard basic assistance agreement with the
Government] (the “SBAA”), including the provisions on liability and privileges and immunities, shall apply to the
provision of such support services. The Government shall retain overall responsibility for the nationally managed
programme or project through its designated institution. The responsibility of the UNDP country office for the provision
of the support services described herein shall be limited to the provision of such support services detailed in the annex
to the programme support document or project document.
6. Any claim or dispute arising under or in connection with the provision of support services by the UNDP country
office in accordance with this letter shall be handled pursuant to the relevant provisions of the SBAA.
7. The manner and method of cost-recovery by the UNDP country office in providing the support services
described in paragraph 3 above shall be specified in the annex to the programme support document or project document.
8. The UNDP country office shall submit progress reports on the support services provided and shall report on the
costs reimbursed in providing such services, as may be required.
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9. Any modification of the present arrangements shall be effected by mutual written agreement of the parties
hereto.
10. If you are in agreement with the provisions set forth above, please sign and return to this office two signed
copies of this letter. Upon your signature, this letter shall constitute an agreement between your Government and UNDP
on the terms and conditions for the provision of support services by the UNDP country office for nationally managed
programmes and projects.
Yours sincerely,
________________________
Signed on behalf of UNDP
Mario Samaja
UN Resident Coordinator and
UNDP Resident Representative
_____________________
For the Government
[Name/title]
[Date]
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Attachment
2. In accordance with the provisions of the letter of agreement signed on [insert date of agreement] and
the programme support document [or project document], the UNDP country office shall provide support
services for the Programme [or Project] as described below.
78