Download Minutes of the Local Project Appraisal Committee: “Appropriate

Minutes of the Local Project Appraisal Committee: “Appropriate Mitigation Actions in the Energy Generation
and End-Use Sectors in Sri Lanka”
Thursday 07 May 2015 at the Ministry of Power and Energy, No 80, Earnest De Silva Mawatha, Colombo 07.
Co-Chairs:
Dr. Suren Batagoda, Secretary, Ministry of Power and Energy
Ms. Lovita Ramguttee, Deputy Country Director, United Nations Development Programme
Present:
Mr. K.L.R.C. Wijayasinghe, Director, Ministry of Power and Energy
Mr. M.M.R. Pathmasiri, Director General, Sustainable Energy Authority
Mr. Vimal Nadeera, Deputy Director General, Sustainable Energy Authority
Ms. Apsara Katugaha, Engineer, Sustainable Energy Authority
Dr. K.D.S Jayathunga, Director, Climate Change Secretariat, State Ministry of Environment
Ms. H.N.K.T Dulani, Assistant Director, State Ministry of Environment
Ms. Hasula Wickramanayaka, Programme Assistant, State Ministry of Environment
Dr. Visaka Hidellage, Assistant Country Director, UNDP
Ms. Dhanushki Abhayaratne, Programme Analyst, UNDP
Ms. Tharuka Dissanaike, Project Specialist, UNDP
Mr. Senaka Ratnayake, Finance Analyst, UNDP
Ms. Ereesha De Silva, Programme Associate, UNDP
Mr. Gamini Senanayake, Independent Consultant, GSA/ UNDP
I. Opening Remarks
Dr. Suren Batagoda, Secretary, Ministry of Power and Energy welcomed the participants, and thanked UNDP for
taking the initiative to organize the LPAC meeting and explained the stand the Ministry is taking in national level
energy conservation and in promoting renewable energy. He stated the minister himself is committed to
promoting renewable energy and energy saving. He mentioned that according to the available data about 60% of
the primary energy is produced from domestic renewable resources. And the target is to increase the energy
generation from non-conventional sources by 20% by 2020. Dr. Batagoda indicated that the proposed project is in
line with the national energy related priorities and will add value to the national drive for NAMA.
Ms. Lovita Ramguttee, Deputy Country Director, UNDP congratulated the officials from Ministry of Power and
Energy, Climate Change Secretariat, Ministry of Mahaweli Development and Environment and Sri Lanka
Sustainable Energy Authority for the successful submission to GEF. Ms. Ramguttee explained the expectations of
the Local Project Appraisal Committee (LPAC) meeting on the “Appropriate Mitigation Actions in the Energy
Generation and End-Use Sectors in Sri Lanka” project. In her remarks Ms. Ramguttee indicated that the purpose
of the discussion is to clarify and obtain any last views from the participants on the approved project document
before signing it. Reviews and observations are requested particularly on the project relevance, the
appropriateness of the approach and suitability of its implementation arrangements. Ms. Ramguttee also
emphasized the importance of timely implementation that the GEF is very stringent on recalling back unspent
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funds from their country allocation. Therefore, she urged the Ministry and SLEA to come up with a feasible
realistic work plan and a budget for the year.
II.
Project Presentation
Dr. Vishaka Hidellage, Assistant Country Director, UNDP presented the project.
While describing the process adopted to prepare the project document she said that the project was developed in
consultation with the key Ministries including Environment, Power and Energy, Finance and Planning and
Provincial councils and LGs, Sustainable Energy Authority, UNDP, Climate Change Secretariat, CEB, Civil Society
organizations, academic institutions, Sri Lanka Carbon Fund, Trade Association, Tea research institute and
various financial institutions. A number of policy and research documents, workshops and consultative sessions
provided the inputs to the project development.
The presentation outlined the project linkages to energy generation and its national targets for Sri Lanka. The
project document was developed in line with the National Appropriate Mitigation Actions and national priorities
to support appropriate climate change mitigation actions in the energy generation and end-use sectors as part of
the initiatives to achieve the voluntary GHG mitigation targets of Sri Lanka. The project design has four major
components which are;
• Business-as-usual energy generation and end-use sector baselines at national and sub-national level
• Mitigation options for the energy generation and end-use sectors
• Implementation of appropriate mitigation actions in the energy generation and end-use sectors
• MRV system and national registry for mitigation actions in the energy generation and end-use sectors
And the main project actions to achieve these components designed to review policy -to overcome the
regulatory, institutional, technical, financial and social barriers for the scaling up of RE and EE NAMA by
dissemination of 1,000 bio-digesters, 1,300 high efficiency motors in tea factories, and 205 solar PV net metering
systems with battery storage and also to develop;
a robust and transparent MRV system that are accurate, reliable and credible and avoid double
accounting
provincial inventory system linked to national level
decision making tools to analyze/prioritize bankable NAMA and
mechanisms to leverage public, private and CSOs resources for the implementation of bankable RE and
EE
Dr. Hidellage also described the proposed management arrangements where the only difference from the agreed
arrangements at the time of submission, was the shift of the Implementing Partner to the Ministry of Power and
Energy from the previous Ministry of Environment and Renewable Energy. The change was initiated due to the
changes made to the mandate of the Ministry of Environment and Renewable Energy by the new Government,
incorporating Mahaweli Development and shifted the Sustainable Energy Authority to the Ministry of Power and
Energy. The changes to the implementing partner was suggested by UNDP, after careful thought and
consultation with the Secretary from the Ministry of Environment and Mahaweli Development, and obtaining
ERD’s consensus.
She concluded by thanking all for the support given by many agencies towards the highly consultative process in
the project development. The project is very strategic for UNDP given that the recent country programme action
plan (2013-2017) focuses on building resilience to impacts of climate change across sectors. The Project Document
clearly outlines the project implementation arrangements, monitoring and evaluation framework, key
stakeholders and risks to the project.
III.
Record of Discussion
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The Chair, Dr. Batagoda opened the floor for discussion. The discussion continued for about an hour and
summarized below:
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Institutional arrangement and mechanism of the project implementation: Dr. Batagoda, the Secretary
reiterated the objectives of the project and its linkages to the national priorities and targets. Dr. Jayathunga
from CCS, Mr. Pathmasiri from SLSEA, Ms. Lovita and Dr. Hidellage from UNDP commented in detail about
the institutional mechanism of the project due to the changed context at the ministerial level to the context
prevailed at the time of the project development and submission. The project design and development had
been supported by a number of technical agencies and Ministries, especially Ministries of Environment,
Climate Change Secretariat, SustLPAC Minutes NAMA Project with MPE May 07 2015 ainable Energy
Authority and Finance and Planning.
Dr. Sunimal Jayathuga, Director, Climate Change Secretariat raised a query on the potential members on the
project board/ national steering committee and the role of the Ministry of Environment in the project. He
mentioned that the Ministry of Environment was supposed to be the implementing agency for the project.
The proposed change of the implementing mechanism pose questions as to how Ministry of Environment can
engage in the project.
Dr. Batagoda mentioned that since this project is closely aligned to the Ministry of Power and Energy core
mandate, that they as the line ministry in charge of the sector are willing to undertake the project
implementation and advised that the Ministry of Environment should provide technical inputs to the project,
and undertake the implementation of component 04 of the project.
Ms. Ramguttee added in saying that the UNDP pursued ERD’s consensus in getting the Ministry of Power and
Energy as the implementing partner for the project since SLSEA is now under the purview of the Ministry.
And also this will also facilitate and not complicate the project design.
The main mechanism for financial management is through the fund transfers to Ministry of Power and
Energy through the Treasury for the project to spend under government procedures, based on an agreed
Annual and Quarterly work plans. There is however, a provision in the project for UNDP to supply direct
services to the project based on common understanding and a written request from the Ministry. As such
UNDP services are available for Ministry of Power and Energy to hire staff or consultants to the project or
undertake certain procurement/ implement certain activities UNDP encourages the NIM modality with
support services from UNDP since this would greatly accelerate the delivery of the project.
1.
Composition of the Project Board: Dr. Batagoda prosed to have two secretaries of the ministries and
UNDP to be in the Project Board. He also mentioned that PB will only monitor the project
implementation but the SEA and Climate Change Secretariat will execute the project. Ms. Ramguttee
also suggested that the ERD should be represented at the PB not as an implementer but as an observer
so that they are also informed of the status of the project and help in the long run in keeping the good
rapporteur. The project can then set up a Steering Committee meeting which then engages all the other
key stakeholders in programme implementation and coordination actions.
2.
Project cadre: Dr. Batagoda suggested that the project should absorb the existing staff and an officer
from the CCS, Ministry of Environment, should be appointed to help execution of the project. He
reiterated that the latest stand the government has taken is that the implementing ministries for donor
funded projects need to take up the project implementation and its administration directly under
Ministries mandate and there will be no separate project units to handle individual projects. SLEA can
appoint two Deputy Directors under the Project Director. However, Dr. Jayathunga at this point
remarked that at the time of the initial submission the arrangement agreed was to have Director General
of the Climate Change Secretariat on part time basis as National Project Director, with a Project Manager
and an assistant project director from SLSES on full time basis. Hence Dr. Jayathunga suggested that the
implementation structure should be discussed again in detail. It was decided to finalise the management
structure during the Inception Phase of the Project, however.
IV. Summary of Decision and Action Points
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Dr. Batagoda requested Dr. Jayathunga and Mr. Pathmasiri to review the project document in detail and provide
comments to UNDP to incorporate all suggestions before the Project Document was signed. The meeting was
concluded agreeing to await any specific urgent comments on the Project Document, especially in terms of the
project implementation mechanism.
A meeting of the two Secretaries of both Ministries will be arranged to discuss further the institutional mechanism
and staffing structure. The project will be nationally executed by the Sri Lanka Sustainable Energy Authority and
Climate Change secretariat with the support from UNDP
Upon incorporation of the meeting recommendations, the Project Document will be submitted for the signature
by Secretary, Ministry of Power and Energy. Upon receipt, UNDP will sign the Project Document and share copies
with ERD, Ministry of Power and Energy.
V. Concluding Remarks
In her concluding remarks, Ms. Lovita Ramguttee said that UNDP is happy to be associated with the project, and
would support its implementation and monitoring. She assured Ministry of Power and Energy of UNDP’s
cooperation and support to deliver project outcomes through results based management.
Dr. Suren Batagoda, Secretary, Ministry of Power and Energy delivered the vote of thanks. In his remarks Dr.
Batagoda, said that he strongly believes in the successful delivery of the project and successful partnership with
UNDP and Ministry of Environment. The implementation will be a collective effort between a number of agencies
and MPE appreciates the support tendered by all stakeholders during project development and expects a high
level of collaboration during implementation. He thanked UNDP for all the support and technical assistance
during project development.
Approved: _________________________________
Date: ________________
Secretary
Ministry of Power and Energy
Approved: _________________________________
Ms. Lovita Ramguttee
Deputy Country Director
Date: _____________
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