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AFRICAN DEVELOPMENT BANK
AFRICAN DEVELOPMENT FUND
PROJECT: INCREASING CLIMATE CHANGE ADAPTIVE CAPACITY
OF RWANDAN COMMUNITIES
Increasing the adaptive capacity of vulnerable Rwandan communities to
adapt to the adverse effects of climate change: Livelihood diversification and
investment in rural infrastructures
COUNTRY: RWANDA
ONEC
October 2016
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Table of contents
Acronyms and Abbreviations .................................................................................................... ii
Grant/Loan Information ........................................................................................................... iv
Project Summary ................................................................................................................... viii
1. INTRODUCTION ............................................................................................................. 1
2. INITIAL PROGRAM ....................................................................................................... 1
2.1 Description and Background Information ....................................................................... 1
2.2 Project Cost and Financing Arrangements ...................................................................... 2
2.3 Status of SEAP Implementation ...................................................................................... 3
3. PROJECT REAPPRAISED .............................................................................................. 3
3.1 Rationale for the Project ............................................................................................. 3
3.2 Justification of the LDCF Grant ...................................................................................... 4
3.2 Objectives and Description ......................................................................................... 4
3.3 Stakeholder Consultation ............................................................................................ 5
3.4 SEAP Revised Financing Arrangements and LDCF funded Project Costs Structure 6
4. Procurement Arrangement and Fiduciary Controls for LDCF Resources: ....................... 7
4.1 Procurement Arrangements ......................................................................................... 7
4.2 Financial Management, Disbursement and Audit Arrangements ................................... 7
5. PROJECT FEASIBILITY ................................................................................................. 8
5.1 Financial & Economic Performance ............................................................................... 8
5.2 Environmental and Social Impacts .................................................................................. 8
5.3 Project Sustainability....................................................................................................... 9
5.4 Key Risks and Mitigation Measures ............................................................................. 10
6. IMPLEMENTATION ..................................................................................................... 11
6.1 Implementation Arrangements ...................................................................................... 11
6.2 Other executing partners ............................................................................................... 12
6.3 Monitoring ..................................................................................................................... 13
6.4 Knowledge Building ..................................................................................................... 14
7. JUSTIFICATION IN RELATION TO BANK POLICIES FOR LDCF GRANT .......... 14
8. LEGAL INSTRUMENTS AND AUTHORITY ............................................................. 15
8.1 Legal Instruments .......................................................................................................... 15
8.2 Conditions associated with the Bank Intervention ........................................................ 15
8.3 Compliance with Bank Policies .................................................................................... 15
9. CONCLUSIONS AND RECOMMENDATIONS .......................................................... 16
Annex 1. Financial management and disbursement arrangements ............................................ I
Annex 2 – Procurement arrangements .................................................................................... III
Annex 3. Profile of Intervention Areas for Additional (LDCF) Financing............................. XI
Annex 4. Detailed Additional Program Activities and Costs ............................................... XIV
Project Document Annex 1: GEF PIF Approval ................................................................ XXIII
Project Document Annex 2: GEF CEO Approval............................................................. XXIV
Project Document Annex 3: Government Request to the Bank for Project Financing ....... XXV
i
Currency Equivalents
As of [22 September 2015]
1 USD = 745.456 RwF
1 UA = 1.41 US$
1 UA = 1,129.2167 RwF
Fiscal Year
1st July – 30th June
Weights and Measures
1 metric tonne = 2204 pounds (lbs)
1 kilogramme (kg) = 2.200 lbs
1 metre (m) = 3.28 feet (ft)
1 millimetre (mm) = 0.03937 inch (“)
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ii
Acronyms and Abbreviations
ACNR Association pour la
Conservation de la Nature au
Rwanda
ACPC African Climate Policy Centre
AMAT Adaptation Monitoring and
Assessment Tool
ARAP Abbreviated Resettlement
Action Plan
AWP/B Annual Work Plans and
Budgets
BH Budget Holder
CC Climate Change
CEO Chief Executive Officer
CIP Crop Intensification Program
CNA Capacity Needs Assessment
CoBRA Community Based Resilience
Analysis
CPPR Country Portfolio Performance
Review
CSP Country Strategy Paper
CVCA Climate Vulnerability &
Capacity Assessment
DANIDA Danish International
Development Agency
DCC Department of Climate Change
DDP District Development Plan
DRC Democratic Republic of Congo
EARC East Africa Regional Resource
Centre
EARP Electricity Access Roll-out
Program
EDCL Energy Development
Corporation Ltd
EDPRS-II Economic Development and
Poverty Reduction Strategy II
2013-2018
EIRR Economic Internal Rate of
Return
ESIA Environmental and Social
Impact Assessment
ESMP Environmental and Social
Management Plan
FAO Food and Agricultural
Organization
FC Foreign Exchange Costs
FONERWA National Fund for Environment
and Climate Change
FSP Full Size Project
GEF Global Environmental
Facility
GIZ German Federal Enterprise
for International Cooperation
GMO Gender Monitoring Office
GoR Government of Rwanda
HH Household
ICCAC Increasing Climate Change
Adaptation of Rwandan
Communities
IDP Integrated Development
Program
IMS Information Management
System
IPRC Integrated Polytechnic
Regional Center
IWRMD Integrated Water Resources
Management Development
JPF Joint Partnership Fund
KAP Knowledge, Attitude and
Practices
LAFREC Landscape Approach to
Forest Restoration and
Conservation
LC Local Costs
LDC Least Developed Country
LDCF Least Developed Countries
Fund
LTO Lead Technical Officer
LTU Lead Technical Unity
LV Low Voltage
MIGEPROF Ministry of Gender and
Family Promotion
MINAGRI Ministry of Agriculture
MINICOFIN Ministry of Commerce and
Finance
MINICOM Ministry of Trade & Industry
MINILOC Ministry of Local
Government
MINIRENA Ministry of Environment and
Natural Resources
MININFRA Ministry of Infrastructure
M&E Monitoring and Evaluation
MoU Memorandum of
Understanding
MTE Mid-Term Evaluation
MTR Medium Term Results
MV Medium Voltage
iii
MVA Mega Volt Ampere
NAPA National Adaptation
Programs of Action
NCCP National Climate Change
Policy
NGO Non-Governmental
Organization
NISR National Institute of Statistics
of Rwanda
NPV Net Present Value
ONEC Department of Energy,
Environment, and Climate
Change (AfDB)
PAR Project Appraisal Report
PAREF Participatory forest
Management Project
PCR Program Completion Report
PERGP Integrated Project for
Ecosystem Rehabilitation and
Green Village Promotion
PIF Project Identification Form
PIR Project Implementation
Review
PLPA Participatory Learning,
Planning and Action
PM Project Manager
PMERL Participatory Monitoring
Evaluation Reflection and
Learning
PMU Project Monitoring Unit
PPG Project Preparation Grant
PPR Project Progress Report
ProDoc Project Document
PSC Project Steering Committee
PTF Project Task Force
RAB Rwanda Agricultural Board
RAP Resettlement Action Plan
RBCSP Results Based Country
Strategy Paper
REG Rwanda Energy Group
REMA Rwanda Environmental
Management Authority
RwF Rwandan Franc
SCCF Special Climate Change Fund
SEAP Scaling up Energy Access
Project
SHG Self Help Group
SME Small and Medium Enterprise
SPIU SEAP Project
Implementation Unit
ToR Terms of Reference
ToT Training of Trainers
TVET Technical and Vocational
Education and Training
UA Unit of Aid
UNDP United Nations Development
Program
UNEP United Nations Environment
Program
UNFCCC United Nations Framework
Convention on Climate
Change
USAID United States Agency for
International Development
US$ United States Dollar
VAT Value Added Tax
VfM Value for Money
iv
Grant/Loan Information Client’s information
RECIPIENT: Republic of Rwanda
EXECUTING AGENCY: The Energy development Corporation (EDCL)
Email: [email protected]
IMPLEMENTING UNIT: SCALING UP ENERGY ACCESS PROJECT
IMPLEMENTATION UNIT (SEAP-PIU)
REF DOCUMENTS SCALING-UP ENERGY ACCESS PAR
CEO ENDORSEMENT PROJECT DOCUMENT
Financing plan
Source Amount in USD (UA) Instrument
GEF/LDCF 8,824,749 (UA 6.259M) Grant
AfDB (15.494M) (Loan) approved already
AfDB (11.871M) (Grant) approved already
Government of Rwanda 3.932 (UA 2.595M) In Kind
TOTAL COST 51.58M (36.580M)
ADF’s key financing information
Loan/grant currency
USD
Interest type* N/A
Interest rate spread* N/A
Commitment fee* N/A
Other fees* N/A
Tenor N/A
Grace period N/A
EIRR, NPV (base case) N/A
*if applicable
Timeframe - Main Milestones (expected)
GEF PIF approval
February 2014
Project approval October 2016
Signing of Grant Agreement December 2016
Effectiveness December 2016
Mid-term Review October 2018
Last Disbursement June 2021
Completion December 2021
Last repayment N/A
v
Country and project name: RWANDA – Increasing the adaptive capacity of vulnerable Rwandan communities to adapt to the adverse
effects of climate change: Livelihood diversification and investment in rural infrastructures
Purpose of the project: To increase the adaptive capacity of vulnerable Rwandan communities to adverse effects of climate change through
livelihood diversification and investment in rural infrastructure
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/MITIGATION
MEASURES Indicator
(including CSI) Baseline Target
IMP
AC
T
Impact:
Improved
quality of life for
the Rwandan
People
- Per-capita income
- Human
Development
Indicator (HDI)
- % of population
living below
poverty line
US$ 700 in
2015
HDI = 0.433
in 2014
39.1% (2014)
US$ 900 by 2020 in
line with vision 2020
HDI = 0.5 in 2020
Less 30% by 2020 in
line with vision 2020
- IMF country
review report
- Human
Development
Reports and
National
economic
statistics
OU
TC
OM
ES
Outcome 1:
Diversified,
strengthened and
climate resilient
rural livelihood
opportunities for
vulnerable
women and men
in the project
area
% reduction in post-
harvest losses from
improved and
greened
infrastructure
35% 10% Project supervision
and M&E reports,
and Project
Completion report;
Government reports
at District levels
Risk 1: Climatic conditions
(destructive rains and
unpredictable seasons) hamper
project interventions (planting
etc.).
Mitigation Measures: The
project will build in flexibility
in terms of resource
disbursement to enable
communities to bring forward
project interventions if
necessary.
Risk 3: High costs and
insufficient supply of
electricity impedes livelihood
diversification.
Mitigation Measures: Project
will invest in a range of
livelihood opportunities with
varying power requirements
Risk 4: Inadequate political
and social support for
mainstreaming climate change
considerations into the
development processes,
Mitigation Measures: Project
to identify and secure the
services of a consultant to work
with communities and the
government in an participatory
monitoring
% increase in
knowledge of
livelihood
opportunities with
electricity access
% increase in
economic enterprises
for youth and women
from the new
enterprises
30% 80% of communities
aware of alternative
livelihood options
with electricity access
0 Over 30% of women
and 50% of youth in
the project
community have
increased income
from the new
enterprises
Outcome 2:
Community
driven
adaptation and
reduced
vulnerability to
climate change
% increase of HH
with knowledge on
vulnerability and
resilience to climate
change and gender
responsiveness
10% 80 % of HH in the
region will have this
knowledge by 2020
Project Supervision
and M&E reports;
National survey data
and District reports;
Completion Report
Number of
community groups
with capacity to plan,
implement and
monitor adaptation
programs
0 At least 15
community groups
with capacity
District level
development plans
and policies updated
with climate risk
management
provisions.
0 4 District level
programs,
development plans
and/or policies
updated with climate
risk management
provisions
vi
Outcome 3:
Increased
resilience of
small scale rural
infrastructure to
climate change
% of infrastructure
projects adopting
specifications that
takes into account
anticipated climate
risk for small rural
infrastructure
projects
0 100% and particularly
for community
markets, post-harvest
and agro processing
facilities.
Project Supervision
and M&E reports;
National data and
district reports
Designs reports
OU
TP
UT
S
Output 1.
Climate resilient
opportunities
developed for
rural Households
1. No of HH with
enhanced
understanding and
awareness of
livelihood
opportunities
resulting from
electrification
0 110,000 Project Supervision
and M&E reports;
National data and
District reports
2. No HH with
increased capacity to
participate in market
oriented enterprises
0 110,000
3. No of Value chain
development
activities
0 9
4. % of off-farm
economic
opportunities
increased
TBD Increase by 50% of
2015 figures with
30% women and 20%
youth involved
Output 2.
Community
driven
adaptation and
climate risk
reduction
processes
1. No of Training on
social dimensions of
vulnerability and
resilience to climate
change conducted.
0 8 (2 per year) with at
least split equally
between genders and
with 20% of
participants being the
youth
Project Supervision
& M&E reports
2. No of Awareness
campaigns on climate
change impacts and
promotion of gender-
responsive climate
adaptation
conducted.
0 8
3. No of Trainings for
district
administrations and
communities on
coordination and
support on climate-
resilient development
planning at the local
level conducted
0 4 (at least 30% of
participants being
women)
4. No of community
based planning,
implementation and
monitoring
adaptation programs
implemented
0 6
vii
Output 3.
Climate resilient
small scale rural
infrastructure
1. No of small
projects built with
specifications that
take into account
anticipated climate
risks
0 9 post-harvest
infrastructures built
and operational (3 per
district)
Project Supervision
and M&E reports;
Districts, Minutes of
market space
allocation and
training reports
2. No of markets
upgraded
0 6 – 2 per district with
30% of space
allocated to women
and 20% to youth.
3. No of trainings and
modules on climate
risks on the design
and construction of
small-scale rural
infrastructure
4 conducted for
District Engineers,
Administrators and
local contractors
Output 4:
Monitoring and
Evaluation
1. No of climate
change adaption
knowledge products
developed and
disseminated to the
community
0 6, including training
modules
Project Supervision
and M&E reports;
list of training
participants.
2. Conduct climate
change adaptation
practitioners event
0 2, with at least 30%
participants being
women and 20%
being youth
3. Project
Implementation
Reviews
0 Twice annually and
reports prepared
Components Inputs
AC
TIV
ITIE
S Component 1: Enhanced and diversified climate resilient rural livelihood:
Component 2: Strengthening awareness and ownership of adaptation & risk reduction process:
Component 3: Climate resilient small-scale rural infrastructure:
Component 4: Monitoring and Evaluation:
Component 5: Program Management Costs:
USD 3,000,000
USD 1,154,749
USD 4,000,000
USD 250,000
USD 420,000
viii
Project Summary Increasing Climate Change Adaptive Capacity of Rwandan Communities
Task Manager Humphrey N. Richard Grant Beneficiary Ministry of Infrastructure (MININFRA)
Division ONEC2 Grant Amount US$ 8,824,749
Project
Overview
The project for Increasing Climate Change Adaptive Capacity seeks to increase the adaptive
capacity of vulnerable Rwandan communities to the adverse effect of climate change through
livelihood diversification and investment in rural infrastructure. The project will maximize
the impact of an on-going AfDB funded project – Rwanda Scaling-up Energy Access Project
(SEAP), which provides infrastructure to distribute electricity for households and public
institutions and creates and expands opportunities for local populations to pursue non-
agricultural electricity-dependent income generating activities.
Project
Rationale
Climate variability and uncertainty inflicts significant negative impacts on the lives and
livelihoods of the Rwandan population. In the Northern and Western parts of the country,
climate data suggest that rainfall is likely to become more erratic with increasing intensity
and uncertainty, making rain-fed agriculture precarious and vulnerable. The livelihoods of
80% of mostly women and youth living in the rural parts of the country have largely
depended on agriculture as alternative livelihood opportunities are limited by the lack of
electricity, appropriate skills, and inadequate agro infrastructure facilities. The Baseline
Project, SEAP provides electricity services to the region, but last-mile productive activities
remains an issue as this was not factored in the project. The project financed with the GEF-
Least Developed Countries Fund (LDCF) is meant to address this gap. It will provides the
expertise and resources needed to maximize the impact of the SEAP by creating and
expanding opportunities for local populations to pursue value addition agricultural activities
and non-agricultural electricity dependent income-generating activities.
Project
Outcomes
The project will impact the lives of over 800,000 people and has the following key Outcomes
(i) Diversifying and strengthening climate resilient rural livelihood opportunities for
vulnerable communities in North and Western regions of Rwanda, (ii) Strengthening
awareness and ownership of adaptation and climate risk reduction processes, and (iii)
Increasing resilience of small scale rural infrastructure to climate change.
Development
Outcomes
The project is aligned with several national and local strategies related to climate change and
environmental management and builds on existing activities, such as Vision 2020, EDPRS II
(2013 - 2018), and Rwanda’s National Green Growth and Climate Resilience Strategy. The
project is also consistent with the Governments Energy Sector strategy Paper by promoting
productive use of electricity in rural areas.
Alignment with
GEF/LDCF
objectives
The GEF-LDCF priority focus is to finance projects that address the urgent and immediate
climate change adaptation needs of Least Developed Countries by seeking to reduce the
vulnerability of sectors and resources which are essential to social progress and national
development in the framework of National Climate Change Adaptation Program of Action
(NAPA). The goal of the project is aligned with this objective.
Cost Structure The GEF-LDCF grant of USD 8,824,749 will add resources to the ongoing SEAP funded by
the Bank and the Government in the amount of UA 29.961M which includes Government
contribution of over UA 2.596M (approximately US$ 4.0M at appraisal).
Implementation
arrangement
The Energy Development Corporation Ltd (EDCL) of the Rwanda Energy Group will be the
Executing Agency. The SEAP Project Implementation Unit established by EDCL will be the
Implementing Unit and will be strengthened with technical specialists assigned from the
Rwanda’s Fund for Environment and Climate Change (FONERWA).
Banks added
value
The Bank plays a lead role in Rwanda’s energy sector especially in regional power
integration and rural access to electricity. The Bank has also facilitated to country to access
several special funds particularly from Climate Investment Fund to support the country in
scaling up access to electricity services and promoting use of Renewable Energy. The
proposed project is consistent with the Bank’s 2013-2022 strategy of inclusive growth and
gradual transition to “green growth”. The project is also in sync with four of the Bank’s High
5 priority areas – light & Power Africa, Feed Africa, Industrialize Africa and Improving the
Quality of Life of the African people. The Project also supports the Bank’s new Strategy for
Jobs for Youths in Africa 2016 – 2025 that aims to creates millions of jobs for youth and
equip them to realize their full potential. It is also aligned with the Rwanda CSP 2012 – 2016
pillar 1 which aims at maximizing employment generation and gender responsiveness.
REPORT AND RECOMMENDATION OF MANAGEMENT CONCERNING A PROPOSAL FOR THE
INCREASING CLIMATE CHANGE ADAPTIVE CAPACITY OF RWANDAN
COMMUNITIES
Management hereby submits the following Report and Recommendation for
implementation of GEF/LDCF grant of US Dollars USD 8,824,749 (equivalent to UA
6.26 M) to the Government of Rwanda as additional funds to build community
resilience to climate change as part of the Scaling up Energy Access Project.
1. INTRODUCTION
1.1 The African Development Bank approved the Scaling Up Energy Access Project
(SEAP) for a US$ 45 million (loan+grant) on 26th June, 2013. The project, executed by
Energy Development Corporation Ltd (DECL) of the Rwanda Energy Group (REG), covers 6
districts in the Northern and Western provinces of Rwanda (Rusizi, Nyamasheke, Nyabihu
and Karongi districts in the Western Province and Rulindo and Gicumbi districts in the
Northern Province). The SEAP seeks to (i) improve access to electricity for households and
priority public institutions in the proposed project area and (ii) contribute to a sustained
reliable electricity supply.
1.2 The LDCF/SCCF Council approved the LDCF1 Work Program including the Project
Identification Form (PIF) for an LDCF grant of US $8,824,749 in May 2016. The additional
funding is to mainstream adaptation activities into the SEAP project.
2. INITIAL PROGRAM
2.1 Description and Background Information
2.1.1 Rwanda has one of the lowest per capita rates of electricity consumption in the world;
the country consumes about 42 kWh/year/capita, compared with the average of 478 kWh in
sub-Saharan Africa and 1,200 kWh for developing countries overall. The numbers make clear
Rwandans’ sizable need for additional electricity services. At the time of the SEAP appraisal,
the Electricity Master Plan of 2011, currently under review provided the basis of demand
projections under a scenario assuming that electricity access may reach 35% of the
population by 2017. The seven-year electricity development program used a more aggressive
growth rate for overall electricity consumption (based on a 2017 access target of 50%) to
arrive at an estimated peak demand of 350 MW for 2017. However, the government’s most
recent decision, to achieve 70% access by 2017/18, would imply total peak demand of up to
410 MW by 2017 and requiring a total of 563MW of installed and imported generation
capacity.
2.1.2 The Bank’s Country Strategy Paper (CSP) for Rwanda (2012–2016) seeks to support
two strategic pillars: (i) infrastructure development through interventions to address the
1 The Least Developed Countries Fund (LDCF) was established on directives to the Conference of the Parties to the United Nations
Framework Convention on Climate Change (UNFCCC) at its seventh session to address the needs of least developed countries (LDCs)
under the Convention on Climate Change. Absolute priority is accorded to adaptation and particularly the financing of the preparation and implementation of National Climate Change Adaptation Programs of Action (NAPAs). The Fund’s objective is to finance projects that
address the urgent and immediate climate change adaptation needs of LDCs by seeking to reduce the vulnerability of sectors and resources
which are essential to social progress and national development such as water, agriculture and food security, health, the management and prevention of catastrophic risks, and infrastructure, as have been identified and prioritized in NAPAs
2
country’s energy and transport bottlenecks, and (ii) enterprise and institutional capacity
development by supporting institutions that implement Rwanda’s policy on Small and
Medium Enterprises (SMEs). The GoR’s long-term development strategy (Vision 2020) and
medium term Economic Development and Poverty Reduction Strategy II (EDPRS II, 2013-
2018) focus on rapidly expanding access to electricity as the key means to achieving the
country’s vision of rescuing itself from poverty. This will alleviate infrastructure bottlenecks
in urban areas and improve limited access in rural areas. The SEAP project is also consistent
with the Bank’s energy sector policy approved in October 2012, where one of the core
principles is “ensuring energy security and increasing access for all.”
2.1.3 The SEAP’s development objective is to support “improvement of access to reliable
and cost effective electricity services for households and priority public institutions and
sustain the reliability of electricity supply in Rwanda and strengthen the institutional capacity
of key sector players in the project” in line with the Government’s long-term and short-term
development strategies and programs. The expected outcomes of the SEAP are (i) improved
access to electricity for households and priority public institutions in the proposed project
area and (ii) sustained reliable electricity supply.
2.1.4 The SEAP was a direct response to one of the three flagship programs called for in the
EDPRS—“economic transformation to create employment and generate exports”—and
responded to the key priority within this flagship theme of rapidly expanding access to
electricity. Moreover, the project contributes to the primary EDPRS target for the electricity
sector to reach an access ratio of 70% by 2017.
2.1.5 The SEAP project involves upgrading and rehabilitation of two substations in the
Northern Province, the Gifurwe substation to 10MVA capacity and the Rulindo substation to
20MVA capacity; building about 464 km of medium voltage (MV) and 710 km of low-
voltage (LV) distribution networks in both provinces; and connecting 25,438 households and
priority institutions (179 schools, 29 health centers and 25 sector administration offices) to
the grid in both the Northern and Western provinces.
2.2 Project Cost and Financing Arrangements
The total project cost, including physical contingency of 8% and price contingency of 5%
(excluding all taxes, duties, levies, and VAT in Rwanda), is estimated to be USD 45.384
million (UA 29.961 million), comprising foreign exchange costs of USD 35.128 (UA 23.189
million) and local costs of USD 10.256 million (UA 6.772 million). Table 2.1 presents the
foreign and local currency project cost by component.
3
Table 2.1: Project cost by component
Component USD million UA2 million
FC LC Total FC LC Total
A) Upgrading and rehabilitation of
substations 5.447 0.778 6.226 3.596 0.514 4.110
B) Access scale-up 22.181 5.117 27.358 14.643 3.418 18.060
C) Project administration and management
C1) Project supervision and
management 1.956 0.217 2.174 1.291 0.143 1.435
C2) Technical assistance 1.502 0.000 1.502 0.992 0.000 0.992
C3) Audit 0.000 0.027 0.027 0.000 0.018 0.018
C4) Operating expenses 0.000 0.974 0.974 0.000 0.643 0.643
D) ESMP /ARAP 0.000 1.903 1.903 0.000 1.256 1.256
Total base cost 31.087 9.076 40.163 20.552 5.992 26.513
Physical contingency (8%) 2.487 0.726 3.213 1.642 0.479 2.121
Price contingency (5%) 1.554 0.454 2.008 1.026 0.300 1.326
Total project cost 35.128 10.256 45.385 23.189 6.772 29.961
2.3 Status of SEAP Implementation
All the project components of the SEAP have commenced and all the project contracts have
been awarded and physical implementation begun. The project has disbursed 25% so far but
this is expected to increase rapidly as plant and equipment deliveries will start in September
2016. The SEAP project is Non-Potentially-Problematic with an IPR rating of above
Satisfactory.
3. PROJECT REAPPRAISED
3.1 Rationale for the Project
Climate variability and uncertainty inflicts significant negative impacts on the lives and
livelihoods of rural populations in Africa. In the Northern and Western parts of Rwanda,
climate data suggest that rainfall is likely to become more erratic with increasing intensity
and uncertainty, placing rain-fed agriculture in a precarious and vulnerable position. The
livelihoods of 80% of people living in Northern and Western provinces of Rwanda has
largely depended on agriculture as opportunities for alternative livelihoods are limited by the
lack of electricity, appropriate skills, inadequate infrastructure and other services such as
marketing facilities. The Baseline Project, SEAP provides electricity services to the region,
but last-mile productive activities remains an issue as this was not factored in the project. The
project financed with a grant from LDCF is meant to address this gap. It will provides the
expertise and resources needed to maximize the impact of the SEAP in the relevant
communities by creating and expanding opportunities for local populations to pursue value
addition agricultural activities and non-agricultural electricity dependent income-generating
activities. Considering most of the population in the rural areas comprise women and youth,
the project will ensure their involvement in all project activities and that they are allocated
adequate share in the resulting project benefits. The additional funding for “Increasing the
adaptive capacity of vulnerable Rwandan communities to adapt to the adverse effects of
2 The exchange rate used at project appraisal of 1.0 UA to 1.5148 US$ is used. Elsewhere in the current
exchange rate of 1.41 US$ to the UA is used.
4
climate change (ICCAC): Livelihood diversification and investment in rural
infrastructures” has been approved by the Global Environment Facility (GEF) in May
2016, to be implemented alongside the Scaling-Up Energy Access Project funded by the
Bank.
Recent initiatives by the Government of Rwanda to implement Climate Change Adaptation
and Mitigation program indicates their readiness to mainstream climate change resilience in
development activities. It has partnered with the Bank and other Development Partners
preparation of the Green Growth Costing tool-kit, the Sustainable Energy for All Action
Agenda, Green Mini-Grids, Scaling-up Renewable Energy and Forest Investment Programs.
3.2 Justification of the LDCF Grant
The additional funding will benefit people in the districts of Karongi, Nyamasheke and
Rusizi. The outcomes will contribute to the overall purpose of poverty reduction through
livelihood diversification, and will improve livelihoods for an additional 800,000
beneficiaries in these program areas. LDCF financing will maximize the improved access to
electricity made possible by the SEAP investment by reducing the vulnerability of current
economic development and livelihoods in the three districts, and complement climate change
adaptation and mitigation activities in the country such as the Integrated Green Villages in
Karongi.
3.3 Objectives and Description
The overall development objective of SEAP as elaborated in 2.1.3 has not changed but the
LDCF funded component will enrich it by increasing the adaptive capacity and resilience of
the Rwandan communities in the project area to climate change impacts. It will provide an
opportunity to integrate, the last-mile electricity provision with alternative livelihood
creation. The project will therefore facilitate communities to formulate, and pilot the
implementation of community based adaptation plans, informed by detailed vulnerability
assessments and technical knowledge of the risks and opportunities presented by the existing
enterprises and their services. This approach will lead to expansion of livelihood support
systems with climate smart measures. The project will be implemented as part of the on-
going SEAP project, utilizing as much as possible the SEAP PIU as already setup. The
National Fund for Environment and Climate Change (FONERWA) will support the PIU by
assigning some technical specialists to the project.
3.3.1 The expected outcomes from the additional funding include:
Diversifying and strengthening climate resilient rural livelihood opportunities for
vulnerable women and men;
Strengthening awareness and ownership of adaptation and climate risk reduction
processes;
Increasing resilience of small scale rural infrastructure to climate change.
3.3.2. The ICCAC Outputs will support the achievement of the resilience to climate change
by facilitating diversification of livelihoods away from traditional agricultural activities so as
to most efficiently utilize the new infrastructure created by an electricity access project, and
consequently increase local communities’ resilience and to adapt to the negative impacts of
climate change. The main outputs therefore include:
5
Output 1: Enhanced and diversified climate resilient rural livelihood opportunities: This
component will support the transition of target households from unsustainable, low-income
agriculture based into economically viable and market oriented livelihoods in rural areas that
benefit from the SEAP project. This will reduce the vulnerability of livelihoods and physical
assets to the adverse effects of climate change. In particular it will create Climate Change
Adaptation awareness finance development of decentralized village-based agriculture
processing centers.
Output 2: Strengthening awareness and ownership of adaptation and climate risk reduction
processes: Enhancing capacities for planning, coordinating and implementing climate change
adaptation activities at the community level.
Output 3: Climate resilient small-scale rural infrastructure: This component will focus on
investment in upgrading rural infrastructure, such as post-harvest storage facilities and market
centers that are connected to the electricity-grid through the SEAP.
Output 4: Monitoring and Evaluation: This component ensures that lessons learnt and
knowledge tools developed during project implementation are captured and appropriately
disseminated. Specialist from FONERWA will provide the PIU with the necessary support to
deliver this output.
The detailed analysis of the project outcomes, outputs, activities and performance indicators
is given in Annex 4 of this PAR.
3.4 Stakeholder Consultation
The preparation of this project was guided by a comprehensive and extensive participatory
process, where stakeholders included District-level leaders, officials from a number of
Ministries, special Government projects, cooperatives, community elders and local
communities. Consultations with the above mentioned stakeholders took place at both
national and local levels within the effected districts. Consultation methods included
interviews, focus group discussions, stakeholder workshop (held in Nyamasheke for all
effected districts) and a stakeholder validation workshop (held in Kigali for all effected
districts). Issues raised by stakeholders included the catastrophic impacts of climate change
(flooding being the most prevalent in the country and effected districts) and the need to adapt
or build resilience to climate change impacts. There was also a keen interest to explore
alternative livelihood opportunities, for which three proposals were put forward for each of
the three effected districts.
The executing agency supported by specialists from FONERWA has led the process, where
its experience in the effected districts was important in providing information on stakeholders
and their characteristics. They also contributed through making arrangements (information to
stakeholders and overall coordination) for interviews, the workshop in Nyamasheke and
validation meeting in Kigali. The participatory approach also followed a complementary
approach, building upon existing plans and program, including national action plans and
national sectoral policies. These interventions were also refined through discussions with
other development partners in the country including UNDP, FAO, GIZ, USAID, DANIDA
and a number of non-governmental organizations (NGOs).
6
3.5 SEAP Revised Financing Arrangements and LDCF funded Project Costs Structure
3.5.1 The total project cost is estimated to be USD 8,824,749 (UA 6.259 million),
comprising foreign exchange costs of USD 395,000(UA 280,000) and local costs of USD
8.430 million (UA 5.979 million) (government counterpart). Table 3.1 presents the foreign
and local currency project cost by component.
3.5.2 The project will be financed by the Bank and the GoR. The Bank’s financing will be
used to cover 100% of the total foreign cost and 68.2% of local costs of the project excluding
all taxes, duties, levies, and VAT in Rwanda.
Table 3.1: Sources of financing for foreign and local costs3
Component
UA million
% of total Foreign
costs Local costs Total
ADF 23.189 4.176 27.365 74.81%
Government of Rwanda 0.000 2.956 2.956 8.08%
Global Environment Facility (GEF) 3.222 3.037 6.259 17.11%
Total project costs 26.411 10.169 36.580 100%
The breakdown of the LDCF resources by sub-component and expenditure schedule are as
outlined below.
Table 3.2: Breakdown of LDCF Grant by sub-component and expenditure schedule
Sub-component USD UA
2016/17 2017/18 2018/19 2019/20 Total Total
(A) Enhanced and diversified
climate resilient rural livelihoods 255,000 445,000 1,880,000 420,000 3,000,000 2,127,660
(B) Strengthening awareness and
ownership of adaptation and
climate risk reduction processes 245,000 365,000 309,749 235,000 1,154,749 818,971
(C) Climate resilient small-scale
rural infrastructure 300,000 310,000 1,885,000 1,505,000 4,000,000 2,836,879
(D) Monitoring and Evaluation 50,000 35,000 75,000 90,000 250,000 177,305
Program management Cost 124,750 101,750 96,750 96,750 420,000 297,872
Total program costs 8,824,749 6,258,687
Table 3.3: Breakdown of LDCF Grant by categories
Project Category USD ‘000 UA ‘000
Goods 420 298
Works 5,905.00 4,188
Services 2,499.75 1,773
3 At the exchange rate of I.0 UA to 1.41 US$
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4 Procurement Arrangement and Fiduciary Controls for LDCF Resources
4.1 Procurement Arrangements
4.1.1 All procurement of works, and acquisition of consulting services financed by Bank
resources will be in accordance with the Bank’s Procurement Policy dated October, 2015 as
amended from time to time, using the relevant Bank Solicitation Document , and the
provisions stipulated in the Financing Agreement. The implementing agency will be
responsible for all envisaged procurements in the project.
4.1.2. The SEAP PIU shall be the executing agency for carrying out the Procurement for the
Project. In this regard the existing SEAP Project Implementation Unit (PIU) will be used as
the implementation arrangement for this program. The EDCL has been assessed for its
capacity to carry out the project and their capacity has been found to be adequate. The
detailed procurement arrangements are presented in the Annex 2 and in the procurement plan.
4.2 Financial Management, Disbursement and Audit Arrangements
4.2.1 The Bank has carried out an assessment of the financial management system of the
Rwanda’s Energy Development Corporation Ltd (EDCL), as the executing agency, based on
Bank’s FM Implementation Guidelines-2014. The assessment concluded that the Financial
Management (FM) capacities are “Adequate” and the overall risk is “Moderate”.
4.2.2 The overall responsibility for financial management (including Budgeting, Accounting
system, Internal Control, Treasury Management/Funds Flow, Financial Reporting and External Audit
arrangements) will rest with the EDCL’s Electricity Access Rollout Programme (EARP)
implementation unit that is handling the first phase of the Scaling-up Energy Access Project (SEAP). To facilitate the implementation of the FM function of the Project, the current Chief Accountant for
the SEAP who has adequate knowledge and experience with Bank FM policies and procedures will be
designated as the Project Accountant and will report to the EARP Director of Finance.
4.2.3 The existing EARP financial manual detailing its accounting policies and procedures will be
used by the project. Consolidated Project Financial Statements will be prepared by the project chief
accountant under the supervision of the EARP Director of Finance. The project will prepare Interim
Financial Reports (IFR) as part of the quarterly progress report (QPR), as required by the Bank, not
later than 45 days after the end of each quarter. In line with the use of country system, the Rwanda
Energy Group (REG)’s Internal Audit Department will include the Project in its audit program and
audit regularly using a risk based audit methodology. The Project internal audit report will be shared
with the Bank during supervision missions or on a need basis.
4.2.4 The Project audit will be conducted by the Auditor General (AG) of State Finances of
Rwanda or a Private Audit firm appointed by AG and agreed with the Bank based on the Bank’s audit
terms of reference. The audit report, complete with a Management Letter, will be submitted to the
Bank not later than six months after the end of the financial year. The cost of the audit will be borne
by the project if undertaken by the Private Audit Firm.
4.2.5 The Project will mainly use the Direct Payment method and the Special Account method for
financing all eligible project expenditures. However, the other two disbursement methods may be
used where the need arises, but after consultation with Bank and obtaining prior approval. The details
of the disbursement methods are provided in the Bank Disbursement Handbook. The EDCL will open
a Special Account (SA) for the purpose of this project at the National Bank of Rwanda (BNR).
The detailed financial management assessment is provided in Annex 1.
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5 PROJECT FEASIBILITY
5.1 Financial & Economic Performance
At its appraisal, the Baseline project was found financially sustainable and economically
viable. Its financial internal rate of return (FIRR) was estimated at 21.5% (real) while the
financial net present value (FNPV) discounted at a real rate of 10% was USD 40.15 million
based on a flat electricity tariff of RWF 134.40 per KWh charged to residential consumers
since August 2012. Today’s residential tariff is at Rwf 182/kWh. The additional grant will
improve the financial and economic performance of the SEAP project as the community
translate opportunities of electricity access into gainful economic activities in the process
increasing electricity uptake in the region. The improved economic status the rural
community also means more resources will be available for higher household electricity
consumption – improved quality of life.
5.2 Environmental and Social Impacts
5.2.1. At the micro level, the project is expected to benefit the whole Districts’ population
which is estimated at 800,000 people, working directly through cooperatives. The proposed
projects in each district are expected to provide incomes to individual members.
5.2.2 Based on the project description in the request for categorization memorandum
(RCM), the project was validated as a category 2 on July 4th 2016 and will require an ESMP
to address the issues associated with Agro processing and value addition enterprises.
5.2.3. Gender: It is estimated that women represent about 60% of the beneficiaries since
women lead most smallholder farming activities. Youth will also benefits directly from this
project as they have proposed a number of projects. In addition, the project will actively
empower women and other excluded groups, particularly those at high risk of suffering from
the effects of climate change vulnerabilities. This will be achieved through social
mobilization utilizing Women Self Help Groups (SHGs) and other such community based
structures. These groups will benefit particularly from skill development (education/training),
access to financial resources and markets for sustainably produced/harvested products. To
ensure that alternative adaptation options meet equality and equity criteria, with special
attention given to women and youth, a gender impacts assessment methodology was used to
complement the climate vulnerability and capacity assessment. This assessment reviewed the
impact of alternative adaptation options on women and men as well as on gender relations in
the project area. To address specific gender inequalities that impede women’s participation in
enterprise development and the jobs market, the project will identify gaps in gender equality
by consulting with men and women and developing skills and strategies to address these
gaps. The project will specifically target vulnerable youths (aged 15 to 21 years) from
unstable family backgrounds for vocational training and other support needed to enable them
to get productive employment and reduce youth disaffection and delinquency. The project is
designed to use staff and national institutions for capacity building activities. This will
permit scalable investments from the project budgets.
5.2.4. Involuntary resettlement: No involuntary resettlement is envisioned as a result of the
project.
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5.3 Project Sustainability
5.3.1 The sustainability of the project will be in its ability to continue functioning at the end
of the project and learn from the lessons learnt and practices employed; the project can then
be replicated across other districts, and eventually the whole country.
The project proposed is integral for the environmental, social, institutional and financial
sustainability of not just the three Districts but for the whole of Rwanda. Without this LDCF
intervention, climate vulnerability will erode local economic development and resilient
livelihoods. The project activities in the field will be executed by the beneficiaries themselves
and knowledge products developed will be disseminated through training and workshops.
The high level of involvement of Government representatives at the local level and the
participation of a large number of women and youth will ensure project sustainability.
5.3.2 Social Sustainability: The project will address the problems of poverty, environmental
degradation and climate-led disasters in the project area and will serve as a model for scaling up in
neighboring districts facing similar problems. The project will ensure that diversification of
agriculture provides resilience of local economies and livelihoods and form the basis of community
based adaptation plans. Assisting the district environment teams to mainstream climate risk
considerations in the district development plans will further contribute to the target of mainstreaming
sustainable development principles in national development policies. The project will develop and
demonstrate practical enterprises, tools, technologies and capacities for non-agricultural income
generating activities, through community centred adaptation program, focusing heavily on promotion
of utilisation of electricity. These interventions will collectively lead towards environmental
sustainability and reduce vulnerability of livelihoods to climate risks and increase household welfare
(including incomes) of local communities. The purpose of the program is to promote climate resilient
development. In this regard, one component focuses on development of manpower in agriculture,
land, water, forestry and infrastructure engineers in climate resilient technologies. The program will
sensitize the planners and policy makers to incorporate climate resilience in development. An
aggressive advocacy campaign in this regard will be launched through print and electronic media to
influence the policy and development process. Thus the motivated and technically strong manpower
in teaching and extension institutions will sustain and disseminate the climate resilient programs at a
larger scale. This will ensure sustainability and up-scaling of the present and future interventions.
Policing to implement policies is not a solution; therefore, the community members will be sensitized
and trained in participatory approaches to discourage negative environmental approaches and promote
eco-friendly approaches. This will also ensure sustainability of the program interventions. In
addition the project will rely on existing national institutions such as FONERWA/ REMA/
MINALOC/ MINAGRI/ MININFRA/ CAPACITY BUILDING SECRETARIAT/ GENDER
MONITORING UNIT, etc. as a sustainable mechanism.
5.3.3 Financial Sustainability The financial sustainability of this project rests in part on
the improvement of economic capabilities for the local communities. All the infrastructure
investment financed by the project are of very basic technology and build with local
materials, and all inputs are locally produced and the outputs will be to a large extent locally
consumed or exported to the rest of the country. This increases the level of profitability of
the interventions. The program design also has several built-in options for scaling up
program interventions to ensure financial sustainability. The project will introduce measures
to expand economic opportunities for women and youth and promote their participation in the
labour force as this will reduce poverty, foster faster growth and increase resilience.
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5.4 Key Risks and Mitigation Measures
An identification and ranking of risks by impact has been conducted as well as identification of
mitigation measures. Overall, the risks are not exceptionally high and should be manageable (Table
5.1).
Table 5.1: Ranking of Program Risks by Impact Description Ranking Mitigation measures
1 Low awareness and acceptance of the
need to tackle climate change among key
practitioners limits the support for action
on climate change within key sectors.
LOW Engage with co-operatives during implementation of
the program as they have been found to play an
important role in creating awareness and advocating
for changes in behavior and practices locally
Undertake detailed stakeholder analysis during the
initial stages of implementation, and develop an
effective advocacy strategy to win over influential
stakeholders.
2 District administrations lack the
resources and capacity to engage fully
with the project and integrate project
outputs with development plans.
LOW Inclusion of project deliverables in the District
Performance Contract where possible will also help
to ensure project activities become integrated and
sustainable with ongoing development at the local
level.
Project implementation will be supported with a
competent team of professionals that are dedicated
full time to the project.
3 Climatic conditions (destructive rains and
unpredictable seasons) hamper project
interventions (planting etc.).
MEDIUM Build in flexibility in terms of resource disbursement to
enable communities to bring forward project
interventions if necessary.
4 Limited capacity of partner organizations
to deliver project outputs.
LOW Carry out capacity assessments of community
institutions (co-operatives etc.) during the design phase
before finalizing the implementation arrangements and
incorporate capacity building where necessary.
5 Failure to create ownership of the project
at the local level to project interventions.
LOW Involve the key stakeholders in problem identification,
project design, implementation and phase out activities
to create ownership at the community level and build in
sustainability
6 People may fail to use the technologies
correctly, despite the knowledge and
advantages to be accrued from adopting.
LOW Continuous awareness targeting communities to
embrace the correct use of post-harvest management
technologies.
Linkages to the private sector; careful use of the
grants/credits to finance purchasing of energy efficient
technologies.
7 Unwillingness of engineers to embrace
new guidelines and designs.
LOW Timely implementation of project activities, Training
and generation of lessons
8 Inadequate political and social support
demonstrated by politicians, technical
staff and communities for mainstreaming
climate change considerations into the
development process
LOW Project to identify and secure the services of a
consultant with technical expertise, to work with
communities and the government in a participatory
monitoring role
9 High costs and insufficient supply of
electricity impedes livelihood
diversification
MEDIUM Project will invest in a range of livelihood
opportunities with varying power requirements.
10 Lack of coordination with other climate
change projects in Rwanda limits the
capacity of implementing agency to learn
from and build on the experience of
related projects.
LOW Review lessons from other projects during the design
phase.
Allocate resources for effective co-ordination
Project team will be multi-disciplinary
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6 IMPLEMENTATION
6.1 Implementation Arrangements
6.1.1 Rwanda’s Energy Development Corporation limited (EDCL) will be the Executing Agency of
the LDCF funded project. The Project Implementation Unit (PIU) setup within EDCL for the Scaling-
up Energy Access Project will host the implementing team for the additional component. The PIU
Project Manager will be the accounting officer and responsible for the administration of the additional
fund. The PIU Project will report to the Project Steering Committee (PSC). FONERWA in
consultation with AfDB, shall second a senior staff member as a project focal point responsible for
ensuring the smooth execution of the project. FONERWA will Co-chair the multi-stakeholder Project
Steering Committee (PSC), which will bring together all key institutions including the Rwanda
Environment Management Agency (REMA), 3 NGOs Districts, and local community representatives.
The Chair of the PSC will be the Permanent Secretary in the Ministry of Infrastructure.
6.1.2 The Project Steering Committee will guide and oversee implementation of the project.
Specifically the PSC will:
Provide guidance to ensure that project implementation is in accordance with the
project document;
Review and approve any proposed revisions to the program - program results
framework and implementation arrangements;
Review, amend (if appropriate) and endorse all Annual Work Plans and Budgets;
Review program progress and achievement of planned results as presented in six-
monthly Program Progress Reports, annual Program Implementation Reviews (PIRs)
and Financial Reports; Advise on issues and problems arising from program implementation, submitted for
consideration by the Program Management Unit or by various stakeholders; and Facilitate cooperation between all program partners and facilitate collaboration
between the Program and other relevant programs, projects and initiatives in Rwanda.
6.1.3 The SEAP Project Manager (PM) will be the accounting officer of the additional fund and
will work closely with the PSC and FONERWA. The PM will also take the lead in communications
with government agencies and advocacy. The PM will also be responsible for providing technical
advice and guidance in his/her area of technical expertise. The PM will report on program progress to
PSC meetings, and will develop and submit semi-annual PPRs and annual PIRs with the support of
staff seconded to the PIU from FONERWA. As the accounting officer of the additional funds, the
Project Manager will be responsible for the financial execution, procurement and the overall
management of the of the project activities. This implies that the existing SEAP PIU will be
responsible for the procurement in consultation with FONERWA and in accordance with the work
plan and budget approved by the PSC and cleared by the Bank. The Project Manager may consider
recruiting additional staff to the PIU to ensure adequate fiduciary controls and accounting In addition
to technical and substantive duties, the PM will:
Act as secretariat to the PSC;
Organize project meetings and workshops, as required;
Prepare Annual Work Plans and detailed Budgets (AWP/B) and submit for PSC’s approval;
Coordinate and monitor the implementation of the approved AWP/B;
During program inception period, review the project’s M&E plan and propose refinements, as
necessary, and implement the plan;
Prepare the six-monthly Project Progress Reports (PPRs) and give inputs in the preparation of
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the annual Project Implementation Review (PIR); Ensure that all co- financing partners
provide information on co-financing disbursed during the course of the year for inclusion in
the PIR;
Coordinate the program with other related on-going activities and ensure a high degree of
inter- institutional collaboration; and
Assist in the organization of mid-term and final evaluations.
6.1.4 The duties of the project Focal Point Person seconded to the PIU from FONERWA will
include (i) acting as the responsible focal point at the policy level within FONERWA; (ii) ensuring all
necessary support from FONERWA is provided for implementation of all of the proposed
components’ activities; (iii) reviewing and providing input to annual work plans and budgets in
consultation/collaboration with PIU before it is cleared by the Bank; and (iv) participating in the
selection of consultants. The focal point person will work closely with the District coordinator who
will be in-charge of the day to day activities of the climate change adaptation project in the field.
Other technical staff to be seconded whenever necessary will include; a knowledge Management
specialist and a Monitoring and Evaluation Specialist. In addition the Focal Point Person will:
Ensure real-time monitoring of project’s progress on the ground and alert PIU Project
Manager of potential problems that could result in delays in implementation;
Ensure the Project’s effective and efficient work with stakeholders in the pilot areas, and
aligning proposed activities with similar initiatives of the Government in the region;
Organize and supervise consultant inputs;
Oversee creation of the Project’s approach to managing and sharing knowledge, and to
identifying and disseminating lessons learned;
6.1.5 The District Coordinator will report to the Project manager through the project’s Focal
Point Person and will be in-charge of the day-to-day activities of the project. Further, he and will
coordinate all activities at the District level in close collaboration with FONERWA. Based at the
District level, the District Coordinator will ensure effective and efficient implementation of
activities by communities and other stakeholders.
6.2 Other executing partners
6.2.1 The program will work with a number of partners who will contribute to the execution
of specific components/outputs through Letters of Agreement. Letters of Agreement with
partners will be based on specific activities in each annual work plan and budget approved by
the Program Steering Committee.
13
Figure 6.1: Organization Chart for project implementation
6.2.2 AfDB’s Role: As the GEF implementing agency, AfDB will maintain project oversight
to ensure that GEF policies and criteria are adhered to and that the project meets its objectives
and achieves expected outcomes in an efficient and effective manner. AfDB will report on
project progress to the GEF Secretariat; financial reporting will be to the GEF Trustee. AfDB
will closely monitor and provide overall guidance to the project. In addition the AfDB will:
manage and disburse funds from GEF in accordance with the rules and procedures of
the Bank;
oversee project implementation in accordance with the project document, the work
plans and budgets, and the rules and procedures of the Bank;
carry out at least two supervision missions per year; and
report to the GEF Secretariat and Evaluation Office, through the annual Project
Implementation
review, on project progress and provide financial reports to the GEF Trustee.
6.2.3 The AfDB (GEF Coordination Unit) will submit annual project implementation report
(PIR) to GEF Secretariat and, in collaboration with the project Task Manager submit a request
for funds transfer for the project activities from the GEF Trustee based on 6 monthly
projections.
6.3 Monitoring
6.3.1. Quarterly and annual reporting arrangements will follow the current JPF framework.
The Coordinator with support of the JPF team will be responsible for the preparation of
quarterly and annual reporting. The Program Completion Reports (PCR) and additional
monitoring and evaluation activities on climate change resilience will be carried out by the
Department of Climate Change (DCC) to produce knowledge products of lessons learnt on
implementation of the NAPA for dissemination. Documentation of local knowledge on
Project Steering Committee REMA, MININFRA (Chair), MINILOC, MINICOFIN, Local Authorities, NGO, Private Sector and others, EDCL, FONERWA (Co-Chair)
SEAP PIU Project Implementation Unit (PIU)
Project Manager
FONERWA – Focal Point Person District Coordinator Other specialists seconded to the PIU Vendors for small infrastructure projects and consultancies and TAs
SEAP – Main Project Team
Contractor & Consultants for the Energy Access Project
14
adaption will enrich the Bank’s knowledge in this area DCC will also compile specific
quarterly and annual reports for the LDCF resources as well as monitor the implantation of
the ESMP. The LDCF Adaptation Monitoring and Assessment Tool will also be completed
during the mid-term review cycle and during the PCR preparation.
6.3.2. The overall monitoring setup includes Joint Sector Reviews held twice a year,
Technical reviews held in March/April and Joint Sector Reviews in Sept/October. In
additional the sector conducts regular technical reviews, surveys, Value for Money (VfM)
and tracking studies.
It is of utmost importance for the project to make use of internationally recognized results-
based monitoring and evaluation frameworks during its entire implementation. FONERWA
will be responsible for the monitoring and supervision activities in the field. This will be in
collaboration with the PIU Management. The project will document all problems encountered
and lessons learnt during implementation as a way of knowledge management. This will
ensure that successes are replicated while hindrances would be avoided early for similar
future projects or even other current projects. The component will look at knowledge
management and dissemination, monitoring (both internal and external). A detailed
elaboration of monitoring and evaluation plan including costing is outlined in Annex 4.
6.4 Knowledge Building
The associated knowledge dissemination framework will include communities as generators
of knowledge and promote peer-to-peer and lateral knowledge sharing across all stakeholders
in the climate change domain in Rwanda with specific focus on the project areas. To promote
both dissemination and interaction on a wider scale, mass and social media will be used to
facilitate broad knowledge sharing across significant portions of the communities that are and
will likely continue to be affected by climate change in the project areas. To achieve this,
various knowledge dissemination products will be developed such as; (i) Web and paper
based information booklets/brochures (ii) Posters (ii) Radio/television broadcasts (iv) Videos,
animations, still images and Policy briefs, etc. Information contained in the above knowledge
dissemination products will be generated from climate change relevant information available
from national, regional and global sources, including the differential impacts of climate
change across genders, classes, ages, abilities and ethnic groups. A detailed elaboration of
knowledge activities and costing are included in Annex 4.
7 JUSTIFICATION IN RELATION TO BANK POLICIES FOR LDCF GRANT
7.1. Agriculture is one of the primary sources of livelihoods for the majority of the
Rwandan population. In the face of increasing climate variability, it has become critical to
Rwanda’s development to develop alternative off-farm, income generating alternative
livelihoods to build resilience to increasingly unpredictable weather patterns. Climate change
is already increasing the frequency and intensity of extreme weather events, particularly
droughts, floods. Recent weather events clearly illustrate the magnitude of the problem,
which has been communicated in Rwanda’s National Adaptation Program of Action (NAPA)
and identified priority intervention areas, which include increasing resilience in agriculture
dependent populations. It is expected that funding of the NAPA identified priority
intervention areas will stimulate interest among key stakeholders and also lead to changes in
15
planning approaches resulting into integration of climate change issues into development
planning.
7.2 With the financing from LDCF, the impact of the SEAP project will be enhanced and
maximized, particularly with respect to resilience, sustainability of energy facilities and
infrastructure, as well as natural resource management in the face of climatic shocks. These
additional resources will contribute to improving the population’s living conditions and
diversifying livelihoods toward off farm activities, away from traditional agricultural
activities so as to most efficiently utilise the new infrastructure created by an electricity
rollout program, and consequently increase resilience to the negative impacts of climate
change.
7.3 Activities under the additional funding are directly aligned to the core objectives of
the Bank’s Strategy for 2013 – 2022 in particular the transition toward “green growth that
will protect livelihoods, improve water, energy and food security, promote the sustainable use
of natural resources and spur innovation, job creation and economic development. Project
activities will involve off-farm activities which will create economic opportunities for
farmers to shift livelihoods away from traditional agricultural activities. As highlighted
earlier, the LDCF funded component supports directly the Bank’s High 5’s.
8 LEGAL INSTRUMENTS AND AUTHORITY
8.1 Legal Instruments
8.1.1. The legal instrument is the grant agreement between the AFDB and the Government
of Rwanda for the LDCF additional funding to cover the incremental cost of climate
adaptation activities identified as additional to the SEAP investment.
8.2 Conditions associated with the Bank Intervention
8.2.1. Conditions Precedent to Entry into Force of the LDCF Grant: The LDCF Grant
Protocol Agreement shall enter into force on the date of its signature.
8.2.2. Conditions Precedent to First Disbursement of LDCF Grant: In addition to the entry
into force of the Grant, the first disbursement of LDCF Grant resources shall be subject to
fulfilment of the following conditions:
(i) Appointment of a focal point person from FONERWA in the SPIU
(ii) Opening of special accounts for LDCF
8.3 Compliance with Bank Policies
8.3.1 The proposed activities under LDCF resource complies with all applicable Bank
policies as well as the policies of the GEF’s LDCF.
16
9 CONCLUSIONS AND RECOMMENDATIONS
9.1. Management recommends that the Boards of Directors approve the implementation of
additional activities financed through the GEF/LDCF Grant for an amount not exceeding
USD 8,824,749 for the purpose and under the conditions set forth in this report.
I
Annex 1. Financial management and disbursement arrangements
The Bank has carried out an assessment of the financial management system of the Rwanda’s Energy
Development Corporation Ltd (EDCL), as the executing agency, based on Bank’s FM Implementation
Guidelines-2014. The assessment concluded that the Financial Management (FM) capacities are
“Adequate” and the overall risk is “Moderate”.
The overall responsibility for financial management (including Budgeting, Accounting system, Internal
Control, Treasury Management/Funds Flow, Financial Reporting and External Audit arrangements) will
rest with the EDCL’s Electricity Access Rollout Programme (EARP) implementation unit that is handling
the first phase of the Scaling-up Energy Access Project (SEAP) . The Project Manager, who is the head of
the SEAP Project Implementation Unit (PIU), will be assigned to manage the grant under the supervision
of the Programme Coordinator of EARP. To facilitate the implementation of the FM function of the
Project, the current Chief Accountant for the SEAP who has adequate knowledge and experience with
Bank FM policies and procedures will be designated as the Project Accountant and will report the EARP
Director of Finance. However, in order to match the anticipated additional workload and also strengthen
the internal controls, the project will recruit an Accountant, with qualifications and experience acceptable
to the Bank to, support the Chief Accountant.
The Project Manager shall cause the preparation of a consolidated annual work programme with
participation and input of key stakeholders including the FONERWA technical staff. The work
programme which will indicate activities by component, category and source of financing will be
reviewed and approved by REG and the Bank on an annual basis. The existing TOMPRO accounting
system will be configured to include the grant as a separate source of financing to enable the monitoring
of grant expenses and generation of project specific financial reports. The existing EARP financial
manual detailing its accounting policies and procedures will be used by the project. Consolidated Project
Financial Statements will be prepared by the project chief accountant under the supervision of the EARP
Director of Finance.
The project will prepare Interim Financial Reports (IFR) as part of the quarterly progress report (QPR), as
required by the Bank, not later than 45 days after the end of each quarter. In line with the use of country
system, the Rwanda Energy Group (REG)’s Internal Audit Department will include the Project in its audit
program and audit regularly using a risk based audit methodology. The Project internal audit report will
be shared with the Bank during supervision missions or on a need basis.
The external audit arrangement will entail the Project preparing and submitting consolidated financial
statements for audit within three (3) months after the closure of every financial year. The consolidated
financial statements will be prepared using the International Public Sector Accounting Standards
(modified cash basis) applied by EDCL. The Project audit will be conducted by the Auditor General (AG)
of State Finances of Rwanda or a Private Audit firm appointed by AG and agreed with the Bank based on
the Bank’s audit terms of reference. The audit report, complete with a Management Letter, will be
submitted to the Bank not later than six months after the end of the financial year. The cost of the audit
will be borne by the project if undertaken by the Private Audit Firm.
The Project will mainly use the Direct Payment method and the Special Account method for financing all
eligible project expenditures. However, the other two disbursement methods may be used where the need
arises, but after consultation with Bank and obtaining prior approval. The details of the disbursement
methods are provided in the Bank Disbursement Handbook. The EDCL will open a Special Account (SA)
for the purpose of this project at the National Bank of Rwanda (BNR). An initial deposit for an amount
corresponding to 6 months of activities as justified by a work program approved by the Bank will be
made in the SA. Subsequent replenishments of the SA will be subject to the Executing Agency having
II
provided sufficient justifications for the use of at least 50% of the most recent advance and 100% of the
other older advances, and upon production of an agreed work program for the next six months. The Bank
will issue a disbursement letter, which will provide specific guidelines on key disbursement procedures
and practices. The content of the disbursement letter will be discussed during negotiations. In regard to
approved activities implemented in the districts, payment documentations shall be reviewed, approved
and submitted by management of FONERWA to SEAP PIU for payment.
Conditions and Financial Covenants
Open a dedicated Special Account (SA) at the National Bank of Rwanda (BNR).
FM Action Plan
The action plan below indicates the actions to be taken for the project to strengthen its financial
management system and the due dates.
Action Date Due Responsibility
1
.
Recruit an Accountant with the necessary qualifications
and experience.
Before Project
effectiveness EDCL
2
.
Reconfigure the TOMPRO accounting system to include
the grant as a separate source of funding
Before the first
disbursement EDCL
3
. Agree on the External Audits Terms of reference By Negotiations AfDB
4
.
Organize a launch workshop with a training session on the
Bank’s FM and requirements and disbursement policies
and procedures
At Project launch EDCL and
AfDB
In conclusion, the proposed financial management arrangements put in place meet the Bank’s minimum
requirements as per its project financial management policies and guidelines and therefore are adequate
to provide, with reasonable assurance, accurate and timely information on the status of the Project
required by the Bank.
III
Annex 2 – Procurement arrangements
1. Procurement arrangements
1.1 National procedures and regulations—use of country procurement system
B.5.1.1 The Bank’s assessment of NCB procedures for Rwanda concluded that the legal and regulatory
framework and the national standard bidding documents (SBDs) for goods are considered essentially
acceptable for national competitive bidding under projects financed by the Bank. However, this can be
envisaged only when the deviations identified in the NPP are specified in the Bank’s Project Financing
Agreement and the SBDs are revised before they can be utilized under projects financed by the Bank. In
the case of the SBD for Small Works, the divergences are such that until the revisions have been
undertaken the Bank’s SBD for Small Works must be used. The deviations with respect to fundamental
principles relate either to the Bank’s fiduciary obligations or to internationally accepted best practices and
include among others; (i) application of local preference, methods of delivery of bids and price
adjustments; (ii) omissions in the SBD for Goods which are very minor concern provisions for incidental
expenses, spare parts and prohibition from contacting the purchaser during bid evaluation; and (iii)
omissions in the SBD for Small Works include provisions for the Letter of Bid and Bid Schedule, model
Contract Agreement, fraud and corruption, staff and labor standards, force majeur, options in the method
of delivery of bids, care and supply of bids, treatment of confidential details, joint and several liability and
the qualification tables in the Schedule of Forms.
B.5.1.2 The GOR has made some progress in reforming the system notably, (i) the issuance of manual for
Public Procurement (User’s Guide) for use by the procurement practitioners, (ii) the code of ethics for
public procurement practitioners. Furthermore, following the 2009 OECD/DAC assessment of the public
procurement, the Government has issued amendments to the laws, in order to address issues raised by the
assessment notably (i) the exit of RPPA from public procurement proceedings in 2011, (ii) Clarity of
responsibilities of RPPA in order to avoid conflict of interest and direct involvement in procurement (iii)
The establishment of the Independent review panel(s) at national and at district levels (iv) Procurement
planning has become part of budget formulation and contributes to multiyear planning.
B.5.1.3 Following the completion of the assessment of NCB procedures by the Bank, the Government has
agreed with the Bank on the findings, and committed itself to addressing them. Dialogue with the
Government continues to have all the shortcomings identified addressed before the use country systems is
finally agreed upon.
1.2 Procurement Arrangements
B.5.2.1 All procurement of goods, works and acquisition of consulting services financed by the Bank will
be in accordance with the Bank’s Procurement Policy dated October, 2015, as amended from time to
time, using the relevant Bank Solicitation Documents, and the provisions stipulated in the Financing
Agreement.
The various items under different expenditure categories and related procurement arrangements are
summarized in Table B.5.2 below. Each contract to be financed by the Fund, the different procurement
methods or consultant selection methods, the need for prequalification, estimated costs, prior-review
requirements, and time frame have been agreed between the Borrower and the Bank project team and are
provided in the Procurement Plan (see section B.5.5).
IV
Summary of Procurement Arrangements.
Project Categories
Amount in US$ '000 UA '000
Use of
Country
Procurement
Procedures
Use of
Bank’s
Procedures
Non-Bank
Financed Total Cost
1. Goods
1.1 Office Equipment & Consumables
80]
[80]
57
Sub-total of Goods [80] 57
2. Works
2.1 Upgrading of 6 rural markets (2
per District)
2.2 Construction/ rehabilitation of 9
post-harvest infrastructure (3 per
District)
[1,375]
[4,530]
[1,375]
[4,530]
975
3,213
Sub-total of Works [5,905] 4,188
3. Consulting Services
3.1 Technical assistance and capacity
building
3.2 Monitoring and evaluation
[2,249.749]
[250]
[2,249.749]
[250]
1,596
177
Sub-total of Services [2,499.749] 1,773
4. Operating Expenses 340 241
Sub-total 340 241
TOTAL [8,824.749] 6,259
1.3 Goods: There is one package for the Goods which shall be procured through OCB with national
publication. This is procurement of Office equipment and consumables.
1.4 Works: The procurement of Works identified in this project are: Upgrading of 6 rural markets (2 per
District) and Construction/ rehabilitation of 9 post-harvest infrastructure (3 per District) and will be
procured under the Open Competitive Bidding method with international publication.
1.5 Consulting Services: The consulting services required for the project are Technical assistance &
Capacity Building, and Monitoring and Evaluation. These services shall be procured under the method of
Quality and Cost Based Selection (QCBS) procedures.
B.5.2.2
2. Assessment of the Executing Agency
2.1 The REG SPIU will be responsible for the procurement of goods, works and consulting
services/training services. An assessment of the capacity of the Executing Agency to implement
V
procurement actions for the project has been carried out by the Bank. The assessment reviewed the
organizational structure for implementing the project and the interaction between the staff responsible for
procurement activities. The capacity of the SPIU is found to be adequate.
3. General Procurement Notice
3.1 The text of a General Procurement Notice (GPN) has been agreed with REG, and it will be issued for
publication in UNDB online and in the Bank’s Internet Website, upon approval by the Board of Directors
of the Financing Proposal.
4. Procurement Plan
The Borrower, at appraisal, developed a Procurement Plan (see annex procurement plan) for project
implementation which provides the basis for the procurement methods. This plan has been agreed
between REG and the Bank Team and is available at REG offices. It will also be available in the Project’s
database and in the Bank’s external website. This Procurement Plan will be updated by the Borrower’s
Project Team annually or as required to reflect the actual project implementation needs and improvements
in institutional capacity. Any revisions proposed to the Procurement Plan shall be submitted to the Bank
for prior review. The REG shall implement the Procurement Plan in the manner in which it has been
agreed with the Bank.
VI
Goods:
1 General
Country/Organisation: Rwanda
Project/Programme Name: Scaling up Energy Access Project - LDCF Financing
Project/Programme SAP Identification #:
Loan Number:
Executing Agency: EDCL
Approval Date of Procurement Plan :
Date of General Procurement Notice: 21-08-2016
Period Covered by this Procurement Plan:
2 Goods and Non Consulting Services: Prior/Post review
Thresholds
Procurement Method
Prior
review
Threshol
d
(UA)
Post review Threshold
(UA)
Frequency of
Review
ICB (Goods)
All contracts
None At all stages
NCB None All contracts At all stages
Non Consulting Service None None None
3. Procurement Packages Methods and Time Schedule
for 18 months
VII
Description
Lot
Number SPN/IFP
Received
SPN/IFP No-
Objectio
n Date
SPN/IFP
Publicati
on Date
(UNDB)
Estimated
Amount in UA
(000)
Procurement
Method
Pre-or
Post Qualification
Dom/Reg. Preference
(Y/N)
Prior or
Post
Review
Bid
closing
date
3.
1 Project Management - Goods (office equipment and
consumables)
56.74 OCBO(nation
al) N/A post
Project Management - Operating Expenses
241.14
Total Cost 297.87
Works:
1 General
Country/Organisation: Rwanda
Project/Programme Name: Scaling up Energy Access Project - Additional
Financing
Project/Programme SAP
Identification #
Loan Number:
Executing Agency: EDCL
Approval Date of Procurement
Plan :
Date of General Procurement
Notice: 21-08-2016
Period Covered by this
Procurement Plan:
VIII
3. Procurement Packages: Methods and Time Schedule for 18 months
Procurement Packages with
Methods and Time Schedule Basic Data
Description
Lot Number
SPN/IFP
Received
SPN/IFP
No-
Objection
Date
SPN/IFP
Publication
Date
(UNDB)
Estimated
Amount
in UA
Lumpsum or Unit
Rate
Procurement
Method
Pre-or Post
Qualification
Dom/Reg.
Preference
(Y/N)
Prior
or
Post Review
Bid
closing
date
Upgrading of 6 rural markets (2 per District)
975.18 Unit Rate
OCB
(International)
Pre
Qualification Prior
1-Mar-
17
Construction/ rehabilitation of 9
post-harvest infrastructure (3 per District)
3,212.77 Unit Rate OCB (International)
Pre Qualification Prior
1-Mar-17
Total Cost 4,187.94
Services:
1 General
Country/Organisation: Rwanda
Project/Programme Name: Scaling up Energy Access Project - LDCF Financing
Project/Programme SAP Identification #:
Loan Number:
Executing Agency: EDCL
Approval Date of Procurement Plan :
IX
Date of General Procurement Notice: 21-08-2016
Period Covered by this Procurement Plan: 2016-2018
2 Consulting Services: Prior/Post review Thresholds
Procurement Method
Prior review
Threshold
(UA)
Post review
Threshold
(UA)
Frequency of Review
QCBS (Firms) All contracts None At all stages
LCBS All contracts None At all stages
IC All contracts None At all stages
3 Consulting Services: Selection Method and Time
schedule for 18 Months
Basic Data
Description*
Date EOI
Received Date No-Objection
Selection
Method
Lumpsum
or Time-
Based
Estimated
Amount in
UA
Prior/Post
Review
Bid Closing
Date
Plan/
Revised/
Actual
Technical assistance and capacity building
Time-based 1,595.57 Prior Plan
Revised
Actual
Monitoring and evaluation
Time-based 177.31 Prior Plan
Revised
Actual
Total Cost 1,772.87
X
4.1 Frequency of Procurement Post Review Missions
In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of
the Implementing Agency has recommended 1 procurement supervision mission to visit annually the
project and carry out post review of procurement actions.
4.2 Global Action Plan for improvement to National Procurement Procedures.
The following discrepancies with the Bank’s Rules and Procedures: “Rules and Procedures for
Procurement of Goods and Works”, dated May 2008, revised July 2012 have been identified in the
national procurement law and regulation and shall not be used for procurement activities financed by the
Bank:
CONCERNS REQUIRED CHANGES
Principle of Eligibility:
Standard Forms and the Remaining Sections of the
SBD for Small Works exclude (i) Principle of
Eligibility,(ii) eligibility of goods and related
services, (ii)Documents establishing the eligibility of
goods and related services
Inclusion of appropriate standard Clauses reflecting best
practices with respect to all the missing items in the
Rwanda SBD for Small Works
Principle of Transparency:
Standard Forms and the Remaining Sections of the
SBD for Small Works exclude: (i) Letter of Bid and
Bid Schedule,(ii)Qualification tables (general and
specific experience forms, average annual turnover,
historical contract performance, current
commitments financial resources and situation
Inclusion of appropriate standard Clauses reflecting best
practices with respect to all the missing items in the
Rwanda SBD for Small Works
Principle of Fairness:
Instructions to Bidders and General Conditions of
Contract for Small Works exclude the following
Letter of Bid and Schedule
Contract Agreement
Compliance with Laws
Force Majeur
Staff and labor standards
Fraud and Corruption
Inclusion of appropriate standard Clauses reflecting best
practices with respect to all the missing items in the
Rwanda SBD for Small Works
Discrepancies identified in the National Standard Bidding Documents
Principle of Fairness:
Incidental expenses
Spare parts
Revision of the SBD for Goods to include appropriate
standard Clauses on:
Incidental expenses
Spare parts
XI
Annex 3. Profile of Intervention Areas for LDCF Financing
Description Participating Districts
Karongi District Nyamasheke District Rusizi District
Demography Karongi District is divided
into 13 administrative sectors
(Imirenge), and is subdivided
into 88 cells (Akagari) and
538 villages (Imudugudu).
The district is composed of
175,684 females and 155,886
males. The population density
is considered high, with 334
persons per square kilometer,
and an annual population
growth rate of 1.7%.
The District has a population
of 383,138 of which 47% are
male, while females
represent 53% of the
population. The population
density in the district is 326
persons per square
kilometer. The District has
fifteen (15) administrative
Sectors/Imirenge, 68 Cells
and 588 Villages
(Imidugudu).
The District has an area of
940.95 km2 and is populated
by 404,714 inhabitants, which
make a density population of
399 inhabitants per km2. The
low population density is
attributed to the natural forest
of Nyungwe National Park
occupies much of the district.
Map
Economic
Activities
Agriculture and livestock
farming are the key economic
activities in Karongi District.
To this end, at least 73.7% of
total households depend
mainly on revenues from
agricultural activities, and
11.5% of total households
earn wages from agriculture.
The export cash crops of
coffee, tea and macadamia are
produce, while food crops
include maize, sorghum,
beans, soya beans, peas, Irish
potatoes, bananas, cassava,
wheat, vegetables and fruit
trees. Livestock such as cows,
Agriculture is the main
economic activity in the
District. Slightly over 70%
of the population is
employed in agriculture
sector, 14% is waged labor
while 56.1% are independent
farmers. Livestock sub
sector is also notable with
12.2% of households in
possession of a cow
provided through either the
"One Cow" program or
through not for profit
organizations.
Rusizi district is very
productive, particularly in
food and industrial crops. The
main crops are rice, maize,
tea, coffee, beans, cassava,
banana, and a variety of fruits.
In addition, the district’s
proximity to Burundi and
DRC provides ample
opportunity in cross-border
trade, and has provided
capital for numerous
development projects within
the district
XII
Description Participating Districts
Karongi District Nyamasheke District Rusizi District
sheep, goats, pigs and poultry
are reared in the rural areas,
while bee-keeping and fish
farming are encouraged, but
are not very well developed.
Poverty High levels of poverty are
witnessed in the district, that
is, 61.7% poverty rate, and
39.8% extreme poverty rate.
Poverty is very high in
Nyamasheke District
(second highest in the
country), with 63.4% of the
population under the poverty
line, whereas poverty
reduced in Rwanda from
56.9% to 44.9% between
2007 and 2011.
Poverty rate is 45 against the
national 44.9
Socio-
economic
Challenges
Isolated habitat in the
district, leading to low levels
of development of
settlements (Imudugudu) and
difficulty in accessing social
amenities such as schools,
health facilities, clean
drinking water, waste
management facilities, etc.
Poor infrastructure
(including low access to
electricity at only 2.8%, ICT,
water and sanitation) and
undeveloped tourist sites
Small land size (57.9% of
households have less than
0.5 ha) vis-à-vis the number
of farmers, leading to low
productivity
Need for value addition of
agricultural and livestock
products, accompanied by
creation of off-farm jobs
Very high dependency on
wood energy (99.9%)
Low education levels and
high drop-out rates
Disabled persons head
21.7% of households.
Low productivity of
agriculture, especially
from poor quality of soils
and unfavorable climatic
conditions
Lack of diversification as
more than 70% are still
employed in unproductive
agriculture
Disaster risks to
livelihoods – loss of lives
from mud/landslides and
impassable roads affecting
economic activities
Inadequate settlement
patterns (such as isolated
rural housing) that hamper
provision of basic services
and increase vulnerability
to disasters
Low productivity of
agriculture, especially from
unfavorable climatic
conditions
Lack of diversification as
more than 70% are still
employed in unproductive
agriculture
Inadequate settlement
patterns (such as isolated
rural housing) that hamper
provision of basic services
and increase vulnerability to
disasters
Isolated habitat in the
district, leading to low
levels of development of
settlements (Imudugudu)
and difficulty in accessing
social amenities such as
schools, health facilities,
clean drinking water, waste
management facilities, etc.
Degraded natural resources
like watershed, wetland,
lakes and river band.
Lack of financial capital to
initiate off farm enterprises.
XIII
Description Participating Districts
Karongi District Nyamasheke District Rusizi District
Analysis Karongi District has been
observed as the third poorest
district in the Western
Province, a situation which is
increased by steep
topographic features that
hamper access to social
amenities and infrastructure.
In addition, agriculture, the
main economic activity in the
district, is adversely affected
by soil erosion arising from
the steep topography.
The purpose of this project,
which links climate change
adaptation to last-mile
connectivity, has the potential
to address the high
dependency on agriculture in
the district, which is
characterized by low
productivity. Specifically, this
project may contribute to
tourism development in the
district, which has great
potential, and provides a
ready market for local
agricultural and livestock
products. For these products
to sustainably supply the
tourist sites, however,
activities related to value
addition are required so as to
promote off-farm activities
and provide opportunities for
employment.
Productivity and
employment is one of the
thematic areas under the
‘District-led development
principle’ as presented in
EDPRS2, where an increase
in off-farm employment is
encouraged, with an aim of
about 50% of the population
engaged in non-farm
employment by 2018. Off-
farm agriculture-related
activities may arise from the
commercialization of
agriculture, and
improvement of post-harvest
handling and storage
services.
The baseline rural
electrification project
addresses a key development
constraint of low rate of
electricity access. In line
with the District focus, the
project’s emphasis on
trading centres encourages
the uptake of electricity as
well as supporting off-farm
agriculture-related activities.
However, the appropriate
use of electricity for
productive and income-
generating purposes has
been identified as a critical
need in the District.
The socio-economic
indicators of Rusizi district
are not too far off from the
national average. In addition,
the District’s proximity to
Burundi and DRC presents
great opportunities for cross-
border trade. This opportunity
so far remains largely
untapped, yet it would
provide employment
opportunities and sources of
income to households, and
also finance the district’s
development activities. The
DDP also identifies ‘access to
electricity’ and ‘agriculture
development’ as prerequisites
for integrated development,
sectors that are also
highlighted as priority areas
for the district, and pertinent
to the current project.
XIV
Annex 4. Detailed Additional Program Activities and Costs
In the tables below is a detailed description of Project activities to be undertaken under each component
as well as the unit cost in USD and total cost estimated per activity and component.
Table A: Component 1 outputs and activities
Component 1: Enhanced and diversified climate
resilient rural livelihoods
Cost (USD)
Outcome Output Activity Year 1 Year 2 Year 3 Year 4 Total
Outcome 1.1: Diversified,
strengthened
and climate
resilient rural
livelihood
opportunities
for vulnerable
women and
men
Output 1.1.1: Improved
knowledge,
understanding
and awareness
of livelihood
opportunities
resulting from
electrification
KAP baseline
survey
30,000 0 0 0 30,000
Development
of awareness
materials
0 20,000 10,000 0 30,000
Community
Awareness
Programs
0 10,000 5,000 5,000 20,000
Output 1.1.2:
Increased
capacity of
target
households to
participate in
market-
oriented
enterprises
Ministry of
Trade &
Industry
(MINICOM)
to determine
baseline
capacity
(Capacity
needs
Assessment)
20,000 0 0 0 20,000
MINICOM
Training -
Cooperatives
0 5,000 5,000 5,000 15,000
Facilitate
study tour to
working
enterprises
65,000 0 0 0 65,000
Output 1.1.3:
Increased
investment in
value chain
development
creating and
linking
demand to
supply
Nyamasheke
District - Fruit
processing
plant; Animal
feeds
production
plant; Pork
processing
unit
30,000 120,000 600,000 120,000 870,000
Karongi
District –
Ecotourism;
Banana value
chain;
Briquette
making
30,000 120,000 600,000 120,000 870,000
XV
Component 1: Enhanced and diversified climate
resilient rural livelihoods
Cost (USD)
Outcome Output Activity Year 1 Year 2 Year 3 Year 4 Total
Rusizi District
– Briquette
making;
Construction
of a modern
fruit market;
Fruit value
chain
promotion
30,000 120,000 600,000 120,000 870,000
Output 1.4.1: Increased
economic
opportunities
for women and
youth
Facilitate
Youth Fund
and Gender
Monitoring
Office (GMO)
of
MIGEPROF –
Ministry of
Gender &
Family
Promotion
50,000 50,000 60,000 50,000 210,000
Total 255,000 445,000 1,880,000 420,000 3,000,000
Output 1.1.1: Improved knowledge, understanding and awareness of livelihood opportunities resulting
from electrification.
The project will facilitate a Knowledge Attitude Practice survey as a baseline on the current knowledge
and understanding of livelihood opportunities. Based on the results of the baseline, awareness materials
will be developed both in electronic and print. Community radio will also be utilised. Community
awareness programs will also be designed. The programs will take opportunity of World International
days (World Environment day; World Wetland day, etc.) to create awareness to a wide range of
stakeholder.
Output 1.1.2: Increased capacity of target households to participate in market-oriented enterprises.
Almost 80% of the population in the three districts depend on subsistence agriculture as the main
livelihood. The project will facilitate MINICOM to undertake a baseline (Capacity Needs Assessment,
CNA) and provide capacity on the identified gaps. Through MINICOM the project will facilitate training
of cooperatives on viable enterprises. The project will also facilitate study tours both within and in
neighbouring countries to enable beneficiaries to learn from viable and profitable enterprises.
Output 1.1.3: Increased investments in value chain development creating and linking demand to
supply.
During the program development phase, each of the three districts presented preliminary off-farm
enterprises (Table B).
XVI
Table B: Priorities provided by community groups as possible livelihood alternatives
District Priority 1 Priority 2 Priority 3
Karongi Eco- tourism
Banana value chain Briquette making
Nyamasheke Fruit processing plant Animal feeds
production plant
Pigs processing unit
Rusizi
Briquette making from
waste products
Construction of a
modern fruit market
Fruits value chain
promotion
The project will work with stakeholders to identify viable and profitable livelihoods opportunities
resulting from electrification. A rapid assessment will be conducted in each District to ensure that all
ideas were captured during the stakeholder meeting. Other activities under this output will include; study
tours to viable enterprises within the country, development and implementation of a sensitization program
and initiating of an awards scheme. The project will provide funds (direct investment) to enable
establishment of the identified enterprises. Efforts will be made to work closely with the private sector.
This will ensure available market options and future sustainability.
Output 1.1.4: Increased economic opportunities for women and youth.
To ensure that women and youth benefit from the project, the project will put affirmative action with clear
quotas for women and youth during the formation of groups for each enterprise. The project will
facilitate existing institutions like Youth Fund and Gender Monitoring Office (GMO) of MIGEPROF –
Ministry of Gender & Family Promotion to ensure the affirmative action is realised during the life of the
project and beyond. The project will also establish access to financial support for women and youth.
Table C: Component 2 outputs and activities
Component 2: Strengthening awareness and
ownership of adaptation and climate risk reduction
Cost (USD)
Outcome Output Activity Year 1 Year 2 Year 3 Year 4 Total
Outcome
2.1:
Community
driven
adaptation
and reduced
vulnerability
to climate
change
improved
Output 2.1.1:
Increased
knowledge and
understanding of
the social
dimensions of
vulnerability and
resilience to
climate change
Development
of awareness
materials
0 50,000 24,749 0 74,749
Community
training
PLPA/Climate
Vulnerability
& Capacity
Assessment
(CVCA)
vulnerability
0 80,000 40,000 0 120,000
Output 2.1.2:
Increased
awareness of
climate change
impacts and
promotion of
gender-responsive
climate adaptation
Awareness
campaigns
50,000 50,000 50,000 50,000 200,000
Workshop –
Adaptation
activities
0 40,000 40,000 40,000 120,000
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Output 2.1.3:
Increased
institutional
capacity of district
administrations to
coordinate and
support climate-
resilient
development
planning at the
local level
Facilitate
REMA and
MINILOC to
support
greening of
DDPs
125,000 125,000 125,000 125,000 500,000
Output 2.1.4:
Increased capacity
of communities to
plan, implement
and monitor
adaptation
programs
Training –
Participatory
M&E
20,000 10,000 10,000 10,000 50,000
Development
of M&E tools
40,000 0 10,000 0 50,000
Facilitate
communities
to carry out
planning an
monitoring
10,000 10,000 10,000 10,000 40,000
Total 245,000 365,000 309,749 235,000 1,154,749
Output 2.1.1: Increased knowledge and understanding of the social dimensions of vulnerability and
resilience to climate change
Using the cooperatives as the entry point, the project will use the PLPA (Participatory Learning Planning
and Action) to capture the social dimensions of vulnerability and resilience to climate change in a
participatory manner. The PLPA process will also establish the current knowledge attitude and practices
as a baseline (KAP Survey). Using the results from the two processes, the project will then design
training programs and develop both print, voice and electronic public awareness materials on social
dimensions of vulnerability and resilience to climate change.
Output 2.1.2: Increased awareness of climate change impacts and promotion of gender-responsive
climate adaptation
The project will ensure that the adaptation efforts are gender and age responsive and consider the specific
needs of men, women and youth as well as the gendered inequalities that may exacerbate the impacts of
climate change for poor women in particular, or prevent women from benefitting from adaptation
interventions.
The project will achieve this by identifying gender and age dimensions of vulnerability to climate change
as well as analyzing and addressing gender and age inequalities, risks and opportunities in the context of
the planned responses to climate change and promoting gender-aware responses to climate change.
The project will work with men and women and boys and girls to promote equal access to decision-
making processes in adaptation planning by making the capacity building processes transparent and
accessible. The project will also train women and youth organizations to take part in and lead these
processes.
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Output 2.1.3: Increased institutional capacity of district administrations to coordinate and support
climate-resilient development planning at the local level The Government of Rwanda through FONERWA has provided funds for REMA and MINILOC for
greening the District Development Plans. The project will enhance this effort through targeted capacity
building towards key staff in the local authority at District, Sector and Cell levels and promote a climate
extension service. At the District level this will include: Agronomist Officers, Environment Officers and
interns, Infrastructure Officers, Lands Officers, Forestry Officers, Extension Officers and RAB CIP
Officers. Agronomist Officers in each sector and Integrated Development Program (IDP) Officers at the
cell level will also be included.
Output 2.1.4: Increased capacity of communities to plan, implement and monitor adaptation programs
This output will use co-operatives as an entry point to strengthen the capacity of vulnerable communities
to plan and implement adaptation interventions recognizing that these processes must be founded on men
and women farmers’ knowledge and experiences. Using training materials manuals and materials
produced by the Adaptation Fund project, the project will progressively build capacity of communities to
plan, implement and monitor adaptation programs.
Component 3: Climate resilient small-scale rural infrastructure
This component will focus on investment in upgrading rural infrastructure, such as post-harvest storage
facilities that are connected to the electricity-grid by the AfDB baseline project.
In order to achieve the results of this component, a number of outputs and indicative activities are
summarized as Table D.
Table D: Component 3 outputs and activities
Component 3: Climate resilient small-scale rural
infrastructure
Cost (USD)
Outcome Output Activity Year 1 Year 2 Year 3 Year 4 Total
Outcome
3.1: Increased
resilience
of small
scale rural infrastructure
to climate
change
Output
3.1.1: Increased
investment
in small-
scale rural
infrastructur
e designed,
built and/or
rehabilitated
to a
specification
that takes
into account
anticipated
climate risks
Consultant –
Infrastructure audit
80,000 0 0 0 80,000
Small scale
infrastructure -
Karongi
0 40,000 300,000 300,000 640,000
Small scale
infrastructure -
Nyamasheke
0 40,000 300,000 300,000 640,000
Small scale
infrastructure - Rusizi
0 40,000 300,000 300,000 640,000
Output
3.1.2: Rural
markets
upgraded
with at least
30% of
space
Rehabilitation/Upgra
de markets-Karongi -
0 40,000 205,000 130,000 375,000
Rehabilitation/Upgra
de markets-
Nyamasheke -
0 40,000 205,000 130,000 375,000
Rehabilitation/Upgra
de markets - Rusizi
0 40,000 200,000 130,000 370,000
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Component 3: Climate resilient small-scale rural
infrastructure
Cost (USD)
Outcome Output Activity Year 1 Year 2 Year 3 Year 4 Total
allocated to
women and
20% to
youth
Construct New
Market Rusizi
0 50,000 300,000 200,000 550,000
Meeting– Market
committees
10,000 10,000 10,000 5,000 35,000
Output
3.1.3: Increased
institutional
capacity of
district
administrati
ons to
coordinate
and support
climate-
resilient
development
planning at
the local
level
Training –Engineers
and Procurement
20,000 0 20,000 0 40,000
Consultant - Training
Modules
development
(Working with
Integrated
Polytechnic Regional
Centre (IPRC),
develop training
modules for Training
of Trainers)
40,000 0 25,000 0 65,000
Training – TOT on
Modules for IPRC
50,000 0 10,000 0 60,000
Support trainees to
deliver modules
0 10,000 10,000 10,000 30,000
Consultant –
Guidelines
development
50,000 0 0 0 50,000
Consultant –
Checklist
development
(Develop a checklist
for construction,
supervision and audit
to ensure future
compliance of future
infrastructure with the
new climate-proofed
design standards)
50,000 0 0 0 50,000
Total 300,00
0
310,00
0
1,885,00
0
1,505,00
0
4,000,00
0
Output 3.1.1: Increased investment in small-scale rural infrastructure designed, built and/or
rehabilitated to a specification that takes into account anticipated climate risks.
The main activity under this output is carrying out an infrastructure audit. The audit will list the number
and type of structures, which require climate proofing. Using communities and other stakeholders, a
selected number of infrastructure will be identified during the audit for upgrading, which will act as
models for future designs and building.
Output 3.1.2: Rural markets upgraded with at least 30% of space allocated to women and 20% to youth
During a stakeholder workshop conducted as part of program development, one market was identified for
construction.in Rusizi. The program will carry out a rapid assessment of the existing markets, by working
with key stakeholders to identify at least six markets for rehabilitation/upgrading of existing markets in
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other Districts. To ensure that women and youth benefit from these rural investments, the assessment will
recommend that the project work with sectors allocation committees to ensure that 30% and 20% of
women and youth are allocated spaces.
Output 3.1.3: Increased capacity of District engineers and local contractors to factor in climate risks to
the design and construction of small-scale rural infrastructure
The project will build capacity of district engineers and procurement officers on factoring of climate risks
in the design and construction of small-scale rural infrastructure. This will be achieved by first,
developing of training modules and conduct a TOT for IPRC (main college where rural engineers are
trained). The project will also develop guidelines for engineers and procurement officer on inclusion of
climate risks in tender documents. A checklist for construction, supervision and audit will also be
developed and capacity built for the main users.
Component 4: Monitoring and Evaluation
It is of utmost importance for the project to make use of internationally recognized results-based
monitoring and evaluation frameworks during the implementation of the entire project. FONERWA in
collaboration with EDCL will be responsible for the monitoring and evaluation. The project will also
document all problems and lessons encountered during the project’s implementation as a way of
knowledge management. This will ensure that successes are replicated while hindrances would be
avoided early for similar future projects or even other current projects. The component will look at
knowledge management and dissemination, monitoring (both internal and external). In order to achieve
the results of this component, a number of outputs and indicative activities are summarized as Table E1.
Table E: Component 4 outputs and activities
Component 4: Knowledge, Monitoring and Evaluation
Cost (USD)
Outcome Output Activity Year
1
Year
2
Year
3
Year
4
Total
Outcome 4: M&E
management and
lessons learnt are
captured and
appropriately
disseminated
Output 4.1.1:
Compile,
document and
disseminate
Knowledge
adaptation
products
Establish a
knowledge
management
strategy
5,000 0 0 0 5,000
Document
knowledge
adaptation products
and lessons learnt
(Write shops)
20,000 0 5,000 5,000 30,000
Dissemination of
lessons – electronic,
paper and
workshops
10,000 5,000 15,000 15,000 45,000
Output 4.1.2:
Participation
in adaptation
practitioners’
events
Facilitate seminars
and workshops
(Project team
participation and
presentation of
knowledge products
0 15,000 0 15,000 30,000
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from the projects in
various forums)
Output 4.1.3:
Produce
Monitoring
and
evaluation
reports
Develop a project
M&E framework
and Information
Management
Systems (IMS)
5,000 0 0 0 5,000
Produce monitoring
reports per
component and as
annual project
reports
5,000 5,000 5,000 15,000
Mid Term Project
Evaluation
0 0 40,000 0 40,000
End of Project
Evaluation
0 0 0 40,000 40,000
Monitoring Travel -
Joint monitoring
and staff
10,000 10,000 10,000 10,000 40,000
Total 50,000 35,000 75,000 90,000 250,000
Output 4.1.1: Compile, document and disseminate Knowledge adaptation products
This output will focus on Knowledge Management and Dissemination: Knowledge sharing is central to
climate compatible development and plays a key role in ensuring stakeholder participation at all levels.
Knowledge production is often considered a shared experience between national level policy makers,
scientists and local community members.
The associated knowledge dissemination framework will include communities as generators of
knowledge and promote peer-to-peer and lateral knowledge sharing across all stakeholders in the climate
change domain in Rwanda with specific focus on the project areas. To promote both dissemination and
interaction on a wider scale, mass and social media will be used to facilitate broad knowledge sharing
across significant portions of the communities that are and will likely continue to be affected by climate
change in the project areas. To achieve this, various knowledge dissemination products will be developed
such as; (i) Web and paper based information booklets/brochures (ii) Posters (iii) Radio/television
broadcasts (iv) Videos, animations, still images and Policy briefs, etc. Information contained in the above
knowledge dissemination products will be generated from climate change relevant information available
from national, regional and global sources, including the differential impacts of climate change across
genders, classes, ages, abilities and ethnic groups.
Output 4.1.2: Participation in adaptation practitioners’ events
The project will facilitate participation of various stakeholders in practitioners’ events. Proceedings from
climate change seminars, stakeholder workshops, focus group discussions, progress reports and other
climate change relevant information and knowledge products. The knowledge dissemination products will
target both grassroot level and policy level stakeholders to bridge the gap between top-level (policy
makers) and bottom-level (portion of stakeholders most affected) stakeholders. The project will also
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facilitate participation of various stakeholders in practitioners’ events. Proceedings from climate change
seminars, stakeholder workshops, focus group discussions, progress reports and other climate change
relevant information and knowledge products.
Output 4.1.3: Produce Monitoring and evaluation reports
The project will ensure that monitoring of the project is conducted and reported at various levels;
including internal, external and at community levels (participatory M&E). At the beginning of the project,
a project M&E framework will be developed together with a robust IMS (Information Management
Systems). The system will allow real time data input and analysis from internal and community
evaluation.
Internal monitoring: Internal monitoring will serve the purpose of ensuring that the proposed Knowledge
management and monitoring & evaluation (M&E) framework is adhered to using appropriate means and
approaches. Monitoring and evaluation personnel from REMA, MINIRENA, FONERWA, and EDCL
will be jointly responsible of the internal monitoring and evaluation of the project. The monitoring and
evaluation reports highlighting important issues that could impact on the delivery of the project will be
submitted to the PSC for review and decisions, and subsequently to the Bank as part of the quarterly
report.
The proposed monitoring parameters, frequency and time schedule should be followed to the later to
ensure effective implementation of proposed intervention measures. All experts involved in the project;
climate change adaptation and vulnerability expert, financial, procurement, & M&E expert, rural
infrastructure expert, and social development expert are expected to make at least two monitoring visits
yearly per project activity to observe pre-project situation, middle of activity and end of project status.
Progress reports will be prepared for each visit by each expert with collaboration with the implementing
agency (ies) to give finer details of the project at the time of evaluation. The progress reports will be
submitted to the PSC for review and decision and subsequently to the Bank.
Participatory M&E: Participatory Monitoring, Evaluation, Reflection and Learning (PMERL) formulated
and information gathered used in adaptive management and shared widely: The project will facilitate the
design and use of a Participatory Monitoring, Evaluation, Reflection and Learning for Community-based
Adaptation plans. As described in the Community Based Resilience Analysis, CoBRA (UNDP, 2013) and
PMERL Manual (by CARE International), the formulation and implementation of this system will
enhance participation of the communities in learning about the effectiveness of the adaptation measures
and the continuous modification of those measures as the circumstances change, to continually improve
their efficacy. Under this output, the project staff will monitor the climate / environment / development
indicators on yearly basis, and prepare annual plans based on these indicators and also facilitate the
publication of annual district report which at present is not produced by any district in Rwanda.
External monitoring: External monitoring will be executed by an independent monitoring expert who will
review the progress reports prepared by the internal monitoring process Vis a Vis the actual situation on
the ground. The external monitoring expert will evaluate reports, data, work and other activities related to
implementation of the project with the aim of ensuring that the proposed intervention measures are
implemented as planned in the Knowledge management and monitoring & evaluation (M&E) framework.
The independent monitoring expert will submit progress reports to the AfDB/GoR/GEF.
XXIII
Project Document Annex 1: GEF PIF Approval
XXIV
Project Document Annex 2: GEF CEO Approval
XXV
Project Document Annex 3: Government Request to the Bank for Project Financing