Background

UNDP in Lesotho supports the Basotho people to build resilience at every level to help achieve long-term sustainable development goals. UNDP provides assistance in the focus areas of poverty reduction; promotion of transparent, accountable and effective governance at all levels; and managing environmental changes by adopting an integrated approach to sustainable management of natural resources. UNDP is currently supporting the government in formulating a GEF-financed proposal on Development of Cornerstone Public Policies and Institutional Capacities to accelerate Sustainable Energy for All (SE4All) Progress. One of the key components of the project is on village-based energisation schemes, which would involve setting up 10 renewable energy-based mini-grids and 10 Energy Centres. In order to kick start the market for isolated mini-grids and Energy Centres, the project proposes to put in place a Financial Support Scheme. The initial capitalisation of the scheme would include $1,000,000 from GEF and $200,000 from UNDP. Below are the broad outlines of the proposed Financial Support Scheme.

 

Duties and Responsibilities

The design of the Financial Support Scheme to be managed by the Lesotho Electricity and Water Authority (LEWA) is one of the key aspects that is essential for the success of the project. For the development of the FSS, the project proposes to work with LEWA.

The specific consultancy activities include:

  • Review the draft project document and Request for CEO Endorsement in detail in order to fully understand the overall project design and the rationale and expected role of the FSS;
  • Discuss the proposed financial support scheme with the lead project formulation consultant;
  • Meet with LEWA, the Department of Energy, potential project developers and other key stakeholders during a brief in-country mission to understand how similar funds in Lesotho are currently managed, in particular the Universal Access Fund, and to discuss the proposed design of the FSS;
  • Identify potential donors for the additional capitalisation of the FSS. One of the project’s targets is that $5 million has been invested in the FSS by project end.
  • Based on the desk review and stakeholder consultations, and taking into account the experience with similar financial mechanisms in other GEF projects, design the FSS in line with the three elements outlined above, namely a performance-based incentive for project developers based upon the actual energy produced, support for the preparation of feasibility studies/business plans and partial investment for isolated RE-based mini-grids, support for the establishment of 10 Energy Centres, each serving about 5 villages;
  • Draft a Memorandum of Understanding between UNDP and LEWA defining how the project will work with LEWA.

Consultancy Final Deliverables

Report comprising the following elements:

  • Detailed design of the financial support scheme encompassing the three elements outlined above. The design of the FSS should include a clear explanation of the management arrangements of the fund and the criteria for disbursement. It should also include a clear exit strategy, in particular under what circumstances would the funds be returned to GEF in the case of non-performance or financial mismanagement. The detailed design of the FSS will be attached as an Annex to the project document and will be available on either the LEWA or project website;
  • Information on potential donors for the additional capitalisation of the FSS;
  • Draft Memorandum of Understanding between UNDP and LEWA defining how the project will work with LEWA.

Timelines on Deliverables

The initial submission of final deliverable should be completed by 31 July 2015. However, the consultant should be available for any additional revisions to the deliverables after the initial submission to the GEF Secretariat.

Competencies

Core Competencies:

  • Demonstrates integrity and ethical standards;
  • Mature judgment and initiative;
  • Ability to think out-of-the-box;
  • Ability to present complex issues in simple and clear manner;
  • Ability to work under pressure and deliver high quality results on time;
  • Initiative and independence.

Functional Competencies:

  • Analytic capacity and demonstrated ability to process, analyse and synthesize complex, technical information from different disciplines;
  • Ability to innovate, combining methodological approaches and data from various levels and disciplines including economics, finance, development and climate change mitigation;
  • Proven ability to support the development of high quality knowledge and training materials, as well as audio-visual communications products.

Required Skills and Experience

Education:

  • An advanced post-graduate university degree in a subject related to climate change, climate finance, environmental management and/or business administration, or equivalent work experience.

Experience

  • Professional experience in designing financial mechanisms for GEF climate change mitigation projects.
  • Strong knowledge on renewable energy, including renewable energy-based mini-grids.
  • Experience with banking and financial practices supporting renewable energy-based mini-grids would be an asset.

Language:

  • Excellent written and spoken English Language.

Personal History Form (P-11):