Background

Djibouti is a small country located in the Horn of Africa. The total population of the country is estimated at about 900 000 inhabitants (2016) and its surface area is 23 200 km2. About two-thirds of the population lives in the capital Djibouti. As a result, the rural population represents less than 30% of the population. This is mainly due to the small size of the country. According to the 2016 UNDP Human Development Report (HDR), Djibouti is ranked 172nd in the Human Development Index, out of 188 countries evaluated. Djibouti is classified as a least developed country (LDC). The country's economy is characterized by extreme dualism. The modern, commercial and export-oriented urban sector contrasts with the rural sector, which is a subsistence economy based on pastoralism, with very limited access to infrastructure, services and markets. The overall electrification rate in Djibouti is 47%. It is a national average, very diverse in the country. The access rate is 57% in the capital, while only about 10% in rural areas. The country is completely dependent on petroleum products for power generation, despite its own high potential for renewable energy, particularly in terms of solar, wind and geothermal energy.

In 2014, the government of Djibouti launched an ambitious long-term development plan called Vision 2035. Djibouti aims to make a transition in the energy sector, from 100% fossil thermal energy in 2010 to 100% renewable energy by 2020. This energy would come mainly from geothermal, wind and solar energy and the Ethiopian hydropower grid. So far, the goal of 100% renewable energy by 2020 will not be achieved. Significant efforts are needed to make Djibouti an energy-secure country and tackle the problem of access to energy. Currently, per capita annual electricity consumption is about 330 kilowatt-hours (kWh). 

compared to an average of more than 575 kWh in Africa and a global average of more than 2,770 kWh. This makes Djibouti's average citizen one of the lowest electricity consumers in the world. In addition, about 53% of the population does not have access to electricity (this rate is 90% in rural areas) and the level of unmet demand in the electricity sector is significant. This suggests that Djibouti must bridge the gap between electricity demand and what it can deliver to its citizens. The lack of reliable and affordable energy is therefore a major obstacle to the ambitious goals of Djibouti's economic development plans

In order to increase the rate of rural electrification, a Project Identification Sheet (PIF) "Promoting Better Access to Modern Energy Services through Sustainable Mini-Grids and Hybrid Technologies in Djibouti" was developed by the UNDP-GEF, to promote investments in decentralized mini-networks based on renewable (solar) energy. As a result, the Global Environment Facility (GEF) approved the concept of the said Project which was presented by UNDP on behalf of the Ministry of Housing, Urban Planning and Environment (MHUE). This project will be one of the key instruments to implement the priorities of the Energy sector in rural areas. It aims to facilitate access to modern energy in rural areas by strengthening the regulatory and institutional framework of mini-grids, strengthening mini-grid management capacities and developing a business model of small-scale grids. Also, the project will seek to raise investor awareness, increase their interest and confidence to invest in sustainable mini-grids. Following the approval of the Project concept (PIF), UNDP received from GEF a Project Document Preparation Grant (PPG) to enable preparation of a Medium-sizedProject Document (MSP) based on the initial PIF.

To this end, for the formulation of the Project document (ProDoc), UNDP is seeking the services of an international energy consultant specialized in sustainable mini-grids and in Financial Engineering, capable of providing inputs necessary for the production of a complete Project Document for the establishment of decentralized mini-networks. By sustainable mini-grids, it includes renewable energy based mini-grids and the adequate financial set up to ensure sustainability.

The project has received a Project Preparation Grant (PPG) from the GEF to prepare a Medium-Sized Project (MSP) document, based on the approved project proposal concept (PIF). The PPG will need to support various data collection efforts and undertake validation of the indicative outcomes and outputs contained in the PIF; the development of a full M&E plan including appropriate indicators and baseline; and the development of a participatory plan to involve communities and government stakeholders as well as agreed implementation arrangements and co-financing. The final output of the PPG phase will be a UNDP-GEF project document and GEF CEO Endorsement Request ready for submission to UNDP and GEF, with all required supporting annexes, tracking tools, Social and Environmental Screening Procedure (SESP) and background information.

Duties and Responsibilities

Description of Responsibilities:

In approximately 40 days of total work throughout the duration of the PPG process (various tasks are expected to be done concurrently), the overall purpose of the consultancy is the preparation of a UNDP-GEF compliant full-sized project. The consultant will be expected to provide lead quality assurance as regards all activities under the preparation. The consultant will be the leader of a team consisting of some local consultants (energy engineer, gender specialist). More specifically, the consultant is expected to:

GEF Project Formulation

  • Control quality of inputs and outputs of all consultants and sub-contractors
  • Mainstream the project’s problem and barrier analysis among the project planning team
  • Help determine the project’s system boundaries and scope
  • Demonstrate the cost-effectiveness of using sustainable mini-grids, particularly with respect to calculated actualized electricity costs, but also other factors such as availability of resources, technical factors, policy-friendly environment and institutional considerations.
  • Facilitate the logical framework analysis workshop
  • Investigate potential options for the project’s institutional and implementation arrangements
  • Address any opportunities/risks identified during the Social and Environmental Screening Procedure (SESP)
  • Provide detailed information on the proposed activities
  • Develop the project’s sustainability strategy
  • Clarify the additionality of the proposed outcomes and activities, and ensure that the project approach is the most cost-effective according to GEF guidelines.
  • Facilitate the process of confirming the co-funding and co-financing plan
  • Develop a detailed M&E work plan for all activities funded by the GEF climate change mitigation allocation, including clear identification of responsibilities and accountabilities, as well as an appropriate M&E budget. The plan will be based on the standard template provided in the UNDP-GEF project document template that reflects the mandatory requirements of the GEF M&E Policy. 
  • Finalize the project results framework. Further define the results framework with appropriate objective-level and outcome-level quantitative and qualitative SMART2 indicators, and end-of-project targets. Ensure that all energy-related activities are in conformity with GEF 6 focal area guidelines and indicators. Special attention should be paid to include socio-economic and sex-disaggregated indicators.
  • Develop the Project Document and CEO Endorsement Request, and annexes.
  • Address all comments on the project design by the Scientific and Technical Advisory Panel (STAP) and GEF Secretariat.

Sustainable mini-grids technical provision.

  • Provide detailed analysis and best strategy for promoting the investments in decentralized renewable energy-based mini-grids (including financial and fiscal instruments, socio-economic interests and value chain analysis)
  • Review relevant documents (reports, plans, studies/assessments, academic papers) in Djibouti related to decentralized energy, renewable energy and mini-grids in particular.
  • Meet with key stakeholders in the Ministry of Energy, Ministry of Environment, potential project developers, potential donors, local communities and other stakeholders during a brief in-country mission to understand how financial incentives should be designed to support RE-based mini-grids, subject to a range of macroeconomic, microeconomic, institutional, environmental and technical considerations.
  • Based on the desk review, modelling and stakeholder consultations, and taking into account the experience with similar financial mechanisms in other GEF-financed projects, develop financial incentives and strategies for market mechanisms .
  • In the context of the business-as-usual baseline scenario and the project scenario involving the recommended financial incentives and associated policies and regulations, analyze the financial and economic viability and applicable business models on the pre-identified potential project sites with a view to facilitating actual investment in these sites.

Translation

·All documents (project document, CEO endorsement request, tracking tools, SESP, etc.) are to be prepared in English. However, it is expected at the end of the process, to translate the project document from English to French. In this regard, the international consultant should include a translation lump sum payment in his/her financial offer. 

 

Competencies

Competencies:

  • Proven ability to conduct detailed financial and technical analyses of project investments or activities, including calculation of estimated GHG reductions and cost-benefit analyses.
  • Proven ability to prepare Log Frame Analyses (LFAs) and project budgets.
  • Strong logical and analytical reporting and writing abilities.
  • Proven communication and leadership skills.
  • Excellent team player with good interpersonal skills amongst diverse cultures.
  • Ability to proceed plans and manage workloads with minimum supervision.
  • Experience working in Sub-Saharan Africa is an asset; national knowledge is desirable.
  • Ability to conduct detailed quantitative GHG emission reduction calculations (direct and indirect) according to GEF policies and procedures

Corporate Competencies:

  • Demonstrates integrity by modelling the UN’s values and ethical standards.
  • Ability to establish and maintain good working relations with colleagues in multi-cultural environments.
  • Fulfills all obligations to gender sensitivity and zero tolerance for sexual harassment.

 

Required Skills and Experience

Education:

  • Minimum of Master’s degree in energy, engineering, finance, economics, development or related fields. Successful applicants are expected to possess more than one of the following areas of expertise on the ground and proven experience in the respective areas of specialization in addition to the minimum qualifications specified above.

Experience:

  • Minimum 7 years of professional experience in the field of sustainable energy, i.e. with projects and policies on renewable energy, energy efficiency and technology transfer. Preference will be given to candidates with experience in Africa.
  • Experience with policy or institutional development/implementation/reform, relating particularly to energy and infrastructure investment.  
  • At least 5 years’ experience with renewable energy project development, implementation or demonstrations at local, national and/or international levels.
  • Experience working with international organizations, including UNDP and GEF, is preferred but not requir

Language requirement:

  • Fluent written and spoken English and French are essential.