Background

By end of 2018, 789 billion people in the world including approximately 573 million people in Sub-Saharan Africa (SSA) still lack access to electricity. Over the past decade, Uganda was among the three countries which showed the greatest improvement in access to electricity since 2010 and with electricity access keeping pace with population growth between 2020 and 2018[1]. Although Uganda is making progress towards achieving Sustainable Development Goals (SDGs), more still needs to be done to increase energy access to rural populations.

The overall national electrification level in Uganda is currently estimated at 26%. The rural electrification level is even lower, at about 7-8%. This impacts on the socio-economic development of the people of Uganda. The goal of Uganda’s National Development Plan III is “Increased household incomes and improved quality of life” which is achieved under the overall theme of “Sustainable Industrialization for inclusive growth, employment and sustainable wealth creation”. This is in line with Uganda Vision 2040, EAC Vision 2050, Africa Agenda 2063 and the Sustainable Development Goals (SDGs). Increasing access to electricity in Uganda especially in the rural areas is therefore critical in achieving industrialization, gainful employment and improvement in the quality of life for both nationals and refugees.

Uganda has been hosting refugees since 1959 and currently hosts more than 1.4 million refugees, making it the third largest refugee-hosting country in the world. Currently, 97 percent of the refugees in Uganda lack adequate access to safe, clean and sustainable energy and current delivery models are costly and carbon intensive. UNHCR Uganda spends about USD500,000 annually on pumping water using diesel generators in the refugee settlements, this contributes about 6,776 tCO2 per year. UNHCR’s own greenhouse gas emissions amounts to 97,136 tons of CO2 annually, and one major source of our emissions is that fact that we are running diesel generators, particularly in our large field compounds in our Africa operations.  In addition, most of the UNHCR base camps (UNHCR offices and accommodations and partner offices) are powered by diesel generators which are expensive to run and maintain thereby taking a significant fraction of UNHCR Uganda financial resources.

Decentralized energy solutions are the lowest cost and most practical way to provide power in remote and off grid health centers. Efforts to improve health outcomes present a major opportunity to improve access to and the quality of health services. Currently, 50% of public health centers in Uganda do not have access to electricity and functionality of installed solar PV systems remains at below 50% due to inadequate operation and maintenance. [2]

A major hindrance to electrification is limited funding which is more pronounced in Sub-Saharan Africa. Considering 2017 alone, financing for off-grid electrification represented only 1.2% of total funding for energy access, more than half of which was concentrated in Kenya, Tanzania and Uganda[3]. Therefore, it is imperative that private financing is unlocked to supplement the already limited public financing that is being invested in areas unlikely to be attractive to the commercial investors by using a combination of approaches such as partnerships with local commercial banks to support results-based financing (RBF), pay-as-you-go and de-risking mechanisms.

The purpose of this joint programme between UNDP, UNHCR and WHO in Uganda is to accelerate progress on SDG 7 and related SDGs through an integrated suite of activities and innovative financing that leverages the UN’s position as a guaranteed energy off-taker to catalyze the domestic uptake of solar leasing and or Power Purchase Agreement (PPA) arrangements with both the UN and stakeholders in the health, education, shelter of refugees and other social sectors.

Objectives of the Joint Proposal:

The overall objective of the joint proposal is to identify and design a viable business and financial model to leverage additional financing from public utilities and the private sector companies to invest and supply renewable electricity to UN offices and social institutions of health and education within refugee hosting areas.

Specific Objectives:

• Identify  and develop innovative financing models to for leveraging financing for electrification of the selected institutions in partnership with financing institutions at national and international level and development partners;
• Review available data to understand landscape of energy demand and needs of UN compounds and social institutions;
• Develop de-risking tools for the  private energy service companies to expand their market-reach in displacement settings in collaboration with Uganda Energy Credit Capitalization Company (UECCC);
• Project Components:The project is envisaged to cover the design of three components or service lines;
• Establishment and capitalization of a specialized financing model that would both address financing constraints faced by the Energy Servicing Companies (ESCOs)/suppliers that are prospective bidders of the procurement packages that UNDP, WHO and UNHCR are tendering, as well as support for the off-takers;
• An aggregation and coordination support platform that would provide ‘one stop’ visibility, services and access for entities in Uganda related to solarization via leasing or PPAs;
• A technical assistance budget that would seek to bundle together a pool of UN Solarization projects and provide a limited amount of grants to participating UN-affiliated health, education and refugee settlement facilities customized energy audits for solar PV applications.

Expected outcomes:

Overall, the outcome of implementing the joint proposal is increased public and private investment in electrification of UN operations and other social sectors including health centres, schools, refugee settlements in rural areas especially refugee hosting areas.

Expected Outputs:

• Additional financial resource mobilized to leverage investments in renewable energy technologies for the under-privileged communities;
• Increased access to electricity for rural communities leaving no one behind including forcibly displaced persons (refugees).
• Enhanced business opportunities and market development for energy access  for the most vulnerable communities;
• Reduced CO2 emissions (Greening the Blue) through solarization of UNDP and UNHCR facilities in Uganda via solar leasing schemes or Power Purchase Agreements (PPAs) with ESCOs;
• Savings from substitution of diesel power generation re-invested as part of a revolving fund to support further solarization activities.

Objective of the Assignment:

The overall objective of this assignment is to support the inter-agency Task Team of UNDP, UNHCR, WHO and the Ministry of Energy and Mineral Development (MEMD) in the design of a detailed proposal aimed at leveraging public and private financing for energy access using renewable energy for UN operations and social institutions in Uganda using market-based approaches.  

[1] IEA, IRENA, UNSD, WB and WHO (2020). Tracking SDG 7: The Energy Progress Report 2020.

[2] WHO Report (2018). Energy for the health sector.

[3] SEforAll and CPI (Climate Policy Initiative). 2019. Energizing Finance: Understanding the Landscape, 2019. Vienna: SEforAll. https://www.seforall.org/sites/default/files/2019-10/EF-2019-UL-SEforALL.pdf.

Duties and Responsibilities

The joint proposal shall be designed based on baseline data/information collected on the access to energy  and renewable energy finance data at national level, among the selected institutions including UNHCR base camps (offices, accommodations, reception centres), UNDP premises, WHO offices,  schools, health centres across the Uganda. Therefore, the consultancy is expected to:

• Rapidly review relevant prior work, data, literature review, and case studies with a view of generating hypotheses of potential business models / financing modalities to test; draft potential business model concepts and build financial model with associated economics;
• Test with UN entity focal points including the Energy Service Companies, financing institutions as well as key external entities for feedback and to gauge their interest; select most promising model for further work and refine business model and financial model based on initial feedback;
• Identify existing financing models that can serve as best practice examples, analogous models to work from, etc., and/or existing financing vehicles/entities that can be approached to invest in this concept; conduct external consultations with financiers/investors/donors with a view towards securing ‘soft’ commitments to finance if SDG Joint Fund funding is secured.  Also carry out consultations with the project task force and  key stakeholders in renewable energy financing including MEMD, Uganda Solar Energy Association, UECCC, REA, ERA, UNDP, UNHCR, GIZ, USAID/Power Africa, NGOs involved in energy access, banks and Micro Finance Institutions (MFIs) and refugee leadership; Research institutions and academia will be engaged such as the Makerere University Centre for Research in Energy and Energy Conservation (CREEC);
• Develop financing and business models for solarizing the selected UN compounds and social institutions. This will involve business case development and financial modeling, then an iterative process of testing with potential financiers/investors and adjusting as needed;
• Develop financial de-risking instruments to address foreseen risks and barriers such as the long-term commitments to the PPAs, guarantee of payments. This will involve creation of a financing instrument to address foreseen risks such as non-payment by users of the provided solar energy. This is important to ensure sustainability of the programme.  The consultant should conduct a  quick check (e.g., initial consultations with legal expert) to check that legal parameters for the hypothesized business/financial model are workable;
• Develop expression of interest to leverage additional funding enable private capital flows and upscale investments by the project. Develop concrete avenues and opportunities for co-financing through existing programmes implemented by the  UN agencies for example the UNDP’s energy for health initiative that focuses on electrification of health centres, Climate Aggregation Platform, Renewable Energy certification pilot initiative among others; 
• Develop detailed project proposal including implementation budget, timelines and implementation framework for submission to SDG Fund.

Expected deliverables:

• 20% upon submission of Inception report detailing methodology of the assignment, work plan, timeline, a list of national government institutions, UN agencies, ESCOs, private sector, financing institutions and other stakeholders to be consulted.  This will also involve Support UN Country teams (UNCT) to enhance what is described in the concept note and make sure this is aligned with the criteria of the SDG fund call;
• 20% upon submision of Conduct consultations, review of  relevant prior work, data literature review, and case studies with a view towards generating hypotheses of potential business models / financing modalities to test, Draft potential business model concepts, test with UN entity focal points including the Energy Service Companies, financing institutions  as well as key external entities for feedback and to gauge their interest;
• 20% upon submission  - Develop financing and business models for solarization, commitments and letters of interest to leverage financing, co-financing opportunities and financial de-risking instruments for the private sector including energy service companies; 
• 40% upon submission of Final deliverable for this assignment s a project document that will be submitted to SDG Joint Fund. This should have options for business/financial models (description, high-level economics, pros/cons of each option), co-financing opportunities and feedback from stakeholder consultations on the most viable financing options

Competencies

Functional competencies:

• Ability to coordinate, convene stakeholders and report in a timely manner;
• Excellent organizational skill, service-mind, punctual, self-motivated, proactive, reliable and demonstrated ability to work in harmony with government, private sector and staff members of different national backgrounds;
• Respect for the principles of the United Nations;
• Excellent report writing skills; and Strong communication skills including and presentation skills; and
• Proven capability to meet deadlines and work under pressure

Required Skills and Experience

Qualifications:

Advanced degree or qualification in finance, accounting, economics, law, or  master’s in business administration or any other related disciplines.   Additional qualification in renewable energy would be desired.

Required experience:

• A minimum of 10 years professional experience in renewable energy finance specifically in solar sector at global, regional and national level;
• Specialized experience in developing PPA models, solar leasing schemes, catalytic and result based financing models developing countries. Experience in Uganda/ East African region is an added advantage;
• Experience in developing private sector financing models and approaches for example through ESCOs, leasing or PPA models
• Experience in conducting feasibility assessment, cost benefit analyses for renewable energy projects;
• Ability to leverage funding from a wider range of sources including financial institutions, donors, private sector among others;
• Good understanding of the renewable energy financing approaches in Uganda, challenges, institutional and governance structures;
• Experience in working with a variety of stakeholders, including government agencies, donors, Private sector, planning authorities, government Ministries Department, Agencies (MDAs), NGOs, finance institutions, research and academia;
• Experience in developing financial models.

Language requirement:

Proficiency in English Language.

Team Composition:

The team will be composed of 1 international and 1 national  consultant The international consultant shall be the renewable energy finance expert and also the team leader for the assignment while the national  consultant shall be the renewable energy expert. Both consultants will be recruited independently but will be obliged to work together on the assignment.

The international consultant will be designated as the team leader and will be responsible for guiding the entire proposal design, ensuring quality of the deliverables  and finalizing the proposal document. He /she may work remotely due to COVID19 travel restrictions.

The local/national consultant will be responsible for collection of all in-country data that cannot be collected remotely, organizing meetings with national stakeholders and  where necessary conduct field work and coordination at Country level.

Reporting:

The team of experts shall report to the project task force which includes representatives from UNDP, UNHCR, WHO, Ministry of Energy and Mineral Development, representatives from the financing sector, private sector e.g. ESCOs and any other relevant partners.

The assignment will be coordinated closely with by UNDP, WHO and UNHCR focal points for the project.  Technical support will be provided by the SDG fund team, UNDP Global energy team. The Consulting firm shall closely collaborate with all partner institutions and keep them posted on the progress, deliverables and issues during all stages of the proposal development.

Duration for the work:

The assignment is expected to be covered maximum of 35 working days from the signing of the contract.  The final deliverables should be submitted by end of October 2020.

      Hiring process:

Individual consultants including a Renewable Energy Finance Expert/ Lead consultant (International)  and Renewable Energy Expert (National) will be contracted for the assignment. Each of the consultants will be contracted independently  and UNDP will pair up the consultants and ensure they work closely together to achieve the deliverables.

Compliance with UN Core Values:

• Demonstrates integrity by modelling the UN’s values and ethical standards;
• Promotes the vision, mission, and strategic goals of UNDP;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Treats all people fairly without favoritism; and
• Fulfils all obligations to gender sensitivity and zero tolerance for sexual harassment.

Selection Criteria

Qualified Individual Consultant is expected to submit both the Technical and Financial Proposals. Only those applications which are responsive and compliant will be evaluated. The Consultant will be evaluated based on qualifications and the years of experience, as outlined in the qualifications/requirements section of the Terms of Reference. In addition, the consultant will also be evaluated on the following methodology:

• Technical Criteria weight:        70%;
•  Financial criteria weight:         30%.

The award of the contract shall be made to the Consultant whose offer has been evaluated and determined as: Responsive/compliant/acceptable; and having received the highest score out of a pre-determined set of weighted technical and financial criteria specific to the terms of reference.

Submission of Application:

The candidate is required to submit an electronic application directly uploaded on the UNDP jobs website with all the requirements as listed here below. Annexes and further information may be downloaded on http://procurement-notices.undp.org no.93829.

Interested individual consultants must submit the following documents/information to demonstrate their qualifications in one single PDF document to this website - http://jobs.undp.org no. 69806.

• Duly accomplished Letter of Confirmation of Interest and Availability using the template provided by UNDP (Annex II);
• Personal CV, indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references.

Technical proposal:

• Brief description of why the individual considers him/herself as the most suitable for the assignment;
• A methodology, on how they will approach and complete the assignment;
• Financial proposal that indicates the all-inclusive fixed total contract price, supported by a breakdown of costs, as per template provided (Annex II);
• Annexes 1 and II - may be downloaded from the UNDP Procurement Notices Website -http://procurement-notices.undp.org/. For further clarifications, please contact; janet.anyango@undp.org; moses.lutwama@undp.org