Vanuatu: Consultant for Energy Efficiency Upscaling, Fiscal Reforms (National)
The Global Green Growth Institute (GGGI) was established as an intergovernmental organization with the objective of promoting sustainable development of developing and emerging countries including the least developed countries. GGGI is dedicated to supporting the creation and diffusion of the model of economic growth known as “green growth”. The green growth model integrates economic growth, environmental sustainability, poverty reduction and social inclusion.
Vanuatu is a small island developing state (SIDS) with an estimated population of 300,019 people. The country is committed to formulating strategies, national policies, and best practices for addressing GHG emissions and making a practical contribution to the global mitigation efforts. In its Nationally Determined Contributions (NDC), Vanuatu’s planned mitigation intervention includes broad renewable energy (RE) and energy efficiency (EE) measures to enable 15% savings in the energy sector. This will result in GHG emission reductions of around 30 ktCO2e/year.
In 2016, the Government of Vanuatu (GoV) developed a 15-year energy demand projection for Vanuatu using a business-as-usual approach. The study concluded that energy demand in Vanuatu could more than double between 2015 and 2030. This growth is expected to be driven largely by commercial and industrial sectors, followed by residential uptake. The report further estimated that by 2030, almost 54,000 households will receive electricity compared to 17,500 in 2015. As grid expansion projects result in more households getting connected, energy security will be impacted.
The absence of a robust and conducive regulatory framework including policies, laws, regulations, and standards in the past, has allowed an uncontrollable influx of inefficient and low-priced appliances and products into the country. Consequently, consumers buy more of the cheaper but inefficient products than the highly efficient ones which are more expensive in the long run. A detailed EE survey conducted back in 2013 indicated that only 43% of urban households had refrigerators, most of which did not have EE rating labels, and most households’ lighting products, and those used in public offices and businesses, did not meet EE standards. This culminated with the introduction of the Energy Efficiency of Electrical Appliances, Equipment and Lighting Products Act in 2016. The introduction of this legislation subsequently resulted in tighter controls on importation of refrigerants and lighting products into the country.
The tender to develop the National Energy Efficiency Strategy and Action Plan (NEESAP) for Vanuatu including the development of the Enforcement Assessment report is work in progress and is expected to be undertaken concurrently with this assignment. The NEESAP will be the guiding document for Vanuatu to achieve its energy efficiency aspirations and contribute to achieving the EE targets in the National Energy Roadmap (NERM), NDC and the National Sustainable Development Plan (NSDP).
Further to the development of the NEESAP, the development of the On-Bill Financing (OBF) guide for Vanuatu is also underway. It has the objective of increasing the uptake of high EE appliances by offering customers access to finance to meet upfront capital needs for EE products and contributing to the achievement of the national sustainable energy targets.
Nevertheless, more action is needed to enhance the uptake of EE products nationally. Domestic prices for EE products tend to be relatively higher than those of some of the neighboring Pacific Island countries, and this is attributed largely by costs relating to distance from market, coupled with government taxes.
OBJECTIVES OF THE ASSIGNMENT
The purpose of the assignment is to provide local support to the development of an assessment report on fiscal reforms and tax incentives including broader economic instruments to support the upscale of energy efficiency investments in Vanuatu in line with the updated NERM and the NDC.Project: Consultancy Support to Undertake Assessments on Fiscal Reforms and Incentives to Promote Energy Efficiency Upscaling in Vanuatu Duty Station: Port Vila, Vanuatu Contract Duration: 3 Months (possibly June to September 2022) Consultant Level: Level 4 Total Fees: USD 12,000
SCOPE OF WORK
The local consultant is expected to support the international consultant (recruited by GGGI) to undertake the following tasks:Project Management.
Take the lead in organizing the inception meeting with key stakeholders in the country in particular Director General of the Ministry of Climate Change, Director of Energy Department, Director of Customs and Inland Revenue, NGEF Manager and Director of Finance Department. The inception meeting is to agree on the workplan, methodology and proposed deliverables of the assignment.
Consultations with Key Stakeholders
The local consultant is to take the lead in drawing up a list of national stakeholders (in consultation with GoV and the international consultant) and arrange and confirm one-to-one consultation meeting appointments. Participate in one-to-one meetings and workshops with key stakeholders. The key stakeholders shall include i) National Green Energy Fund (NGEF) ii) key government agencies (Prime Minister’s office, Ministry of Finance and Economic Management, Department of Customs and Inland Revenue, Department of Energy (DoE), Department of Climate Change, etc., iii) Vanuatu Chamber of Commerce and Industry iv) Power Utility Companies (UNELCO and VUI) and the Utility Regulatory Authority (URA) v) high energy consumers including resorts and hotels, manufacturing industries, hospitals, schools, and vi) importers and retailers of electrical appliances and equipment.
After completion of the data gathering and assessment phase, take lead in organising the validation workshop with stakeholders to discuss the outcome of the assessment on the fiscal instruments and broader economic instruments to support greater uptake of EE products in Vanuatu. Tasks shall include drafting of invitation letters, arrangements for venue, catering, registration sheets and other logistical support.
Analysis of policies in Vanuatu
Support the international consultant in collating relevant data for the baseline/needs assessment and providing review and inputs to the work of the international consultant who is undertaking the analysis of the economic instruments for EE and policy settings. The local consultant will contribute to the case studies of economic regulation to support purchase of EE appliances and equipment. The outcome of the policy settings review will be presented in SWOT (strength, weakness, opportunities and threats) format. The local consultant is to contribute to the key recommendations from the policy analysis outcome.
Development of the Fiscal Reform Assessment and Incentive Report
The local consultant is expected to work alongside the international consultant to support the actual drafting of the Fiscal Reform Assessment and Incentive Report. He or She is to provide relevant and timely inputs to the report. The local consultant will ensure that all the necessary and appropriate information are available to the international consultant to formulate the fiscal reforms and incentives in EE.
Submission paper for the NDA and COM approval.
The local consultant is expected to collaborate with the International Consultant to develop the submission paper (template to be supplied by the National Advisory Board on Climate Change (NAB)) for consideration and approval of the National Designated Authority (NDA) of the Green Climate Fund. Similarly, he or she will support and contribute to the development of the Council of Minister’s paper (template to be supplied by the DoE) for the endorsement of the fiscal reform assessment and tax incentive report. The local consultant is to avail his time when necessary to brief the NDA on the submission papers.
DELIVERABLES AND PAYMENT SCHEDULE
The international consultant will be allocated 30 working days to complete the assignment. Work must commence immediately after contract signing and will be spread over three (3) months. The following work schedule is proposed only:
KPIs for each deliverable
Payment terms (% of contract price)
Project Management - Project start up including Planning, organization, and logistical support of the Inception Meeting
- Draft inception report
- List of inception workshop participants (gender disaggregated)
- Inception report
- Signed participation list, meeting venue and catering confirmed by vendor and accepted by GGGI one week before workshop
Collation of data and arrange one-to-one consultation meetings with at least 6 key stakeholders from each of the following:
- Department of Energy
- Department of Customs and Inland Revenue
- Department of Finance and Treasury
- Private Sector (retailers and wholesalers of EE appliances)
- Power Utility (Unelco and/or VUI)
- Electricity Regulator
- Comprehensive list of stakeholders (gender disaggregated) and minutes of stakeholder interviews
- Comprehensive list of stakeholders and minutes of stakeholder interviews submitted within 4 weeks after contract signing
Policy Analysis – support review of economic instruments and policy settings to support EE uptake
- Economic instrument descriptions and case studies
- Review and SWOT analysis
- Draft recommendations
- SWOT analysis delivered and approved by GGGI within 7 weeks after project signing
Support development of fiscal reform assessments and incentive report
- Draft Fiscal Reform Assessment and Tax Incentive Report
- Draft Fiscal Reform Assessment and Tax Incentive Report submitted within 9 weeks after contract signing
Planning and organizing the Validation Workshop
- List of validation workshop participants (gender disaggregated)
- Validation Workshop report
- List of participants and workshop report submitted within 10 weeks after validation workshop
Support in finalizing the report on Fiscal Assessment and Tax Incentives Measures to promote EE in Vanuatu
- Final Assessment Report on Fiscal Reforms and Tax Incentives to promote use of EE appliances
- Final Assessment Report on Fiscal Reform and Tax Incentives submitted and approved by GGGI within 12 weeks after contract signing
Support the submission paper for NDA and COM
- Completed Submission paper for NDA Endorsement
- Completed Submission paper for COM endorsement
- NDA paper and COM paper submitted and accepted by GGGI within 12 weeks after contract signing.
All reports and outputs must be in English, in accordance with GGGI’s formatting requirements, and submitted in hard copy and electronic formats along with complete sets of raw data, research materials, and interview notes.
This project is expected to be completed within 3 months (12 weeks) of contract signing with a tentative timetable as follows:Submission of Inception Report within two weeks (of project signing) Submission of list of stakeholders (gender disaggregated) and minutes of stakeholder interviews within 4 weeks Submission of Policy Analysis report within 7 weeks Submission of Draft Fiscal Reform Assessment and Tax Incentive Report within 9 weeks Submission of Validation Workshop Report including list of participants within 10 weeks Submission of Final Assessment Report on Fiscal Reforms and Tax Incentives within 12 weeks Submission of NDA paper and COM’s paper within 12 weeks.
REPORTING ARRANGEMENTSThe consultant is expected to work under the general guidance of the Senior Officer – GGGI Vanuatu, lead international consultant and in close collaboration with the Director of the DoE. All developed products under this assignment (incl. raw files and editable forms) will become property of DoE and GGGI. The Consultant shall submit the Final Report which should reflect the outcome of all activities prepared by the consultant. All relevant technical papers, reports, and other documents prepared from the start to the end of the assignment shall be attached to the Final Report. The Consultant shall submit the report in electronic versions readable by a Microsoft Office application. All outputs must be in English. Final report must be approved by the GGGI with the agreement of the Vanuatu Ministry of Climate Change. The Consultant shall consider the comments and necessary revisions proposed. Within 14 days from the receipt of the comments or modification proposal from the GGGI, the Consultant shall prepare and submit the final versions of the report.
The local consultant must meet the following competency requirements:
A. A minimum of an undergraduate degree or equivalent in Engineering, Finance, Economics, International Development, Business Administration, Strategic Management, or any other related field
B. A minimum of 3 years’ experience in similar assignments particularly in the areas of EE&RE financing
C. A minimum of 5 years’ experience in planning and organizing meetings and workshops either face to face or virtually through the internet of things.
D. Strong problem-solving communication, research and writing skills with a proven ability to write analytical reports
E. Strong interpersonal skills and the ability to work effectively within a team and independently.
F. Experience in working with multi-lateral agencies or international development organizations is an added advantage
G. A demonstrated working knowledge of Vanuatu’s energy and finance sector
H. Immediate availability of the contractor
A prospective local consultant should submit in English only her/his proposal and with an attached CV detailing her/his qualifications and experience and its relevance to the assignment. The proposal should also outline her/his approach and methodology in achieving the desired assignment outcome.
Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.
Child protection – GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child.