SEFA Appraisal Report (SAR)

Africa Super ESCO Acceleration Program (ASAP)

Multinational

December 2022

i
 Table of Participants
Task Kevo Luc TOSSOU, Principal Energy Efficiency Specialist / Investment Officer, PERN2
Managers Dennis MUNUVE, Principal Renewable Energy Investment Specialist, PERN3/ SEFA
Project
Jalel CHABCHOUB, Chief Energy Efficiency Specialist / Investment Officer, PERN2
Team
1 Emmanuel MULIGIRWA, Environmental Officer, SNSC0
Members Nancy MUBIMA, Legal Consultant, PGCL1
Maiga SOUWEYE, Procurement Policy Officer, SNFI0
Sector Managers Monojeet Pal, PERN2
Joao Duarte CUNHA, PERN3
Yang LIU, Principal Research Economist, ECMR2
Peer Reviewers Adele BOADZO, Senior Energy Officer, PERN2
Thomas MICHOLITSCH, Green Mini-Grid Programme Officer Consultant, PERN3

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 Table of Contents
Acronyms ..................................................................................................................................................... iv
Results Logical Framework .......................................................................................................................... v
1 INTRODUCTION ................................................................................................................................ 7
1.1 Regional/country context and sector issues ...................................................................................... 7
1.2 Complementarity and coordination .................................................................................................. 7
2 PROJECT DESCRIPTION ................................................................................................................... 8
2.1 Project rationale ............................................................................................................................... 8
2.2 Project objectives .............................................................................................................................. 9
2.3 Project description ............................................................................................................................ 9
2.4 Project Components and Activities ................................................................................................... 9
2.5 Project Deliverables, Outputs and Sustainability ........................................................................... 13
2.6 Strategic Alignment ......................................................................................................................... 13
2.7 Cost Structure ................................................................................................................................. 14
2.8 Participatory process ...................................................................................................................... 14
2.9 SEFA experience, lessons reflected in project design ..................................................................... 15
2.10 Gender, Youth, Climate Change, E&S Impacts .............................................................................. 15
3 PROJECT IMPLEMENTATION ....................................................................................................... 16
3.1 Executing and Implementing Agency .............................................................................................. 16
3.2 Implementation schedule................................................................................................................. 17
3.3 Procurement Management Modalities ............................................................................................ 17
3.4 Risk Management ............................................................................................................................ 18
3.5 M&E, and Knowledge Development, and Communications ........................................................... 18
3.6 Legal instruments and authority ..................................................................................................... 18
4 CONCLUSIONS AND RECOMMENDATIONS ............................................................................. 18
ANNEX I: Description of the Super ESCO model ..................................................................................... 20
ANNEX II: Letters of Request for TA Support .......................................................................................... 22
ANNEX III: Environmental and Social Compliance Note (ESCON) ........................................................ 26
ANNEX IV: Detailed Implementation Schedule ........................................................................................ 27
ANNEX V: Risk Matrix ............................................................................................................................. 28

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 Acronyms

AEME Agence pour l'Economie et la Maîtrise de l'Energie (Senegal’s Agency for Energy Efficiency)
AFD Agence Française de Développement (French Development Agency)
AfDB African Development Bank
ASAP Africa Super ESCO Acceleration Program
DPWI Department of Public Works and Infrastructure
EBRD European Bank for Reconstruction and Development
EEEP ECOWAS Energy Efficiency Policy
EE Energy Efficiency
EnPC Energy Performance Contracting
ESCO Energy Service Companies
EU European Union
FONSIS Sovereign Fund for Strategic Investments
GGGI Global Green Growth Institute
GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German Agency for Technical
Cooperation)
KfW Kreditanstalt für Wiederaufbau (German Development Bank)
KPLC Kenya Power and Lighting Company
IEA International Energy Agency
IREREP Integrated Renewable Energy and Resource Efficiency Programme
MININFRA Ministry of Infrastructure
NDC Nationally Determined Contributions
PERN2 Energy Efficiency and Clean Cooking Division
REEESAP Renewable Energy and Energy Efficiency Strategy and Action Plan
RMC Regional Member Countries
RMF Bank’s Results Measurement Framework
SACREEE SADC regional Center for Renewable Energy and Energy Efficiency
SEFA Sustainable Energy Fund for Africa
SIE Société d’ingénieurie Energétique
TA Technical Assistance
TU Technical Unit
WB World Bank

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 Project summary: Africa Super ESCO Acceleration Program
Task Manager: Kevo Luc TOSSOU/Dennis MUNUVE/Jalel CHABCHOUB Grant Recipient: AfDB
Division: PERN.2 Grant Amount: USD 5,030,000
Project Summary
During the last decade, the business model of energy service companies (ESCOs) based on energy performance contracting (EnPC)
has been increasingly considered in different countries’ strategies for Energy Efficiency market development. An ESCO is an
organization that provides a full range of services to energy users to design and implement energy efficiency options. The services may
also include providing or arranging financing. Such services are provided by the ESCO using an EnPC approach under which the
payments from the energy user to the ESCO are contingent upon achieving certain pre-specified performance levels. The EnPC
approach is a form of financing capital improvement which allows funding energy efficiency upgrades from cost reductions. Despite
various efforts, the ESCO market in most African countries is still in its infancy because of various barriers. The Super ESCO model
addresses most ESCO uptake barriers. A Super ESCO is a specific dedicated organization (often set up as an independent company)
created and funded by a government (local or federal) to manage part or all a building EE retrofit program for its public-sector buildings,
Project such as offices, hospitals, schools and street lighting, etc., by implementing EE projects through the private ESCOs.
Description Building on the Regional Member Countries (RMCs)’ growing interest in the Super ESCO concept, there is an opportunity to put in
place the Africa Super ESCO Acceleration Program (ASAP), drawing on SEFA TA grant resources, to catalyze the development of
the EE market in the RMCs through the design and implementation of EE projects undertaken mainly by the private sector — thereby
creating a market for ESCOs and EnPCs. These RMCs include Burkina Faso, Côte d’Ivoire, Rwanda, Senegal, South Africa and
Uganda. The first phase of the ASAP will target up to three countries, notably Rwanda, Senegal, and South Africa (albeit retaining
room for flexibility). Burkina Faso, Côte d’Ivoire, and Uganda will be on a reserve list and, if necessary, be considered in a subsequent
phase of the ASAP. The ASAP comprises three pillars: (i) Pillar 1: Creating and operationalizing Super ESCOs in three selected
countries; (ii) Pillar 2: Developing harmonized regional certification schemes for ESCOs and energy service professionals; and (iii)
Pillar 3: Program management, including recruitment of a long-term consultant (hereafter, Program Officer) to support the Bank in
rolling out the ASAP.
The SEFA The ASAP is well-aligned with SEFA’s mandate to catalyze private sector investments in EE markets. The establishment of a Super
Alignment and ESCO in any economy creates an ‘Enabling Environment’ and a functioning market as basis on which the private sector can compete to
Role: develop and implement EE projects.
Cost Structure: The SEFA grant requested for the ASAP is estimated at USD 5.03 million.
The grant recipient will be the Bank, through the PERN2 Division, with support from relevant Bank departments and in close
Description of
collaboration with the participating Super ESCO teams and regional entity implementing the certification scheme of ESCOs and EE
Recipient:
professionals.
The Bank is the implementing agency of ASAP and will avail the relevant technical and administrative experts to support the
Bank’s Role:
implementation of the ASAP.
The ASAP will be entirely executed and implemented by the Bank through the EE team (PERN2), in collaboration with the SEFA TU
over a period of 36 months. PERN2 will recruit a Program Officer who will be responsible for the day-to-day management of the
Implementation
Program, the preparation and supervision of all procurement aspects, and monitoring of activities carried out by consulting firms that
Arrangements:
will be recruited to provide TA services. PERN 2 will also coordinate and work closely with participating stakeholders in the targeted
countries to ensure local ownership.
The proposed ASAP is aligned with the New Deal on Energy for Africa and the Bank’s Energy Sector Policy and will contribute to (i) the
Strategic development of partnerships to further energy efficiency; (ii) mobilizing domestic and international capital for innovative financing in
Alignment: Africa’s energy sector; (iii) increasing AfDB’s investments in energy and climate financing; and; (4) NDC targets by reducing energy
consumption.
The full establishment and operationalization of the Super ESCOs is estimated to lead1 to: a) in Rwanda: at least 40% reduction in
public sector electricity consumption, translating into 18 GWh savings per year. It is estimated that the annual CO2 mitigation potential
from just 74 large-scale public buildings operating in Kigali and six Secondary cities is approximately 6 000 tCO2e; b) in Senegal: i)
Development
reduced energy consumption of 101 GWh per year, ii) GHG emission reduction of 64,000 tCO2eq per year iii) annual mobilization of
Outcomes:
ca. 20 million USD of public and private investments for EE development; and c) in South Africa i) mobilization of ca. 11 million
USD of public and private investments for 20 EE projects, over five years; (ii) reduced emission of ca. 230,000 tCO2eq per year; and
iii) creation of an estimated 760 energy efficiency related jobs over 5 years.

1 Sources of data: Derived from Rwanda (GGGI project report); Senegal (Public sector EE retrofit plan), South Africa (Program concept note)
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 Results Logical Framework
A PROJECT INFORMATION
❚ COUNTRY/REGION: Multinational (Rwanda, Senegal, South
❚ PROJECT NAME AND SAP CODE: P-Z1-FZ0-033
Africa)
PROJECT DEVELOPMENT OBJECTIVE: Catalyze EE investments, through the establishment and operationalization of Super ESCOs, to improve efficiency and quality of
electricity supply and promotion of energy conservation, thereby contributing to NDC in respect to the Paris Agreement in stimulating transition to a more sustainable and
greener economy
ALIGNMENT INDICATOR (S): (i) Reduced GHG emissions (tons CO2 per year); (ii) Resources mobilized for financing for EE projects (USD million)
B RESULTS MATRIX
RMF UNIT OF BASELINE TARGET AT MEANS OF
RESULTS CHAIN AND INDICATOR DESCRIPTION
INDICATOR MEASUREMENT (Date) COMPLETION (Date) VERIFICATION
OUTCOME STATEMENT 1: Developed human, and organizational capacity to plan and implement EE projects
OUTCOME INDICATOR 1.1: Reduced GHG emissions under Million tCO2 eq over
☑ 0 (2022) 1.5 (2028)
the aegis of ASAP 5 years
50, of which 50%
OUTCOME INDICATOR 1.2: Resources mobilized for financing
☑ Total USD million 0 (2022) leveraged from the private Program reports
for EE projects in the public sector under the aegis of ASAP
sector (2025)
Number of jobs 3 800, 30% of which are
OUTCOME INDICATOR 1.3: Jobs created ☑ 0 (2022)
created women (2027)2
OUTCOME STATEMENT 2: Energy Efficiency services are enhanced through certification of ESCOs and EE professionals
5 schemes (1 for ESCOs;
OUTCOME INDICATOR 2.1: Harmonized certification schemes and 1 for each of the four
Number 0 (2022) Program reports
for ESCOs and EE professionals operational3 types of EE professionals
targeted by the project)
OUTPUT STATEMENT 1: An enabling environment created for the development and operationalization of the Super ESCO
Deliverables, project
OUTPUT INDICATOR 1.1: Business plan formulated developed progress and evaluation
Unit 0 (2022) 1 (Q1 2024)
and validated for each targeted country reports, supervision
mission, etc.
OUTPUT INDICATOR 1.2: Procedures and ESCO
engineering/business tools developed and established (marketing, Number 0 (2022) 6 (Q42024)
project planning, development and implementation, M&V,
monitoring, financial analysis)

2
Estimate based on a ratio of 76 energy efficiency jobs projected to result from an investment of 1 000 000 USD in energy efficiency projects in South Africa.
3
EE professionals refers to energy auditors, energy mangers, measurement and verification professionals and energy performance contracting professionals.
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OUTPUT INDICATOR 1.3: Developed and functional gender- Unit 0 (2022) 1 (Q4 2024)
responsive website for each targeted country
OUTPUT INDICATOR 1.4: Percentage of identified actors Percentage % (2022) 100% (2025)
trained
OUTPUT STATEMENT 2: An initial pipeline of bankable EE investment projects developed
Deliverables, project
OUTPUT INDICATOR 2.1: Energy audits carried out for progress and evaluation
Number 0(2022) >30 (2025)
development of bankable EE projects per targeted country reports, supervision
mission, etc.
OUTPUT INDICATOR 2.2: Number of pilot EE projects
Number 0(2022) 2 (2025)
implemented per targeted country
OUTPUT STATEMENT 3: Framework and process for a harmonized regional certification scheme for ESCOs and EE professionals
OUTPUT INDICATOR 3.1: Assessment report for existing
Number 0 (2022) 1 (2024) Project reports, project
national framework conditions
progress and evaluation
• 1 for ESCOs (2024)
OUTPUT INDICATOR 3.2: Developed harmonized regional reports, supervision
Number 0 (2022) • 1 for each type of EE
competency standards mission, etc.
professional (2024)
OUTPUT INDICATOR 3.3: Certification delivery process Number 0 (2022) 1 (2025)
developed
OUTPUT STATEMENT 4: Tools developed for the operationalization of the harmonized regional certification scheme
5 (1 guidebook for ESCOs, Project reports, project
OUTPUT INDICATOR 4.1: Standardized guidebooks for 1 for each type of EE progress and evaluation
Number 0 (2022)
certification examination for EE professionals professional covered by the reports, supervision
program) by 2025 mission, etc.
OUTPUT INDICATOR 4.2: Online registry and information
Number 0 (2022) 1 (2025)
sharing platform
OUTPUT INDICATOR 4.3: Number of trainers trained, of which Number 0 (2022) 95 (25%) (2025)
for women (%)

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1 INTRODUCTION
1.1 Regional/country context and sector issues
1.1.1 According to the International Energy Agency, Africa’s annual growth rate of
electricity demand during 2020-2030 is projected to be approximately 5.7% in the context of
the Sustainable Africa Scenario4. In response to the important role that energy efficiency (EE)
can play in managing the energy demand growth, increasing economic productivity as economies
grow and helping countries’ meet energy sector and emission reduction goals, as well as transition
to a green economy, regional member countries (RMCs) have developed regional and national
EE strategies and action plans.
1.1.2 African countries are increasingly referencing EE in their energy policy frameworks
and Nationally Determined Contributions (NDCs). Examples include the Southern Africa
Renewable Energy and Energy Efficiency Strategy and Action Plan (REEESAP) and the
ECOWAS Energy Efficiency Policy (EEEP) as well as the resulting national EE action plans
developed by the member countries of these regional economic communities for a greater uptake
of EE projects as well as mobilization of financial resources for EE development. These plans
support harmonized regulations and standards as well as increased private sector participation in the
design, implementation, and financing of EE investment projects across key energy consuming
sectors of the economy, particularly households, services, industries, transport and agriculture. They
also include capacity building of key market actors in the development, implementation,
maintenance, and evaluation of EE projects.
1.1.3 Given the nascent nature of EE markets, governments are expected to lead by example
by investing in EE retrofit programs in public buildings and infrastructure using the energy
service company (ESCO) and Energy Performance Contracting (EnPC) approaches and more
comprehensive schemes like Super ESCOs. A Super ESCO is an entity, designated by the
government, with the mandate to develop and implement energy efficiency (EE) projects mainly in
public facilities (e.g. offices, heath facilities, education facilities, street lighting, etc.) through an
EnPC approach which is a form of financing capital improvement that allows funding energy
efficiency upgrades from cost reductions.
1.2 Complementarity and coordination
1.2.1 Development finance institutions are investigating Super ESCO options for EE
market development in some African countries such as in Egypt by the German Agency for
Technical Cooperation (GIZ) and the World Bank (WB), and in Tunisia by the German
Development Bank (KfW). EBRD is preparing an ESCO market development platform that
includes Egypt, Tunisia, and Morocco while the WB is supporting ESCO market development in
South Africa, where the Department of Public Works and Infrastructure (DPWI) is working on a
Super ESCO approach. ASAP will complement and complete such ongoing activities by bringing
the needed support for their operationalization. Many other initiatives supported by AFD, WB,
KfW and the EC are ongoing to assess the potential for government buildings’ energy savings and
the implementation of pilot projects. These activities will create additional opportunities for
ASAP, while ensuring complementarity of results.

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2 PROJECT DESCRIPTION
2.1 Project rationale
2.1.1 ESCOs with EnPC are powerful tools that governments can draw on to leverage
private sector resources to improve energy efficiency of existing public facilities. ESCOs are
mostly private companies that can work with private and public sector clients. Unlike with private
sector clients, negotiations with public sector clients can be complex for ESCOs due to several
barriers, including: (i) borrowing restrictions of public entities and lack of finance or a budget for
such activities, (ii) public procurement rules that do not allow selection of the best economic value
over the asset lifetime but rather focus on the lowest upfront cost; (iii) separation of capital and
operating budgets, making it difficult to repay ESCOs based on savings in the operating budget;
and (iv) lack of trust and confidence among market stakeholders.
2.1.2 A Super ESCO approach has significant potential to address the limitations and
barriers hindering large scale implementation of ESCO projects. For example, to address the
barrier related to public procurement rules, the Super ESCO approach encourages the government
to review public procurement and budgeting rules to facilitate energy performance contracting in
the public sector. Establishing a certification scheme can also help to create a critical mass of
skilled and qualified ESCOs and EE professionals capable of providing high-quality services in
project identification, development, implementation, and evaluation, thereby improving end users
and financiers’ market confidence. See Annex I for more detail on the Super ESCO model.
2.1.3 Building on the RMCs’ growing interest in the Super ESCO concept, there is an
opportunity to put in place a Technical Assistance (TA) program to accelerate adoption of
this approach. The initial countries that have expressed their interest in the Bank’s TA support
for developing the Super ESCO concept include Burkina Faso, Côte d’Ivoire, Rwanda, Senegal,
South Africa and Uganda. The Bank is supporting studies to investigate the feasibility of Super
ESCO models in Burkina Faso and Côte d’Ivoire. The results of the study will feed into the design
of a TA for the development of the Super ESCO concept. The Government of Uganda, through the
Ministry of Energy and Mineral Development, has requested the Bank’s support for the design and
implementation of EE programs, including the creation and operationalization of a Super ESCO to
address barriers to EE improvement in Uganda. The engagement between the remaining countries
and the Bank are described in section 2.8.
2.1.4 The proposed project will allow RMCs to emulate successful international
experiences in establishing and operating Super ESCOs: Etihad ESCO in the United Arab
Emirates, EESL in India, HEP ESCO in Croatia, R2E2 Fund in Armenia, Tarshid in Saudi Arabia,
as well as other similar concepts in China and Philippines. These international experiences have
demonstrated that the utilization of Super ESCOs is one of the most effective instruments to help
governments tap into their public sectors’ energy efficiency potential and facilitate the
development of domestic energy efficiency services and private sector ESCOs.

4
The International Energy Agency’s Sustainable Africa Scenario envisages the full and timely achievement of all
African energy‐related development goals. This includes universal access to modern energy services by 2030 and
the full implementation of all African climate pledges.

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2.2 Project objectives
2.2.1 The Africa Super ESCO Acceleration Program (ASAP) is a TA program with the
overarching objective of catalyzing private sector investments in EE, through the
establishment and operationalization of Super ESCOs in three selected countries, to improve
efficiency and quality of electricity supply and promotion of energy conservation and stimulate
transition to more sustainable and greener economies. More specifically, it will assist in (i) setting-
up and building the capacity of Super ESCOs and (ii) address the lack of trust among market actors
to foster energy efficient economies in Africa.
2.3 Project description
2.3.1 The project will target Senegal, Rwanda, and South Africa as they have engaged with
the Bank and expressed interest in assistance to establish and operationalize Super ESCO
models. Noteworthy that these countries have already taken conducive actions, such as the Energy
Efficiency Strategic Plan in Rwanda, the National EE Action Plan in Senegal and the National
Energy Efficiency Strategy in South Africa. These actions support EE improvement targeting
public buildings and infrastructures as well as all other key energy consuming sectors.
Furthermore, EE standards and labelling targeting buildings and electric appliances and equipment
have already been developed and adopted in all three countries, though the level enforcement of
the standards is not the same across the countries. More detail is provided in section 2.8. The
program will retain room for flexibility in terms of final country selection, with countries such as
Burkina Faso, Côte d’Ivoire, and Uganda on a reserve list for consideration in a subsequent phase
of the ASAP. The future phases of ASAP will also be demand driven, with a key country selection
criterion being the existence of an entity, designated by the candidate participating country, to
operate as a super ESCO.
2.3.2 ASAP will develop in parallel a harmonized regional certification scheme for ESCOs
and EE professionals. Capacity building and the certification of EE service providers is a strong
pillar to support sustainable uptake of ESCO projects in Africa. Currently there is no regional
certification scheme for either EE or RE in most countries, but the private sector in some countries
(e.g., South Africa, Kenya, Uganda, etc.), has a certification program for energy management and
measurement, as well as verification protocol for energy savings.
2.4 Project Components and Activities
2.4.1 The ASAP comprises three pillars: (i) Creating and operationalizing Super ESCOs in three
countries; (ii) Developing harmonized regional certification Schemes for Energy Service
Companies (ESCOs) and individual EE professionals; and (iii) Program management.

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2.4.2 Pillar 1: Creating and operationalizing Super ESCOs in three countries. This pillar
will be demand driven, with the objective of assisting the beneficiary countries in structuring and
building the capacity of a designated entity which will operate as a Super ESCO targeting primarily
public sector buildings and infrastructure (and subsequently the private sector). In each country,
the implementation will be based on a standardized approach, with a view to ensuring
harmonization in program design and integrating lessons learned from the ongoing Super ESCO-
related TA in Kenya and Morocco (Lessons learnt are described in section 2.9) and therefore will
comprise the following activities: (i) Enabling environment for the development and
operationalization of the Super ESCO; and (ii) Developing an initial pipeline of EE investment
projects.

Activity Description

Activity 1: Enabling environment for the development and operationalization of the Super ESCO
Sub Activity 1.1: • Develop a business plan for the Super ESCO including notably market assessment,
Formulate a business pipeline development, implementation strategy.
plan • Assess the capacities of the Super ESCO and its partners, the potential market and
target market, the project development strategy including the development of a risk
map and the mitigation strategy.
• Analyze the management structure of the Super ESCO, its resources and needs and
develop a training and capacity building plan for its staff and clients as well as other
actors (private ESCOs, financial partners, etc.).
Sub-Activity 1.2: • Provide: (i) direct support for all Super ESCO day-to-day activities and
Hands-on capacity management; (ii) on the job and workshop training for staff and project partners;
building (iii) planning and coordination of external training services; (iv) support for EnPC
development, implementation and follow up; as well as (v) continuous risk
assessment for the Super ESCO projects and activities.
Sub-Activity 1.3: • Based on the training plan developed, create the necessary training material and
Organize fundamental organize training and capacity building sessions.
training for the Super • Plan and organize study trips for the Super ESCO staff to a selected country, where
ESCO, private ESCOs, the ESCO market is mature, to learn lessons from actors active in the
financial intermediaries implementation of EE projects.
and other key actors • Support the Super ESCO staff in acquiring energy audits, M&V and EnPC
certifications. These certifications will strengthen the credibility of the Super ESCO
towards its partners.
Sub-Activity 1.4: Set • Review existing internal processes and provide support for the implementation of
up internal processes updated internal processes, complying with international good practices and national
and procedures and regulations. These processes and procedures are related to: (i) project management;
develop planning and (ii) ESCO service procurement; (iii) administrative and accounting procedures; (iv)
management tools management of financial and operational risks, pricing, accounting and financing
reports; and (v) development, implementation and monitoring of projects and
services (technical and financial) for the benefit of its customers and partners, from
identification and prospecting to the measurement and verification of savings.
• Provide support in developing ESCO engineering/business tools for planning and
managing projects, loans, and EnPCs.
Sub-Activity 1.5: • Planning and organization of information dissemination sessions and awareness
Promote the programs for market players.
establishment of Super • Development of awareness material for the various actors including energy users.
ESCO and EE projects • Dissemination of information and lessons learned on the establishment and
by posting operationalization of the Super ESCO.

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 Activity Description
achievements and • Development of a gender responsive website dedicated to EE projects and the
information on the dissemination of information on savings and lessons learned, as well as the
website organization of dissemination workshops in collaboration with bilateral /
multilateral development agencies.

Activity 2: Developing an initial pipeline of EE investment projects

Sub-Activity 2.1: • Prepare and realize preliminary and detailed field energy audits across five sectors
Conduct energy audits to develop a pipeline of bankable EE projects.
• Assist the Super ESCO in negotiating with banks for loans / credit facilities and in
preparing and submitting grant request documents for donor approval.
Sub-Activity 2.2: • Review business models and then develop innovative / specific business models,
Develop innovative and based on international best practices, for clients across economic sectors, taking into
viable business models account the existing national legal, regulatory and policy conditions.
for the implementation
of EE projects
Sub-Activity 2.3: • Carry out a minimum of two EE projects, in order to set up standard documentation,
Support the competitive tools, procedures and procurement process and EnPC contracts.
procurement process
for at least two projects

2.4.3 Pillar 2: Developing harmonized regional certification schemes for Energy Service
Companies (ESCOs) and individual professionals. Similar to Pillar 1, the establishment of the
schemes will be demand driven, based on a first-come first-served principle, and focused on
regional economic communities. The regional scheme to be developed will build on existing
national requirements or initiatives and will be harmonized, based on a regional cooperation
approach, to facilitate scale up to the other countries in the targeted region. The adoption of the
regional certification scheme at the national level will reduce the cost for developing government
and utility energy efficiency programs and will build the necessary confidence among stakeholders
in the EE market and make it easier for end-users (facility owners) to identify a competent EE
service provider. Cost reduction and free movement of highly qualified ESCOs and EE individual
professionals (energy contractors) across borders are key incentives for countries to cooperate at a
regional level. The SADC Center for Renewable Energy and Energy Efficiency (SACREEE) and
the ECOWAS Center for Renewable Energy and Energy Efficiency (ECREEE) have already
contacted the Bank to explore the possibilities of tapping into TA grant resources to support the
development and implementation of such schemes. This pillar will be implemented through a
combination of studies, workshops, development of relevant tools and capacity building of
relevant actors for the implementation of the scheme.

Activity Description

# 1: Development of a framework and process for a harmonized regional certification scheme for ESCOs
and EE professionals
Sub Activity 1.1: Assess • Gap analysis of the current national framework conditions for developing EE
existing national framework service supply and for delivery mechanism of certifying/licensing
conditions to develop and contractors/practitioners. The lessons learned from the assessment will
maintain high-quality EE

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 Activity
service supply and existing
international best practices in
training and certification of
ESCOs and EE professionals
Sub-Activity 1.2: Develop
harmonized regional
competency standards based
on international best practices
Sub-Activity 1.3: Develop and
implement the necessary core
process for delivering the
regional certification of both
ESCOs and EE professionals
#2: Development of tools for the operationalization of the harmonized regional certification scheme
Sub-Activity 2.1: Develop
standardized guidebooks for
certification examination for
EE professionals
Sub-Activity 2.2: Build an
online registry and
information sharing platform
Sub-Activity 2.3: Training of
Trainers
# 3: Communication and Awareness Raising
Sub-Activity 3.1:
communication on Regional
Certification Program for
ESCOS and EE professionals
Description
inform the design and operation of the regional certification scheme and will
help set up specific recommendations for each of the targeted countries.
• Competency Standards define a range of levels of competency and the
capabilities that are assumed to be achieved at these levels. The output of this
activity will consider both lessons learned from the gap analysis conducted
under activity 1.1 and national, regional as well as international best practices
in terms of competency standards development for ESCOs and EE
professionals.
• Identification of key actors and stakeholders, description of their potential
roles and responsibilities as well as the assessment of needs and capacity
building. Examples of key actors are regional and national certification and
training entities that will be identified and confirmed for each of the targeted
countries.
• Development of a harmonized certification scheme process to facilitate cross
border mobility of ESCOs and EE professionals.
• Development of a specific action plan for implementation of the regional
certification scheme.
• The guidebooks will serve primarily as study material for the certification
examinations and also as a complete practical guide to energy auditing,
energy management, measurement and verification, and energy performance
contracting in institutional, commercial, and industrial facilities, thereby
providing, for example, support to energy professionals.
• Build an online registry of qualified/certified ESCOs and EE professionals,
with associated user’s manual and instructions as well as capacity building
workshops for, operating, and maintaining the registry. The registry will be
publicly available for countries, thereby enabling sharing of information on
qualified/certified ESCOs and EE professionals.
• Prepare and conduct the training of trainers (ToT) for the benefit and
participation of selected participants nominated by training entities which are
part of the certification scheme. A group of participants (engineers, scientists
and technicians) from RMCs will be invited by way of a call for proposals to
take part in the training program (Train the Trainers).
• Set up internal a web based- information and knowledge sharing mechanism.
The information and knowledge management platform will be supported by
an e-learning platform which will be used by trainers conduct further training
in EE and other subject matters.
• Direct engagement with stakeholders through meetings, workshops and as
well as online platforms to increase visibility and understanding of the
program and ensure stakeholder buy-in.
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2.4.4 Pillar 3: Program Management. Program Management includes activities of the Bank to
ensure delivery of the ASAP. The pillar includes the recruitment of a long-term consultant
(hereafter referred to as “Program Officer”) responsible for day-to-day administration of the
program over its duration.
2.5 Project Deliverables, Outputs and Sustainability
2.5.1 The outputs and deliverables of the components are highlighted in Table 1 below.
Table 1: Outputs and Deliverables of the TA

Component Output

Pillar 1: Creating and operationalizing Super ESCOs in the beneficiary countries

Enabling environment for • Super ESCO operationalization plan is formulated

the development and
operationalization of the
Super ESCO
• Internal procedures as well as ESCO engineering/business tools are developed
for the Super ESCO
• A website is developed for the Super ESCO activities in each participating
country
• Capacity buildings sessions held for the Super ESCOs and all other key EE
market actors

Developing an initial • Energy audits are carried out for development of bankable EE projects
pipeline of investments • At least two pilot EE projects implemented
Pillar 2: Developing harmonized regional certification Schemes for Energy Service Companies (ESCOs) and
individual energy service professionals
• Assessment of existing national framework conditions to develop and maintain
Development of a high-quality EE service supply and existing international best practices in
framework and process for a training and certification of ESCOs and EE professionals
harmonized regional
• Development of harmonized regional competency standards based on
certification scheme for
international best practices
ESCOs and EE
professionals • Development of the necessary core processes for delivering the regional
certification of both ESCOs and EE professionals

Development of tools for
the operationalization of the
harmonized regional
certification scheme
Communication and
Awareness Raising
• Development of standardized guidebooks for certification examination for EE
professionals
• Online registry and information sharing platform
• Training of Trainers
• Dissemination workshops and awareness raising meetings

Pillar 3: Program Management

Program management • Recruitment of a Program Officer

2.6 Strategic Alignment

2.6.1 The TA is well aligned with SEFA’s strategic framework where EE is one of the three
primary areas of intervention. SEFA’s goal is to support increased investment in EE by focusing
increasingly on programmatic approaches through public and private partnerships. One of the main

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implementation pillars of the SEFA EE strategy is the reinforcement of national-level EE markets
and programs, including the development and deployment of the Super ESCO approach which is
seen as a good solution to create a sustainable EE market in African countries, because the
principal role of Super ESCOs is to aggregate EE projects and drive down the transaction costs,
with the goal of increasing private sector interest.
2.6.2 The TA Program is also in line with the Bank’s High 5s and contributes to the “Light
up and Power Africa” and “Industrialize Africa” priorities. More specifically, it is aligned
with the New Deal on Energy for Africa and the Bank’s Energy Sector Policy and contributes to
the (i) establishment of transformative partnerships on energy for Africa, (ii) mobilization of
domestic and international capital for innovative financing in Africa’s energy sector, and (iii)
increasing the Bank’s investments in energy and climate financing. With regards to
industrialization, the proposed TA Program is in line with the industrialization strategy for Africa
2016 – 2025, adopted in 2016 to operationalize the Bank’s Industrialize Africa High 5, because
developing private ESCOs contributes to promoting enterprise development which is one of the
six flagship programs of the Bank’s industrialization strategy.
2.6.3 The TA will contribute to the achievement of the Sustainable Development Goals, in
particular 7, 8, 9 and 13 which are, respectively: (i) Ensure access to affordable, reliable,
sustainable and modern energy (one of the targets of Goal 7 is to double the global rate of
improvement in EE); (ii) Promote inclusive and sustainable economic growth, employment and
decent work for all; (iii) Build resilient infrastructure, promote sustainable industrialization and
foster innovation; and (iv) Take urgent action to combat climate change and its impacts. The
project will additionally support energy transition and low-carbon and climate resilient
development in the host countries, contribute to its NDCs in respect to the Paris Agreement.
2.7 Cost Structure
The total cost is USD 5.03 million, in addition to in-kind contribution of approximately USD
400 000 to support program implementation and management.
2.8 Participatory process
The initial targeted countries to be supported by ASAP have shown an interest in developing the
Super ESCO model by engaging with the Bank and requesting technical assistance in that regard.
Annex II presents the letters requesting the Bank’s support.
2.8.1 Senegal: the national agency in charge of energy efficiency (AEME), in partnership with
the Sovereign Fund for Strategic Investments (FONSIS SA), requested in 2021 TA support from
the Bank to establish and operationalize a Super ESCO that will support the implementation of the
EE retrofit plan for public sector buildings and infrastructures (developed in 2020) for which the
Government of Senegal has also requested the Bank’s financial support. The Bank has responded
favourably to the request as the TA could lead to the effective implementation of an existing and
concreate EE program. In June 2022, FONSIS and AEME signed a partnership agreement for the
establishment of Senegal’s Super ESCO. FONSIS experience in mobilizing resources from
international markets will be beneficial for the Super ESCO establishment with ASAP support.
2.8.2 South Africa: The Department of Public Works and Infrastructure (DPWI), with support

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from the National Treasury has launched the Integrated Renewable Energy and Resource
Efficiency Programme (iREREP), which is focused on public buildings and infrastructure. The
iREREP is implemented using a mechanism based on the Super ESCO model. DPWI’s advisors
have engaged with the Bank to seek TA and investment resources for the implementation of
iREREP.
2.8.3 Rwanda: The Ministry of Infrastructure has requested the Bank for TA for the
establishment and operationalization of a Super Energy Service Company (Super ESCO). The
Government of Rwanda, with the support of the Global Green Growth Institute (GGGI), is
conducting a detailed energy efficiency market study and institutional assessment in preparation
of the implementation of a Super ESCO facility. The result of the market study (expected in March
2023) will feed into the design of a TA project to establish and operationalize a Super ESCO – a
request to which the Bank has responded favourably.
2.9 SEFA experience, lessons reflected in project design
2.9.1 Lessons from two country-focused TA programs to set-up Super ESCOs have been
incorporated. The Bank is currently providing TA to support the structuring and capacity building
of the Société d’ingénieurie Energétique (SIE) and a dedicated team within Kenya Power and
Lighting Company (KPLC) to operate as the Super ESCOs in Morocco and Kenya, respectively.
The early lessons from implementation are related to: (i) delays in fulfilling the conditions
precedent and signing grant agreements, created in part by the lack of familiarity with the Bank’s
procurement rules; (ii) rigidity in the deployment of the funds created by the single-country focus.
These challenges have been reflected in the current design of the ASAP with the adoption of the
Bank-executed approach (simplifying implementation arrangements and allowing the Bank more
operational influence), and the regional approach, where resources can be reallocated between
countries on the basis of demand and readiness.
2.9.2 ASAP design also incorporates lessons from international successful experiences in
establishing and operating a Super ESCO. One key lesson is the importance of private sector
participation in the Super ESCO model design and implementation, an important design principle
of the ASAP. In fact, ASAP integrates activities that will serve as platforms for consultation and
engagement with private and public sector actors such as private ESCOs, commercial banks,
government entities, etc., to achieve its expected outputs and outcomes. Also, the established Super
ESCO will implement, and finance EE projects based on strong collaboration with private ESCOs
and financial institutions.
2.10 Gender, Youth, Climate Change, E&S Impacts
Environment and Social
2.10.1 Categorization: The Program is anticipated to pose low environmental and social risks
and impacts, resulting from the implementation of the planned activities. The activities are aimed
at providing technical assistance and support to catalyze energy efficiency investments, through
the establishment and operationalization of Super ESCOs; and to improve efficiency and quality
of electricity supply and promotion of energy conservation. The project’s environmental and social
risk classification is Category 3 (validated on 17th November 2022).

15
2.10.2 Disclosure of Assessments: The planned Program interventions and expected outcomes
are not expected to generate any environmental and social risks, and impacts of significance,
requiring the preparation of environmental and social assessments. Hence, no E&S assessments
were prepared or disclosed. Annex III has the ESCON.
2.10.3 Safeguards Capacity: The Bank, as the implementing agency of ASAP, will avail
technical and other experts, including E&S safeguards technical oversight, to support the
implementation of the ASAP components.
2.10.4 Safeguards Compliance: The project will be implemented in compliance with the Bank’s
ISS requirements as applicable. Based on the above, the project is ready for approval as per the
ISS requirements confirmed in the ESCON.
2.10.5 Involuntary Resettlement: The Program implementation will not result in involuntary
resettlement or displacement, whether physical or economic.
Gender and Youth
2.10.6 In the EE sector there is an acute shortage of female technical experts. The bottleneck is
from the science, technology, engineering, and mathematics (STEM) throughput of the training
institutions such as universities and colleges. EE professionals are seasoned practitioners with
STEM backgrounds and there are very few females with that background in most countries.
Hence, the training sessions to be implemented will be designed to be gender-sensitive and give
priority to women professionals to be capacitated. This will be monitored through sex-
disaggregated indicators and statistics across the various capacity-building activities.
2.10.7 The websites to be developed under the two pillars of ASAP will be gender responsive.
This will be done by using gender-responsive narrative and images/videos representing women
and men.
Climate change
2.10.8 The Program will not directly generate electricity nor build physical infrastructure. Hence
has relatively low vulnerability to climate change risks. The EE projects carried out by the Super
ESCO will help to reduce greenhouse gas emissions, by reducing energy consumption, and
therefore contribute to national and global efforts to fight change climate.
2.10.9 Care will be taken to ensure that the EE projects do not lead to the lock in of fossil fuel
technology or the extension of the lifetime of fossil fuel technology (for example captive gensets)
by enabling existing infrastructure to continue to meet demand when in the absence of the project,
it would have become uneconomic or inadequate. The Program also notes that some EE projects
might be suitable for the generation of Internationally Transferrable Mitigation Outcomes
(IMTOs) which could be sold under Article 6.2 of the Paris Agreement to raise additional finance
for EE investment.
3 PROJECT IMPLEMENTATION
3.1 Executing and Implementing Agency
3.1.1 AfDB will act as the implementing agency of ASAP on behalf of beneficiary countries.
The PERN2 Division will be responsible for the day-to-day program management, preparation and
supervision of all procurement aspects, and monitoring of activities carried out by consulting firms

16
that will be recruited to provide TA services. PERN2 will also coordinate and work closely with
all relevant stakeholders in the targeted countries to ensure local ownership.
3.1.2 PERN2 will oversee the overall execution and technical direction of the Program, with
a dedicated Task Manager assigned, to be supported by a “program officer” (long-term consultant)
and experts from the Bank’s wider ecosystem including legal, procurement, financial management,
disbursement and grant administration, and environment/social/ climate change. An additional
short-term expert (hereafter, the individual consultant) will be recruited to provide technical
support for the development ToRs and recruitment process of the consulting firm that will provide
the TA for operationalizing the Super ESCOs. More specifically, he or she will be responsible for
the development of ToRs and tender documents, bids’ evaluation, selection of successful bid and
contract negotiation. His or her mandate is over a six-month period and/or until the contract is
signed with the winning consulting firm. It is important to note that the individual consultant will
have a specific experience in the development and implementation of ESCOs/Super ESCOs
activities. The individual consultant’s intervention will be crucial for the selection of a well-
qualified consulting firm.
3.2 Implementation schedule
3.2.1 The implementation of ASAP is expected to take 36 months, from approval to closure, as
per diagram below. The detailed schedules are presented in Annex IV.
2023 2024 2025 2026
Activity
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
SEFA Appraisal Report Approval

Recruit the Program Officer

Recruit the individual consultant

Pillar 1: Create and operationalize
Super ESCOs in 3 selected countries
Pillar 2: Developing harmonized
regional certification Schemes for
ESCOs and individual professionals
Progress, monitoring and evaluation
reports
Program Completion Report

3.3 Procurement Management Modalities

3.3.1 Procurement Arrangement: ASAP will be executed by the Bank and the procurement of
consulting services will be carried out in accordance with the Bank’s Presidential Directive
07/2022 concerning the procedures for the acquisition of consulting services funded by the
administrative or capital expenditure budget of the Bank Group dated 25 June 2022 as well as the
Delegation of Authority Matrix 2022 issued by Presidential Directive No. 03/2022, as they may
be amended from time to time. All procurement activities to be undertaken through the project will
relate to the acquisition of consulting services.
3.3.2 Disbursement Modalities: Disbursements from SEFA will follow the Bank’s rules and
procedures applicable to Bank-executed activities.
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3.4 Risk Management
3.4.1 An assessment of sector and program risks is provided in Annex V.
3.5 M&E, and Knowledge Development, and Communications
3.5.1 Monitoring and evaluation arrangements. ASAP’s implementation progress and impact
will be the overall responsibility of the Bank. The M&E Plan includes regular supervision reviews
(at least once a year), and a project mid-term review carried out approximately 18 months after
project approval by the Board of Directors. These supervision reviews, led by the PERN.2, will
benefit from the participation of country offices and beneficiary entities and thus leverage the
Bank’s local presence in the field. Within six months of the completion of the project, the Bank
will prepare the Project Completion Report (PCR).
3.5.2 Knowledge Development Arrangements. Knowledge products created through the
ASAP will follow normal Bank processes for review and approval. This includes case studies on
implemented EE projects, and specialized publications about ESCO activities and projects created
under pillar 1 as well as the standardized guidebooks for certification examination for EE
professionals, and capacity building materials developed under pillar 2. These materials will be
disseminated through the developed websites and other channels for the benefits of various EE
market stakeholders.
3.5.3 Communications Arrangements. All the recruited firms will be required to share photos,
videos, articles, and other high-quality media with clear references to the AfDB and SEFA, in line
with Bank and SEFA communications guidelines. Marketing and communication activities that
are supported under Pillar 1 include budget for copywriting and editing, translation, graphic
design, event coordination, and other communications services. A communication plan will be
finalised once target countries and service providers are identified.
3.6 Legal instruments and authority
3.6.1 As the project is Bank-executed, no legal agreement is required. However, in some cases,
it may be necessary to execute a Project Implementation Agreement between the Bank and the
Beneficiary/Government, setting out the obligations and responsibilities of each Party. This will
be determined on case-by-case basis, depending on the specific nature of activities to be
implemented, especially in cases where the Beneficiary/Government is required to set up structures
or make counterpart contribution to facilitate smooth project implementation.
4 CONCLUSIONS AND RECOMMENDATIONS
4.1.1 The ASAP is a three-year pan-African TA initiative with the overarching objective of
catalyzing private investments in EE, through the establishment and operationalization of Super
ESCOs, to improve efficiency and quality of electricity supply, and promotion of energy
conservation. More specifically, it will assist in structuring and building the capacity of Super
ESCOs and address the lack of the necessary skills to foster energy efficient economies in Africa.
ASAP is delivered across three Pillars: (i) Pillar 1: Creating and operationalizing Super ESCOs in
three selected countries; (ii) Pillar 2: Developing harmonized regional certification Schemes for
Energy Service Companies (ESCOs) and individual energy service professionals; and (iii)

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Program Management, to ensure smooth implementation. ASAP builds on prior SEFA-funded TA
projects supporting Super ESCO establishment in Kenya and Morocco and is informed by lessons
learnt from similar initiatives in other continents.
4.1.2 ASAP has been developed to pave the way for Bank financing at scale in energy
efficiency and complement on-going Bank efforts across RMCs to accelerate transition to a
green economy. Once fully operational, the projects implementation by the established Super
ESCOs are expected to lead to: a) in Rwanda: at least 40%reduction in public sector electricity
consumption, translating into 18 GWh savings per year, and the associated reduction in operating
costs thereby reducing GHG emissions. It is estimated that annual CO2 mitigation potential from
just 74 large-scale public buildings operating in Kigali and six Secondary cities is approximately
6 000 tCO2e; b) in Senegal: i) reduced energy consumption of 101 GWh per year, ii) GHG
emission reduction of 64,000 tCO2eq per year iii) annual mobilization of ca. 20 million USD of
public and private investments for EE development, over ten years; and c) in South Africa i)
mobilization of ca. 11 million USD of public and private investments for 20 EE projects, over five
years; (ii) reduced emission of ca. 230 000 tCO2eq per year; and iii) creation of an estimated 760
energy efficiency related jobs over 5 years.
4.1.3 Based on the above, Management recommends that the Board of Directors approve the
proposed SEFA Technical Assistance grant of USD 5.03 million to the Bank, subject to the scope,
terms and conditions contained in this document.

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ANNEX I: Description of the Super ESCO model
How does the Super ESCO Model work?
As shown in the Figure below, the Super ESCO signs ESCO-contracts with the public institutions,
promising to reduce their annual energy costs, including the ESCO service fee, below their present
costs. Then, it contracts private ESCOs to implement the required EE investments and performs
annual energy management at the beneficiary institutions during the duration of the ESCO
contract.

Figure 1: Typical Set-up of the Super ESCO Model5

The concentration of knowhow in one institution in technical EE, financial structuring, and legal
ESCO contracting addresses the lack of EE knowledge in public organizations and creates trust in
the value of recommended EE investments. The Super ESCO aggregates individual EE
investments into larger investment programs to generate economies of scale for private ESCOs
and collaborating Financial Institutions (FIs). This attracts more competitive bids from private
ESCOs and can motivate FIs to focus on EE finance opportunities.

How does the Super ESCO Model Address Barriers?

Barrier How does the Super ESCO model address the barrier
Restrictive procurement, • Encourages the government to amend public procurement and budgeting
contracting and financial rules to facilitate energy performance contracting in the public sector.
rules for the government
sector

5 Source: Global ESCO Network, 2022

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Lack of governments • By essence, supports the public sector to enter an EnPC scheme and
commitment to lead by guarantee specific energy savings, notably for buildings or street lighting
example over a set period, thereby supporting the public sector to have a catalytic
effect on local markets by demonstrating good behavior to the private
sector and the general public.
Lack of technical • Mobilizes the required technical skills and expertise to identify, design,
capacity for audits, procure and supervise EE projects.
project design,
procurement, and
supervision of EE
projects
Lack of financing • Arranges access to financing and risk sharing facilities.
mechanisms for EE
projects
Lack of market • Facilitates projects aggregation to make energy efficiency financing more
incentives for EE&RE attractive, procures large volumes of energy efficient devices and
solution providers equipment, and consequently, bring about a rapid reduction in prices,
making the energy efficiency measures more cost-efficient.
High perceived risk • Offers energy performance-based contracts to its projects’ beneficiaries in
the public and private sectors, with measurement and verification of energy
savings as per approved methodologies.
Lack of Market • Builds capacities of local experts and firms to offer EnPC and converts a
facilitators part or full activity as ESCO.
• Standardizes technical specifications and transaction templates and tools to
reduce the perceived risk of working with ESCOs.

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ANNEX II: Letters of Request for TA Support

22
23
24
25
ANNEX III: Environmental and Social Compliance Note (ESCON)

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ANNEX IV: Detailed Implementation Schedule
2023 2024 2025 2026
Activity
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
SEFA Report Approval
Recruit a long-term consultant responsible for day-to-day
administration of ASAP
Recruit individual consultants for the Super ESCO TA to develop
and finalize ToRs for recruitment of firms
Pillar 1: Creating and operationalizing Super ESCOs in three
targeted countries
Creating an enabling environment for the development and
operationalization of the Super ESCO
Developing an initial pipeline of investments
Implementation of two EE pilot projects in each country
Pillar 2: Developing harmonized regional certification Schemes for
Energy Service Companies (ESCOs) and individual energy service
professionals
Development of a framework and process for a harmonized regional
certification scheme for ESCOs and EE professionals
Development of tools for the operationalization of the harmonized
regional certification scheme
Communication and Awareness Raising
Pillar 3: Program Management
Progress, monitoring and evaluation reports
Program Completion Report

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 ANNEX V: Risk Matrix
Type of Description of Risk Mitigant
Risk

Government Lack of interest in implementing One of the first task of this TA is to establish a Business Plan
Ownership EE programs for the Super ESCO. Government approval will be secured for
the Business Plan and adjusted based on Government priorities
for targeted sectors, projects size and investments and SUPER
ESCO evolution.

Government Lack of capacity and ownership • Awareness and training campaigns will be conducted for
Institution’s from the government institutions O&M staff for targeted sectors with promotion of
involvement successful projects for highly efficient equipment and
operation optimizations.
• Close follow up on savings achievement for first projects
and support to interested institutions for opportunities
assessment.
• Bank execution adopted for the ASAP proposal

Private Limited interest from service Put in place training for energy-related services providers to
ESCO providers to be involved in ESCO support them convert a part of their activities to ESCO.
participation business Dedicated training will be provided to first ESCOs including
hands on training for first projects, while implementing under
the accreditation scheme a dedicated training covering all
ESCO technical and financial specificities and operations
requirements.

Savings Unreliable savings estimation Measurement and Verification (M&V) plan for savings
estimations estimation and verification will be development and agreed
with the institution before projects implementation. The M&V
will be developed by ESCOs according to the International
Performance Measurement and Verification Protocol (IPMVP)
adopted as the reference for ESCOs business.

ESCO Service providers will not meet Early ESCO certification will consider the countries energy
Certification ESCO certification requirements services providers experience, skills, and capacities for EE
projects development and implementation. Later on, capacity
building and certification program will be adjusted based on
gained technical and financial knowledges, implemented
projects, involved ESCOs and progress make in the ESCO
market.

Financial Reliability of payment from Investigate other payment/ guarantee options to Super
Risk government institutions ESCO/ESCOs from supervisory ministries

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