Ministry of Industry, Mines and Energy Cambodia Ministry for Foreign Affairs Finland

Capacity Development for Energy Balance Construction and Sustainable Energy Planning in Cambodia

Project Document April 27, 2011

Table of Contents PROJECT FACT SHEET EXECUTIVE SUMMARY 1 2

2.1 2.2 2.3 2.4 2.5 2.6 2.6.1 2.6.2 2.6.3 2.6.4

6 7 11 13
13 14 16 17 17 18 19 20 21 22

BACKGROUND DEFINITION OF INTERVENTION

Problem Analysis Project Approach Overall Objectives Project Purpose Project Components Results, Achievement Indicators and Activities Component 0: Project Management Component 1: Establishment of Energy Information System and Database Component 2: Capacity Building for Energy Modelling Component 3: Capacity Building for Energy Planning

3 4
4.1 4.1.1 4.1.2 4.1.3 4.2

ASSUMPTIONS AND RISKS COMPATIBILITY AND SUSTAINABILITY

Compatibility Finnish Development Policy National Strategic Development Plan and Energy Sector Development Statistics Law Sustainability

24 26
26 26 28 29 30

5
5.1 5.2 5.2.1 5.2.2 5.3 5.4 5.4.1 5.4.2 5.4.3 5.4.4 5.5
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IMPLEMENTATION
Implementation Strategy Data Collection Demand side data collection Supply side data collection and energy import statistics Capacity Development and Training Project Organization Energy Statistics Office, Energy Modelling Unit and Project Management Unit Steering Committee Technical Assistance National Annual Workshop for Policy Planners Data Collection Working Group
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31
31 31 31 34 36 38 38 40 41 42 43

5.5.1 5.5.2

Time Schedule Budget

43 45

6
6.1 6.2

MONITORING AND EVALUATION

Monitoring Evaluation

46
47 47

ANNEX 1: PRESENT SITUATION: ENERGY SECTOR IN CAMBODIA ANNEX 2: TERMS OF REFERENCE OF EXPERTS ANNEX 3: JOB DESCRIPTIONS ANNEX 4: LOGICAL FRAMEWORK ANNEX 5: PROJECT ACTIVITIES ANNEX 6: PROJECT TIME SCHEDULE

49 63 66 71 78 85

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List of Abbreviations
ADB ACE ASEAN CDC CDI CNPA CTA DEDE DIME EAC EBC EdC EIS EMU EPPO ESO FAO GDP GERES HEI ICI ICT IEA ITC IPP JICA MAFF MEF MFA MIME MoP MRD MPWT NCDD NIS Asian Development Bank ASEAN Center for Energy Association of Southeast Asian Nations Council of Development of Cambodia Cambodian Development Institute Cambodian National Petroleum Authority Chief Technical Advisor Department for Alternative Energy Development and Efficiency of Thailand Provincial Departments of Industry, Mines and Energy Electricity Authority of Cambodia Energy Balance of Cambodia Electricity du Cambodge Energy information system Energy Modeling Unit Energy Policy and Planning Office of Thailand Energy Statistics Office Food and Agriculture Organization of the United Nations Gross Domestic Product Groupe Energies Renouvelables, Environnement et Solidarits (French non-profit NGO) Higher Education Institutions Institutional Cooperation Instrument Information and Communication Technology International Energy Agency Institute of Technology Cambodia Independent power producer Japan International Cooperation Agency Ministry of Agriculture, Fishery and Forestry Ministry of Economy and Finance Ministry for Foreign Affairs of Finland Ministry of Industry, Mines and Energy Ministry of Planning Ministry of Rural Development Ministry of Public Works and Transport National Committee for Sub-National Democratic Development National Institute of Statistics

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ONEBC

Overall National Energy Balance of Cambodia

PMU PO RGC REE SC SIDA TA TOR UNFCCC UNDP WB

Project Management Unit Project officer Royal Government of Cambodia Rural Electricity Enterprise Steering Committee Swedish International Development Cooperation Agency Technical Assistance Terms of Reference United Nations Framework Convention on Climate Change United Nations Development Program The World Bank

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Project Fact Sheet

Project Title Sector Sub-Sectors Geographical Coverage Duration: Project Financing Capacity Building for the Energy Balance Construction and Sustainable Energy Planning in Cambodia Energy Energy Statistics, Renewable Energy, Energy Planning, Power Sector Planning, Climate Change Mitigation. Cambodia (national level) 2011 - 2015 (four years) Total Royal Government of Cambodia in kind contribution, approximately 10% of the total budget (salary of staff, office, electricity and water) Government of Finland EUR 2.3million 1 EUR = 5,683 Cambodia Riels KHR (25 March, 2011) Competent Authorities Institutional Framework Ministry of Industry, Mines and Energy General Department of Energy Steering Committee Project Management Unit embedded in General Department of Energy, MIME Overall Objective The overall objective is to contribute to planning and implementing of Cambodian climate change policy and programmes through development of sustainable energy data and planning system which promotes inclusive growth and responds to poverty reduction and sustainable development goals of Cambodia To strengthen MIME to be sustainable and capable of employing advanced techniques, methodologies and modeling tools in: establishing and managing energy information system drawing up plans for energy sector development and climate change mitigation and adaptation interventions prioritizing energy sector and climate change mitigation investments mainstreaming of gender and poverty in energy planning..

Purpose

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Executive Summary
Background Energy services in Cambodia are inadequate and costly (electricity tariff rates are one of the highest in Southeast Asia) with electricity supply systems dominantly fossil fuelbased which contributes to the emissions of local pollutants and greenhouse gases. These are symptomatic to the existence of significant barriers that hinder the development of sustainable energy supply systems in the country. The lack of adequate training and capacity building to carry out comprehensive planning, as well as lack of information, are identified as the main contributing factors to the current circumstances of the energy sector in Cambodia. The Ministry of Industry, Mines and Energy (MIME) requested the Finnish Government for support in developing its capacity on energy statistics, energy balance and planning. Problem to be addressed Biomass will be the dominant energy resource in Cambodia for the short and medium term, and therefore it is essential to recognize the contribution of wood energy in the energy balance and to plan for a continued and sustainable supply. This is particularly pertinent given the disparity in fuel wood resources within and between provinces, and the significant impact that the lack of access to biomass has on the poor. Also overall energy and electricity services in Cambodia are inadequate and expensive with supply systems highly vulnerable to external disruptions and fluctuations of international energy prices and increasingly contributing to local environmental pollution and greenhouse gas emissions. These are the results of an electricity supply system which is highly fragmented, less extensive (mainly providing services in large urban centres) and highly dependent on imported fossil fuels. The lack of energy services particularly those in rural areas and unaffordable energy services in urban areas could undermine economic growth and sustainable development of the country. Project approach The overall project approach can be described as follows: first the project focuses on the role of MIME in the National Statistics System by strengthening the capacity of MIMEs Energy Statistics Office, and second, on the role of MIME in the National Energy Planning by strengthening the capacity of MIMEs Energy Modelling Unit. Project is based on the assumption that energy planning should serve the overall socioeconomic development planning and not function as a separate entity. The inclusion of socio-economic and environmental aspects in the energy planning requires information of the interlinkages of these activities and sectors. For energy balance construction both supply and demand side data is needed, and data collection methods will cover both bottom-up and top-down approaches. Objectives and components The overall project objective is to contribute to planning and implementing of Cambodian climate change policy and programmes through development of sustainable energy data and planning system which promotes inclusive growth and responds to poverty reduction and sustainable development goals of Cambodia.. The project purpose is to strengthen MIME to be sustainable and capable of employing advanced techniques, methodologies and modeling tools in:
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Establishing and managing energy information system, Drawing up scenarios and plans for energy sector development, and for climate change mitigation and adaptation interventions, Prioritizing energy sector and climate change mitigation activities, and Mainstreaming of gender and poverty in energy planning. To achieve the objectives and purpose, the projects activities and outputs are organized into four project components. These are the following: Component 0: Project Management Component 1: Establishment of Energy Information System and Database Component 2: Capacity-building for Energy Modelling Component 3: Capacity-building for Energy Planning Coherence, compatibility and sustainability This project is consistent and compatible with the principles pursued by the Finnish Development Cooperation. While project activities are very specific and related to energy information and planning, the overarching goal of the project is the development of a sustainable energy supply system which is sensitive to developmental, energy security, climate change and energy access goals of the country. With the energy information and energy sector development plans, RGC can make decisions and prioritized investments on sustainable energy systems that enhance energy access, mitigate climate change and fuel economic development of the country. With detailed energy sector information, RGC could also prioritize energy sector investments and development that promotes gender and social cohesion and equality as well as mainstream gender in the energy sector. In addition, the project is not only compatible with the development principles of RGC but also complements and supports the achievement of the energy sector policy and rural electrification strategies contributing to the overall developmental goals of the National Strategic Development Plan. Energy information and plans will be used by RGC to prioritize energy investments that achieve and optimize developmental benefits from improving energy access to stimulating rural development, protecting the environment and promoting gender equality. Similarly, energy sector information and plans will provide the private sector the basis for making decisions to invest in energy sector development. The project also supports the creation of the Energy Statistics Office from the existing Secretariat of General Department of Energy of MIME, and strengthens its capacity in order to meet its responsibilities and be able to perform its tasks as a designated statistical unit. Thus the project fulfils the mandate of the Statistical Law and the SubDecree on the Organization and Functioning of the National Statistical System. In addition, by placing the National Institute of Statistics (NIS) as member of the Steering Committee, the project further satisfies the requirement of the Law ensuring coordination between the designated statistical unit and NIS. Energy Modelling Unit enables long-term energy planning. The project design ensures long-term sustainability of the project: Pre-conditions related to the creation and staffing of the Energy Statistics Office and Energy Modelling Unit. The Energy Statistics Office will be created from the
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existing Secretariat Office of the General Department of Energy by strengthening and redirecting its activities This project makes sure that MIME will own the project and take the lead in the implementation of activities through leadership of the Project Management Unit (PMU). The overall project design emphasises capacity development in data collection, energy modelling and policy planning. Project also ensures learning by doing approach for the above-mentioned MIME units. Data Collection Working Group enhances the practical data collection and cooperation between relevant data producing Ministries. National Annual Workshop for Policy Planners presents project activities and results as well as action plan to the high level actors in line Ministries and other organizations, which also increases information flow between Ministries. The entities to be strengthened by the project will be providing services to the public and private sectors. The information services are required by government agencies, private sector and non-profit organizations for various activities for planning, research and investment decisions. The project builds capacity to respond constant demand for information and planning services. Project implementation Project activities implementation will be integrated within the General Department of Energy which is the main counterpart of the project. The General Department of Energy shall create the Energy Statistics Office from existing Secretariat Office, and the Energy Development Department shall create the Energy Modelling Unit within Planning Office as necessary entities for project implementation. Primary data collection is organised in cooperation with other Ministries and other organisations through Data Collection Working Group. The Head of the Energy Statistics Office (ESO) will become the Project Director. This Team will be supported by the projects Chief Technical Advisor (CTA) who will be the Project Co-Director and by the Project Officer (PO) who will be responsible for project administrative tasks. The CTA and PO will be engaged by the Ministry for Foreign Affairs of Finland. This group will constitute as the Project Management Unit (PMU). The PMU will be supervised by a Steering Committee. The project is tabled for financing in 2011. Project beneficiaries The project beneficiaries are i) MIME (including Provincial Departments of Industry, Mines and Energy DIMEs) whose staff will receive technical support. MIME will also get the data needed for national energy policy planning and for international reporting (e.g. for ACE and IEA) ii) Ministry of Environment which can use the energy data for national communication in reporting for UNFCCC; iii) ;Ministry of Planning receives information on middle and long term energy development for the basis of national policy planning (e.g. National Strategic Development Plan, and National Poverty Reduction Strategy). Government agencies that benefit from the results generated by project include Electricit du Cambodge, Electricity Authority of Cambodia, and others that will use the project results as input for their activities. Private entities and investors will also benefit from the use of energy information which serves as basis for their investment decisions. In general, the Cambodian society will benefit from better targeted energy infrastructure planning and from private sector investments on energy services. Particular attention is
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paid to increasing energy access and affordability of energy services to population groups that are easily marginalized, emphasizing productive uses of energy.

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Background
Energy services in Cambodia are inadequate and expensive which are symptomatic to the existence of significant barriers that hinder the development of sustainable energy supply systems in the country. Among the government agencies and ministries in Cambodia, the Ministry of Industry, Mines and Energy (MIME) is one of those institutions with limited information concerning the sector and lack of adequate training and capacity building (both physical and financial) to establish energy information system and energy supply planning. Yet the potential role of MIME in supporting the RGCs economic growth, environmental and climate change protection and development goals is enormous. Compared with other agencies, the National Institute of Statistics (NIS) of the Ministry of Planning for example, through strong donor support, is able to carry out routinely (every 4 years since 1993 and annually since 2007) Cambodian Socio-Economic Survey (CSES) which provides excellent data on household expenditure and living conditions whose trends over the past two decades offer an insight on the development of different income groups in the country. Similarly, the Ministry of Agriculture, Forestry and Fisheries (MAFF) publishes yearly reports about the state of the Cambodian agriculture including data on produce, yields and cost. The Ministry of Transportation publishes statistics of vehicles and estimates on fuel consumption. The Statistics Unit of Industry and Mines departments of MIME also publish statistics and information concerning industry and mining in the country. Specific information on electricity demand and generation capacities are however compiled and published yearly by the regulatory agency, the Electricity Authority of Cambodia (EAC). The current energy balance available at MIME does not provide a reliable national picture since data and information from several institutions and line ministries were collected on secondary data. On the other hand MIME does not have the financial resources or capacity to carry primary data gathering. The lack of information and adequate capacity building to carry out comprehensive planning are identified as the main contributing factors to the current circumstances of the energy sector in Cambodia. MIME requested support to build capacity to develop a reliable energy balance for which energy development planning could be built upon. MIME requested the Finnish Government for support in developing the capacity on energy statistics, balance and energy planning.The letter sent by MIME to MFA, dated January 5, 2008 stated the following needs to develop strategic energy planning work in Cambodia: Create a network, which coordinates the data collection and construction of annual energy balance together with local government agencies and industries in Cambodia; Develop the energy planning activities in Cambodia through capacity building; Construct energy models for planning purposes in order to enhance capabilities for long term scenario building for future energy planning in Cambodia; Create basis for effective climate policy planning by providing needed database and providing capacity building; and, Develop duration programme and facilitate collaborative research for energy balance construction and energy planning.

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This project document details the response of the Finnish Government to the abovementioned request.

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DEFINITION OF INTERVENTION 2.1 Problem Analysis

Biomass is the most important source of energy in Cambodia and it will continue to be the dominant energy resource in Cambodia for the short and medium term. Therefore it is essential to recognize the contribution of wood energy in the energy balance and to plan for a continued and sustainable supply of wood. At the moment 70-75% of total energy consumption is based on biomass, mainly fuel wood and charcoal. Households consume 87 % of all energy in Cambodia. Fuel wood is by far the main source of energy for cooking with urban areas shifting to charcoal. Still more than 90% of the rural households depend on firewood (See Annex 1). Wood fuel energy is also used in e.g. brick and garment industry. Due to high dependence on biomass and to the significant role of the households in total energy consumption, in the energy balance construction the central issues are (i) collection of gender disaggregated household level data on energy consumption from different provinces; (ii) data collection of both supply and utilization of biomass for energy. This is particularly pertinent given the disparity in fuel wood resources within and between provinces, and the significant impact that the lack of access to biomass has on the poor. Deforestation is severe in Cambodia. In some areas it is difficult to find wood for cooking. Deforestation increases climate change and locally can create e.g. flooding and drought and therefore impact food production. It is essential to establish good co-operation between the relevant ministries responsible for energy and forestry (especially MIME and MAFF). Household energy consumption data relates to many socio-economic and environmental issues that can be used in policy planning. These include, e.g. the use of energy in different socio-economic groups; money spent on energy in different socioeconomic groups; the impact of increases in energy price on the food security; the time allocated to wood collection; the changes in the access to fuel wood (how rapid deforestation, reasons for deforestation etc.). There are differences how men and women use energy, which mostly relate to their different social roles in the society. Also problems and priorities relating to energy can be different. Therefore, gender disaggregated energy data is also needed. Fuelwood for cooking is mostly (but not only) collected by women who often spent significant amount of time in collecting wood, especially in the areas where deforestation is severe. Women and children are also often the victims of indoor air pollution caused by wood fuel burning. Besides biomass emphasis should be given to different factual and potential renewable energy sources, including agricultural waste such as rice husk. The role of renewable energy in energy planning is crucial. At the moment most electricity in Cambodia is produced by fossil fuels that cause local pollutants as well as greenhouse gases. As the oil prices are expected to rise rather than decline, this will cause increase in food prices as well as problems in balance of payments. Currently energy and electricity services in Cambodia are inadequate and less affordable with supply systems highly vulnerable to external disruptions and fluctuations in international energy prices and increasingly contributing to local environmental pollution and greenhouse gas emissions. These are the results of an electricity supply system which is highly fragmented, less extensive (mainly providing services in large urban centres) and highly dependent on imported fossil fuels. The lack of energy

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services particularly those in rural areas and unaffordable energy services in urban areas could undermine economic growth and sustainable development of the country. Various underlying causes to generate these issues were identified such as the following: i) lack of information and knowledge on the real needs of the diversified segments of the society, ii) lack of information and awareness of the available sustainable indigenous resources, iii) lack of knowledge on alternative approaches and mechanisms in energy service provisions, and iv) lack of adequate training to critically analyze, respond and strategically plan and develop energy supply systems. In addressing these issues, the project will focus on removing these barriers through strengthening the capacity of the Ministry of Industry, Mines and Energy in the field of i) energy statistics and information system, and ii) energy and electricity planning.

2.2 Project Approach

The overall project approach can be described as follows: first the project focuses on the role of MIME in the National Statistics System by strengthening the capacity of MIMEs Energy Statistics Office (created from Secretariat Office), and second, on the role of MIME in the National Energy Planning by strengthening the capacity of MIMEs Energy Modeling Unit. In both approaches, the project provides assistance in the establishment of the respective units, in defining the functions and in identifying the expertise needed to fulfil their mandates. Various types of trainings will be conducted related to energy database and information systems for the national statistics system; and demand analysis and forecasting, and energy demand-supply balancing analysis for energy planning system. Project is based on the assumption that energy planning should serve the overall socioeconomic development planning and not function as a separate entity. The inclusion of socio-economic and environmental aspects in the energy planning requires information of the interlinkages of these activities and sectors. The possibilities to utilise synergies and avoid trade-offs in the development of different sectors should be taken into account in the planning by combining indicators from different fields into a coherent planning framework. The Cambodian national statistic system contains lot of socio-economic information from different surveys, but it is not connected to the energy statistical information. The formulation of energy statistics should take into account the present statistical systems in order to enable the use of them together. This means e.g. that the sectoral divisions of the statistical information should follow similar sectors in order to enable the use of different energy-economic models. The National Accounting uses sectoral division indicated in the Box 1:
Sectoral allocation of GDP in National Accounting in Cambodia AGRICULTURE, FISHERIES & FORESTRY Crops Paddy Other crops Livestock & Poultry Fisheries Forestry & Logging 1 INDUSTRY

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Mining Manufacturing Food, Beverages & Tobacco Textile, Wearing Apparel & Footwear Wood, Paper & Publishing Rubber Manufacturing Other Manufacturing Non-Metallic Manufacturing Basic Metal and Metal Products Other manufacturing Electricity, Gas & Water Construction SERVICES Trade Hotel & Restaurants Transport & Communications Finance Public Administration Real Estate & Business Other services

Box 1: Sectoral division in National Accounting in Cambodia

For modelling purposes it would be advantageous to use similar sectoral division in energy data collection in order to be able to link the energy use in different sector to the value added produced in these sectors. The revised International Recommendations for Energy Statistics (IRES) that are being developed by UN Statistics Division, including the Energy Statistics Compilers Manual, should be followed to the maximum extent within the project. IRES and the System of Environmental-Economic Accounting for Energy system of UN (SEEA-E) are two complementary and fully coordinated documents. The IRES principles acknowledge that needs of major user groups should be considered as a starting point and be taken into account to the maximum extent possible to ensure that the compiled data are policy relevant, meet the needs of the energy community (both producers and users) and provide a solid foundation for integration of energy statistics into a broader accounting framework. The IRES guidelines does not support so detailed division of sectors, but for modelling purposes it would create crucial benefits. However, it has to be taken into account that, in some cases, the costs of extra data collection and organisation may exceed the benefits obtained. Both demand side and supply side energy data is needed for energy balance construction. Data should be collected annually. Primary data collection is organised in cooperation with Ministries and other organisations in the most efficient and sustainable manner through Data Collection Working Group. Members of this working group are those who are involved in actual implementation of data collection. Both bottom-up and top-down approaches are used in energy data collection and planning. In the bottom-up approach it is possible to combine socio-economic and environmental household level data to the energy use in these households. This makes it possible to use e.g. gender or income specific analysis for supporting energy planning. Also the household level and gender specific information of health aspects and environmental issues can be taken into account in the data analysis. The top-down approach in energy data collection and planning makes it possible to link the energy development to macro-economic and sectoral development planning. This is crucial in
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making scenarios for future demand and assessing the needs for larger scale energy production and transmission investments. In order to guarantee the flow of information at the high level authorities (director and vice-directors), National Annual Workshop for Policy Planners is organised every year in order to present the project activities and results as well as work plan for the following year. The project approach can be described as follows: first the project focuses on the role of MIME in the National Statistics System by strengthening the capacity of MIMEs Statistical Office, and second, on the role of MIME in the National Energy Planning by strengthening the capacity of MIMEs Energy Modelling Unit. The project provides assistance in the establishment of the respective units, in defining the functions and in identifying the expertise needed to fulfil their mandates. Various types of trainings will be conducted related to energy database and information systems for the national statistics system; and demand analysis and forecasting, and energy demand-supply balancing analysis for energy planning system. Vital tools, methodologies and models will be provided related to surveys, analysis and information system management for the national statistics system, and demand analysis, and demand-supply optimization for national energy planning system. In strengthening the role of MIME in both the national statistical system and energy planning, the project will be involved in the publications of annual energy balance, energy and power statistics and other relevant energy sector information as well as publication of energy plans. The project will also adopt a learning-by-doing approach in capacity building. The staff of the Energy Statistics Office and Energy Modelling Unit will carry out the programmed project activities such as actual surveys, analysis, preparation of energy balances, energy statistics, demand simulation, demand-supply analyses, and preparation of energy plans. The role of the consultants will be to provide training on the concepts, analytical frameworks, methodologies, tools and models.

2.3 Overall Objectives

The overall objective is to contribute to planning and implementing of Cambodian climate change policy and programmes through development of sustainable energy data and planning system which promotes inclusive growth and responds to poverty reduction and sustainable development goals of Cambodia Specific indicators for monitoring the project objectives are the following: Increase investment in renewable energy and energy efficiency Improved access to energy services Enhanced energy security Reduction of local environmental and greenhouse gas emissions These indicators will be verified through the national and regional energy sector and environmental development reports.

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2.4 Project Purpose

The project purpose is to strengthen MIME to be sustainable and capable of employing advanced techniques, methodologies and modeling tools in: establishing and managing energy information system, and drawing up plans for energy sector development, and for climate change mitigation and adaptation prioritizing energy sector and climate change mitigation interventions mainstreaming of gender and poverty in energy planning. Specific indicators for monitoring the project purpose are the following: establishment energy information system disaggregated statistics where appropriate in Cambodia with gender-

MIMEs contribution to the national economic and development planning as well as to climate change intervention planning process and international reporting Achievements of Energy Statistics Office and Energy Modelling Unit action plans These indicators will be verified through the evaluation study on energy information and planning; project evaluation of MIMEs statistical office and energy modelling unit; publications of official documents (energy balance, statistical yearbooks, energy and power strategy plans) and through MIMEs website; and steering committee reviews.

2.5 Project Components

To achieve the objectives and purpose, the projects activities and outputs are organized into four overlapping components: Component 0: Project Management Component 1: Establishment of Energy Information System and Database Component 2: Capacity Building for Energy Modelling Component 3: Capacity Building for Energy Planning Components are represented in Figure 1 below.

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Component 0: Project Management

Establishment Establishment Establishment Establishment of Project Management Unit (PMU) of Energy Statistics Office (ESO) of the Energy Modelling Unit (EMU) of National Annual Workshop for Policy Planners

Component 1: Establishment of Energy Information System and Database

Capacity building for data collection Establishment of National Energy Statistics for Cambodia Establishment of Energy Balance for Cambodia

Component 2: Capacity Building for Energy Modelling

Capacity building for long term energy modelling and planning Capacity building for power sector modelling and planning

Component 3: Capacity Building for Energy Planning

Capacity Building for Energy Planning Preparation Energy Supply/Demand Balancing scenarios and energy strategy plan Capacity building for electricity demand load scenarios and power strategy plan

Figure 1: Project components

2.6 Results, Achievement Indicators and Activities

One of the expected results of the project is to develop an Energy Information System. An important feature of the system is that there is a regular production and dissemination of information on energy statistics, balances and various plans to stakeholders through publications, workshops, presentations, etc. Such information can also be uploaded in MIMEs website and hard copies will be available in both English and Khmer to line ministries, NGOs, private sector and international agencies. The structure of the information system is shown in Figure 2. The results, achievement indicators and activities for each specific component are discussed in the following sections.

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Policy Planners

MoP

Figure 2: Energy Information System Structure 2.6.1 Component 0: Project Management

The objective of this component is to create the central units, i.e. Project Management Unit (PMU), Energy Statistics Office (ESO), Energy Modelling Unit (EMU) and National Annual Workshop for Policy Planners. Results
Established Project Management Unit Established Energy Statistics Office (created from existing Secretariat Office)

Achievement Indicators
Adequately staffed PMU established and active Adequately staffed ESO established and active

Activities
Assigning the space for, tendering the staff positions and furnishing the PMU Assigning the space for, tendering the staff positions and furnishing the ESO; Nomination and appointment of 4-6 people to be trained as statistics experts Assigning the space for, tendering the staff positions and furnishing the EMU; Nomination and appointment of 3-5 people to be trained as modelling

Established Energy Modelling Unit

Adequately staffed EMU established and active

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experts Annually organised Workshop for Policy Planners Project activities, results and action plans are presented and discussed in the workshop Inviting the members to the National Annual Workshop for Policy Planners Organisation of National Annual Workshop for Policy Planners.

Table 1: Results, Achievement Indicators and Activities of Component 0. The specific indicator of this phase is that adequately staffed Project Management Unit, Energy Statistics Office and Energy Modelling Unit within MIME are operational. The results, achievement indicators and activities of this phase are shown in Table 1. More detailed activities are shown in Annex 4. 2.6.2 Component 1: Establishment of Energy Information System and Database The objective of this component is to establish the Energy Information System and database to serve, firstly, national policy planning, not only for energy sector but also to benefit economic planning (including National Strategic Development Plan) and environmental sector. Secondly, the energy information system and database will also help to fulfil Cambodias international reporting obligations defined e.g. by ASEAN Center for Energy (ACE), International Energy Agency (IEA) and United Nations Framework Convention on Climate Change (UNFCCC). Data collection is done in collaboration with line Ministries and other institutions through Data Collection Working Group. From the beginning the data collection is planned in such manner that it is costeffective and sustainable, i.e. annual data collection and analysis is able to continue also after the project has ended. The establishment of energy information system will require the analysis of the energy data needs of different Ministries and other organisations (including Ministry of Environment), and clarification of the availability of already existing primary data. After the assessment of data needs and existing data the complementary surveys will be will be made. The results, achievement indicators and activities of this component are shown in Table 2. More detailed activities are shown in Annex 4.
Results Institutional cooperation arrangements and quality control measures for obtaining required data in costeffective and sustainably way are in place Report on elaborated data
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Achievement Indicators Data Collection Working Group is established and is meeting regularly Energy data collection plan agreed by key stakeholders is adopted Signed institutional agreements (etc.) for obtaining the required primary data from different sources are in place - Page 20 / 87 -

Activities Analysing the type and level of detail of required primary data to serve different planning and international reporting needs Clarifying of already existing data and plan for complementary data collection and utilization Revision of existing survey questionnaires and samples, if needed

needs (living document)

Trained staff of the Energy Statistics Office and its collaborating agencies to manage, collect and submit data Establishment of Energy Information System Energy Balance completed Information can be obtained in flexible and user friendly manner

Software selected Trainings organised Preparation of survey questionnaires; checking the existing questionnaires At the end of the project staff of ESO and its partner institutions are capable of updating and checking the quality of the data Surveys and other data collection methods are implemented. Data collection is repeated annually Energy Balance is prepared Stakeholders are consulted Data is published Proposal of modification of the Statistic Law to improve the collection of data on a permanent basis

Negotiations with cooperating entities to obtain the required primary data in most cost efficient and sustainable way. . Selecting the software for and designing the structure of database Trainings on methodology, design, implementation, data processing quality control, maintenance etc. 10 experts from MIME and other organizations are trained. Data collection, compilation and analysis Organisation of National Annual Workshop for Policy Planners Publication of data

Statistic Law is modified

Preparation of the proposal to modify the Statistic Law

Table 2: Results, Achievement Indicators and Activities of Component 1 2.6.3 Component 2: Capacity Building for Energy Modelling

The objective is to train the staff in the Energy Modelling Unit in energy modelling. At the end of the project Energy Modelling Unit will be able to scenarios that will benefit policy planning. They are able to assess energy resource requirements and development of long-term sustainable supply options based on RGCs economic development scenarios to be used for energy sector and climate change policy planning, and as input to Cambodias National Strategic Development Plan. The scenarios will be made available for other stakeholders, national and international organizations, private companies, and donor agencies. The results, achievement indicators and activities of this phase are shown in Table 3. More detailed activities are shown in Annex 4.
Results Energy Modelling Unit (EMU) Staff is trained to conduct analysis The Energy Modelling Unit (EMU) equipped with state-of-the art software for
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Achievement Indicators Model(s) have been selected to prepare long term scenarios Energy planning models are used for demand and supply scenario construction for - Page 21 / 87 -

Activities Different trainings on energy demand analysis methodologies and models Finalising the basic structure and deciding on

energy modelling taking into account the specifics of the Cambodian energy sector and its socioeconomic and environmental considerations. Trained staff to conduct the analysis.

different sectors, integrating the socio-economic and environmental impact assessment in the planning.

the factors (including socio-economic and environmental) to be taken into account in the modelling and shown in the energy supplydemand scenarios and, as needed, conducting additional data gathering, studies and surveys to serve the analysis.

Finalized scenarios for both energy and electricity supply and demand in different economic sectors corresponding with the environmental targets and general socio-economic development plans.

The energy supply and demand scenarios including socio-economic and environmental considerations are finalized and the results published.

Finalisation of the analysis in co-operation with local and international experts (with simultaneous on-thejob training) and publishing of its results (including feedback from National Annual Workshop for Policy Planners) together with related presentations in workshops, etc. Revision of annual survey questionnaires if needed Research of additional data needed for power sector modelling Checking the consistency of input data sets for selected models

Recommendations addressing the identified data gaps and suggestion for improving the Energy Information System to better serve the energy modelling and planning.

Recommendations addressing the identified data caps provided

Table 3: Results, Achievement Indicators and Activities of Component 2. 2.6.4 Component 3: Capacity Building for Energy Planning

The Component 3 focuses on capacity building for energy planning. It includes training of Energy Modelling Unit experts on energy planning methodologies and models, as well as socio-economic and environmental linkages related to energy planning. Energy and electricity scenarios will be made. National Annual Workshop for Policy planners of high level decision makers from various energy entities will discuss about long term energy development. Long-term energy supply/demand balancing scenarios will be prepared and published. Based on the scenarios and discussions within the Workshop policy plans and interventions will be planned and published in the form of energy strategy plan. Similarly power sector scenarios will be constructed and discussed in the Workshop, and after formulation of policy plans and interventions a power sector development strategy will be published. The results, achievement indicators and activities of this phase are shown in Table 4. More detailed activities are shown in Annex 4.
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Results The Energy Modelling Unit (EMU) equipped with stateof-the art software for energy supply and policy planning taking into account the specifics of the Cambodian energy sector, the environmental and socioeconomic aspects Trained experts are able to take into account socioeconomic and environmental linkages of energy issues

Achievement Indicators Energy supply, socioeconomic and environmental impact assessment as well as climate change mitigation and adaptation analysis and scenarios are being prepared by EMU by using the selected software.

Activities Evaluation, selection and, as needed, modification of the energy supply and policy planning software or software package to cover the identified energy sector planning and intervention prioritization needs within the set socio-economic and environmental targets. Training of the staff of the EMU on i) energy supply and policy planning and how to combine it with energy modelling in general and by using the selected software packages, ii) the integration of the socio-economic and environmental targets and impact assessment with energy planning, and iii) management of the uncertainties and complementary data gathering. Various long term energy demand scenarios have been prepared with detailed explanation of hypothesis, results and potential consequences Establishment of National Annual Working Group for Policy Planners (high level decision makers) Finalising the basic structure and factors to be taken into account in energy strategy plan Finalisation of the analysis in co-operation with local and international experts. Finalizing the supply-demand scenarios and related policy and intervention plans based on the workshop feedback Finalising the basic structure of power sector modelling and deciding on the factors to be taken into account and, as needed, conducting additional data gathering,

National Annual Working Group for Policy Planners discusses the targets and long term scenarios Long term energy strategy plan is completed Results have been disseminated and commented

The working group is established and meetings are organised Scenario results are published Results are commented by the Working Group and finalized

Power strategy plan is completed Results have been disseminated and commented.
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are published. Power sector supplydemand balancing scenarios including socioeconomic and environmental impacts are discussed in the Working Group, scenarios are finalized and published.

studies and surveys to serve the analysis. Finalisation of the analysis in co-operation with local and international experts. Finalizing the power sector supply-demand scenarios and related policy and intervention plans based on the workshop feedback.

Table 4: Results, Achievement Indicators and Activities of Component 3

ASSUMPTIONS AND RISKS

Institutional One of the main assumptions in the design of the project is that the Secretary of State is supportive of the project, and agrees to the transformation of the Secretariat Office into Energy Statistics Office (ESO) and the establishment of the Energy Modeling Unit (EMU) under the Energy Planning Office. Existing Secretariat Office will be reorganised to accommodate the Energy Statistics Office in MIME. This avoids the risk of creating an additional department in MIME where a moratorium in establishing new departments in government agencies is currently imposed. There is also a risk that the project office will be attached to a lower unit in MIMEs hierarchy which may limit inter-ministerial coordination. The level of the Secretariat turned Statistical Office however is already high in the MIME hierarchy and the Office reports directly to the Director General. Another key assumption is that the National Institute of Statistics (NIS) of Ministry of Planning supports the establishment of the Energy Statistics Office of the General Department of Energy as one of the designated statistical units of MIME under the Statistics Law and Sub-decree on the Organization and Functioning of the National Statistical System. The Law and the Sub-decree strengthens the case for this project. However, energy data collection on a permanent basis, in collaboration with different energy data producing organizations should be guaranteed by legislation. Statistics Law should be modified accordingly. The procedures specified and the rules stipulated in the Statistics Law should be enforced. Confidentiality agreement should be used and penalties stipulated under the Law should be enforced.It is also assumed that the Electricit du Cambodge (EDC) supports this initiative and will provide necessary information and inputs related to the generation, transmission and distribution of electricity. In addition, the project design also assumes full participation and cooperation from other government agencies and provincial authorities. Capacity The lack of experience in energy statistics and planning as well as the lack of multidisciplinary skills in MIME and the Provincial Departments of Industry, Mines and Energy (DIME) may undermine the project. The technical assistance therefore will focus on developing the required specialized skills. If the training of the trainers method is used to increase the capacity of DIME staff, sufficient amount of time should be allocated for learning and actual use of new methods before the new trainers train others. Also the quality of the teaching provided by newly trained trainers should be followed. Several persons from each province should be trained to increase the

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sustainability (in case trained personnel migrate from the province etc.) The project is based on increasing the capacity and therefore resources and time should be allocated to this purpose. Careful planning of the trainings will increase the sustainability of the project. Furthermore, even though the capacity-building in DIMEs would focus mostly on those who will be collecting the data, workshop(s) should also be organized for high level provincial authorities to inform about the rational of the project, objectives and methods of energy data collection, as well as to receive their input and support. The trainings should be conducted by different short-term experts with good knowledge in both the substance of the trainings as well as training methods. Experts should cover wide range of issue areas including energy and power planning, statistics, information systems, social and environmental impact assessment, renewable energy and gender issues. (See Annexes 2 and 3) The technical assistance focusing mainly for MIME and DIME may also create a risk that there may be only limited specialized skills being developed by the project. Universities and Institutes are being involved in the project in such a way that specific skills required in energy statistic analysis and planning be taught in these institutions, thus increasing the available qualified staff in the country and increasing the impact of the project on human capacity development. However, at the moment, the Institute of Technology of Cambodia needs additional capacity building in the field of energy modelling and policy planning. This would increase the sustainability of the activities also after the project funding ends. The project design also assumes that MIME staff is motivated to learn in energy statistics and planning. The project will further provide incentives for learning such as opportunities to participate in regional trainings and workshops. Financing It is assumed in the project design that MIME will provide the salary of the staff and will provide office space including basic utilities such as electricity and water use. The project will however provide support in project operating costs, office equipment, and transportation and per diem (for field work). Trainings and capacity building activities within the country and abroad will also be financed by the project. However, one of the most severe risks relates to the financing of the data collection and other activities after the ending of the project. Even if the capacity development would be successful, the data collection still requires annual funding. Energy Data Another assumption made in the project design is that there is a free flow of energy data from other Ministries, private sector or from other agencies to MIME. There is a risk relating to the continuous collaboration between MIME and other energy data producing Government agencies. Continuous collaboration in data collection is necessary not only at the beginning but also in the future. MIME will need to collaborate closely with e.g. NIS, MAFF and MoE, Ministry of Commerce, Ministry of Public Works and Transport to get data without extra payment. This requires commitment also from other Ministries, not only MIME. Data Collection Working Group and Steering Committee will be established to enhance collaboration between the data producing (and using) organisations. Also National Annual Workshop for Policy Planners will be organised every year for the high level officials.
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Sustainability There is a risk that the once the support from the Government of Finland will culminate project activities will not be sustained. In general it can be said that long commitment to capacity development creates best results (c.f. SIDA funding for NIS). The project design ensures that the information system and energy planning will be supported in the long term: The establishment of the Energy Statistics Office under MIME should be undertaken within the framework of Statistics Law which requires Ministries and agencies to create designated statistical units; in addition the annual publications of energy information and statistics will also create demand for such units; Since MIME is the only agency undertaking energy and power sector planning, once the capacity of these units are strengthened, the demand for energy and power plans from government agencies and the private sector will ensure that the modeling unit will be needed and supported. This, however, requires good cooperation and information exchange between different Government agencies; The structure of the project management unit in the project design making the Head of the Energy Statistics Office as Project Director and the Chief Technical Advisor as Project Co-Director will also ensure that MIME owns the project at the inception stage, and that project activities are designed to be the routine activities for both Statistics Office and Energy Modeling Unit. The sufficiently resourced trainings of the trainers and learning-by-doing approach also ensures that MIME staff are trained on their required skills. The quality of the training provided by newly trained trainers (e.g. in DIME) should be guaranteed.

COMPATIBILITY AND SUSTAINABILITY 4.1 Compatibility

4.1.1 Finnish Development Policy

Finlands Development Cooperation Policy, in coherence with the United Nations Millennium Development Goals, aims to support activities that eradicate poverty and promote sustainable development. Therefore the collection of socio-economic and environment related energy data both on different levels (including household and provincial levels) is important. The energy planning benefits also environmental planning and reporting, as well as poverty alleviation measures and policy planning. The Finnish Development Policy issued in 2007 promotes actions that are environmentally, socially and economically sustainable. More specifically, the government aims to promote sustainable use of natural resources; to maintain the biodiversity; prevent climate change, soil exhaustion and desertification and to protect living conditions. In addition, the Finnish Development Cooperation aims to build on the partner countries own poverty reduction and development strategies. The Government Decision-in-Principle 2007 emphasises coherence, complementarity, and effectiveness.
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Policy coherence for development requires that strategies and actions in all policy areas support the goals of development policy in eradicating poverty and in sustainable development. Promotion of the rights and the status of women and girls, and promotion of gender and social equality is one of the cross-cutting themes supported by the Finnish Development Policy. Gender equality is also a priority concept on Cambodias Rectangular Strategy for Growth, Employment, Equity, and Efficiency. Gender mainstreaming needs to be addressed in all policies. Men and women use energy differently, mostly due to their different roles in the society. Also problems and priorities relating to energy can be different for women and men. Therefore, gender aspect should be taken into account at least in following issues: (i) different energy needs and energy related problems determined by social roles and gender; (ii) different rights of decision-making in the selection of energy sources and equipment; (iii) different participation in the maintenance and management system. These aspects could be taken into account in energy data collection. In addition, the gender differences in the serious health impacts of energy use, especially from firewood use for cooking, should be taken into account in planning. In developing alternatives for domestic energy, attention is to be paid to health and safety as well as efficiency, cost and convenience.

Following issues could be used to improve the gender mainstreaming: 1) A gender advisor should be hired as a short term expert. Gender audit is recommended. The audit could follow ILOs guidelines for participatory Gender Audit.1 According to the Ministry of Womens Affairs, also local experts are available to work as gender advisors. ENERGIA Network should be consulted if necessary.2The gender expert should be hired during the first phase of the project. Important part of her/his job would be to comment draft data collection questionnaires and to plan household data collection as well as other surveys. 2) Cooperation with JICAs Project on Gender Mainstreaming (PGM, Phase 2) is recommended. In PGM project the main counterpart is Ministry of Womens Affairs but also MIME and five other line ministries are partners. JICA has in this project also developed methods in gender mainstreaming.3 3) Representative of Ministry for Womens Affairs should be a member in Steering Committee, Data Collection Working Group and National Annual Workshop for Policy Planners.

A Manual for Gender Audit Facilitators. The ILO Participatory Gender Audit Methodology. International Labour Organisation (ILO). Geneva, 2007. 2 ENERGIA is a international network on gender and sustainable energy (founded in 1996). ENERGIA does gender mainstreaming and capacity-building in Africa and Asia but they dont have a focal point in Cambodia (according to their web pages http://www.energia-asia.org/home/) but they provide regional gender and energy workshops. 3 Sources given by JICA on gender mainstreaming: http://www.jica.go.jp/project/cambodia/0211055E0/04/pdf/01_eng.pdf and http://jica-net.jica.go.jp/dspace/handle/10410/697
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4) In planning questionnaires and selecting respondents gender issues should be taken into account 5) Socio-economic issues should be taken into account in energy data collection. Besides gender, other cross-cutting themes supported by the Finnish Development Policy are the following; Promotion of the rights of groups that are easily excluded, particularly children, people with disabilities, indigenous people and ethnic minorities, promotion of equal opportunities for participation; and Combating HIV/AIDS; HIV/AIDS as a health problem and as a social problem. In the Energy Balance project and in energy projects more generally, the relevant but easily excluded groups (besides women) are the poorest communities. Data collection questionnaires and energy policy planning should be formulated in such way that they would also take into the account the respondents from the poor communities and other easily excluded groups. These groups should also be taken into account when planning the sample and selecting the respondents to the questionnaires. Combating HIV/AIDS is not very relevant issue in energy data collection and energy planning, except possibly in the cases related to the construction of large power plants, where large number of migrant workers can create conditions favourable for spreading of HIV/AIDS. The role of children as workforce for energy production (firewood collection) and their health impacts from the indoor air pollution from cooking stoves should also be seriously taken into account in the project. Furthermore the overarching goal of the project is the development of a sustainable energy supply system which is sensitive to developmental, energy security, and energy access goals of the country. With the energy information and energy sector development plans, the Government of Cambodia can make decisions and prioritized interventions on sustainable energy systems that enhance energy access and fuel economic development of the country. With detailed energy sector information, the Government of Cambodia could also prioritize energy sector policies and plans that promote poverty alleviation, climate change mitigation, and equity. In practise this could mean, for example, a program that would focus on promotion and support (e.g. with subsidies) of fuel wood saving cook stoves in the rural areas. Now the efficient cook stoves are mainly used in the cities. The efficient cook stoves would reduce the consumption of wood, which would have positive impacts on deforestation, climate change mitigation, time and/or money spent in fuel wood collection, less respiratory illnesses etc. The support of improved cook stoves program targeted on rural areas would benefit especially women (and children) and it would also reduce CO2 emissions. 4.1.2 National Strategic Development Plan and Energy Sector Development

The National Strategic Development Plan (NSDP) embodies the overarching development policy and strategy of RGC to meet the Millennium Development Goals particularly the goal of eradicating poverty and human development. RGC adopted a Rectangular Strategy for Growth, Employment, Equity, and Efficiency with Good Governance as the core and i) enhancement of the agriculture sector, ii) rehabilitation and construction of physical infrastructure, iii) private sector development and employment generation, and iv) capacity building and human resources development as the four main pillars. The main aim of the Rectangular Strategy is to promote economic growth, generate employment for Cambodian workers, ensure equity and
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social justice, and enhance efficiency of the public sector through the implementation of the Governance Action Plan and in-depth reforms that are coordinated and consistent across all levels and sectors. Energy sector development plans are defined under the second pillar on physical infrastructure. RGCs energy sector policy aims to i) provide adequate supply at reasonable prices, ii) ensure a reliable and secure electricity supply, iii) encourage exploration of environmentally and socially acceptable development of energy resources, and iv) encourage efficient use of energy. In addition, RGC also developed a rural electrification strategy which aimed at increasing access to energy services particularly those in rural areas improving living standards and promoting agricultural and small-scale industrial development. This project is not only compatible with the development principles of RGC but also complements and supports the achievement of the energy sector policy and rural electrification strategies contributing to the overall developmental goals of the National Strategic Development Plan. Energy information and plans will be used by RGC to prioritize energy investments that achieve and optimize developmental benefits from improving energy access to stimulating rural development, protecting the environment and promoting gender equality. Similarly, energy sector information and plans will provide the private sector the basis for making decisions to invest in energy sector development. 4.1.3 Statistics Law

The Statistics Law was issued by RGC in 2005 governing the collection, processing, compilation, analysis, publication and dissemination of statistical data in the country. The Law assigns the National Institute of Statistics of the Ministry of Planning as the overarching body responsible for making official statistical policies in establishing an integrated National Statistical System. In addition, the Law also required the Ministries and institutions of RGC to collect sectoral data either independently or in cooperation with the National Institute of Statistics (NIS). A sub-decree on the organization and functioning of the National Statistical System was issued in 2007 detailing the main functions of NIS and the designated statistical unit within each Ministry or government institution. This project supports the establishment of the Energy Statistics Office (ESO) of General Department of Energy of MIME and strengthens its capacity in order to meet its responsibilities and be able to perform its tasks as designated in the Sub-Decree. Thus the project fulfils the mandate of the Statistical Law and the Sub-Decree. In addition, by placing NIS as member of the Steering Committee, the project further satisfies the requirement of the Law ensuring coordination between the designated statistical unit and NIS. However, Statistics Law should be modified to improve the energy data collection on permanent basis. Providing energy and other data to MIME on regular basis should be rendered compulsory for main energy actors (supply and demand industries, utilities, commercial consumers, etc), as well for other line Ministries (Agriculture, Public Works and Transport, Finance and Economy, Environment, etc.)

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4.2 Sustainability
The issue of sustainability has been raised in various discussions during the project preparation phases, thus sustainability is one of the key considerations in project design. It is crucial that the project is sustainable and that the annual data collection continues also after the project ends. There are features embedded in the project design that ensure long-term sustainability and these are the following: Pre-conditions related to the creation and staffing of the Energy Statistics Office from the already existing Secretariat Office, and of Energy Modelling Unit. Also funding of annual data collection activities should be guaranteed also after the project is completed. One of the pre-conditions set by the project is that MIME should establish and nominate staff of the Energy Statistics Office and Energy Modelling Unit to be funded from its internal financial resources. In this case, the project will not create a new entity but strengthen the capacity of the existing units of MIME. This ensures sustainability with respect to financial support of the said units. Statistics Law. The establishment of the Energy Statistics Office will be undertaken within the context of the Statistics Law which requires Ministries and Government agencies to establish designated statistics units. Statistics Law should be modified to improve the collection of energy data on a permanent basis, and to enable the continuous collaboration between different Government agencies producing energy and other relevant data. Continuous collaboration between MIME and several other Government agencies is needed, and therefore Data Collection Working Group is established to enhance information exchange. MIME will need to collaborate closely with e.g. NIS, MAFF and MoE, Ministry of Commerce, Ministry of Public Works and Transport to get data without extra payment. This requires commitment also from these Ministries, not only MIME. Design of the Project Management Unit (PMU). This technical assistance project makes sure that MIME will own the project and take the lead in the implementation of activities. The Head of the Energy Statistics Office will be designated as the Project Director and will be responsible for the execution of the project activities and at the same time take the lead in undertaking routine activities for the provision of energy information and preparation of energy plans. The role of the Chief Technical Adviser as Project Co-Director and other short-term international experts will mainly provide capacity development, training, control and technical assistance.This ensures hands-on project implementation experience for the Energy Statistics Office and Energy Modelling Units. Organised trainings and learning by doing approach. The overall project design ensures learning by doing approach for the above-mentioned MIME units. International experts will provide specific trainings to MIME staff but the actual preparation of energy balance and statistical publications as well as the preparation of energy plans will be carried out by the staff themselves, under the supervision of experts. This guarantees learning and that the activities carried out in the first year will be routinely replicated in the following years. Demand for services. The entities to be strengthened by the project will be providing services to the public and private sectors. The Statistics Office will be
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generating publications such as energy balance and energy statistical yearbooks, etc. On the other hand, the Energy Modelling Unit will be generating energy strategy plans, power strategy plans and other long term energy demand supply information. This information is required by government agencies, private sector and non-profit organizations for various planning, research and investment decisions ensuring constant demand for information and planning services.

IMPLEMENTATION 5.1 Implementation Strategy

MIMEs request to the Government of Finland for support and development of the capacity on energy statistics, energy balance and planning requires at least 2 dedicated units responsible for energy information system and energy planning. The project strategy is to support MIME create these units under the General Department of Energy, and build their capacities through learning-by-doing approach. These units are the Energy Statistics Office (ESO), which will be created from the existing Secretariat Office, and Energy Modelling Unit (EMU). The first 4 months of the project will be the Inception Phase. During this period, the project document will be reviewed and revised if necessary, and the first annual plan will be prepared with the annual budget and staffing revised if needed, without changing the agreed project scope and purpose. During the inception phase, the logical framework will also be reviewed and amended if needed to add more detail to the proposed achievement indicators and quantify some of the outputs if possible. In addition, a monitoring plan will be prepared by the project management unit (PMU) in order to guarantee timely implementation and achievement of results.

5.2 Data Collection

5.2.1 Demand side data collection

Both demand side and supply side energy data is needed for energy balance construction. Due to the decentralized system, many Ministries collect data that can either directly or as bases of evaluation used in energy statistics and energy balance construction. The most feasible way to organize the data collection is to use the data collected by MIME and other Ministries and to improve the quality of data collection methods and analysis. In this section is listed the energy data that is collected by MIME or other Ministries, and the recommendations on how demand side energy data collection should be organized. Table 5 at the end of this section summarizes the energy data collection recommendations. ). Agricultural sector
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At the moment there are no statistics available on energy used in pumping, tractors and other machines used in agriculture. Solution for agricultural sector energy demand data collection: DIMEs could do surveys about the energy consumption in the agricultural sector and cooperate with Provincial Departments of MAFF. Industrial sector: Industries provide MIME reports of the production value, but not energy use. Large industry (capital more than 500 000 USD) report every month by using MIMEs reporting format. Small and medium size industry companies report to MIME once a year. There are no statistics available on the use of wood for energy in industrial sector (e.g. in brick and garment industry). Solutions for industry energy demand data collection: 1) Energy questions could be added on the MIME questionnaire sent for companies 2) Also questions on fuel wood and other biomass use should be included 3) The use of wood as raw material should also studied in addition to energy use in order to obtain information of the total demand of wood 4) Electricity consumption in the industrial sector data can be obtained from Electricite du Cambodge, Electricity Authority of Cambodia and Rural Energy Enterprises. Service sector: MIME has a questionnaire for all energy consumption and uses random sampling methods for the commercial sector (restaurants, hotels, guest houses, shops etc.). In Phnom Penh MIME collects information and in the provinces DIMEs collect the data. Five star hotels are part of the industrial sector. Last time this was made was in 2009. Solution for service sector energy demand data collection: This questionnaire used by MIME can be used also in the future, possibly after revisions on questionnaire and sampling. Data should be collected annually, if possible. Transport sector: The fuel used in transport sector is imported (except possible future production of biofuels). Statistics concerning the fuel imports are available from CAMCONTROL (under Min. of Commerce) and Customs office. Statistics concerning the number of vehicles are available from Ministry of Public Works and Transport. Energy use of agricultural vehicles must be removed from the statistics as it is calculated in agricultural sector. There is no data on fuel consumption, so it must be estimated (especially for passanger cars). For evaluation of bus and freight transport fuel consumption MIME uses survey. Solution for service sector energy demand data collection: Statistics from CAMCONTROL (under Ministry of Commerce), Custom office and Min. of Public works and Transport can be used for fuel imports and number of vehicles registered.
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Questionnaire used by MIME for the evaluation of transport fuel consumption can be used also in the future (possibly after revisions on questionnaire and sampling). Information of annual kilometres driven by cars could be estimated from possible future collection of data during the technical car inspection.

Household energy consumption: Household energy consumption data should be important part of the energy statistics and energy balance construction due to the significant role of biomass (fuel wood and charcoal) in total energy consumption, and the fact that households consume almost 90% of all energy. Household energy data collection should cover all forms of energy, including fuel wood and charcoal, and statistics should be gender dissaggregated. Socio-economic (especially concerning household data collection) and environment data should be included to energy data collection. At the moment there are no statistics on household energy consumption, except what is collected in National Institute of Statistics (NIS) annual socio-economic survey.4 The household energy data collection should preferably be incorporated to NIS socio-economic surveys, if possible. This would enable the integration of the energy related socio-economic and environmental issues (especially regarding fuel wood) to the energy statistics. In principle the measurement of household wood consumption in NIS socio-economic data is possible. However, it depends on funding, capacity and the decisions how the survey is compiled in the future. In any case NIS expertise should be used to the extent possible in household energy data collection.5

Solutions for data collection on household energy consumption: 1) First option would be to add energy questions to socio-economic survey collected yearly by National Institute of Statistics (NIS) or to the survey of National Committee for Sub-National Democratic Development (NCDD). Incorporation of energy questions to NIS or NCDD socio-economic survey would enable the linking of socio-economic issues in energy analysis. Negotiations considering this option should be carried out with NIS and/or with NCDD. 2) Second option is that DIMEs would conduct (all or part of) surveys on household energy consumption. This would require capacity building and other assistance. If DIMEs will collect the data, they need capacity-building and other support. Also a survey questionnaire format has to be defined as DIMEs have not collected this kind of

There are few energy related questions in the NIS socio-economic survey such as the type of fuel used for cooking; money spent on electricity, firewood, charcoal, battery, LPG (etc); and electricity consumption. Collected wood fuel consumption is estimated in bunch (handful). The bunch (handful) varies according to the quality of wood.
5

In the NIS socio-economic survey 2009 (published in December 2010) the sample was 12 000 households which divided into 12 monthly samples of 1000 households in 60 villages.
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data. UNDP rural household survey questionnaire as well as Finland Futures Research Centres (FFRC) survey questionnaires could be taken as reference and modified.6 Also methods used in Department for Alternative Energy Development and Efficiency of Thailand (DEDE) to calculate daily house hold wood fuel consumption could be used and developed further, if necessary. Decision on how household data is collected should be made in the inception phase. Collection of gender disaggregated statistics has to be organised. Gender advisor is recommended in planning the household survey. Also cooperation with JICAs and Ministry of Womens Affairs Project on Gender Mainstreaming project (Phase 2) is recommended. Furthermore, if the Wood Energy Working Group chaired by MIME becomes active, collaboration is recommended in all issues relating to wood energy.7 5.2.2 Supply side data collection and energy import statistics

Biomass: Different options of supply side energy potentials must be evaluated, but the energy supply must be sustainable (cf. fuel wood and rapid deforestation). In order to evaluate the use of biomass for energy, also information on the other uses for wood is needed (including industrial use of wood as raw material, timber and wood residue exports). Also data on the regeneration capacity of forest is required. In the evaluation of biomass supply side, collaboration with MAFF and MoE is recommended. Due to the rapid deforestation, reforestation would be needed but perhaps also plantations for fuel wood. However it should not compromise food production. Biofuel potential is also needed to be calculated for the supply side data. Biofuel strategy should be established in such manner that biofuel production would not threaten food production or natural forests. Other potential sources of energy supply include agricultural waste8, wind, solar, and hydro. Fossil fuels: Cambodia has oil and gas reserves. In the future the crude oil and gas supply statistics will be collected by Cambodian National Petroleum Authority (CNPA)CO2 emissions and climate change mitigation are central issues in fossil fuel sector and should be taken into account in the energy planning. At the moment the fuel used in electricity production and in the transport sector is imported. Ministry of Commerce (CAMCONTROL) collects data on fuel imports.
6

MIME, UNDP, GERES (2008): Residential Energy Demand in Rural Cambodia. An empirical study for Kampong Speu and Svay Rieng www.un.org.kh/undp ; Turunen, Jenny et al. (2011) Livelihood Resilience and Food Security in Cambodia. Results from a Household Survey. FFRC eBooks 1/2011. 81 p. ISBN 978-952-249-062-9 http://ffrc.utu.fi/julkaisut/e-julkaisuja/eTutu_2011-1.pdf UNDP research covered two provinces, and FFRCs research covered 12 provinces.
7

Wood Energy Working Group was established in 2006, but has not been active. It is chaired by MIME and has 14 members. 8 Significant potential in e.g. in rice husk, see Akgn et al 2011
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The Table 5 below summarises the recommendations for data collection: Sector
Agriculture

Data collection
Survey by DIMEs in cooperation with Provincial Departments of MAFF

Comments
At the moment energy demand data at the agricultural sector is not collected Questionnaire and sampling should be revised if necessary

Industry

Energy questions (incl. biomass) added to MIMEs survey. Studies on the use of wood as raw material. Electricity data provided by Electricite du Cambodge, Electricity Authority of Cambodia and Rural Electricity Enterprises Survey by MIME and DIMEs Statistics from CAMCONTROL (under Ministry of Commerce), Custom office and Min. of Public works and Transport are used for fuel imports and number of vehicles registered. Survey conducted by MIME for the evaluation of transport fuel consumption can be used Information of annual kilometres driven by cars could be estimated from possible future collection of data during the technical car inspection If possible, energy questions should be added to socio-economic survey collected by NIS or to the NCDD survey. Another option is that DIMEs conduct surveys on household energy consumption. If DIMEs collect the data, other organisations (e.g. UNDP and FFRC) survey formats could be used as a reference. Also methods used by DEDE in measuring household fuel wood consumption could be used, if suitable for Cambodia. Cooperation with JICAs and Ministry of Womens Affairs Project on Gender Mainstreaming is recommended. The fuel import statistics of CAMCONTROL (Ministry of Commerce) should be used Cambodian National Petroleum Authority (CNPA) will collected crude oil and gas supply statistics in the future Collaboration with MAFF, MoE and other partners needed to evaluate supply in biomass, biofuels, hydro power, agricultural residues (such as rice husk), wind, and - Page 35 / 87 -

Service Transport

Questionnaire and sampling should be revised if necessary Questionnaire and sampling should be revised if necessary. Vehicles used in the agricultural sector should be deducted

Household

At the moment there are no nationwide statistics on household energy demand. When conducted, they should include questions relating to wood and other biomass. Holistic approach needed: Sosio-economic and environmental issues relating to energy should be taken into account.

Fuel imports Fossil supply fuel

Capacity development needed also in CNPA. The calculation and estimation of renewable energy supply is especially challenging. However, supply side data needed in energy balance

Renewable energy supply

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solar energy

construction and sustainable energy planning

Table 5: Summary of the Data Collection Methods and Data Sources

5.3 Capacity Development and Training

Based on the final decision on how the energy data from different sectors will be collected (see section 5.2. above), the capacity development should be planned and scheduled accordingly. Trainings should be provided at least to Energy Statistics Office, Energy Modelling Unit and for DIMEs, but also for other energy data producing organizations, if needed, in order to get good quality data. The project is based on increasing the capacity and therefore resources and time should be allocated to this purpose. Careful planning of the trainings will increase the sustainability of the project. The trainings should be conducted by different short-term experts with good knowledge in the substance of the trainings and preferably also pedagogical experience to conduct trainings. Trainings provided by shortterm experts should cover wide range of issue areas including energy and power planning, statistics, information systems, social and environmental impact assessment, renewable energy, gender issues, modeling and policy planning. (See Annexes 2 and 3) Several short term trainings targeted e.g. for DIME staff could be organized together to reduce travelling expenses. Following trainings are recommended: Training Why energy data collection and energy balance construction are important? Survey methods and sampling Methodology of energy statistics and energy balances Energy supply and demand analysis methodologies and models for long term energy supply and demand planning Power planning modelling Energy planning methodologies and models Training on socio-economic and environmental linkages connected to energy planning Training on gender mainstreaming into energy planning Table 6: Trainings and capacity-building Target groups Higher level DIME staff (introduction of the project) Energy Statistics Office and DIME staff (technician level staff) Energy Statistics Office and DIME staff (technician level staff) Energy Modelling Unit staff

Energy Modelling Unit staff Energy Modelling Unit staff Energy Statistics Office, Energy Modelling Unit and DIME staff Energy Statistics Office, Energy Modelling Unit and DIME staff

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However, it should be noted that final decisions on what trainings organized and which stakeholders should take part in the trainings, is done in the Inception phase when the Training Schedule is defined. Furthermore, Gender advisor specialized in energy issues should be consulted in planning the trainings as gender is a cross cutting theme. In the training of DIME staff in data collection sufficient amount to time and resources should be allocated for both learning and training in practice how to use new data collection methods. Training should include several trial tests on how methods are used (e.g. conducting surveys), together with discussions and feedback. Several persons from each province should be trained to increase the sustainability (in case trained personnel migrate from the province etc.) Special emphasis should be given to the sustainability of the learning process. Capacity-building in DIMEs should focus mostly on those who will be collecting the data, but workshop(s) should also be organized for high level provincial authorities to inform about the rational of the project, objectives and methods of energy data collection, as well as to receive their input and support. Preferably two people from each DIME should attend to trainings to increase the project sustainability and efficient learning. Project laptops (one for each DIME) could be used in trainings when needed (e.g. data entry exercises). The participants should be carefully selected in such a way that the staff attending to the trainings should be those who will actually do the data collection and analysis. In order to guarantee the sustainability and further development of the data collection methods, Trainer Guidebooks in Khmer (and English) could be produced. These guidebooks could be used in the training sessions and distributed to the participants to be used as a reference material (including e.g. check-lists and step-by-step guidance). So called training of trainers method could be considered for increasing the capacity of DIME staff. In training of trainers, first international and national short term experts train DIME staff for example to use selected data collection method. After training and fully mastering and using the method, they in turn train others. However, if this training of trainers method is used it is very important that sufficient amount of time should be allocated for learning and actual use of new methods before the new trainers train others, otherwise the quality of the collected data will be low. New trainers should have at least the opportunity to get support from experts (e.g. possibility to ask questions in the problematic situations from the experts). Also the quality of the teaching provided by newly trained trainers should be guaranteed. The role of research institutes and universities in capacity building should be planned in the inception phase of the project. The Institute of Technology of Cambodia (ITC) is the main university in Cambodia teaching energy issues and its expertise should be utilized. However, ITC needs additional capacity building in the field of energy modelling and policy planning. MFA will support a new regional Institutional Cooperation Instrument for Higher Education project HEI ICI SEED in Cambodia and Lao in 2011-2012. The purpose of the HEI ICI project is to enhance and promote Sustainable Energy Education, Research and Development at Department of Electrical and Energy Engineering at ITC and Faculty of Engineering at National University of Lao. The target of this partnership project is the capacity development in ITC, the project will help ITC to respond the increasing needs of renewable energy education. Overall objective of the HEI ICI project is to contribute to sustainable energy planning through improved energy related knowledge and expertise at national level. These two
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projects should work in close co-operation to map and exploit all possible synergies in energy statistics and planning sector training and education.

5.4 Project Organization

5.4.1 Unit Energy Statistics Office, Energy Modelling Unit and Project Management

Project activities implementation will be integrated within the General Department of Energy which is the main counterpart of the project. The Department, as mentioned earlier, must create the two entities necessary for the project operation: the Energy Statistics Office and the Energy Modelling Unit. The Energy Statistics Office will be created from the already existing Secretariat Office by strengthening and redirecting its activities. The provision of the staff under MIMEs budget is one of the pre-conditions of the implementation of the first phase of the project. This Office will also take the lead in project execution and coordination. Main tasks of the Energy Statistics Office include the following: Collect energy utilization information to identify and rank energy consuming sectors Prepare energy data survey methodology, carry out surveys and mechanisms for regular data collection Prepare annual national energy balance table Prepare annual national energy statistics book Maintain and manage energy database At least 5 staff with specific expertise will be required to carry out the above activities and to fulfil the offices mandate. These are shown below while their TORs are summarized in Annex 2. Energy Supply Expert Statistics Expert Information/database expert Energy End-Use Expert Rural Energy Expert Energy planning activities will be carried out in the second component of the project.. The Energy Modelling Unit will provide support to the Energy Statistics Office in project management. The main tasks of the Energy Modelling Unit include the following: Develop methodology for simulating future energy demand and forecasting. Prepare national energy and power strategy plans with estimated capital requirements and overall economic, social and environmental impacts Prepare policy recommendations and prioritizations
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Develop and make computer programs operational for energy data storage and analysis Review energy policy for pricing and taxation of petroleum products, develop and evaluate methods for regular revision of fuel prices in line with marketbased principles. To carry out these activities, the unit will require around 4 regular staff which will be integrated within MIMEs system funded by its budget allocation. The staff will be trained to meet the units required expertise: Energy Planning Expert (energy demand analysis and scenario building) Power Planning Expert (demand-supply analysis, supply technologies) Energy Planning Expert (renewable and other non-electricity supply systems) Environmental/Social Expert The Head of the Energy Statistics Office (HSO) will become the Project Director and will be assisted by the Head of the Modelling Unit (HMU). This Team will be supported by the projects Chief Technical Advisor (CTA) who will be the Project Co-Director and by the Project Officer (PO) who will be responsible for administration, finance, accounting and secretarial work. This group will constitute as the Project Management Unit (PMU). The PMU will be housed in MIME and must meet regularly (at least once a week) to discuss weekly activities and achievements. The CTA and the PO will be engaged by the Ministry of Foreign Affairs of Finland. The CTA will be a full-time international expert, while the PO will be a full-time national expert As part of government commitment, MIME will provide office space and will shoulder water, electricity and telephone (land line) expenses for this technical assistance project. PMUs tasks include the following: Prepare annual work and financial plans (budget) Prepare TORs and engage consultants Carry out procurement Project execution and coordination with different stakeholders Project monitoring and reporting of progress The projects organizational arrangement is shown in Figure 3:

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Secretary of State

General Department of Energy National Annual Workshop for Policy Planners

Steering Committee

Provincial DIME Department of Energy

Secretariat/Energy Statiscics Office (ESO) Department of Energy Development Energy Planning Office Department of Hydropower Energy Modelling Unit

Head of ESO Project Director

Chief Technical Advisor Co-Project Director Project Officer Project Management Unit PMU

Head of EMU

Rural and Provincial Electricity Office Department of Technical Energy Cooperation Office Atomic Energy Technology Office

Data Collection Working Group

Figure 3: Project Organizational Arrangement

5.4.2

Steering Committee

Oversight of the PMU will be carried out by the Steering Committee (SC). The SC will be composed of members from the following entities: Ministry for Foreign Affairs of Finland Ministry of Industry, Mines and Energy (chair) Electricitedu Cambodge National Institute of Statistics Ministry of Womens Affairs The SC will convene at least 4 times a year (though additional meetings could be called for as the need arises) and will be responsible for the following: approval of annual work plans, annual performance and financial plans make decisions concerning change in plans approve recruitment approve procurement

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5.4.3

Technical Assistance

This technical assistance will cover the following: Chief Technical Advisor (international, full-time) Project Officer (national, full-time) International experts (short term consultants) National experts (short term consultants) Office equipment and supply including those needed by the Provincial Department of Industry, Mines and Energy (DIME). Survey and data collection costs (including transportation) Costs related to administrative and capacity building activities including a yearly participation of the project team and Steering Committee to regional meetings, workshops and conferences. Chief Technical Advisor (CTA) The Chief Technical Advisor is an expert with international experience in energy planning. The CTA will be recruited full-time. The proposed allocated time would be 42 man-months (10.5 months per year x 4 years). The CTA will be engaged by Finlands Ministry for Foreign Affairs though his/her activities will be supervised by the Steering Committee. As presented earlier, the CTA will act as Project Co-Director with the Head of the Statistics Office as Project Director. The main responsibilities of the CTA are shown in Table 7. The table also provides some of the main responsibilities of the heads of Statistical Office and Energy Modelling Unit. Tasks Reporting Chief Technical Advisor Responsible for the development of the annual work and financial plans, Take the lead in preparing quarterly, progress and annual reports. Coordination Coordinate with MFA Finland Coordinate with international consultants Support Head of ESO and EMU Implementation Support Head of ESO and EMU in implementation (provide guidance) Provide training according to expertise Supervise surveys and trainings Supervise publications
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Head, Energy Statistics Office Head, Energy Modelling Unit Provide support and inputs to CTA

Coordinate with the SC, government agencies, MIME and DIME, all national agencies Take the lead in project implementation (based on annual work plans)

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Others

Manage procurement Supervise engagement of national consultants Recruitment of international experts with home office coordination

Provide inputs to procurement Assistance in selecting national consultants

Table 7: Responsibilities of CTA, Project Director and Deputy Director Program Officer (PO) The Program Officer is a national expert with experience in the energy sector. The PO will be engaged full-time throughout the project implementation. The proposed allocated time is 48 man-months (12 months/year x 4 years). The PO will be recruited together with the CTA by Finlands Ministry for Foreign Affairs. As also mentioned earlier, the PO will be mainly responsible for administration, finance, accounting and secretarial work. PO will also assist in administrative functions such as the following: Assist the CTA in preparing the annual work and financial plans, quarterly reports and progress and annual reports Assist the CTA in all the coordination tasks (international and national) Assist the CTA in procurement, in the engagement of consultants, and in office coordination. Short-term International and National Experts The Chief Technical Advisor (CTA) will be supported by short-term international and national experts. These are the following: Information system specialist Energy planning specialist Gender planning specialist (gender advisor) Power planning expert Statistics expert Social and environmental impact assessment expert Others based on specific demand which may arise in the later stage of project implementation The experts TORs are specified in Annex 4. National Experts may also be contracted for example for data collection, survey, analysis, training etc. as needed. 5.4.4 National Annual Workshop for Policy Planners

National Annual Workshop for Policy Planners is organised to increase the information flow between the Ministries and other energy data producing and using organisations also at the higher level. The workshop is organised once a year by MIME in cooperation with Project Management Unit and the aim is on the one hand to present project activities, results and following years action plan to policy planners, and on the
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other hand get feedback, input and comments from them. Members of the National Annual Workshop for Policy Planners are from the following organisations: Ministry of Industry, Mines and Energy Ministry of Planning Ministry of Economy and Finance Ministry of Public Works and Transport Ministry of Environment Ministry of Womens Affairs Ministry of Agriculture, Forestry and Fisheries Cambodian National Petroleum Authority Ministry of Rural Development Institute of Technology of Cambodia 5.5 Data Collection Working Group

Data Collection Working Group will be the institutional cooperation body for all energy data producing organizations. It will plan and organize the actual data collection and work in close cooperation with Project Management Unit. After the first meeting, Data Collection Working Group will be organized to sub-groups focusing on specific issues (e.g. household data collection). The whole Data Collection Working Group meets when necessary but mostly the work is conducted in small and more efficient sub-groups. Members of the Data Collection Working Group will be the following: Ministry of Industry, Mines and Energy National Institute of Statistics Ministry of Planning Ministry of Commerce Ministry of Public Works and Transport Ministry of Agriculture, Forestry and Fisheries Ministry of Womens Affairs Ministry of Environment Ministry of Rural Development Cambodian National Petroleum Authority Electricit du Cambodge National Committee for Sub-National Democratic Development (Ministry of Interior) 5.5.1 Time Schedule

The project time schedule is shown below, and in Annex 6. Project months 1-6: Inception Phase
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Project Management Unit, Energy Statistics Office and Modelling Unit are established and staffed Steering Committee meets twice during the Inception Phase First Data Collection Working Group meeting is organised, sub-groups are formed. Data needs, gaps in energy data are discussed as well as the training needed. Energy supply side(resources) are discussed and analysed (esp. biomass). Existing energy data collection methods used are evaluated (including currently used survey questionnaires and samples) Gender advisor (gender energy planning expert) and socio-economic/environmental expert are consulted to help to plan how to collect genderdisaggregated energy data as well as socio-economic and environmental data. Decisions are made concerning how data will be collected and by which organisations (e.g. household data). Necessary agreements and other practical arrangements relating to these decisions are made (e.g. with NIS) Logical Framework and Activities Table are elaborated and modified Database software is selected Annual work and financial plan is made, which also include the training schedule First National Annual Workshop for Policy Planners is organised in December 2011 where project and following years action plan are presented and discussed. Project months 7-18,: Data Collection Working Group sub-groups meet regularly to discuss the data collection needs, methods and analysis Energy Information System is established Steering Committee meets 4 times per year (more if necessary) First short-term consultants begin trainings, e.g. on data collection methods (survey implementation, energy statistics, energy balance) according to the training schedule made in the inception phase Survey planning and testing is organised based on the decisions made in the inception phase First round of data is collected and analysed. The methods (questionnaires, samples etc.) are revaluated and changed if necessary after the first round of data collection. More trainings (e.g. on environmental and social impact analysis) is organised according to the training schedule First Energy Balance of Cambodia (EBC) is constructed. After round(s) of comments EBC is published. Socio-economic, environmental and technological analysis based on EBC are made Proposal for change the Statistics Law is made, to improve the collection of data on a permanent basis Second National Annual Workshop for Policy Planners is organised to discuss the results and following years action plan is presented

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Project months 19-30: Trainings are organised according to the training schedule (e.g. on training on socioeconomic and environmental linkages connected to energy planning, energy planning methodologies and models, power planning) Data Collection Working Group (sub-groups) meet when necessary Steering Committee continuous to meet 4 times per year (more if necessary) Data collection and analysis. Revisions to methods, if necessary. Second Energy Balance is constructed by the end of the year. After round(s) of comments EBC is published. Third Annual Workshop for Policy Planners is organised in to discuss the results and following years action plan is presented Project months 31-42: Steering Committee continues to meet 4 times per year (more if necessary) Data collection and analysis. Revisions to methods, if necessary. Energy supply / demand model runs are made Cambodia's long term energy strategy plan is prepared, discussed, reported and disseminated. Power strategy plan is prepared, discussed, reported and disseminated

Project months 42-48: MIME prepares to take over all the activities. Financial plans for future are completed. Final revisions for data collection and analysis are made

5.5.2

Budget

The total budget estimated for the project is 2.3million Euros. The consultant company

selected through competitive bidding will be in charge of the financial management of the project including procurement. In the project anti-corruption measures should be taken into account; No offer, gift, payment, remuneration or
benefit of any kind should be made, directly or indirectly to any person whomsoever in view of the award or execution of project activities. Any act of this kind constitutes sufficient ground to justify termination of the agreement. The budget details are shown in Table 8 below. More detailed budget is shown in Annex 7.

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Table 8: Project Budget (in Euros) The international consultant fees cover the fees for the Chief Technical Advisor (CTA), and short term international experts. The short term international experts will have a total of 632 days in the field spread over the project duration of 4 years. For the IT system costs, this include 34 personal computers, 28 printers, 27 uninterruptible power systems for the Energy Statistics Office, Energy Modelling Unit and 24 offices of DIMEs. This also covers softwares, anti-virus protection, back-up devices, printer ink, laptop bags etc. Of the 34 computers mentioned above, each DIME would get one computer, preferably laptop that could be used also in the training sessions. 10 computers would be placed in Energy Statistics Office and Energy Modelling Unit. Training includes those carried out by Cambodian training institutions for the staff of 48 DIMEs (i.e. 2 persons per province to increase the project sustainability) and surveyors in 24 provinces, for all 3 project components. Surveys refer to budget estimated for primary data gathering for the project Component 1.

MONITORING AND EVALUATION

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6.1

Monitoring

Project monitoring will be carried out according to the Ministry for Foreign Affairs Guidelines for Program Design, Monitoring and Evaluation. The projects progress and results with respect to its objectives will be measured against the indicators specified in the Logical Framework. As mentioned in the previous section, during the inception phase the Project Management Unit (PMU) will review the Logical Framework, and propose modifications, if there is any, and prepare annual work and financial plan. Activities and indicators of the annual work plan must be derived from the Logical Framework. The format of work and financial plans must be according to MFAs guidelines. The work and financial plans will be submitted and presented to the Steering Committee (SC) for review and approval. At the middle of the project year, a progress report will be submitted to SC. At the end of each year, annual and financial reports will be sent to the approving body. Every quarter, the PMU will also submit briefing notes summarizing progress, plans and issues encountered to the Steering Committee. While these functions are assigned the PMU, the projects Chief Technical Advisor as Project Co-Director will be responsible for the overall project reporting system. The reporting system is summarized as follow: Annual work and financial plan at the beginning of each year Progress report at the middle of the year Annual work and financial reports at the end of the year Quarterly reports quarterly

6.2

Evaluation

Technical Evaluation MFAs guidelines cite two functions of evaluation: first, it is a learning tool to improve future aid policy and interventions, and second it provides basis for accountability. The emphasis for project evaluation is on what lessons can be learned from the project rather than whether the project succeeded or failed. In technical evaluation, project results will be compared with project objectives with clearly defined relevant and measurable indicators. Two evaluation missions will be carried out during the project lifetime. Midterm review will be carried out in mid-2013 to review the progress and difficulties encountered in achieving project objectives. Necessary variations may be recommended in the project approach in order to achieve the target results. During this mission, possible project extension may be explored, and project elements and focus areas could be identified. Final evaluation will be carried out in the first quarter of 2015 to analyze project results and achievements and to make recommendations concerning with possible project extension.

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A team of independent experts will be engaged by MFA to carry out mid-term review and final evaluation. Financial Auditing Financial auditing will be carried out based on the standard practices of MFAs technically assisted projects. Equipment procurement will follow the principles of transparency. procedures will be based on MFAs standard procurement procedures. Procurement

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Annex 1: Present Situation: Energy Sector in Cambodia

General Cambodia has a population of 13.4 million, of which around 80.5% live in rural areas (Statistical Yearbook 2008). It is a least developed country with the GDP per capita of USD 594 in 2007. The economy grew by 9.6% in 2007 while the average of 20042006 was 11%. Growth continued to rely on garments, construction, and tourism. Inflation accelerated to an average of 5.9% in 2007. Government estimates put the overall budget deficit in 2007 at 3.2% of GDP, which is narrower than the previous year. According to a debt-sustainability analysis conducted by the World Bank and IMF in mid-2007, external public debt is sustainable and the risk of debt distress is moderate. Despite strong expansion of the economy over the past decade, it remains narrowly based. The future of the clothing industry, the main engine of exports, is uncertain. With 80% of the population in rural areas, diversifying sources of growth and reducing poverty at a quicker rate require further efforts to develop agriculture, fisheries, and forestry. Remaining constraints to faster, sustainable rural growth include poor rural infrastructure, lack of access to finance, and weak institutional capacity in rural areas. The rapid economic growth also demands increasing amounts of energy. Energy Sources and Consumption Biomass is a main fuel supplying energy in Cambodia. Fuel wood plays an important role especially for rural households. The share of biomass fuels has decreased from some 85% of total energy consumption before year 1995 to 73% in 2005 whereas imported fossil fuels have taken up a larger portion. In ten years the energy consumption has almost doubled, from 2460 ktoe in 1995 to 4534 ktoe in 2005 (MIME 1996). The largest consumer, the residential sector accounted for 87% of total energy use followed by the transport sector with 9.5%. Agriculture (2.4%), industry (1.1%) and commerce (0.5%) account for relatively small share of energy use in Cambodia.

Figure 4: Total primary energy supply by source (left) and consumption by sector (right) in 2005
Source: IEA 2005 (International Energy Agency)

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Electricity Sector Generation and Consumption So far almost all electricity generation in Cambodia is based on diesel and heavy fuel oil engines (95%). Hydropower has yet only a relatively small (5%) share of the total supply. Electricity is also imported from neighboring countries, Thailand and Vietnam. Total electricity generation in 2007 amounted to 1,378 GWh, of which about 80% was generated in Phnom Penh. Import from Thailand and Vietnam amounted to 132 GWh. Total electricity sales was 1,223 GWh (up 25.4% from 2006), to a total of 286,660 clients (SYB 2008). Electricity consumption is very low. One reason is the low electrification rate; only about 23% of population has access to grid-electricity (NIS 2008). However, in five years from 2002 to 2006, the electricity consumption has doubled and the fast growth can be expected to continue as the national electrification programs proceed. In 2005, the share of residential consumption was about half (51%), commercial sector 33% and industry 16%.

Figure 5: Electricity consumption by sector in 2005

Source: IEA 2005

Power generation capacity The total generation capacity (max. output) in 2007 was 358 MW (NIS 2008). Electric power facilities were seriously damaged during the years of strife and the government continues to restore the infrastructure with the support from World Bank, Asian Development Bank, Japan, other donors, and the private sector. The development of electricity generation facilities is divided in three parts: a) solutions for Phnom Penh City; b) solutions for other cities, provincial towns and other significant towns; and c) other areas. The power supply development plan ranges from 2007 to 2020 divided in five stages. The first stage from 2007 to 2010 includes two power plant projects: 18 MW hydro power plant in Kirirom and 200 MW coal fired power plant in Sihanoukville (EAC).
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Transmission There are several high voltage transmission lines in Cambodia: 1-115kV line (23 km) around Phnom Penh and 2-115kV line (120 km) from Kirirom 1 hydropower plant to the Phnom Penh distribution system. According to development plans, the backbone transmission grid would be developed in two economic zones; the Southern zone consisting of Phnom Penh, Kandal, Kampong Speu, Takeo, Kampot and Sihanoukville and the Western zone consisting of Banteay Meanchey, Battambang and Siem Reap. Since 2009, electricity is imported from Vietnam to Phnom Penh through 230 kV transmission line. Rural electrification With the large majority of the population scattered in the rural areas and with the still low rate of industrialization the electrification ratio in Cambodia is remarkably low. After the turbulent decades the country has gained relative political stability and many foreign companies have invested on the commercial sector mainly within urban areas. This has further increased the gap in living standards between rural and urban population. As an example, the power demand has increased significantly in Phnom Penh; from 30 MW in 1995 to 170 MW in 2006. The Government has set a goal to achieve 100% level in village electrification by year 2020 including battery charging and 70% of the population connected to the power grid by year 2030. Japan International Cooperation Agency (JICA) has conducted a study Master Plan on Rural Electrification by Renewable Energy in Cambodia (2006), in response to the request from the Government of Cambodia. According to the study, the challenging rural electrification objective could be achieved by installing mini-grids powered by renewable energy sources and by solar home systems in scarcely populated areas. Energy Resources Fossil Fuels Currently the country relies heavily on the importation of fossil fuels for electricity production and a growing share of electricity imported from Vietnam and Thailand. The transport sector depends on imported diesel, kerosene and gasoline. Cambodia has some coal deposits in the provinces of Stung Treng, Preah Vihear and Kampong Thom. More importantly, test drills have revealed the potential existence of presumably large offshore oil and gas fields in Cambodias portion of the Gulf of Thailand. Consortiums of foreign oil companies have signed concessionary agreements with the Royal Government of Cambodia and began exploration in early 2003. Proven reserves have been estimated at 700 million barrels of oil and up to 5 trillion m3 of gas (World Bank 2007). Actual reserves may be much more significant. Commercial exploitation is scheduled to start in 2011 for oil, yielding an estimated 10% of GDP and exceeding any other source of government revenues, including the combined annual value of
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international development aid. These revenues would have significant economic, social and environmental impacts on the country. Hydropower There are two commercial-size hydropower plants in Cambodia with a total installed capacity of 13.37 MW. The Asian Development Bank (ADB) has estimated that Cambodia has the potential for an installed capacity of 8,600 MW of hydropower generation, while MIME has estimated it at 10,000 MW (Hundley 2003). Approximately 50% of this potential capacity is located on the Mekong River, 40% on tributaries to the Mekong, and 10% is from the South-Western coastal areas. Lately the Master Plan Study on Rural Electrification by Renewable Energy in the Kingdom of Cambodia (JICA 2006) estimated the hydropower potential of Cambodia at around 15,000 MW. MIME has formulated a short term plan to develop 358 MW of hydropower, with Kamchay project at Kampot province as the biggest plant, 193.2 MW. The construction of the plant was started in 2006 by Sinohydro and is expected to be completed in 2011. In the long-term MIME seeks further to develop an additional 2,800 MW of hydropower. Biomass Biomass resources are abundant in Cambodia. Approximately 70-75% of total national energy consumption is based on biomass, mainly fuel wood and charcoal. Fuel wood is by far the main source of energy for cooking with urban areas shifting to charcoal. Still more than 90% of the rural households depend on firewood. Cambodia has a large potential to generate energy from biomass and agricultural residues such as rice husk and corn cops as well as to use ethanol production and cogeneration in the sugar industry. Forests in Cambodia have been severely degraded due to widespread logging, land clearing, firewood and charcoal production over the last decades. The forest coverage in 1960 was 73% of the total land area of the country. It has decreased rapidly to 58% in 1998 (MOE 2002) and it is expected to decrease further to 5056% in 2010 (FAO 1997). The trend has been attributed mainly to commercial and illegal logging and economic land concessions. The total fuel wood consumption was estimated at about 6 million m3 while log production was estimated at 1.5 million m3 in 1995 (World Bank and others 1995). The total household demand for firewood is estimated to decrease over the next decades. However, the use of charcoal will increase resulting in only a slight reduction of the total firewood demand by 2030 (UNDP 2007). Additionally, the garment industry and brick works use large amounts of firewood for their boilers and kilns, and the supply of rubber wood will dry up during the next years. Biomass gasification for example for ice plants also increases the demand for firewood. Solar Power Cambodia receives a relatively high level of solar radiation throughout the year. NASAs global solar radiation model estimates the daily average to be about 5.10 kWh/m2, with a monthly average deviation of 11%. (JICA MP).
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In remote areas that are sparsely populated it would take significant time and capital investment to realize electrification by grid extension. In such areas, renewable energy (mainly solar and mini-hydro) resources can be the best option since they are local energy sources and can be of small size matching the scale of local villages and communities. Between 1997 and 2002 over 200 kW of PV systems had been installed in Cambodia for a variety of applications including remote communication systems, water pumping, community lighting, village supply, battery charging and individual home systems. Several solar energy companies have been active to offer solar home systems. Khmer Solar, for instance, has sold a few thousand mainly 80 W systems over the last years with interesting loan schemes. The company, however, has found out that collecting money is not easy, and therefore, it has recently started to offer ready sets of solar panels, charge controllers and cables at regional markets that families can install by themselves and connect with their own battery. Only in few cases they asked Khmer Solar to help to install the system, which makes it slightly more expensive. Kamworks, another solar company has developed the Moonlight product, a small LED light with solar panel that families can use instead of kerosene lighting. Moonlight is produced in Cambodia. The Rural Electrification Fund supported by the World Bank is about to offer 12,000 solar home systems covering both renting and owning schemes. Wind Power Appropriate wind monitoring data does not exist for Cambodia, Even though, the wind resources of Cambodia are not considered substantial, would be useful to assess the countrys wind energy resources in locations where wind power could make sense locally. Currently the only wind turbines installed in Cambodia are small scale turbines, which have either been donated as part of a multi-lateral demonstration project, or else purchased by private households to charge batteries for rural houses with no grid access. The Wind Energy Resource Atlas of Southeast Asia (the World Bank) indicates that Cambodia in general has relatively low wind energy resources compared to some neighboring countries. However, some of Cambodias elevated plateaus and mountain ranges are highlighted as having areas with high potential wind energy. The atlas estimates that a total area of 345 km2, or 0.2% of Cambodias land area, has a predicted annual average wind speed above 7 m/s and this corresponds to approximately 1380 MW of potential wind turbine capacity with an annual generation of 3627 GWh. A Belgium consortium of consultants, with finance from the EU, has undertaken a feasibility study for a wind mill development project in Sihanoukville in cooperation with the technical energy department from MIME. It found out that on the small mountains at the port of Sihanoukville the wind speed would be sufficient to make a windmill project economically feasible. However, lack of investors has slowed down the implementation process of this project. More recently, an NGO CDI (Cambodian Development Institute) developed a wind water pump with rope pump techniques that can replace diesel pumps for agricultural purposes. More than 20 of such windmills have been installed. Institutional Framework General Department of Energy, Ministry of Industry, Mines and Energy
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Energy is one of three main activities of MIME employing some 100 staff out of 700 in total in MIME. The General Department of Energy comprises three departments, (i) Hydropower, (ii) Technical Energy, mainly focusing on renewable energy other than hydro, and (iii) Energy Development. In addition, the Wood Energy Working Group of Cambodia, lead by General Department of Energy of MIME, has been set-up as the entity to develop the Cambodian National Wood Energy Statistics and to set-up & update the database to allow the preparation of Cambodias Wood Energy Policy. However, this Working Group has been rather passive due to lack of funding.

Figure 6: Organization chart of Ministry of Industry Mines and Energy- MIME

Source: www.mime.gov.kh, 2009

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Figure 7: Organization chart of energy activities in MIME

Source: JICA Overview on Power Sector in Cambodia, JICA June 2009, updated by information of Mr. Kunleang in Nov. 2009

Power Sector Organizations The power generation and grids covering Phnom Penh City and other major cities are the responsibility of the public sector (MIME and EdC). Figure 8 below shows the actors involved. Rural electrification in Cambodia is planned to be accomplished on one hand by government driven grid extension (on-grid) and on the other hand to a large extent by private/community driven electrification in the off-grid areas. There are already several hundred private small scale power production companies around the country.

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Figure 8: Organizations of the Power Sector Electricit du Cambodge (EDC) The state owned electric utility, Electricit du Cambodge (EDC), was established in 1958 and re-established in 1996 as a state-owned limited liability company responsible for the generation, transmission and distribution of electric power throughout Cambodia. The Ministry of Mines and Energy, and the Ministry of Economy and Finance are co-owners of EDC. EDCs coverage is limited to the provincial capitals, and does not extend to the rest of the province itself. At the national level, EDC accounts for more than 50% of the installed generating capacity while the IPPs contribute almost 50%. Rural Electricity Enterprises (REE) An estimated 600 Rural Electricity Enterprises (REE) operate small diesel-powered mini-grids to sell power to an estimated 60,000 customers (Meritec Ltd 2001b, SME 2001). The REEs are usually small locally-owned businesses with low voltage distribution lines which service from 30 to 2,000 local households and businesses. In addition, an estimated 8,000 battery charging businesses provide services to households and businesses. The REEs have to obtain a license from EAC if the capacity exceeds 1 kW. If the capacity is below 1 kW, they only need a permit from the Provincial Department of Industry, Mines and Energy. EAC has up-to now licensed about 200 REEs. Cambodia has the highest electricity costs of any ASEAN country, even when only comparing government rates in urban areas. Electricity costs in Cambodia range from USD0.09/kWh to USD0.53/kWh for EDC, and are much higher for small private electricity providers in rural areas or battery charging services, with tariffs sometimes higher than USD1.00/kWh (De Lopez, Praing & Toch 2003, Hundley 2003).
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National Institute of Statistics, Ministry of Planning In addition to General Department of Energy in MIME, the National Institute of Statistics (NIS) as the part of Ministry of Planning is the other key actors in energy statistics and energy planning. NIS is the main coordinating agency for statistics in Cambodia. The NIS compiles and consolidates statistics provided by decentralized offices and also collects primary data through household and establishment surveys and population, agricultural and economic censuses. Many development partners have financially and technically assisted NIS since 1993. Cambodia has a decentralized statistical structure. There are statistics bureaus and sections within planning and statistics departments of various Ministries and in the planning and statistics units in the provinces and districts. NIS has now 300 staff at central level and 380 staff at local level. The statistics personnel of ministries and institutions are about 150 staff.

Figure 9: Organization chart of Ministry of Planning

Source: www.nis.gov.kh, 2009

The NIS is headed by a Director General who is assisted by Deputy Directors General. It has four Departments: Social Statistics Department, responsible for collecting and compiling primary data on social affairs, education, health, information and culture; Demographic Statistics, Census and Survey Department, responsible for conducting censuses and surveys as well as data processing, statistical and demographic analysis and dissemination of results; General Statistics Department, which comprises of the Bureau of National Accounts, the Bureau of Consumer Price Indices, Bureau of Administration and Bureau of Statistical Standards, Classification, Coordination and International Cooperation; Economic Statistics Department, responsible for collecting and compiling primary as well as secondary data on agriculture, forestry, industry, commerce, construction, telecommunication, transport, tourism and environment.
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Figure 10: Organization chart of National Institute of Statistics

Source: www.nis.gov.kh, 2009

The NIS has recently reorganized itself to meet the increasing demand of wide range of statistics of good quality. The NIS has now 7 departments. The new departments are: National Account Department, ICT Department, Statistical Standard and Analysis Department and Statistical Policies and Cooperation (Replacing General Statistics Department). The NIS is working to prepare the Sub Decree on designated official statistic. The mechanism of coordination include Statistics Advisory Council (SAC) and Statistics Coordination Committee (SCC). The 4th SCC meeting took place in May 2009 to look at the sub-decree on designated official statistics. The upgrading of staff skills through training both in-country and in international institutions, the establishment of in-house data processing capacity, the collection of primary data through the 1998 Population Census and various surveys, and the increased capacity to serve the needs of data users have in the recent past greatly contributed to enhancing the role of NIS in the statistical system of Cambodia. Energy projects and energy data collection by development assistance organizations Several development assistance organizations are conducting different energy related projects in Cambodia. These include ADB, World Bank, GERES, JICA, SNV and UNDP. GERES is mainly working on improved cook stoves and sustainable charcoal and it has collected some energy statistics but only in few provinces. SNV has a biogas program. ADB, World Bank and JICA are mostly working on increasing the access for electricity. ADB is shifting from energy to transportation, whereas the World Bank will focus more on energy sector. The World Bank has had a project Cambodia Statistical Development (2005-2008). World Bank has also prepared a rural electrification plan in 2010 (Rural Electrification and Transmission Interconnection Project (RETP), P104470). JICA has conducted several energy projects and has several publications available (See JICA (2009) Overview on Power Sectors in Cambodia). In its development assistance in energy, JICA has focused on increasing access to electricity. There have not been any projects on wood fuel energy. JICA has also funded energy balance project in 2002 in Cambodia but very little information is available concerning the project. It was a joint project between MIME, ITC and EDC to develop a Master Plan for MIME. No comprehensive report was produced by the project. However, JICA has
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done a Master Plan Study on Rural Electrification by Renewable Energy in the Kingdom of Cambodia (2006). It covers micro hydro, solar power, and wind but not biomass. UNDP has conducted a research Residential Energy Demand in Rural Cambodia: An Empirical Study for Kampong Speu and Svay Rieng (2008) that analysed wood consumption in rural households in two provinces. The questionnaire used in the report is available. UNDP is currently funding small pilot projects on cooking stoves and biogas but is shifting its orientation from energy to climate change. SIDA has not funded energy projects but it has provided capacity development in NIS since 2006. This expertise should be used to the extent possible in the Energy Balance project, especially relating to the household energy data and the different socioeconomic issues relating to energy.

Legal Framework Electricity Law The Electricity Law of the Kingdom of Cambodia, promulgated in 2001, governs the operations of the electric power industry and the activities of licensees that provide electric power services. The Law emphasizes private sector involvement following the principles of: (i) the protection of the rights of consumers to receive reliable and adequate supply of electric power services at reasonable cost, (ii) the promotion of private ownership of the facilities for providing electric power services, and (iii) the establishment of competition wherever feasible within the electric power sector. The Electricity Law establishes an independent regulating and enforcement body for electric power services, the Electricity Authority of Cambodia (EAC). The EAC is a legal public entity, being granted the right from the Royal Government of Cambodia to be an autonomous agency to regulate electricity services. Every power service supplier is required to have a license issued by EAC.

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Figure11: Energy sector institutional framework

Source: Report on Power Sector of the Kingdom of Cambodia for the Year 2007, Compiled by EAC

Statistics Law The purpose of the statistics law is to govern all matters relating to collection, processing, compilation, analysis, publication and dissemination of statistical data and pertains to the whole Kingdom of Cambodia. The NIS is responsible for making official statistical policies in establishing an integrated National Statistics System, encompassing all designated official statistics and statistical organizational units within ministries and institutions. The "Statistics Advisory Council" shall provide advice to the Ministry of Planning in facilitating the development of the National Statistics System, and the "Statistics Coordination Committee" shall assist the NIS in the technical coordination of the official statistics. Sub-Decree on Organization and Functioning of the National Statistics System The Sub-Decree on the Organization and Functioning of the National Statistical System defines in more detail the roles and tasks of different stakeholders in the National Statistics System. Energy Planning and Policy Framework Cambodia's power sector was severely damaged by years of war and neglect. Only 23% of households have access to electricity. Cambodias public electricity supplies at present comprise 22 small isolated power systems, which serve Phnom Penh and the capital towns of the provinces. The largest system is in Phnom Penh, which has a population of around 1 million and 103,000 customers. The system in Phnom Penh has
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a peak demand of 70 MW and a power generation capacity of 110 MW, out of which 50 MW is provided by one IPP and another short term IPP. A second IPP is scheduled to come on line by year 2001 to provide an additional capacity of 60 MW. The total installed capacity for provincial capitals are estimated 37 MW with sizes range from 300 kW to 5 MW. As a result of the small size of generation units, dependence on oil-based generation and large losses in distribution, the unit cost of electricity is the highest in the region Power Sector Development Policy The RGC has formulated an energy sector development policy in October 1994; its objectives are: To provide an adequate supply of energy throughout Cambodia at reasonable and affordable price, To ensure a reliable, secure electricity supply at prices, which facilitate investment in Cambodia and development of the national economy, To encourage exploration and environmentally and socially acceptable development of energy resources needed for supply to all sectors of the Cambodian economy, To encourage efficient use of energy and to minimize detrimental environmental effects resulting from energy supply and use Sector Reforms and Rehabilitation of Power Sector To achieve the above objectives, the government has undertaken sector reform measures and rehabilitation of the power sector with the support of multilateral and bilateral agencies which aims at: Re-establish an adequate supply of electricity Nationwide through direct support of donors and private participation in generation, Strengthen sector managerial and implementing capability, Create the environment required for sustained and efficient development of the power sector, open to competition and private participation Extending its power sector objectives to Rural Areas Sector reform and rehabilitation of the power sector have been in progress since 1994. With the rehabilitation work undertaken, the power supply in Phnom Penh and Sihanoukville has improved considerably. Rehabilitation of the distribution network in Phnom Penh, Siem Reap and Sihanoukville was completed in 1999. The reviewing study of electrification of provincial towns under ADB assistance has been completed and a Power Transmission Master Plan of Cambodia and Rural Electrification Strategy under World Bank sponsorship. Objectives of the Cambodian Power Sector Strategy Cambodia faces a major challenge to develop an adequate and reliable source of electric power in the years ahead. Based on intensive studies of the best means of providing a national electricity supply network, the Royal Government has developed a
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long-term power sector strategy for Cambodia to meet the growing demand for electric power over the next 20 years. The strategy establishes the sectors policy and action plans for: Investment in the power sector Priorities for generation and transmission, Establishment of the power sector's Regulatory Framework Commercialization of EDC, Private sector participation Provincial and Rural Electrification While the broad outline for the power sector strategy and action plan are spelled out, the elaboration of these plans and the development of specific interventions require reliable energy statistics and information. Rural Electrification Strategy Eighty percent of the population of Cambodia is located in rural areas and only a small percentage of the rural population have access to electricity. The provision of rural energy is a key factor in the rehabilitation and development of Cambodia. Electricity is very important for the improvement of living standards, and an important infrastructure requirement for agricultural and small-scale industrial development in rural areas The RGC has formulated a rural electrification strategy to provide the best supply option for rural areas. Rural electrification schemes will be selected on the basis of the following criteria to ensure equity in access to supplies: balanced development in the provinces at different levels of economic growth, choice of the scheme having the highest cost/benefit ratio and economic rate of return, provision of electricity to a certain amount of villages in each province. Similarly, effective rural electrification interventions from RGC requires careful planning and reliable energy sector information.

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Annex 2: Terms of Reference of Experts A. MIME Energy Statistics Office

1. Energy Supply Expert Task: Responsible for energy supply analysis (resources, technologies, costs, financial and economic analysis) as well as to oversee the overall structure and data content of the energy balances and other energy statistics publications; Experience and skills: Minimum 2 years of experience of energy sector 2. Energy Statistics Expert Task: Responsible for data surveys, analysis of results and linking the energy statistics system with the National Statistics System of NIS; Experience and skills: Minimum 2 years of experience in statistical analysis and data surveys 3. Information System-cum-DataBase Expert Task: Responsible for the design and construction of energy databases with input and output routines, internal consistency checks of data, possibilities of database extension as may be needed in the future; and more importantly to establish an Energy Information System, with links and agreements with all stakeholders to ensure a steady and regular two-way flow of data and information in the system; Experience and skills: Minimum 2 years of experience in IT, preferably in database design and construction. University degree is required. 4. End-use Energy Expert Task: Responsible for energy end-uses (technologies, costs, economic and financial analysis) in end-use sectors (industry, transport, residential, commercial, etc) and assistance in the design and implementation of surveys. Experience and skills: Minimum 2 years of experience in energy end-uses analysis and services. 5. Rural Energy Expert Task: Responsible for energy data of rural households, small and medium size industries, forestry and agriculture sector and assistance in related surveys as may be needed; Experience and skills: Minimum 2 years of experience in dealing with rural households and small industries. 6. Director of Statistics Office The Director is an expert in any of the above expertise with at least five years of experience in middle level management of MIME

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B. MIME Energy Modeling Unit

7. Planning Expert (Demand) Task: Responsible for undertaking energy demand analysis and forecasts. Take the lead in preparing the national energy plan for Cambodia. Experience and skills: University degree in Engineering or Economics. Experience in energy demand analysis and forecasting is an advantage. 8. Power Planning Expert (Demand-Supply Planning) Task: Responsible for carrying out supply-demand analysis in national and minigrid systems and the preparation of the power strategy plan. Experience and skills: University degree in Engineering. Experience in electricity system planning and renewable energy is an advantage. 9. Energy Planning Expert (Non Electrical Systems) Task: Responsible for undertaking analysis of non-electricity energy supply systems such as primary energy resources (wood, charcoal, agricultural residues, biogas, etc) and non electricity use in energy consuming sectors. Experience and skills: University degree in economics, engineering or social sciences. Experience in renewable energy resources is an advantage. 10. Environmental/Social Expert Task: Responsible for the undertaking assessments of economic, social and environmental impacts of energy systems and technologies. Experience and skills: University degree in social sciences, economics or engineering. Experience social and environmental impact assessment is an advantage.

C. Short-term International and National Experts

11. Information System Specialist Task: Responsible for capacity building activities related to design, creation and maintenance of comprehensive and flexible energy database. Experience and skills: University degree/special training in computer science/information technology and having at least 3 years experience in implementing national energy database management systems. 12. Energy planning specialist Task: Responsible for capacity development related to i) sectoral energy demand analysis and forecasting and ii) preparation of energy balance Masters degree in energy planning and economics or relevant discipline, with knowledge and experience of at least 3 years in energy demand modelling and planning. Experience in energy statistics and balance construction, as well as environmental and social impacts, is an advantage. 13. Gender planning specialist (Gender Advisor) a. Task: responsible of integrating the gender perspective in energy planning, especially in household level energy planning and prioritization b. Experience and skills: University degree in social science and experience in analysing the gender aspects of energy production (e.g. fuelwood collection)
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and energy use (especially at household level). Experience in integrating the gender and health aspects in energy planning is an advantage. 14. Power planning specialist Task: Responsible for capacity development related to power planning and in preparation of national power strategy plans. Experience and skills: Masters degree in power planning and economics or relevant field with experience in electricity load analysis and forecasting, and in power strategy plan preparation using different models and knowledge on energy technologies, costs, environmental and social impacts. 15. Statistics expert Task: responsible for capacity building related to energy survey, preparation of survey questionnaires and data analysis. Experience and skills: Masters degree in statistics, econometrics or social science, with knowledge and experience in undertaking primary surveys, planning the sample, preparation of questionnaires, and data analysis. 16. Social and environmental impact expert a. Tasks: Responsible for capacity building in social and environmental impact assessment of energy planning and projects b. Experience and skills: University degree in social sciences or economics. Experience in carrying out social and/or environmental impact assessments. Experience in integrating poverty aspects in energy planning is an advantage. 17. Others Other short term experts may be engaged to support the activities of the Energy Statistics Office and Energy Modelling Unit. Expertise needed may be related to renewable energies and energy efficiency in the areas of resource assessment and measurement, energy savings potential assessment, technologies, costs, market, economic and financial analysis, etc.

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Annex 3: Job Descriptions

1. Chief Technical Advisor (CTA), 42 man-months The Chief Technical Advisor should be an Energy Planning Specialist or a Power Planning Specialist, or may take the lead of one of the main tasks of either the Energy Planning Specialist or the Power Planning Specialist. Duty Station Counterpart Academic Qualifications Professional experience Phnom Penh, Cambodia; long-term Project Director, Head of Statistics Office, MIME At least Masters Degree in Social Science, Economics or Engineering Minimum 10 years of relevant work experience in consulting, industry or energy sector administration Minimum 5 years of experience in project management/team leader of multidisciplinary project teams in developing countries; experience in Asia and particularly in Cambodia is an advantage Experience in energy planning, especially in energy policy, renewable energy and energy efficiency planning Excellent human resource management skills Leadership, motivation and good interpersonal skills Fluency in written and spoken English; knowledge of other languages is an asset Ability to work and communicate in a multi-sector team and across cultural and gender divides Facilitation and good communication skills Good reporting skills Familiarity with Finnish Development Cooperation Guidelines is an advantage The following duties are to be implemented jointly by the Chief Technical Advisor (CTA) and the Project Director (Head of Statistics Office). The division of tasks between the two Project Co-Directors are spelled out in Section 6.2.3. Is responsible for the planning, coordinating of all project activities Is responsible for annual and short term budgeting Is accountable for the management of budget for international and regional consultancy and the running costs for international and regional technical assistance Is responsible for reporting on the Project according to the guidelines of the Government of Finland
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Other Required Skills

Duties

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Is responsible for personnel management of project staff Is in-charge of preparing the TORs for short term consultants and the overall supervision of consultant outputs Will be responsible and coordinate the institutional capacity building and human resources development activities of the Project Will be responsible for the procurement of equipment based on Finnish Development Cooperation Guidelines Is in-charge of coordination with different project stakeholders Will liaise with the coordination committee members as required

2. Energy Planning Specialist, 10 man-months Duty Station Counterpart Academic Qualifications Professional experience Phnom Penh, Cambodia; intermittent Head of Energy Statistics Office and Head of Energy Planning Unit, MIME At least Masters Degree in Social Science or Engineering Minimum 10 years of relevant work experience in consulting, industry or energy agencies on energy planning particularly in the fields of energy policy planning, energy balance preparation, and sectoral energy demand analysis and forecasting Minimum 5 years of experience in international projects in developing countries; experience in Asia and particularly in Cambodia is an advantage. Excellent human resource management skills Leadership, motivation and good interpersonal skills Fluency in written and spoken English; knowledge of other languages is an asset Ability to work and communicate in a multi-sector team and across cultural and gender divides Facilitation and good communication skills Good reporting skills Familiarity with Finnish Development Cooperation Guidelines The energy planning specialist will be responsible for capacity building activities related to energy balance preparation, energy modelling and energy policy
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Other Required Skills

Duties

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planning, and for ensuring delivery of target indicators. Specific duties include the following: Conduct training on tools and methodologies including socio-economic and techno-economic analysis, provide guidance and supervise the preparation of energy balances. Together with energy statistics expert (short term), provide training on energy surveys, sampling and statistical methods, and prepare questionnaires for energy survey Together with the information technology expert, provide training and assist in the establishment of the energy information system Provide training on energy supply and demand forecasting concepts, tools and methodologies; recommend appropriate supply and demand forecast models, provide guidance and supervise the preparation of energy supply and demand forecasts and scenarios; supervise primary surveys including preparation of questionnaires in establishing baseline techno-economic data; carry out workshops with stakeholders to present energy supply and demand scenarios and their assumptions; supervise the preparation of energy supply-demand scenario report. Assist the Power Planning Expert or short term consultant in undertaking training and supervising the preparation of electricity load analysis and forecasting. Supervise the preparation of energy yearbook and power statistical yearbook Participate as resource person in other trainings and capacity building activities when need arises.

3. Power Planning Specialist, 7 man-months Duty Station Counterpart Academic Qualifications Professional experience Phnom Penh, Cambodia; intermittent Head of Energy Planning Unit, MIME At least Masters Degree in Science or Engineering Minimum 10 years of relevant work experience in consulting, industry or power utilities on, electricity load analysis and forecasting and power strategy plan Minimum 5 years of experience in international projects in developing countries; experience in Asia and particularly in Cambodia is an advantage.
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Other Required Skills

Excellent human resource management skills Leadership, motivation and good interpersonal skills Fluency in written and spoken English; knowledge of other languages is an asset Ability to work and communicate in a multi-sector team and across cultural and gender divides Facilitation and good communication skills Good reporting skills Familiarity with Finnish Development Cooperation Guidelines The energy planning specialist will be responsible for capacity building activities related to electricity load analysis and forecasting, preparation of and implementation of power strategy plan, and for ensuring delivery of target indicators. Specific duties include the following: Provide training on electricity load analysis and forecasting concepts, tools and methodologies; recommend appropriate load forecast model, provide guidance and supervise the preparation of electricity load forecast; supervise primary survey including preparation of questionnaires in establishing baseline techno-economic data; carry out workshops with stakeholders to present load forecast scenario assumptions; supervise the preparation of electricity load forecast report. Provide training on power strategy planning concepts, tools and methodologies; recommend appropriate models, provide guidance and supervise the preparation of long term power strategy plan; supervise primary surveys including preparation of questionnaires in establishing baseline data; carry out workshops with stakeholders to present power strategy plan scenarios and their assumptions; supervise the preparation of the power strategy plan.

Duties

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4. Project Officer, 48 man-months (national position) Duty Station Counterpart Academic Qualifications Bachelor Degree in Social Sciences or Engineering with specialization related to Project Management, Public Administration or Economics Minimum 5 years of relevant work experience in consulting, industry, government agency or power utilities Experience working with international organizations in Cambodia is an advantage. Excellent human resource management skills Leadership, motivation and good interpersonal skills Fluency in written and spoken English; knowledge of other languages is an asset Ability to work and communicate in a multi-sector team and across cultural and gender divides Facilitation and good communication skills Good reporting skills Familiarity with Finnish Development Cooperation Policy and Practices is an advantage. The Project Officer will provide administrative support to the Project Director and CTA. Specific duties include the following: administration finance accounting secretarial activities Phnom Penh, Cambodia; full-time, national position

Professional experience

Other Required Skills

Duties

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Annex 4: Logical Framework

Intervention Logic Overall Development Objective To contribute to planning and implementing of Cambodian climate change policy and programmes through development of sustainable energy data and planning system which promotes inclusive growth and responds to poverty reduction and sustainable development goals of Cambodia. The minimum energy needs of the Cambodian population met in a sustainable way. Access to sustainable and reliable energy sources of the Cambodian population and different actors is secured in a cost efficient way. Share of sustainably produced renewable energy in the overall energy balance of Cambodia. Improved socioeconomic conditions of the population with due emphasis on gender related aspects, including reduced poverty, reduced negative heath impacts from burning fuel wood and less time spent daily to gain access to energy (e.g. collection of fuel wood) Project Purpose Enhanced capacity of MIME to analyze and prepare energy sector intervention policies and plans and related climate change mitigation and adaptation interventions and to analyse and monitor the impacts of the implementation of these plans. A national energy sector strategy plan, is prepared and published by MIME, including: i) a comprehensive assessment of the current energy balance; ii) scenarios for future energy demand and supply; and iii) an intervention and policy plan to balance supply and demand within the set environmental (including climate change mitigation and adaptation) and socioeconomic targets. Gender and poverty issues mainstreamed into energy planning MIME able to update the analysis and produce policy plans at regular intervals on a selfsustaining basis. Component 0: Project Management Objectives Sustainable organisational arrangements in MIME for project implementation and its follow-up in place. Indicators and Targets Adequately staffed Project Management Unit, Energy Statistic Office (ESO) and Energy Modelling Unit (EMU) within the MIME in operation (taking also into account proper gender balance), of which ESO and EMU have the required financial resources and trained staff to continue to operate also after the Sources of Verification Project monitoring reports and final evaluation. Assumptions MIME allocates the required space and financial resources for the establishment of the proposed units and for continuing the operation of ESO and EMU also after the project. Qualified and motivated staff to work in the An independent evaluation of the Strategy plan, prepared with due emphasis on i) the environmental and social sustainability and contribution to meeting Cambodias socioeconomic and environmental targets, ii) the reliability of the data used, iii) the credibility of the assumptions made; and iv) the capacity of the staff of MIME to update the analysis and produce policy plans on a selfsustaining basis after the project. Reports published by MIME after the project (post-project monitoring). Availability of adequate and reliable primary data and enhanced capacity of the staff of the statistical office and the energy planning unit of MIME to conduct the analysis. Human development reports and national energy statistics. Governments ability to leverage adequate financing for the required investments and capacity to provide policy interventions. Indicators and Targets Sources of Verification Assumptions

project. Main Results Established Project Management Unit (PMU) Achievements Indicators Adequately staffed PMU established and active. Activities Assigning the space for, tendering the staff positions and furnishing the PMU

units can be found. Assumptions MIME allocates the required space and financial resources for the establishment of the proposed units. Qualified and motivated staff to work in the units can be found.

Established Energy Statistics Office (ESO) to the already existing Secretariat Office of the General Department of Energy.

Adequately staffed ESO established and active

Finalising the ToR for the Energy Statistics Office and its staff expected to consist of 4-6 experts to collect energy information; carry out surveys; prepare energy balance table; prepare annual national energy statistics book; and maintain the energy database. Assigning the space for, selecting and appointing the staff and furnishing the ESO.

Approval at MIME's level (Ministers and ViceMinisters) of the creation of a Statistics Office within the General Department of Energy and assignment of the required space and financial resources for it. Qualified and motivated staff to work in the units can be found. Approval at MIME's level (Ministers and ViceMinisters) of the creation of the Energy Modelling Unit (EMU) under the Department of Energy Modelling and assignment of the required space and financial resources for it. Qualified and motivated staff to work in the units can be found. Approval of the National Annual Workshop for Policy Planners by different participating organisations

Established Energy Modelling Unit (EMU) under the Department of Energy Modelling.

Adequately staffed EMU established and active

Finalising the ToR for the EMU and its staff expected to consist of 3-5 modelling experts to operate the energy models and tools (such as socio-economic models, energy economic models, energy demand, electricity load forecasts, etc.). Assigning the space for, selecting and appointing the staff and furnishing the EMU

Annually organised National Workshop for Policy Planners

Project activities, results and action plans are presented and discussed in the workshop

Inviting the members to and organising of the National Annual Workshop for Policy Planners.

Component 1: Establishment of an Energy Information System (EIS) and Database Objectives Making detailed and quality controlled energy consumption and energy resource data available, which is linked to socio-economic and environmental data and which can be analysed and aggregated by user defined queries through an easy-to-use interface to serve the different reporting, energy sector analysis, modelling and planning needs. Indicators and Targets The required primary data regularly received by MIME on the basis of the agreements and data collection mechanisms established by the project. Annually published statistical reports by MIME for an energy and energy sector related environmental balance. Gender disaggregated household energy data collected and published. Information from the EIS is accepted and used as the main source of information for the Sources of Verification Published energy plans and annual statistical reports of MIME. Other publications referring to the database as the main source of consolidated energy related information in Cambodia. Assumptions Participation and cooperation of other government agencies and provincial authorities to facilitate the collection of the required primary data and its regular updating. Adequate, continuing funding of the public authorities to facilitate the collection of the required primary data at agreed intervals.

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agreed energy planning models and for meeting the international reporting obligations of the Government to the ACE, IEA and the UNFCCC Secretariat. Main Results Institutional co-operation arrangements together with adequate quality control measures for obtaining the required primary data in a cost-effective and sustainable way in place Achievement Indicators The Data Collection Working Group is established and is meeting regularly at the agreed intervals. Energy data collection plan agreed by the key stakeholders. Signed institutional agreements and/or eventual new legal/administrative orders for obtaining the required primary data from different sources. Activities Analysing the type and the level of detail of the required primary data for a consistent and reliable energy information system (EIS) to serve the different regional, national and international energy sector planning and reporting needs of the Government. Elaborating the most cost-effective and sustainable data collection methods and related institutional co-operation arrangements for obtaining the required data. Finalizing the institutional negotiations for obtaining the required data and identifying and finalising a plan for the required complementary surveys to be conducted by MIME. As applicable, drafting required new legal and/or administrative orders and submitting them for final Government approval. Trained staff of the Energy Statistics Office (ESO) in MIME and its collaborating agencies to manage, collect and submit data to the EIS. Number of Training Guidebooks available in Khmer (and in English) Number of trainings organised Number of attendants in each training (listed also by province, and by gender) At the end of the project, the staff of ESO and its partner institutions are capable of updating, checking the quality of and processing the data of the EIS without external donor support. Training Guidebooks are used for reference material and to train new staff. Training Guidebooks are prepared in Khmer (and English) by the experts based on the training material. Based on the training schedule, one to two trainings on each topic is organised: i) survey methods and sampling; ii) energy statistics and energy balances; iii) energy supply and demand analysis methodologies and models; iv) power planning modelling; v) energy planning methodologies and models; socioeconomic and environmental linkages to energy planning; vi) gender mainstreaming into energy planning. Selecting the software for and designing the structure of the database. The first energy balance of Cambodia and a finalized Energy Information System (EIS) at the level of detail able to serve as input data Publication of the first Energy Balance of Cambodia. Finalising the programming for and establishing the database with a user friendly interface and incorporated, MIMEs staff and partners are committed to projects goals and objectives. Qualified and motivated staff in the Energy Statistics Office to learn during the project and independently manage and process the data from the EIS after the project. See above Assumptions

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to the energy modelling and planning software as well as to meet the reporting needs of the Government to the ACE, IEA and the UNFCCC Secretariat.

Information from the EIS can be obtained in a flexible and user friendly manner by user defined queries and level of aggregation on i) energy supply and use in Cambodia, ii) available energy resources; and iii) their environmental, socio-economic and health impacts.

automatic quality control tools. Compiling the primary data from the agreed co-operating agencies, conducting the required complementary surveys and other data collection measures and finalising the statistical analysis producing an annual energy balance.

Cooperation with other government agencies and private sector in data collection.

Component 2: Capacity Building for Energy Demand Modelling Objectives At the end of the project, the Energy Modelling Unit of MIME will be able on a selfsustaining basis to carry out studies and construct scenarios on the development of the energy supply and demand in Cambodia for different economic sectors and for different types of energy (domestic energy use for cooking and lighting, electricity, process heat, etc.) on the basis of the countrys demographic and economic projections and its socio-economic development plans. Main Results The Energy Modelling Unit (EMU) of MIME equipped with state-of-the art software for energy modelling taking into account the specifics of the Cambodian energy sector and its socio-economic and environmental considerations. Indicators Number of published analysis and scenarios of energy supply and demand. Frequency of updating based on the forecasted demographic and socio-economic development of Cambodia, including socio-economic group (e.g. rural poor) and gender specific analysis and scenarios, Demand and use of MIMEs energy supply and demand scenario studies by national and international organizations, private companies, and donor agencies Achievement Indicators Energy planning models are used for demand and supply scenario construction for both energy and electricity for different sectors by EMU of MIME, integrating the socio-economic and environmental impact assessment in the planning. Activities Evaluation, selection and, as needed, modification of the energy planning software or software package suitable for Cambodia to cover both electricity and other energy sector scenario formulation, integrating the socio-economic and environmental aspects in the planning. See above. Sources of Verification Published reports. Post project monitoring, Assumptions The information from the Energy Information System (EIS) established during the Component 1 able to effectively serve the energy demand modelling. Qualified and motivated staff in the Energy Modelling Unit of MIME to learn during the project and independently conduct the analysis after the project.

Assumptions

Trained staff to conduct the analysis.

Number of trainings organised Number of attendants in each training (listed also by province, and by gender)

Training of the staff of the EMU on energy demand and supply analysis methodologies, existing long term energy planning models, the management of the uncertainties and complementary data gathering as well as on combining the energy planning modelling with socio-economic and environmental impact assessment.

See above

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Finalized scenarios for both energy and electricity supply and demand in different economic sectors corresponding with the environmental targets and general socioeconomic development plans of Cambodia. As applicable, further recommendations addressing the identified data gaps and suggestion for improving the Energy Information System to better serve the energy modelling and planning.

Number of publications; The energy supply and demand scenarios including socio-economic and environmental considerations are finalized and the results published. Recommendations addressing the identified data caps provided.

Finalising the basic structure and deciding on the factors (including socio-economic and environmental) to be taken into account in the modelling and shown in the energy supply-demand scenarios and, as needed, conducting additional data gathering, studies and surveys to serve the analysis. Revision of annual survey questionnaires if needed. Research of additional data needed for power sector modelling. Checking the consistency of input data sets for selected models. Finalisation of the analysis in co-operation with local and international experts (with simultaneous on-the-job training) and publishing of its results (including feedback from National Annual Workshop for Policy Planners) together with related presentations in workshops, etc.

See above.

Component 3: Capacity Building for Energy Planning Objectives At the end of the project, the Energy Modelling Unit of MIME will be able on a selfsustaining basis to carry out studies and develop realistic energy sector policy and intervention plans integrating them into the countrys development needs, environmental (including climate change mitigation and adaption) and socio-economic considerations. Indicators Published energy strategy plan, including intervention and action plans and their regular updating at agreed intervals to guide the energy sector development in Cambodia to meet the sustainable supply and projected demand targets as well as integrating environmental, socio-economic and gender specific targets into the planning. Demand and use of the adopted policy papers by national and international organizations, private companies, and donor agencies in their work and investment plans. Results The Energy Modelling Unit (EMU) of MIME equipped with state-of-the art software for energy supply and policy planning taking into account the specifics of the Cambodian energy sector, the environmental and socioAchievement Indicators Energy supply, socio-economic and environmental impact assessment as well as climate change mitigation and adaptation analysis and scenarios are being prepared by Activities Evaluation, selection and, as needed, modification of the energy supply and policy planning software or software package suitable for Cambodia to cover the identified energy sector planning and intervention See above Assumptions Sources of Verification Published reports. Post project monitoring Assumptions The information from the Energy Information System (EIS) and the energy modelling able to effectively serve the energy planning. Qualified and motivated staff in the Energy Modelling Unit of MIME to learn during the project and independently conduct the analysis after the project.

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economic aspects. Trained staff to conduct the analysis.

EMU by using the selected software.

prioritization needs within the set socioeconomic and environmental targets.. Training of the staff of the EMU on i) energy supply and policy planning and how to combine it with energy modelling in general and by using the selected software packages, ii) the integration of the socioeconomic and environmental targets and impact assessment with energy planning, and iii) management of the uncertainties and complementary data gathering.

National Annual Workshop for Policy Planners discusses the targets and long term scenarios for the energy sector development in Cambodia established and active.

The working group established and meeting at least annually to discuss the different options for sustainable energy supply and demand and to decide on the concrete socio-economic and environmental targets set for the energy sector development, thereby providing the framework for the energy supply and policy planning of the EMU in MIME. The energy demand scenarios including socioeconomic and environmental impacts are finalized and the results published. Energy supply-demand balancing scenarios including socio-economic and environmental impacts are discussed in the Working Group, scenarios are finalized and published.

Establishment of the working group Organisation of seminars, workshops and working meetings to present the updated results of the project and to discuss the targets and related complementary actions to be taken.

Participation and cooperation of other government agencies and other key stakeholders to jointly discuss the energy sector development in Cambodia.

Finalized energy strategy plan, including intervention and action plans to guide the energy sector development in Cambodia to meet the sustainable supply and projected demand targets as well as integrating the environmental and socio-economic targets in the planning. As applicable, further recommendations addressing the identified data gaps and suggestions for improving the Energy Information System and energy modelling to better serve the energy policy planning.

Finalising the basic structure and deciding on the factors (including socio-economic and environmental) to be taken into account and shown in the energy modelling and, as needed, conducting additional data gathering, studies and surveys to serve the analysis. Finalisation of the analysis in co-operation with local and international experts (with simultaneous on-the-job training) and publishing of its results together with related presentations in Working Group workshops to obtain feedback from policy planners. Finalizing the supply-demand scenarios and related policy and intervention plans based on the workshop feedback.

Concrete socio-economic and environmental targets (including climate change mitigation and adaption to it) set by the Government providing the framework for energy planning. The information from the Energy Information System (EIS) and the energy modelling able to effectively serve the energy planning. Qualified and motivated staff in the Energy Modelling Unit of MIME to learn during the project and independently conduct the analysis after the project.

Finalized Power Development Plan including intervention and action plans to guide the power sector development in Cambodia to meet the sustainable supply and projected demand targets as well as integrating the environmental and socio-economic targets in

Cambodia's long term power demand load forecasts and production scenarios are published Power sector development plan is prepared and reports are published.

Finalising the basic structure of power sector modelling and deciding on the factors (including socio-economic and environmental) to be taken into account and shown in the electricity scenarios and, as needed, conducting additional data

Concrete socio-economic and environmental targets (including climate change mitigation and adaption to it) set by the Government providing the framework for energy planning. The information from the Energy Information

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the planning.

Power sector supply-demand balancing scenarios including socio-economic and environmental impacts are discussed in the Working Group, scenarios are finalized and published.

gathering, studies and surveys to serve the analysis. Finalisation of the analysis in co-operation with local and international experts (with simultaneous on-the-job training) and publishing of its results together with related presentations in Working Group workshops to obtain feedback from policy planners. Finalizing the power sector supply-demand scenarios and related policy and intervention plans based on the workshop feedback.

System (EIS) and the energy modelling able to effectively serve the energy planning. Qualified and motivated staff in the Energy Modelling Unit of MIME to learn during the project and independently conduct the analysis after the project.

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Annex 5: Project Activities

The project activities listed below are indicative. The Consultant should further elaborate some of the activities.
Component 0: Project Management Activities 0-1 0-1.1. 0-2 0-2.1. Establishment of Project Management Unit (PMU) Establishment of Project Management Unit (PMU) PMU established and active. Outputs Expected

Establishment of Energy Statistics Office to the already existing Secretariat Office Approval at MIME's level (Ministers and Vice-Ministers) of the creation of an Energy Statistics Office within the General Department of Energy Nomination of 4-6 staff members (Cambodian) to be trained to be statistics experts at the Energy Statistics Office of the General Department of Energy - Statistics Office created within the General Department of Energy -TORs of Statistics Office at the General Department of Energy and of Cambodian experts prepared - Nomination and appointment of 4-6 statistics experts to collect energy information; carry out surveys; prepare energy balance table; prepare annual national energy statistics book; maintain energy database.

0-2.2 0-3

Establishment of the Energy Modelling Unit under the Department of Energy Development Approval at MIME's level (Ministers and Vice-Ministers) of the Creation of an Energy Modelling Unit within the Department of Energy Development Nomination of 3-5 staff members (Cambodian) to be trained to be Modelling Expert at the Energy Modelling Unit of The Department of Energy development - Energy Modelling Unit Officially created within the Department of Energy Development -TORs of Energy Modelling Unit at the Department of Energy Development and of Cambodian Experts prepared - Nomination and appointment of 3-5 modelling experts to operate the energy models and tools. (socio-economic models, energy economic models, energy demand, electricity load forecasts, etc.)

0-3.1

0-3.2 0-4 0-4.1.

Establishment of National Annual Workshop for Policy Planners Establishment of National Annual Workshop for Policy Planners National Annual Workshop for Policy Planners is organised annually to discuss the energy policy plans

Component 1: Establishment of Energy Information System and Database

Activities
April 2011

Outputs Expected

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1-1 1-1.1 1-1.2

Planning capacity building Establishment of Data Collection Working Group meetings Planning the training for data collection together with Data Collection Working Group Data Collection Working Group meetings are organized regularly

1-2

Establishment of National Energy Statistics for Cambodia Analyzing the data needs and the required level of detail on the basis of the required inputs for a consistent and reliable information system concerning the utilization and supply of energy and related socio-economic, environmental and health impacts. Gender advisor (specialized in gender mainstreaming in energy issues) is consulted. Integrating the Energy Information System to the provincial, national regional and international planning process by the taking into account Governments international reporting obligations to ACE, IEA and UNFCCC. Clarifying the availability and collection of the already existing primary data from different energy sources and end user categories from different public and private entities, together with an assessment of the credibility of this data Analyzing the potential different energy resources and the available data on them Elaborating the required complementary gender sensitive surveys and statistical analysis for energy resource, production and use data by taking into account planned future surveys conducted by other Government entities (such as national socio-economic surveys, possible agricultural census, forestry inventories, import-export statistics etc,), into which complementary energy related questions can be added or from which data can be used as proxies to indicate or control the quality of the energy data (e.g. by combining a bottom-up and a top-down analysis) Finalising the negotiations with the proposal public and private co-operating entities to obtain the required primary data that can be obtained in a more cost-effective and sustainable way - Page 79 / 87 -

1-2.1

Report on elaborated data needs (living document)

1-2.2

Analysis of the coverage and quality of the already available data and relevant existing data collected.

1-2.3

Plan for energy resource data collection and utilization

1-2.4

Finalized proposal for required complementary surveys and analysis

1-2.5
April 2011

Signed co-operation agreements and eventually required new administrative orders

from them, 1-.2.6 Decision on required complementary surveys to be conducted by MIME and by other organizations providing energy statistics. Selecting the software for and designing the structure of the database to store and process the raw energy data and other related gender disaggregated socio-economic, and environmental data. Capacity-building in software applications and in establishing the database with a user friendly interface and incorporated, automatic quality control tools. Selection of primary/secondary energy sources and processes and other data to be included in the Energy Information System. Selection of final energy sectors and sub-sectors for energy balance construction. Training for energy balance construction. . Preparation of survey questionnaires for gathering information on primary energy sources and processes (primary sector), secondary energy sources and processes (transformation sector), and final energy sectors and subsectors and related socio-economic and environmental data. Establishment of the Energy Information System. Preparation and signature of exchange agreements between MIME and the major stakeholders. Training of experts utilising the Energy Information System. Preparation of a proposal to modify the Statistic Law of Cambodia to render compulsory the sending of energy and other relevant information and data to MIME on a regular basis by main energy actors (Supply and demand industries, utilities, commercial consumers, etc), as well from other line Ministries (Agriculture, Transport, Finance & economy, Environment, etc...) Finalised plan for required surveys. - Data users trained in different data-using organizations utilizing also gender and socio-economic/environmental experts. - The database to store and process the initial energy data established with built-in quality control tools and a user friendly interface to allow easy feedin of the data and from which information can be obtained by flexible user defined queries to meet the different reporting and data aggregation needs.

1-2.7

1-2.8

- Overall format of the Energy Information System - Experts from MIME's Statistical Office and DIMEs trained on energy statistics and balance construction.

1-2.9

- All required questionnaires finalised and surveys initiated. . - MIME's and DIMEs experts trained on survey techniques and questionnaire preparation

1-2.10

1-2.11

- Energy Information system established and operating, agreements with main stakeholders signed - All experts from MIME's Statistic Office and other Energy Information System users trained.

1-2.12.

- Proposal of a modification of the Statistic Law to improve the collection of data on a permanent basis

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1-2.13

Training on survey implementation by: - International expert - by MIME trained experts and Cambodian trainers - by MIME trained experts and Cambodian trainers Application of surveys (first test in Phnom Penh and selected rural area, and after correction/improvement of the survey questionnaires, apply in all provinces). Surveys will be carried out annually. Collection and input of all survey data on computers (at provincial level). Data sent to MIME in Phnom Penh for analysis, consistency checks, aggregation and dissemination to potential users. Establishment of Energy Balance for Cambodia Training on methodology of energy statistics and energy balances Selection of calorific values of all primary and secondary sources of energy in Cambodia (measured or estimated) Preparation of the Energy Balance of Cambodia (EBC) Carry out socio-economic, environmental and technoeconomic analyses based on the EBC, and to be included in the publication of the Energy Balance of Cambodia Preparation of the 1st Draft publication of EBC National consultation process with all stakeholders associated with the MIME Energy Information System Revision, preparation, publication and dissemination of the first EBC

- 10-15 trainees from MIME and from selected university(s) trained by international experts - 24-48 trainees from DIMEs trained by MIME and by trainers from universities and training institutions - Many provincial surveyors trained by MIME and by trainers institutions (selected universities)

1-2.14

- Surveys carried out and repeated annually

1-2.15

- Survey data from all supply energy sources, and from demand consumers from all sectors of the economy - MIME's Statistics Office trained on statistical methods for data cleaning, checking, analyzing and registration of data in the database

1-3 1-3.1

- 10 experts from MIME and other organisations trained. - National conversion coefficients are selected in Cambodia for the preparation of the 1st Energy Balance of Cambodia (EBC) as well as for other studies such as Climate Change (National Communication, etc) - 1st Energy Balance of Cambodia - Analyses on energy situation and development in Cambodia and related socio-economic development - 1st draft publication of the Energy Balance of Cambodia - National workshop, and/or direct consultation with associated stakeholders concerning Energy Balance of Cambodia - Publication of the first Energy Balance of Cambodia

1-3.2 1-3.3 1-3.4 1-3.5 1-3.6 1-3.7

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Component 2: Capacity Building for Energy Modelling Activities 2-1 2-1.1 Capacity building for Long-Term Energy Demand planning in Cambodia Training on energy demand analysis methodologies and models for long term energy demand planning Design of factors affecting energy demand to be taken into account in modelling. Selection of specific model(s) to prepare long term energy demand planning. Design of the end-use sectors, sub-sectors and socioeconomic and environmental processes to be described with the selected demand model Revision of annual survey questionnaires, if needed, to gather additional end-use sectoral energy, socio-economic and environmental data to feed the energy demand analyses, as well as the long term energy demand planning model Implementation by MIME's Statistics Office of the annual revised surveys Selection of specific model(s) to prepare long term energy supply / demand scenarios Design of the overall energy sector, sub-sectors and processes to be described with the selected supply/demand model Identify data necessary to feed the energy supply / demand analyses, as well as the long term energy supply / demand planning model Analyse data available of different energy resources in Cambodia and decide of additional data needs Gather necessary data on energy resources supply and consumption from ministries, institutions and energy utilities (MIME, MoP, MoC, EDC, Petroleum Companies, EAC, REE, - Page 82 / 87 - Energy modelling unit experts trained on energy demand analysis methodologies and on existing long term energy demand planning models - Criteria for long term energy demand model are available at the Department of Energy Development of MIME - A long term energy demand model is available and operational at the Department of Energy Development of MIME Outputs Expected

2-1.2

2-1.3

2-1.4

- Revised annual survey questionnaire if additional data is needed

2-1.5

- Additional End-use data is collected, if needed, for the implementation of Sectoral Energy Demand Analyses, and also to run the Long term Energy Demand Model for Cambodia - A long term energy demand model software is available at the Department of Energy Development of MIME - A Long Term Energy Demand Model is operational at the Directorate of Energy Development of MIME - Additional Survey Questionnaires on the Overall Energy System are prepared - Information of energy resource data is available in MIME - Additional End-use data is collected for the implementation of Sectoral Energy Demand Analyses, and also to run the Long term Energy Demand Model for Cambodia

2-1.6

2-1.7

2-1.8

2-1.9

2-1.10
April 2011

etc) 2-2 2-2.1 2-2.2 2-2.3 Capacity building for power strategy planning Training of power planning modelling Selection of the model to prepare long term power development forecasts and plans Research of additional data needed for the power sector modelling (EDC, EAC, REE, etc) Collection of additional needed data for the power sector planning model and related socio-economic and environmental processes - Energy modelling unit experts trained on power analysis methodologies and on existing power planning models -Power development planning model is selected and in use in MIME - Consistency of the input data sets for the selected model is checked - Additional power sector data is collected together with related socioeconomic and environmental data for the implementation of power sector scenario building.

2-2.4

Component 3: Capacity Building for Energy Planning Activities 3-1 3-1.1 3-1.2 3-2 3-2.1 Training on Energy Planning Training on energy planning methodologies and models Training on socio-economic and environmental linkages connected to energy planning - Energy Modelling Unit experts trained on energy planning methodologies -Energy Modelling Unit experts trained on energy planning linkages Outputs Expected

Preparation and Publication of the Long-Term Energy Supply/Demand Balancing scenarios (Energy strategy plan) National Annual Workshop for Policy Planners discusses about the long term energy development scenarios of Cambodia Organization of a stakeholders high level meeting/workshop (Strategic Group) to discuss with the energy modellers about the scenarios to be designed for the long term energy supply / demand planning Energy supply / demand model runs: Preparation of Cambodia's long term energy strategy plan, and corresponding reports - Page 83 / 87 - The National Annual Workshop for Policy Planners meet once a year to discuss about energy developments and up-date the energy scenarios needed by the energy planners - Cambodian energy scenarios have been discussed and agreed upon with high level decision makers, and some alternatives have been selected - Various long term energy demand scenarios have been prepared, which will support the long term energy supply/demand planning models - Long term energy demand scenarios are prepared with detailed

3-2.2

3-2.3

April 2011

explanation of hypothesis and results, and potential consequences and impacts on the development of the energy sector and other sectors as well as socio-economic and environmental impacts in Cambodia 3-2.4 3-2.5 Dissemination of the main results to the high level stakeholders for comments Finalisation of Cambodia's energy strategy plan, and of corresponding reports Publication and Dissemination - Comments are done by high level stakeholders to improve the long term energy supply / demand balancing scenarios - Final long term energy demand scenarios of Cambodia - Energy strategy plan is prepared - Final long term energy demand scenarios of Cambodia published and disseminated - Energy strategy plan is published 3-3 3-3.1 Capacity building for long term electricity demand load scenarios and Power strategy plan Organization of a stakeholders high level meeting/workshop to discuss with the energy modellers about the scenarios to be designed for the power sector planning - Cambodian energy and electricity scenarios have been discussed and agreed upon with high level decision makers, and some basic approaches have been selected - Various long term scenarios of the power strategy plan have been prepared, with detailed explanation on hypothesis and results, and potential consequences and impacts of the development of the power sector on the development of Cambodia (amount of investment needed, technologies (e.g. hydro vs. thermal), potential environmental and socio-economic impacts, etc.) - Comments are done by different stakeholders,(e.g. EDC, EAC and REEs) to improve the various Scenarios - Final long term power strategy plan for Cambodia - Final long term power strategy plan for Cambodia published and disseminated

3-2.6

3-3.2

Power sector model runs: Preparation of Cambodia long term power demand load forecasts, and corresponding reports

3-3.3 3-3.4 3-3.5

Dissemination of the main results to different stakeholders (e.g. EDC, EAC and REE) Finalisation of Cambodia's long term power demand load forecasts, Power strategy plan and of corresponding reports Publication and Dissemination

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Annex 6: Project Time Schedule

Project schedule should be modified, if necessary, in the inception phase. Stars mark Steering Committee meetings.
1
Office organised PMU organised ESO establishment EMU establishment LogFrame planning Data Collection Working Group National Workshop for Policy Planners

6
Inception phase
Annual work and financial plan Procurement Preparing ToRs, engaging consults National Annual Workshop for Policy Planners Reporting

18

24

Component 0
Monitoring and reporting Monitoring and reporting

SC meeting

Data Collection Working Group

Training for data collection

Data Collection Working Group, sub-groups

Component 1

Socio-economic, environmental and technological training and analysis based on EBC

Data need analysis, gap identification, gender and socioeconomic/ environmental data Energy resource analysis Database software selection

Survey planning and testing

First energy balance construction for Cambodia (EBC)

Publication of the Energy balance EBC

Data Collection Working Group, sub-groups

Analysis of the data quality and planning for improvements

First data collection

Energy Information System Training on statistics and balance construction, data analysis

Statistics Law modification

Selectionof energy modelling softwares Training for energy modelling Modelling data needs analysis

Component 2

Input of data for energy modelling Energy model runs for scenario building Training for energy modelling

Component 3
Training for energy planning Training on socio-economic and environmental linkages connectedto energy planning

Steering Committee meeting

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25
Annual work and financial plan Reporting National Workshop for Policy Planners

36

48
Monitoring and reporting National Workshop for Policy Planners

Component 0
Annual work and financial plan Reporting

SC meeting

Data Collection Working Group

Additinal training for data collection

Additional survey planning and testing

Data Collection Working Group, sub-groups

Component 1
Publication of the Energy balance EBC Data Collection Working Group, sub-groups

Socio-economic, environmental and technological analysis based on EBC

Additional data need analysis, gap identification

Data Collection Working Group, sub-groups

Energy balance construction for Cambodia (EBC)

Additional data need analysis, gap identification

Energy balance construction for Cambodia (EBC) Data collection

Data collection

Additional training for energy, socio-economic and environmental modelling Modelling data needs analysis

Component 2
Input of data for energy modelling Energy model runs for scenario building

Training for energy planning Training on socio-economic and environmental linkages connected to energy planning Energy and electricity supply-demandmodel runs for scenarios

Component 3
National Annual Workshop for Policy Planners, feedback for policy formulation Scenario construction and policy plan formulation Energy supply-demand model runs for scenarios

National Annual Workshop for Policy Planners, feedback for policy formulation Scenario construction, Master Plan and Power Development Plan formulation

April 2011

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