I?9429¶2P H1 ESMAP

Joint UNDP / World Bank Energy Sector Management Assistance Programmec/o The World Bank * 1818 H Street, N.W. * Washington, D.C. 20433 * U.S.A.

ZIMBABWE

Capacity Building for theNational Energy Efficiency Improvement Programme

(NEEIP)

Routes to an Implementing Agencyfor Energy Efficiency in Zimbabwe

December 1994

Power Development, Efficiency and Household Fuels DivisionIndustry and Energy Department

1818 H Street, NW.The World Bank

fhe opinions expressed in this document are those of the authors and do notnecessarily represent tiose of the World'Bank.

lILE COPY

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Routes to an Implementing Agencyfor Energy Efficiency in Zimbabwe

Consultants Report

prepared by

Energy Technology Support Unit

(ETSU)

December 1994

Glossary of Terms

Units used throughout this report conform to the System International (SI). The definition ofsome of the concepts used are provided below in the footnotes. Where other units are used theyare explained in the text.

Abbreviations and/or MeaningAcronyms

CIDA Canadian International Development AgencyCFU Commercial Farmers UnionCoM The Chamber of Mines of ZimbabweCPU Central Planning UnitCSO Central Statistical OfficeCZI Confederation of Zimbabwe IndustriesDoE Department of EnergyDSM Demand Side ManagementESAP Economic Structural Adjustment ProgramESCo Energy Service CompanyESKOM Electricity Supply Commission of South AfricaESMAP Joint UNDP/ World Bank Energy Sector Management

Assistance ProgrammeETSU Energy Technology Support Unit of the United KingdomGEF Global Environmental FacilityGoZ Government of ZimbabweIA Implementing AgencyIEI International Energy InitiativeMIC Ministry of Industry and CommerceMIS Management Information SystemMLG Ministry of Local GovernmentMOET Ministry of Environment and TourismMPCNH Ministry of Public Construction and National HousingMTE Ministry of Transport and EnergyNEEIP National Energy Efficiency Improvement ProgrammeNGO Non Governmental OrganisationNOCZIM National oil Company of ZimbabweNRB Natural Resources BoardODA Overseas Development Administration (of UK)PIP Pilot Information ProgrammePV PhotovoltaicRCZ Research Council of ZimbabweSADC Southern Africa Development CommunitySIDA Swedish International Development AuthoritySIRDC Scientific & Industrial Research & Development CenterTA Technical AssistanceTIPS Technology Information Promotion System

ToR Terms of ReferenceUNDP United Nations Development ProgramUK United KingdomUZ University of ZimbabweZEEP Zimbabwe Electrical Energy Efficiency ProgramZABO Zimbabwe Association of Business OrganizationsZESA Zimbabwe Electricity Supply AuthorityZIE Zimbabwe Institution of EngineersZIMPHOS Zimbabwe Phosphate Industries LimitedZNCC Zimbabwe Chamber of CommerceZRA Zambezi River Authority

CONTENTS

FOREWORD

SUMMARY .............................................. i

I. INTRODUCTION ...............................................

II. TERMS OF REFERENCE .............................................. 2

III. DISCUSSION OF IMPLEMENTING AGENCY OPTIONS .............................................. 4

General Discussion ........................................ 4Discussion of Options for an IA .............................. . . - . 4

The SIRDC as an IA .............................. 4The DoE as an IA .............................. 6Government Project or Unit .............................. 6Unidentified Organisation as an IA .............................. 7

Recommendation for the IA Host .............................. 8

IV. NEEIP PLAYERS, RESPONSIBILITIES AND ROLES ............................................ 9

DoE Roles and Skills ...................................... 9DoE Roles ...................................... 9DoE Structure ..................................... 10DoE Skills ...................................... 11

IA Roles, Structure, Personnel and Equipment ..................................... 11IA Roles ...................................... 11Structure and Responsibilities ..................................... 12Personnel Required ..................................... 14Equipment Required ..................................... 14

Funding Mechanisms and Management of the NEEIP ..................................... 15NEEIP Management ..................................... 15Line Management of the IA ..................................... 15Programme Management ..................................... 15NEEIP Advisory Committee ..................................... 17

Potential Strategies and Programmes ..................................... 17Twinning/Capacity Building for the DoE and IA ..................................... 18Discussion of DoE Staff Training ..................................... 18

Discussion of IA Staff Training ..................................... 19Potential Twinning Package ..................................... 19

Sources of Finance ..................................... 21

Page

V. PILOT INFORMATION PROGRAMME (PIP) OPTIONS ................................................. 23

Aims and Objectives of a PIP ................................................. 23Scope and Activities ................................................. 23Timescales ................................................. 24Running of the PIP ................................................. 25Possible Zimbabwean PIP Hosts ................................................. 26Recommendation for Running the PIP ................................................. 27

VI. OPTIONS LEADING TO AN IMPLEMENTTNG AGENCY (IA) ....................................... 28

No PIP, IA starts at the SIRDC ................................................. 28PIP starts at the CZI followed by an IA at the SIRDC ................................................. 28

VII. RECOMMENDATION OF WAY FORWARD ................................................. 30

Recommendation ................................................. 30Timescales and Actions ................................................. 30

ANNEX 1: First Revision to the ToR for the TA Activity .................................................. 33

ANNEX 2: Notes on Meetings held during the TA Mission .................................................. 36

ANNEX 3: ToR of the DoE's Energy Conservation Section ................................................. 47

ANNEX 4: Provisional costing for a PIP .48

FOREWORD1

1. The Government of Zimbabwe is putting together a National Energy EfficiencyImprovement Program (NEEIP) with the following principal aims: (i) raise national consciousness ofenergy issues and efficient production and use of energy; (ii) assist to improve energy security andinternational competitiveness; and (iii) reduce energy costs and environmental degradation. TheNEEIP was launched at a Workshop held in Nyanga, Zimbabwe, during 15-17 December 1993. TheWorkshop was jointly sponsored by the Ministry of Transport and Energy (MTE), the Department ofEnergy (DoE) and the Joint UNDP/World Bank Energy Sector Management Assistance Programme(ESMAP) .

2. The focus of the Workshop was the industrial and commercial sectors, although anyrobust framework can be extended to cover other sectors. The Workshop arrived at variousrecommendations as to the strategic framework for the NEEIP as regards coordination, organizationand implementation. There was a clear indication that government should concern itself with policyissues and an agency outside government should be responsible for coordination and implementationof various activities. Under this framework, the DoE will be the client for the services supplied by aNEEIP implementing agency (IA). The Workshop identified the lack and/or shortage of information,and misinformation, about specific energy savings measures, both technical and managerial, to be animportant barrier to overcome if the NEEIP is to be effective.

3. Establishing an autonomous IA is seen as an absolute priority for the viability andsustainability of the NEEIP. Likewise, once the IA is established, there is a need for stronginvolvement by all actors, including Government, the Confederation of Zimbabwe Industries (CZI),the Chamber of Mines of Zimbabwe, the Chamber of Commerce of Zimbabwe, the ZimbabweInstitution of Engineers, the Zimbabwe Electricity Supply Authority (ZESA), and other end-useragencies, organizations and institutes. The IA would act as a central focus for energy efficiency inthe market place and implement programs by whatever means appropriate.

4. To assist sorting matters out, this ESMAP technical assistance activity wasundertaken with the following objectives: (i) develop proposals that will assist the DoE in settingup an IA; (ii) identify institutional measures and resource requirements which will enable DoE tomonitor and regulate the IA; (iii) identify capacity building requirements for the DoE and IA; (iv)recommend twinning arrangements to enable the IA to benefit from the experience of organizationsthat have been involved in energy efficiency programmes for a long time; (v) suggest strategies andprogrammes in energy efficiency improvement for the IA and make recommendations to GoZ; (vi)suggestlidentify possible funding arrangements for the IA, both in the short and long term; (vii)develop proposals for the establishment of a Pilot Information Programme (PIP) which the IA willimplement including the possibility for the CZI to run this PIP as an interim measure before an IA isestablished, and (vii) fully cost the PIP and make recommendations to government.

Prepared by ESMAP.2 ESMAP Completion Report of April 1994.

5. During July 1994 a 2-week Study Tour of the UK was undertaken with a four persondelegation from the DoE and MTE. The delegation visited the Energy Technology Support Unit(ETSU) where they received one week training on its activities. The delegation also participated onseveral events sponsored by the Department of the Environment and visited some commercialenterprises where best practices in energy efficiency had been put in place. During the mission theToR for subsequent work were further refined in accordance with the desired ToR as prepared bythe MTE (Annex 1). Within the budgetary constraints it was decided to have a mission to explore anidentify Government concerns and resolve some of the issues in the TOR prepared by the MTE.

6. An ESMAP mission was undertaken in October 1994 with the following mainobjectives: (i) assess the suitability of various entities, including the Scientific & Industrial Researchand Development Center (SIRDC), to be the host of an IA, and (ii) assess the suitability of startinga Pilot Information Programme (PIP) within the Confederation of Zimbabwe Industries (CZI) as aninterim measure before an IA was established. The mission also took time to resolve some of theissues as describe in the ToR prepared by MTE.

7. Since the financial sustainability of the IA is a primary requirement, it wasdetermined that the Scientific & Industrial Research and Development Center (SIRDC) can host theIA once its Administration Building is commissioned and becomes operational. Establishing the IAinside the SIRDC assures sustainable financing. The IA can be established with a small core staffthat the SIRDC could make available by the beginning of the Fiscal Year 1996. For this to becomea reality, however, several outstanding issues must be resolved. These are outlined in Chapter 3 ofthe report.

8. Chapter 4 provides an assessment of the roles and range of skills that must bedeveloped within the DoE to fulfill its policy and coordinating roles within the NEEIP. Chapter 4also includes an assessment of the roles, structure, personnel and equipment requirements for an IAas well as funding mechanisms and management of the NEEIP. Chapter 5 includes a description ofa PIP including its aims and objectives. Chapter 6 includes the options for starting a PIP as aninterim measure before an IA is established with the SIRDC. Chapter 7 includes the steps andtimetable that are required to establish an IA within the SIRDC. The dates in this timetable havebeen generalized in terms of months from task initiation, instead of actual dates as was outlined inthe consultants report.

9. This report was written with a timetable for action that will allow for an IA to be setup within the SIRDC by July 1995, since this is the date at which the SIRDC administration blockbecomes operational. In following these recommendations the DoE will be accepting a challengingtask in managing the transition to an IA.

10. This activity was funded by the German Ministry of Energy. Their financialassistance is gratefully acknowledged

SUMMARY1

1. The work described in this report forms part of an ESMAP technical assistance activityto provide capacity building for the National Energy Efficiency Improvement Programme (NEEIP) inZimbabwe. The NEEIP was launched by government at a Workshop held in Nyanga, Zimbabwe, during15-17 December 1993. The Workshop finalized an ESMAP technical assistance activity in Zimbabwewhich defined the strategic framework for the NEEIP. This work has been documented in an ESMAPCompletion Report of April 19942.

2. To further assist Government in its effort to promote the NEEIP, this activity wasinitiated with the main objectives to provide the Department of Energy (DoE) and the Ministry ofTransport and Energy (MTE) with the opportunity to visit an implementing agency for energy efficiencyactivities in the UK and to cost a Pilot Information Programme (PIP). While on the Study Tour theproposed Terms of Reference (ToR) for the work were finalized and extended to include advice on thedevelopment of institutional structures for the NEEIP, focusing specifically on the DoE and a NEEIPImplementing Agency (IA). In Annex I the proposed ToR prepared by the DoE and MTE are given.

3. This report firstly considers issues related to an IA and its linkages to the DoE; secondlyissues related to a PIP; and finally, the next steps to move forward the NEEIP as envisaged byGovernment. These will be summarized in what follows.

IA/DoE Issues

4. As recommended in previous ESMAP work on energy efficiency3, there must be a clearseparation of responsibility between, on the one hand, policy formation and the setting of programmeobjectives, and on the other hand, the design and implementation of programme activities to achieve theobjectives. In this strategic framework, the role of the DoE is to be responsible for policy andcoordination issues related to the NEEIP, and the IA should be given the responsibility, under clear ToRin some form of performance contract with monitorable outputs and targets, to execute an energyefficiency programme. Much more detail on these issues are provide in Chapters 3 and 4 of the report.

5. The IA is expected to be the central focus for energy efficiency in the market place andimplement programmes by whatever means appropriate. The specific activities for the IA have beencovered in previous ESMAP work. The scope of work of this undertaking concentrates on theinstitutional requirements to establish an IA.

6. This report considers three main options for the host of an Implementing Agency: (i) theScientific and Industrial Research and Development Centre (SIRDC), (ii) the DoE and (iii) a special

Prepared by ESMAP.2 ESMAP Completion Report of April 1994: Strategic Framework for a National Energy Efficiency ImprovementProgramme (NEEIP)3 Critical Success Factors in National Energy Efficiency Programmes. World Bank Workshop on 'Critical SuccessFactors' for Energy Efficiency Strategy Development, January 1994.

ii

Government Unit. The University of Zimbabwe and private consulting firms are also briefly considered.The report recommends that the option of the SIRDC be pursued because:

* it has independence from govermment in terms of its freedom from bureaucracy, salarystructure and perception in the market place;

* it has the promise of a good supporting infrastructure, an infrastructure that covers all thenecessary functions;

* it has good possibilities for long term sustainability;

* clear, effective lines of responsibility and accountability can be set up between the DoEand the IA.

7. The choice of this option suffers from the same disadvantages as the other two mainoptions, all of which relate to the fact that nothing is currently in place. Indeed, the SIRDC option offersthe most promise for tackling outstanding issues successfully. These issues include:

* Securing salary budgets and office facilities;

* Recruiting of personnel;

* Achieving the required change of mandate of the SIRDC;

* Developing NEEIP management structures;

* Securing Donor funding for programmes.

8. The principal roles of the DoE within the NEEIP are to: (i) develop and coordinateenergy policy within a wider government policy; (ii) provide direction to and control of the IA;(iii) commission individual programmes; and (iv) secure financing for the NEEIP. To do this it requiresspecific skills including policy and strategy formation, negotiation skills, contract and projectmanagement skills, coordination skills, and target formnulation skills. Government must ensure that thelegal and regulatory framework is in place so that the NEEIP can operate efficiently.

9. To fulfill its policy and coordinating roles for the NEEIP, the present structure of theDoE needs to be re-aligned, particularly that in the Energy Research and Development Section and theEnergy Conservation Section. In addition DoE personnel needs to be assigned the task for overallresponsibility for the NEEIP and the management of the IA.

10. The main aim of the IA should be to develop a self-sustaining market in energyefficiency. At the beginning, a small core of three or four professional staff and support staff consistingof: Director; Industrial/Supply-side Manager; Buildings/Commercial/Transport Sector Manager;Marketing Manager; and Secretarial and Data Base support; would suffice. As the IA evolves so wouldthe skill base and number of professional and support staff.

11. Assuming that the SIRDC is the home of the IA, the core running costs of the IA wouldbe provided through the SIRDC's budget. The Director of the IA would be responsible to the Head ofthe Energy Institute and to the Director General of the SIRDC. As the Director of the DoE is on the

iii

Board of Management of the SIRDC, the DoE can provide an input to the performance of the IA and itsstaff.

12. A NEEIP Advisory Committee will ensure public accountability for the NEEIP andprovide practical advice as to the energy efficiency market place in Zimbabwe. This AdvisoryCommittee must be an independent committee whose main tasks are to: (i) provide advice on the overallstrategic direction of the NEEIP; (ii) provide advice on the strategy of individual programmes andprojects; (iii) receive reports on the progress of individual programmes; and (iv) provide comments onthe overall management and progress of the NEEIP.

13. Chapter 4 provides a detailed description of the potential strategies and programmes tobe run by the IA as well as funding possibilities. It is recommended that at the beginning the NEEIPfocuses on sectors and activities that give the NEEIP its largest returns, that is, in the industrial,commercial and Government Estate sectors. Regarding potential sources of finance for the NEEIP, thefollowing can be mentioned: GoZ; fuel levy; donors; and end-users. Funding from the equipmentsupply industry and consultants should be received cautiously, as the independence of the IA will becrucial to maintaining its credibility.

PIP Issues

14. The report discusses the aims and objectives of a PIP, and potential activities and hosts.The hosts considered are the DoE, the Confederation of Zimbabwe Industries (CZI) and theTechnological Information Promotion System (TIPS) programme. Should the PIP go ahead as an interimprogramme before establishing an IA, the report recommends that the option of CZI as host beinvestigated first because:

- The CZI has good industrial contacts;

- The CZI has promised to provide facilities in support of a PIP;

- The DoE could concentrate on the policy issues of founding the IA and securing finance;

* The DoE would gain an early training in coordination activities.

15. The main disadvantage of following this recommendation is that the CZI currently hasno one free to run a PIP. However, it should be possible to quickly recruit either a young retrenchedengineer or a recently retired person. More details are provided in Chapter 5.

The Way Forward

16. The report considers the two possible routes to an IA. The first is to undertake noactivity until the IA is launched, using the limited money currently available on formal training for DoEand IA staff rather than running a PIP. The second route is to run a PIP as a lead up to an IA. Bothroutes can lead to a long term effective and sustainable NEEIP in Zimbabwe. If funding for a PIP isforthcoming, the report recommends that the second option is pursued for the following reasons:

iv

* It shows industry action now and so starts to generate goodwill for the NEEIP;

* It gives the IA momentum to build upon and starts to develop dissemination routes forthe NEEIP;

* It will enable lessons, both positive and negative, to be learned;

* It will start to develop the DoE's coordinating role;

* It will show donors that a coherent plan is being implemented.

17. The main danger of following this recommendation is that the PIP ends in isolation.This would mean that the credibility of the NEEIP suffers and any lessons learnt are lost. This would bea serious setback.

18. Finally, the report details an action plan for work that involves both a PIP followed bythe setting up of an IA. This action plan contains many large tasks; slippage of any would lead to astart/stop NEEIP. The implicit assumption is to have the IA established by the time the SIRDCadministration block becomes operational and for funding to be available to run the PIP as an interimmeasure. If no interim funding is available, then the PIP must be dropped. However, the establishmentof the IA within the SIRDC can proceed. A timetable is indicated in Chapter 7.

1. INTRODUCTION1

1.1 The Government of Zimbabwe (GoZ) is presently considering methods of encouragingenergy efficiency improvements in the demand side, methods that will form a National EnergyEfficiency Improvement Programme (NEEIP). Work already under way includes the GoZ's ZEEP2 andSADC's Phase II programme . With the aim of co-ordinating and furthering activities, the GoZ, with thesupport of ESMAP, held a national workshop in Nyanga in December 1993; a workshop that broughttogether representatives from all sectors of the Zimbabwean economy. The workshop supported theinitiation of a co-ordinated national energy efficiency programme and recommended that an agency beset up to implement activity. The Energy Institute of the Scientific and Industrial Research andDevelopment Centre (SIRDC) was put forward as a possible home for the agency.

1.2 In early 1994, the GoZ investigated the possibility of the SIRDC as an agency, but foundthat there were some problems, particularly with the mandate of the Energy Institute under the SIRDCand with the fact that the Energy Institute only existed on paper. A project with ESMAP was thenformulated to further develop activities in the short term. The project originally consisting of twophases: firstly a Study Tour to the UK for Department of Energy (DoE) staff, and a TA mission toZimbabwe by ESMAP/ETSU to fully cost a Pilot Information Programme (PIP); and secondly therunning of the PIP. The PIP's original objectives are detailed in Chapter 2, but included showingindustry that something was under way. The two week Study Tour took place in July 1994, a fourmember delegation from the DoE and the Central Planning Unit of Ministry of Transport and Energyvisiting the UK.

1.3 This report concludes the second activity of this ESMAP project. The terms of referencefor the TA mission to Zimbabwe and this report are detailed in Chapter 2. Chapter 3 discusses optionsfor an Implementing Agency (IA) to run a NEEIP and makes recommendations for the way forward.Chapter 4 details proposed roles for the DoE and the IA, proposed structures and personnel required,training requirements for the IA and DoE, possible initial strategies and programmes, and sources offinance for a NEEIP. Chapter 5 details various options for activities within a PIP, discusses possiblehosts and makes a recommendation for a host should a PIP go ahead. Chapter 6 discusses the twooptions leading to the formation of an IA: firstly, no activity until an IA is launlciled and secondly, therunning of a PIP that leads to the IA. Chapter 7 recommends actions to be tlkeli if anl IA is to be set up;actions recommended include the running of a PIP that builds relationships bcmxeen -overnment andindustry, initiates activity within industry upon which the IA can build and helps train DoE staff in theirco-ordinating role.

1.4 Annex I contains revised ToR for the TA activity and Annex 2 contains notes on themeetings held during the TA mission. The current ToR of the DoE's Energy Conservation Section aregiven in Annex 3. Finally, a provisional costing for a PIP is detailed in Annex 4.

Beginning of Consultant's Report.2 Zimbabwe Electrical Energy Efficiency Prograrmme.3 SADC Energy Management Project.

11. TERMS OF REFERENCE

2.1 The original terms of reference for the technical assistance mission were to fully cost aPilot Information Programme (PIP), a programme designed to be an interim measure whilst theGoZ/DoE developed more permanent structures. The original aims of the PIP concept, which was to belimited to industry, were to generate interest within industry for energy saving; to show actions wereoccurring after the national workshop of December 1993; to gain an understanding as to what worksand/or is required from a full information programme; and to generate some energy savings in the shortterm. As no specific NEEIP Implementing Agency (IA) currently existed to run a PIP, an option was torun it through an industrial body such as the Confederation of Zimbabwe Industries (CZI).

2.2 The GoZ/DoE asked for a change in the terms of reference in a fax of 25 August 1994(Annex 1). This asked the TA mission to undertake two activities, these being:

A. Implementing Agency (IA) and Department of Energy (DoE)

* develop proposals which will assist the DoE in setting up an IA (i.e. size and structure ofthe agency, cost estimates, staffing and training programme);

* identify institutional measures and resource requirements which will enable DoE tomonitor and regulate the IA (i.e. training programmes, contracts, skills and types ofactivities);

- identify capacity building requirements for the DoE and IA, including training andequipment;

- recommend twinning arrangements to enable the unit to benefit from the experience oforganisations that have been involved in energy efficiency programmes for a long time;

* suggest strategies and programmes in energy efficiency improvement for the IA andmake recommendations to GoZ;

* suggest/identify possible funding arrangements for the IA, both in the short and longterm.

B. Pilot Information Programme (PIP)

* develop proposals for the establishment of a PIP which the IA will implement. Thisshould include building a library of inforrnation and collating it with respect toZimbabwean energy situations, running targeted information programmes and generallyraising awareness and commitment of industry to energy efficiency improvement;

* assess DoE/CZI/UZ's available resources to run a PIP (i.e. discuss with these partiestheir possible roles, activities, costs and back-up support required);

* fully develop activities and roles for a PIP (i.e. hold meetings with relevant parties tocost their roles, including event management organisations, advertising agencies,relevant energy consultants);

* fully cost the PIP and make recommendations to government;

* identify avenues of information distribution and preliminary recommendations;

2.3 At the opening meeting of the TA mission, the DoE highlighted progress, in particular inrespect of the SIRDC:

* the mandate of the SIRDC is to be reviewed to allow the various Institutes to be moreautonomous;

* the administration block of the SIRDC is scheduled for completion in March 1995 and itmay be possible to obtain office space for an IA, even though the opening of the EnergyInstitute is slipping;

* SIRDC may be able to obtain funding, through its usual government grant channels, forthree or so officers, people who could form the basis of an IA. The financial year startsin July, so that is a possible starting date.

2.4 These developments raised further questions to be tackled during the TA mission,including:

* is there a need for a PIP?

* if a PIP is deemed suitable, should its aims be altered?

* if a PIP is deemed suitable, who should now run it?

* what are the resource and strengthening requirements for a long term programme?

2.5 These questions required further revisions to the Terms of Reference, detailed in A andB above, for the TA mission. However, in view of the changes and the limited timescales of the TAmission, it was agreed to fulfil the many objectives as far as was possible, including delineating possibleoptions for the way forward.

2.6 Several meetings were held during the TA mission; brief meeting notes of selectedmeetings are contained in Annex 2. The meetings included discussions with the Permanent Secretary ofthe MTE, the Director and staff of the DoE, the SIRDC, the CZI, the ZIE, the SADC project, industrialrepresentatives, equipment suppliers and potential seminar organisers.

-4 -

Ill. DISCUSSION OF IMPLEMENTING AGENCY OPTIONS

General Discussion

3.1 Delegates to the workshop held in Nyanga in December 1993 universally accepted theneed for a NEEIP covering all end user sectors and all fuels. A particular urgency for a NEEIP wasperceived, especially in view of the relatively large increases in fuel tariffs since 1991. A wide range ofprogrammes was suggested in order to attain the many benefits that were perceived to derive from aNEEIP. The workshop also discussed and made recommendations on the co-ordination, organisation andimplementation of a NEEIP. In particular, there was general understanding that the govermment couldsupport a NEEIP by formulating and pursuing policies consistent with the aims of a NEEIP; by enactingand policing supporting legislation; and by implementing appropriate fiscal measures.

3.2 There was significant debate about the nature of the organisation which should beresponsible for implementing the NEEIP. At the end of the debate, the workshop had come down firmlyin favour of an IA outside the government. In particular, the workshop recommended that the SIRDC beinvestigated as a possible host for an IA. The workshop recommended that an overall AdvisoryCommittee provide advice to the DoE and the IA, the advice covering strategic issues, the IA energysaving effectiveness and value for money.

3.2 Investigations by the DoE after the workshop showed that the SIRDC had constraintsupon its operational autonomy, constraints that would prohibit it becoming an effective IA. However,changes were being implemented in the mandate of the SIRDC, changes that would increase autonomyof operations. In the light of this, the mission considered four options for an IA host. These were theSIRDC, the DoE, a Government Project or Unit, and an as yet unspecified organisation. The options arediscussed in the Section 3.4 and a recommendation made in Section 3.14.

Discussion of Options for an IA

The SIRDC as an IA

3.4 Description: The SIRDC becomes an IA, effective from July 1995 . To do this itneeds to recruit staff by April 1995, staff who then undergo training in preparation for the July opening.Office space and supporting infrastructure have been promised by the SIRDC on that timescale. Budgetsfor staff still need to be secured, though the SIRDC say that moneys for 3 or 4 staff will be in the budgetrequest for FY95/96; they are a very high priority and are thus 'guaranteed'. The IA would be part of theEnergy Institute; its business performance (in terms of income against expenditure, pensions, taxes etc)would be managed through the SIRDC management chain (this arrangement is similar to that of ETSU).

3.5 The DoE would contract the IA for specific programmes/tasks, all contracts havingspecific targets. The DoE would manage these contracts to ensure that targets are met. The overall co-

The assumption is made that SIRDC will be the home of the 1A by the beginning of the FY95/96. However thesedates are only indicative. Chapter 7 described the next steps that should be followed to have an IA operationalwithin the SIRDC.

- 5 -

ordination of the NEEIP would be the responsibility of the DoE; the DoE would also be responsible forenacting and policing complementary policies and legislation.

3.6 A NEEIP Advisory Committee, chaired by the MTE or DoE, would provide end useradvice on strategy to the DoE and IA; it would also give public accountability to the NEEIP. TheAdvisory Committee could be made up of end users and energy suppliers; the Committee would meetthree or four times a year. An overall strategy for the country would be drawn up (note, this will taketime and be done in phases; while a full strategy is drawn up, an increasing number of programmeswould be ongoing). The strategy would include targets and proposed programmes for which the IA/DoEshould seek funding and policy actions for the DoE.

Advantages

* The SIRDC has ideal independence from government (IE its bureaucracy and personnelrestraints, in terms of salaries and skills);

* The SIRDC as a whole is aiming to be close to the market and thus should be close toend users and be able to understand their needs;

* The SIRDC has possible salary budgets from July 1995, budgets that appear to contain apossibility of medium to long term stability;

* The SIRDC can provide office space in the Administration Block until the EnergyInstitute is built;

* The SIRDC has good supporting infrastructure (event management, printing, contractsskills, finance skills etc.);

' The housing of the IA at the SIRDC had support from almost all persons spoken toduring mission;

* If promised timescales are met, an IA could be up and running with partially trained staffby July 1995.

Disadvantages

* Structures for the Energy Institute do not yet exist, so internal management structuresand mechanisms of an IA are not known; it is not fully clear that compatibility with aNEEIP and its management by DoE is guaranteed;

* As the Energy Institute does not yet exist, an IA would not have existing end usercontacts upon which to build;

* Staff that would be employed in the IA are of an unknown quality and experience.

3.7 The bottom line is that any IA would be starting from scratch in a new organisation thathas, as yet, not proved itself in the market place; problems that are associated with this fact are detailedin Section 3.14.

-6 -

The DoE as an IA

3.8 Description: The DoE could either set up a new section or incorporate an IA withinthe existing Energy Conservation Section. If current staff can be re-allocated, office space assigned andsupport facilities organised, this would enable an IA to be put in place in the very near future.Considerable training of assigned staff would be required and mechanisms found for overcomingstandard government bureaucratic procedures.

3.9 Government would also be responsible for enacting and policing complementary policiesand legislation and for overall co-ordination of the NEEIP. This could be a different section within DoE,or be the same section. Independent advice, on overall strategy, could be sought from an AdvisoryCommittee made up of end users and energy suppliers; the Committee would meet three or four times ayear.

Advantages

e The DoE already has staff, so if some staff could be reassigned, an early start could bemade with an IA; training would be needed for staff to be effective;

- The DoE has office space which could be made available for an early start;

v Government already has good access to the rural sector infrastructure, so links to thissector could be easily achieved.

Disadvantages

e It is government policy to remove implementing actions away from government;

* The skills required to be an effective civil servant are different from those required torun a successful IA;

* Govemment salaries will inhibit the recruitmnent and retention of appropriately skilledstaff, as shown by the loss of staff since the workshop in Nyanga; staff are currentlystretched, so re-allocation to new duties would cause problems elsewhere;

* The bureaucracy of government inhibits the successful running of an IA, in particular asnecessary support infrastructure is not readily available;

* For many reasons, it is very difficult for govemment to establish sufficient levels of trustwith end users for it to be an effective IA.

Government Project or Unit

3.10 Description: Government could set up a special unit, recruiting skilled staff on acontract basis (as is done, through the UJNDP, for the GEF Photovoltaics project). Other staff could be

- 7 -

seconded from the DoE to serve with the unit, staff who would receive allowances for duty away fromthe office (thus in effect gaining a salary increase). The unit, or at least the external people recruited toit, would agree to meet specific programme targets and undertake specified tasks. The monitoring ofprogress would be undertaken by the DoE.

3.11 Government would also be responsible for enacting and policing complementary policiesand legislation and for overall co-ordination of the NEEIP. Independent advice, on overall strategy,could be sought from an Advisory Committee made up of end users and energy suppliers; the Committeewould meet three or four times a year.

Advantages

* Appropriately skilled staff could be recruited to lead the unit and take key positions;

* The DoE already has staff, so if some staff could be reassigned, an early start could bemade with an IA; training would be needed for DoE staff to be effective;

* Government already has good access to the rural sector infrastructure, so links to thissector could be easily achieved.

Disadvantages

* Long term security is not certain; the GEF project is of 5 years duration only. This doesnot give long term sustainability and could cause problems in retaining externallyrecruited staff;

* The necessary support infrastructure, in terms of contracts, finance, event management,technical writing and printing resources, would need to be identified: if these came fromgovernment, bureaucratic delays would cause difficulties;

? It might be difficult for such a unit to build up the trust of all end user sectors (inparticular industry and commerce, the first target areas for energy savings), as therewould be a perception that it was very close to government;

* The DoE would need to secure office space and appropriate facilities away from theDoE; however, this might not be a difficult task.

Unidentified Organisation as IA

3.12 Description: The initial ESMAP/ETSU mission in August 1993 and the discussionsat the Nyanga workshop explored several possible hosts for an IA. These included those mentionedabove, as well as the University of Zimbabwe and private consulting firms. These organisations werenot recommended by the workshop for a variety of reasons, including:

* The UZ was too removed from the private sector for the IA work, work that is marketoriented and does not directly include technical research;

-8 -

* Private consulting firms could have a conflict of interest with any energy consultancywork; engineering consulting firms will, however, be encouraged to become active in thesmall energy consultancy market that will be generated by a successful NEEIP.

3.13 As there was a limit to the amount of work that could be undertaken during the Oct 1994mission, and because the workshop held in Nyanga had rejected these options, they are not consideredfurther in this report.

Recommendation for the IA Host

3.14 Of the three identified options for the IA host, the SIRDC appears to have many clearadvantages over the other two. These include factors such as: the IA has independence from governmentin terms of its freedom from bureaucracy, salary structure and perception in the market place; it has thepromise of a good supporting infrastructure, an infrastructure that covers all the necessary functions; ithas a good possibility for a long term mechanism; and that clear, effective lines of responsibility andaccountability can be set up between the DoE and the IA.

3.15 In terms of the identified disadvantages of following the SIRDC route, all relate to thefact that nothing is currently is place. This is also true of the other two main options; indeed the SIRDCroute holds the most promise for tackling outstanding issues quickly and successfully. The SIRDC routewould thus be the best option for meeting the need for urgent action, as highlighted by the workshop inNyanga, and indeed, in all meetings that led to the workshop.

3.16 Thus, it is a clear recommendation of this report that the option of housing theImplementing Agency in the SIRDC be pursuedv If proposed timescales are to be kept, urgent actionis required by DoE, the SIRDC, GoZ and Donors; f all parties can take co-ordinated action quickly, itis possible for the Implementing Agency to be up and running by July 1995.

3.17 The remainder of this report assumes that the SIRDC does become the host of the IA.Chapter 4 delineates responsibilities and roles for all players involved in running a NEEIP and theremainder of the report discusses interim, preparatory work. It must be born in mind, however, that thereare still unresolved questions and important points that need to be resolved. In particular the followingare the major outstanding issues:

* SIRDC needs to obtain staff budgets, and have office space ready, by July 1995;

* SIRDC has to recruit staff who have the optimum skills by April/May 1995;

* SIRDC has to have secured a change in its mandate by July 1995;

* Appropriate management structures and accountability for the IA and the NEEIP have tobe discussed and agreed by July 1995;

* GoZ needs to arrange initial programme funding and funding for training andprofessional support for the IA by April/May 1995.

- 9 -

IV. NEEIP PLAYERS, RESPONSIBILITIES AND ROLES

DoE Roles and Skills

DoE Roles

4.1 The principal role to be undertaken by the DoE, as recommended by the workshop and inline with the public service reforms underway in Zimbabwe, is to be responsible for policy and co-ordination issues related to the NEEIP. As the owner of the fuel suppliers, the DoE also has a key role inensuring that they play a full part in the NEEIP.

4.2 The policy and co-ordination issues related to a NEEIP are a sub-set of wider energypolicy issues for DoE, which includes planning for the future growth in demand. Wider energy policy isbeyond the scope of this report and is thus not considered further.

4.3 The role of the DoE requires activity in the following areas:

* DoE will need to co-ordinate energy policy with wider government policy, whichincludes highlighting the effect on energy use of existing legislation and of anylegislation proposed in the future; this will include in particular economic, industrial,trade, transport and environmental policies;

* As part of a wider energy policy, the DoE should evolve and clearly state policy aimswith respect to energy efficiency; this includes ensuring that energy efficiency policy iscompatible with wider energy policy;

* As part of wider energy planning, the DoE should set targets for the contribution ofenergy efficiency to meeting future demand growth in all fuels;

* DoE will need to ensure that targets for individual activities are met, acting in the mainas a customer of the IA, whose role it is to deliver the targets. DoE will also have adirect management role of activity in the Government Estate, though it is likely that theMinistry of Public Construction will be targeted with delivering results within theGovernment Estate;

* DoE will need to co-ordinate all activity relating to a NEEIP; this includes ensuring thatany separate programmes (e.g. the SADC project) are co-ordinated with the NEEIPactivity;

* DoE will need to prepare and implement any legislation and other regulatory instrumentsthat are required within the energy efficiency policy,

* DoE will need to negotiate funding for the IA and its programmes. Even if funding forcore operations can be secured through the Research Council of Zimbabwe, funding willstill be needed for individual programmes. DoE has the responsibility for co-ordinatingthis, a role that includes ensuring donors are approached where appropriate;

-10-

* DoE will need to put into place any fiscal measures required in support of a NEEIP;these could include tax incentives, fuel utility regulation and grants. DoE work couldinclude the administration of a national energy efficiency fund.

4.4 The current ongoing SADC and ZEEP programmes should be incorporated into theNEEIP. As detailed above, the DoE has a role in ensuring that activity through the SADC project isundertaken in conjunction with an IA's activities. The training and demonstration activities that arelikely to be proposed within the SADC project will form a useful base upon which the IA's activity canbuild. There will be mutual benefit to both in co-operating.

4.5 The ZEEP project, currently run by the Energy Conservation Section of the DoE,contains both policy and implementation activities. The policy levers, the independent powerproduction, the decentralised power production and overall co-ordination tasks relate to policy issues (thedevice-based studies will probably also lead to policy issues). These are then areas which should bedriven and co-ordinated by DoE. In future study work, the DoE should commission the most appropriateconsultant to undertake the work; in some cases this could be the IA. However, the proposeddemonstration activities are clearly an implementation activity. The most appropriate organisation toundertake this will be the IA; this would help the IA staff develop appropriate skills and ensure that co-ordination of demonstration results with wider information programmes were effective. It would be theresponsibility of the IA to ensure that the results from each project were disseminated in the mosteffective way to the most appropriate audience.

DoE Structure

4.6 At the national workshop in Nyanga in December 1993, the Permanent Secretary ofMTE outlined his thoughts for the role of Government. In particular, he indicated that two of the DoE'ssections related to policy (Energy Economics & Planning and Energy Administration) and two related toimplementation (Energy Research & Development and Energy Conservation). He was keen to ensurethat the DoE focused on policy issues, which thus raised questions as to the activities of the twoimplementation sections.

4.7 It is beyond the scope of this report to make recommendations as to future DoEstructures; a full understanding of the day to day work of the four DoE sections was not part of the TAmission's work. However, with this caveat, a few thoughts on Terms of References and structures aredetailed below; these thoughts are designed to promote discussion of future structures and should not betaken as recommendations.

4.8 The current Terms of Reference for the four sections of the DoE were provided on thelast day of the TA mission. Those relating to the Energy Conservation Section are detailed in Annex 3.These Terms of Reference currently contain a mixture of policy and implementation activities. If thesection is to undertake the roles outlined in Section 4.1, thus concentrating on policy and planningactivities, the section will need to re-align its activities. It will need to work closely with the EnergyEconomics and Planning Section in overall planning, and with the Energy Administration Section inensuring that the fuel suppliers are involved in a NEEIP.

4.9 In view of the Permanent Secretary's desire to focus on policy issues, the role of theEnergy Research and Development Section will also need to be re-aligned. As both it and the Energy

Conservation Section are involved with policies and activities in the demand side, they will have someoverlap if the current structure remains. This will be especially so in issues of fuel switching and in theimportant rural sector. Perhaps by combining their re-aligned activities, a stronger section co-ordinatingend user energy policies could be formed?

4.10 In any case, there will need to be DoE personnel dealing with the NEEIP. The personnelwould have overall responsibility for the NEEIP and manage the IA. They would also co-ordinateactions carried out by other bodies (e.g. the SADC project) with the NEEIP and would need to haveresponsibility for areas such as import/export regulations, tax incentives for energy efficiency,imposition of any standards or laws, labelling regulations, instigating any pricing formulas for energyefficiency on fuels, assessing the energy efficiency implications of proposed new policies of othergovernment departments and providing stimulus for campaign within the Government Estate.

DoE Skills

4.11 The DoE -will have as its main functions the following roles:

* Policy formation,* NEEIP co-ordination,* Securing finance for the NEEIP,* Legislation formation.

4.12 It will thus be important that staff have the following skills:

* Policy skills,* Strategy formation skills,* IA and project/contract management skills,* Negotiation skills,* Co-ordination skills, including the ability to ensure that a progranme in the Government

Estate achieves targets,* Target formulation skills.

IA Roles, Structure, Personnel and Equipment

IA Roles

4.13 It is envisaged that the IA should act as the central focus for energy efficiency in themarket place and to implement appropriate programmes, both to stimulate the market and to developsupply side infrastructure (consultants and equipment supply). The main aim of the IA should be todevelop a self-sustaining market in energy efficiency. The roles of the IA include:

* Act as the central resource for energy efficiency activities within Zimbabwe. This wouldinclude developing good relationships with end users and all players in the consultancysector, amongst the equipment supply sector and with the fuel supply industries;

- 12-

* As a contractor to the DoE, provide appropriate information from which the DoE canformulate policies and new programmes. This work would include identifying, costingand setting targets for new programmes;

* As a contractor to DoE, and perhaps Donors, implement individual programmes that useand build upon existing infrastructure.

Structure and Responsibilities

4.14 It is recommended that the IA initially employs a small team of three or fourprofessional staff, supported by one person acting as secretarial and database support. As the NEEIPevolves, the IA will need to grow and its structure will also need to reflect changes in emphasis of theNEEIP. However, an initial structure could be:

4.15 Director: Responsible for managing the IA, for management of contracts (e.g. DoE orDonor) won by the IA, for general NEEIP liaison including relationships with fuel suppliers, for co-ordinating strategic work, and for putting together individual programmes to Donors. The Director willbe responsible for agreeing performance targets and for reporting progress against targets. Given thesmall size of the IA, the Director will also need to become directly involved in undertaking work: themain core of the Director's work could be strategic work, in terms of new programmes, their objectivesand targets. An important initial activity will be to review all work done in the last five years inZimbabwe, with the aim of fully understanding the lessons to be learnt, and of selecting work that canform the basis for the IA's strategic work.

4.16 Industrial/Supply Side Manager: Responsible for managing activities in theindustrial sector (perhaps including commercial farming as appropriate), for developing energyconsultants and for developing the equipment supply industry and training courses. Work would includestrategic work in looking for new effective opportunities for programmes, managing programmes andacting as the main contact for the industrial sector. The initial programme to run would be aninforrnation programme that produced Zimbabwean Case Studies and Guides and, where appropriate,Comparative Energy Consumption Guides; the scope of the programme would cover managementtechniques and no/low cost techniques. Other programmes needed in the near term would be aMonitoring and Targeting programme to encourage monitoring of energy, a programme to train energyconsultants and stimulate surveys, the development of appropriate training courses and a programme tostimulate medium cost measures.

4.17 Buildings/CommerciallTransport Sector Manager: Responsible formanaging activities in the commercial sector, for helping co-ordinate the government estate programme,for the transport sector and for any initial domestic sector programme. Work would include strategicwork in looking for new effective opportunities for programmes, managing programmes and acting asthe main contact for the buildings and transport sector. The initial activity could be an informationprogramme in the commercial and Government Estate sectors, covering the production of ZimbabweanCase Studies and Guides and, where appropriate, Comparative Energy Consumption Guides. Otherprogrammes to be developed in the near term could include a driver training programme, vehiclemaintenance courses, a Monitoring and Targeting programme for commercial and government buildings,development of appropriate training courses, the promotion of passive solar techniques and, in themedium term, a programme for solar water heaters in the domestic sector.

- 13 -

4.18 Marketing Manager: Responsible for drawing up marketing programmes forspecific programmes, undertaking specific market research that includes measuring the effectiveness ofprogramme components and of whole programmes, and for the development and upkeep of appropriatedatabases. One of the actions that could be initiated early on by the Marketing Manager is an effectiveprogramme to raise the awareness of senior management in industry, commerce, transport andgovernment to energy efficiency, possibly in the form of a 'Senior Management Awareness Campaign'.Work would involve strategic work in understanding barriers to energy efficiency improvement, lookingfor appropriate influencing methods (including working with existing infrastructure and end userchannels for information programmes), the promotion of training courses and market research oneffectiveness. As part of the work, the Marketing Manager could support the Director in investigatingdiverse avenues of finance to generate long term sustainable income and undertake the main co-ordination role with programmes and agencies abroad.

4.19 Secretarial and Database Support: Responsible for secretarial support to theIA, telephone answering service, organisation of appropriate mail outs and the day to day operation ofdatabases.

4.20 Support Activities: Various support activities will be required by the IA. It isunderstood that these will be available through the SIRDC Administration Block (either directly ororganised through standing sub-contracts). These services include: contracts services to write and issuecontracts (the programmes of work would be the responsibility of the IA staff), finance services (in termsof bill paying), event organisation, technical writing support, printing facilities and postal/courierservices.

4.21 The above gives a possible division of responsibilities assuming a professional staff offour. Even if this is possible within budgets allocated, the exact division of responsibilities needs to beowned by the staff and will, to some extent, be determined by the skills they bring to the job. In a smallteam of four, it will be important that there is some overlap between responsibilities (to ensure coverduring absences or departures and to build up team spirit) and the split described above allows for this.Against this, it will also be important that end users feel that they have a single point of contact (e.g.industry has the Industry/Supply Side Manager).

4.22 It would be possible to supplement the initial team with seconded staff from the DoE. Ifthis is possible, exact roles and tasks would need to be identified; this might again affect the split ofresponsibilities detailed above.

4.23 As the IA grows, consideration will have to be given as to how to split posts. To someextent this will be determined by the direction of the growth, though it is recommended that an individualis kept as a single focus for an end user sector. It is possible that growth could need the recruitment offunction specialists (e.g. a training specialist), thus splitting out functions.

4.24 However, there will be a limit to the growth of the IA if it is to remain as a body thataims to stimulate activity within the private sector (the best sign of self sustaining activity). If the IAbecomes too involved in commercial work outside of its programme management activities (i.e. byselling training), it may lose any reputation for independence it has built up.

- 14 -

Personnel Required

4.25 The IA will have as its main functions the following roles:

* Strategic work,* Programme management,* Stimulation of the market.

4.26 It will thus be important that all professional staff have the following skills, or at least beable to demonstrate that they can quickly develop them:

* Strategic skills,* Good verbal and written communication skills at all levels, ranging from senior

management (private and government) through to operator level,* Project management skills,* Proven self-motivation,* Industrial experience, or similar; note, this implies a detailed knowledge of how

companies work and make decisions and thus a pure academic research background isusually not found to be appropriate,

* Probably a relevant honours degree or higher qualification.

4.27 In addition, (i) the director will need proven financial and staff management skills,together with an understanding of the requirements and workings of government; (ii) the two technicalmanagers will need a proven understanding of scientific and engineering concepts; note, they shouldshow an ability to pick up concepts quickly, but they should not be 'hands-on' engineers as the work doesnot involve this; and (iii) the marketing manager will need a proven marketing background, though asales background is not necessarily helpful

Equipment Required

4.28 The IA will need standard office furniture, including office space (for personnel andstorage of publications), desks, filing cabinets, stationary and telephones. It is understood this furniturewill be supplied by the SIRDC.

4.29 In addition, the IA will need computer facilities (five computers, perhaps networked to asingle printer). It is recommended that the software includes word-processing and spreadsheet packages.A software package for the production of overheads will be required, as will a database package (for acontacts database and for energy saving logging). Finally a financial package will be required, a packagethat can track direct IA costs, sub-contracted costs and income.

4.30 The IA will also need access to transport. A key part of its role is to meet end users tobuild up relationships, ascertain their needs, to recruit projects (e.g. Case Studies) and to appear atevents. Initially, most of the travel requirements will be between and around cities and towns (the mostcost effective sectors to initially operate in will be the industrial, commercial, transport and GovemmentEstate). It would not be unreasonable to expect professional staff to be out of the office two days a week.Transport could thus be acquired through a negotiated contract with a hire company or through the

- 15 -

purchase (with maintenance agreements) of one or two vehicles (one of which should be an estate as aminimum, to enable the transport of dedicated material).

4.31 Equipment for events will be required, though hotels can provide slide projector andoverhead facilities. Thus, in the initial stages the IA will not need to own its own equipment. However,the development of a logo and background boards for use at events will need to be considered.

Funding Mechanisms and Management of the NEEIP

NEEIP Management

4.32 The NEEIP is the overall responsibility of the Minister of Transport and Energy,operating through his Ministry and specifically the DoE. It is the DoE that is responsible for formnulatingthe overall policy framework, for securing finance, for commissioning individual programmes, forensuring the programmes are implemented to achieve policy objectives and for overall co-ordination.

Line Management of the IA

4.33 Assuming the SIRDC is the home of the IA, the core running costs of the IA (in terms ofstaff and office space and facilities) are to be provided through the SIRDC's budgets (i.e. originatingthrough the Research Council of Zimbabwe). The Director of the IA will be responsible, in a linemanagement sense, through the Head of the Energy Institute, to the Director General and theManagement Board of the SIRDC. This responsibility will include responsibility for the businessrunning of the IA. As the Director of the DoE is on the Management Board of the SIRDC, the DoE willbe in a position to report unsatisfactory performance.

Programme Management

4.34 Scenario 1: DoE direct control. The financing of costs incurred throughrunning programmes could come from three possible DoE sources: the taxpayer, from Donors and/orfrom a fuel use levy administered by the DoE. In these cases the DoE is clearly responsible for securingthe finance and for managing contracts on behalf of the taxpayer, Donors and/or any fuel levy payers; theprogramme implementation undertaken by the IA should be on a contractual basis. with agreed activitiesand targets to achieve. The DoE will need to manage any contracts with the IA, perhaps throughmonthly or quarterly meetings. The contracts between the DoE and IA should clearly state that activitiesare within the framework of a NEEIP and the IA should thus present them as such (i.e. activities are notowned by the IA).

4.35 Scenario 2: DoE indirect control. At the time of the mission, it was unclearas to who would be responsible for approaching Donors and for then managing any money from Donors;it is possible that the National Planning Commission would require the SIRDC to be the initiator ofrequests. It was also possible that the SIRDC budget could be another source of funds. In either case, ifprogramme budgets are secured through the SIRDC, it will be more difficult for the DoE to control theIA and ensure that it works within the overall framework of a NEEIP. However there are mechanismsthat would allow the DoE to have some control even in this case, in that the Director of the DoE is on theManagement Board of the SIRDC. There should be a clear mechanism in place that ensures anyproposal for funding (either to be financed by the taxpayer or a Donor) is fully endorsed by the DoE

- 16-

before it can proceed. There will also need to be a clear mechanism for reporting on a regular basis tothe DoE on the progress of all programmes. Whilst a formal mechanism would need to be put in place,this scenario would be workable, though it is likely to be more cumbersome than the first scenario. Inthis second scenario, it is possible that the Advisory Committee (see below) would need a more powerfulrole.

NEEIP Advisory Committee

4.36 To ensure public accountability for the NEEIP, it is recommended that an independentAdvisory Committee is set up to oversee strategies, policies and progress. It will be important that theCommittee is seen as an effective body and not just as a talking shop or as window dressing. For this tohappen, the advice of the Committee will have to be, and be seen to be, heeded.

4.37 The role of the Committee could be to:

* Provide advice on the overall strategic direction of the NEEIP;

* Provide advice on the strategy of individual programmes and projects;

* Receive reports on the progress of individual programmes;

* Provide comments on the overall management and progress of the NEEIP.

4.38 The fundamental purpose of the Committee is to provide 'practical advice' as to whatwill really achieve results within the Zimbabwean economy. The members should thus be mainlyexperienced end users from target sectors. Indeed, one of the functions of members will be to reportback to end user organisations on progress, in the process building up a momentum for the NEEIP.

4.39 It will be important that the Committee does not become too big and unwieldy; aCommittee of between ten and fifteen members would be appropriate. It would be chaired by the DoE,include representatives from ZESA, NOCZIM, Wankie Colliery Company and end user sectors; theDirector of the IA would also be included. It could meet three or four times in a year, leaving timebetween meetings for significant progress to be made. The NEEIP will not be active in all sectors fromthe start, as this is impractical; consideration should thus be given to starting with a smaller Committee,expanding it as the NEEIP broadens its activities.

4.40 The Committee is not a forum for lobbyists or political organisations, nor for individualgain or special interest groups. Any such relevant organisations, and a wide range of end users, shouldhave been consulted before any programme strategy is formulated and placed before the Committee.

Potential Strategies and Programmes

4.41 The main aim of the NEEIP is to ensure an energy efficiency industry is built up, anindustry that operates in the private market, thus ensuring sustainability. In order to achieve this,programmes run under the NEEIP will need to provide a platform upon which the equipment supplyindustry and an energy consultancy industry can build, and to create awareness and skills in the end usersectors. The ideal long term goal is for an energy efficiency industry that operates without support,

-17-

though in practice European experience shows that this is not totally achievable and that some long termlevel of market stimulation is necessary.

4.42 The NEEIP will run a series of programmes, each of which has targets in building up anarea of the energy efficiency industry. It will not be possible to tackle all end user sectors from the startof a NEEIP, nor will it be possible to tackle all parts of an energy efficiency industry from the start.There will, however, need to be an overall strategy for tackling all sectors in the long term. The detail ofthis strategy will evolve with time.

4.43 In the short term, it is recommended that the NEEIP focuses on sectors and activities thatgive the NEEIP the greatest return in terms of achievable energy saving. This implies that initial enduser sectors to focus on are the industrial, commercial and Government Estate sectors. The transportsector, commercial farming and urban domestic sectors are likely to be the next sectors where activitycan yield energy savings without large expense; the rural domestic sector will be the most difficult sectorto tackle even though it is the largest energy consumer. Indeed, activity is this sector will need to beclosely co-ordinated with the provision of energy through decentralised supply, and thus with projectssuch as the GEF project.

4.44 Funding for base load inforrnation programmes and training will be initially required,followed by extra funding for additional programmes. The size of the funding will dictate the types ofprogramme that can be run (e.g. grant programmes are expensive, so their form would depend on thefinance available) and the sectors within which the NEEIP will be active. The issues of funding arediscussed in Section 4.64 and in Chapter 7.

4.45 The initial activities of the NEEIP will need to establish its existence within the initialtarget sectors, establish the IA as a focus of activity and produce real energy savings. Any strategy willneed to contain a balance of activities that both generate short term savings and start to tackle longerterm issues. Thus initial activities need to tackle known barriers to energy efficiency, especially (forindustry, commerce, transport and the Government Estate) information barriers and skills barriers. Lateractivities will need to tackle further barriers identified as a result of initial activities and studies.

4.46 -The following is an ambitious provisional outline strategy for activity, a strategy that shouldbe constantly reviewed; priorities and individual types of programme will need to be determined after itis known what resources and skills are available (activities could also be combined as appropriate):

Years I and 2

* Review activities ongoing within Zimbabwe,* Initiate a comprehensive, long term, information programme aimed at industry,

commerce and the Government Estate,* Initiate a campaign to generate awareness and commitment at senior levels in industry,

commerce and the Government Estate, a campaign that includes the promotion ofMonitoring and Targeting,

* Undertake preparatory work for a training programme for energy consultants and forvarious technical training courses,

* Assess equipment supply shortages,* Assess effectiveness of the IA's and NEEIP's activities.

- 18-

Year 2 and 3

* Continue information programme, senior management commitment campaign andMonitoring and Targeting programme,

* Initiate training programme for energy consultants and various technical courses,* Prepare a programme to stimulate energy audits in industry, commerce and the

Govemment Estate,* Undertake preparatory work for transport sector initiatives, including training for

maintenance personnel and for drivers and a Monitoring and Targeting programme* Study options for solar water heater programmes,* Study options for domestic appliance programmes,* Assess effectiveness of the IA's and NEEIP's activities.

Years 3 to 5

* Continue information programme, senior management commitment campaign andMonitoring and Targeting programme,

* Continue support for training and energy consultancy,- Undertake preparatory work and initiate a programme for driver training and

maintenance personnel training in the commercial and public transport sector,- Undertake preparatory work and initiate a programme for cost effective medium cost

measures in industry, commerce and the Government Estate,= Initiate a programme for solar water heaters in the domestic sector,e Undertake preparatory work and initiate an educational campaign in schools, a campaign

aimed at the urban and rural domestic sectors,e Assess effectiveness of the IA's and NEEIP's activities.

4.47 It should be noted that, as the NEEIP progresses, it is very likely that complementarypolicy, and then legislative, actions will need to be formulated and applied by the DoE. The timing oflater NEEIP activities will thus also be dependent on these actions.

Twinning/Capacity Building for the DoE and IA

Discussion of DoE Staff Training

4.48 The DoE staff will need training in skills necessary for policy formation, strategicanalysis and contract management of an IA and other consultants. Training will also be required in thepolicy options for programme methods; a good start in this was made during the Study Tour made byfour DoE staff to the UK in July.

4.49 It is recommended that further training of DoE staff consists of: a formal training beforethe IA is operational, formal training courses after the IA has started work (as in any continuousprofessional development programme) and a period of hands on training on the management of the IA inZimbabwe.

- 19 -

Discussion of IA Staff Training

4.50 The IA staff will need training in the skills necessary for strategic analysis and forprogramme management. This training will need to include an awareness of the potential technologiesand techniques for improving energy efficiency, a knowledge of national programme types triedthroughout the world and of successful methods of running programmes. The training will also need toensure that the staff have training in personnel skills that they need.

4.51 The training for IA staff should not include detailed hands on energy consultancytraining, as that will not be a function of the IA; it is the function of the IA to stimulate an energyconsultancy market for private sector energy consultants, and it is those potential consultants that willneed the hands on energy consultancy training.

4.52 It is recommended that the training for IA staff consists of: a formal training before theIA is operational, short formal training courses after it is open (as in any continuous professionaldevelopment programme) and a period of hands on training within the IA in Zimbabwe. The trainingcould be achieved through the involvement of one or more European agencies.

Potential Twinning Package

4.53 The formal training courses, both before the IA is operational and after, should contain amixture of existing training courses in Zimbabwe and of formal training with European IA's in Europe.

4.54 The hands on training could be achieved through several mechanisms, including:

* The permanent secondment for a period of many months of a member of staff from aEuropean IA,

X The attachment of several specialists over a period of time, each specialist imparting anew aspect of successful NEEIP running,

* The attachment to the NEEIP of a European IA, with advice given at distance onparticular issues as and when required,

* A mixture of the above options.

4.55 The advantages of the first method are that there is one person on the spot to tackleissues as they arise and the person will build up good local knowledge; the disadvantages are that there isa danger that the IA in particular could become dependent on the foreign specialist and that the DoE andIA are only exposed to one individual's methods and ideas.

4.56 The advantages of the second method are that the DoE and IA will receive experttraining in all relevant topics and be exposed to differing ideas; the disadvantages are that no singletrainer owns the training or initial success of the NEEIP and that no good local knowledge is built up bythe foreign trainers.

4.57 The third method ensures that the NEEIP has access to as much specialist expertise as ispossible, but the advice will be given in a vacuum and will not be owned by individual advisors.

4.58 The optimum method of hands-on training and capacity building for the NEEIP is thefourth option, an option that combines the advantages of all the others. It will be important that an

- 20 -

individual manager from the training IA is involved throughout the training period, to ensure that localknowledge is built up and used. Thus, a suggested twinning programme could be:

4.59 Initial Training. This training would take place before the IA becomes operational,and would consist of two main packages:

a) Formal training courses for DoE staff (perhaps two members) on:

* Project and contract management (one week),* Policy options for energy efficiency (two weeks).

The first course might be available within Zimbabwe, the second would need to be organised by thetwinning agency (perhaps a formal existing European course, or alternatively part formal existing courseand part specially tailored course).

b) Five weeks training for IA staff, training in the country of the twinning agency. Thetraining would include:

e The management and functions of an agency (one week),- Strategy formulation and key issues (one week),- Information programmes, including Monitoring and Targeting and effective targeting of

material (one week),* Technologies and techniques for energy efficiency (one week),* Energy survey programmes and training programmes (one week).

The aim of the training is not only for the IA staff to pick up new knowledge, but also to stimulateinteractive discussion of initial activities, strategies, programmes and working methods for the IA. Itwill include not just information on the various programmes, technologies and techniques, but alsotraining in personnel skills. It will also provide an opportunity for the small team to get to know eachother.

4.60 Hands-On Training. The DoE and the IA will require hands-on training throughsecondees during an initial period. It is recommended that this should not be the same person, as theadvisor for the IA would automatically become part of a contractor organisation and would thus be in adifficult position when advising the DoE, i.e. the customer. It is recommended that a part time secondeeadvises the DoE on its role and in the setting up of the Advisory Board, and that a full time secondeeworks with the IA. It is important that both secondees' roles are one of training and do not become oneof running the NEEIP or the IA.

4.61 The period of the secondment to the DoE could initially be for a period of 2 months,with two or three extended returns. The period of the IA secondment could be initially for 12 months;there should ble a provision for an extension or, perhaps more beneficially, for two or three substantialreturn duties. The return duties would be to discuss progress and advise on new proposed programmesand directions.

4.62 During the initial years of the NEEIP and the IA, visits from individual experts wouldalso be appropriate in order to further train DoE staff and IA staff. The hands on training could cover:

-21 -

a) For the DoE:

* IA management,* Policy options,* Co-ordination training,* Terms of reference and personnel for the Advisory Committee,* Advice on the roles for, and interaction between, the DoE and IA.

b) For the IA:

* Field work training,* Individual programme implementation,* Target setting,* Effectiveness assessment methods,* Database systems,* Marketing activities,* Strategy formulation.

4.63 Formal Training. The formal personal development training courses required afterthe NEEIP and IA are up and running will need to be identified once the personal strengths andweaknesses of both DoE and IA staff can be more clearly identified and once roles become moredeveloped.

Sources of Finance

4.64 The potential sources of finance for the NEEIP, IA and individual programmes willcome from a variety of sources, including:

a) GoZ: Raised through taxes and administered either through the Research Council ofZimbabwe or through the DoE. Initially, IA salaries and office support is envisaged tobe available through the SIRDC budget, a factor that gives the IA a prospect of long termstability and sustainability (provided that this source of funding continues). The DoE isa potential source for funding of individual programmes.

b) Fuel Levy: A levy could be raised on some or all fuels to finance individualprogrammes. In practice, programmes financed in Europe through this method arenormally designed to ensure that only a small percentage tax is placed on fuels.

c) Donors: Donors can be requested to finance individual programmes, or groups ofprogrammes, within the NEEIP. It is recommended that one initial Donor is sought toprovide funding for the initial twinning and information programmes. It is believed thatCIDA, ODA, SIDA and German Agencies might be interested in funding variousactivities. However, an important factor in Donor funding is that it is not a long termmechanism for ensuring sustainability.

d) End Users: End users, and the equipment supply and consultancy industries, canprovide finance for individual activities within a NEEEP. Every effort should be made to

- 22 -

obtain funding for these sources, as it then shows the NEEIP has a value in the eyes ofthe end users. They are then more likely to implement actions. Funding from theequipment supply industry and consultants should be received cautiously, as theindependence of the IA will be crucial to the success of the NEEIP.

- 23 -

V. PILOT INFORMATION PROGRAMME (PIP) OPTIONS

5.1 The concept behind a PIP is to show energy efficiency activity within Zimbabwe whilsta more permanent infrastructure is set up (i.e. an Implementing Agency). It is thus conceived as aninterim measure of limited scope, a measure that is part of a range of activities that builds up to an IA.

5.2 This Chapter details possible objectives and scope of a PIP, recognising that budgets willbe limited and that it is only part of a build up to the IA. Chapter 6 details the potential options forcombining some of the activities detailed in this Chapter with other preparatory activities for the IAformnation; these other activities would include preparation of the DoE.

Aims and Objectives of a PIP

5.3 The main aims of a PIP are to stimulate energy efficiency activity and interest in theshort term, thus showing the commitment of government to a NEEIP; to provide part of a build up to anIA (including training of DoE staff and the person running the PIP; and to start to build links amongstkey players). Specific objectives could be to:

- be part of a build up to an IA,- show activity in the short term,- disseminate published UK material on energy efficiency,* assess demand for a larger scale information programme,- stimulate discussion on further activities,- monitor material acceptability and any energy savings achieved,* provide initial training and to stimulate discussion on roles in a NEEIP.

5.4 In view of the limited budget available, it is envisaged that the PIP is limited to the largescale industrial sector and consultants, focusing on management techniques for energy efficiency and onno/low cost measures.

Scope and Activities

5.5 A range of main activities could be involved, including some or all of the following:

* Provision of a central library of Fuel Efficiency Booklets, Good Practice Guides andGood Practice Case Studies from the UK programme. The publications could coversector specific opportunities, mainly no/low cost measures. The copies could be for loanonly;

* Provision of multiple copies of some Fuel Efficiency Booklets, Good Practice Guidesand Case Studies from the UK programme. The publications could cover cross-sectormeasures, mainly management techniques and no/low cost utility measures (i.e. steamproduction, compressed air, refrigeration, motors, monitoring, lighting). These are to besent to industry (and consultants?) only on request. There would be a need to ensure that

- 24 -

only one copy of each item goes to each firm (as the total number of copies would belimited), with a careful track kept of what goes where to enable follow-up research to becarried out;

* The holding of two seminars/workshops: the first for senior management and the secondfor engineers. Both seminars/workshops could include generic energy saving practicesand technologies and include Zimbabwean Case Studies. Some details on suggestedcontent are given in Section 5.7 below;

* Development of a database on who has what material, who attended events and, infollow-up work, who has implemented measures and how much energy saving they havemade. Follow-up work would also need to highlight further activities desired by the endusers and the perceived usefulness of the disseminated material and seminars/workshops.Data collected would be in confidence, unless permission is given to release individualdata. Aggregate results on energy saving would be publicised and the database wouldneed to be transferred to the proposed IA when it is set up;

* Back-up facsimile helpline from a European IA, focusing on technical enquires arisingfrom the material disseminated during the programme. This facsimile line would beoperated through the Zimbabwean organisation running the PIP; in the long term the IAwould need to be able to provide this function, so it would be counterproductive to buildup direct links between Zimbabwean industry and a European IA;

e Management and publicity. The publicity activities could include a high profile launch(Ministerial?) at an appropriate event, a press campaign highlighting material available,dissemination via mail outs of material available and the publicising of a few localsuccess stories. Management would include day to day management, organising thepublicity and seminars/workshops, running the database and undertaking follow-up workin conjunction with the IA.

5.6 The above details possible activities that could be carried out within a PIP. The finalchoice of individual components for a PIP will be determined by cost considerations, by who is selectedto run the PIP and by how it fits into an overall build up to an IA. Further consideration of the overallbuild up is given in the next Chapter.

Timescales

5.7 The programme could last for between six and twelve months. A programme, involvingall the activities detailed in Section 5.5 and based on nine months, could involve:

Month IDecide on library and dissemination literature from UK. Import and produce programmepublicity material, including lists /descriptions of what is available. Organise appropriatelaunch, tagging onto an existing event if possible or launching at the seminar/workshop forsenior managers.

- 25 -

Month 2 or 3High profile launch (with Minister?) attached to an existing and appropriate event relevant tosenior managers of industry. Aim to let senior managers know of programme, with the aim ofensuring they at least delegate someone to obtain and read literature. There should beaccompanying press releases. Note, the launch could be part of the senior manager workshop(see Month 3 or 4) instead.

Month 3 or 4Seminar/workshop for senior managers (full day?, audience of 30 to 50). Aim to introduceconcepts of Monitoring and Targeting, motivational techniques for efficiency and discuss criticalsuccess factors for organisational structures for effective energy efficiency drives -withincompanies. Also further promote PIP. Managers should have the opportunity to discuss insurgery sessions.

Month 4 or 5Seminar/workshop for engineers (full day?, audience of 30 to 50). Aim to discuss Monitoringand Targeting and no/low cost measures from a technical and organisational viewpoint.Technical measures would include efficient steam production and distribution, efficientcompressed air generation and distribution, efficiency lighting, refrigeration equipmentmaintenance, possibilities in motors and drives and general good housekeeping.

Months 7 to 9Effectiveness follow-up, judging how material and events were received, their usefulness andwhat new material is desired by end users. Also an assessment of any problems encountered inattempts to implement measures, leading to an assessment of future activities for a larger scaleinformation programme. Assess any energy savings made; though due to the short timescalesbetween the seminars and the assessment, it is expected that not much will have been achieved.It will however provide a useful training exercise in savings assessment.

Months 1 to 9Management and publicity activities. Telephone service in Zimbabwe to respond to requests forliterature and forward more technical enquires to a facsimile back-up help line outsideZimbabwe. Locate and highlight (unaudited) Zimbabwean case histories. Database updating.

5.8 The above details timing of a range of possible activities that could be carried out withina PIP. The final timing and choice of individual components for a PIP will be determined by costconsiderations, by who is selected to run the PIP and by how it fits into an overall build up to an IA.Further consideration of the overall build up is given in the next Chapter.

Running of the PIP

5.9 It is important that any PIP is run as part of a co-ordinated series of activities that buildup to an IA, that skills and lessons learned by all involved in the PIP can be built upon (and thus are notlost), and that activities and knowledge gained are transferred smoothly to the IA. It is envisaged that thePIP is run locally, with back-up support from ETSU and other UK specialists if appropriate.

- 26 -

Possible Zimbabwean PIP Hosts

5.10 DoE. The DoE could buy the CZI mailing list and run the PIP from the DoE officesusing current DoE staff. Events could be organised, in conjunction with the CZI and other appropriatebodies, by DoE directly, or contracted out. Office space, computer facilities and mailing facilities wouldbe provided by the DoE.

5.11 The advantages of DoE running a PIP are: the DoE have staff and facilities currentlyavailable to undertake the work; it could complement existing ZEEP implementation work (if theimplementation phase gets underway before July 1995); and it could provide a training and backgroundfor DoE staff on the issues and problems to be faced by the IA's information programmes, training thatcould improve the DoE management of the IA.

5.12 The disadvantages of the DoE running a PIP are: it is not a role that the DoE will play inthe NEEIP, as it is an implementing role and not a policy role; the direct contacts between the DoE andindustry are not well established, which could reduce the PIP's usefulness; and it might divert effortrequired for the work in securing finance for the IA and on related administrative and policy issues(proposed timescales are short, so full attention needs to be given to this work).

5.13 CZI. CZI have offered office space, event management, computer facilities, andmailing facilities as a contribution to a PIP. CZI would charge for events to recoup event costs. Theonly Zimbabwean cost would be for staff salaries; CZI have in mind a recently retired person at a cost ofZim$10,000/month or less, though another possibility suggested by industry would be a recentlyretrenched young engineer.

5.14 DoE would be involved in a co-ordinating role during the PIP, thus gaining experience inthe NEEIP role. DoE would also be responsible for placing the PIP in a wider framework as part of thebuild up to a NEEIP.

5.15 The advantages of using the CZI to run the PIP are: it has good contacts with the targetmarket, contacts that are at an appropriate level to ensure meaningful activity; the CZI is prepared tocontribute to the running costs of the PIP; it enables key players for the NEEIP to develop theirdissemination roles; it enables the DoE to develop its co-ordination role, and it frees the DoE toconcentrate on the financial, administrative and policy issues in setting up the IA (given the timescalesproposed, this will involve considerable work).

5.16 The main disadvantage of using the CZI to run the PIP is that it currently has no staffavailable to run it. Thus a person needs to be recruited, though CZI believe it would be possible torecruit a retired person quickly. It might be more appropriate for a recently retrenched young engineer torun the PIP, so that, if they proved to be very good, they could be recruited into the IA (they would haveto apply like everyone else, but the experience should put them in a good position) or could go on tobecome an energy efficiency consultant. It would also be important that CZI collaborated with otherappropriate bodies such as the Chamber of Mines.

5.17 TIPS1 . The TIPS programme is currently producing daily and weekly informationsheets that aim to promote trade and technology between 10 developing countries. One of the sectors

Technical Information Promotion System.

- 27 -

covered is energy, though the focus is on hydropower, solar power and biomass. TIPS is thus aprogramme in the business of information dissemination, the main markets apparently being small andmedium enterprises, NGO's and village organisations.

5.18 Whilst TIPS could have a useful dissemination role in the NEEIP, especially in the smallbusiness and rural sectors, it is not recommended as a host for a PIP for the following reasons: theexisting contacts between TIPS and the target market of the PIP do not appear to be good; thedissemination of booklets and guides is outside the core news sheet business of TIPS; and eventorganisation is not a core activity of TIPS.

Recommendation for Running the PIP

5.19 The PIP could be run successfully by either the DoE or the CZI. However, on balance itis recommended that the CZI option be investigated first. This could enable a useful programme to belaunched whilst freeing the DoE for its work in securing finance for the IA and in ensuring that allnecessary policy and administrative tasks are completed by mid 1995.

5.20 The contacts that CZI has with industry should ensure that there is full participation byindustry; a mechanism to involve appropriate other bodies such as the Chamber of Mines would need tobe present, but this should not be a difficult task.

5.21 The DoE already has some experience in implementation issues through ZEEP, so therewould be little to learn in running a PIP; indeed, the experience gained in co-ordinating and advising anexternal body would be more useful (formally, it is likely that any contract to run a PIP would bebetween the World Bank and CZI, but some of the skills of contract management would be developed byDoE during the PIP, together with co-ordinating skills).

5.22 It will also be important that the knowledge gained and lessons learned are smoothlytransferred to the IA. This will include the database of contacts made. Also, it will be important that theIA is directly involved in the PIP assessment activities. It is recommended that a good retrenchedengineer be the first option investigated to run the PIP from the CZI, as this gives a greater possibilitythat any skills learned during the PIP will be carried forward into the NEEIP. If this is not possible, arecently retired but active and enthusiastic engineer/marketing person/administrator could be appropriate.

5.23 To support the PIP directly, activities from ETSU/UK couid include:

* Supply of library and dissemination material,* Assistance in initial set-up, planing, targeting and database set-up,* Assistance in event programming,* Provision of specialist speakers,* Technical facsimile hot-line,* Assistance in evaluation.

5.24 It should be noted that this Chapter has considered the PIP option as a single option. Inreality, it will be part of activities leading to a NEEIP and an IA. These wider issues are considered inthe next Chapter.

- 28 -

VI. OPTIONS FOR ACTIVITY LEADING TO AN IA

6.1 Chapter 3 recommended that any IA be set up at the SIRDC and Chapter 5recommended that any PIP be run through the CZI. In the light of these recommendations, this Chapterdiscusses two options for action leading to an IA. This includes discussion of how all suggestedcomponents lead up to an IA. The underlying assumption is made that the SIRDC will be able to be thehome of the IA by the beginning of FY 1995/1996.

No PIP, IA starts at the SIRDC

6.2 SIRDC is chosen to be home of an IA, recruiting staff as early as possible. The DoE andIA staff receive the initial training specified in Section 4.5 during soon after. The outstanding structuralissues, detailed in Chapter 3, are resolved to enable the IA to begin in FY 1995/1996.

6.3 The DoE and SIRDC organise salary funding and facilities to be available fromJune/July 1995. The DoE organises donor funding from the inception of the IA for a start up package, apackage that includes funding for twinning/hands-on training as detailed in Section 4.5 and base loadinformation and awareness programmes. This package should cover 3 to 5 years. The following are theadvantages and disadvantages of this option:

Advantages

- Any money not spent on the PIP can be used for the DoE's and IA's initial NEEIPtraining components

* There is no possibility of a start/stop to the NEEIP, only possibilities of delays to thewhole programme

Disadvantages

* End users want action now, especially in industry in view of rising fuel prices* In reality, postpones effective end user action until 1996* Nothing in place from which the IA can leam/build

PIP Starts at the CZI followed by an IA at the SIRDC1

6.4 CZI, in conjunction with DoE, run a PIP with UK support using the limited financecurrently available. The exact scope of the PIP will depend on the finance available, but most of theactivities detailed in Section 5.5 would be appropriate (the central library of sector specific materialcould be dropped if finances are limited). Outline costs are detailed in Annex 4.

1 This option has become at this time groundless since the funding for running the PIP has not been forthcoming asoriginally had been intended.

- 29 -

6.5 As in the first option, the SIRDC is chosen to be home of an IA, recruiting staff in early1995. The DoE and SIRDC organise salary funding and facilities to be available from FY 1995/96. TheDoE organises donor funding from April/May 1995 for a start up package, a package that includesfunding for the initial training and twinning/hands-on training as detailed in Section 4.48 and base loadinformation and awareness programmes. This package should cover 3 to 5 years.

6.6 A smooth transition of the PIP to the IA is needed, achieved by an overlap and by the IAparticipating in the PIP's last months (i.e. the effectiveness evaluation). Ideally, the person running thePIP has proved him/herself and has either been recruited into the IA or has ambitions to become anenergy efficiency consultant (and thus remains involved in the NEEIP). The following are the advantagesand disadvantages of this option:

Advantages

* Shows industry action now and so starts to generate goodwill for the NEEIP, gives theIA momentum to build upon and starts to develop dissemination routes for the NEEIP,

* Lessons can be learned from the PIP, highlighting both good and bad factors,* Starts to develop DoE's co-ordinating role, shows aspects of project management role

and stimulates thinking on future NEEIP roles,* Shows donors that coherent plan is being implemented; showing this commitment might

gain more interest from donors.

Disadvantages

* Any delays in the start of the IA would lead to a start/stop NEEIP; the proposedtimescales are tight,

* Increased workload in the short term, leading to greater management problems.

- 30 -

VIl. RECOMMENDATION OF WAY FORWARD

Recommendation

7.1 It is recommended that the option of running a PIP through the CZI, leading to an IA atthe SIRDC, be pursued'. This would show early action that would be welcomed by industry and elicitvaluable lessons upon which an IA can build. The involvement of the CZI will start to developdissemination routes that will be used by the IA, and carries the possibility that personnel useful to theNEEIP gain early training.

7.2 Following this recommendation will also start to develop the DoE's co-ordination roleand free the DoE to concentrate on the many administrative functions leading to the IA start. Foremostamongst these tasks will be ensuring that finance is in place as early as possible2, and ensuring that theSIRDC has recruited appropriate people and undertaken other necessary preparatory work in time.

7.3 It will be important that the overlap between any PIP and IA is managed smoothly. Thiswill be easier if the person running the PIP proves him/herself and is then taken on by the IA. However asmooth hand over is still possible even if the person is not taken on. It will be important that the IA takesover any database developed during the PIP and leads the follow-up market research that aims to elicitlessons learned.

7.4 The main danger of following this recommendation is that the tight timescales slip; thiswould lead to a PIP ending in isolation, which would mean that credibility and any lessons to be learntare lost. This would be a serious setback. Thus in following this recommendation, the DoE will beaccepting a challenging task in managing the transition to an IA.

Timescales and Actions3

7.5 If the recommendation is followed, the following tasks will need to be carried out; anyslippage would lead to a startlstop NEEIP:

Month - 9

* DoE decide on way forward; ETSU provide guideline costings for the PIP and atwinning/information programme package;

* DoE/ESMAP/ETSU inform CZI and SIRDC and confirm their participation;

The PIP is intended as interim programme to provide the DoE with the lessons learned and the experience inmanaging and coordinating the NEEIP. It is clear, however, that the IA can be started without the PIP. In such acase, the timescales and actions described in this chapter should delete reference to the CZI as the agency to run thePIP, and proceed directly to the founding of the IA with the SIRDC.2 If the IA is to be operational by the beginning of the FY95/96, this would require that financing of the IA is inplace by June 1995 at the latest.3 Given in terms of months, plus or minus, from the date that the IA becomes operational.

- 31 -

ESMAP approach donors for PIP funding.

Month - 8

* DoE approach donors for NEEIP/IA training/twinning and information programme funding;

* DoE/SIRDC draw up action plan for SIRDC budgets, office facilities, recruitment, mandate,NEEIP management structures, etc;

* DoE/ESMAP/ETSU/CZI formulate PIP terms, including co-ordination mechanisms withDoE;

* ESMAP secure funding for PIP;

* CZI recruit PIP manager.

Months - 7 to - 4

* DoE/SIRDC implement action plan for IA, including undertaking recruitment advertising,interviewing and appointing IA staff;

- DoE have detailed discussions with donors;

- PIP starts; detailed planning for launch and events, and PIP launched as part of NEEIP.

Months - 3 to - 1

- DoE secure donor funding for training/twinning and information programmes;

- DoE/SIRDC continue to implement action plan, including securing salary budgets, officefacilities and finalising management structures;

* IA staff start and Initial Training activities undertaken for DoE and IA staff;

* DoE/IA agree targets for first year activities of IA;

* CZI hold two PIP events, with DoE co-ordinating as part of NEEIP

Month 0

* IA becomes operational, reviewing the PIP;

* DoE formulate terms of reference for, and appoint members to, the Advisory Committee;

* DoE reviews current policies related to energy efficiency;

* IA undertakes initial strategy work and formulates larger information programme.

-32 -

7.6 In the months following the IA becoming operational, the following actions should betaken:

* Initial IA strategy and DoE policy reviewed by Advisory Committee;

* IA implement larger information programme activities;

* DoE approach donors to fund individual programmes.

- 33 -ANNEX 1Page 1 of 3

TIioUpbin MAU361 NwistiY or TxANsPOxT ANDVAX& 7215w7 LN GY

Terms otreftzrce of the IAplememting Aeoncy and the Pnot Informuaon Programme.

L ink Ud

OP° of the main polty obective: of the goveumen t tho EnAW Sector is th pmotion of efficient supply ofeAUe togUthe with Lhe eod-u efflesicy oa the counumer sic. Other critical ilnues in the energy secor itsotudethl aeed to eusu on a sumulmble bui udoqumze, reliable and Wfo supply of u ctgy to tho eoomy. Pancularaetion neeS to be give to e uurban low inem and num setorm of the 600My.

Paramount ia all tils Is the isu of econonic pricing of&al fth orcy morns oan th appopftimo bas1 e.g.long iWI ZiWw cat =0z) on tcetcity. Tbis becomes much mo potieat as mt Country dergeeconomic ctD aj4usaunm program (3SAY). Under thais evv,irnne ery utis am rquird -to TMefficienuy Md cm sound commnecial line. FPrthemos the rob, of provision of cnergy. electlicity in prticularwilt no lor be the domain of monooliIc udtliti. To energy ecwor is tStbre, an inlegral psrt of theMfomn prapm which he governm is wUdegimae.

Ovar the yews. Ch end u has not received enoug saaon to promote efficiet use of enargy, 'Mm h beenno dithct fDc4s 0: anY mneacalgfj inveAment. Con.eauaon ha bean oT he supply ide. It is cler that boLhsupply woll a demand de need to be taced in order to rducetdi resource trcnmiuncuL to s sectortheby Mkift Mon mesources avatiable to othe sectws of the cznmy. We have recognized tha as p" ofofficdeny improvemew aud cost nductit maresn, the onew lsecr a key rol to play. For ts reso weaNO putg in pCCe a Naanal bwgy EMcency lmprevumast Progrmme.

Mm doevtaing dupht of 192 playe havoe with our sonmy, te ergy seem being one of tose tht WeRctioialy af£eted. Hydro-gauauing capacty iwa rduced to a I, whcr th country was pleed in a srio electricalY deficit aitwuon. We resozv to osly power impo. IntAoducd power cutailme pogammmawhich megt azr be edding ft fotnstac consumrs iu order to mc powor avable to tht productive sectr.he Proucive sector itslf wa subject to power raaoaie througp te quota sysem where, depnding o tariff

category, c00mW had supply reduced by betwen 20% - 300h. The sisoma reratad in loss of rvene to theeconomy as s0Pw uAusties reduced prodactioa althoug the rgducttoi we in pcn due to the world reuesson andreduced econmic mivities brouht about by th drought. Wha th situatioa did was to bring to lipbft fct thatthee is ineflcieny in teams of ew uwe, and same eompanis canged manepment )abits and wm able totUft PfdUCUoCM tp witIA the re4c00d quot.

In the REA envonment, eerpy priw ae beg dstd s wilt v eome to be adjustad upvard.tn&=mlaly for now. Pices have so be blUt In line with lW it costs the coutry to proew O11"ud fuel) orprduce (clcuicty and codl) and rDplMIet sa woU as uaviroomentol oetdoYofs. Then thmta is te jeu ofisomeooma c es

All h Ioom bavs brought into shuper fm t amd ZImbabwe tso acceIemse provmunns h the ara ofswa efsioza mud viabl alterative foels h orI a to captum pow"aargy savings so *vnm in theecoomy so as to Aieve toedurcAi la mesy coanmption and incea ZmbWs pi on thoexpot marikt

ANNEX 1Page 2 of 3

T1w. i some experionce In the cowuAnY thrtugw litivSea ach " thAe $AC proFgrhune of actvities in theergy sector wbare tm engy WdLt undetaken ih, Zimbabwe, poental tbr nergy oeffiiency improvamn of

M de of 15-20% wu To Ceant fbr syeAMAhiC OMSY officiency p""troMmes Was hzhergtxfiwd thtrouh another initiative hww es t Zimbawe Blectritel EBry EffiolneY PtO;'at ZE -

Wo have oonAted ad sougt lnternaial Cxper, go assist us to wlabOm a s0uegic framrwork for a NatonslEwgy Effclaocy mperoemeat Programme (NlW), ard to dvwloP jotitiUWAl gwddcic ad UppropttOMecluanams fotr enaasuig efftetive Implomauazin, of enuey effliency iniavu withi the famework of

Govemrnaa: is fully convinced of the aumroua bfol¶eti which can be d&iivll Br purSU l rg ifficienyPiUmI and It onmited itaclf twqlh tie uaUabushmem of a nDiaI progrwnme. Ommmeaes role i thinp9U1UD will b em of policy Ibimulatim rtbe with minitwing and rgulain the onew induu.

It a that goveIrogOt two mde enevy efficiency a 0roal pronty. in ts regard, a D*E dcut>iaoumdstotk a twouweek t,uy to=r of thz UK b tie I IA.23ru July 1994 Ir order to fPt±er pmmo ewd deepnonMtzlwM to the NEW in Zimbabwe.

3. Forthcomlng ILt*AP/ U Miuion

To continue the m cmtum gewtund by the UK stdy tour, a joint ESMAMI U mialon will visit Zimbabwedurlng Om tim hIf of Octobe 1994, w'oa brand terms of ctrence wil be;-

L Implemetang Atom (IA) and Dprtment of Kaerp (DoE).

L develop propo which wil asist DoE JI seWng up an IA. (i.e. si and sue of *& acy onstemnees, s8tng and awni pmogrumtc).

Hi. ldti,*ing ±nuional m cnmw and resocure tequlsments which will enable DoE to monitor andreguae te IA. (Lg. traunng progzum s, conuuu, skills, ad types of activties).

l ntit capcity buiiag requnmeat for thMe DepAu of Enugy and the Implem-tcnl Agencyineluding flintg an equipmete

1v. to MOmmend twinning nan"pmat to enable the wuit to benefit fm the experience of o iranizti thabave be=n Involved in energy efficiency pomgmmss (or a Longer time.

v. sepui sM &Se lad pamxuiO A eneg aflciency impovemeut fbr ft IA. and make ccommeadationeto Govement

Vi. igstride4fy posble Biding arruagemeate f the IA. in oe l ri /ad lms mm.

b. Pilot arLsatt. laogremme

1. deVcOp popWs fo h of iL a maij popwine Wbich Imphlmenting Agency(IA) will impleawat. Thi sbould gohade buidiug a Ibrwy of Inftnntlo md colatng It with respc to

z _luaa*emu , = wgsped ifonatla pornu ad eerally nuiu. *ucommiltM of imdsay to caey eficdY ImPMmL

U. om* DoEIWIAZ's availabe teamr to rn a pilot 1nfon proemme (ie. discUs with ktbe parties,Qdteio activities, cest, and beck-up euppwr inqrd).

- 35 -

ANNEX 1Page 3 of 3

Ui. illy develop Uvittes W ?mlt fbTr a pUit informaWm pn*rmnun (P1M (Le. hold mndng w"'h 1e1antpatise to con their role incIudNg oS maagmeit o iutias, advwniidIg xcncJUs, ulevant amcolitanut )

iv. tuly cmthe PIP and mo

, modaIs of isfbratioa d babon and pimIibw gscon,dntot

-36 -

ANNEX2Page 1 of 11

NOTES ON MEETINGS HELD DURING THE TA MISSION

INDEX

Organisation Page

Department of Energy, 3 Oct. 2CIDA's SADC Project Offices, 3 Oct 3

CZI, 4 Oct. 4TIPS, 4 Oct. 5SIRDC, 4 Oct. 6TATE-SSC, 4 Oct. 6

ZIE, 5 Oct. 7Department of Energy, 5 Oct. 7

ZIMPHOS, 6 Oct. 8Realtime Computers, 6 Oct. 8GEF Project, 6 Oct. 8

MTE, 7 Oct. 9

CZI, 7 Oct. 9Department of Energy, 7 Oct. 10Union Carbide, 7 Oct. 10

Phone Conversation with Dr. G. Mandishona, 20 Oct. 11-12

-37-

ANNIEX 2Page 2 of 11

DEPARTMENT OF ENERGY, 3 OCTOBER

Present: C Mzezewa (DoE), S Wadesango (DoE), F Mambwere (DoE), S Madau (DoE), K Schenk(ESMAP), A Gilchrist (ETSU).

CM welcomes the mission and outlined what DoE was looking for the mission to undertake. Discussionrevolved around the PIP and, in particular concern was expressed as to where concrete technicaladvice/back-up was to come from.

CM gave an up-date on DoE progress and thinking since the UK study tour. Further discussions hadtaken place with the SIRDC as to whether it could house an IA. The following points were made:

* currently the SIRDC operates with little autonomy, as its statute is such that it is only a sub-committee of the Research Council of Zimbabwe. Thus all actions have to be approved by theResearch Council, which gives the SIRDC little autonomy from government. However, effortsare currently being made to amend the Act under which the SIRDC is set up, the aim being togive it greater autonomy.

- the SIRDC is still keen to house an IA. Currently only the Enviroranent and InstrumentationInstitute is operational and the start of the Energy Institute is delayed. However, the centraladministration/office block is under construction and is scheduled for completion in March 1995.An IA could be housed in this block.

* the SIRDC might be able to fund three or so officers, the funding coming from SIRDC's usualgovernment grants. The funding might be in place by the new financial year (ie July 1995) andcould form the basis of funding the IA's staff.

In the light of the above DoE is keen to know what other running costs and equipment would berequired. Also, discussions covered the PIP's purpose if the IA really can be initiated along thesetimescales. The mission was asked to put forward options.

The progress of ZEEP was outlined. The demonstration projects are on hold as no funding isforthcoming, but five studies are ongoing. These studies are on policy levers (being done by Mr Makina,ex head of DOERD) and on solar water heaters, refrigeration, motors and geysers (all being done by anNGO, the Southern Centre for Energy and Environment). However, ZEEP in general is only goingforward slowly. The mission was asked to delineate options for ensuring ZEEP and the SADC projectscan be co-ordinated with the work of an IA.

The outline mission schedule was discussed and a courtesy call to Mr Moyo was made.

- 38 -

ANNEX2Page 3 of 11

CIDA'S SADC PROJECT OFFICES, 3 OCTOBER

Present: G Stiles (SADC/Shawmont), J Martin (SADC/Shawmont), C Murove (SADC/Shawmont), KSchenk (ESMAP), A Gilchrist (ETSU), S Wadesango (DoE), F Mambwere (DoE).

The SADC project started in June 1994 and is in an inception phase. In November, the team needs tosubmit to CIDA a review of the original TORs (drawn up around 1991) and propose activities for theremaining four and a half years of the project.

CIDA had some criticisms of the earlier phase of this project. These included the fact that the focus wassolely on no/low cost technologies and thus did not cover process changes; and the fact that most of theaudits undertaken in the earlier phase did not lead to action.

The inception phase is trying to address these criticisms as well as to redefine the work programme tomeet current political, economic and market realities. Currently, it is envisaged that the project will havethree main themes. These are:

Demonstration projects in two industrial sub-sectors: textiles and food and drink. These demonstrationswould focus on process changes.

Training programme that would focus on three different groups: engineers in industry, consultingengineers and teachers. The first group could be trained to undertake audits in their own firms, perhapsby giving them a series of short courses interspersed with work to do back in their own firm.

Information programme which is currently raising awareness of the whole project, but which will thenfocus on senior management using material from around the world. In the later stages, it will usematerial arising out of the project. It is also envisaged that a database is built up, though its purpose isstill to be clearly defined.

The inception phase involves talking to governments, industry bodies, industry, consultants and trainingbodies. Nothing is fixed as yet, though it is believed that CIDA are very keen that training for industrialengineers is prominent.

- 39 -

ANNEX2Page 4 of 11

CZI, 4 OCTOBER

Present: M Boyd-Clark (CZI), S Wadesango (DoE), F Mambwere (DoE), K Schenk (ESMAP), AGilchrist (ETSU).

CZI has gone through a large restructuring over the last year. It now has a staff of 32 (from 57) and is'lean and mean'. CZI does not have spare staff, nor technical experts; any specialist advice required issub-contracted. CZI represents industry, with CoM representing mines and the CFU the farmers. Thethree bodies come together, under the umbrella of ZABO, if common problems are encountered (eg theenergy shortage caused by the drought of 1992/3). ZABO is not a permanent body, but reactive.

In the past it viewed its main role as representing members' interests to government and to secure foreignexchange for its members. With ESAP, the foreign exchange problems have eased, so it is redefming itsrole to lobby government on members behalf, in particular in trying to get an industrial policy, and inholding seminars to address problems and/or formulate position papers. Currently around 12 seminarsare held a year, often being breakfast meetings.

CZI has split energy work from environment; energy is now part of the Infrastructure Committee headedby Bill Moore. This Conmmittee covers water, communications, transport and energy. To date, mostwork on energy has been on the security of supply and on the cost of energy. However, CZI would bekeen to participate in energy efficiency activities as a service to their members.

For a Pilot Information Programme (PIP), CZI could supply office space, computing facilities andevent management facilities (as they have a professional event manager). CZI usually charge for events,the rate being designed to cover costs. Thus CZI would recommend such a course of action for a PIP.The one thing CZI can not supply is manpower. For a nine month PIP, one possibility is to bring in aretired person and a budget of Z$10,000/month (US$2,000) would more than cover it. Note, PriceWaterhouse consultancy rates are of the order of Z$2,000/day. CZI have a car which could be used in alimited fashion for a PIP: any extensive use of a car would need a separate budget. CZI would publiciseany PIP through their usual mailouts and by word of mouth through its network.

Implementing Agency (IA) support could include two main activities: firstly, CZI would have a role onthe National Energy Efficiency Improvement Programme (NEEIP) Advisory Committee (which wouldprovide strategic direction and monitor not only progress and energy saving achievements, but also costeffectiveness). Secondly CZI has a role in information dissemination, which could cover many rolesincluding: providing credibility to information programmes, mailing members, joint events. The exactroles and relationships (including payments) would need to evolve over time.

-40 -

ANINEX 2Page 5 of 11

TIPS, 4 OCTOBER 1994

Present: C Chokwenda (TIPS), E Pollard (TIPS), J Mafu (SIRDC), K Schenk (ESMAP),S Wadesango (DoE), F Mambwere (DoE), A Gilchrist (ETSU).

CC outlined the TIPS programme. It started in 1986 as a UNDP initiative that linked electronically 10developing countries. Its aim is to promote trade and technology, disseminating information that isfresh/hot (ie it aims to link consumers/manufactures with the best technology or tenders presentlyavailable). Initially the Zimbabwean end was 50% funded by UNDP, 50% by Government, though theairn was to become self-sufficient.

TIPS in Zimbabwe has a team of information collectors, who are now paid on production of acceptedinformation. The collectors send potential data to the TIPS office in Harare, who sort/accept it. Theinformation is sent to the Philippines for translation for other TIPS offices. The data released toZimbabwean subscribers is a combination of home-grown material and of material from other countriesvia the Philippines.

TIPS currently produces 7 daily sector sheets and a further 7 sector sheets on a weekly basis. Thus 14sectors are covered, of which energy is one. The energy sheet focuses on hydropower, solar power andbiomass (in particular for rural areas).

The target market of TIPS was not clearly explained, despite questioning. It appears the main targets areSmall and Medium Enterprises (though a definition was not forthcoming), NGOs and village levelorganisations tasked with job creation. Currently funding is roughly 1/3rd from subscribers.

CC explained that many lessons had been learned since TIPS began. In particular, it was important toensure that target recipient organisations AND correct people within those organisations weresuccessfully located. Thus surveys were required, together with personal contact. CC claimed that theTIPS office was the most experienced information dissemination office in Zimbabwe and that it had allthe software and hardware present to undertake furither activities. CC was anxious that the mission was'fully aware of the consequences' of going down dissemination routes such as the CZI/CFU/CoM, in thatthey represented only a fraction of the target market for energy efficiency. AG explained that anyagency would use many dissemination routes, of which CZIlCFU/CoM/TIPS could be possible avenues.

- 41 -

ANNEX 2Page 6 of 11

SIRDC, 4 OCTOBER

Present: J Mafu (SIRDC), F Mambwere (DoE), K Schenk (ESMAP), A Gilchrist (ETSU).

JM is the Services Manager of the SIRDC. He is thus responsible for the infrastructure development.The Administration block is scheduled for completion in March 1995, though JM hopes it will be sooner.Three Institutes are under construction (the three being Biotechnology, Mechanical Engineering andBuilding Engineering) and it is planned to start the building of two more next FY (ie after July 1995, thetwo being Electronics and Energy).

The Director of the Energy Institute is currently being recruited. Specification includes a PhD and tenyears experience in research and/or industry.

The Services/Administration function is to provide accommodation, lighting, telephones, post/courierservices. Also within these functions will be specialist contract services (via a legal firm in Hararecurrently), finance services technical writers (two currently employed, with desk top publishingcapability) event organisation capabilities and in house printing services (to come).

An IA could use the Administration block in the short term. It is envisaged that a provision for salariescan be made for July 1995 (ie next financial year), with the possibility of training personnel before thatdate. Budgets are committed up to that date, even through staff budgets are understanding due to acurrent lack of space to put people. The budget planning for FY95/96 begins in January, with a fairlystrong indication of settlements by April/May.

JM stated SIRDC's strong commitment to setting up an IA, emphasising that it would be a priority in thebudget for next year.

TATE-SSC, 4 OCTOBER

Present: S Chetse (TATE-SSC), K Schenk (ESMAP), A Gilchrist (ETSU).

SC is an electrical engineer, ex ZESA, who has his own consultancy. As part of his work, he has actedas a local progranmme co-ordinator for La Rocco. Discussion of progress of ZEEP followed similar linesto those already given by DoE on 3 October. In particular, the stalling of the demonstration projects wasexplored.

Discussion also focused on the present ESMAP work. The aims/work of an IA and linkages between anIA and other programmes were explored. Its relationships with Govermnent, ZESA and end users werediscussed. Also the issue of coverage of fuels was explored. SC liked ideas being put forward and couldsee them working.

- 42 -

ANEX 2Page 7 of 11

ZIE, 5 OCTOBER

Present: R Offord (ZIE), K Schenk (ESMAP), S Wadesango (DoE), F Mambwere (DoE),A Gilchrist (ETSU).

The concepts behind the IA and PIP were explained. RO supported ideas, including proposed homes.ZIE is run on a volunteer basis, with a professional staff of three, plus support staff.

ZIE run, with the help of Speciss College, about 50 courses a year. These form a programme ofcontinuous professional development for engineers. They are fee paying courses, aiming to recovercosts. Normally 12 people are enough to ensure a course goes ahead, the courses ranging from one dayto three days. Currently there are no dedicated energy efficiency courses. Normally, courses are givenby senior members of the Institution. However, as a exception, the Dutch have proposed a 'CleanerProduction' course to be given by Dutch experts.

The ZIE produce monthly circulars which are distributed around Harare and Bulawayo. It alsopublishes, for its 1800 members, a monthly journal. An editorial board for the latter meets on the firstMonday of a month and approves articles for publication in the next month's journal, which appears inthe second half of the month.

RO would be keen to pursue training courses with an IA and could support a PIP and IA longer termactivities through articles in the journal and circulars.

RO gave a typical 30-35 year old engineers salary in 1991 as Z$60,000, though inflation will have raisedthis considerably.

DEPARTMENT OF ENERGY, 5 OCTOBER

Present: C Mzezewa (DoE), S Wadesango (DoE), F Mambwere (DoE), K Schenk (ESMAP), AGilchrist (ETSU).

Interim findings were presented and discussed. In particular, the following were discussed in depth:

* PIP purpose* PIP host* IA structure* IA control* Advisory Committee. Training* Donor funding routes and control* Timings

-43 -

ANNEX2Page 8 of 11

ZIMPHOS, 6 OCTOBER

Present: G Rushwaya (ZimPhos), S Wadesango (DoE), F Mambwere (DoE), K Schenk (ESMAP), AGilchrist (ETSU).

KS and AG summarised progress during the mission. GR thought the housing of an IA at the SIRDCcould work well.

In terms of the running of a PIP, GR recommended the CZI for the following reasons: they played animportant part in the eneirgy crisis and helped industry during this period; the energy crisis work had agood impact on industrialists; they were 'already in the game'; and they would certainly be the mostpowerful organiser of a chief executive seminar.

GR believed that industrialists would pay to attend the seminars because industrialists realised that theyhad a lot to learn; ESAP had jacked up energy prices; and training was a priority amongst industrialists.GR would be very happy to give a talk at the seminar for chief executives.

In terms of energy efficiency within ZimPhos, progress was still being made. KS and GR brieflydiscussed GR's forthcoming talk at the IEA conference in Vancouver, the talk being a case study on asuccessful company campaign. GR wanted to gain capital for further sub-metering; this he saw as amajor problem to ZimPhos' further progress. 75 % of energy costs are steam. He hopes to get a capitalallocation in the companies next annual business plan.

REALTIME COMPUTERS, 6 OCTOBER

Present: N Mazike (Realtime Computers), K Schenk (ESMAP), A Gilchrist (ETSU).

Looking further into the future, and specifically at M&T programmes, the opportunity was taken, as wewere walking past Realtime Computer's offices, to learn of computer systems available in Zimbabwe.

Realtime are an agent for Digital; Microsoft also have dealers in Zimbabwe. A wide range of systemsare available within Zimbabwe. The market is growing quickly and currently there are no supply/importdifficulties. It appears that more than sufficient equipment is currently available to support a M&Tprogramme.

- 44 -

ANNEX2Page 9 of 11

GEF PROJECT, 6 OCTOBER

This meeting was cancelled, as Dr G Mandishona had to attend a funeral. A telephone conversation isreported on at the end of this Annex.

MTE, 7 OCTOBER

Present: J Moyo (MTE), C Mzezewa (DoE), S Wadesango (DoE), F Mambwere (DoE), S Madau(DoE), K Schenk (ESMAP), A Gilchrist (ETSU).

The progress of the mission was outlined and the provisional recommendations were discussed. JMasked for the final report to also include the following:

* Institutional structures for the NEEIP, both for the DoE and IA

* The funding of the NEEIP once the IA is operational

* Management of the NEEIP

X Training requirements for both the DoE and the IA

* Roles, structures and training for the interim work, including a smooth transition

- The incorporation of ZEEP and the SADC project into the NEEIP

JM stressed that any interim work should clearly prepare the way to an IA. Thus DoE involvement ininterim work could involve secondees who would move to the IA or could involve an early training in co-ordination activities.

CZI, 7 OCTOBER

Present: M Boyd-Clark (CZI), A Gilchrist (ETSU).

Further discussion on the PIP. MB-C confirmed CZI's willingness to run a PIP along the lines discussedon 3 October. If DoE wanted to run the PIP, CZI could sell DoE their mailing list and could encourageparticipation at workshops.

- 45 -

ANNEX 2Page 10 of 11

DEPARTMENT OF ENERGY, 7 OCTOBER

Present: C Mzezewa (DoE), A Gilchrist (ETSU).

Wrap-up meeting. Discussion of interim work in particular, with various points to be incorporated intothe final report.

UNION CARBIDE, 7 OCTOBER

Present: R Williams (Union Carbide), A Gilchrist (ETSU)

Discussion of the mission findings. RW was encouraged by progress and thought SIRDC could be agood home for an IA. RW supported a PIP to show early action, and suggested that a recentlyretrenched engineer could make a good person to run the PIP; this would increase the chance that theywould be of use as part of a longer term NEEIP. Salaries of engineers also discussed; appropriate IAsalaries would follow from this.

PHONE CONVERSATION WITH DR G MANDISHONA20 OCTOBER 1994

Unfortunately, as Dr Mandishona had to attend a funeral, the meeting arranged for Thursday 6th Octoberwas cancelled. This phone conversation was in lieu of the meeting; the principal aim of the phoneconversation was to find out more about the institutional structures of the GEF project.

The GEF project is now llh years into its 5 year lifetime. After an initial set up period, which includedensuring appropriate infra-structure was built up, the project moved into an installation phase. There arenow over 1,000 PV installations (45 watt equivalent systems) and it is hoped that by the end of 1994there will be 2,000 in place. Over the next two years, it is hoped to double the number of installationseach year, a target that will exceed the project targets of 9,000 systems.

The project is aimed at the rural sector, and thus works with rural based organisations includingcommunity co-operatives, NGOs and district councils. There is also a programme to interest outreachworkers (eg Agritex personnel) in repair and maintenance work of PV systems. This programme aims toshow that outreach advisors can earn a small additional income (that will encourage them to stay in therural areas); and to build up some long term back-up support for systems currently being put in.

The GEF project aims to create, within its lifetime, various mechanisms that will ensure sustainability inthe long term. It is thus also aiming to build up local manufacturers and the interest of the private sectorand NGOs. It is currently envisaged that the project will be disbanded after 5 years, with the DoEretaining a residual role. This could include an inspectorate role and ensuring that standards of newsystems are adequate. It is hoped the DoE will retain a small budget for this work; there might also be

-46 -

ANNEX 2Page 11 of 11

some money left from the revolving fund, money that could be given to the DoE to supplement thiswork.

The project staff currently includes Dr Mandishona as the Project Manager, one outreach advisor and oneadministrator (the staff costs of all three are met by the UNDP) and four staff seconded from the DoE (aco-ordinator, an economist, an engineer and a technician). There are also two drivers associated with theproject.

The DoE has supplied offices, furniture and the salaries of the four seconded staff. The UNDP ismeeting salaries of the three other team members (as well as the costs of a PV consultant for the first yearof the project) and has also provided specialist office equipment such as computers, typewriters and aphotocopier. In terms of procuring major PV equipment for the project, the project team draws upspecifications and sends these on to the UNDP, who then place contracts with the various manufacturers.

AG updated Dr Mandishona on the various possibilities for an Implementing Agency for energyefficiency activities within Zimbabwe.

- 47 -

ANNEX3

TERMS OF REFERENCE OF THE DOE'SENERGY CONSERVATION SECTION

The following were the terms of reference for the DoE's Energy Conservation Section, terms ofreference that were given to the TA mission on Friday 7th October 1994.

1. Formulate national energy conservation policy/programmes to cover all sectors of the economy(industry, mining, agriculture, transport and residential).

2. Initiate/design and monitor energy conservation programmes/projects such as ZEEP, NEEIP.

3. Design/initiate and monitor fuel substitution projects/programmes such as GEF, Coal tarfuel, etc inall sectors of the economy.

4. Design/conduct energy efficiency awareness programmes including exhibits, campaigns.

5. Production of technological/efficiency standards in industry and other sectors of the economy.

Specifically:

Produce a national energy conservation policy and strategy;

Lead the implementation of ZEEP, NEEIP;

Participate in the GEF project;

Mount national fuel conservation campaigns;

Mount exhibition stands at (rural, agricultural) shows and trade fairs;

Co-ordinate/monitor/evaluate energy auditing exercises in all sectors of the economy.

-48 -

ANEXK4Page 1 of 2

PROVISIONAL COSTING FOR A PIP

This Annex gives provisional costs for various elements of a PIP. The various elements are detailed inSection 5.2 of the main report. The total cost of any PIP will depend on which elements are chosen forthe PIP.

The costs detailed in this Annex assume that the CZI is willing to part fund the PIP, by contributingoffice facilities and by holding seminars that recoup all running costs. Note, the costs detailed below donot include any ESMAP management overhead. Costs are based on US$1.55:£1

A4.1 COMPONENT COSTS

Central Ltb=aMateial

Provision of one off of each title of approximately 15 Fuel Efficiency Booklets, 10 Videos, 50 GoodPractice Guides and 200 Case Studies, including selection, packaging and freight:

US$ 3,000

Mari frDtin

Provision of 100 off of approximately 12 Fuel Efficiency Booklets, 20 Good Practice Guides and 40Case Studies, including selection, packaging and freight:

US$ 28,000

Sneminars

Costs of hotel, mail-outs and Zimbabwe Speakers met by CZI, who charge for events to recoup costs.

Provision of expert UK speaker/seminar leaders for two seminars (management expert and a no/lowcost technology expert), including fee, travel (to Harare) and subsistence:

US$ 17,000

Database

Computer and software supplied by CZI. Advice on set up is included in the management elementbelow.

- 49 -

ANNEX 4Page 2 of 2

Back-up Supp

Answering technical questions at ETSU, questions channelled through CZI. Cost will depend onfrequency and level of questions. Provisional budget figure:

US$ 7,000

Managment and Publicit

CZI staff costs, assuming a 9 month PIP:

US$ 18,000

The costs of ETSU support in Zimbabwe is based on three missions and management support for theUK:

* Set up: overall PIP methodology and planning, setting up databases, planning initial publicity,- Event organisation: planning and organisation of the two events, including participation at the

first event- Evaluation: assisting in evaluation of PIP and in planning future activities

Estimated cost, including fees, travel (to Harare) and subsistence:

US$ 35,000

A4.2 TOTAL COST

The total cost, if all the above elements are included, is estimated to be US$ 108,000. This excludesany ESMAP management overhead and assumes that CZI's charges are limited to US$ 18,000.