Framework Document Energy and Enviroment Partnership With Central America

FRAMEWORK DOCUMENT
ENERGY AND ENVIRONMENT PARTNERSHIP WITH

CENTRAL AMERICA
PHASE TWO
NOVEMBER 2007
TABLE OF CONTENTS
0. Acronym .............................................................................................................3
1. Brief Summary on EEP, Phase One...................................................................4
2. Strategy and Background...................................................................................5
3. Main Objective and Scope .................................................................................5
3.1. Main Components ..............................................................................................6
3.2. Eligible Activities.................................................................................................6
4. Execution ...........................................................................................................9
4.1. Schedule, Second Phase ...................................................................................9
4.2. Results and Indicators......................................................................................11
4.3. Indicative Budget, Second Phase.....................................................................11
5. Operating Manual.............................................................................................14
5.1. Execution Strategy (Rules and Functions). ......................................................14
5.2. Organizational Structure...................................................................................14
5.3. EEP’s Organizational Functions .......................................................................15
5.4. Application to the EEP......................................................................................20
5.5. Guidelines for EEP Project Financing Approval ...............................................21
6. Crosscutting Issues ..........................................................................................25
6.1. Combating Poverty...........................................................................................25
6.2. Gender Issues ..................................................................................................25
6.3. Environmental aspects .....................................................................................26
6.4. Good Governance ............................................................................................26
6.5. Peace and Human Security..............................................................................26
7. Monitoring and Evaluation................................................................................27
8. Further Development of the Partnership ..........................................................27
8.1. Assumptions and Estimates .............................................................................28
Annex 1 Logical Framework Matrix ................................................................................29
Annex 2: Projects Selection Criteria .................................................................................31
Annex 3: Indicators...........................................................................................................33
Annex 4: Project Profiles Form.........................................................................................34
Annex 5: Project Proposals Presentation .........................................................................38
Annex 6: Administrative Procedures ................................................................................40
Annex 7: Terms of Reference for Regional Office Staff....................................................45
A. Regional Coordinator ...........................................................................................45
B. Administrative Director .........................................................................................48
C. Projects Manager.................................................................................................50
D. Administrative Adviser .........................................................................................52
E. Senior Adviser......................................................................................................53
Annex 8: Council Conclusions on Energy and Development, GAERC, 10 April 2006......55
Energy and Environment Partnership with Central America

2
Framework Document
0. Acronyms
Banco Centroamericano de Integración Económica - Global

BCIE-GEF
Environment Facility
CA Central America
CABEI Central American Bank for Economic Integration
The Central American Renewable Energy and Cleaner Production
CAREC
Facility
Comisión Centroamericana de Ambiente y Desarrollo
CCAD
Central American Commission for Environment and Development
EEP Energy and Environment Partnership with Central America
EU European Union
GAERC General Affairs and External Relations Council
GEF Global Environment Facility
ID Identification
National Coordinator
NC
NCU National Coordination Unit
NGO's Non–governmental organizations
NTC National Technical Committee
PPF Project Profile Form
RC Regional Coordinator
RCU Regional Coordination Unit
SC Steering Committee
Secretaría General del Sistema de la Integración Centroamericana
de Ambiente y Desarrollo
SG-SICA
Secretary-General of the System for the Central American
Integration
UN United Nations
UNDP United Nations Development Programme

3
Framework Document
FRAMEWORK DOCUMENT
ENERGY AND ENVIRONMENT PARTNERSHIP WITH CENTRAL AMERICA (EEP)
PHASE TWO
1. Brief Summary on EEP, Phase One

One of the outcomes of the World Summit on Sustainable Development in Johannesburg
was the willingness of the Government of Finland to contribute towards the
implementation of the Partnership with Central America in the area of renewable energy.
Renewable energy is an issue of significant importance for the countries of the Central
American region, because it allows using alternative methods that contribute to diminish
the dependence on fossils fuels, at the same time it stresses on the associated welfare
that energy brings to rural communities located in remote areas.
Thus, on June 18, 2003, the Ministry for Foreign Affairs of Finland, the Central American
Commission for Environment and Development (CCAD) and the Secretary-General of
the System for Central American Integration (SG-SICA) signed a Cooperation
Agreement on the Energy and Environment Partnership with Central America (EEP),
officially initiating such initiative.
With a seed money of three million Euros (€ 3,000,000), this initiative focused on the
promotion and development of renewable energy based on four main components;
namely, removal of the legal and institutional barriers that impede a greater participation
of low scale renewable energy to satisfy the energy needs of the region; promotion and
strengthening of renewable energy development projects in electric power emerging
markets, as well as the rational use of bio-energy resources; strengthening human
resource and institutional capacity in renewable energy issues and last but not least the
development, dissemination and implementation of sustainable demonstrative projects
on the appropriate use of renewable energy.
The initiative undertaken by Finland together with the seed funds earmarked to
renewable resources and technology studies, demonstrative pilot projects and feasibility
studies on wind, hydro, biomass and solar energy activities, have set in motion a very
meaningful co-operation field.
Three years after, and thanks to such a successful cooperation, the Ministry of Foreign
Affairs of Finland together with SG-SICA and CCAD agreed to extend the project period
for another three years. For this second period the Ministry for Foreign Affairs of Finland
offered a contribution amounting to a maximum of four Million Euros (€4,000,000). In
addition to Finland, the Austrian Development Cooperation joined the Partnership on
February 19, 2007 and agreed to contribute with one million eight hundred thousand
Euros (€1,800,000) for the next 3 years.
The EEP acts under the umbrella of the EU Energy Initiative for Poverty Eradication and
Sustainable Development (EUEI). All activities are in line with the EU
Principles/Considerations for Integrating Energy Interventions into Development
Cooperation (see Annex 8) adopted by the EU General Affairs and External Relations
Council meeting in April 2006.
4
Framework Document
2. Strategy and Background
In order to avoid duplication, the EEP partners decided not to repeat here the general
background information on national/regional policies, contributions to the field of activities
by other donors/lenders as well as the findings of the evaluation on Phase 1, and to refer
instead to the Framework Document on the EEP, and the Evaluation Report on the EEP,
2005.
3. Main Objective and Scope

The main EEP´s objective is to
o Enable a bigger share of renewable energy resources in satisfying the energy
needs of all countries under the SG-SICA; i.e. Central American nations and the
Dominican Republic;
o Achieve better access to modern energy resources especially for people living in
underprivileged areas, contributing in this way to poverty eradication and the
sustainable development of the countries concerned;
o Contribute to reduce the increase of the greenhouse gas effect;
o Mitigate the negative effects of global Climate Change.
The EEP addresses important issues regarding the use and promotion of renewable
energy conducive to achieving sustainable economic and social development by
focusing on a range of issues and barriers to these technologies and energy resources
that are common in the region.
Considering the above, the EEP contributes with CCAD to develop the Environmental
Plan for the Central American Region (PARCA), working toward the achievement of the
strategic area of Prevention and Control of the Contamination, in the specific issue a
Cleaner Production promotion.
Based on the experience gained from the design and execution of the EEP’s first phase,
the partnership acknowledges that it has to strengthen its four components and render
them even more valuable for all partners. To use a quote from a stakeholder from the
Central American banking sector: this is “an excellent project that can still do more than it
does”.
The EEP aims at supporting the three milestones of sustainable development: the
economic, the social and the environment. Both government and non-government
organizations as well as private enterprises can participate in this effort by formulating
and executing the projects with the aforementioned approach. This comprehensive
approach allows for a better development of the until now underprivileged areas and the
energy deprived.
There is no priority regarding specific technologies for the national renewable resources
to be considered for support (e.g. photovoltaic and solar thermal systems, small hydro
power plants, wind power, geothermal energy, biofuels and the use of other modern bio-
energy resources).

5
Framework Document
There is significant potential for transferring information learned through the various
project activities and outputs among all participating nations. This project offers an
opportunity to significantly reduce the barriers that constrain the development of
renewable energy technologies since the project design incorporates measures for local
participation, human resources development, and institutional strengthening.
Given the complexity of the challenge of promoting the use of renewable energy, any
incremental improvement in the contribution that the private sector can make - especially
the domestic financial institutions and the multitude of Small and Medium Enterprises-
should be seen as worthwhile and potentially of great value in the longer-term where
sustainable results are achieved.
3.1. Main Components
As stated before, there have been several initiatives in favor of promoting the use of
renewable energy in Central America. Some of them have ended in positive results and
can be complemented with the present Partnership. Taking this as a basis and
considering the document of the Initiative presented in Johannesburg, the activities are
to be focused on the following components:
1. Removal of legal and institutional barriers hindering the development of renewable
energy in the region;
2. Promotion and strengthening of renewable energy development in all sectors
(residential, commercial, industrial, transport and services), including biofuels as well
as the promotion of energy efficiency;
3. Strengthening human resource and institutional capacity in renewable energy and
energy efficiency issues;
4. Supporting sustainable demonstrative projects on the appropriate use of renewable
energy and promotion of energy efficiency.
3.2. Eligible Activities

Component 1:
Removal of legal and institutional barriers hindering the development of renewable
energy to satisfy the energy needs of the region.
Specific Objective/Activities
o Incorporate renewable energy into regional and national policies for social, economic
and environment development, to remove legal and institutional barriers impeding the
evolution of renewable energy in countries under the SG-SICA.
o Support participative processes to formulate renewable energy policies both at the
regional and national levels;
o Establish the necessary conditions to develop strategies for rural energy supply using
sustainable energy resources;

6
Framework Document
o Remove banking and business barriers, and enable environment investments in
micro-, small-, and medium-sized enterprises in Central America;
o Support market characterization studies that reveal current conditions and feedback
of most players involved;
o Enhance design and strengthening of mechanisms contributing to guarantee the
sustainability of rural electrification projects based on renewable energy resources;
o Enhance procedures for granting concessions;
o Identify technical and economic potentials oriented to the use of renewable energy;
o Strengthen international cooperation oriented to incorporate regional policies for
development of renewable energy;
o Promote Carbon Financing as a resource to fund Renewable Energy projects.
Component 2:
Promotion and strengthening of renewable energy development in all energy production
and consumption.
o Strengthen market strategies that trigger financing, development and consolidation of
renewable energy projects, including biofuels
o Continue designing and developing strategies to promote renewable energy projects
coherent with both national and regional electric power markets;
o Support the design of the appropriate regulatory and legal frameworks for the use of
biodiesel and ethanol;
o Keep strengthening the financing mechanisms for investors and renewable energy
project developers that simplify the availability of funds during the pre-investment and
investment stages;
o Promote the relations between project developers and financial institutions to take
advantage of available risk guarantee funds to provide the financial warranties
required by the commercial banking system;
o Develop feasible models for power purchase agreements to allow project developers
fulfill commercial banking system requirements;
o Establish close relations with international financial institutions and governmental
programs;
o Ensure small and medium size renewable energy initiatives in countries under the
SG-SICA to increasingly participate in the power, heat and biofuels market;
o Promote the extension of financial services to innovative and emerging businesses;
o Provide support to cover risk guarantees and to structure viable businesses. The
financial instruments could be tailored to two kinds of clientele: the small and medium
7
Framework Document
renewable energy initiatives which currently have very limited access to loans from
commercial banks and community project developers who have partial access to
loans;
o Strive to earmark the maximum amount of financial resources to viable renewable
energy investments in collaboration with financing institutions and instruments
already in place in CA such CABEI and CAREC;
o Support power, heat and biofuels market diagnosis;
o Promote studies to design and develop financing mechanisms that consider legal and
market conditions with special emphasis on social balanced models;
o Develop methods and tools for the technical and financial evaluation of the projects
intended to be supported;
o Document and disseminate information about renewable energy financing programs
offered by regional and international institutions;
o Establish information systems on the EEP’s web page identifying the market where
the off-grid systems could be applied.
Component 3:
Strengthen human resources and institutional capacity in renewable energy and energy
efficiency issues.
o Train renewable energy projects developers to identify potential energy markets and
formulate bankable projects;
o Develop a high level technical engineering capacity by training local technicians
involved in implementing, developing and maintaining the renewable energy systems;
o Establish a set of suitable technical specifications that allow the evaluation of
renewable energy technologies available in the market to guarantee the introduction
of reliable equipments in the region;
o Create a regional database of technology suppliers and engineering service providers
in the field of renewable energy;
o Organize capacity building activities for project developers and financial institutions;
o Capacity Building for national and regional institutions;
o Seminars and workshops to develop energy services;
o Develop technical criteria for selecting and evaluating both renewable energy
technologies and equipment;
o Create and/or facilitate the access to databases including technical and financial
information, energy resources potential, estimated market size and renewable energy
projects developed in the region;

8
Framework Document
o Promote experience exchanges among renewable energy project developers in the
region as well as technical visits to other institutions and discussions with
international experts.
Component 4:
Support sustainable demonstrative projects on the appropriate use of renewable energy
and energy efficiency
o Create and implement sustainable and socially balanced demonstrative projects
oriented to strengthen the renewable energy emerging markets .
o Keep supporting the development, dissemination and implementation of sustainable
demonstrative projects to show the use of renewable energy technologies, as viable
alternatives to develop business oriented initiatives. The characteristics that these
projects should fulfill are presented in Annex 2.
o Implement a monitoring and evaluation plan of the demonstrative projects in line with
Annex 3 in order to guarantee their efficient operation and lessons learned .
o Support state of the art agricultural practices favouring family farming systems in
order to ensure both low and medium scale Biodiesel production, neither harmful to
the environment nor the balance between food and cash crop production;
o Develop procedures for the dissemination of suitable technologies for household
firewood use according to the requirements and conditions of poor beneficiaries;
o Develop monitoring and evaluation plans for sustainable demonstrative projects;
o Create a regional documentation for renewable energy projects;
o Promote business opportunities for potential foreign and regional investors.
4. Execution
4.1. Schedule, Second Phase
The development of the EEP´s second phase is planned to be developed during the
period 2007 - 2009.
The EEP completed its first phase and now moves forward towards consolidating the
excellent position reached as one of the major interlocutors in the region when dealing
with the technical and political aspects related to the development of renewable energy
projects.
The main activities to be developed during the execution of the EEP’s second phase are
indicated in the following schedule.

9
Framework Document
Schedule of Activities, Phase 2
2007 2008 2009
# ACTIVIDAD Months Months Months
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
1 Supervisory Board meetings
2 Planning, organizing and executing EEP´s Regional Forums
3 National Coordinators start preparing projects profiles
4 Steering Committee meetings.
5 Informing about the project profiles approved.
6 Reveiving projects proposal
7 Aproved project´s follow up
8 Evaluation finalized projects
EEP´s promotion in international fairs, forums, exhibitions and other
9
related events
10 Preparation and presentation of Annual Activities Report
Administration and management of the Partnership’s
11
financial resources in coordination with SG-SICA.
12 Financial Auditing
13 Development and Updating EEP´s Website
14 Communication with EEP´s Partners.
15 Collaborate with CCAD /SG.SICA on regional energy policies issues
16 Looking for cooperation with another initiatives and programs

17 Publish information about the Partnership.
18 Prepare the EEP Calendar each year with sponsors support.
19 Additional resources negotiation
20 Propose and create guidelines oriented to involve new partners to EEP
21 Develop strategic plans oriented to enhance the Partnership projects
22 Final Report of Activities Program

10
Framework Document
4.2. Results and Indicators
By its nature, the Partnership functions as a dynamic platform of activities under the
four components. Besides the mutually agreed upon regional forums, all other
projects follow the principle of proposals presented by all kinds of stakeholders
brought forward by the National Coordinators (NC) or the Regional Coordinator (RC)
to be decided by the Steering Committee Meeting (SCM). Therefore no detailed
results in regard to each component will be laid down. Since practical success can
only be achieved with adequate framework conditions in place, the Steering
Committee will look for a balance and enhance proposals in activity areas 1, 2 and 3
where appropriate. General results have been envisaged in principle and are
presented in Annex 1, Logical Framework
o a bigger share of renewable energy resources to satisfy the energy needs of
all countries under the SG-SICA; i.e. Central American nations and the
Dominican Republic,
o better access to modern energy resources especially for people living in under
-privileged areas, contributing in this way to poverty eradication and the
sustainable development of the countries concerned,
o contribute to reduce the increase of greenhouse gas effect,
o mitigate negative effects of global Climate Change
As for indicators, the EEP has mutually agreed on various possible indicators (see
Annex 3), different for each component. Given the big variation of eligible proposals,
each proponent is requested to adequately integrate two or three of the before
mentioned indicators into his project profile. Proposals which have positively passed
SCM for funding exceeding EUR 70.000 - of EEP Funds have to include an adequate
logical framework in the project proposal.
4.3. Indicative Budget, Second Phase

The EEP second phase, launched for a three-year period (2007-2009), has an initial
seed money of Five Million Eight Thousand Euros (€ 5,800,000).
As indicated before, this new Partnership’s phase is co financed by the Austrian
Development Cooperation with an amount of One Million Eight Hundred Euros
(€ 1,800,000) while the remaining amount of Four Million Euros (€ 4,000,000) will be
granted by the Ministry for Foreign Affairs of Finland.
As during the First Phase, it is expected that throughout project execution, there will
be an increase in the budget due to the co-funding contribution from EEP’s partners
or project developers. These funds could result from institution’s own resources,
resources from other programs and/or from in kind contributions.
Due to EEP’s dynamic characteristic of operation, an indicative itemized budget is
presented as a guideline rather than as a formal disbursement.

11
Framework Document
For administrative purposes the EEP’s budget is divided in two main areas: Costs of
Operation and Costs of Execution.
Budget of Operation
As indicated in Table 1 the total annual cost to operate the Regional Coordination
Unit and its related activities has been calculated at € 439,676; this amount includes
Administrative Costs, Logistic Costs, Event Costs and Other costs for consultancies
and trainings.
Currently EEP’s Costs of Operation are shared between the contributions from
Finland and Austria at 62.5% and 37.5% respectively. If other donors join the EEP
they will also contribute to the operational costs.
Budget of Execution
This entry indicates the amount allocated to execute all the activities framed in one of
the EEP’s four components.
The amount assigned to each component will be the Steering Committee’s
responsibility, assuring an adequate distribution between them. The flexibility of the
budget will depend on the proposal that each project developer presents.
In kind contributions for the execution component activities is part of the co-funding
and is to be specified in the project proposal.
Total Costs
The total amount of the Partnership funds is presented in Table 2.
Table 2
EEP’s Indicative Budget
First Second Third Total
Activity Year Year Year Partnership
€ € € €
Costs of Operation 439,676 439,676 439,676 1,319,028
Costs of Execution 1,493,658 1,493,657 1,493,657 4,480,972
TOTAL 1,933,334 1,933,333 1,933,333 5,800,000

12
Framework Document
Ministry Foreign
Affairs FINLAND
Table 1 Energy and Environment Partnership with Central America

Annual Budget of Operation (€)
(Indicative)
No. Activity
ADMINISTRATIVE COSTS 223,752

1 Regional Coordinator Salary (per month EUR 3,850) 46,200
2 Administrative Director (per month EUR 2,700) 32,400
3 Part time Renewable Energy Senior Consultant 18,000
(on hourly basis maximum EUR 1,500)
4 Administrative Advisor Salary (per month EUR 1,000) 12,000
5 Projects Manager Salary (per month EUR 2,200) 26,400
6 Office Equipment Purchase 3,517
SG-SICA administrative management overhead (EUR 4,500 54,000
7 monthly)
Office Expenses (rent, utilities, office supplies, communications, etc.)
8 14,351
9 Printing documents (brochures, reports, etc.) 7,035
10 Web page support 7,035
11 External Accounting Auditing 2,814
LOGISTICS COSTS 57,139
Regional Coordinator business travel expenses and meetings with
12 regional ministries 28,139
13 Steering Committee Meetings (2 per year) 28,000
14 Supervisory Board Meeting (travels, meeting, etc.) 1,000
EVENTS COSTS 75,976
15 Execution Projects Follow Up 2,110
16 Support to regional activities on energy (CCAD and others) 10,552
17 Regionals Forums (2 per year) 63,313
OTHER COSTS 82,809
18 Other Consultancies 7,035
19 Training / Others 8,000
20 Evaluation EEP´s II Phase 52,761
21 Contingency 15,013
TOTAL € 439,676

13
Framework Document
5. Operating Manual
The Operating Manual introduces the initial guidelines to implement the Energy and
Environment Partnership with Central America. This Partnership continues to be one
of the first programs implemented within the framework of the initiatives derived from
the Johannesburg Summit (WSSD 2002).
5.1. Execution Strategy (Rules and Functions).
In order to achieve the Partnership objectives, two operational levels have been
identified: the national and the regional levels. Decision making and Partnership
activities will be ruled by an organizational structure, whose members will have well
defined and delimited competences and functions.
The development of the Partnership’s activities will be centered in the Regional
Coordination Unit (RCU). This Office will be the link between the National
Coordination Units, the Steering Committee, Donors, different Partnership members
and staff of similar programs operating in the region, with which Cooperation
Agreements will be established.
A Web page will be further developed and implemented with the purpose of
maintaining updated information and control about the diverse activities of the
Partnership. In order to maintain an operative communication with stakeholders, this
Web page will be presented to the interested people and the community.
The National Coordination Units will promote project development in their respective
countries and they will ensure an efficient execution of the related activities.
5.2. Organizational Structure
Supervisory Board:
The Supervisory Board for the Partnership will be constituted by the Secretary-
General of the System for the Central American Integration (Secretaría General del
Sistema de la Integración Centroamericana SG-SICA) or his representative, the
Representative of the Presidency Protempore of the Central American Commission
for Environment and Development (Comisión Centroamericana de Ambiente y
Desarrollo CCAD), the Representative from the Ministry for Foreign Affairs of Finland
and the Representative of the Austrian Development Cooperation.
Steering Committee:
All Central American countries and the Dominican Republic will have a formal
participation within the organizational structure of the Partnership through a
designated Representative Member and an Alternate member.
Governments shall nominate the Representative and the Alternate Members from
different ministries, if there are separate Ministries for Environment and Energy. It is
recommended that these members be related or involved in the issues of climate
14
Framework Document
change and energy. The Finnish Government and the Austrian Development
Cooperation will designate two representatives each.
The Representative of each Central American country, the Dominican Republic, the
two representatives of Austrian Development Cooperation and the two
representatives of the Finnish Government will form the Steering Committee. One of
the Finnish Government Representatives will be nominated as the Chairman of the
Steering Committee. A representative of CCAD will participate in the Steering
Committee as an observer.
Regional Coordination Unit:

The Regional Coordination Unit (RCU) will be made up by the Regional Coordinator,
the Administrative Director, the Projects Manager, the Administrative Advisor and the
Senior Advisor. Terms of reference for the RCU are presented in Annex 7.
National Coordination Units:

The nationally designated members will form the National Coordination Units. In order
to perform their duties, these members will create a National Technical Committee,
whose members will contribute with the required capacities for an effective execution
of the activities at national level. The National Coordination Units will be related
among themselves and with the Steering Committee through the Regional
Coordination Unit.
The EEP’s organization structure is shown below:
5.3. EEP’s Organizational Functions

The Supervisory Board will have the following mandate:
o Periodically evaluate the Partnership’s results and amendments to the Project
Document
o Approve the annual monitoring report
o Approve the work plan and budget
o Reorient actions
o Propose new approaches
o Strengthen and generate synergy among the economic and environmental
sectors.

15
Framework Document
Donor Representatives will have the following functions:
o Consult with SG-SICA, about Partnership execution policies, as well as
coordinate the progress of the activities;
o Define with SG-SICA the administration procedures for operational costs of the
Partnership;
o Administer the execution and operational costs contribution for the Partnership.
The Steering Committee is responsible for the Partnership’s execution. This

Committee defines the appropriate guidelines for the Partnership’s execution and it
makes the fundamental decisions required for its operation. This committee has the
following functions:
o Evaluate and select the candidates proposed for the Regional Coordination
Unit;
o Approve the Regional Coordination Unit work plan;
o Supervise the Regional Coordination Unit;

16
Framework Document
o Approve the project profiles in order to elaborate more detailed project
proposals;
o Approve proposals that would be financed with Partnership’s execution costs;
o Assure the effective progress of the Partnership’s implementation;
o Advise the Regional Coordination Unit on its operational functions;
o Review periodical reports presented by the Regional Coordinator;
o Approve information that would be published about the Partnership’s activities;
o Establish and keep a suitable balance among the activities of the four
components, as well as the appropriate allocation of resources for these
components and participant countries;
o Keep an effective communication between members and hold periodical
meetings in order to make decisions about the Partnership’s progress;
o Approve projects final reports executed in each country;
o Define the operational scheme.
The Technical Evaluation Team is a working group of the Steering Committee,

formed by one Representative from each donor, the Representative Member of the
country holding the Protempore Presidency of CCAD at the time the Steering
Committee meeting is called, the Regional Coordinator, the Project Manager and the
Senior Advisor.
This committee has the following functions:
o Evaluate the submitted Project Profiles according to the criteria set forth in
Annex 2;
o Give recommendations to the Steering Committee on proposed approval,
disapproval or required clarification and amendment of submitted Project
profiles;
o Review project proposals in light of RCU and SCM comments to submitted
project proposals and release final approval of the project document;
o Mediate problems among project partners in sharing work and/or budget items
while preparing the project proposal;
o Endorse significant changes on activities, time schedule, budget allocation,
expenses in projects under execution following a request by the RC.
Central American Commission for Environment and Development (CCAD) will

act as:
o Executor of the activities approved by the Steering Committee.
o Facilitator and Adviser for the Steering Committee.
Secretary-General of the System for the Central American Integration (SG-SICA)

will act as:
o Administrator of the operative financial resources provided for the Partnership.
o Provide administrative facilities for the Regional Coordination Unit’s operation.

17
Framework Document
The Regional Coordination Unit is the executing arm of the Steering Committee
responsible for coordinating and administrating the essential operation of the
Partnership. Its main function is to supervise the different projects executed under the
Partnership. The Regional Coordinator will systematically document project
execution as part of the Partnership’s learning process.
The functions for the Regional Coordination Unit are shown below:
o Provide information to the National Coordinators;
o Receive project profiles from the National Coordinators for their respective pre-
evaluation;
o Facilitate the planning processes and proposal elaboration;
o Support the National Coordinators in their interaction with project developers;
o Assure that approved projects fulfill donor requirements such as being pro-
poor and that environmental and gender impacts have been assessed;
o Facilitate the drafting of contracts r for project execution;
o Receive project proposals and send them to the Steering Committee;
o Inform about approved project proposals;
o Compile the information provided by National Coordinators about the progress
in the execution of projects ;
o Organize and facilitate the meetings of the Supervisory Board and the Steering
Committee;
o Compile the experiences in project execution progress in periodical reports
and report to the Steering Committee;
o Compile information about similar programs and projects that are being
executed or proposed in the region;
o Establish the respective links and cooperation agreements with those
programs and projects, as well as other potential partners;
o Collaborate with the SG-SICA in renewable energy events;
o Assure the optimal use of information technologies during the Partnership’s
execution with emphasis on the Internet (Website maintenance,
videoconferences of the Steering Committee, communication with others
members of the Partnership, etc.);
o Publish information about the Partnership and report to the UN;
o Elaborate periodical reports about the progress of the Partnership’s program
including an analysis of results achieved and proposals for modifications if
necessary to achieve the objectives of the EEP. The reports should also
contain a list of projects, divided in appropriate stages of completion (e.g. PPF
agreed, contract signed, ongoing, closed) and a second list of PPFs received
but not supported (by the NC, RCU, SCM) or pending due to remarks from
these structures;
o Manage additional financial resources, in order to increase the available
resources to execute the Partnership
o Facilitate the European Union Energy Initiative for Poverty Eradication and
Sustainable Development in Central America;

18
Framework Document
o Develop and maintain a contact network with Partnership members,
cooperators and relevant stakeholders, in order to make public and to promote
the achievements in the renewable energy field;
o Verify goals achievement;
o Monitor the implementation of projects and other activities financed by EEP;
o Monitor the administrative and financing execution of the Partnership;
o Act as a secretary in the Steering Committee meetings;
o Inform the Steering Committee about SG-SICA activities related to the
Partnership’s activities;
o Plan and suggest the Steering Committee about studies and surveys that are
considered necessary in order to achieve the Partnership’s objectives. This
includes the hiring of the necessary consultancies, as well as the monitoring,
control and supervision of the results;
o Perform additional functions defined by the Steering Committee;
o Maintain an effective interaction with National Coordinators and project
developers in each country.
The National Coordination Units (NCU) work in the formation of the necessary
process to implement the Partnership’s program. They represent the operational link
between project developers in the different countries, and the EEP’s Operational
Structure.
These NCU will guide the development and the activities of the Partnership’s projects
in their respective countries, according to the needs and requirements of the
environmental and energy policies. In this sense, the NCU members would be the
direct beneficiaries of the Partnership’s results, since their respective tasks would be
facilitated through the activities of the program.
The National Coordination Units main functions are:
o Disseminate information on the EEP in the country and encourage the
development and execution of projects;
o Organize the National Technical Committees;
o Represent the Partnership, at the national level;
o Act as the national counterpart to the Regional Coordination Unit (RCU) and
Steering Committee (SC);
o Coordinate Partnership activities in their respective countries;
o Receive and endorse project profiles (being in line with national development
plans and national laws and regulations – e.g. EIA);
o Identify and select consultants to perform project’s activities;
o Supervise, with the support of the RCU, the progress of the EEP’s projects in
their countries;
o Periodically inform the RCO on the project’s progress;
o Inform the Steering Committee about the necessities and the activities
requirements in their country;
o Technical exchange with staff involved in project execution and external
counterparts.
19
Framework Document
The National Coordinators are members designated to represent their country in the
Steering Committee. Therefore their functions correspond to the ones designated to
the National Coordination Units
National Technical Committees could be organized by the NCU with the objective of
supporting and advising the Partnership’s activities execution.
Their functions will be defined by the NCU in agreement with the Partnership’s main
objectives and according to the particular necessities of the projects that are being
executed in country.
5.4. Application to the EEP

o Applicants
Will be able to participate and apply for EEP’s project financing: Governmental, Non
Governmental Organizations, companies and other private initiatives, research
centers and consulting offices.
Project profiles can be presented by one institution alone or by a group of institutions,
led by one of them.
o EEP Contribution
The EEP’s contribution, as a non reimbursable fund, will cover up to 100 % of the
total cost of the project. Project Developer co-funding contributions will positively
affect the approval of project proposals and will have preference over those that do
not present co-funding. Co-financing can be by means of project developer’s own
resources, funds allocated from other programs and/or in kind contributions.
The Partnership’s contribution may cover the following expenses:
− Technical services and consultancies
− Travel expenses (air tickets, accommodations, etc.)
− Vocational training programs
− Equipment and materials for the project
− Project execution expenses
− Project promotion and dissemination
o Project Eligibility
Project proposals presented must conform to the objectives of the EEP in at least
one of its main components.
Projects with high strategic value for the EEP implementation can be endorsed by the
Steering Committee.
Regional projects are encouraged.
20
Framework Document
A detailed explanation on the project selection criteria is presented in Annex 2.
5.5. Guidelines for EEP Project Financing Approval

The application and approval of project funding through the EEP is performed
following a very simple procedure which is summarized in the following steps:
Step 1 Identification of initiatives

Initiatives to promote sustainable use of renewable energy might come
from all partners including government institutions, non–governmental
organizations (NGO's) or the private sector. The initiatives shall conform
to the EEP’s four main components described above. As a rule, the
initiative should involve partners from EEP member countries (as
appropriate for the project). Regional Coordination Unit (RCU)
supported by the donor representatives in the Steering Committee will
help identify potential partners from donor countries if necessary and
follow up communication among parties. RCU will also provide
technical and administrative assistance for those projects where a
suitable partner from a donor country should be identified.
Step 2 Elaboration of Project Profile
Project proponent provides a Project Profile according to the Project
Profile Form (PPF) included in Annex 4. Once completed, a copy of the
Project Profile is sent to the National Coordinator (NC) and to the
Regional Coordination Unit for further support. In case of a regional
project, the Project Profile is submitted by the Project Proponent to the
Regional Coordination Unit to be distributed to National Coordinators
(NC). A project shall be considered regional if it involves four or more
countries.
Step 3 National Coordination Unit (NCU) receives project profile
National Coordinator (NC) supported by a National Technical Committee
(NTC) evaluates project profile eligibility according to project evaluation
criteria described in Annex 2. If in the opinion of NTC the project is not
eligible, NC notifies the project’s proponent and informs the RCU the
reason for rejection. If the project profile is eligible, the National
Coordinator, following the internal procedures of the concerned Ministry,
will send it to the Regional Coordination Unit to be evaluated during the
Steering Committee’s Meeting. In case of a regional project it has to be
supported by all countries involved.
Step 4 Project Profile Evaluation.
The Evaluation Team of the SC reviews and assesses the Project
Profile. A passed Project Profile might receive some recommendations
21
Framework Document
as well as a preliminary money allocation amount. The allocation
amount is expressed either in money terms or as a percentage of the
total project cost forming the basis for subsequent payments.
Step 5 Project profile presentation to the Steering Committee
The National Coordinator presents the Project Profile during the
Steering Committee Meeting. In case of a regional project, the Project
Profile will be presented by the Regional Coordinator. After listening to
the advice given by the Evaluation Team, the SCM approves or
disapproves the project profile.
Step 6 Elaboration of Project Proposal
Based on the recommendation proposed by the Evaluation Team during
Steering Committee Meeting the Project Developer is asked to present a
more elaborated document called the Project Proposal. Annex 5
includes a proposed structure as well as the minimum information to be
included in the Project Proposal.
The Project Proposal is prepared by the Project Proponent. In the case
of Projects where no partner involved has experience in the preparation
of project proposals, the RCU will support the Central American Partner
to prepare the Project Proposal.
In addition to the information asked in Annex 5, parties preparing the
Project Proposal should include and clearly define the responsibilities of
each one, in order to elaborate Terms of Reference, Contracts for
service providers and/or equipment suppliers, and any other legal
document needed among the parties in case that the project is finally
approved.
Energy and Environment Partnership funds are considered as “seed
money” to support concrete and sustainable projects that promote
renewable energy and technological co-operation between EEP
member countries.
In projects with Finnish partners it might be convenient for this partner
to act as the lead partner and regarded as the "custodian" of the funds
allocated by the Partnership to the project, with the responsibility to
channel the money to other stakeholders, as agreed among the
partners in the Project Proposal. If there is strong disagreement among
project partners, any of them can complain to the Evaluation Team
which can recommend how the work and budget shall be divided.
In order to keep record of project’s execution involved partners should
inform Regional Coordination Unit about the development of the
different activities.
Except for those cases where Finnish funding will be channeled through
a Finnish partner, the Regional Coordination Office within SG-SICA will

22
Framework Document
take care of all funding issues. The Austrian Development Cooperation
will channel all its funds through SG-SICA.
It should be noted that all payments are based on actual costs and will
in principle be paid after finalization of the project, based on audited
accounts. It can be agreed to make partial payments based on
intermediate accounts.
Step 7 Project Proposal is presented for final approval
The Project Proponent sends the Project Proposal to the National
Coordinator who will send it to the Regional Coordination Office in order
to be distributed among the Steering Committee Members, who will
have 15 days to send comments on this Project Proposal. The RCU will
follow up this procedure. After this period, the Evaluation Team reviews
the document and approves the Project Proposal.
Step 8 Start up of project execution
Project Proposal turns into the Project Document to guide the project
execution. All the documents prepared and included in the Project
Proposal will enter into force upon signature between parties. They will
notify RCU about the signature of these documents. Any changes on
activities, time schedule, budget allocation, expenses, etc. should be
informed to the Regional Coordinator Unit for eventual endorsement by
the Evaluation Team.
Partnership Administration considers that the opinion of independent
audits is a key element in the monitoring and follow up of any Project
execution process oriented to ensure that all resources be administered
and used according to the terms and conditions agreed in the contract.
The procurement practices have to conform to the local procurement
rules of the respective country. For those projects to be executed by the
EEP’s Regional Unit and administered through SG-SICA, Administrative
Procedure Guidelines are presented in Annex 6.
Step 9 Project execution
Reporting, transferring of money and monitoring of the different activities
to be developed during the execution of the project will be according to
the time schedule indicated in the project proposal.
Step 10 Project closure
The closure of the project will be considered when the RCU accepts the
final and audit report sent by the project developer.

23
Framework Document
¡Error!
SCHEMATIC DIAGRAM FOR PROJECTS FINANCING APPROVAL
Identification of initiative RC receives Project Profile to be Evaluation Team

under consideration presented during SC meeting revises and approves
Project Proposal
Elaboration of Project Evaluation Team evaluates and

Profile gives advice on Project Profile
Start up of Project’s
execution
NCU (and RCU) Project Profile is presented during

receives Project Profile the Steering Committee Meeting
for evaluation
Elaboration of Project Proposal

National Coordinator
based on approved project profile
notifies Project
proponent (and
RCU)about NCU
resolution Project Proposal is presented to
the NCU, to be sent to the
Steering Committee Members
through the RCU.
NC sends eligible
Project Profile to
Regional Coordinator

24
Project Document
6. Crosscutting Issues
6.1. Combating Poverty
Lack of access to adequate, affordable, reliable, safe and environmentally benign
energy is a severe constraint on development. Poor people see access to energy as
a priority. Many already pay more per unit of energy than the better off due to
inefficient technology and corruption. Improving access to appropriate affordable
energy services through: better management and regulation of the energy sector;
increasing the efficiency of energy provision and use; increasing the choice of energy
services; developing local capacity; encouraging partnerships and attracting private
investment in energy services; providing access to finance at all levels and reducing
costs; and designing smarter subsidies and other policies that work for poverty
reduction. And energy is not just about electricity, neither is electricity always the best
energy source for all needs, biomass, kerosene and other sources are important too.
Finally, it should be recognized that energy alone will not reduce poverty but it does
have an important role to play alongside other things: raw materials, finance and local
skills.
Although the partnership has been initiated as a comprehensive and not a regional
pro-poor program as such it is helping the poor directly by facilitating access to
modern fuels and electricity, creates projects which support energy needed for social
services (health, education, communication) and promotes energy-efficient and less
polluting end-use technologies for traditional fuels. As a result, the partnership aims
also at reducing the cost and improving the quality of energy supplied to low-income
households by supporting mainly decentralized sustainable energy solutions.
6.2. Gender Issues
The health, education, and productive activities of women and children are
particularly sensitive to the availability of modern energy services. Men and women
have different energy needs which are largely a result of their different roles and
responsibilities in the household and in society. Energy for cooking, cleaning and
child-care are the obvious examples for women’s needs, but women’s equally
important and often less obvious energy needs include energy for water pumping (for
household and irrigation), energy to labour intense tasks such as husking and milling,
and energy for home-based enterprises which are usually run by women. Therefore
introducing new forms of energy may have positive effects on men and women but in
some cases there might also be unintended negative effects increasing the workload
of women and exacerbating their subordinate position, e.g. lightening which increases
the number of working hours may mean that women, who work longer hours than
men and sleep less, have their days extended unbearably. Thus impact of energy
interventions on men and women must be assessed in both, its positive and its
negative results expected for each project considered for financial support.
In areas where the partnership is acting directly, like on selecting speakers for
workshops and forums as well as on experts hired for the RCU the partnership will

25
Framework Document
endeavour to achieve gender balance without compromising on the quality required.
The partnership will also stress on the EEP members to try to keep the partnership
gender balanced.
6.3. Environmental aspects
The Energy and Environment Partnership with Central America (EEP) has been
supporting the Central American countries since its launching during the World
Summit on Sustainable Development of the United Nations in Johannesburg 2002, in
order to promote the renewable energies, with the purpose of contributing to the
sustainable development and the mitigation of the global climate change.
Based on the Washington Consensus 1990, the following liberalization and
deregulation of the energy sector, hand in hand with the high increase in power
demand changed drastically the existing energy mix of power generation in the region
from predominantly renewable into about 50% stemming from conventional thermal
production.
Assistance via the EEP will promote environmental sustainability by reducing the
growth rate in the energy consumption, compared to an alternative without the inter-
ventions. This will be achieved through energy conservation, better management of
indigenous energy resources, the use of clean and more efficient energy technologies
and the promotion of renewable energy.
Environmental concern is a key issue in all areas of energy support. Climate change
issues, land degradation/desertification and in- and outdoor air pollution are of parti-
cular interest, but also biodiversity, the protection of wetlands and rivers, and the
preservation of forests are important areas of concern, which will be given due
consideration in the planning and development of the EEP.
6.4. Good Governance
The EEP will contribute to good governance, human rights and democratization by
supporting the establishment and enforcement of a well governed and transparent
legal, regulatory and financial energy framework (Activity 1). Special attention will be
paid to the protection of energy consumers’ rights within the regulatory framework.
Projects supported by EEP should actively promote participation in the planning,
implementation and management of energy solutions by stakeholders and end-users,
both through consultations on their needs for energy services and through their active
participation in the implementation and management of the chosen solutions. The
participatory approach will duly respect and seek to make use of local knowledge and
traditions by involving local communities and end-users, especially women, in the
development of the sector.
6.5. Peace and Human Security
The paucity of energy and the absence of energy security can lead to political
tensions both within and between the states. Energy security is an increasingly
important geostrategic issue. Even within states, unstable energy prices can
exacerbate social and economic crisis, ending in violence and revolt. Poorer and
26
Framework Document
disadvantaged groups in urban slums or rural regions in particular are greatly affected
by rising energy prices because of their restricted income.
The partnership bases its interventions on national renewable energy resources and
therefore mitigates problems related to energy security and paves the way for more
stable energy prices.
7. Monitoring and Evaluation

The process of evaluation of the EEP projects will be developed based on
performance indicators, for the monitoring of projects in the execution phase, and for
the evaluation of results and impacts of finalized projects. The phases of evaluation
will be the following:
1. Monitoring during execution phase: It will consist of a periodic monitoring of
the technical advance and the financial expenses of projects in process of
execution, taking into account the sequence of activities and the budget.
2. Evaluation of results at the moment of the project finalization: It will be
carried out once the projects have finalized all the planned activities. The
purpose will be to know the level in which the projects actually achieved its
specific objectives and results.
3. Post-evaluation of project impacts: In order to assess the long-term impacts
of EEP projects, selected projects will be evaluated from time to time for their
impacts after the beneficiaries have been sufficiently exposed to the project
benefits. With this evaluation it will be possible to assess if the project achieved
its purpose, for instance if it has contributed to improve in a permanent way the
quality of life of the beneficiary population.
8. Further Development of the Partnership

Considering ownership and active involvement of partners from Central America the
EEP looks back on good performance and improvements since its creation. All kind of
projects pass the related NCU (consisting of energy and environmental agencies) for
endorsement. So far all projects and activities have been mutually agreed by the
Steering Committee, consisting of representatives from 10 nations, actually.
The performed evaluation on phase 1 revealed besides the many positive results of
the partnership also some weaknesses/risks and formulated a number of
recommendations.
o The Partnership has tried to cover through investment projects all end-use
sectors and technologies, regardless of the market size or maturation degree.
This had the positive effect to impose the Partnership as the major interlocutor of
countries in the field or renewable in Central America. But it also dissolved its
intervention capacity into a too large a range and too important a number of
projects, making its intervention sometimes to sketchy and insufficient.
The evaluators guided the partnership towards three fields of activity: the
generation of a functioning electricity market with renewables, rural electrification
27
Framework Document
and biofuels in a socio-economic and environmental sustainable framework.
o According to evaluation, project lines with least market opportunities, such as
grant based solar home systems and domestic wood fuel should be dropped and
links with national bodies like the Cleaner production Centres intensified but
activities delegated.
o Several organizational improvements led to a more reliable and comprehensive
Partnership. The initial approach via the national Environment Agencies
(Ministries) got a boost when joining up with the national Energy Agencies
(Ministries). The partnership bundles funding with other donors such as the
Austrian Development Agency, has initiated cooperation with REEEP for energy
policy issues and FINNFUND and CABEI for financing schemes and still
continues to broaden the donor basis. The intended foundation of an Austrian
Development Bank in 2008 will open up new cooperation opportunities.
o The many field interventions represent great assets to preserve. However,
activities in financing and regulatory aspects need consequent and systematic
basis which ask for more than periodic regional meetings.
o Financial topics get more and more attraction with the EEP in phase 2. Having
experienced in phase 1 the outcome of studies, pilot schemes and detected the
political framework conditions for renewables in the region, financing and
financial analysis for projects beyond pilot character become an issue. A
systematic cooperation between EEP and regional and local financing institutes
as well as development banks and/or other financing instruments from the
involved donors is recommended.
8.1. Assumptions and Estimates
Given the crucial importance of energy issues for the development of the region there
is high priority accorded to it on institutional and policy levels. Since the relevant
national authorities endorse each project, these projects are not only fully in line with
the government’s development strategy but as a result, political support is assured
from the outset.
Liberalization and deregulation in the nineties have led to very different framework
conditions for renewable energy in the Central Americas. Given the actual fuel prices,
there is a strong political movement towards sustainable and national energy
resources. In the unlikely event of major changes in the oil market and a subsequent
change in the general energy policy of the Central American Governments only little
room remains for balancing feasibility in renewables with inadequate regulatory
frameworks. The program is to be closed down in such a case. It has to be noted, that
all indications give the contrary impression.
Given the expected timeframe for increasing considerably the share of renewables
and allowing access to modern energy services for all citizens there is no exit strategy
of donors defined within this phase. To the contrary, if the evaluations foreseen result
positive continuation of the program is envisaged.

28
Framework Document
Annex 1 Logical Framework Matrix
Logical Framework Matrix
Objectively Verifiable
Intervention Logic Verification Sources Hypothesis
Indicators
Regional Coordination
Promote the use of renewable Unit supervises projects
Number of executed projects and Project reports.
General energy sources and clean and reviews reports.
other activities to achieve the Reviewing of the project
Objectives technologies in Central Steering Committee will
objectives of each component reports.
America. supervise projects and
reports execution.
Diverse organizations will
Increase of electric energy supply Statistics and studies about participate in the
Contribute to the energy network in the rural area. A more national electric coverage. execution of the
supply, especially in the rural efficient use of firewood. Surveys about penetration of Partnership.
areas of the region, and the Increase the knowledge about the the technologies used for food Surveys Existence,
mitigation of the effect of renewable energy role in reducing preparation and cooking. statistics and studies of
climate change at global the increase of greenhouse gas Projects inventory and studies Regional coverage.
scale. emissions. of the Renewable Energies Regional Coordinator
issue. gathered the information
generated by inventories.
National Coordinators
Information from National
document on the
Facilitate the development of Increased number of institutions Coordinators members of the
sprouting of new
strategic plans to strengthen involved in the development of partnership.
Specific institutions.
the use of renewable energy, strategic plans. Number of strategic plans and
Objectives Improvement of the
based on the sustainable actions of renewable energy
capacity of development
development concept. Existence of strategic plans. promotion.
and plan implementation.

29
Framework Document
Logical Framework Matrix
Objectively Verifiable
Intervention Logic Verification Sources Hypothesis
Indicators
New or modified policies and
respective proposals to promote Project developers. Project Developers provide
1. Legal and institutional
sustainable energy Institutions related to the information.
barriers that are an obstacle to
Results the use of renewable energy in
development of renewable Institutions facilitate the
Increase in the development and energy projects. process of removal of
the region have been removed.
implementation of renewable Energy Balances. barriers.
energy projects in the region
More participation of energy

2. The emergent market of
service companies due to the
renewable energy oriented to Number of projects. Models of energy services
application of innovating
the generation of electrical Numbers of companies. are put into practices
mechanisms of financing.
energy and rational use of Documentations and according to the local
biomass has been promoted verification of the projects. conditions
Increased generation of
and developed.
sustainable energy
Number of participants trained in Reports Consultants with experience

3. The capacities of the human instruments and technologies for and knowledge will be hired to
and institutional resource of the sustainable energy. Technical and financial make the handbook and to
region in the thematic of the More lenders of specialized qualification handbooks. give the training.
renewable energy have been engineering services in the Handbooks of renewable The manufacturers of the
strengthen. renewable energy technology energy technologies technologies facilitate their
standardization. engineering specifications.
More power infrastructure in the Contracts of installation and

4. Demonstrative projects of the
rural area. equipment acquisition. Folders development of
suitable use of renewable
Dissemination of strategic Documentation and sustainable power projects
energy have been developed.
projects verification reports.

30
Framework Document
Annex 2: Projects Selection Criteria
Proposed projects are evaluated based on the submitted project profile and the
related presentation by the NC in considering the following criteria:
1. The project profile presented to the Steering Committee should fit into at least
one of the four Partnership’s components.
2. The project should effectively respond to the national priorities in renewable
energy issues (endorsed by the National Coordination Unit).
3. The proposal should be supported by a social, economic and technical
diagnosis that endorses the need of putting the project in practice.
4. Capacity of the applicants to execute and administer the project.
5. The projects should include co-financing; however, proposals with important
project developer’s contributions will have better chances compared to those
that don’t include any co-financing.
6. The sustainability of the project including running cost should be presented
(including conditions, risks etc.).
7. Assurance that approved projects do pass donor requirements such as being
pro-poor and assess environmental and gender impacts (endorsed by the
donor representatives).
8. In the case of demonstrative projects, the following criteria will be applied
additionally:
Replication: The project should serve, either as a demonstration to prove
that investments and business in renewable energy technologies can attract
financing from both commercial banks as well as non-banking financial
institutions, or to demonstrate that renewable energy technologies can
contribute to improve living conditions in isolated or under privileged
communities and trigger central government or local government investments
in these areas.
Technical and financial sustainability: The pilot project should aim at
institutionalizing the provision of financial and technical assistance so that the
likelihood of sustainability of the pilot activity will be increased. The project
must be designed specifically according to the characteristics of the local
community where it will be implemented. The factors to be considered are:
local demand, the availability of renewable energy resources, economic
activities of the community, willingness to pay and payment capacity as well
as availability of financial resources.
Social, economic and environmental impact: The pilot project results must
bring important social, economic and environment benefits to local
communities. It would be helpful to indicate how the project activities and
results could benefit other agencies whose cooperation is important to the
successful implementation of the planned activities.
31
Framework Document
If the total of projects having passed these criteria is higher than the budget available,
the SCM will either reduce requested contributions with less attractive proposals,
postpone agreement on lower rated proposals for the next session or cut down
number of similar projects in different countries and request for active know-how
transfer between the project proponents as well as the related NCUs.

32
Framework Document
Annex 3: Indicators
Indicators for each of the four components of the Partnership are proposed below.
Given the huge variety of projects eligible under the EEP, the mentioned
indicators should be seen as hints for the selection of two or three out for
evaluation of a project and finally laid down in the respective project document. In
special cases the SC will agree on other indicators, if appropriate.
COMPONENT 1:
Removal of legal and institutional barriers
and
COMPONENT 2:
Promotion and strengthening of the development of the renewable energies in
the emerging markets of electric power, as well as the rational use of the bio
energy resources
o Number of companies or domestic commercial businesses than can
manufactured/assembled, sell/install, and service/maintain technologies
o Share of renewable energy in the electric power generation
o Share of households supplied by renewable energy generation
o Percentage of the bio-fuels in the total consume of fuels
o Quantity of financial resources manage by the financial mechanism
established
COMPONENT 3:
Strengthening human resource and institutional capacity in renewable energy
issues
o Number of persons trained
o Number of person-days of trainees being trained
o Number of trainees being promoted after training
o Number of workshops
o Number of technical manual published
COMPONENT 4: Pilot Projects
Monitoring of projects in the execution phase
o Number of activities executed / total number of activities programmed; Level of
execution (%)
o Total of financial resources spent / total of financial resources allocated; Level
of budget execution (%)
Evaluation of results at the moment of the project finalization
o Efficiency: High: with the same quantity of resources were achieved more
results Average: With the resources budgeted the results expected were
achieved Low: With a greater quantity of resources the results were achieved
or with the resources budgeted were achieved less results
33
Framework Document
o Number of technical studies formulated
o Sustainability: High: Measures have been established to reach the economic
and technical sustainability Low: not measures have been established to reach
the economic and technical sustainability
o Effectiveness: Number of results achieved / number of results expected
o Number of units installed, manufactured or area cultivated: Number of solar
system, biodigestors, stoves, boilers installed, equipment manufactured, area
cultivated, etc.
o Internal Rate Return (IRR)
Impacts evaluation of projects that have finalized two years ago
o Investment promoted: Euro
o Installed capacity: kW, litres, tonnes, etc.
o Installed capacity or hectare cultivated cost: Euro
o Production Electric power (kWh), Biodiesel (litres), charcoal, pellets (tonnes)
o Production cost: Euro
o Economic saving: economic savings for the utilization of renewable energy
resources (solar systems, biodigestors, efficient stoves, etc.) compare with the
conventional technology (diesel generator, boiler, traditional stove) or by the
save in the expense of electric power
o Incomes level improved: The incomes level have incremented associated to
the increment in the production level by the introduction of the renewable
energy technology. Estimate the incomes increment associated to the
production increment (vegetables, charcoal, etc.) by the introduction of the new
technology in comparison with the baseline
o Percentage of the technology installed that are being utilized for the beneficiary
population
o Green house gases reduction: tonnes CO2 reduced or avoided
o Number of beneficiaries (direct and indirect): Families, persons (classified by
gender)
o Beneficiaries satisfaction: High: The beneficiaries perceive that the project
overcome their expectations Average: The beneficiaries perceive that the
project fulfils their expectations Low: The beneficiaries perceive that the project
did not fulfils their expectations
o Knowledge and understanding of the technology: Number of persons trained
o Number of workshops
o Number of technical manuals published
o Diffusion: Number of dissemination events carried out (inauguration, other),
Number of persons and entities that have visited the project site
Annex 4: Project Profiles Form

This project profile form is elaborated for the Steering Committee to perform a pre-
evaluation and a pre-selection of the possible futures projects. If the Committee
accepts the project profile, the project developer will be invited to present a more
complete proposal.

34
Framework Document
Project Profiles Form
The Steering Committee of the Partnership needs this project profile form in order to make a
pre-qualification and a pre-selection of the possible futures projects to be supported. If the
Committee accepts the project, the project Developer will be invited to give a more complete
proposal.
Project Name (topic and country):
The proposals can be submitted by one or group of organizations, leading by one of them.
a) Organization leader data:
Organization: Address:
Contact Person:
position:
Phone: Fax: E-mail:
b) Others Group member data:
Contact Person:
position:
Phone: Fax: E-mail:
Contact Person:
position:
Phone: Fax: E-mail:
Contact Person:
position:
Phone: Fax: E-mail:

35
Framework Document
c) Project description. Include the location, beneficiaries and a brief analysis of the existing
problems, in order to justify the project.
d) General objective. Define the main objective and explain the future context, once the
problems have been solved.
e) Specific objective. Define one or more specific objectives. These objectives should
contribute to the achievement of the general objective.
f) Results. Explain the results that should be obtained in order to reach the objectives. Also
explain the project impact.
g) Activities. Present the activities that must be made to be able to achieve the results.
h) Project length
Month
i) Project Resources - Describe the main resources of the project, showing consultancies,
equipment and services
Consultancies Euros
Equipment Euros
Services Euros
j) Project cost – Calculating the total project cost (Euros).
Euros
k) Project financing - Estimate the Partnership expected contribution and the each member’s
contribution.
Partnership Euros
Group Euros

36
Framework Document
Place and Date Signature and stamp of the
Leader Organization
Please submit this form to:

Regional Coordination Unit of the
info.aea@sica.int
Tel. (503) 2248 8800 and fax (503) 2248 8899
NOTE: Endorsement from the National Coordination Unit of the country must be obtained, in
order to assure accomplishment of the proposal with the objectives of the Partnership.

37
Framework Document
Annex 5: Project Proposals Presentation
The project proposal does not have legal validity nor is binding in any sense, but it
contributes with valuable information and must be considered the project developers
technical opinion.
After the approval by the Steering Committee, the project proposal document is used
as a reference to elaborate the "Contract Reference Terms". This is part of the
Annexes of the Subvention Contract. This document describes, in detail, the project
and the work of the institution or the group. In addition, if the project proposal is
complete enough, it could be use as a reference for the Initial Diagnostic of the
Project.
The proposal will have a maximum of 40 pages and must follow the following order:
o Project title and name of the partners
o Index
o A two-page executive summary including the most important details of the
report (objective, activities, results)
o Main text
o Annexes
Proposals with agreed support above Euro 70,000 have to include an
adequate logical framework as annex 1.
Proposal Index
The index of the document should follow this structure:
o Context
o General Objective
o Expecting Outcomes
o Activities, organization and project management
o Resources
o Costs and financing
o Annexes
Activities
The steps to define the activities in more detail are the following:
o Identify project specific objective
o Define expecting results in order to achieve the specific objective
o A detailed definition of the activities related to the expected result
o Prepare a work plan for each activity and identify in detail the required
resources for each activity and the whole project in concrete terms (no
budgetary):
a. Equipment and resources needed
b. Professional profiles for the consultants
c. Task to be identified in detail.

38
Framework Document
Resources
o The budget will include the expenses by activity
o It is important also to indicate the budgetary frame and a disbursement plan for
the execution of the project
o The budget can include "contingencies”, which could be used to cover a
serious risk that jeopardizes the success of the project development
o All the amounts will be shown in Euros.
Annexes
The annexes should include:
o The consultants Curricula Vitae
o A detailed information of the Group
o A bibliography related to the project main objective.
List of documents to be presented
The documents that must be submitted are:
o Three stapled copies of the main document, including:
Executive Summary (two pages)
Information about the institution or group
Information about the project
o Detailed information about the group (institution profiles / enterprises)
o A copy of the main document without stapling
o Executive summary (another three copies)
o Information about group (another three copies)
o Information about project (another three copies)
o All project document files in MS Word, MS Excel

39
Framework Document
Annex 6: Administrative Procedures
SECRETARIA GENERAL DEL

SISTEMA DE LA INTEGRACION CENTROAMERICANA
(SG-SICA)
GUIDELINES FOR PROJECTS EXECUTED BY THE

ENERGY AND ENVIRONMENT PARTNERSHIP
WITH CENTRAL AMERICA
AND ADMINISTERED THROUGH SG-SICA
August 2007
Boulevard Orden de Malta No. 470 Teléfono (503) 2248 8800

Santa Elena, Antiguo Cuscatlán, El Salvador Fax (503) 2248 8899
www.sica.int/energia info.aea@sica.int

40
Framework Document
Some projects executed by the Energy and Environment Partnership with Central
America (EEP) are administered financially by Secretaría General del Sistema de la
Integración Centroamericana (SG-SICA); these funds correspond to the international
cooperation that the Donors offer to the participating countries and have been
allocated by the Project Evaluation Team during the Steering Committee meetings.
This guide describe the main procedures required by SG-SICA for the administration
of this projects in order to contribute to improve the efficiency in administering these
funds and to agile the disbursement processes to Project Developers
I. PROJECT CONTRACT
1. Each project will turn official under the signature of a legal contract between
the EEP, represented by the Regional Coordinator, and the legal
representative of the company, organization, institution or community board
responsible to develop the project.
2. Three originals of the contract will be signed and sealed by the two parties.
One will be given to the SG-SICA, another to the EEP and the other to the
Project Developer.
3. All the legal documentation that endorses the existence of the Project
Developer, the designation of the organization’s representative and a copy of
his/her personal identity card must be attached to the contract. This
documentation can be a copy of: the letter of constitution, the legal (law)
personality, official newspaper or another legal document that endorses the
Project Developer.
II. EXCHANGE RATE FUNDS
4. Funds allocated to each one of the projects are expressed in Euros. SG-SICA
will administer the funds in US dollars at the exchange rate of the funds
transfer date
III. FUNDS DISBURSEMENT
5. Projects that have been authorized to receive upfront funds must attach to the
request for the first disbursement an invoice or receipt using the project
developer letterhead paper, sealed and signed by the representative,
enclosing a copy of his/her ID card and taxation ID card. This will be a
temporary receipt or invoice, to endorse the first disbursement. Project
developer will present the final receipts or invoices to clear the expenses
disbursement.
6. In order to request for the second disbursement, the Project Developer must
present the original receipts or properly authenticated copies that cover the
first disbursement and an invoice or receipt, as indicated above, requesting for
the second disbursement.
7. For the last disbursement the Project Developer will have to present an
invoice or receipt (as previously indicated), for the requested amount and the
pending receipts expenses in original or properly authenticated copies. In
41
Framework Document
addition he will have to present an audit report for all the funds received and
spent during the project development.
IV. REQUIRED DOCUMENTS TO ENDORSE DISBURSEMENTS
8. For each disbursement the Project Developer will have to present an invoice
or receipt in the name of “SG-SICA/Alianza en Energía y Ambiente con
C.A”, which will endorse the funds received by the Project Developer (This
invoice or receipt do not replace the final invoice or receipts for all the
expenses).
9. All invoices, receipts or any other voucher must be issued to “SG-
SICA/Alianza en Energía y Ambiente con C.A”. In exceptional
circumstances if the payments documents were issued to the Project
Developer’s name, the original payment document must be marked with the
following statement “Pagado con Fondos del Proyecto SG-SICA/Alianza en
Energía y Ambiente con C.A”.
10. The Project Developer will have to present invoices and original receipts
supporting all expenses, in the name of “SG-SICA/Alianza en Energía y
Ambiente con C.A”; or in absence of, copies of documents in the name of
the Project Developer can be presented, but in this case all the documents
have to be authenticated by a notary.
11. The Project Developer is obliged to have a formal accounting system and
keep a file of the original documents, allowing access to these documents
when required by SG-SICA.
12. For each one of the disbursements requests, the Project Developer will have
to present an expenses settlement report that should include: correlative
number, the date in which the expense was made, supplier’s name, expense
description, the endorsement document’s number, as well as the expenses
amount in local currency and US dollars. The total of the settlement will have
to be the same amount; also it must appear the elaboration date of, as well as
the name and signature of the person who is representing the Project
Developer.
13. The request for the last payment will be attached to a completion project
report, elaborated by the EEP’s Regional Coordinator.
14. In case the payments are asked to be effective through an electronic transfer,
the Project Developer must provide the necessary information to complete the
proceeding. The charges on the electronic transfer will be covered by the SG-
SICA/EEP.
15. Each expense must be endorsed by an invoice or receipt (with the indicated
characteristics), otherwise could not be including in the settlement.
16. All purchases through Internet will have to be endorsed by a formal invoice;
otherwise the expense will not be covered.

42
Framework Document
17. In case a service has been provided by a third party that cannot emit an
invoice, the person will have to sign a receipt by the amount of the service and
enclose a copy of his/her ID card.
18. In case of renting premises where it is not possible to emit a commercial
invoice, the renter will have to provide a signed receipt including the amount,
the month and the concept for the payment, and attach a copy of his/her ID
card.
19. For all small good and services expenses where the supplier cannot provide a
commercial invoice, the supplier will have to provide a signed receipt that
includes the amount and the concept for the payment, and to attach a copy of
his/her ID card.
20. In case that a Project Developer is executing simultaneously two or more
projects, the Project Developer must handle each project separately; in no
case a document can used as endorsement for two or more projects. Each
project must handle its own contract, settlements, expenses receipts and its
own audit.
21. Each completed project must send to the EEP’s Regional Coordination Unit a
closing report, both an electronic and printed version, including project’s
pictures to be published on the EEP’s Web site and related publications.
V. PROJECT AUDIT
22. The project audit will have to be performed by a certified audit firm and will
have to review mainly that all the expenses have been made accordingly to
the project’s budget and that there is an acceptable endorsement document
each expense. An audit report should be issued approving the funds handling
for the execution of the project. The report will have to be sealed and signed
by the auditor including his/her name and certification number.
23. The auditor must verify in situ that all invoices, receipts or any other voucher
issued to the Project Developer’s name are marked with the statement “SG-
SICA/Alianza en Energía y Ambiente con C.A”.
24. The cost for the audit must be considered in the project’s budget and must be
included in the settlement for the last disbursement.
VI. ANOTHER IMPORTANT ASPECTS
25. All expenses not indicated in the project’s budget will not be covered
26. Demonstrative projects will have to install a sheet metal sign (minimum size 2
by 2 meters), to identify the project as one financed by the Donors through the
EEP. The sign’s design must be coordinated with the EEP’s Regional
Coordination Unit. The sign’s cost will have to be included in the project’s
budget.
27. All printed or electronic documents related to the project prepared by the
Project Developer, either for promotional, informative or another purposes, will
have to include the legend "Project financed by Ministry for Foreign Affairs of
43
Framework Document
Finland and the Austrian Development Cooperation and the EEP’s logo, which
will be provided by the EEP’s Regional Coordination Unit. Also, the
document’s layout and illustrations should be sent to the EEP’s Regional
Coordination Unit for revision.
28. When a project execution requires to buy equipment or to hire consultancy
services for an amount of EUR 10,000.00 and over the Project Developer
must present three quotes from different suppliers/consultants to the EEP’s
Regional Coordination Unit including a comparative analysis between
suppliers/consultants to support the decision to select the respective
supplier/consultant.
29. The Project Developer will evaluate requesting the suppliers/consultants
indicated above a faithful fulfillment guarantee, including hidden vices, for the
upfront payment he might grants to them; in order to protect the investment of
the EEP’s funds.
30. The time for disbursements will depend on the completeness of all the
documents endorsing the request according to the procedures indicated
above. Incomplete disbursement request will not be processed and EEP’s
Regional Coordination Unit will notify the Project Developer to make the
respective changes.
Elaboration Date: August of 2007

Authorized by: Otto Leonel García, EEP Regional Coordinator
To be valid: August 2006 - June 2009

44
Framework Document
Annex 7: Terms of Reference for Regional Office Staff
A. Regional Coordinator
General Description
The Regional Coordinator will be in charge of the Regional Coordination Unit and
administrate the partnership program, including the required support for the
development of the projects that are executed in the participating countries and the
performance of the consultants. The Regional Coordinator will also work closely with
the National Coordination Units and will be supervised by the Steering Committee
and he will report directly on the Representatives of the Donors.
Responsibilities
The Regional Coordinator has the responsibility of two areas: the Program’s
Administration, including the staff of RCU and the Coordination with governmental
institutions, partners, and external counterparts with whom cooperation agreements
are established.
Administration
o Supervision of the progress of the activities assigned to personnel designated
to projects;
o Writing an activities report and documentation according to the requirements of
the Steering Committee;
o To sign up contract agreements with project developers;
o Administration of the contracts of the consultant assigned to the projects.
Coordination
o Coordination of the project activities with the National Coordination Units,
external counterpart, with the Steering Committee, SG-SICA and the
Representative of the Donors;
o Coordination and exchange of experiences with national and international
institutions in the renewable energy field;
o To supervise the activities and assignments developed by the Partnership’s
Project Manager.

45
Framework Document
The duties and specific functions of the Regional Coordinator are indicated as follows:
o Propose and create guidelines oriented to involve new partners to EEP
o Develop strategic plans oriented to enhance the Partnership projects
o Establish contacts with Renewable Energy companies and Cooperation
development agencies to join EEP
o Provide the information to the National Coordinators
o Facilitate the creation of the National Technical Committees
o Receive projects profiles from the National Coordinators for their respective
pre-evaluation
o Facilitate the planning processes and proposals elaboration
o Support the National Coordinators in their interaction with the projects
developers
o Facilitate the contracts elaboration for the projects execution
o Receive projects proposals and send them to the Steering Committee
o Inform about the project proposals approved
o Compile the information provided by National Coordinators about the progress
of the projects execution
o Compile the experiences from the projects execution progress in periodical
reports and send them to the Steering Committee
o Compile information about similar programmes and projects that are been
executed or proposed in the region
programs and projects, as well as other potential partners
o Collaborate with the CCAD in the renewable energy international forums
o Assure the optimal use of the information technologies during the Partnership
execution with emphasis in the Internet (Website maintenance,
videoconferences of the Steering Committee, communication with others
members of the Partnership, etc.)
o Publish information about the Partnership
o Elaborate periodical reports about the progress of the Partnership program.
o Management of additional financial resources, in order to increase the
available resources to execute the Partnership and facilitate the partnership
initiative European Union Energy Initiative for Poverty Eradication and
Sustainable Development
the achievements in the renewable energy field
o Verify goals achievement
o Monitor the administrative and financing execution of the Partnership
o Act as a secretary in the Steering Committee meetings
o Inform the Steering Committee about institutional activities related to the
Partnership activities
o Plan and suggest to Steering Committee about studies and surveys that are
considered necessary in order to achieve the Partnership objectives. It
includes the hiring of the necessary consultancies, as well as the monitoring,
control and supervision of the results
46
Framework Document
o Perform additional functions indicated by the Steering Committee
o Maintain an effective interaction with the National Coordinators and project
developers in each country
o Inform Partnership’s development to the Supervisory Board.
Qualifications
The Regional Coordinator should have at least five years experience in project’s
administration and management. He or she is required to have experience in or with
governmental institutions.
Among the capacities, competency, abilities and skills that should have the Regional
Coordinator are:
o Have the ability and skills to plan, coordinate, manage and execute plans,
programs, policies and actions aimed at the development and promotion of
projects.
o Awareness of business trends economic, technological, social, legal and
political conditions and factors which could affect the viability of a renewable
energy project
o Have the capacities and attitudes in order to work with multidisciplinary groups
and represent competently the Partnership in proposals and negotiations of
International Covenants and Agreements related with the program activities, as
well as, commissions and events assigned by the Steering Committee.
Other qualifications:
o Professional degree in engineering, economy or a similar field related to the
Partnership program. The Regional Coordinate must posses a Master’s degree
or higher.
o Knowledge of technical, economic, financial and institutional issues related to
renewable energy resources.
o Proficiency in the use of software packages.
o Analytical capacity and negotiation skills.
o Capacity to work under pressure and availability to travel.
o Good skills in project’s budget administration.
o Fully bilingual English and Spanish.
Hiring period
On a yearly basis

47
Framework Document
B. Administrative Director
General Description
The Administrative Director is responsible for the good management of the EEP’s
financial resources and organizing and facilitating all the meetings and technical
events organized to promote the EEP. The Administrative Director will also work
closely with the SG-SICA performing financial solutions to the EEP related activities.
Responsibilities
o Administration and management of the Partnership’s financial resources in
coordination with SG-SICA.
o Monitor the administrative and financing execution of the Partnership
the achievements in the renewable energy field.
o Inform the Supervisory Board and Steering Committee about institutional
activities related to the Partnership administrative activities.
o Maintain an effective interaction with the National Coordinators and
stakeholder in each country.
o Planning, organizing and executing the regional forums on renewable energy
twice a year.
o Organizing the Steering Committee meetings with the Ministries of
Environment and Energy of Central America, Finland and Austria, as well as
CCAD and SG-SICA.
o Coordination of the Supervisory Board meeting once a year.
o Participation in international fairs, forums, exhibitions and other events to
represent the Partnership.
o Meetings coordination for the Central American Ministers of Environment and
Ministers of Energy.
o Communication with the Partners and stakeholders by Internet.
o Support the development of the Partnership’s execution projects.
programmes and projects, as well as other potential partners.
o Collaborate with CCAD in the renewable energy area.
o Assure the optimal use of the information technologies during the Partnership
execution with emphasis in the Internet (Website maintenance and
development, communications, etc.).
o Dissemination of the information about the Partnership.
o Perform additional functions indicated by the Steering Committee.
o Prepare the EEP Calendar each year with sponsors support.
Qualifications
The Administrative Director should have at least five years experience in project’s
administration and management. He or she is required to have experience in or with
governmental institutions.

48
Framework Document
Among the capacities, competency, abilities and skills that should have the
Administrative Director are:
o A solid knowledge and understanding of financial statements and accounting
principles and policies
o Ability and skills to plan, coordinate, manage and execute plans, programs,
policies and actions aimed at the development and promotion of projects.
and represent competently the Partnership in proposals and negotiations of
International Agreements related with the program activities, as well as,
commissions and events assigned by the Steering Committee.
Other qualifications:
o Professional degree in economy, engineering or a similar field related to the
Partnership program. The Administrative Director must posses a Master’s
degree or higher.
o Knowledge of technical, economic, financial and institutional issues related to
renewable energy resources.
o Proficiency in the use of software packages.
o Must possess effective communication skills, both written and oral.
Hiring period
On a yearly basis

49
Framework Document
C. Projects Manager
General Description
The Projects Manager will be the assistant to the Regional Coordinator in the follow
up of the projects execution in the participating countries and the performance of the
consultants.
The Projects Manager will help to the Regional Coordinator on the supervision of the
development and final assessment of the projects. Each project will require preparing
a completion report when it has been finished.
Objective
The objective of hiring a Projects Manager is to support the projects in order to keep
the development and performance according to the time schedule, budget break
down and technical quality according to the Project Document.
Responsibilities
The Projects Manager has the responsibility in two areas:
o Follow up the projects, starting with the preparation of the Project Document,
execution of the projects. It is very important to mention that the Project’s
Engineer has to visit the projects; it means fieldtrips to the projects in each of
the participant countries. The fieldwork will be a significant portion of the
working time.
o To support in the administration processes of the projects executed under the
Regional Coordination Unit.
The duties and specific functions of the Projects Manager will be assigned by the
Regional Coordinator.
Qualifications
The Projects Manager should have at least three years in project’s administration and
management. He or she is required to have experience in development of energy
projects, preferably in renewable energies, knowledge of environmental sciences and
computer skills.
Among the capacities, competencies, abilities and skills that should have the Projects
Manager are:
o Have the ability and skills to plan, coordinate, manage and execute plans
related with the execution of the projects
and represent competently the Partnership in the participant countries related
with the projects, as well as, commissions and events assigned either by the
Steering Committee or the Regional Coordination Unit
Other qualifications
o Knowledge of technical, economic and financial issues related with the
execution of the projects
50
Framework Document
o Proficiency in the use of software packages
o University degree in engineering, economy or similar fields related to the
energy sector, preferably with knowledge in renewable energies.
Hiring Period
On a year basis

51
Framework Document
D. Administrative Adviser
General Objective
The general objective for the Administrative Adviser is to support the development of
the follow up, and organization activities and control of the administrative functions of
the Energy and Environment Partnership with Central America.
Major Accountabilities
Under the supervision of the EEP Regional Coordination Unit, the Administrative
Advisor will perform the following activities:
o To collaborate with the Regional Coordinator and the Administrative Director
with the EEP operation activities.
o To collaborate with the follow up of the administrative processes for the
execution of the projects administered by the EEP.
o To coordinate with the Accounting Department of SG-SICA, in order to keep
control on all the accounting registers.
o To translate technical documents related to the activities of the Program.
o To collaborate with the logistics for the regional Forums and other activities
organized by EEP
o To maintain correctly organized all the EEP’s files.
o To cooperate with any other activities organized by EEP
Results:
o To keep updated and organized all the EEP’s files.
o To translate necessary technical documents for the good EEP’s operation.
o To collaborate with all the events and activities organized by the EEP.
o To assist EEP’s staff answering for inside and outside consults related to
EEP’s activities
Functional competencies:
o Fully bilingual Spanish – English
o Intermediate accounting and financial statement analysis
o Good knowledge of Banking products and services;
o Good knowledge of Bank regulations, policies, procedures, and operations
o Strong communication skills
Hiring period
On a year basis.
Salary
EUR 1.000,00 (Thousands Euros), or according to the established budget
Terms and Suggested Mode of payment
Salary will be paid on the last working day of every month.

52
Framework Document
E. Senior Adviser
Antecedents
The Administrative and Cooperation Agreements for the Energy and Environment
Partnership with Central America (EEP), were signed in the City of Panama, on June
18, 2003, by the Secretary General of SICA, the President Protempore of CCAD and
a Representative of the Finnish Government.
The EEP’s Steering Committee recommended contracting a Senior Adviser who
assist and complement some of the activities done by the Regional Coordination Unit.
Workload Objectives
The main objectives for the Senior Adviser’s workload is to support technical aspects
for the EEP’s development, following up the project profiles and projects execution
advised for the Evaluation Team during the Steering Committee Meetings, as well as
working in related activities organized by the Regional Coordinating Office.
Major Responsibilities
Working under the supervision of the Regional Coordinating Unit, the major
accountabilities for the Senior Advisor are:
o To collaborate with the National Coordinators and local Committees, in the
EEP’s technical activities.
o In coordination with the National Coordinators, to establish contacts with
potential project developers in order to generate new proposals of projects for
EEP.
o To analyse, evaluate and recommend project profiles to be presented during
Steering Committee Meetings.
o To work as facilitator during the EEP meetings.
o To collaborate with the technical organization of the regional forums organized
by the EEP.
o To collaborate with the technical content of the Web site
o To work in other EEP related activities indicated by the Regional Coordination
Unit
Results:
o Excellent contributions in the area of technical management for the EEP’s
projects.
o Availability to work in EEP’s different issues required by the Steering
Committee, the Regional Coordination Unit, SG-SICA and the Governments of
Finland and Austria
o To collaborate with the technical organization of the meetings and capacity
building seminars organized by the EEP
Hiring Period
On annual basis

53
Framework Document
Reports
Senior Adviser will indicate in a monthly report presented to the Regional
Coordination Unit all the activities carried out during that period.
Fee
On a fee basis of EUR 150.00 per day, up to maximum monthly salary of EUR
1,500.00.
Terms and Payment Mode
The monthly salary will be paid during the next working days after presenting the
report approved by the EEP Regional Coordinator and the EEP Administrative
Director.

54
Framework Document
Annex 8: Council Conclusions on Energy and Development,
GAERC, 10 April 2006
PREAMBLE
The present principles have been elaborated in order to facilitate donor coordination
and harmonisation among the EC and its Member States but also to facilitate and
assist the partner countries in creating an adequate basis for sound and feasible
decision-making for developing the energy sector. Since national policies and
strategies, regulatory frameworks, and institutional capacity is still not fully developed
in a number of partner countries, the guiding principles could be useful for
prioritisation of support and serving as a framework or 'checklist' for preparation of
policies and strategies related to energy generation, distribution, and supply.
PRINCIPLE 1 - ENERGY AS AN ENABLING FACTOR
Access to energy services is an essential enabling factor for economic growth and for
the provision of basic living conditions for all human beings. No country has
substantially reduced poverty without massively increasing the use of energy,
replacing human and animal labour with more convenient and efficient sources of
energy and technology. A reliable and affordable supply of energy services is a
necessary input to improve productivity at all levels in rural and urban production.
Provision of energy services is not an end in itself, but an important tool for achieving
other development goals. Therefore, energy as an enabling factor for poverty
reduction requires new, innovative and crosscutting approaches to achieve adequate
answers to the needs of the poor in their efforts to escape from their present poverty.
It is understood that energy programs should contribute to achieve the MDGs and to
national policies and strategies, e.g. on poverty reduction.
PRINCIPLE 2 - ENERGY SERVICES SHOULD BE DEMAND-SIDE DRIVEN
The typically supply driven project development of the past years is to be changed
towards an effort to meet the end users' needs for energy services at all levels, i.e. for
production and supply of goods and services, for household purposes,
communication, transport, public purposes etc. It is now broadly understood that the
development of the energy sector must deal with the entire energy chain from supply
to consumption, covering commercial and non-commercial energy sources and
relevant technologies for all parts of the energy chain, with the aim of meeting end
users' multiple needs for energy services in a sustainable and environmentally
friendly manner including supply security. There is a risk that inadequate supply of
energy services may constitute a bottleneck for the development of other sectors
while, on the other hand, an integrated cross-sector approach will release important
synergies.

55
Framework Document
PRINCIPLE 3 - BALANCE UNEQUAL ACCESS TO ENERGY SERVICES
There are great disparities between different income groups and between men and
women regarding access to and use of energy services. It is estimated that more than
two billion people, mostly living in rural and peri-urban areas in developing countries,
lack access to adequate energy services for production and household purposes. A
large number of the poor or marginalised in low- and middle-income countries are still
heavily dependent on traditional energy resources, such as firewood, agricultural
residues and dung. Energy poverty has a particularly severe impact on life conditions
of women. There are major inequalities between rural and urban areas in per capita
energy consumption. The rural population consumes much less energy per capita
than the urban population and mainly from traditional energy sources. Structural
changes in rural economies by means of increased productivity and development of
new agro- or forestry-based economic activities require improved energy supply.
Both growing populations and increasing urbanization put severe pressure on

biomass resources and arable land in a fragile environment in the vicinity of urban
areas. The poor urban population will demand fuel for their stoves, often in the form of
charcoal, which is highly convenient in urban areas, but consumes more input of
wood per calorific output than the pure use of firewood. In many areas, especially in
the vicinity of towns and cities, the lack of sustainable management of wood
resources for firewood and charcoal has had a major impact. Exploitation is
exceeding sustainable levels and is causing severe environmental degradation.
PRINCIPLE 4 - FACILITATE ENERGY EFFICIENCY AND CONSERVATION
Rising oil prices, a growing awareness of energy related pollution, and the risks of
climate change have all contributed to a re-evaluation of energy use. In developed
countries, the result has been an improvement in the efficiency with which energy is
used in industry and power generations well as in lighting, household appliances,
transportation, and heating and cooling of buildings. This more efficient use of energy
is a major factor contributing to the improvements in energy intensity that have
occurred in almost all OECD countries, and more recently in many transition
countries. The same should be ensured for all energy programs and projects in LDC
and LLDC countries. Realising cost effective energy efficiency potentials will be
beneficial not only for individual energy consumers, but also for the economy as a
whole.
PRINCIPLE 5 - ACT CONSCIOUSLY REGARDING THE CHOICE OF

TECHNOLOGIES
Since the primary goals of development cooperation are poverty alleviation, the
promotion of peace and human security and the protection and preservation of the
environment but are not technology driven, donor supported programs should respect
these principles by applying a full menu of organisational and technical options, to be
tailored according to the specific situation. Choices should be made in terms of the
most economic option, taking all related costs and benefits into consideration. This
56
Framework Document
includes in the same way decentralised forms of organisation and decentralised
energy systems as well as cleaner, more efficient fossil fuel technologies, technology
for more efficient appliances and the more efficient use of traditional biomass. To
ensure environmental sustainability in the short, medium and long term projects and
programs should be screened and the applied technologies compared on indicators
such as the "Ecological Footprint" or the ecological balance for the full project lifetime.
This will often make renewable energies more attractive as the typical technology of
choice and thus promote their use.
PRINCIPLE 6 - IMPLEMENT SOCIALLY BALANCED ECONOMIC SOLUTIONS
Many consumers and governments of developing countries do not necessarily have

the means of paying the full cost for modern energy services. Projects and programs
should therefore apply financial mechanisms and tariffs that combine financial
sustainability (investment and O&M costs) with affordability of energy services to the
poor while focusing on revenue generating activities. Donors should assist in making
biomass markets work better for the poor and achieving more sustainable and energy
efficient provision. Importance should be given to help with the upfront costs of
switching to better fuels and dealing with indoor and outdoor pollution issues.
Consideration should be given to encouraging socially balanced energy policies,
including targeted subsidies for the most needy. Many energy subsidies in developing
countries still benefit a small number of well-off consumers.
PRINCIPLE 7 - SUPPORT AUTHORITIES IN CREATING AN ENABLING

ENVIRONMENT
The ongoing worldwide restructuring of the energy industry represents a window of

opportunity for ensuring that the energy-related public benefits needed for sustainable
development are adequately addressed in national development policies. Seizing this
opportunity will require strong action by authorities of developing countries to orient
and support market actors in creating sustainable energy systems that respond to
development needs. The process could be enhanced by donors to strengthen in
designing energy market and regulatory reforms adapted to development priorities
which express the global economic costs and benefits of energy choices and in
setting goals that define the performance characteristics (for example, by specifying
air pollution emission limits or minimum standards on buildings, plants, machinery,
and vehicles). In particular, these activities could include sustainability criteria such as
promoting low-carbon energy strategies and the use of CDM, long term planning
taking into account of likely higher prices for imported oil products, the future need to
reduce GHGs and the opening of energy grids to independent power producers but
under the condition that rural populations are also served. The sequencing of reform
is a key issue. Therefore, structures and mechanisms for increased access,
particularly in rural areas, must be in place at least at the same time as the initiation
of large scale market orientated reforms such as liberalisation. Capacity building of
key stakeholders in government and among non-state actors, including appropriate
information and education activities should therefore be supported to overcome
barriers and to implement favourable framework conditions.
57
Framework Document
PRINCIPLE 8 - COMBINE ACCESS TO ENERGY WITH ADDITIONAL INCOME
Access to modern energy services generally presents a high financial burden for poor
and marginalized end users. To enable economic sustainability, both at user and at
government level, access should go hand in hand with stimulation of income
generation and job creation (productive uses of energy). The cooperation with the
private sector, both large companies and SMEs, cooperatives etc., for the delivery of
energy services should anchor the scaling up of public investments since public
finance cannot meet all of these needs. Therefore, a private sector promotion strategy
and an income generation strategy for poor people should be incorporated in energy
cooperation endeavors.
PRINCIPLE 9 - INTEGRATE PROJECTS INTO NATIONAL ENERGY PLANS AND

INTO POVERTY REDUCTION AND DEVELOPMENT PLANS
Priority should be given to countries and regions having installed a clear energy policy
or are on the way in putting into force such a policy which should be based on political
ownership and commitment to integrate principles of Good Governance and to
prioritize poverty alleviation. PRSPs and bilateral donor programs should incorporate
energy as an integrated part into all related sector activities of the respective
development plans. The preparation of these plans should ensure participation in
decision-making on energy services at the levels of end user, community and
municipality.
PRINCIPLE 10 - OVERCOME LOCAL DISPARITIES WITH REGIONAL AND

CROSS-BORDER SOLUTIONS
The creation of regional energy systems can do much to expand reliable supply
through the joint development and use of locally available energy sources (such as
hydropower), better balancing of sources and uses of power and achieving
economies of scale. In many cases, rural electrification of remote areas along
national borders can be achieved more easily and more cost-effectively by connecting
with the grid of the neighbouring country. Governments should align national
strategies with such regional initiatives as the New Partnership for Africa's
Development, the Sistema de la Integración Centroamericana, the Southern African
Development Community, the Caribbean Community and the many others."

58
Framework Document

Framework Document Energy and Enviroment Partnership With Central America

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Framework Document Energy and Enviroment Partnership With Central America

Uploaded by

Copyright:

Available Formats

FRAMEWORK DOCUMENT

ENERGY AND ENVIRONMENT PARTNERSHIP WITH

Energy and Environment Partnership with Central America

Banco Centroamericano de Integración Económica - Global

Energy and Environment Partnership with Central America

1. Brief Summary on EEP, Phase One

3. Main Objective and Scope

Energy and Environment Partnership with Central America

3.2. Eligible Activities

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

15 Collaborate with CCAD /SG.SICA on regional energy policies issues

16 Looking for cooperation with another initiatives and programs

Energy and Environment Partnership with Central America

4.3. Indicative Budget, Second Phase

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

Table 1 Energy and Environment Partnership with Central America

ADMINISTRATIVE COSTS 223,752

Energy and Environment Partnership with Central America

Regional Coordination Unit:

National Coordination Units:

5.3. EEP’s Organizational Functions

Energy and Environment Partnership with Central America

The Steering Committee is responsible for the Partnership’s execution. This

Energy and Environment Partnership with Central America

The Technical Evaluation Team is a working group of the Steering Committee,

Central American Commission for Environment and Development (CCAD) will

Secretary-General of the System for the Central American Integration (SG-SICA)

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

5.4. Application to the EEP

5.5. Guidelines for EEP Project Financing Approval

Step 1 Identification of initiatives

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

Identification of initiative RC receives Project Profile to be Evaluation Team

Elaboration of Project Evaluation Team evaluates and

NCU (and RCU) Project Profile is presented during

Elaboration of Project Proposal

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

7. Monitoring and Evaluation

8. Further Development of the Partnership

Energy and Environment Partnership with Central America

Logical Framework Matrix

Energy and Environment Partnership with Central America

More participation of energy

Number of participants trained in Reports Consultants with experience

More power infrastructure in the Contracts of installation and

Energy and Environment Partnership with Central America

Energy and Environment Partnership with Central America

Annex 4: Project Profiles Form

Energy and Environment Partnership with Central America

Project Name (topic and country):

a) Organization leader data:

b) Others Group member data:

Energy and Environment Partnership with Central America

j) Project cost – Calculating the total project cost (Euros).

Energy and Environment Partnership with Central America

Please submit this form to:

Energy and Environment Partnership with Central America