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«Published by: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Evaluation Unit Dag-Hammarskjöld-Weg 1-5 65760 Eschborn Germany ...»

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Independent Evaluation of an Ongoing

Programme 2007

Energy Advisory Project, Uganda

Brief Report

Produced by: AGEG Consultants eG, Germany

This report was produced by independent external experts.

It reflects only their opinion and assessment.

Published by:

Deutsche Gesellschaft für

Technische Zusammenarbeit (GTZ) GmbH

Evaluation Unit

Dag-Hammarskjöld-Weg 1-5

65760 Eschborn


Internet: http://www.gtz.de

Eschborn, 21.12 2007

Tabular overview The evaluation mission Evaluation period 10/2007 – 11/2007 Evaluating institute/ AGEG Consultants eG, Kirchheim unter Teck, consulting firm Germany Evaluation team Dipl.-Ing. Detlef Loy, international expert Ing. Jane Nimpamya, national expert (22.10.07 – 26.10.07) Dr. May Sengendo, national expert (27.10.07 – 9.11.07) The project/programme Title of the project/programme Energy Advisory Project according to the order Project/programme number 2004.2075.2 Overall term broken down by 1. phase: 6/1999 – 5/2002 phases 2. phase: 6/2002 – 5/2005

3. phase: 6/2005 – 5/2008 Total costs Total cost of German contribution: 6,138 T€ for current promotion phase 2,050 T€ DGIS-contribution in current phase 2,000 T€ Objective of the Access to modern sustainable energy services for project/programme business and the general population, with particular emphasis on the poorer sections of society has improved.

(The goal of this phase is the same as the overall Project goal) Lead executing agency Ministry of Energy and Mineral Development - MEMD Implementing organisations Energy Department of the MEMD Other participating development DGIS and Horizont 3000 organisations Target groups Private und industrial energy consumers with the emphasis on the poor rural population in 3 districts of Uganda.

The rating Overall rating On a scale of 1 (very good, significantly better than expected) to 6 (the project/program is useless, or the situation has deteriorated on balance) Individual rating Relevance: 1; Effectiveness:1; Impact: 2; Efficiency: 1;

Sustainability: 2 Summary GTZ GmbH has appointed AGEG Consultants eG to carry out an independent evaluation of the current “Energy Advisory Project” in Uganda. The evaluation was carried out by Detlef Loy (International Consultant) together with Mrs. May Sengendo and Mrs. Jane Nimpamya who acted as local consultants. Before work started on the project an Inception Report was produced and this was based on project documentation and was also in accordance with the service specification. The evaluation in-country took place between October 22nd and November 11th 2007 and comprised, in addition to consultation with GTZ team members, interviews with project partners and representatives of other agencies. These interviews were held in the national capital Kampala and in various other districts of the country in which the project is active. The interviews were supported by an appraisal of the project results. In addition, the contents of many project documents and other background material were considered during these interviews.

In order to cover its energy requirements, Uganda is largely reliant on the use of predominantly non-sustainable biomass (wood), which results in ongoing deforestation.

Outside of the towns and cities the electricity network coverage is extremely patchy so that basic energy services, such as lighting, have to be provided using simple petroleum-based lamps. At the same time, it must be noted that the use of both biomass materials as well as of other combustible materials and of electricity in general is extremely inefficient. The use of wood-fire based methods of cooking in both private households and by institutional organisations means that there is not just a constantly rising amount of work needed to collect the wood, or else constantly rising costs involved in purchasing the wood for the fires, but there is also a range of health problems associated with the procurement and use of wood in fires (the core problems).

The “Energy Policy Consultation Project” was designed and started in 1999 at a time when the entire Ugandan energy economy, and especially the electricity supply sector, was in a state of collapse (there was step-by-step privatisation and liberalisation of the market). The Department of Energy in the Ministry of Mining and Energy was chosen to be the national state partner in this project and this Department was at that time also going through a phase of development and decision making on locations for projects to be carried out. The original project goal was conceived as follows,: „The Energy Department (ED) is fulfilling its functions of policy development, planning, co-ordination, the provision of information, monitoring and evaluation in an efficient and effective manner." The project performed some valuable work in supporting other agencies during these initial years, especially providing institutional support, helping to support the personnel and to improve the market positions of the partner organizations. The project gave rise to many strategic developments in the field of energy politics and thus contributed to setting the future course in establishing medium and longterm goals in achieving consensus within the framework of a participatory approach.

During the third phase of the project, which commanded the focus of attention during the evaluation stage, the project’s work was concentrated on the efficient use of biomass fuels, the increasing of energy efficiency in the industrial, commercial and private sectors, as well as on the widespread introduction of technologies for the use of renewable energies in a decentralised system of power generation. The overall goal of the project as well of this third phase was agreed as being: „Access to modern sustainable energy services for the economy and the population with special attention to the poorer sections of society is improved.”“ For this purpose, the project received funding from the Dutch DC, in addition to that provided by the German contribution. The indicators, which are predominantly defined in terms of quantity, form only part of the desired project outcomes in terms of policy consultation and qualification. On the whole, the design of the project does accord with meeting the needs on the ground, the goals set were realistic and attainable in view of the means and experience available.

The project intervened in a targeted way in the technical implementation of goals, especially at the macro and meso-levels. Tangible results of this approach include the setting up of political strategies for developing energy efficiency and renewable energies. These provide the Government with guidelines and target orientations for future policies and may also serve as models for other governments in the region. In the initiatives for general publicity work around the subject of rational energy use we worked in close collaboration with the Energy Ministry. The previous loose arrangement of agencies involved in providing sustainable energy for the Country was viewed very critically, as was the comparatively minor participation of political partner institutions in the implementation of technologically based measures to meet the country’s sustainable energy needs.

Arising from the work of the project, a closely integrated monitoring system for energyefficient fires and ovens was set up under which a minimum standard of quality was agreed for all new fires and ovens, even in the most remote regions of the Country. The project has played an active role in harmonizing services in the field of energy provision performance with those provided by other donor organizations. Critical preliminary work was also carried out in preparation of a new project which will, for the first time be carried out in a close partnership between TC and FC.

Commercial initiatives aimed at opening up a decentralised system of electricity generation for private consumers were supported during the market development process and through the expansion or establishment of new areas of business through such measures as the development of PPP agreements. At the same time local micro-financing institutions were brought into the project in order to remove some of the obstacles to making the high levels of initial investment required. The initial progress which we have made in this field of start-up investments, which we only began to tackle at the beginning of 2007, may also be described as being very encouraging. Equally successful have been the results which we have so far achieved using photo-voltaic cells to generate electricity for institutional customers (especially health services providers). Co-operation with regional district government authorities has been particularly constructive in this area. Preliminary work in the field of vocational skills training has been of particular benefit here. Amongst its other successes, the project has been able to facilitate, through the continuing education of specialist teachers and the equipping of vocational schools with teaching and visual aids, the introduction into national teaching curricula of a module on solar power generation.

With respect to “industrial and commercial energy efficiency“, we were able to increase the awareness of businesses for the need to make improvements in energy efficiency. This was achieved primarily through the consultation work carried out by members of staff at the Ministry, by independent experts and by knowledge transfer approaches. As part of this work, specialists from India were involved in the further education activities and they were able to take part in an exchange of experiences on the level of one country of the Southern developing world to another. This greatly facilitated the application of experience gained in Uganda to other comparable situations. In addition, and as a result of some of the consultation exercises which were carried out, new technological solutions were discovered over the course of pilot projects, which may well serve as models for other businesses which find themselves in a similar position.

The performance of project agencies and implementation partners was developed by, amongst other measures, promoting the growth of the numbers of staff members in the Department of Energy and in training measures designed to increase the levels of energy consultation carried out in the industrial and commercial sector. In order to implement the subsidiary aims of creating “energy-efficient fireplaces and ovens,” the emphasis was predominantly placed on creating partnerships with existing non-governmental organisations and in helping them to achieve the required qualifications. In doing this, technical expertise was transferred in a graduated process at the level of the users and design engineers. In addition to these measures, other partners from the state sector and the non-state sector were supported by the project in the fulfillment of their roles.

The project goes a long way to meeting the national goals as they are set out in the government‘s plans for combating poverty and for the development of the crucial energy sector. The project’s relevance was assessed as being very good, (Level 1). The improvement in the energy supply and the protection of resources now occupy a key position in energy policy and these issues are now widely discussed in other fields of activity. The aims of the project also accord very well with the specifications of the BMZ in its focus on energy. Since 2007 energy supply has also been one of the three main areas of focus for which DC was agreed with Uganda. The close linkage of the project with current difficulties in the field of energy provision and the goal-oriented focusing of the project on eliminating deficits and discrepancies underlines its relevance. This is confirmed by the involvement of other donors in this field and by the decision to continue along these lines in setting up a new project.

In spite of the limiting of the implementation of the plan to selected districts, there has been a significant increase, especially of energy efficient cooking fires across rural areas which has far succeeded all expectations. We therefore assess the project’s effectiveness as being very good, (Level 1). Up until the middle of 2007 the project was successful in providing, with very modest financial means, around 300,000 cookers in private households. There were also significant increases in the numbers of sustainable commercial ovens, especially in rural and peri-urban areas, which were outside of the project’s original target areas. In total we can safely say that most of the project’s targets will be reached by the end of the project (May 2008) and will be in most cases exceeded by a considerable margin.

According to internal evaluations carried out by the GTZ, the use of wood has therefore clearly decreased by 50% whilst at the same time the harmful side-effects of reliance on wood for fuel, as well as the physical work expended in order to procure it and the financial expenses involved (health care costs) were also significantly reduced. The impact of the project was assessed as being good (Level 2). The project has therefore made a significant contribution to the problem of maintaining the forest cover and has helped to reduce the potential for conflict over the procurement of wood. The threshold to the establishment of a functioning market in solar electricity generating equipment was also crossed for the first time. Basic electricity supply contributes significantly to improving the quality of life in rural areas and also helps to stem the flow of migration to the cities. Increasing electricity efficiency also helps to relieve state finances and balances of trade. In all we may assume that the spreading out of the measures undertaken in this project to a wider geographical area will lead to many other indirect results.

With only a relatively modest use of resources, the project was able to far exceed, even before the end of the third phase, most of the quantitative indicators which had been set.

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