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Technical Assistance to the GCCA Climate Support Facilityunder the 10th EDF Intra-ACP Financial Framework

Work Order 29

Private sector engagement in resilience building to climate change in Pacific Island Countries

Resource Text Documentfor ACP Secretariat and European Commission

Field Mission from 23 July 2013 to 8 August 2013

Dr. Scott K. CunliffePrivate Sector and Climate Resilience Advisor

Quality Control : Manuel Harchies

12 August 2013

Consortium SAFEGE-Prospect-ADETEF-Eco – Gulledelle 92, 1200 Brussels, BELGIUM

Climate Support Facility – WO29 – Resource Text Document

Contents

Section 1. Summary of Tasks and Work PlanContext and JustificationObjectivesFive Specific tasksOutputsWork PlanClimate Support FacilityCoordination and Supervision

Section 2. PPCR objectivesObjectives of the SPCR

Section 3. Original Work Order #29Private sector engagement in resilience building to climate change in Pacific Island Countries

Section 4. PROPOSALSI. SOLAR WATER PURIFICATIONII. COCONUT BIOFUEL PRODUCTIONIII ENERGY PRODUCTION FROM WASTE (tyre recycling)IV. ORGANIC WASTE RECYCLING (sustainable fertilizers and

renewable energy)V. SUSTAINABLE BUILDINGSVI. Solar Hydro Village Energy

Section 5. PRIVATE SECTOR COMPANY INFORMATIONI. SOLAR WATER PURIFICATION - F-cubed

II. COCONUT BIOFUEL PRODUCTIONIII. ENERGY PRODUCTION FROM WASTE (Samoa Tyre Recycle

Limited, Pacific Energy Solutions)

IV ORGANIC WASTE RECYCLING (sustainable fertilizers and renewable energy)

V. SUSTAINABLE BUILDINGS (Natural Foods International)VI. Solar Hydro Village Energy (Solar Samoa Ltd)

Section 6. Private Sector and the Pilot Program for Climate Resilience

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Section 1.

Summary of Tasks and Work Plan


DRAFT for Discussion Scott Cunliffe 15 July 2012

Context and Justification private sector is often raised as a key partner for building resilience to climate

change private sector is also a driver to small islands development support livelihoods, sustainable development and reduce poverty f Pacific private sector has generally low capacity compared to other regions.

SPREP to lead on private sector (strengthening capacity to engage in climate change adaptation and mitigation activities.

CIF and PPCR1 - three pilot countries (PNG, Samoa, and Tonga) and a regional pilot

regional component supports the SPCR (approved 30 April 2012) The Pacific Regional SPCR (will be delivered through Council of Regional

Organisations of the Pacific) and i. Component 1: Mainstreaming Climate Change Adaptation and Disaster Risk Reduction;

ii. Component 2: Identifying and Implementing Practical Climate Change Adaptation and Disaster Risk Reduction Knowledge and Experiences; and

iii. Component 3: Building and Supporting Pacific Developing Member Countries Capacity to Respond to Climate Change Risks2.

PPCR - competitive funding window to engage private sector3 implemented by the MDBs

Applications close on 15 August, 2013 Aligned with three of five GCCA priority areas:

1 PPCR objectives are to: (i) pilot and demonstrate approaches for integration of climate risk and resilience into development policies and planning; (ii) strengthen capacities at the national levels to integrate climate resilience into development planning; (iii) scale-up and leverage climate resilient investment, building upon other on-going initiatives; (iv) enable learning-by-doing and sharing of lessons at the country, regional, and global levels; and (v) strengthen cooperation and capacity at the regional level (CIF, 2009, Guidance Note on PPCR Regional Programs).2 Asian Development Bank (ADB) will administer Components 1 and 3, while the World Bank (WB) will lead the administration of Component 2.3 US$70 million has been set-aside for this purpose.

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1) mainstreaming climate change into poverty reduction and development efforts – through enhancing private sector engagement and involvement, 2) adaptation – by fostering private sector engagement and ownership of adaptation measures in the region, and 5) disaster risk reduction – by increasing private sector participation in joint national action plans for disaster risk reduction and climate change adaptation.

ObjectivesGeneral: To assist the Pacific regions’ private sector engagement in climate change adaptation and mitigation activities to build resilience;

Specific: To assist SPREP in developing a project proposal to the PPCR process under the CIF to deliver resources for a regional programme for the Pacific aimed at strengthening the private sector engagement in activities associated with reducing countries’ exposure to climate risk and uncertainty.

Five Specific tasks1. Proposal arrangements

Collect all the necessary resources needed for developing the proposal (see https://www.climateinvestmentfunds.org/cif/set-aside/ppcr).

2. Private Sector OpportunitiesAssess the private sector in the Pacific: i) opportunities and needs; ii) innovative programs and project activities; iii) reducing exposure to climate risk

3. Draft Proposal SPREP mission coordinator:

i) advance PPCR objectives4 and ii) objectives of the SPCR5

4. WorkshopsRegional consultation, review draft document, approval:

one-day workshop regional consultation (to review the draft document) collect and incorporate comments from reviewers, final for PPCR

5. PPCR RequirementsProposal meets the evaluation requirements PPCR:

o Level of innovation; o Implementation feasibility; o Progress achieved implementing the SPCR

6. Final ProposalSubmit final proposal to SPREP mission coordinator (before 15 August).

4https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_design_Document_final.pd5http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/ PPCR_7_Strategic_Program_for_Climate_Resilience_Pacific_Regional_Track.pdf

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http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience_Pacific_Regional_Track.pdf


https://www.climateinvestmentfunds.org/cif/set-aside/ppcr


Outputs1. Analysis

an analysis of what private sector organizations are ready to engage on climate change

2. Proposala detailed proposal for submission to SPREP for submission to the PPCR

3. ReportMission report, including inputs and outputs of regional workshop and participants’ evaluation of the workshop

Work Plan

Tasks & Milestones Dates Responsible

Preliminary start-up (arrange travel, confirm, documentary research, initial contact stakeholders)

Mon 8-12 July (p/t) Scott Cunliffe (SC), Manuel Harchies (MH), Espen Renneberg (ER), Maxime SZAMBIEN (MS)

Home based investigations Mon 15 July to 23 July SC, ER

Travel days x 3 (cheapest available economy, restricted fare – 1.5 days each way)

Tues 23-24 July8 and 10 August

Bangkok-Auckland-ApiaApia-Auckland-Melb-Bangkok

Summary TOR and work plan Mon 15 July SC

Draft Outline of Proposal Fri 19 July SC, ER

Stakeholder Workshop Planning (tentative) 25-29 July ER, SC

Stakeholder Workshop (tentative) Tues 6 August ER, SC

Chamber of Commerce and Stakeholder meetings (Suva, Fiji, tentative)

Thurs 1-2 August ER, SC

Labor Day First Monday in August Monday 5 August ALL

Draft Final to SPREP (SC dep Samoa) Wed 7 August SC, ER

(non-work time) Thur 8-11 August SC

Report Writing (home/away) and debriefing (Brussels) (3 working days)

Mon 12-14 August SC, MH, others?

FINAL SUBMISSION (to PPCR-SC) THURS 15 AUGUST SPREP, MDB?

Preparatory phase: Home-based (7 working days) Prepare work plan Documentary resources compilation Start Proposal arrangements, private sector opportunities, outline of draft

proposal

In-country – Samoa: (10 working days)5


Draft Proposal Workshop(s) Draft Final Proposal

Report Writing (home/away) and debriefing (Brussels) (3 working days) submission of the Mission report (ACP Secretariat) debriefing by telephone / Skype.

International travel (3 working days) cheapest available economy, restricted fare 1.5 days each way

Climate Support Facility Financial support for the review workshop (1 day / 14 participants, to be provided

by the Climate Support Facility (CSF)

Payment to Consultant in first invoice Euro 860 for workshop(s)

To be provided by the Beneficiary All relevant resources on climate change, background documents and, contact

points in Pacific countries and organizations

Organising the venue and logistics in-country for the review workshop (including booking room and providing logistic material such as computers, IT equipment, coffee/lunch break, printing facilities)

Selection (in coordination with the Expert) and invitation of relevant key participants to the review workshop

Provide transport for the Expert for travelling from hotel to venue where the workshop is held and also for travelling outside the workshop location and for consultation with key stakeholders, as needed.

Coordination and Supervision This will be done through the SPREP Climate Change Division, with Espen

Ronneberg, Climate Change Adviser as the focal point, who will be in regular communication with the expert as required.

Further advisory support would be given by the Division, including Dr Netatua Pelesikoti, Director.

Contact details: [email protected] and [email protected]

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mailto:[email protected]



PPCR objectives6

II. PURPOSE AND OBJECTIVES7

2. Pursuant to the terms of the SCF Governance Framework Document, PPCR will be established under the SCF as a SCF Program. The terms set out hereunder will supplement the terms of the SCF Governance Framework Document in respect of the operations and activities of the PPCR. Capitalized terms appearing herein, but not otherwise defined, shall have the same meaning as that ascribed to them in the SCF Governance Framework Document. In the event of any conflict between any provision of this document and any provision of the SCF Governance Framework Document, the provisions of the SCF Governance Framework Document will prevail.

3. The objective of the PPCR is to pilot and demonstrate ways to integrate climate risk and resilience into core development planning, whiles complementing other ongoing activities. The pilot programs implemented under the PPCR should be country led, build on National Adaptation Programs of Action and other relevant country studies and strategies, and be strategically aligned with the Adaptation Fund and other donor funded activities to provide pilot finance in the short term so as to learn lessons that will be useful in designing scaled up adaptation financing.

4. The PPCR aims to contribute to achieving the objectives of the SCF by seeking to provide incentives for scaled-up action and transformational change in integrating consideration of climate resilience in national development planning consistent with poverty reduction and sustainable development goals.

Objectives of the SPCR8

This SPCR will achieve ―transformational‖ change by supporting more effective integration of CCA and related DRR to enable Pacific island countries to become resilient to climate change and climate-related disasters.

The overall outcome of the SPCR will be to improve participating countries‘ resilience to climate change and climate-related disasters through strengthened capacity, increased knowledge and information, and better access to finance and technical support to address CCA and DRR.

The SPCR will address key barriers to this transformation in Pacific island countries, including limited capacity and effective coordination mechanisms at all levels, limited knowledge and technology, limited finance, and challenges in accessing climate change financing.

Based on PPCR guidelines, the regional SPCR focuses on activities that are relevant to the region and best implemented on a regional basis. These include providing support to Pacific island countries, including pilot countries, in the form of advice and information, training, regional mentoring and monitoring, coordination, and helping to share lessons learned and best practices. It will also promote replication, scaling-up, and leveraging of potential and critical investments.

Three components as follows:

6 https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_design_Document_final.pdf7 THE PILOT PROGRAM FOR CLIMATE RESILIENCE FUND UNDER THE STRATEGIC CLIMATE FUND, Climate Investment Funs, December 2011, p. 3.8 http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience _Pacific_Regional_Track.pdf

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http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience%20_Pacific_Regional_Track.pdf

http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience%20_Pacific_Regional_Track.pdf


Component 1: mainstreaming CCA and related DRR into national and local development policies and plans. This will enable countries to collect knowledge and analyze and evaluate it, and identify best models and methodologies for replication and scaling-up.

Component 2: identifying and implementing practical CCA and related DRR knowledge and experience. Regional experts will be deployed into selected Pacific island countries to guide the integration of CCA/DRR into sectoral plans, focusing on infrastructure development (coastal, including physical planning/water) and food security (food production/oceanic fisheries).

Component 3: building and supporting Pacific Island Countries‘ capacity to respond to climate change risks. A network of experts will be established under a regional technical support mechanism (RTSM) to provide on-demand advice and capacity building in CCA and DRR in all 14 Pacific island countries. This service will be particularly important for the smaller countries with the most severe capacity constraints.

Component 1

Mainstreaming Climate Change Adaptation and Disaster Risk Reduction into National and Local Development Policies and Planning

Lead Agency: This component will be led by the Secretariat of the Pacific Environment Programme (SPREP).

Objectives

The overall objective is to increase the climate resilience of Pacific island countries by strengthening their capacity to mainstream climate change and related disaster risks into development planning processes, policies, and plans. The specific objectives are to

o mainstream integrated CCA and related DRR considerations into sector planning processes, decision making, and resource allocations linked to national development planning processes;

o develop tailor-made tools for mainstreaming CCA and related DRR specific to each participating country and target sectors;

o build awareness and understanding of climate drivers, climate variability, and climate change consequences and impacts, and the role of these in adaptation and disaster risk management to underpin mainstreaming;

o build capacity in the use and application of CCA and related DRR tools; and strengthen institutional arrangements and policy support for mainstreaming at the sector level linked to national development processes.

Component 2

Identify and Implement Practical Climate Change Adaptation and Disaster Risk Reduction Knowledge and Experience

Lead Agency: Two agencies will lead component 2, the Secretariat of the Pacific Community (SPC) and the Pacific Islands Forum Fisheries Agency (FFA).

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Objectives: The overall objective is to improve the use of local, national, and regional knowledge and information on CCA and related DRR in order to strengthen the capacity of Pacific island countries to manage climate change risks to food security and critical infrastructure.

Specifically, component 2 aims to build and strengthen the national capacity of all participating Pacific island countries to understand and implement an integrated CCA and related DRR approach in key sectors. This will be achieved by helping them access, analyze, and manage the essential information, and develop and implement JNAPs or their equivalent to enable effective CCA decision making. Activities under this component will also assist in building competencies in the use of appropriate management tools. These will respond to climate risks associated with coastal zone management, drinking water resources, agriculture, and oceanic fisheries. The activities will underpin the JNAPs or equivalent being developed through Component 1.

Component 3

Building and Supporting Pacific Island Countries’ Capacity to Respond to Climate Change Risks

Lead Agency This component will be led by the Pacific Islands Forum Secretariat (PIFS).

Objective: The overall objective is to develop a regional technical support mechanism (RTSM) that would support and strengthen countries‘ capacities to respond effectively to climate change risks in the context of national development priorities.

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Original Work Order #29

Work Order 29


Context and Justification

Within the context of the UNFCCC negotiations, the role of the private sector is often raised as a key partner for building resilience to climate change. The private sector is also a driver to small islands development. Thus building their capacity to respond to climate change risks are important as it support livelihoods, sustainable development and reduce poverty for both women and men. Nevertheless the Pacific private sector has generally low capacity compared to other regions.

The Secretariat of the Pacific Regional Environment Programme (SPREP), the lead agency coordinating climate change in the Pacific has been asked by Member countries, other agencies and private sector organizations to assist with strengthening capacity in the private sector to engage in climate change adaptation and mitigation activities.

The global Climate Investment Funds (CIF) - Pilot Program on Climate Resilience (PPCR) was established to provide climate change resources to 18 countries and 2 regions globally. PPCR objectives are to: (i) pilot and demonstrate approaches for integration of climate risk and resilience into development policies and planning; (ii) strengthen capacities at the national levels to integrate climate resilience into development planning; (iii) scale-up and leverage climate resilient investment, building upon other ongoing initiatives; (iv) enable learning-by-doing and sharing of lessons at the country, regional, and global levels; and (v) strengthen cooperation and capacity at the regional level (CIF, 2009, Guidance Note on PPCR Regional Programs). The Pacific PPCR comprises three pilot countries (Papua New Guinea [PNG], Samoa, and Tonga) and a regional pilot to be initially implemented in two or three selected countries. The Pacific regional component support implementation of the Strategic Program for Climate Resilience (SPCR) for the Pacific Region, which was approved by the PPCR Subcommittee on 30 April 2012. The Pacific Regional SPCR has three components, which will complement and reinforce each other and will be delivered through existing regional organizations (Council of Regional Organisations of the Pacific [CROP] agencies) and mechanisms: (i) Component 1, Mainstreaming Climate Change Adaptation and Disaster Risk Reduction; (ii) Component 2, Identifying and Implementing Practical Climate Change Adaptation and Disaster Risk Reduction Knowledge and Experiences; and (iii) Component 3, Building and Supporting Pacific Developing Member Countries Capacity to Respond to Climate Change Risks. Africa Development Bank (ADB) will

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administer Components 1 and 3, while the World Bank (WB) will lead the administration of Component 2.

The PPCR has a new competitive funding window to enable financing for innovative programs and projects that engage the private sector in activities associated with reducing countries’ exposure to climate risk and uncertainty. US$70 million has been set aside for this purpose. Projects are to be implemented by the CIF Partners (MDBs, including WB, IFC and ADB). Applications close on 15 August, 2013. SPREP therefore seeks to engage a specialist to assist in the development of a project proposal to the PPCR. The proposal aligns well with the 5 GCCA priority areas, namely 1) mainstreaming climate change into poverty reduction and development efforts – through enhancing private sector engagement and involvement, 2) adaptation – by fostering private sector engagement and ownership of adaptation measures in the region, and 5) disaster risk reduction – by increasing private sector participation in joint national action plans for disaster risk reduction and climate change adaptation.

Description of the Assignment

Objectives:

General objective : To assist the Pacific regions’ private sector engagement in climate change adaptation and mitigation activities to build resilience

Specific objective : To assist SPREP in developing a project proposal to the PPCR process under the CIF to deliver resources for a regional programme for the Pacific aimed at strengthening the private sector engagement in activities associated with reducing countries’ exposure to climate risk and uncertainty.

Specific tasks:1. Review and fully understand the parameters set out for developing proposals

under the Pilot Program for Climate Resilience (PPCR) (see https://www.climateinvestmentfunds.org/cif/set-aside/ppcr). Collect all the necessary resources needed for developing the proposal

2. Assess the private sector in the Pacific region in order to identify opportunities and needs to engage the sector in innovative programs and project activities associated with reducing countries’ exposure to climate risk and uncertainty

3. Develop a draft proposal and discuss with the SPREP mission coordinator. The proposal should meet the requirements set-out under the PPCR, including that the proposal should: advance the PPCR objectives found in the PPRC design document9 and the objectives of the Pacific region’s Strategic Program for Climate Resilience (SPCR)10

4. In consultation with the SPREP mission coordinator, organise a one-day workshop to conduct a regional consultation between SPREP, other agencies and selected country representatives identified by the SPREP mission coordinator to review the draft document. Collect and incorporate comments

9 https://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_design_Document_final.pd10 http://www.climateinvestmentfunds.org/cif/sites/climateinvestmentfunds.org/files/PPCR_7_Strategic_Program_for_Climate_Resilience_Pacific_Regional_Track.pdf

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https://www.climateinvestmentfunds.org/cif/set-aside/ppcr


from reviewers. Obtain approval for a final draft document and ensure that it is written within the required proposal writing format set out under the PPRC

5. Ensure that the proposal meets the evaluation requirements as set out under the PPCR, including: Level of innovation; Implementation feasibility within 9-18 months after funding approval by the PPCR Sub-Committee; Progress that has been achieved in implementing other projects under the endorsed SPCR

6. Perform in-depth editing and final quality control review. Submit final proposal to SPREP mission coordinator for submission to PPCR within the specified deadline.

Outputs to be delivered: An analysis of what private sector organizations are ready to engage on climate

change A detailed proposal for submission to SPREP for submission to the PPCR Mission report, including inputs and outputs of regional workshop and participants’

evaluation of the workshop

Organisational and Methodological issues

Place: Home-based and at least one regional consultation between SPREP, other agencies and selected country representatives.

Duration & Indicative Planning11: A submission is needed by 15 August 2013, therefore a final version of the proposal should be ready and handed to the SPREP mission coordinator by 10 August 2013

The assignment should start as soon as possible after approval of the Work Order and in consultation with the mission coordinator who will coordinate and supervise the mission on the ground.

Preparatory phase: Home-based (7 working days)

- Prepare a work plan including preparations for in-country mission, in consultation with the mission coordinator

- Start tasks 1, 2, and outline of draft proposal (task 3). Analyse key documents collected and those provided by the mission coordinator

In-country – Samoa: (10 working days)

- Complete tasks 1 – 3- Carry-out tasks 4, 5 and 6

11 If there is a justifiable need for the consultant to continue working during weekends and/or public holidays, an agreement on this matter can be arranged. The agreement will be based on a written request (e-mail) from the consultant to CSF and a written positive reply (e-mail) from CSF to the consult, cc BBSC members.

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Report Writing (home/away) and debriefing (Brussels) (3 working days)

The debriefing will take place after submission of the Mission report and all relevant documents, in consultation with the ACP Secretariat. If the Expert is not based in Brussels, the debriefing may be done by telephone or via Skype.

International travel (4 working days)

Travel in the country/region (to be specified by the mission coordinator)

Inputs required

1. To be provided by the Climate Support Facility (CSF)

One Non-Key Senior Expert – Project Writer/Advisor: 24 working days; one return ticket to Samoa (Samoa - Europe); per Diems (14 x Samoa => €)

Consultant’s profile:Master’s degree (PhD Preferred) in Environmental/Natural Resources Management, Environmental Policy/Governance or Communication, Technical Writing or a related field - Solid understanding and at least 5 years extensive experience of working

on natural resources or environmental management, policy and governance; environment or climate change policy, with a strong focus on management, communication and/or writing project proposals - preference for experience in ACP countries

- At least 8 years demonstrated proposal/technical writing experience- Demonstrated strong written and oral communications skills; attention to

detail and ability to work within tight deadlines- Proficient in the use of Microsoft Office, such as Microsoft Word,

PowerPoint including template design- Strong interpersonal and analytical skills, flexible, ability to interact with

technical experts, management and others at different levels- Familiarity with writing project proposals within the international context,

particularly with a focus on environment, climate change or related field would be an added advantage

- Excellent written and spoken English

The CSF will cover the following costs related to the workshop, including room rental and other miscellaneous costs (hardware, equipment, coffee breaks and lunch break, printing meeting documents)

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Financial support for the review workshop (1 day / 14 participants)

The working language and report writing will be English.

2. To be provided by the Beneficiary :

All relevant resources on climate change, background documents and, contact points in Pacific countries and organizations

Organising the venue and logistics in-country for the review workshop (including booking room and providing logistic material such as computers, IT equipment, coffee/lunch break, printing facilities)

Selection (in coordination with the Expert) and invitation of relevant key participants to the review workshop

Provide transport for the Expert for travelling from hotel to venue where the workshop is held and also for travelling outside the workshop location and for consultation with key stakeholders, as needed.

Coordination and Supervision

This will be done through the SPREP Climate Change Division, with Espen Ronneberg, Climate Change Adviser as the focal point, who will be in regular communication with the expert as required.

Further advisory support would be given by the Division, including Dr Netatua Pelesikoti, Director.

Contact details: [email protected] and [email protected]

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Section 4. PROPOSALSI. SOLAR WATER PURIFICATIONII. COCONUT BIOFUEL PRODUCTIONIII ENERGY PRODUCTION FROM WASTE (tyre recycling) IV. WASTE RECYCLINGV. SUSTAINABLE BUILDINGSVI. Solar Hydro Village Energy

=========================================================================

I. SOLAR WATER PURIFICATIONEstablish a 50 / 50 joint venture company between F Cubed Australian and Kew Consultant Ltd principle Mr Latu Saulutoga Kupa. ( being Negotiated )

The JV company will be responsible for :

1. The Sale and distribution of Carocell Direct Solar Desalination / Purification Panels.2. The establishment of 2 desalination/salt production water farms of 1 HA each site.

1 located on the island of Upolu and the other on the island of Savai’i

Sales & Service of panels(i) Micro finance .

Through a $1million low interest loan facility to SPBD microfinance for the support of local sales of 2500 Carocell 3000 units to individual houses holds and communal Village water Supply in Samoa. A MOU has been Exchanged with SPBD.

(ii) Other direct sales to customers .

Water / Salt Farms Production

Two 1 HA water farms to for the production of pure water and Salt through the processing of Seawater to Zero liquid discharge.

1 Water farm of 1 HA located on Upolu ( area required 2 HA)

1 Water farm of 1 HA located on Savaii ( area required 2 HA)

Volumes for a 1 HA water farm per day

Processing sea water

Producing 53,000 Ltrs of pure water per day ( based on Solar radiation of 20 Mj/m2/day)

Rain water harvesting 70,000 ltrs per day ( based on 2555mm rain fall per year)

Annual Salt production 735 Tonnes/ per/ Annum

COMPANY REVENUE PROJECTIONSBottled Water Sales

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5% people = bottled water 3 ltrs / per person per day30,000ltrs / day / 20 ltr = 1500 Bottles per day @ us$2.00 Wholesale = $3000.00 Gross per Day A$1,095,000.00 per annum

Supply High Quality Bulk WaterProduction per HA + Rain water harvesting = 123,000 ltrs per day2 x 1 HA water farms = 246,000ltrs – 30,000lts bottled water = 216,000 ltrs perday216,000 ltrs per day = 79 mega litres per year @ $2,000.00 = A$158,000.00 Gross rev( 500 ltrs per day for 432 households) ( 2000 people)

Salt Production

Sale of Salt 1470 Tonne @ $150.00 = $220,500.00

ANNUAL GROSS INCOMEBottled Water ( 20 ltr units) $1,095,000.00Bulk Water Supply 79 Megs $ 158,000.00Sale of Salt $ 220,500.00

Total Gross Income $1,473,500.00

PANEL SALES2 Options(i) 1000 Panels through Micro Finance(ii) 2500 Panels through Micro Finance

Sales of Carocell units: in USDRetail : 1st Year Sales Plan ( Min – Max)(i)1000 Microfinance+ 500 Retail from JV Total 1500(ii)2500 Microfinance + 500 Retail From JV Total 3000

Selling price $400.00CIF Cost + 15 % ( Vagst)$270.00 + $40.50 $ 310.50 + installed cost

Gross profit $89.50 per Carocell unit

REVENUE SUMMARYRevenue

(i) Sale of Carocell units 1500 x $89.50 $ 134,250.00(ii) Sale of Carocell Units 3000 x $89.50 $ 268,500.00

Bottle water sales $1,095,000.00Bulk Water Sales $158,000.00Sale of Salt $220,500.00

GROSS REVENUE ON SALES (i) 1,607,750.00(ii) 1,742,000.00

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Note all figures are in USDEmployment:

General Manager 1 30 k

Admin Manager 1 10k

Admin Assistant 1 10k

Logistics Manger 1 4 k

Assistant 1 4 k

Salt Farm

Farm Manager 2 10 k

Production 4 4 k Salt harvesting and Bottling

Sales Person 3 30 k ( 1 water , 1 salt , 1 Panels)

Panel Installers 2 8 k

TOTAL 16 people average salary 100 K

SAMOA WATER AND SALT COMPANY SUMMARY

Establish Joint venture with local partner currently in discussions with Kew Consult Ltd. Sale of panels /operating the water farms/ logistics.

Organise mirco finance for SPBP US1million revolving for finance of 1 panel per household and micro entrepreneurs for small water sales.

Establish 2 x 1 HA Water Farms

Bottle water sales wholesale

Bulk Water Supply

Salt Production

US $3.0 Million loan from SPCR

Employ 16 people in Samoa. Total Loan Sought from SPCR US $ 4.0 Million

THE DRAFT MOU BETWEEN F-CUBED AND THE MICROFINANCE INSTITUTION SPBD IS ENCLOSED BELOW.

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II. COCONUT BIOFUEL PRODUCTION

PPCR SUBMISSION

Utilisation of senile coconut palms for green energy, fossil fuel substitutes and other export products.

Background

The Pacific islands abound in large areas devoted to coconut plantations that were planted in colonial times. These are unproductive, largely abandoned and occupying large tracts of potentially useful land. Pacific islands are largely dependent on fossil fuels for energy. In the case of Samoa some 40 million L of diesel are imported annually. Of this approx. 55% is used for electricity generation. Additionally some 23 million L of gasoline are imported mainly for vehicular fuel. There are current developments aimed at substituting diesel by solar but biomass power is a necessary adjunct to ensure minimization of diesel used for electricity. There are no current significant developments in replacing gasoline/diesel transport fuel except some low-level addition of expelled coconut oil to diesel vehicles up to a 10% proportion.

Objectives

1. Provide a gasoline/diesel substitute that can be used by transport and industry;2. Provide excess energy for the electricity grid (syngas and heat exchange);3. Provide a waste solid (activated carbon) that possesses significant export potential plus

ash for local soil amelioration

Impacts

1. The environmental impacts are significant. Fossil fuel pollution (GHG) will be significantly reduced by a neutral carbon cycle

2. The macroeconomic impacts target the balance of payments and foreign exchange savings from reduced import of fossil fuels ever increasing in price

3. The socio-economic impacts relate to increased rural employment, re-utilisation of hitherto defunct productive land adding to GDP enhancement and rural poverty alleviation

The Process

Green Distillation Technologies in Australia have taken the pyrolysis process to the next stage. Normal fast pyrolysis produces syngas, bio-char and a liquid fraction known as bio-oil. Unfortunately bio-oil cannot be directly used as a hydrocarbon because of high intrinsic chemical moisture content and high oxygen compound content. GDT has successfully proven through its patented process production of a usable oil from EOL tyres and cotton waste. GDT has expended considerable corporate funds plus Australian Federal grants in achieving this signal leap in development. This is a validated technology and currently in operation.

Re-engineeringThe overarching aim of this Project is to re-engineer the basic GDT process to determine whether similar results can be achieved using whole coconut palms. This includes the trunk,

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roots, fronds, nuts, husk, etc. It is to be remembered that in senile plantations the proportion of nuts in the total weight of palms will be insignificant. Thus the aim is to produce directly usable oil from the woody biomass. This has implications for the utilisation of woody biomass from other species.

Replicability

The GDT process is modular. Thus scaling up is relatively straight forward. Small units, if required, can be sited in plantation hubs depending on the economics of transportation. All significant senile plantations in Samoa can be accessed. This program is directly transferable to other islands of the Pacific. Immediate targets would be the Fiji island of Taveuni and the Gazelle peninsula in PNG. There are no barriers to exploiting senile plantations in Asia. Cebu in the Philippines is a prime example.

SustainabilitySenile coconuts will supply adequate feedstock resources in Samoa for many years. The no. of acres under plantation is 27, 360 ha, and approx. 3.42 million palms. The question then is to determine the best use for the stripped plantations. This is a decision for the owners. If continuing copra production is opted for depending on the Rotterdam price for coconut oil then a dwarf hybrid re-planting scheme can be entered into with a target replacement of up to 5:1. If the option is to continue with pyrolysis a decision as to the feedstock must be made then. If the GDT re-engineered process is successful for whole coconut palms then similar results may be obtained from other woody species. For example, invasive woody leguminous weeds such as Gliricidia, Calliandra and Leucaena are rapidly regenerative and can be considered “energy plantations”. They can be regularly harvested as they rapidly coppice after cutting12.

Innovation

Biomass utilisation is not new. Gasification is commonplace throughout Asia. What is revolutionary is the opportunity to leap forward from fast pyrolysis to produce useful hydrocarbon fuels rather than the less useful bio-oils currently obtained. This allows the application of fossil fuel use against the full panoply of electricity generation, industrial and transportation sectors

Risk Containment

It is anticipated that the results of the re-engineering will not be a stark success/fail process. Instead, the results will occupy a position on the continuum between bio-oil and substitutable hydrocarbons, with the strong likelihood of approximating the latter. Thus in a worst-case scenario, the re-engineered process will yield perhaps more syngas for electricity generation on-sold to the grid, activated carbon for export, ash for soil amelioration, a hydrocarbon liquid immediately substitutable for fossil fuels plus perhaps another fraction that may enter fertilizer processes, resins, specialty chemicals, etc. The continuum is illustrated below:

12 Re-afforestation and replanting will be the target of a potential grant from GTZ. It is anticipated that the TA component will reveal the optimal policy of replanting options for the land owner based on principles of ROI and environmental sustainability. The choice between food and energy production will be reconciled by the TA given the comprehensive data generated by the Ministry of Agriculture and the PPCR program.

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Project Phasing

There are 2 phases:1. Re-engineering at GDT HQ in Warren, NSW, Australia2. Establishment of a commercial scale-up to 3 modular unit near Saleleloga, Savai’i, Samoa.

Putative Costs Stages 1 - 41. Re-engineering / Project Incentive Grant US$ 400,0002. Manufacture / Freight / install to turnkey 3 Module plant US$ 2,400,0003. Material handling / Packaging / Robots / Warehousing turnkey US$ 2,300,0004. Computer software / Programming and Site Commissioning US$ 75,000

Future allowances Stages 5 – 6 5. Manufacture / Freight / install to turnkey additional 3 Modules US $ 2,200,0006. 3 x I Module units / installed turnkey at remote Island Nations US $ 2,200,000

Totals .

Stages 1-4 Loan drawdown inclusive of Project Incentive Grant US$ 5,175,000

Stages 5-6 Savaii Plant to capacity plus remote Island Nations . US$ 4,400,000.

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III. ENERGY PRODUCTION FROM WASTE (tyre recycling)

Samoa Tyre Recycle Limited

Pacific Energy Solutions

CONCEPT PROPOSAL PROJECT:

Energy Production from Waste

August 2013

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Table of ContentsPage

1.0. Summary Description___________________________________________________________ 31.1 Outcomes______________________________________________________3

2.0. Rationale _________________________________________________________________________ 4

3.0. Strategic Program for Climate Resilience (SPCR) Links ___________________ 5

4.0. Type of Financing _______________________________________________________________ 4

5.0. Innovation________________________________________________________________________ 6

6.0. Product____________________________________________________________________________ 76.1. Product Structure ______________________________________________ 8

7.0. Market7.1. Local Market__________________________________________________ 9

7.2. International Market ___________________________________________ 9

8.0. Financial Plan __________________________________________________________________ 10

9.0. Expected Results _______________________________________________________________ 10

10.0. Feasibility and Risks _________________________________________________________ 10

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1.0. Summary Description

Samoa Tyre Recycle incorporated in 2009 with aims to address and satisfy the following:

i. The ever growing energy needs of Samoa and its prominence for those energies to be sourced from Clean Renewable Energy Technology;

ii. Create a new industry in Samoa that proves to be feasible in its creation, operations and co-operations with NGO's and Government Ministry's and bodies.

iii. In co-operation with the only energy retailer in Samoa (Electric Power Corporation) reduce Samoa's vulnerability to oil prices and to deliver a more affordable price that will be passed on to consumers.

iv. Increase imports and exports for Samoa, utilising its freight and shipping agencies.

STR seeks to be the first ever in the South Pacific to introduce Pyrolysis biomass technology encompassing the use of waste (end-of -life) tyres to produce energy and Carbon Black for export. In simple terms waste tyres is used as feed into our machinery to produce high-grade carbon black and electricity. This technology has zero harmful emissions based on a Queensland University Study Method.

Phase two of our operations will include the collection of waste (rubbish) to feed into a incinerator to produce electricity. In establishing this new industry in Samoa, we hope to have a fully operational waste disposal and collection system, that will allow for the elimination of waste being dumped at landfill.

1.1. OutcomesBesides the benefits addressed above, the economic and environmental benefits will be felt across all industries and communities. The resulted outcomes will be as follows:

1. Reduced CO² emissions, as most of Samoa's energy is sourced from the burning of fossil fuels;

2. More affordable electricity for the population, with electricity prices set to reduce even more over time;

3. Collection of waste tyres and value adding to this waste resource;4. Provide employment and training for local staff.5. Reduce the risks of contamination in soil and water bore hole resources from toxic

leakages created from waste tyres and waste (rubbish) at landfill.

Once both phases of our projects is fully operational, we hope that this project will be duplicated in neighbouring countries.

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2. 0. Rationale

The main underlying rationale of STR is to set a precedent example of the types of new industries that can be formed from recycling in the South Pacific. To-date, no private enterprise has demonstrated as such, this undertaking on a large scale operation.

Partial fundamental reasoning for STR's existence is in the four R's: Reduce, Reuse, Recycle and Recover. Recycling is good in itself as it reduces the use of the world's natural resources. So instead of producing from earth's natural resources, we are simply recovering wastes and converting it to its pre-existing condition. This is sustainable.

This project needs funding because it will set a bench-mark for other Pacific Nations (given their remoteness) to become self sufficient in the handling of its waste and recyclables that has the potential to generate its own green energy. As a country in the South Pacific, Samoa's vulnerability to climate change is real. The scarcity of natural resources such as land and access to clean water in time will be realised. In STR's second phase of its operations, we will implement a program that will eliminate the dumping of waste at landfill. Through the implementation of such a program we will remove the environmental, social and health risks posed by the dumping of waste in unnecessary locations and prevent waste from washing up in the seas and other natural locations. Our innovative concept of using waste to generate energy is a new way of solving waste problems in Samoa and satisfying the energy needs of the country. And has the potential of benefiting our neighbouring cousins to becoming self reliant in the face of climate change.

This is where, our project will meet the demands that have already been identified in the South Pacific but in such a way that will make new ideas a reality.

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3.0 Strategic Program for Climate Resilience (SPCR) links

STR seeks to reduce Samoa's reliance on burning fossil fuels for its energy needs. If our program is implemented across the South Pacific ,this combination will greatly reduce the Pacific's total emissions.

Incomes in Samoa is detrimental to reducing the risk and damages of natural disasters. Samoa's exposure to climate change is imminent. With the recent disaster of Hurricane Evan in September 2012. Samoa lacked the infrastructure to respond to populations living quite a distance from the capital of Apia in a reasonable time frame. A majority of homes, businesses and buildings were destroyed after the devastation of Evans. Implementing better infrastructural policies to reduce the risk of damages caused by natural disasters in Samoa will be beneficial on an environmental and socio-economic level. Samoa is a lower-middle income economy, despite its efforts to generate more income and to sustain income growth. External risk factors such as increasing prices of fossil fuels particularly in the energy sector and imported foods are degenerative in income sustainability. In order for Samoa to prevent its vulnerability to natural disasters, the following mechanisms must be considered:

1. Samoans need more assistance in the form of funding to construct homes and buildings that can withstand natural disasters;

2. Decrease Samoa's reliance on the burning of fossil fuels for its energy needs; Because of this reliance, the cost of electricity is very high- detrimental on economic growth and on incomes.

3. Educate the community of the risks associated in residing in low lying coastal areas. And of the options available to them through Government Ministries, NGO's and organisations in terms is disaster risk reduction.

4.0 Type of financing

Incorporating in 2009, STR was initially set up with its Privately selected shareholders, raising 3.82 million USD to fund another proposed plant. However, in STR's further industry investigations was discovered that the intended plant had a useful commercial life of less than three years. Upon more research STR had found another inventor who was capable of supplying a Pyrolysis plant that has a commercial useful life of twenty years. Unfortunately the equity raised was nowhere near enough to fund the plant. STR had acquired a loan of 1.34 million USD equivalent from the Development Bank of Samoa after seeking out private shareholders. Further financing is needed to ensure that STR can acquire the complete tyre Pyrolysis plant from Australia. We have already spent $5.54 million USD, we are seeking an additional $8.5 million for our plant. This will include cost, insurance, freight & shipping, applicable local taxes.

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5. 0 Innovation

Pyrolysis until recently (in the last fifteen years) has undergone immense technological advances to make it 'clean' energy. Utilising our machinery, waste tyres are fed into a continuous Pyrolysis chamber. Resulting products include, high grade carbon black, gas and heavy fuel oil which gets pumped into a turbine which produces electricity. Emissions that would otherwise end up as carbon emissions are directed into the Pyrolysis chamber to get burnt again resulting in zero emissions. This results in an innovative way of eliminating emissions.

Samoa Tyre Recycle L. T. D. Business model January 2013.

Contributing to better living standards for Samoa, will eventuate in lesser environmental threats that are posed from changes of the climate caused by Global Warming. Building up resilience with the communities, will prepare Samoa in times of natural disasters.

6.0 Product

Previously mentioned, carbon black and energy are two of the products extracted and developed through use of our plant. There is how ever one more product and that is steel. Steel serves as a strengthening re-enforcing agent in heavy duty rubber products such a tyres. Tyres are shredded whole with the steel. As the tyres are travelling down the conveyor belt, magnetisers are used to extract the steel. This is the main reason why we are able to produce high grade carbon black.

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Local and offshoreGovn't & regulatory agency's;

NGO's Local Partnerships (EPC);

International clients.

Strategic planning;Traning and Development;community co-operation.Educating communities about rubbish collectionWorking together for collection of waste.

Cash Flow Managment;Computerised Manufacutring Information Systems;

Internal book-keeping staff;

InnovationsLogisticsDistribution collectionsImport & Export channels.

System and Processes

Finance

Partnerships & Stakeholders

People & Community

STR


Carbon black has many useful applications in the manufacturing industry and in the agricultural industry worldwide. It has been commercialised in a number of industries. Carbon black is a strengthening reinforcing agent un plastic and rubber products. Without carbon black many products such a garden hoses, tyres, plastics would not have the durability need for its function. A tyre without carbon black would simply explode under the heavy pressure of a car. This is how important and crucial carbon black is in manufacturing. Tyre pyrolysis power plants have already been built all over the world, and this type of clean biomass has been in existence for a minimum of 10 years, its viable in a way that allows for the creation of a new market to fix the problems of waste tyres at landfills. The largest tyre pyrolysis power plant is in Missouri.

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6.1 Product Structure

1. Tyres are fed in via conveyor belt to pre-breakers which shred the tyres and remove nylon fibres.

2. Magnetisers remove steel after each cycle of shredding.

3. Cyclone 1, 2, & 3 removes any dust particles that are created in the shredding process and transfers it to a wet tank.

4. The Fibre table collects the nylon extracted from the tyres.

5. After shredding tyres to a diameter of one centimetre, the tyre crumb travels by conveyor belt into the continuous Pyrolysis furnace.

6. After the extraction of carbon black and bunker oil from the pyrolysis furnace, the bunker oil is collected in a tank and bypassed to connect to the generator. Emissions from the generator are directed back into the furnace to be re-burnt creating zero emissions.

7.0 Market

7.1 Local Market

Almost all of recyclable waste in Samoa is currently dumped at landfill, located at Tafaigata. Samoa's recycling capabilities are not of any medium to large scale commercially viable projects. Currently there are only a few small enterprises that engage primarily in the collection of metal, copper and aluminium recyclables. Barriers facing a majority of these small business owners is the necessary skills and abilities to raise projects well worth investing time and money into, this

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coherently poses non-favourable circumstances in raising sufficient equity in feasible recycling projects. Two factors that hinder the local energy market are as follows:

1. Samoa's dependence on fossil fuels particularly in diesel generators are vulnerable to international oil prices.

2. The only importer of petroleum products, Petroleum Products Samoa (PPS) has monopolised the market. The EPC are unable to source its own petroleum products from overseas because of current contracts and policies enacted by the PPS through the Government.

3. The diesel currently being used in Samoa is of high sulphur content, being 500 ppm (five hundred parts per million). When other developed nations are using low sulphur approximately 10 ppm (10 parts per million).

On Wednesday 17th July 2013, STR presented to the Board Members of the EPC its proposal for energy supply. On Tuesday 23rd July 2013, we received written confirmation from the EPC that our proposal has been approved in principal. EPC and STR are in the process of finalising contracts for STR (Seller) to supply electricity to the EPC (Buyer). The expected term for the Power Purchase Agreement is twenty (20) years. This will ensure (over time) that the price of electricity will stabilise..

7.2 International Market

Our major export by-products: steel (extracted from tyres) and carbon black (used as a strengthening reinforcing agent in the plastics and rubber manufacturing industry). China (one of the worlds' largest producers and consumers of carbon black) is forecasted to consume 35% of Global Carbon Black by 2017. In 2011, the PRC has withheld carbon black exports for purposes pertaining to its manufacturing sector. Because of this shift, there is currently a world shortage for carbon black. It is with these market factors that we intend to partially fill that void. Our closest carbon black market is gold mining in Australia. Waste tyres pose risks to landfill. The bubbling effect from tyres can cause toxic leakages to contaminate soil and water ways. This is the main reason why tyres are banned from being dumped at land fill. In response to this, a whole infrastructure program of tyre collection is in use.

8.0 Financial PlanSource of Funding Amount (USD $ Equivalent) Percentage (%)Project Developer 0 0

ADB or World Bank 0

PPCR Funds 8.5 million 60

Local Banks 1.34 million (DBS) 10

Other investors 4. 2 million 30

Bilateral organisations 0 0

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Others0 0

Total 14.04 million 100%

9.0 Expected Results

As the economic and environmental benefits have been demonstrated in this Concept Note, the main indicators of our projects success will be reflected in statistics released by Samoa Bureau of Statistics. We are confident that Consumers Price Indices will decrease and the flow of exports and imports will have a positive flow effect on Samoa's economy. Major influences in these figures will be the reduced cost of energy. These factors play an important role indicating how successfully our company has implemented our programs. Through NGO's, Government Ministries and Agencies, co-operation is the key to proper implementation.

10.0 Feasibility and Risks

In our five years since undertaking planning for our projects. Risks if any are minimal. However for the purposes of this, we have to address possible related risks. They may include:

Political and law changes in countries where we source our waste tyres from, that would hinder our supply chain. We have contacts all over the world where we can source our waste tyres. Globally, there is no shortage of tyres and this market is re-occurring.

Financial risks are minimal, because local demand in the energy market demand is set. There is only one electrical retailer, so our cash-flow elements have no risks posed.

Project is envisaged to be fully operational in 8-10 months from receiving funding from the PPCR.

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BIOGAS PACIFICEnergy for a sustainable future – a partner company of Soil Health Pacific Ltd

Compiled by: Edwin Tamasese

Date: 04/08/2013

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Summary Description

ObjectivesBiogas Pacific is a company dedicated to sustainable fertilizers and renewable energy. It is a branch of Soil Health Pacific Ltd a parent company focused on biological agriculture which works on the principals of soil health, growing nutrient dense foods and carbon sequestration through scientifically proven and responsible farming technologies.

OutcomesThe intention of Biogas Pacific is to implement the following:

Gas Production1. Build a state of the art biomass digester based on the latest biogas technologies available2. Significantly reduce/eliminate landfill from green wastes and sewage that is releasing

hazardous methane gas into the atmosphere.3. Replace high carbon footprint imported gasses4. Reduce high cost imported gasses reducing cost of living and increasing likelihood of

adoption by families as a cost effective cooking alternative to wood, electricity and kerosene

Grey water and compost1. Provide an cost effective replacement for imported fertilizers2. Provide an environmentally renewable source of plant nutrition in support of Samoa’s

drive toward food security and sustainable agricultural production.

Sectors affectedThe major sectors that will be affected are those on the energy side and the agricultural side as shown by the expected outcomes above.

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RationalAt this stage Samoa does not have any commercial biogas digestion projects on this scale. This means that much of the green waste and sewage is disposed of in landfill. With the biogas technology that is currently available the majority if not all of this waste can be recovered and converted into valuable alternative energy and fertilizer products. As is mentioned above, the local impacts to Samoa are significant in terms of environmental sustainability, clean energy, and sustainable fertilizer, lower costs of fertilizers and energy as well as direct and indirect employment. This makes this project particularly important and valuable to Samoa and the Samoan community.

In addition to these benefits, installation of a commercial facility can be achieved with the guidelines for acceptable projects.

SPCR LinksThe following project aligns with the SPCR in regards to the implementation of “immediate and urgent project based activities to adapt to climate change and climate variability”. At the present time Soil Health Pacific Ltd, Biogas Pacific’s parent company, is the only company working in the private sector in crop selection, farm equipment and technology, stakeholder training, fertilizers and research and development in the agriculture sector. This links directly to the agriculture and food security risks identified in Samoa’s SPCR. The compost and grey water that this activity will generate are critical to enhance Samoa’s ability for resilience in a changing world.

ProductBiogas production is a relatively old industry and has been proven very successfully internationally. However it is becoming increasingly more developed through improved designs and additional capacities. The proposal is for Biogas Pacific to work with Aquatec Maxicon who represent Weltec Biopower (a German Company) in the South Pacific region.

Drivers:

Growing public and political call for renewable energy Combined heat and power technology Climate protection

Advantages

Multiple end-products: gas, vehicle fuel, raw materials for subsequent processes (compost), electricity, heat, easy to store energy

Energy independence Local deployment Regional value creation Closed-loop energy and nutrient cycles

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MarketAccording to a former Director of BOC gasses a local Samoan gas distributor, approximately 28,980 kg of LPG gas is distributed each week in Samoa. This equates to approximately 49671.72 cubic meters of gas per week. There is therefore a relatively significant demand for gas in Samoa and based on forecasts, Biogas Samoa will be able to quite effectively compete to capture a significant portion of this market share.

Current market barriers to entry are the significant costs to set up the facility due to the unfavourable commercial bank finance that is available which makes a project of this size unfeasible due to the short loan terms and very high interest rates. Depending on the volume of gas that is produced and the intention to assess the feasibility of gas fired vehicles, should this be viable it will mean extensive additions and expense to the project to get filling stations set up. There will also need to be a formalization of the current negotiations with the Ministry of Natural Resources and Environment to utilize all the organic waste streams currently disposed at the local waste disposal site.

Current completion from local distributors of imported gas is not seen as too significant of a threat as biomass digestion for gas production has been shown to be equal or lower to LPG according to a study conducted by the Victorian Government in Australia.13 We are reasonably confident that this will be the case for Samoa.

The climate benefits are clear due to the carbon neutral nature of biomass burning. This is of course highly beneficial for Samoa. Success of a project on this scale will also provide a positive platform for the region in duplicable similar projects.

Financial PlanSource of Funding Amount (USD$ equivalent) Percentage (%)Project developer14 150,000.00 4%ADB or World Bank 3.5 million 92%Samoa Government15 150,000.00 4%Total 3.8 million 100%

Expected ResultsOutput Indicator of

Success/AchievementCompletion of financial requirements, feasibility and site assessments

Completed documents presented to Bio-gas Pacific Board

Formalization of agreement with Government for use of organic matter waste streams16

Signed MOU with government

Commencement of construction of plant

Plant completed in 8-12 months

Biomass plant opened and As specified above

13 Natural Gas. Your questions answered, www.natural-gas.com.au14 Contributions will be project management and technical support as “in kind contributions”.15 Contribution of Government will be in the form of land at the Tafaigata Landfill site16 Verbal agreement has been reached. Formal agreement needs to be compiled and signed off

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commencement of operationInitial gas product extraction begins

On commencement of plant operation

Compost extraction As required by digestion process

Grey water siphoned off for fertigation

As required by digestion process

Feasibility and RisksImplementation feasibility is seen as achievable based on the short timelines for construction of biomass digesters and the relative low tech equipment that is required. It is therefore highly possible to complete the installation and commissioning of this project in 8 months17. The risks however may be in the timeline of the surveys to measure the biomass potential of the current site and finalization of financial costings based on the site and waste composition and handling requirements.

Due to the stable political situation in Samoa, the political impact on the project is not seen as a risk. It is expected that the Government will be largely supportive of this project. There are also effective policies in place which will allow this project to proceed successfully.

The social impact of the project is seen to be overwhelming positive in consideration of the poor utilization of the current waste streams with little to no benefits and in most cases negative social and environmental impacts. Economic and financial risks for the project are seen as quite low if the project is able to secure the low finance options that are indicated by the funding organisations.

Overall view of projectDue to the high cost of LPG in Samoa, the financial viability of such a project is forecast to be very high. The only limiting factor for the private sector to become involved in this type of venture is the high initial investment costs and the lack of financial instruments in the current finance sector to permit such a project to go ahead.

17 Weltecs last installation in Arneburg , Germany was completed in 8 months in June 201338


V. SUSTAINABLE BUILDINGS

1.0 Summary Description (objectives, outcomes, sectors affected) –

Introduction:

Samoa as a country has limited sustainable energy supplies. The current adopted building code is based on the temperate zone codes and building practices are aligned to that code. The sunshine, rainfall and tree growth are areas where Samoa has opportunities for creating energy opportunities and reducing its vulnerability by putting in place passive technologies and practices that reduce its impact on the environment, reduces its consumption of resources, reduces green house gas emissions and most importantly mainstreams them as able to be introduced and used. Natural Foods is a food processor that processes raw materials grown in Samoa into packaged foods for the markets of Samoa, New Zealand, Japan, American Samoa and Australia. Energy use and our isolation means that we would be at a disadvantage as more and more states look at the impacts of our production on green house gas emissions and the costs of getting fossil fuels and using it increases in line with increasing demand and reducing supplies. Already there are taxes that are applied as a barrier to address the production of GHG in getting products to market. In addition the consumers are conscious of the energy use and are voting with their money for products that use less energy.

Samoa averages more than 2200 direct sunshine hours over the 1970 to 2000 period and this energy has a minimum insolation value of 0.49 kwh per sq m we would expect that this mean is a consistent factor. Natural Foods hope to produce product for the market that would create about 5 tonnes of biodegradable waste per week and we would like to be able to recycle this to reduce our emissions and produce renewable energy in a building designed to meet stringent energy standards.

Concept:

To mainstream the concept of reduced GHG reductions in the design and building of structures by passive and active design features by building a factory that reduces the heat buildup, is designed to be naturally cool, has renewable resources and the use of RE built into its design from the beginning, conserves available renewable resources and creates an energy neutral outcome for food processing. This would also create zero green house gas emissions for biodegradable waste for disposal.

The building would bring in its air through underground stored rain water using polythene and cement pipes. It would be filtered into the building and be at an ambient temperature of 23 degrees Celsius and with 60% humidity. The air pressure incoming would create a positive pressure environment inside the building with the evacuated air passively released to maintain this for a sterile environment. The air supply would be from under local deciduous trees with high leaf production ensuring the use of expiration to keep the air cool to start with. Air would be pumped in using solar DC pumps backed up with methanol generated power from the waste management system.

All roof water would be collected into underground tanks down the side of the buildings along which the intake air pipes would run. The building would incorporate natural sunlight through insulated skylights and vents for daylight lighting and insulated windows strategically placed so as to reduce the introduction of heat (South facing being larger then north facing) Automatic DC powered shades would activate using solar energy upon being struck by direct sunlight to reduce long wave radiation heating. Use of landscaping to reduce heat buildup on building surfaces, insulation in the windows and walls to reduce the

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introduction of heat into the building, orientation to minimize exposure to direct sunlight and maximize energy uptake. A ventilated air cavity in the roof insulated to reduce radiated heat buildup.

Solar power supplied through solar panels and a methanol gas electricity generator shall be fed into an inverter that shall load share in accordance with demand and also be connected to the grid as a backup and to ensure the stable supply of electricity. Excess electricity shall be supplied to the grid in accordance with an agreed price from the supplier. Solar hot water heaters shall also supply hot water for processing and cleaning as needed in the factory. Heat from manufacturing systems shall be directed into heat required processes to maximize their use and minimize the costs of production.

Passive energy design criteria would be developed and building techniques refined so as to enable efficient and effective implementation of reduced demand from the fossil fuel generated suppliers.

Knowledge and technology transfer would be recorded and made available as a resource for training in the trades training resources and also used to develop the industry to meet the needs of the environment and the economy.

2.0 Rationale (national context, local impacts, why fund this idea, connection to SPCRobjectives)

The energy strategy calls for a reduction in losses, imports and demand and an increase in the use of renewable energy. The Strategy for the Development of Samoa supports the development of agro processing with clear links to the development of the rural economy. Reducing urban drift and improving the utilisation of the provided infrastructure. This initiative clearly meets the demands of the two goals and shall reduce GHG, reduce climate change vulnerability and shall improve income opportunities for the rural economy. It shall also provide incentives to produce sustainably from the land as the cost of the product through production shall be lower leading to better payment capability for the raw materials. The concept of climate change adaptation is to be mainstreamed into the design and local weather systems adaptation and mitigation into the buildings and processes for manufacturing in the Pacific Island Countries. At present the building code is undergoing review and this is an ideal time to propose changes and provide an example of it to enable its introduction into the code. Develops a tailor made tool for designing and implementing passive designs into the building industry to maximise use of natural resources and renewable energy.

3.0 SPCR links (integration of climate risk into development, strengthened capacities,leveraging investment, learning and sharing lessons)

The concept of reducing energy demands, maximising the use of renewable energy, utilising waste to create energy and passive energy design concepts have not been used by the private sector in Samoa or in the pacific. There is a tendency due to the costs of financing to reduce the cost of building and increasing the costs of operation. This is not sustainable especially for isolated island nations where the cost of delivery is a constantly increasing factor in the cost of doing business. By reducing consumption of fossil fuels we reduce our emissions of green house gasses and reduce our impact of climate change this project integrates this concept into the

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design phase rather than being retrofitted at inflated costs. It strengthens the capacity of the Pacific Island Countries to use sustainable renewable energy advantages in its design concepts and applies passive energy concepts to the design of buildings and strengthens the capacity of the engineering and design of buildings to meet the climate change forecasts. The successful completion of the building shall be used as examples for the development of other building designs and to facilitate the learning and sharing of knowledge and experiences.

4.0 Type of Financing (private sector only, public partnership, other) –

At this stage the company Natural Foods International Ltd is looking to fund this through borrowing funds to build the factory. It has made substantial investment in machinery and some solar energy resources but the investment in the building of a new factory to the design specifications at IRR of 35% over a 5 year period is too difficult in the competitive global trading environment it is in. It can provide full security for any lending.

5.0 Innovation (technology, business model, financial instruments, structure – how to addvalue to the SPCR)

The concept of passive design for agro processing is not in place in the world much less the pacific undoubtedly it is coming. The decreasing tariff barriers under WTO have caused increasing technical and sanitary phyto sanitary barriers for exporters from the pacific island countries. The costs of transport are prohibitive and the proposed labeling of energy use in the production of goods shall all impact eventually on the Pacific Island Countries being increasingly marginalized. This innovation seeks to mitigate this and improve our ability to compete by meeting building needs that shall reduce our reliance on fossil fuels and improve our ability to meet the threats of climate change and reduce the barriers to trade by achieving compliance with buyer demands. This business model attempts to build on our sustainable strengths in tropical agriculture, with available renewable resources and to mitigate the impacts of climate change on our ability to produce and trade. Natural Foods has made slow investments in machinery to reduce energy demands, systems and efficiency with ISO certification and renewable energy with the use of solar hot water systems. NFIL would like to capture the methanol in its waste disposal so as to minimize its impact on the environment and improve its viability and to turn a cost into a benefit. This shall build on the South Pacific Programme for Climate resilience by introducing and showing that CCA principles can be used for improved production standards and are a viable way of addressing the needs of buildings in the pacific. This shall serve as a replicable model for building in the pacific and mainstream the need for such.

6.0 Product (tested, commercialised, viable, model, structure)

Passive building technologies are untested in the wet tropical conditions of the world. Examples of passive technology development have been demonstrated in temperate zones and in China where the continent acts to maintain low humidity conditions. This is not an appropriate technology to introduce into the high humidity environment of the small tropical island states. However modified versions can be looked at developed and enables improved environmental controls that shall not cause

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increased GHG emissions. Natural Foods are producing products from local resources that contribute to the economic development of Samoa. Creates viable sustainable income for the rural communities and develops financial opportunities to counteract the urban drift and abandonment of the rural land. We have endured tropical cyclones, tsunamis, pests and diseases, droughts and flooding which has impacted on our raw material supplies and our ability to trade and continue to trade today despite all these difficulties. We have developed a farming model which seeks to mitigate these problems and develop opportunities. This farming model involves the introduction of the concept of using Mango trees as windbreaks for an orchard growing products that we intend to process thus providing protection for the interior plants from the effects of tropical cyclones.

7.0 Market (overview, market barriers, product nature, supply demand, competition,substitute for other products, climate benefits, local, regional, global) –

Building costs are high, energy costs are high and financing costs are high. This has meant that buildings have been built so as to be secure with no real thought for their operating costs. Air conditioning systems Passive design and using RE shall increase the building costs and the leaders in passive house technologies (Germany) say this is typically by 10 -15%. Achieving a neutral state in a properly designed and implemented factory would reduce operating costs by more than that over the period of the loan and would be a permanent feature. Natural Foods have market surveys of products it can produce that show the market size, costs and access requirements. It currently is exporting to the United States, New Zealand, Australia, Japan and American Samoa. The tropical cyclone of December meant a cancellation of some orders and now NFIL (Natural Foods) seeks to put in mitigation to reduce the impacts of climate events on its production. As products are locally produced from plants grown in Samoa they assist in the development of the land. NFIL believes land should be sustainably farmed using science based initiatives that take into account the nature of tropical agriculture.

Fruit pathways have been evaluated and the current systems NFIL has in place means that compliance shall not be an issue. The products of the Australasian markets shall be able to compete on the basis of freshness and shelf life at a cost that is beneficial to the economy of Samoa. The issue of supply is being addressed through the PSSF. The development of the industry shall improve food security for Samoa but there shall be no waste as it is intended that graded fruit shall be used either for fresh export or for processing into value added healthy snacks or to sell in the local market for local consumption.

8.0 Financial Plan –

A business plan has been developed and tipping points built into them in the order of occurrence. A passive building that meets the standards for food processing is an important tipping point. Additional machinery shall be introduced as the demand comes on stream. Handling equipment and packaging has been imported and is available for implementation. Phased development of products and product development is based on their availability. Farmers are encouraged to be part of NFILs development so as to benefit also from the growth of the market and to enable

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them to have stake in the growth of their opportunities much like the New Zealand trading model.

9.0 Expected Results (describe results and indicators of success / achievement) –

At present energy costs are expected to be a continuing major cost and many of the private sector companies are looking for ways to reduce these costs. The combination of RE and passive design is expected to create an enabling environment with government and to create interest in developing the building tools and standards to enable a real reduction in energy cost. The outcomes being sought are an increase in the adoption of RE technologies and passive designs so as to reduce the costs of building operations. At present the continuing high costs of energy has slowly seen an increased demand for more RE but taxation on these units are pricing them out of the reach of many home builders. Success shall be indicated by the adoption of the private sector of the building as a model for building their factories and houses.

10.0 Feasibility and Risks (implementation feasibility and timeline, political, policy-related,social, economic or financial risks) –

The feasibility of the project has been investigated and there is no doubt that passive design and RE energy supplies are going to be implemented sometime in the future. Unfortunately it is not yet in play in the wet tropical countries in the world. As a country Samoa wants to trade and that means developing factories that meet the demands of the export market and yet need to have low operating costs. The reality is that wages are not always going to be low cost and therefore there is a need to build in a low cost environment that also reduces the GHG and waste impact of processing on the environment. The building would be built within 3 to 4 months and would be designed to achieve environmental aims of no GHG emissions from operations, net energy supplier to the grid, 23 degrees operating temperature with 60% humidity, sealed with positive pressure using solar and methanol electricity generation. The Ministry of Natural Resources and Environment and Energy division of the Ministry of finance has set ambitious targets for the use of RE and the reduction of energy demands and is supportive of the aims of this proposal. It aligns with their current written policies.

The social risks are not a consideration but the passive design features shall be highlighted once completed so as to educate and provide for the technology and knowledge transfer. We also want to use local tradesmen and mainstream these concepts into the trades training program.

The economic risk would be related to the provision of petroleum products as reduced demands shall result in the fixed costs being spread over a smaller volume causing increased costs on the reduced supplies. The other risk is to the generation unit who shall have to look at how to reduce its costs because of the reduced demand. However energy use had been increasing by 7% per annum or the last twenty years and given the number of buildings that are going up and forecast to go up this is not a likely scenario.

The financial risk is that the project may not be able to make its target environmental conditions in the building and that the design features may not achieve the savings targeted for it. However despite this we feel that the environment shall still be better then without the design features.

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VI. Solar Hydro Village Energy

PROPOSAL FOR A PILOT STUDY

Between ....................................AndSolar Samoa Ltd

“Pico-scaled Solar Pumped Hydro Applications to Village Energy”

Background

The SSL Consortium has been given Cabinet permission to supply large scale solar power (5 MW) to the EPC grid. Solar power output covers the major demand peak during the day but not during the secondary peak early evening nor does it supply power during the night. In a grid-tied system this is not a problem but in solar stand-alone systems there is no satisfactory evening power unless a battery bank is used. Batteries are expensive to purchase & expensive to maintain in a village context.

Solar Pumped Hydro

Storage of electricity is a difficult problem. The main problem occurs when renewable energy systems such as solar and wind are concerned. Solar is reasonably predictable on a daily rhythm but wind energy is intermittent. Inexpensive means of storing renewable energy when it is available and rationing it out when the demand load demands are sorely needed. There are now large scale pumped storage hydro systems that utilize cheap power to pump to a head (upper reservoir) and reticulate to the lower turbine when power tariffs are high. Solar and wind power are ideally suited to this approach. This Project will serve to illustrate a pico-scale solar pumped hydro pilot study suitable for a nuclear sized Samoan family.

Various large-sized pumped storage plants exist worldwide with power varying from 1 MW (RHE Lepenica, 1985, Croatia) to 2700 MW (Kannagawa, 2005, Japan). Pumped hydro is available at almost any scale with discharge times ranging from several hours to a few days. The advantages of such systems are:- More than 100 years of experience;- High efficiency, in the 70% to 85% range.- Multipurpose facilities;- Environmental friendly;- CO2- avoiding;- Highest availability compared to other technologies;- Quick response to load variation (few seconds) and reserve capacity.Taking into account evaporation from the water surface and conversion losses, about 70% to 85% of the electrical energy used to pump the water into the elevated reservoir is regained.If a pico-scaled model works efficiently then large scale SPH can be applied to existing hydro facilities from surplus solar power during the day.

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Electricity Storage by Technology

From the diagram above it can be seen that pumped hydro storage offers the best potential by far.

The Pump As Turbine (PAT) System in Principle

The illustration depicts a large-scale system but the principles are the same. There will be no tunnel. Piping will be used instead. The Powerhouse contains the pump/turbine which either pumps water to the higher reservoir or reverses function and acts a turbine when water from the higher reservoir flows down to the lower reservoir. The pump can use solar power to pump up and the turbine can generate electricity in the reverse cycle.

Specific Technical Application

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It is proposed that a 350-500 Watt system will be appropriate for the pilot study. Therefore a micro-sized reversible Francis or Kaplan pump/turbine will be used. The choice of the reservoirs and the height (or head) will be determined in consultation with partners. The infrastructure of the system including the solar panels, inverters, wiring, PAT reversible pump/turbine and piping will be supplied by the Consortium. The site will be supplied by SROS and MNRE. The monitoring and evaluation will be shared by SROS and SSL and partners.

The equation linking power generated to the Head and Flow plus Gravity is:

Power (Watts) = Head (metres) x Flow (litres/sec) x Gravity (~10)

Thus a system with a Head of >20 m, Flow of 2.5 L/sec will produce 500 W. Given an efficiency of 70% this will equal 350 W. The amount of water pumped/turbined will be in the order of 37,500 L for the requisite 6-10 pm period.

Pump Category Characteristics

Large Scale Application Implications Samoa-wide

Using a hydro-pumped storage allows to improve the quality of the provided electricity and to reduce the peak power of the other energy generating systems. This system flattens out the load variation on the power grid, and permits thermal power stations, that provide base-load electricity to continue operating at peak efficiency while reducing the need for peaking power plants that use costly and polluting fuels. Moreover, a pumped storage system helps control electrical network frequency and provides reserve generation. Base-load diesel plants are much less able to respond to sudden changes in electrical demand, potentially causing frequency and voltage instability. The hydro-pumped system can respond to load changes within seconds. These machines generate in synchronisation with the network frequency, but operate asynchronously as motor-pumps. Another benefit of pumped storage is to help level the fluctuating output of intermittent power sources like solar and wind. The pumped storage absorbs load at times of high output and low demand, while providing additional peak capacity. It is particularly likely that pumped storage will become especially

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important as a utility grid regulator for very large scale photovoltaic generation. The typical overall efficiency of hydro-storage systems is between 65% and 77%, with a maximum depth of discharge up to 95%. It has been shown that this type of system for island autonomous electrical networks is the optimal solution for big size islands and for small and medium sized islands; it appears to be the best solution for an electrical autonomy of 24 hours.

Appropriate Site

The tsunami-ravaged SW of Upolu where the population has relocated to the top of the ridge well above the littoral plain offers ideal testing wherein small reservoirs can be located at both the beach level and ridge/residential level. The system also offers water pumping service for relocated villagers.

Future Planning Recommendations

It is recommended that the potential JV organizations complete a feasibility study including a cost/benefit study related to the medium-scale project. This study will determine the advantages and disadvantages of this initiative and the willingness to execute.

Stages of Study

1. The Pico-size Project.This project is to be funded by appropriate grants. Putative costs are supplied below

2. Medium-scale Pilot ProjectThis will be funded by concessional loans. Existing SWA reservoirs will be tapped. This is a commercial scale up involving the following entities:Solar Samoa LtdS.P.R.E.P.Samoa Water AuthorityElectricity Power CorporationSamoa Land Corporation

Costs for Pico-scale Project

Reservoirs (concrete), piping, PAT system (from Norway), solar unit, monitoring system will total US$165,000.

Contact: (Dr Peter B Blood, Director, Solar Samoa Ltd, [email protected]).

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Section 5. PRIVATE SECTOR COMPANY INFORMATIONI. SOLAR WATER PURIFICATION - F-cubed

II. COCONUT BIOFUEL PRODUCTIONIII. ENERGY PRODUCTION FROM WASTE (Samoa Tyre Recycle

Limited, Pacific Energy Solutions)


V. SUSTAINABLE BUILDINGS (Natural Foods International)VI. Solar Hydro Village Energy (Solar Samoa Ltd)

==========================================================================

NOTE: Complete company information not available at time of writing – to be completed in due course during ADB initial review and investigations for due diligence as required.

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Section 6. Private Sector and the Pilot Program for Climate Resilience

“Multilateral Development Banks (MDBs) such as the Asian Development Bank (ADB) can play a critical role in helping

economies in the region improve their investment climate, particularly to foster and catalyze investment by the private sector18 ”.

Private Sector and Cofinancing Operations, ADB, 2012

=========================================================================

Private Sector and the Pilot Program for Climate ResilienceThe Pilot Program for Climate Resilience (PPCR) aims to provide tailored incentives for private adaptation investments for its associated pilot countries and regions to integrate climate risk and resilience issues into national and sectoral development planning, poverty alleviation, and sustainable development targets. The PPCR does this by supporting investments in technical assistance and for public or private sector investments. Such financing considers the real and perceived additional costs and reduced investment returns that occur when integrating climate risk and resilience into core development activities.

PPCR-supported actions may also include concessional financing, which countries can decide to take along with grant resources to attract private sector investments that may not deliver the required rates of return on their own. Blending concessional loans with conventional financing to the private sector can help buy down the additional costs and risks of private sector investments. Some examples include:

Guarantees and risk mitigation (e.g., first loss may be necessary to cover the risk of a bank lending to small scale farmers for water conserving irrigation technologies)

Monitoring and data collection programs (e.g., weather and yield patterns in strategic agricultural crops where the benefits are both private and public but only blending with concessional finance would provide a private company with the incentive to invest in the project)

Additional costs that address climate uncertainties in public-private partnerships

Questions about the Climate Investment Funds and Private Sector Financing in the Pacific19

WHAT KIND OF PRIVATE SECTOR COMPANIES CAN BENEFIT FROM CIF FINANCING?

The CIF provides direct financing to real sector companies and indirect financing through financial intermediaries that provide, in turn, financing to real sector companies in the local markets.

18 Meeting the Funding Challenge, 22 March 2012, Economic Times, Lakshmi Venkatachalam, (vice president, Private Sector and Cofinancing Operations, ADB).19 https://www.climateinvestmentfunds.org/cif/node/8598

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https://www.climateinvestmentfunds.org/cif/node/8598

http://www.climateinvestmentfunds.org/cif/ppcr


The CIF is relevant and can deliver benefits for a wide range of private companies operating in developing countries or planning to do so. Sectors include, but are not limited to, energy (renewable energy and energy efficiency), transport, forestry, as well as those highly vulnerable to climate change, such as infrastructure, agriculture, and supply chains of agribusinesses.

Public sector programs financed by the CIF can have a longer term impact on the private sector operating in respective countries. Participation of the private sector is key for designing practical models for future financing mechanisms.

WHY IS CIF FINANCING CHANNELED THROUGH THE MDBS?

The CIF is channeled through multilateral development banks (MDBs), to support effective and flexible implementation of country-led programs and investments through their global and regional market outreach in developing countries. The funds are designed to complement existing bilateral and national financial mechanisms and, as such, their operations are well coordinated. To ensure this, an important feature of the CIF’s programming is MDB coordination with the leadership of the country, United Nations agencies, and bilateral development and investment agencies with a view to mobilizing co-financing and harmonizing policy support.

In each of the MDBs, the private sector arm helps provide a crucial bridge between investments in development and climate. They provide advisory support to improve the enabling environment for the private sector, as well as direct financing to private sector projects and entities implementing low carbon technologies and climate resilient initiatives. They serve as a catalyst for the growth of innovative markets and industry in the countries they support.

HOW IS THE CIF DRAWING ON PRIVATE SECTOR EXPERTISE?

The CIF recognizes the value of business input into the design of the CIF investment plans, programs, and instruments. To enable this input, the CIF engages the private sector through:

An active pool of private sector observers in each of the CIF governing bodies

Consultations with private sector representatives during joint missions and investment plan inception

Regular active engagement and dialogue with the private sector

=====================================

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http://www.climateinvestmentfunds.org/cif/content/information-stakeholders

http://climateinvestmentfunds.org/cif/MDB-Role

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