SA-LED_RFI_5-28-14.docx

Subject: Request for Information on the South Africa Low Emissions Development Project

Issuance Date: May 28, 2014

Closing Date: June 9, 2014

Closing Time: 16:00 South Africa time

REQUEST FOR INFORMATION OR SOLICITATION FOR PLANNING PURPOSES (OCT 1997)

(a) The Government does not intend to award a contract on the basis of this solicitation or to otherwise pay for the information solicited except as an allowable cost under other contracts as provided in subsection 31.205-18, Bid and proposal costs, of the Federal Acquisition Regulation.

(b) Although “proposal” and “offeror” are used in this Request for Information, your response will be treated as information only. It shall not be used as a proposal.

(c) This solicitation is issued for the purpose of: see Draft Statement of Work below.

(End of provision)

USAID/South Africa has developed a DRAFT STATEMENT OF WORK (SOW) for the purpose of providing industry and stakeholders an opportunity to review, comment and suggest areas for clarification. The Draft SOW may lead to a formal solicitation for potential offerors. The potential period of performance would be five years. The Draft SOW is provided in the following pages.

DISCLAIMER

This is a Request for Information (RFI) only. It is not a Request for Proposal, a Request for Quotation, an Invitation for Bids, a Solicitation, nor is it an indication that USAID/South Africa will contract for the items contained in this Notice. This RFI is an opportunity for USAID/South Africa to obtain information from interested parties regarding the attached Draft Statement of Work for the South Africa Low Emissions Development Project (SA-LED). In accordance with FAR 15.201(e), responses to this notice are not offers and cannot be accepted by the U.S. Government to form a binding contract. Responses to this RFI are strictly voluntary and USAID will not pay respondents for information provided in response to this RFI. Responses to this RFI will not be returned and respondents will not be notified of the result of the review. If a Solicitation is issued, it will be announced on the Federal Business Opportunities website http://www.fbo.gov at a later date, and all interested parties must respond to that Solicitation announcement separately from any response to this announcement. This RFI does not restrict the Government’s acquisition approach on a future Solicitation.

INSTRUCTIONS

Responses (comments, suggestions, and enhancements) to this RFI are due to the procurement office identified below by 16:00hrs (South Africa time); June 9, 2014. Responders shall provide one (1) electronic copy of their response; Electronic submissions, in Microsoft Word or Adobe Acrobat formats are acceptable. Please e-mail responses to proposals@usaid.gov. Please reference the e-mail with the subject title “Response to SA-LED RFI”.

Ensure comments are concise and specific to information included within the draft Statement of Work. Give special consideration to the following questions:

1) What steps can be taken at the outset of the SA-LED project to increase awareness of the support available to municipalities through the SA-LED project for development of applications for financing for low emissions, or “Green Growth” activities within municipalities across South Africa?

2) Success of the SA-LED project will require coordination with the South Africa Green Fund and low emissions development financing available from other donors, banks and private sector entities. How can the SA-LED implementer facilitate municipal applications to these various funding sources without overwhelming municipal officials?

3) How should the SA-LED implementer prioritize support to municipalities, in light of the overarching objective of SA-LED, to assist South Africa in meeting emissions reduction targets as stated in the National Climate Change Response White Paper?

Draft Statement of Work/Program Description for SA-LED

BACKGROUND

The world’s climate is changing and will continue to change at rates unprecedented in recent history. Vulnerability to the risks associated with climate change is expected to exacerbate existing social and economic challenges, particularly for populations in developing countries. Climate change is caused by emission of greenhouse gases (GHG) such as carbon dioxide, methane and nitrous oxide, in large part due to the burning of fossil fuels derived from oil, coal and natural gas. While developing countries have contributed less to GHG emissions than more developed countries, developing countries are the most vulnerable to the effects of climate change. As these countries develop economically they also have the potential to contribute significantly to future global GHG emissions.

South Africa is the largest GHG emitter in Africa and ranks 11th globally. Per capita, South Africans emit 10 tonnes of CO2/year, placing them eighth highest in the world. Over the last decade South Africa has become a leading proponent for developing countries in climate change negotiations, and has committed to the global effort to stabilize temperatures at 2ᵒC above pre-industrial levels. To contribute to this global target, South Africa has developed the “Peak, Plateau and Decline” GHG plan. This plan provides an outline for South Africa to begin prioritizing mitigation actions, so that GHG emissions peak between 2020 and 2025, plateau for approximately one decade, then decline thereafter. USAID/South Africa is committed to supporting the Government of South Africa (GoSA) in this endeavor through the SA-LED project. The goal of the SA-LED project is to support the shared commitment by the U.S. Government (USG) and GoSA to expand low-emissions development, or “green growth” efforts in South Africa.

ACTIVITY DESCRIPTION

The goal of the SA-LED project is to support GoSA in its efforts to expand low emissions development, or “green growth” in South Africa. The activities planned under the SA-LED project are primarily advisory, limited to capacity building, planning, analysis, and project development. No construction or infrastructure activities are anticipated using USAID funds, as direct support for these activities would be beyond the budgetary limitation of SA-LED. This project will build the capacity of officials in GoSA ministries, agencies and select municipalities, and also, assist in the planning and development of local low-emissions development projects (sub-activities), including assisting municipalities to access funds through sources such as the South Africa Green Fund, other donors or finance institutions.

The objectives of the SA-LED project are:

Objective 1: Strengthen public sector-related development planning and project development capacity for low emissions projects, including the mobilization of development finance and private sector participation; and

Objective 2: Increase public sector core competencies through technical assistance and learning activities in support of GoSA’s Green Growth initiatives.

Objective 1: Strengthen public sector-related development planning and project development capacity for low emissions projects, including the mobilization of development finance and private sector participation.

To achieve this objective the SA-LED project will identify capacity gaps related to low emissions development planning and local project development, and provide targeted capacity building for officials within GoSA and selected municipalities. The first step towards achieving this objective will be the development of a Project Management Office (PMO). The establishment and staffing for the PMO will take place during the first two (2) months of the proposed implementing mechanism. GoSA has proposed the PMO approach based on analysis of the existing low emissions marketplace in South Africa where a number of compelling and innovative ideas have been developed, but the concepts lack project development planning, and partnership development support to convert these ideas into meaningful GHG reductions that are in line with GoSA’s “Peak, Plateau and Decline” strategy. Under this objective work will specifically address the technical, financial and capacity gaps in South Africa for achieving low-emissions development goals. In addition to activities targeting capacity building, the PMO will undertake further activities including advisory support (assist in the planning and development) for up to twenty (20) local green growth projects (sub-activities) across South Africa.

The PMO will be overseen by the Department of Environmental Affairs (DEA), Department of Science and Technology (DST) and USAID jointly through collaborative project management. The PMO team put together by the project implementing partner will consist of senior-representatives from public sector-related development planning, project development, climate change analysis, and development finance. The role of the PMO will be to facilitate low emissions project development by providing a suite of services such as the development of project feasibility, emissions reduction and sustainability studies, identifying potential incentive programs, financing strategies, project design/engineering services, and assistance in the application process to existing LEDS funding sources such as South Africa’s Green Fund or funds from multilateral institutions. The PMO will work with a range of government departments across national, provincial and local government and private entities to accomplish this goal.

This structure and function of the PMO was agreed upon in consultation with DEA, DST and other GoSA partners. One of the primary services of the PMO will be the development of emissions reduction analysis services for the potential twenty, local green growth project applicants (these are sub-activities for which the application process and evaluation criteria will be determined by the PMO). The level of interest demonstrated thus far in the Green Fund, with the potential for analyses provided by the PMO to improve the quality of applications should increase the use of these potential funds for low emissions development by municipalities.

All activities undertaken by the PMO will be endorsed by relevant government department or public entity where necessary, with DEA acting as the overall champion and facilitator. The PMO will focus on the essential task of taking innovative ideas and developing them to promote the sustainability and bankability of such local green growth projects. Through extensive consultations with GoSA, USAID/Washington and other USG partners, it was agreed that Objective 1 will focus on ‘green growth’ and ‘smart cities’ within priority areas of the Near-Term Priority Flagship Programmes discussed in the National Climate Change Response White Paper. These include ‘Transport’, ‘Waste Management’ and ‘Energy Efficiency and Energy Demand Management’.

To facilitate coordination between DEA, DST, USAID and potential funding mechanisms, SA-LED will incorporate lessons learned by DEA in the establishment of the Green Fund into the development and function of the PMO. The PMO will report to USAID, DST and to the DEA, through the Office of Climate Change Monitoring and Evaluation. Other government departments and public entities will act as project partners for the projects that they have endorsed and which are operating within their mandated area.

Results:

Activities related to this Objective will be focused on achieving the following results:

· Strengthened capacities within public, private and civil society to develop fundable low-emissions projects in strategic sectors;

· This will be accomplished through targeted capacity building programs and through the development of project application and associated analyses which will be completed in partnership with relevant government officials.

· Preparation and development of up to 20 innovative low emissions projects across South Africa during the first three years of the project;

· Identification of projects will commence immediately upon staffing of the PMO

· The exact number of projects developed may be affected by the scale of the projects as large projects will require more resources.

· Each project will include analysis of the effects of project development on women and youth.

· Resources leveraged from the South African Green Fund, development finance institutions (DFIs), other public and private sector financing support; and

· Reduced emissions potential demonstrated in strategic sectors.

Objective 2: Increase public sector core competencies through technical assistance and learning activities in support of GoSA’s Green Growth initiatives.

Objective two will focus on enhancing strategic knowledge and skills development in those areas in which GoSA feel will have the greatest impact to aid in the achievement of desired results. Through the National Climate Change Response White Paper, GoSA identified a number of areas where core competencies needed development within the public and private sectors. These areas include, but are not limited to: urban planning, disaster risk reduction, GHG inventory development, emissions monitoring, carbon budget development, civil society adaptive capacity (farmers organizations, community groups, NGOs, etc.), vulnerability assessments and others. The priority here will be to build the capacity of key staff within DEA and other public sector entities for sound, low emissions project identification, prioritization, development, engaging with DFIs, and other strategic areas. Achievement of this Objective is critical for accomplishment of Objective 1, and for the sustainability of SA-LED beyond the life of this program.

Results:

Activities related to the Objective will be focused on achieving the following results for targeted GoSA stakeholders:

· Technical skills and strategic knowledge development within relevant national, provincial or municipal government entities;

· Improved GoSA skills to monitor, report and communicate on GHG emissions;

· Improved key stakeholder knowledge and awareness of low emissions technologies and implementation strategies;

· Increased knowledge and awareness of the relationship between economic, gender and youth implications of low emissions development; and

· Developing technical products to facilitate GoSA development and management of low emissions development; and

· Improved public planning for low emissions development.

Relationship to USAID and Other USG Programs The SA-LED project directly supports Development Objective 2/ Intermediate Result 2.4 of USAID/Southern Africa’s Bilateral Country Development Cooperation Strategy (CDCS): “Transition to a low-emissions economy promoted.” The partnership between USAID South Africa and the South African Government through SA-LED also supports the U.S. President’s Global Climate Change Initiative and USAID’s broader, Enhanced Capacity for Low-Emissions Development Strategy. Ultimately the transition to a lower emissions economy will enable South Africa to achieve the ambitious emissions reductions detailed in the National Climate Change Response (NCCR) White Paper, released in October 2011.

The SA-LED program is consistent with USAID’s Climate Change and Development Strategy, the overall goal of which is to “enable partner countries to accelerate their transition to climate resilient, low-emission economic growth and development.” As noted in the Strategy, countries that pursue low-emission development will be the best positioned to benefit from a new global low-carbon future and to access climate change financing from the public and private sectors.

Relationship to Partner Country, Local Stakeholders, and Other Donor Programs Consistent with the principals of the EC-LEDS Initiative, SA-LED is grounded in South Africa’s national climate change response as laid out in the National Climate Change Response Paper, which presents the Government of South Africa’s vision for, “an effective climate change response and the long-term, just transition to a climate-resilient and lower-carbon economy and society.” In essence, the National Climate Change Response paper presents a high-level road map for South Africa’s transition to a lower-emissions economy. The SA-LED program will build the capacity necessary to operationalize and support the implementation of particular aspects of the National Climate Change Response paper, including the design and implementation of mitigation measures that “make development more sustainable, both in socioeconomic and environmental terms.”

Along with the National Climate Change Response paper, SA-LED is closely aligned with South Africa’s National Development Plan, in particular Chapter Five: “Ensuring environmental sustainability and an equitable transition to a low-carbon economy”. The Plan prioritizes reducing carbon emissions in ways that maintain the country’s competitiveness in the global economy and notes a specific need to become “an early adopter of mitigation technologies and mitigation finance mechanisms appropriate to the local context.”

Key local stakeholders for the SA-LED project include the DEA, specifically the Office of Climate Change and Air Quality and the South Africa Department of Science and Technology as well as other GoSA departments, municipal leaders and relevant private sector partners. The most critical stakeholder with regard to management of the project is DEA, who has been identified by GoSA as USAID’s counterpart for implementing the SA-LED project due to their role in coordinating GoSA’s climate change response and carbon development plan and their direct connection to the Interministerial Committee on Climate Change (IMCCC). Other important stakeholders within the GoSA as identified by DEA include: the Department of Rural Development and Land Reform (economic cluster/ rural infrastructure), Department of Public Works (rural-urban infrastructure), National Department of Transport (green transport), Department of Public Enterprises/ Transnet/ ESKOM (transport infrastructure, energy), Department of Science and Technology, Department of International Relations and Cooperation, National Planning Commission (environmental long-term planning), Economic Development Department (transversal economic program), Palama/ School of Government (public sector management development), and the Parliamentary Budget Office/ National Treasury.

The South African Green Economy Fund is a potential partner for the SA-LED project. The Green Fund is jointly managed by DEA and the Development Bank of Southern Africa with the objective of supporting the South African economy as it makes the transition to a low carbon, climate resilient development path. The Green Fund was initiated in 2012 when GoSA, through DEA, set aside R800 million to support development projects in three key sectors:

1) Green Cities and Towns – investment in green technologies in infrastructure and other municipal services.

2) Low Carbon Economy – private sector efforts to improve efficiency and decrease carbon intensity, reducing pollution from industrial processes and improving waste management.

3) Environmental and Natural Resource Management – ecosystem based climate change adaptation to reduce the impact of agriculture and other land uses to conserve natural resources and protect biodiversity.

The Green Cities and Towns sector of the Green Fund promotes “well run, compact and efficient cities and towns that deliver essential services to their residents without depleting natural resources.” The specific focus is on services such as: public transport, waste management and recycling, water demand management, energy efficiency, and urban greening. To date the Green Fund has provided R250 million in support to municipalities for the Green Cities and Towns initiative, and is currently seeking opportunities to leverage additional funding from international donors. This presents the opportunity for SA-LED to assist in the identification and development of projects in partnership with DEA and the Green Fund.

Many multinationals such as World Bank and the African Development Bank, as well as bilateral donors are active within the low-emissions development (Green Growth) sector. Several organizations such as Agence Française de Développement, International Finance Corporation and the European Development Bank have created funds through agreements with South African banks such as Nedbank to support business investment in low emissions development; however these funds have not been well accessed. The technical assistance available to municipalities through the SA-LED contract may help to reduce the burden placed upon applicants to these donor funds, thus allowing municipalities or private entities to more easily seek funding from other sources to complete green growth projects.

Several donors have also recently initiated projects in support of green growth in South Africa, such as UNDP’s program with GoSA to reduce energy demand in the residential sector through implementation of an energy efficient labeling program for appliances. The British High Commission has recently launched a partnership with WWF to increase knowledge of green growth strategies by key stakeholders through WWF’s Green Growth South Africa (GGSA) project. The GGSA project aims to increase awareness and debate about moving South Africa onto a more sustainable economic development trajectory. The European Commission has partnered with ICLEI Africa to promote their Promoting Urban Low Emissions Development Strategies in Emerging Economy Countries or Urban-LEDS program. The Urban-LEDS program aims to assist seven municipalities in South Africa to integrate low carbon emissions priorities into their development plans. The German Development Agency has recently launched a “Waste to Energy” program with multiple municipalities. The World Bank Global Environment Facility has made $22.2 Million available to South Africa to support flagship initiatives identified in the White Paper. The Norwegian Environment Agency is supporting DEA in ongoing improvement of the national GHG inventory. Finally, the African Development bank has provided support for the development of solar power projects in South Africa, with the goal of catalyzing the development of local, solar power supply chains.

MONITORING & EVALUATION

If awarded, the monitoring and evaluation plan for the SA-LED will be based on a comprehensive logical framework and supported by the implementing partner once the procurement is completed. A traditional monitoring and evaluation framework in the form of a Performance Management Plan (PMP) will be provided by the applicants during the application phase and will be a key consideration in the selection of a proposal in the event a request for proposal is issued. If an award is made, the SA-LED implementing partner will be required to report on the USAID Standard Global Climate Change Indicators including:

· Training: Number of people receiving training in global climate change as a result of USG assistance;

· Finance: Amount of investment leveraged in U.S. dollars, from private and public sources, for climate change, as a result of USG assistance;

· Institutions: Number of institutions with improved capacity to address climate change issues as a result of USG assistance;

· Technical assistance: Number of days of USG funded technical assistance in climate change provided to counterparts or stakeholders;

· Reduced carbon intensity: Anticipated GHG reductions over years, as a result of USG assistance (measured in metric tonnes of CO2 equivalent).

A mid-term evaluation will be conducted by an independent evaluation team, and will look at sustainability measures that should be incorporated into the program. A final evaluation will also be conducted by an independent evaluation team to provide the stakeholders with a set of concrete, evidence-based evaluation findings and recommendations to facilitate replication of successful project practices.

The final evaluation will test success of municipalities in securing funding for individual projects, and the scalability of successful projects. As a funding requirement, the implementer must provide an analysis for each green growth project, which shows the amount of CO2 emissions reduced or avoided as a result of the project. This will require a comparison of current emissions, and their projected levels with and without the project intervention. The implementer will also have to provide the number of projects supported, the number submitting applications, the number awarded development funding and the amount of funds awarded.

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