SAWEP 2 1st Project Steering Committee Meeting 24 Oct 2016 DoE

Agenda RESPONSIBLE PERSON 1. WELCOME DoE 1.1 Apologies 1.2   RESPONSIBLE PERSON 1. WELCOME DoE 1.1 Apologies 1.2 Confirmation of Agenda 2 ACTIVITIES 2.1 Feedback from Inception workshop (7 Oct 2016) PM 2.2 Confirmation of the PSC ToR and members 2.2.1 Risk Management Approval of Annual Work plan 2016 All 2.3 Financial Management and reporting UNDP 2.3.1 Reprogramming of exchange rate “windfall” & savings 3 GENERAL ALL 4 NEXT MEETING DATE & CLOSURE

Feedback from Inception meeting Organisation Invitees (1st notice, 16 Sept 2016) Responded on 1st notice (16 Sept 2016) Attend   Accepted Declined/Apologies DoE Mokgadi Modise, Noma Qase, Siyabonga Zondi, Lebogang Mojanaga, Lazarus Mahlangu 5 Mokgadi, Noma, Siyabonga, Lazarus, Lebogang Lazarus, Lebogang apologies 3 UNDP/GEF Walid Badawi, Wakhile Mkhonza, Aubrey Manamela, Adey Tesfaye, Rob Kelly, Puleng Mkhatshwa 6 Walid, Wakhile, Adey, Aubrey, Puleng Rob (another event), Puleng (another event) 4 DEA Dee Fisher, Deborah Ramalope, Olga Chauke Dee Olga (strat plan meetings) DTI Gerhard Fourie, Witness Mokwana, Phillip Ninela Gerhard, Witness, Phillip DST Rebecca Maserumule, Tumi Mailula, Somila Xosa Rebecca, Tumi Somila – Tumi attend 2 DHET Brenda Swart 1 DoE IPP Office Lolette Kritzinger van Niekerk, Martin Marcam apologies GIZ Marlett Balmer, Sascha Thielmann Marlett Sascha apologies Danish RE EE Program Yaw Afrane Okese, Maleepile Felicity Moseki Northern Cape Natalie Uys (Northern Cape Department of Environment and Nature Conservation (DENC), Cannot make it Western Cape Mike Mulcahy (Green Cape), Brian Jones (City of Cape Town) Brian declined Eastern Cape Alistair McMaster Another meeting KZN Susanna Godehart Magash Naidoo apologise, Sussana not there anymore SAWEA Johan van den Berg Indicate (morning of 7th) Nersa Mr Moefi Moroeng Eskom Barry MacColl, Riaan Smit, Kubeshnie Bhugwandin Kubeshnie, Riaan apologies SARETEC Naim Rassool, Sven Pietrangeli Sven Naim (school holiday), Sven declined SANEDI Thembakazi Mali, Andre Otto Thembakazi, Andre Otto IDC Gerrit Kruyswijk, Piet Badenhorst (Industrial Infrastructure SBU) Gerrit other unit now DBSA Najma Mohamed (PAGE) Apologies 42 20 18

Feedback from Inception meeting cont. UNDP-GEF Project Cycle Project idea PIF submission LOE from GEF OFP (Mar 18, 13) + Project Identification Form (PIF) (Oct 29, 13) GEF Council Approval GEF CEO endorsement PPG phase stated on April 24, 2013 ProDoc submission GEF CEO Approval 'package' prepared, cleared technically and financially – May 8, 2015 UNDP Approval Start Date Prodoc signed Dec 18, 2015 Inception Workshop Oct 7, 2016 Project Midterm Year 2018 Project Closure Dec 2019 Pre-SESP Continuous Monitoring SESP TTs Gender Analysis Inception Report PIRs Adey Tesfaye, Regional Programme Associate, UNDP) RSC Addis Ababa

UNDP-GEF Project Implementation Roles and Responsibilities UNDP-GEF (NY) Agreement and Formal delegation of authority to implement the GEF project M&E responsibilities UNDP-GEF Regional Center – Addis Ababa for Africa Reporting responsibilities UNDP South Africa Department of Energy (DoE) Project Steering Committee PSC member DTI, DST, DEA, DHET, SANEDI PMU Technical Advisory Committee PSC member SAWEA, GIZ, DANIDA Adey Tesfaye, Regional Programme Associate, UNDP) RSC Addis Ababa

SAWEP 2 Organogram

PSC Responsibilities Provide overall guidance and direction to the project, ensuring it remains within any specified constraints; Address project issues as raised by the project manager; Provide guidance on new project risks, and management actions to address specific risks; Review the project progress, and provide direction and recommendations to ensure that the agreed deliverables are produced satisfactorily according to plans; Review Combined Delivery Reports prior to certification by the implementing partner; Prepare Combined Delivery Report (CDR) [Project assurance, project support] • The Combined Delivery Report (CDR), summarizing all project expenditures, is mandatory and should be issued quarterly. • Based on the financial reports received and recorded in Atlas, UNDP prepares the CDR using Atlas. It should be sent to the project board for review and the implementing partner should certify it. • See above section Provision of Financial Resources. • For detailed procedures, please see the CDR under the Financial Management section. Wakhile N. Mkhonza, Programme Officer, SAWEP II Inception Workshop – 07 Oct 2016

PSC Responsibilities (Cont…) Appraise the project annual review report, including the quality assessment rating report; make recommendations for the work plan; and inform the outcome group about the results of the review; Provide ad hoc direction and advice for exceptional situations when the project manager’s tolerances are exceeded; and Assess and decide to proceed on project changes through appropriate revisions. Wakhile N. Mkhonza, Programme Officer, SAWEP II Inception Workshop – 07 Oct 2016

Monitoring and Reporting Inception Report Quarterly reports (focus on results) - CDR Quarterly financial reports Quarterly expenditure reports and Project Audits (1st Annual Review Report and PIR (1st 2017) Project Steering Committee Meetings Field visits by UNDP CO Independent Evaluations (Mid-Term 2018 & Terminal 2019) Annual Review Report – Report from Project Manager to the PSC Prepare Combined Delivery Report (CDR) [Project assurance, project support] • The Combined Delivery Report (CDR), summarizing all project expenditures, is mandatory and should be issued quarterly. • Based on the financial reports received and recorded in Atlas, UNDP prepares the CDR using Atlas. It should be sent to the project board for review and the implementing partner should certify it. • See above section Provision of Financial Resources. • For detailed procedures, please see the CDR under the Financial Management section. Wakhile N. Mkhonza, Programme Officer, SAWEP II Inception Workshop – 07 Oct 2016

Risk Management Why manage risk in a UNDP-GEF project? GEF-funded projects are complex and therefore likely to face risks and challenges Strengthen project and portfolio management (efficiency and effectiveness) Adey Tesfaye, Regional Programme Associate, UNDP) RSC Addis Ababa

FINANCIAL MANAGEMENT Preparatory (PPG) funds cannot be transferred to the main project Project Management Cost (PMC) budget can be: max. 5% of outcomes subtotal for projects above $2 mil of GEF grant PMC cannot be overspent at all over the project lifetime Project PMC is USD 169250 Miscellaneous and Supplies is kept within 3-5% of the total budget over the lifetime of the project Adey Tesfaye, Regional Programme Associate, UNDP) RSC Addis Ababa

FINANCIAL MANAGEMENT Authorized changes in TBWP Major change (amendment) requiring re- submission to the GEF for approval (applies for GEF 5 and GEF 6 projects): Funds transfer between project outcomes exceeding 10% of the total GEF project grant Introduction of new budget items or outcomes exceeding 5 % of the total GEF project grant Adey Tesfaye, Regional Programme Associate, UNDP) RSC Addis Ababa

BUDGET LINES NOT ALLOWED, NOT RECOMMENDED: FINANCIAL MANAGEMENT BUDGET LINES NOT ALLOWED, NOT RECOMMENDED: 75100 (F&A) – GMS is paid separately to XB budget 72700 (Hospitality) – use 75700 instead 73500 (Reimbursement Costs) - unless approved in prodoc by GEF BLs starting with …6 – except DIM projects and DPC BL 64398 73100 (Rental and maintenance of premises) – unless approved in prodoc by GEF Adey Tesfaye, Regional Programme Associate, UNDP) RSC Addis Ababa

Procurement & Support services UNDP, DoE letter

Approval Annual Work Plan (AWP 2016) Developed over 2013/14 Project approved May 2015, Prodoc signed Dec 2015 USD 3.5 million GEF grant 4 Components Component 1: Monitoring and Evaluation of the implementation of local content requirements Component 2: Resource-mapping and wind corridor development support for policy-makers: Component 3: Support for the development of small-scale wind sector Component 4: Training and human capital development for the wind energy sector

Components…..