Cooperation with Allplan & UNIDO

For the provision of services related to technical assistance in developing a pipeline of energy efficiency projects for financing in Iran

1.BACKGROUND

The Project Consultant (“PC”), a consortium led by Austrian consultancy firm ALLPLAN, And Rayenehdaran  who is Iranian consultancy as the partner of Austrian consultancy has been contracted by UNIDO to raise awareness of the Facility, to ensure compliance with technical eligibility criteria, support bank Pasargad through trainings offered to prepare/appraise Sub-projects, provide consistent communication among various involved parties, monitor implementation of Sub-projects and secure overall administration and monitoring of the Facility.

The PC maintains a team of key experts and additional pool of other specialist experts to implement the Facility.

The scope of services to be performed by Rayenehdaran under the agreement between Rayenedaran & ALLPLAN refer to the services as outlined in the original contract between ALLPLAN & UNIDO. The specific objective of Rayenedaran is in line in TOR.

2. PROJECT INFORMATION

The project “Industrial Energy Efficiency in Key Sectors” is financed by the GEF1 and implemented by UNIDO. The project was approved in August 2012 and is of duration of five years.

The objectives of the project are to accelerate the uptake of energy efficiency (EE) in industrial sectors, providing a framework for National Energy Management Standards, assisting in capacity building through training, developing targets, providing benchmarks and most importantly, identifying technology improvement options to high energy intensive industrial sectors.

The project consists of five components:

a) Policy Support: Integrating Energy Efficiency priorities into national industrial policies and development programmes on energy intensive SMEs in Iran through setting up market- based tools in industrial sectors.

b) Training and Capacity building: Building a national cadre of experts on energy management systems and system optimization as well as energy auditors, introducing the concepts of energy management systems and system optimization to the company management, training enterprises on the preparation of bankable projects.

c) Direct support to Industry: Implementing one demonstration project within each sector to act as a showcase for other industries and supporting those with energy audits, energy auditing equipment and energy metering equipment.

d) Financial Support: Facilitating financing by training banks and financial institutions on the financial appraisal of EE projects and establishing a revolving fund to support investments in EE.

e) Information dissemination and Awareness raising on EE good practices, selected case studies, sectoral benchmark reports, discussion forums and setting up of a data bank on EE technologies and suppliers.

3. SCOPE OF SERVICES

Within the scope of the project a revolving fund is due to be set up in Iran to assist enterprises in accessing funds to assist in the acceleration of the uptake of EE initiatives.

In order to ensure demand for financing of energy efficiency projects and support local banks in understanding energy efficiency project, the contractor will be required to:

3.1. Pipeline of energy efficiency projects

  • In close coordination with UNIDO, Iranian Fuel Conservation Company (IFCO) and the bank, support managing the fund, review and finalize the criteria for selection of projects and related procedures and forms for project identification, loan application and feasibility study, repayments, defaults and other loan related topics.
  • Actively identify energy efficiency projects in the industrial sectors and provide services related to energy analysis of project, walk through energy audits and technical assistance to identify energy efficiency opportunities and energy efficiency measure recommendations and cash flow analysis.
  • Develop a pipeline of projects which are eligible for financing.
  • Following the technical approval by UNIDO and IFCO, develop business

plans and feasibility studies for at least 10 projects.

3.2. Training for financial institutions

  • Propose the structure for a training programme on energy efficiency financing to be delivered to local bank in Iran distinguishing the various target groups for the training (Bank senior management, relationship and risk managers and the credit department staff).
  • Develop training material tailored for the approach proposed and the national context in Iran
  • Deliver at least 5 training courses targeting 20-25 participants each.
  • Provide on the job training and coaching to the staff of the bank for managing the fund