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The programme will try to adopt a cluster approach of implementation on the ground. The current programme implementation which is being implemented from Kathmandu based Project Management Unit, has experienced several problems in the past. In addition, monitoring of field activities and technical support provided to the district technical team were found insufficient in the past. Further, programme implementation directly through Kathmandu based PMU was found to have posed delays in finalization of micro-hydro scheme which ultimately resulted into high operational cost. Therefore, a change in the current programme structure has also been proposed inline with cluster approach of implementation in order to ensure efficient and effective deliver of the project outputs.

Under the cluster approach, the new programme structure of RERL proposes 4 field offices, headed by energy advisors in each of the programme clusters in order to provide close supervision and back stopping to the district team. It has been noted that several RE projects/programmes implemented under GoN/AEPC has been operating through regional offices and GoN/AEPC also plans to open regional offices in near future. To open RERL field offices the RERL EMW needs to liaison with AEPC to explore the possibility of using the same office premises on cost sharing basis. The RERL field offices will be gradually internalized within GoN/AEPC management.

Following four clusters are proposed for RERL programme implementation:

The cluster have been defined mainly on the basis on the number of micro-hydro schemes already identified to be commissioned during the first two years of RERL implementation. The program districts within the cluster have been mainly selected based on the analysis ongoing micro-hydro schemes in a district which are at different stages of installation by 2012 to meet the GoN/AEPC targets under WB's commitment. Other criteria use for district selection include: number of years of IEDP programmes implementation in a district, suitability to government priority and AEPC's programme coverage, accessibility and commitments for funding support by DDCs. The ranking of districts by selection criteria is given in Annex 4.

Planned Power Generation
Cluster 1
Far Western Region
Total capacity 1100 kW
Cluster 2
Mid-western region
Total capacity 1232 kW
Cluster 3
Central and Western region
Total Capacity 923 kW
Cluster 4
Eastern region
Total capacity 1667 kW

The reasons behind establishing field offices are to strengthen programme implementation and monitoring support at the district and community level. The cluster field offices are expected to play key role in formulating regional level energy plans, strengthening partnership with other projects and programmes within the region for RE promotions, insuring quality of energy systems installed at community level and facilitating support from the centre and other partners for implementation of priority district energy plans and projects. However, with respect to the opening of new RERL field offices, the programme will take phased approach. In the first phase till end of December 2011, the programme will do an assessment of existing field offices of RE programmes implemented by AEPC and AEPC future plans to establish regional offices, and accordingly identify suitable locations and staffing need for RERL field offices. Based on the worked out and finalized jointly by UNDP and GoN/AEPC. The second phase of the programme will start from the beginning of 2012 and by end of the first quarter of 2012. the four cluster offices will be set up and made fully operational.

The cluster approach of the programme implementation through field offices will support gradual institutionalization of the best practices for decentralized energy systems within the government, preferably with Ministry of Local Development and DDCs through technical support by AEPC. One of the visible indicators of the internalization and institutionalization of DEES/DEEU would be the level of funding commitments made by DDCs for implementation of energy projects in the districts. In total 26 districts will be covered under RERL for initial two years in four clusters. The 26 program districts are: Darchula, Baitadi, Bajhang, Bajura, Doti, Achham, Humla, Mugu, Dailekh, Baglung, Gorkha, Sindhupalchowk, Kavre, Dhading, Raswa, Ramechhap, Sindhuli, Sarlahi, Okhaldhunga, Solukhumbu, Sankhuwashaba, Taplejung, Panchthar, Khotang, Bhojpur and Udaypur.

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Renewable Energy for Rural Livelihood (RERL) Programme
P.O. Box 107
Khumaltar, Lalitpur, Nepal
Tel: 977-1-5547609 / 5544146
Fax: 977-1-5544576

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