Armenia Renewable Resources and Energy Efficiency Fund started its operation since November 2005. It implements grant and credit projects targeted at the development of Energy Efficiency and Renewable Energy sectors in Armenia.
 
 

1.1 Technical assistance

The technical assistance targets at facilitation of investments in the heating sector through diverse mechanisms, specifically:
  • Amendment of legal and regulatory framework;
  • Public outreach campaigns;
  • Direct advisory assistance;
  • Training.
The overall consulting services under TA component shall be procured in accordance with the Guidelines:  Selection and Employment of Consultants by World Bank Borrowers, dated May 2004, and provisions of the DCA. Consulting services shall be procured using the Bank’s Standard RFP and sample contract. Short lists of consultants for services estimated to cost less than US$100,000 equivalent per contract may comprise entirely of national consultants. 

Consulting services estimated to cost more than US$100,000 and over US$15,000 for single source method shall be subject to WB’s prior review. 
1.1.1 Improvement of legal and regulatory framework

This sub-component will assist in removing existing legal and regulatory barriers that impede the effective and safe functioning of the heating sector. Specifically, a number of legal and regulatory gaps have been identified during Project preparation (particularly during the implementation of the pilot projects), including:
  • Development of policies, norms and standards for natural gas supply and for safe installation of gas and heating infrastructure and supply of services, and certification of heating equipment. This should specify how the relationship between HRGA and the service providers and HRGA and consumers should be regulated and set standards to ensure adequate quality of service and other regulatory aspects of gas supply. In addition, this should include identification of the parties responsible for setting and enforcing standards, certification of heating and metering equipment, and development of standards based on solutions suitable for different types of buildings.

  • Improvement of legal and regulatory framework to make HOAs more functional and to foster market-based provision of heating services, such as transfer of common property of buildings from municipalities to HOAs, granting of access by HOA representatives to apartments to prevent misuse of the services and disconnect non-payers, more straight-forward and simpler decision making and voting mechanisms with an increased role for apartment owners.
Additional proposals on the elimination of legal and regulatory barriers emerging from the deficiencies in the national legislation shall be submitted to the BOT with supporting rationale. 
The BOT shall consider the proposals and verify their conformity with the UHP provisions as well as determine the available financial sources, thereafter take a decision on the expediency and feasibility of the proposed amendments. In case of positive decisions, the state agency concerned jointly with the Fund shall be instructed to prepare and submit to the BOT, within the scope of its authority, the respective terms of reference, cost estimates and bidding documents, with necessary amendments to the Procurement Plan agreed upon with the WB. 
1.1.2 Public Outreach Campaigns
The Fund shall prepare a public outreach program and submit it to the BOT. The objective of the program will be to explain the benefits of available new heating technologies, the need and benefits of using environmentally clean and safe heating solutions, inform the public about safety norms and standards, benefits of the new approaches to community-led provision of communal services, institutional structure for building management, rights and obligations of members of collective organizations and legal matters. As part of the public awareness program, annual exhibits will be organized where safe and clean heating and energy efficiency equipment and technologies will be demonstrated. The public outreach program shall be subject to annual review based on the previous year implementation outcomes.   For the sustainable implementation of broad information campaigns and public education programs, the Fund may involve other organizations specializing in IEC services. 
The Fund shall undertake measures to adapt to field-related IEC activities implemented by other organizations.
1.1.3 Direct Advisory Assistance  
Project beneficiaries will receive assistance in a number of areas, such as preparation of business plans, introduction and promotion of efficient and cost-effective technical heating solutions in buildings, particularly common areas etc, necessary for developing “bankable” investment proposals, structuring financing for the projects and, as needed, managing the commercially sustainable operation of the heat supply.The activities under this component shall be designed by the Fund and reflected in the procurement plan.
1.1.4 Training
Qualification training may be offered to the Fund staff, government officials and respective specialists of local financial institutions and project sub-borrowers. Capacity building training may also be offered to HOAs.   
Areas of trainings cover project management, drafting and assessment of investment projects, usage of available up-to-date technologies, environmental issues, etc.
The Fund shall compile a training plan and submit it to the BOT.
In case of training offers beyond the training plan, the participation fee may be payable from the credit proceeds only upon the BOT approval. 
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