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National Climate Change and Environment Fund (FONERWA) Full Project Document (PD)

COVER SHEET (Attach this sheet to the front of your submission. Please do not exceed one A4 side of paper.)

Project Title Zero Carbon Affordable Housing for Rwanda

Project Summary (In 75 words or less please summarise what your project intends to achieve and how)

This project will develop flexible single and multi-storey housing solutions to supply low-carbon that can be pre-fabricated, mass-produced and constructed for a target cost of 250 USD per sqm. The housing solutions will demonstrate the optimum use of locally manufactured building material and will satisfy the low carbon demands of the National Green Growth and Climate Resilience Strategy, as well as the high-density requirements of the Kigali Master Plan. The innovative housing solutions will be showcased by way of a demonstration building in Kigali.

Anticipated Start Date (DD/MM/YYYY)

01/08/2015

Project Duration (in months)

12 months

Funding Requested (RWF) 158,911,350 RWF

Name of Lead Organisation

Zero Carbon Designs Ltd, Rwanda

Type of Organisation, which best describes the Lead Organisation (please select only one box)

Government Institution

Non-Governmental Organisation (NGO)

Private Sector Enterprise

Academic Institution

Other (please specify)

Partner Institutions Strawtec Rwanda and Ethiopian Institute of Architecture Building Construction and City Development (EiABC)

Full Office Address PO Box 1791, Nyarutarama, Kigali

Website Address (if applicable)

N/A

Contact Person (the person who will have ultimate responsibility and be accountable for delivering this project)

Name: Eckardt MP Dauck Position: Chairman, Zero Carbon Designs Ltd Email: e.dauck@strawtec.com Tel: +250(0) 786 486 844

For Internal Purposes Only: To be Completed by the Fund Manager

Date Received: _________________ PD Code: __________________

Date Comments Sent: ____________

PPD Code:______________________ Feasibility Study? (Y/N) ______________ Thematic Financing Window: _____________________________________ FONERWA Entry Point: ___________________________________________ Technical Appraisal Score: ______ Rank: _____

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National Climate Change and Environment Fund (FONERWA) Full Project Document (PD)

(Please provide a complete answer to each question, even if the answer is duplicated elsewhere. This PD should not exceed 35 sides of A4 size paper.)

SECTION 1: INFORMATION ABOUT THE APPLICANT

Q 1.1 What is the Lead organisation's total number of full-time employees?

The lead organisation, Zero Carbon Designs Ltd, is a recently incorporated Rwandan company (please refer to the certificate of incorporation issued by Rwanda Development Board as Appendix 1) and is a subsidiary company of Fischer Architekten GmbH.

Fischer Architekten, the parent company, was founded in 1966 (GmbH since 2005), and is a large consulting, engineering and planning business with offices in Berlin, Mannheim, Köln and Dubai. Fischer Architekten GmbH currently employs a staff of 30, and the company has implemented projects throughout Europe, as well as international projects in Dubai, China and Uganda.

After nearly 2 years of business development within Rwanda, Fischer took the strategic decision to establish a permanent base in Rwanda, hence the incorporation of Zero Carbon Designs Ltd. Fischer will be actively involved in the Rwandan business, providing on-going financial, technical and operational support through well-established systems.

Although Zero Carbon Designs Ltd currently has just two direct employees, it is a fully operational business and is currently working on a number of construction projects in Rwanda. Zero Carbon Designs already has an established local presence with an experienced administrator/project manager and a senior civil engineer, both of whom are presently employed on a consultancy basis. Please refer to Q1.3 below for key personnel.

In addition to the permanent presence, the Chairman of Zero Carbon Designs Eckardt Dauck spends over 4 months per year in Rwanda, working on business development and providing management support to the Rwandan operations.

Q 1.2 What is your organisation's experience of managing similar projects or activities (please explain why you think your organisation and partners are capable of managing the project)?

Lead Organisation

The partners of Zero Carbon Designs, Claus Fischer and Eckardt Dauck, are currently engaged in Rwanda, bidding for the realization of some of the city development plans, and have worked together for over 3 years with a focus on innovative construction systems.

Eckardt Dauck is involved at a high-level in the development of Rwanda’s affordable housing policy and he has an extensive network of government ministers and private sector organisations contacts, as well as valuable contacts within the Rwanda Housing Authority (RHA) and the Ministry of Infrastructure (MININFRA). Through these connections, comprehensive discussions have already taken place relating to optimal housing typologies and design in Rwanda.

Claus Fischer presides over an interdisciplinary team of 40 staff at Fischer Architekten, offering project management, building and urban planning, structural design and technical support to their clients. Fischer Architekten have developed the master plan, building design and project-managed the construction of projects up to a value of approximately 100m USD, delivering turnkey solutions to their clients. Fischer Architekten has professional operational, cost and appointment management systems in place to ensure that each of the projects and contracts that they manage meet budgetary expectations.

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Zero Carbon Designs brings significant project management experience with two members of the team dedicated to this function. Amanda Humphries (Project Executive) is already project-managing a Public Private Partnership with the German organisation Gesellschaft für Internationale Zusammenarbeit (GIZ) to provide capacity building to farmers and construction workers in Rwanda, and Nelly Nkunda (Project Manager) has experience in managing new business development, and recently project-managed a real estate development in Rwanda.

In addition, Zero Carbon Designs has the full support of a ‘back office’ in Europe, with integrated financial, administrative and client management systems.

Zero Carbon is focussing on the development of affordable mass housing solutions for Rwanda, and this project is needed to enable Zero Carbon to get local market feedback, to develop prefabrication systems, and to test the local market via a demonstration building. In order to provide clarity, Strawtec will supply the local building materials and Zero Carbon will implement the pre-fabrication business to supply affordable mass housing.

Project Partners

The Ethiopian Institute of Architecture, Building Construction and City Development (EiABC) has worked extensively with strawboard construction, and in 2012 partnered with the Bauhaus University Weimar (Germany) and Strawtec Building Solutions in the research project ‚Welcome to Africa’. The outcome of this project was the construction of the strawboard Sustainable Emerging City Unit (SECU) on the university campus in Addis Ababa and the two-storey building now serves as a university guesthouse.

Scientists and students from EiABC are currently working on the first fully Computer Numerical Control (CNC) fabricated building in Ethiopia. This international research project is focused on a customized, digitally fabricated G+1 housing unit, joining traditional wood construction with contemporary CNC fabrication techniques.

Strawtec has been at the forefront of the manufacturing and development of strawboard technology in Europe since 2011, and its primary focus has been to refine the strawboard production process and to develop and test innovative applications of strawboard for buildings. The straw-core building material has been certified to comply with relevant standards in Germany and the UK, and Strawtec has already constructed model buildings in Germany and France, with Fischer as the planning bureau, to prove the feasibility of the technology.

Strawtec is currently in the process of establishing a manufacturing facility in Rwanda for low carbon building materials, and has acquired a plot within Kigali’s Special Economic Zone on which to construct a custom-design factory. Strawtec has already secured the supply chain for the manufacturing process and will be fully operational during Q1 2015.

It should be noted that Strawtec is investing in excess of 8m USD into the manufacturing facility in Rwanda and is in no way dependant on this project, having already established a market for the building material. In its capacity as project partner, Strawtec will supply the required strawboard panels and contribute know-how in terms of construction with strawboard.

Q 1.3 List the name, position, and email of key personnel involved in the project, such as the project executive,

project manager, and core technical staff. (Provide a CV for each of the key personnel as an attachment to this PD)

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Eckardt Dauck (Chairman/Director of Lead Organisation) – Project Director for this project - has more than 20 years experience in management, strategic planning, corporate finance and capital raising. He started in career in corporate finance and capital markets at Deutsche Bank and Swiss Bank Corporation. He has a B.Sc Economics degree from Trent University in Canada and holds an MBA from the Rotman School of Management, University of Toronto. Before founding Strawtec Group AG in Germany, Eckardt was CEO and shareholder of Stramit UK, a strawboard manufacturer that successfully operated in the UK market for a number of years. Email address e.dauck@strawtec.com CV attached as Appendix 2 Claus Fischer (Managing Director of Lead Organisation) completed his Diploma in Engineering and Architecture in 1998, going on to study Conceptual Design in Switzerland before completing his Diploma in Engineering of Business Administration in 2008. Claus has been Executive Director of Fischer Architekten GmbH since 2006. Email address claus.fischer@werkstadt.com CV attached as Appendix 3 Amanda Humphries (Finance Director of Lead Organisation) - Project Executive for this project - has over 20 years of leadership, finance and operational experience in a variety of industries. Most recently, Amanda led the finance and operations functions during the rapid growth of a UK private healthcare company from 150 employees and a turnover of £3.1m to over 2,500 employees and turnover in excess of £100m. Amanda was instrumental in preparing and completing a £400m group refinancing exercise in 2008 and was responsible for maximising and sustaining on-going business performance for the group. Amanda has lead a finance team of over 40 employees within one of the UK’s largest insurance companies and holds a Postgraduate Diploma in Management Studies from University Campus Suffolk. Email address a.humphries@strawtec.com CV attached as Appendix 4 Nelly Nkunda (Project Manager of Lead Organisation) is a Belgian/Rwandese national with experience in finance, public relations and project management. Since completing a Diploma in Business and a Bachelor of Arts in Communication in 2012 in Belgium, Nelly has lived and worked in Rwanda, with a focus on project management and business development in the private sector. Email address n.nkunda@strawtec.com CV attached as Appendix 5 Core Technical Staff Nathan Gauthier (Sustainability Expert) is a partner in EA Buildings, a sustainability company based in Boston, and during the 8 years that Nathan ran the green building program at Harvard, he gained experience in a number of agri-fiber products. Nathan is actively involved in the US Green Building Council, formerly as a board member, and is currently chair of the Energy and Atmosphere Technical Advisory Group. Nathan lives in Kigali and is currently providing site supervision/overall quality assurance for 15 UNICEF schools in Rwanda. Email address nathan.gauthier@ea-buildings.com CV attached as Appendix 6 Prof. Dr. Ing. Dirk Donath (Project Manager for Prefabrication System Development) is a full associate university professor in architecture, serving at the faculty of architecture at Bauhaus University Weimar, as well as visiting professor and chair of building construction at EiABC. Dirk was project leader for the construction of the SECU in Addis Ababa during 2012 (see details in Q1.2) and is currently heading a

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research project to develop a digitally prefabricated wooden 2-storey structure. Email address donath@uni-weimar.de CV attached as Appendix 7 Kai Becker (Master Carpenter) - Construction Manager for this project - studied civil engineering in Siegen, Germany and qualified as a Master Carpenter in 2005. Kai has worked as a technical consultant for Strawtec since 2010 and has significant hands-on experience of construction with strawboard. Email address kai.bec@t-online.de CV attached as Appendix 8

Q 1.4 Lead Organisational Finances. Provide a copy of these from the most recent audited annual accounts

(income and expenditure statement & balance sheet in RWF, as well as the main sources of funding) as an attachment to this PD.

As explained in Q1.1 above, the lead organisation Zero Carbon Designs Ltd is a recently incorporated Rwandan company, which is supported operationally and financially by the parent company, Fischer Architekten GmbH.

Due to its recent incorporation, there are currently no audited annual accounts available for the lead organisation, but the audited accounts for the parent company Fischer Architekten GmbH for both 2011 and 2012 are duly attached as Appendix 9 and 10 respectively.

As you will note from the audited accounts, Fischer Architekten achieved a turnover in excess of 1,9m € in 2011, increasing to 2,6m € in 2012.

SECTION 2: INFORMATION ABOUT THE PROJECT

Q 2.1 Why is the project needed (clearly state the problem this project will address and the evidence base for its justification? Where possible, refer to international, national and/or sectoral strategies.) ?

This project is needed in response to meet Government of Rwanda (GoR) benchmarks for Low Carbon Development, GoR second Economic Development and Poverty Reduction Strategy 2 (EDPRS 2) goals of economic development through sustainable urbanization and affordable housing. It will support implementation of the City of Kigali Master Plan. It will also address real practical need for housing and answer several research questions that have stifled housing development in Rwanda. It will demonstrate the interface between neighbourhoods/housing and economic development by creating green jobs and designing spaces for small-scale enterprise in housing. Finally, it will create a process that incorporates local knowledge and demonstrates “home grown solutions” to achieving these goals.

This project is needed as a direct result of the shortfall in low cost housing in Rwanda, which is now a national priority. According to the EU-financed report published in June 2012, ‘Housing Market Demand, Housing Finance and Housing Preferences for the City of Kigali’, total housing demand in Kigali is estimated to be 344,068 dwelling units (DU) between 2012 and 2022. We are not aware of any viable, low carbon alternative solutions currently available to address this major shortfall through mass production.

Priority 4 of the ‚Economic Transformation’ area within EDPRS 2 confirms that housing demand is highest among low-income earners making up more than 90% of the demand and Kigali City alone is projected to require at least 35,000 housing units annually. In order to support this priority, EDPRS 2 has now set high-level objectives to ensure families have access to viable financing options and to explore supply options for affordable housing.

Furthermore, the construction sector is marked by a strong dependency on imported materials (e.g. cement, steel) and this project will actively utilise and promote locally available material.

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Q 2.2 What change is this project intended to achieve (state specific objectives, expected results/impact and long-term legacy. To address the core environment and climate change objectives of the project, it would be helpful to refer to national and sectoral climate change and environment objectives. Provide measurable indicators, within a log-frame matrix. In addition, make a note of the expected impacts on employment and poverty reduction, as well knowledge and technological transfer.)?

The specific objectives of the project are to develop low-carbon, affordable dwelling units that will be acceptable to the target markets and that can be mass-produced via prefabrication in Rwanda, to demonstrate and evaluate the units through the construction of a prototype building and to engage with potential end-users and other stakeholders to develop innovate designs that will reduce housing costs further.

The long-term legacy of this project in Rwanda will be the significant contribution to carbon reduction and poverty reduction through the supply of low carbon affordable housing and the creation of jobs/small scale enterprise.

An initial quantification based on the construction of 1500 dwelling units of 50sqm indicates that the potential annual reduction in carbon emissions as a result of this project will be 9,750 tonnes (reducing from 9,750 tonnes to zero tonnes); please note that more detailed information about this calculation is illustrated in Q2.13. To put this into context in terms of the Fonerwa M&E Results Matrix (2012-2018), the specific target for Fonerwa relating to Co2 emissions avoided by June 2018 is 580 tonnes; this project has the potential to single-handedly achieve the target for Fonerwa more than 15 times over.

As a direct result of this project, the dwelling units will be mass-produced through the introduction of prefabrication techniques to Rwanda, thus providing a viable solution to the major shortfall in affordable housing in Rwanda, which is now a national priority.

Based on the current availability of local materials, 1500 dwelling units could be constructed per annum, but the strawboard production business is fully scalable, resulting in the potential to significantly increase the supply of material affordable dwelling units.

In terms of affordability, one of the anticipated results of this project is to reduce the baseline construction cost per square meter by over 35% from 388 USD to 250 USD (baseline quoted by MININFRA for G+4 buildings - National Economic Growth and Poverty Alleviation Integrated Concept May 2014).

The availability of affordable, suitable housing is critical to poverty reduction and is vital to prosperous and vibrant communities; without such a foundation, individuals are unlikely to succeed in training and employment, to be able to have a healthy lifestyle or address other challenges they may face.

Furthermore, the engagement of focus groups representing lower-income segments of the population will enable the project to analyse and assess the level of market acceptance potential for co-housing models with shared communal facilities, as well as sweat equity involvement of co-operative members through participation in the construction process or incremental building, thus broadening the potential target market.

Poverty reduction will also be assisted by the creation of local green jobs through prefabrication systems development and implementation, and through the construction of affordable dwelling units in Rwanda.

The project objectives are aligned with the underlying priority of EDPRS 2 to facilitate urbanisation in Rwanda, and the project directly supports Priority 5 of EDPRS 2 through the promotion and use of green

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technologies and the development of skills and capacity in the construction sector.

The project will prioritise low carbon construction, as well as typologies to suit high-density urbanisation, which are clear requirements of both the Kigali City Master Plan and the National Green Growth and Climate Resilience Strategy. The provision of affordable housing units to satisfy public demand is one of the key objectives in the Ministry of Infrastructure’s draft Affordable Housing Policy published in March 2014. This project will also fully support the target of the Kigali City Development Plan 2013/2014-2017/2018 to develop 5,000 affordable Housing Units at 5 different sites in Kigali and to identify cheaper alternative construction materials and technologies to make housing affordable.

A log-frame matrix with measurable indicators is included as an attachment. The project will have six outputs,

1. Low carbon dwelling units designed to satisfy high-density requirements

2. Pre-fabricated elements designed and assessed for demonstration building

3. Pilot-scale single and multi-storey buildings constructed using sustainable technology

4. Monitoring & evaluation of project results and communication of lessons learned to promote replication in other areas

5. Project managed efficiently and effectively

6. Project learning done and future direction informed

Output 1 - Low carbon dwelling units designed to satisfy high-density requirements

Architectural, structural and MEP drawings will be produced for single and multi-storey demonstration buildings with a Gross Floor Area (GFA) of 380sqm.

Expected impact - The flexible design of the dwelling units will ensure that the demonstration building meets the high-density demands of both the Kigali City Master Plan and the National Green Growth and Climate Resilience Strategy. The single-storey units demonstrate the potential for shared facilities and the ability to adapt the overall space for individual requirements, and the multi-storey units will demonstrate the potential for reduced build costs, reduced infrastructure costs and reduced requirement for land, thereby ensuring that the dwelling units are as affordable as possible.

Output 2 - Pre-fabricated elements designed for demonstration building

Specific construction elements for prefabrication will be developed and assessed, to prepare for the use of prefabricated elements in the demonstration building.

Expected impact - Site-based construction often suffers from low productivity, poor quality and uncertainty in cost and programme, so the use of prefabricated components significantly benefits a construction project. The introduction of prefabrication techniques and systems to Rwanda will result in additional capacity building within the construction sector.

Output 3 – Pilot-scale single and multi-storey buildings constructed using sustainable technology

Single and multi-storey demonstration buildings will be constructed and finished, including preparation of the site, installation of infrastructure and sub-structure, and construction of all floor levels, roof, windows and doors.

The building plot will be supplied by Strawtec, in order to support this project in Rwanda.

Expected Impact - the construction of pilot-scale single and multi-storey buildings will serve to

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demonstrate the concept of incremental construction and shared facilities, it will showcase the new construction material and raise awareness, most notably to key stakeholders, potential developers, and financial institutions (particularly Rwanda Social Security Board, who have also specifically requested the construction of a demonstration building). The pilot-scale building will also demonstrate the finishes that are available at that price level.

The demonstration building will enable the construction and design team to learn through hands-on experience and to optimise the construction techniques and processes for future projects.

Output 4 - Monitoring & evaluation of project results and communication of lessons learned to promote replication in other areas

As key elements of the project evaluation process, a detailed Life Cycle Analysis will be undertaken in order to verify the anticipated reduction in carbon emissions, and the total number of green jobs will be calculated and categorised.

The final project report will summarise the results achieved (objectives, outcomes, outputs), lessons learned, and make recommendations to Fonerwa on any actions needed to ensure sustainability, replicability and scalability.

Expected impact - The verification of potential reduction in carbon emissions and quantification of green jobs created will provide the required information to assess and communicate to stakeholders the full environmental impact of the project.

Output 5 - Project managed efficiently and effectively

The monitoring and evaluation activities undertaken during the project will include reports to record progress towards the completion of key milestones and achievement of targets. These reports will describe progress on implementation as well as lesson learning, a risk update and an ongoing assessment of sustainability, identify corrective actions if needed.

Progress reports, results and lessons learned from the programme will be periodically disseminated to key stakeholders via focus group meetings.

Progress reports will also include the expenditure report and a work plan and budget for the following reporting period.

Expected impact - The timely provision of results from Monitoring and Evaluation activities will enable the project team to take corrective or enhancing measures as necessary. Regular dissemination of project progress to key stakeholders will raise awareness of the project, encourage a responsive approach and increase the likelihood of market acceptance. In addition, the communication of results and lessons learnt upon completion of the project to key stakeholders will result in new approaches being mainstreamed in local and national planning.

Output 6 - Project learning done and future direction informed

The project will involve working with stakeholders and beneficiaries via resident advisory group meetings to explore the potential for adaptation to lower-income sectors through the use of incremental construction, co-housing, ‘sweat equity’ participation and other methodologies.

Expected impact - The stakeholder and beneficiary involvement will result in a broad range of questions being answered regarding market acceptance of potential adaptations to housing for lower-income segments. Ultimately, these advisory and focus groups will sensitize and educate people about new housing options and solutions that will be needed to meet massive housing demand for low-income segments.

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Q 2.3 How will the project objectives be achieved (include a detailed Work Plan as an appendix highlighting key deliverables and activities and responsibilities. Clearly describe the approach and methodology to be followed and the sequence of activities planned.)?

The proposed approach will emphasise the importance of a local businesses, whereby all material, parts and finishes for the project are sourced locally. The project team is already working closely with Tim Bluthardt, technical director of Rubengera Technical Secondary School to develop solutions for locally produced windows, doors and staircases to supply to projects. The project team will work with local SME’s, providing technical advice and general guidance on local manufacturing and supply chain management.

The proposed approach will also involve stakeholder and beneficiary participation, to build wider ownership, acceptance and to encourage and test innovative ideas for housing and neighbourhood designs and solutions.

A detailed work plan highlighting key activities and responsibilities is attached with the budget and the activities and rationale for these activities is detailed below for each Output,

Output 1 - Low carbon dwelling units designed to satisfy high-density requirements

Based on initial architectural designs, the Environmental Impact Assessment and Construction Permit for the construction of the demonstration building have already been obtained prior to the commencement of the project.

Output 1 is therefore designed to take the next steps to produce detailed architectural, structural and MEP drawings for the demonstration building, along with a corresponding Bill of Quantities. This process requires the use of both architects (junior and senior level) and structural engineers who are familiar with the initial design/concept, the properties of strawboard and the use of other environmental friendly construction materials.

The nature of Output 1 means that the budget of 9,872,500 RWF consists entirely of staff/consultancy time and related costs, and requires approximately 8-9 weeks to complete.

Responsible Individual for Output 1 – Senior Architect

Output 2 - Pre-fabricated elements designed for demonstration building

The elements of the buildings that should be pre-fabricated prior to construction must be fully assessed in terms of design, practicality and structural capabilities – this work requires a senior architect, structural engineer and pre-fabrication specialist, all of whom are familiar with the initial design/concept, the properties of strawboard and the use of other environmental friendly construction materials. Detailed construction drawings for the pre-fabricated elements must then be produced in order to complete this output.

The budget of 11,847,000 RWF for Output 2 therefore also consists entirely of staff/consultancy time and related costs, and some of the work can be carried out simultaneously to Output 1.

Responsible Individual for Output 2 – Pre-Fabrication Expert

Output 3 – Pilot-scale single and multi-storey buildings constructed using sustainable technology

The planned sequence of activities for Output 3 will be,

1. Site preparation/clearance 2. Pour the foundations 3. Pre-fabricate the elements designed in Output 2

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4. Complete the construction works 5. Complete the fit-out and finishes 6. Complete the civil works and landscaping 7. Complete handover of the building

In addition to the use of a site supervisor, who will be on site every day for the duration of the activities, a programme/construction manager will be the responsible individual for Output 3.

Budget for Output 3 – 150,259,450 RWF (69.5% of total budget)

Of the total budget for Output 3, 89% (133,817,250 RWF) is required to fund the construction works activities mentioned above, including all material and labour costs. This equates to approximately 490 USD per sqm for the cost of construction (based on 380sqm GFA)

The remaining 11% of the total budget for Output 3 comprises staff/consultancy costs to cover general site supervision and construction management provided by architects, and specialist supervision and training for the pre-fabrication process and installation, provided by a pre-fabrication specialist and structural engineer.

Due to the relatively small size of the demonstration buildings, the staff/consultancy costs are disproportionately high and the ability to reduce costs through bulk-purchasing are limited. We fully anticipate the cost of construction per sqm and the cost of supervision to significantly reduce for future construction projects.

Please note that the budgets for Output 3 are indicative budgets only, and may be revised depending on final construction and pre-fabrication drawings and techniques, and the Bill of Quantities.

Responsible Individual for Output 3 – Construction Manager (Senior Architect)

Output 4 - Monitoring & evaluation of project results and communication of lessons learned to promote replication in other areas

The planned sequence of activities for Output 4 will be,

1. Kick-off meeting and project preparation 2. Quantification of carbon reduction 3. Quantification and categorisation of direct/indirect green jobs, SME’s and microenterprises created 4. Evaluation of project results and reporting 5. Communication of lessons learnt to Fonerwa via a written report

The budget of 22,168,250 RWF for Output 4 primarily consists of staff/consultancy time plus forecast testing costs of just over 5m RWF for the carbon reduction quantification.

Aside from the kick-off meeting, these activities are planned to take place after the handover of the demonstration building for Output 3.

Responsible Individual for Output 4 – Amanda Humphries (Project Executive)

Output 5 - Project managed efficiently and effectively

The planned sequence of activities for Output 5 will be,

1. Project management, team supervision and support on the project 2. Communication of lessons learnt to stakeholders via press release, website post and event

Due to the nature of the activities within Output 5, the budget of 14,733,360 RWF consists primarily of staff/consultancy time, plus a small budget to cater for an event at which lessons learnt will be presented to stakeholders.

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Responsible Individual for Output 5 – Amanda Humphries (Project Executive)

Output 6 - Project learning done and future direction informed

The planned sequence of activities for Output 6 will be,

1. Set up and chair resident advisory groups comprising Housing Cooperative members 2. Report on findings of residential advisory groups re acceptable low cost housing configurations

The budget of 7,409,760 RWF for Output 6 comprises only staff/consultancy time and includes the cost of a translator to facilitate the process.

Responsible Individual for Output 6 – Amanda Humphries (Project Executive)

Q 2.4 How does the project address cross-cutting issues such as gender and youth?

Sustainable building technology impacts positively on women as it minimises waste, increases energy and water efficiency and reduces CO2 emissions which impact disproportionately on women who are more adversely affected by negative externalities resulting from climate change and energy poverty. Women are disproportionately responsible for the daily activities of household and children, yet they are less likely to have the resources to achieve these responsibilities; so they are important advisors for and beneficiaries of innovative housing/economic development solutions.

The project design incorporates a range of measures to ensure women and youth equally participate in and benefit form the project. For example, the project will create green jobs and businesses and will ensure that a proportion of these are specifically allocated for women and youth and that their professional development is developed during project implementation. In addition, the proposed approach of the project will emphasise the importance of a local businesses, whereby all material, parts and finishes for the project are sourced locally; this includes for example the production or assembly of windows and doors, which may involve a majority of women as it is the case in Addis Ababa. By involving women and youth in this project, the project will build their capacity to learn about and install sustainable building technology solutions thereby increasing the critical mass of women and young people with this expertise in Rwanda.

The project will also ensure that gender and youth issues are mainstreamed in project planning and implementation and will promote gender equity in planning, designing, producing, supplying, and managing the sustainable building solution. Efforts will also be made to sensitise project partners and other stakeholders to ensure that they are aware of the associated gender implications and opportunities associated with green, low cost housing. This will facilitate gender mainstreaming within the project at all levels.

The project design also incorporates an indicator in its log-frame to ensure gender and youth equity. The number of green jobs created will be disaggregated by age and gender to track the progress of the project with respect to employment generation for women and youth.

Q 2.5 Who are the stakeholders affected by the problem, and who are the stakeholders influential in solving the problem? How have they been incorporated and involved in project design and delivery?

The key stakeholders are the Government of Rwanda (RNRA/REMA, MININFRA/RHA, MINECOFIN, Ministry of Labour, State Ministry of Education/TVET, etc.); the City of Kigali (CoK); Government donors and partners involved in climate, urbanization, housing and economic development (DFID, UNHabitat, Global Green Growth Institute, European Union, International Growth Center, GIZ, World Bank); academia including NUR and its many international counterparts already working on housing and urbanization such as Carnegie Mellon University and the German Consortium; the private sector and

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civil society; and the project beneficiaries/housing residents in various income strata (in both red and yellow bands of the Kigali Housing Market Demand Study affordable housing pyramid).

At the GoR level, consultation has already taken place with key stakeholders at MININFRA and RHA, who have agreed to support the project with on-going advice and guidance, particularly regarding their research on housing typologies. Consultation with the RSSB has also resulted in the request for the design of an affordable housing solution.

At the CoK level, consultation has been conducted with the Mayor of City of Kigali and staff of the One Stop Center, who have requested the construction of sample buildings within Kigali. The Project Director has worked extensively with staff at CoK to understand the urbanization, master planning, and housing context, procedures for project development/approval, and objectives of CoK.

At the private sector level, Private Sector Federation has also been engaged with this project from inception. Financial institutions will be invited to become closer counterparts to the stakeholder group. In addition, several local and international architects/engineers are already engaged in the process of urbanization and housing in Rwanda; and many are familiar with the concept of housing construction with strawboard panels. All will be welcome to share work and lessons already learned; and the Rwanda Architects and Engineers Associations will be brought in as key stakeholders to acquire local knowledge and disseminate lessons learned.

Civil society will become an active part of the stakeholder group with targeted actors, such as Rwanda Institute for Sustainable Development, leading the identification of a broad range of relevant stakeholders. These groups will be important to help understand cultural and social housing norms, widely disseminate collective knowledge, and to begin the cultural shift in „mind set“ towards innovative housing solutions.

Perhaps the most influential stakeholders are the end-users of the housing, who will be key actors in the inception, design and development of the project, as well as partners as potential construction crew, residents and long term maintenance responsible for the housing.

All of these stakeholders will be incorporated into the final detailed project implementation plan, all consultation activities (as focus and technical advisory groups), official reporting workshops, and other delivery aspects.

The details of the end-user/beneficiary stakeholder group engagement are detailed in Q. 2.12.

Q 2.6 How will the benefits of the project be sustained after FONERWA funding comes to an end?

The financial benefit of the project has been calculated as the cost savings per sqm for the construction of affordable dwelling units, when compared to the current cost. The financial benefit will be sustained after Fonerwa funding comes to an end through the on-going supply of single and multi-storey dwelling units in Rwanda. The current project estimations and projections are supported by the shortfall in housing within Rwanda, as referenced in Q2.1 of this PD.

The following non-costed benefits will also be sustained after Fonerwa funding comes to an end, through the on-going supply of single and multi-storey dwelling units in Rwanda,

1.Reduction in carbon emissions

2.Poverty reduction through availability of housing and creation of jobs

3.Opportunities for more people in Kigali from high density living

4.Regional competitiveness for Rwanda

5.Capacity building through the introduction of prefabrication techniques

The demonstration building will continue to be key to gaining market acceptance from developers,

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financial institutions and government departments, so when the Fonerwa funding comes to an end, at least 2 buildings will be retained by Zero Carbon to showcase the low carbon, affordable housing concept. Zero Carbon will consult with RHA to produce recommendations for future use of one building by a Government institution, for approval by Fonerwa.

Furthermore, the engagement of specific focus groups in the project will enable the project team to analyse and assess the level of market acceptance potential for co-housing models and sweat equity schemes, with a view to further reducing construction costs to suit the lower-income segments of the population.

Q 2.7 What is the scope for income generation from the project?

The scope for income generation as a result of the project equates to 1500 dwelling units per annum at a target price of 250USD per sqm.

The potential for income generation to supply these units is therefore 18,750,000 USD.

Q 2.8 Preparation: Has a feasibility or pre-feasibility study been conducted (If yes, then please attach a copy to

this PD)?

A feasibility study has not been conducted for this project. Q 2.9 Preparation: Are there any outstanding regulatory or legal requirements that need to be met before the

project can proceed (access to land, planning consent, use of new technologies)?

The land for a demonstration building has been secured, and the project will only commence once an Environmental Impact Assessment has been completed and a construction permit issued to Zero Carbon. There is no further preparation required. Q 2.10 Preparation: Has an Environmental Impact Assessment been conducted for the project (If yes, then

please attach a copy to this PD)?

An environmental Impact Assessment has been carried out prior to the commencement of this project. Q 2.11 How will the performance of the project be monitored and evaluated (both during and after the project)?

The monitoring and evaluation system will be linked to the logical framework, work plans and budgets. The timely provision of results from Monitoring and Evaluation activities will enable the team to take corrective or enhancing measures as necessary. Overall responsibility for monitoring and evaluation will rest with Zero Carbon Designs Ltd. Outcomes and outputs will be monitored during the project with data collected, compiled and analysed on a regular basis.

Monitoring and Evaluation will be infused into the on-going project through engagement of beneficiary and stakeholder groups, as noted in Q 2.12.

Other monitoring and evaluation activities will include Project Progress Reports prepared by the Zero Carbon Designs Ltd on a three monthly basis to record progress towards the completion of key milestones and achievement of targets. These reports will describe progress on implementation as well as lesson learning, a risk update and management and an ongoing assessment of sustainability, identify

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corrective actions if needed and acceptance of project interventions by the stakeholders. The report will also include the expenditure report and a work plan and budget for the following reporting period. The final project report will summarise the results achieved (objectives, outcomes, outputs), lessons learned, and make recommendations on any actions needed to ensure sustainability, replicability and scaling up.

Monitoring results will be disseminated in a user-friendly format and timely manner to project stakeholders by Zero Carbon Designs Ltd. to enable a responsive approach to implementation and allow for troubleshooting of any problems to ensure smooth implementation of project activities.

Q 2.12 How will you involve the beneficiaries and other stakeholders in monitoring and evaluation?

Beneficiaries and other stakeholders will be key participants in the project, especially potential residents of the future housing projects. Their close involvement is one of the most innovative aspects of the project, as it will inform a broad range of research questions through an advisory engagement/ “user acceptance” process throughout the project.

Please refer to the extract from Housing Market Report Executive Summary (attached as Appendix 12) for the following income and housing demand statistics. The project will set up resident advisory groups comprised of Housing Cooperative members in two income strata:

1. Those who can afford housing in the $10,000-$15,000 price range (earning approximately 400,000-500,000RWF per month. According to the Kigali Housing Market Demand Study, these beneficiaries are in the “red” band that will ultimately be serviced by the mortgage market, and they have formal government jobs and incomes. According to the KHMD study, there are approximately 15,000 DU demanded in this strata, so it is not the largest demand strata. However, because there is limited supply for this group, they are also living in housing that could be accessed by lower income earners, so this will open up housing for that strata (World Bank Housing Study 2012).

2. Those who can afford only approximately $5000 in housing costs. These people earn in the range of 100,000 to 200,000RWF per month in the lowest end of the formal economy and mostly in the informal economy. While this might seem like very low income, it is the top rung of the “yellow” band of the Kigali Housing Market Study, the “affordable housing” category. There are over 80,000 DU needed in this strata alone. Between Rwf 100,000 and the poverty line, there is an additional demand of approximately 150,000 DU. By establishing an advisory/focus group from this income band, it will become possible to solicit input and innovative design solutions that can be adapted to this income level. It will also identify the absolute lowest cost of providing “housing solutions” to this income stratum. This will help the GoR identify the key policy, legislative, financial and other solutions needed to bridge the gap between people “ability to pay” and the technical construction costs.

The beneficiary groups will participate in answering research questions, such as,

- Will people accept the strawboard and other construction technology solutions being proposed?

- What dwelling unit typologies can be developed that correspond to people’s lives and needs?

- What unique solutions can be designed into the project and site designs that will further reduce per DU cost? Such as cooperative kitchens, bathrooms/showers, child care/playgrounds, teenager study areas, group social/television rooms, etc. In reality, people are already using many innovate collective solutions in Kigali and the options and alternatives that can be innovated have yet to be explored and tested.

- What solutions can be designed into the projects that will help build economic incomes (thus using housing as a driver or producer of economic development, not just as a consumption element)? Such as

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spaces for small producers of furniture or seamstresses, garage mechanics, small business/traders, computer/office labs, etc. Each stratum noted above will have different desires and can demonstrate housing project solutions for their own category.

- What is the capacity and skill set of the beneficiaries to reduce costs in terms of assisting construction with “sweat equity”? There is very little understanding of how modular housing can be designed in such a way that maximizes ability of people to reduce cost by helping with construction. Furthermore, what are the opportunities to train demonstration groups will go on to become “trainers of trainers”, thus scaling up the construction industry and building small scale enterprise.

- What are the options to reduce risk and costs with self-administration and long-term maintenance protocols? There is little understanding of the degree to which housing residents can manage their housing administration in the long run, and what capacity building they will need to develop these skills. Answers to these questions will inform TVET and Rwanda Cooperative Board in their support for Housing Cooperatives.

Ultimately, these advisory and focus groups can also form part of the communication strategy that will be set up to sensitize and educate people about new housing options and solutions that will be needed to meet massive housing demand.

Q 2.13 Which Output from the FONERWA's overarching M&E framework will be contributed to in the project's M&E Framework (if possible choose an indicator from FONERWA's M&E framework)?

Output 3 Indicator 3.2: Tonnes of Co2 avoided - through the use of locally produced building material that has zero or negative carbon footprint.

An initial quantification of the anticipated tonnage of Co2 emissions avoided has been undertaken by Nathan Gauthier (methodology and results attached as Appendix 11). The quantification indicates that for a 2.5 storey building of 60sqm built using strawboard panels, there will be 7.816 tonnes of Co2 emissions avoided when compared to conventional construction.

Based on construction of the demonstration building (GFA 380 sqm), it is estimated that there will be 49.5 tonnes of Co2 emissions avoided, which is already over 28% of Fonerwa’s target for Co2 emissions avoided in 2015.

As an integral part of Output 4 of this project’s log-frame matrix (monitoring and evaluation of project results), a more detailed Life Cycle Analysis will be undertaken to verify the exact quantification.

Output 3 Indicator 3.3: Green jobs - local green jobs are created through prefabrication and through the construction of affordable dwelling units.

As an integral part of Output 4 of this project’s log-frame matrix (monitoring and evaluation of project results), the number of green jobs created will be quantified and categorised during the project.

Q 2.14 Lesson Learning: Please explain how the learning from this project will be disseminated and shared

during (and at the end) of the project, and to whom this information will target (e.g. Project stakeholders and others outside the project)

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Lessons will be captured primarily through the Monitoring and Evaluation system, which will provide regular monitoring of project indicators, as well as progress against the key milestones. The project also includes an output that specifically focuses on measuring and sharing project results and lessons learned (Output 4).

Results and lessons learned from the programme will be periodically disseminated to key stakeholders using a variety of media (briefing notes, website as well as through existing information sharing networks and forums) so that new approaches can be mainstreamed in local and national planning. A lesson learning exercise will also be included in the final report at project completion.

Q 2.15 Risk Management: Please outline the main risks to the successful delivery of this project indicating whether they are high, medium or low. If the risks are outside your direct control, how will the project be designed to address them?

After undertaking a risk assessment, the following risks to the successful delivery of this project have been identified and assessed,

1. Materials are not delivered on time to site

The strawboard manufacturing facility will start operations in Kigali during Q3 2015, therefore the strawboard panels will be available locally. Should there be a delay in the start of operations in Kigali, Strawtec would be willing to supply the necessary strawboard from Europe, although this may have budgetary implications.

Probability of risk happening MEDIUM Impact if the risk does happen MEDIUM

2. Over-run on construction (cost and time)

As detailed in Q 1.2 and Q1.3 above, Zero Carbon Designs has significant expertise in project management, cost control and construction management of large projects, both locally and in the form of support from the parent company. In addition, there will be a member of the project team dedicated to site supervision and training during the construction of the demonstration building.

Probability of risk happening LOW Impact if the risk does happen MEDIUM

Q 2.16 Risk Management: What specific risks, if any, does your project pose to the environment, people or

institutions affected by the project and how will these be managed and mitigated?

The mitigation measures are illustrated at the answer to Q 2.15. In addition, the results and measures of the EIA that has been undertaken will identify any specific risks to the environment, from which mitigation measures will be developed and adopted. SECTION 3: PROJECT BUDGET AND VALUE FOR MONEY

Q 3.1 What is the total cost of the project (RWF; provide total cost for each year of the project disaggregated by capital and recurrent expenditure)?

The total cost of the project is 216,290,320 RWF (all capital expenditure).

For an analysis of the total project budget by quarter, please refer to the attached budget sheet.

Please refer to Q2.3 above for budgeted costs per Output.

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Q 3.2 What is the total amount requested from FONERWA (RWF; provide financing needs for each year of the project)?

The project duration is one year and the total amount requested from Fonerwa is 158,911,350 RWF (73,5% of total project cost) Q 3.3 List all other sources of funding. Note whether the status of other funding sources (i.e. Whether the

money has been approved or is awaiting authorisation)

Zero Carbon Designs will provide 100% of the match funding for the project, as well as any additional funding that may be required. This funding is already secured. Q 3.4 Additionality: Explain why the project cannot be fully financed by other sources than FONERWA?

The project provides additionality most notably in two areas,

1. The baseline estimated carbon emissions for a 2-storey 60sqm dwelling unit of conventional construction has been calculated at 7.816 tonnes; the estimated carbon emissions based on the construction of the demonstration building will be reduced to zero.

2. The baseline construction cost per square meter for affordable housing based on conventional construction is estimated by MININFRA at 388USD; after completion of the project, it is anticipated that the cost of construction can be reduced to 250USD.

In terms of alternative funding sources for the project, we have worked closely with a private equity advisory company in Rwanda, who have strongly advised us that the funding of private sector development and demonstration projects such as this would not be of interest to potential private equity investors. Similarly, the project would not be eligible for bank funding.

As identified by Fonerwa, private sector financing is typically unavailable to bring a transitioning business idea from R&D to demonstration, as with this project, and the Fonerwa innovation grant windows were established exactly to address this challenge.

Q 3.5 What non-financial support is needed to implement the project? What is the best way for FONERWA to deliver this support?

The project would benefit from the continued support from Fonerwa as follows,

- Assistance with the establishment of mandates that cover the contribution and participation of stakeholders and beneficiaries

- Assistance with stakeholder participation in terms of beneficiary engagement and periodic workshops that will be hosted by Zero Carbon Designs to present the quarterly update reports (part of the M&E process)

- Provision of a technical expert to assist with the refinement and finalisation of the M&E process

- Provision of a communications expert to assist with the development of a targeted communication strategy for the project and its outcomes

- Collaboration with private/government enterprises that have been successful in the Fonerwa selection process, with whom we share common interests/objectives

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Q 3.6 Value for Money (Economy): i) Briefly describe how the required inputs have been identified and how the GoR procurement

procedures will be used to ensure they are obtained cost effectively ii) Provide identified unit cost measures or selected project outputs? (Please see VfM guidelines on how

to determine these. Further guidance from the FONERWA Secretariat is available)

The project will comply with the procurement policies and procedures of Zero Carbon Designs to ensure that inputs are procured and utilised efficiently.

Wherever possible, construction materials and tools will be procured locally to save potential shipping costs.

Unit costs are provided below for 1 input based on output indicators from the M&E framework,

Output Indicator 3.2: tonnes of carbon emissions reduced - based on global per-tonne market price for CO2, the unit cost would be approximately 5USD per tonne

Q 3.7 Value for Money (Efficiency):

i) Briefly explain how the provision and operation of project inputs produce the expected outputs ii) What is the Net Present Value (NPV) and benefit cost ratio for this project (Please see VfM guidelines

on how to determine these measures. Further guidance from the FONERWA Secretariat is available)? 62% of the total project budget has been allocated directly to the materials and labour required for the construction of the pilot scale building, which reflects the demonstration element of the project.

The secondary input required to deliver project outputs is staff and consultancy time (plus related costs), which accounts for 36% of the total budget. This significant investment of project resources into personnel reflects the required ‘implement and evaluate’ elements of the demonstration grant window. It also means that there is a dedicated, specialist project manager to supervise the prefabrication phase of the project, and the construction of the demonstration building will be well supervised, built to budget and will be used as an opportunity to build capacity within the construction sector.

Consultancy inputs bring external expertise into the project for specialised inputs such as the development of a structural testing programme and the development of prefabrication techniques.

A Cost Benefit Analysis (CBA) is attached with the budget and includes assumptions and sources of values used. A timeframe of 10 years was used, with a discount rate of 10% in the CBA to calculate a NPV of 32,997,964,787 RWF and a BCR of 131.

The project will also generate benefits that have not been valued and included in the NPV and BCA. These include the following non-costed benefits,

1.Reduction in carbon emissions 2. Poverty reduction through availability of housing and creation of jobs 3.Opportunities for more people in Kigali from high density living 4.Regional competitiveness for Rwanda 5.Capacity building through the introduction of prefabrication techniques

Q 3.8 Value for Money (Effectiveness):

How does your project demonstrate effectiveness: - How will it show the outputs meet the project objectives? - Which indicators will you measure to demonstrate effectiveness?

The projects aims to develop, construct and evaluate single and multi-storey low-carbon, affordable dwelling units in Kigali with project interventions grouped under 2 outputs (deliverables):

1.Pilot-scale single and multi-storey buildings constructed using sustainable technology

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2.Consultation with stakeholders and beneficiaries, evaluation of project results and communication of lessons learned to promote replication in other areas

The following indicators will be used to demonstrate the project’s effectiveness in terms of achieving the desired outcome:

1. Low carbon single and multi-storey dwelling units constructed; and 2. Cost per dwelling unit (USD per sqm).

Indicator one will demonstrate the effectiveness of the design, prefabrication and construction of the demonstration building, while indicator two reflects the affordability aspect of the new dwelling units.

If the targets for these indicators are achieved then the project will have achieved its objective of developing, constructing and evaluating low-carbon, affordable dwelling units in Rwanda.

ATTACH ANNEXES HERE TO THE PD APPLICATION – these can be accepted as separate files but

clearly organise and identify the annexes so they are easy to refer to.