Energy Balance Project Document FINAL

8/2/2019 Energy Balance Project Document FINAL

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Ministry of Industry, Mines and Energy

Cambodia

Ministry for Foreign Affairs

Finland

Capacity Development for Energy Balance Construct ion

and Sustainable Energy Planning in Cambodia

Project Document

April 27, 2011


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Table of Contents

PROJECT FACT SHEET 6

EXECUTIVE SUMMARY 7

1 BACKGROUND 11

2 DEFINITION OF INTERVENTION 13

2.1 Problem Analysis 13

2.2 Project Approach 14

2.3 Overall Objectives 16

2.4 Project Purpose 17

2.5 Project Components 17

2.6 Results, Achievement Indicators and Activities 18

2.6.1 Component 0: Project Management 19

2.6.2 Component 1: Establishment of Energy Information System and Database 20

2.6.3 Component 2: Capacity Building for Energy Modelling 21

2.6.4 Component 3: Capacity Building for Energy Planning 22

3 ASSUMPTIONS AND RISKS 24

4 COMPATIBILITY AND SUSTAINABILITY 26

4.1 Compatibility 26

4.1.1 Finnish Development Policy 26

4.1.2 National Strategic Development Plan and Energy Sector Development 28

4.1.3 Statistics Law 29

4.2 Sustainability 30

5 IMPLEMENTATION 31

5.1 Implementation Strategy 31

5.2 Data Collection 31

5.2.1 Demand side data collection 31

5.2.2 Supply side data collection and energy import statistics 34

5.3 Capacity Development and Training 36

5.4 Project Organization 38

5.4.1 Energy Statistics Office, Energy Modelling Unit and Project Management Unit 38

5.4.2 Steering Committee 40

5.4.3 Technical Assistance 41

5.4.4 National Annual Workshop for Policy Planners 42

5.5 Data Collection Working Group 43


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5.5.1 Time Schedule 43

5.5.2 Budget 45

6 MONITORING AND EVALUATION 466.1 Monitoring 47

6.2 Evaluation 47

ANNEX 1: PRESENT SITUATION: ENERGY SECTOR IN CAMBODIA 49

ANNEX 2: TERMS OF REFERENCE OF EXPERTS 63

ANNEX 3: JOB DESCRIPTIONS 66

ANNEX 4: LOGICAL FRAMEWORK 71

ANNEX 5: PROJECT ACTIVITIES 78

ANNEX 6: PROJECT TIME SCHEDULE 85


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List of Abbreviations

ADB Asian Development Bank

ACE

ASEAN

ASEAN Center for Energy

Association of Southeast Asian Nations

CDC Council of Development of Cambodia

CDI Cambodian Development Institute

CNPA Cambodian National Petroleum Authority

CTA

DEDE

DIME

Chief Technical Advisor

Department for Alternative Energy Development and Efficiency of

Thailand

Provincial Departments of Industry, Mines and Energy

EAC Electricity Authority of Cambodia

EBC

EdC

Energy Balance of Cambodia

Electricity du Cambodge

EIS

EMU

EPPO

ESO

FAO

Energy information system

Energy Modeling Unit

Energy Policy and Planning Office of Thailand

Energy Statistics Office

Food and Agriculture Organization of the United Nations

GDP Gross Domestic Product

GERES Groupe Energies Renouvelables, Environnement et Solidarits (French

non-profit NGO)

HEI ICI Higher Education Institutions Institutional Cooperation Instrument

ICT Information and Communication Technology

IEA International Energy Agency

ITC Institute of Technology Cambodia

IPP Independent power producer

JICA Japan International Cooperation Agency

MAFF Ministry of Agriculture, Fishery and Forestry

MEF Ministry of Economy and Finance

MFA Ministry for Foreign Affairs of Finland

MIME Ministry of Industry, Mines and Energy

MoP Ministry of Planning

MRD Ministry of Rural Development

MPWT Ministry of Public Works and Transport

NCDD National Committee for Sub-National Democratic Development

NIS National Institute of Statistics


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ONEBC Overall National Energy Balance of Cambodia

PMUPO

RGC

Project Management UnitProject officer

Royal Government of Cambodia

REE Rural Electricity Enterprise

SC

SIDA

TA

Steering Committee

Swedish International Development Cooperation Agency

Technical Assistance

TOR Terms of Reference

UNFCCC

UNDP

United Nations Framework Convention on Climate Change

United Nations Development ProgramWB The World Bank


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Project Fact Sheet

Project Title Capacity Building for the Energy Balance Construction andSustainable Energy Planning in Cambodia

Sector Energy

Sub-Sectors Energy Statistics, Renewable Energy, Energy Planning,Power Sector Planning, Climate Change Mitigation.

Geographical Coverage Cambodia (national level)

Duration: 2011 - 2015 (four years)

Project Financing Total

Royal Government of Cambodia

in kind contribution, approximately 10% of the totalbudget (salary of staff, office, electricity and water)

Government of Finland

EUR 2.3million

1 EUR = 5,683 Cambodia Riels KHR (25 March, 2011)

Competent Authorities Ministry of Industry, Mines and Energy

General Department of Energy

Institutional Framework Steering Committee

Project Management Unit embedded in General Departmentof Energy, MIME

Overall Objective The overall objective is to contribute to planning and

implementing of Cambodian climate change policy and

programmes through development of sustainable energydata and planning system which promotes inclusive growth

and responds to poverty reduction and sustainabledevelopment goals of Cambodia

Purpose To strengthen MIME to be sustainable and capable of

employing advanced techniques, methodologies and

modeling tools in: establishing and managing energy information

system

drawing up plans for energy sector development and

climate change mitigation and adaptationinterventions

prioritizing energy sector and climate changemitigation investments

mainstreaming of gender and poverty in energyplanning..


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Executive Summary

Background

Energy services in Cambodia are inadequate and costly (electricity tariff rates are oneof the highest in Southeast Asia) with electricity supply systems dominantly fossil fuel-

based which contributes to the emissions of local pollutants and greenhouse gases.These are symptomatic to the existence of significant barriers that hinder thedevelopment of sustainable energy supply systems in the country. The lack ofadequate training and capacity building to carry out comprehensive planning, as well as

lack of information, are identified as the main contributing factors to the currentcircumstances of the energy sector in Cambodia. The Ministry of Industry, Mines and

Energy (MIME) requested the Finnish Government for support in developing itscapacity on energy statistics, energy balance and planning.

Problem to be addressed

Biomass will be the dominant energy resource in Cambodia for the short and medium

term, and therefore it is essential to recognize the contribution of wood energy in theenergy balance and to plan for a continued and sustainable supply. This is particularly

pertinent given the disparity in fuel wood resources within and between provinces, andthe significant impact that the lack of access to biomass has on the poor. Also overall

energy and electricity services in Cambodia are inadequate and expensive with supplysystems highly vulnerable to external disruptions and fluctuations of internationalenergy prices and increasingly contributing to local environmental pollution andgreenhouse gas emissions. These are the results of an electricity supply system which

is highly fragmented, less extensive (mainly providing services in large urban centres)and highly dependent on imported fossil fuels. The lack of energy services particularly

those in rural areas and unaffordable energy services in urban areas could undermineeconomic growth and sustainable development of the country.

Project approach

The overall project approach can be described as follows: first the project focuses on

the role of MIME in the National Statistics System by strengthening the capacity ofMIMEs Energy Statistics Office, and second, on the role of MIME in the NationalEnergy Planning by strengthening the capacity of MIMEs Energy Modelling Unit.

Project is based on the assumption that energy planning should serve the overall socio-economic development planning and not function as a separate entity. The inclusion of

socio-economic and environmental aspects in the energy planning requires informationof the interlinkages of these activities and sectors.

For energy balance construction both supply and demand side data is needed, anddata collection methods will cover both bottom-up and top-down approaches.

Objectives and components

The overall project objective is to contribute to planning and implementing ofCambodian climate change policy and programmes through development ofsustainable energy data and planning system which promotes inclusive growth and

responds to poverty reduction and sustainable development goals of Cambodia.. The

project purpose is to strengthen MIME to be sustainable and capable of employingadvanced techniques, methodologies and modeling tools in:


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Establishing and managing energy information system, Drawing up scenarios and plans for energy sector development, and for climate

change mitigation and adaptation interventions,

Prioritizing energy sector and climate change mitigation activities, and Mainstreaming of gender and poverty in energy planning.

To achieve the objectives and purpose, the projects activities and outputs are organizedinto four project components. These are the following:

Component 0: Project Management

Component 1: Establishment of Energy Information System and Database

Component 2: Capacity-building for Energy Modelling

Component 3: Capacity-building for Energy Planning

Coherence, compatibility and sustainability

This project is consistent and compatible with the principles pursued by the FinnishDevelopment Cooperation. While project activities are very specific and related toenergy information and planning, the overarching goal of the project is the development

of a sustainable energy supply system which is sensitive to developmental, energysecurity, climate change and energy access goals of the country. With the energy

information and energy sector development plans, RGC can make decisions andprioritized investments on sustainable energy systems that enhance energy access,

mitigate climate change and fuel economic development of the country. With detailedenergy sector information, RGC could also prioritize energy sector investments and

development that promotes gender and social cohesion and equality as well asmainstream gender in the energy sector.

In addition, the project is not only compatible with the development principles of RGCbut also complements and supports the achievement of the energy sector policy andrural electrification strategies contributing to the overall developmental goals of the

National Strategic Development Plan. Energy information and plans will be used byRGC to prioritize energy investments that achieve and optimize developmental benefits

from improving energy access to stimulating rural development, protecting theenvironment and promoting gender equality. Similarly, energy sector information and

plans will provide the private sector the basis for making decisions to invest in energysector development.

The project also supports the creation of the Energy Statistics Office from the existingSecretariat of General Department of Energy of MIME, and strengthens its capacity inorder to meet its responsibilities and be able to perform its tasks as a designated

statistical unit. Thus the project fulfils the mandate of the Statistical Law and the Sub-Decree on the Organization and Functioning of the National Statistical System. In

addition, by placing the National Institute of Statistics (NIS) as member of the SteeringCommittee, the project further satisfies the requirement of the Law ensuring

coordination between the designated statistical unit and NIS. Energy Modelling Unitenables long-term energy planning.

The project design ensures long-term sustainability of the project:

Pre-conditions related to the creation and staffing of the Energy Statistics Officeand Energy Modelling Unit. The Energy Statistics Office will be created from the


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existing Secretariat Office of the General Department of Energy bystrengthening and redirecting its activities

This project makes sure that MIME will own the project and take the lead in the

implementation of activities through leadership of the Project Management Unit(PMU).

The overall project design emphasises capacity development in data collection,energy modelling and policy planning. Project also ensures learning by doingapproach for the above-mentioned MIME units.

Data Collection Working Group enhances the practical data collection and

cooperation between relevant data producing Ministries. National Annual

Workshop for Policy Planners presents project activities and results as well as

action plan to the high level actors in line Ministries and other organizations,

which also increases information flow between Ministries.

The entities to be strengthened by the project will be providing services to thepublic and private sectors. The information services are required by government

agencies, private sector and non-profit organizations for various activities for

planning, research and investment decisions. The project builds capacity to

respond constant demand for information and planning services.

Project implementation

Project activities implementation will be integrated within the General Department of

Energy which is the main counterpart of the project. The General Department of Energyshall create the Energy Statistics Office from existing Secretariat Office, and the EnergyDevelopment Department shall create the Energy Modelling Unit within Planning Office

as necessary entities for project implementation. Primary data collection is organised incooperation with other Ministries and other organisations through Data Collection

Working Group. The Head of the Energy Statistics Office (ESO) will become the ProjectDirector. This Team will be supported by the projects Chief Technical Advisor (CTA)

who will be the Project Co-Director and by the Project Officer (PO) who will beresponsible for project administrative tasks. The CTA and PO will be engaged by the

Ministry for Foreign Affairs of Finland. This group will constitute as the ProjectManagement Unit (PMU). The PMU will be supervised by a Steering Committee. Theproject is tabled for financing in 2011.

Project beneficiariesThe project beneficiaries are i) MIME (including Provincial Departments of Industry,Mines and Energy DIMEs) whose staff will receive technical support. MIME will also getthe data needed for national energy policy planning and for international reporting (e.g.for ACE and IEA) ii) Ministry of Environment which can use the energy data for nationalcommunication in reporting for UNFCCC; iii) ;Ministry of Planning receives informationon middle and long term energy development for the basis of national policy planning(e.g. National Strategic Development Plan, and National Poverty Reduction Strategy).Government agencies that benefit from the results generated by project includeElectricit du Cambodge, Electricity Authority of Cambodia, and others that will use theproject results as input for their activities. Private entities and investors will also benefitfrom the use of energy information which serves as basis for their investment decisions.

In general, the Cambodian society will benefit from better targeted energy infrastructureplanning and from private sector investments on energy services. Particular attention is


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paid to increasing energy access and affordability of energy services to populationgroups that are easily marginalized, emphasizing productive uses of energy.


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1 Background

Energy services in Cambodia are inadequate and expensive which are symptomatic to

the existence of significant barriers that hinder the development of sustainable energysupply systems in the country. Among the government agencies and ministries in

Cambodia, the Ministry of Industry, Mines and Energy (MIME) is one of thoseinstitutions with limited information concerning the sector and lack of adequate training

and capacity building (both physical and financial) to establish energy informationsystem and energy supply planning. Yet the potential role of MIME in supporting the

RGCs economic growth, environmental and climate change protection anddevelopment goals is enormous.

Compared with other agencies, the National Institute of Statistics (NIS) of the Ministry

of Planning for example, through strong donor support, is able to carry out routinely(every 4 years since 1993 and annually since 2007) Cambodian Socio-Economic

Survey (CSES) which provides excellent data on household expenditure and livingconditions whose trends over the past two decades offer an insight on the developmentof different income groups in the country.

Similarly, the Ministry of Agriculture, Forestry and Fisheries (MAFF) publishes yearlyreports about the state of the Cambodian agriculture including data on produce, yields

and cost. The Ministry of Transportation publishes statistics of vehicles and estimateson fuel consumption. The Statistics Unit of Industry and Mines departments of MIMEalso publish statistics and information concerning industry and mining in the country.

Specific information on electricity demand and generation capacities are howevercompiled and published yearly by the regulatory agency, the Electricity Authority of

Cambodia (EAC). The current energy balance available at MIME does not provide a

reliable national picture since data and information from several institutions and lineministries were collected on secondary data. On the other hand MIME does not havethe financial resources or capacity to carry primary data gathering.

The lack of information and adequate capacity building to carry out comprehensiveplanning are identified as the main contributing factors to the current circumstances ofthe energy sector in Cambodia. MIME requested support to build capacity to develop areliable energy balance for which energy development planning could be built upon.

MIME requested the Finnish Government for support in developing the capacity onenergy statistics, balance and energy planning.The letter sent by MIME to MFA, dated

January 5, 2008 stated the following needs to develop strategic energy planning work

in Cambodia:

Create a network, which coordinates the data collection and construction of

annual energy balance together with local government agencies and industries inCambodia;

Develop the energy planning activities in Cambodia through capacity building;

Construct energy models for planning purposes in order to enhance capabilitiesfor long term scenario building for future energy planning in Cambodia;

Create basis for effective climate policy planning by providing needed databaseand providing capacity building; and,

Develop duration programme and facilitate collaborative research for energybalance construction and energy planning.


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This project document details the response of the Finnish Government to the above-mentioned request.


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2 DEFINITION OF INTERVENTION

2.1 Problem Analysis

Biomass is the most important source of energy in Cambodia and it will continue to be

the dominant energy resource in Cambodia for the short and medium term. Therefore itis essential to recognize the contribution of wood energy in the energy balance and to

plan for a continued and sustainable supply of wood. At the moment 70-75% of totalenergy consumption is based on biomass, mainly fuel wood and charcoal. Households

consume 87 % of all energy in Cambodia. Fuel wood is by far the main source ofenergy for cooking with urban areas shifting to charcoal. Still more than 90% of the

rural households depend on firewood (See Annex 1). Wood fuel energy is also used ine.g. brick and garment industry.

Due to high dependence on biomass and to the significant role of the households intotal energy consumption, in the energy balance construction the central issues are (i)collection of gender disaggregated household level data on energy consumption from

different provinces; (ii) data collection of both supply and utilization of biomass forenergy. This is particularly pertinent given the disparity in fuel wood resources within

and between provinces, and the significant impact that the lack of access to biomasshas on the poor. Deforestation is severe in Cambodia. In some areas it is difficult to find

wood for cooking. Deforestation increases climate change and locally can create e.g.flooding and drought and therefore impact food production. It is essential to establishgood co-operation between the relevant ministries responsible for energy and forestry(especially MIME and MAFF).

Household energy consumption data relates to many socio-economic andenvironmental issues that can be used in policy planning. These include, e.g. the use ofenergy in different socio-economic groups; money spent on energy in different socio-

economic groups; the impact of increases in energy price on the food security; the timeallocated to wood collection; the changes in the access to fuel wood (how rapid

deforestation, reasons for deforestation etc.). There are differences how men andwomen use energy, which mostly relate to their different social roles in the society. Also

problems and priorities relating to energy can be different. Therefore, genderdisaggregated energy data is also needed. Fuelwood for cooking is mostly (but notonly) collected by women who often spent significant amount of time in collecting wood,especially in the areas where deforestation is severe. Women and children are alsooften the victims of indoor air pollution caused by wood fuel burning.

Besides biomass emphasis should be given to different factual and potential renewableenergy sources, including agricultural waste such as rice husk. The role of renewable

energy in energy planning is crucial. At the moment most electricity in Cambodia isproduced by fossil fuels that cause local pollutants as well as greenhouse gases. As

the oil prices are expected to rise rather than decline, this will cause increase in foodprices as well as problems in balance of payments.

Currently energy and electricity services in Cambodia are inadequate and lessaffordable with supply systems highly vulnerable to external disruptions and fluctuations

in international energy prices and increasingly contributing to local environmentalpollution and greenhouse gas emissions. These are the results of an electricity supply

system which is highly fragmented, less extensive (mainly providing services in largeurban centres) and highly dependent on imported fossil fuels. The lack of energy


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services particularly those in rural areas and unaffordable energy services in urbanareas could undermine economic growth and sustainable development of the country.

Various underlying causes to generate these issues were identified such as the

following: i) lack of information and knowledge on the real needs of the diversifiedsegments of the society, ii) lack of information and awareness of the availablesustainable indigenous resources, iii) lack of knowledge on alternative approaches and

mechanisms in energy service provisions, and iv) lack of adequate training to criticallyanalyze, respond and strategically plan and develop energy supply systems.

In addressing these issues, the project will focus on removing these barriers throughstrengthening the capacity of the Ministry of Industry, Mines and Energy in the field of i)energy statistics and information system, and ii) energy and electricity planning.

2.2 Project Approach

The overall project approach can be described as follows: first the project focuses onthe role of MIME in the National Statistics System by strengthening the capacity of

MIMEs Energy Statistics Office (created from Secretariat Office), and second, on therole of MIME in the National Energy Planning by strengthening the capacity of MIMEsEnergy Modeling Unit.

In both approaches, the project provides assistance in the establishment of therespective units, in defining the functions and in identifying the expertise needed to fulfil

their mandates. Various types of trainings will be conducted related to energydatabase and information systems for the national statistics system; and demand

analysis and forecasting, and energy demand-supply balancing analysis for energy

planning system.

Project is based on the assumption that energy planning should serve the overall socio-

economic development planning and not function as a separate entity. The inclusion ofsocio-economic and environmental aspects in the energy planning requires informationof the interlinkages of these activities and sectors. The possibilities to utilise synergiesand avoid trade-offs in the development of different sectors should be taken into

account in the planning by combining indicators from different fields into a coherentplanning framework.

The Cambodian national statistic system contains lot of socio-economic information

from different surveys, but it is not connected to the energy statistical information. The

formulation of energy statistics should take into account the present statistical systemsin order to enable the use of them together. This means e.g. that the sectoral divisionsof the statistical information should follow similar sectors in order to enable the use ofdifferent energy-economic models. The National Accounting uses sectoral divisionindicated in the Box 1:

Sectoral allocation of GDP in National

Accounting in Cambodia

AGRICULTURE, FISHERIES & FORESTRY

Crops

Paddy

Other crops

Livestock & PoultryFisheries

Forestry & Logging 1

INDUSTRY


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Mining

Manufacturing

Food, Beverages & Tobacco

Textile, Wearing Apparel & Footwear

Wood, Paper & PublishingRubber Manufacturing

Other Manufacturing

Non-Metallic Manufacturing

Basic Metal and Metal Products

Other manufacturing

Electricity, Gas & Water

Construction

SERVICES

Trade

Hotel & Restaurants

Transport & Communications

FinancePublic Administration

Real Estate & Business

Other services

Box 1: Sectoral division in National Accounting in Cambodia

For modelling purposes it would be advantageous to use similar sectoral division in

energy data collection in order to be able to link the energy use in different sector to thevalue added produced in these sectors. The revised International Recommendations

for Energy Statistics (IRES) that are being developed by UN Statistics Division,

including the Energy Statistics Compilers Manual, should be followed to the maximumextent within the project. IRES and the System of Environmental-Economic Accountingfor Energy system of UN (SEEA-E) are two complementary and fully coordinated

documents. The IRES principles acknowledge that needs of major user groups shouldbe considered as a starting point and be taken into account to the maximum extent

possible to ensure that the compiled data are policy relevant, meet the needs of theenergy community (both producers and users) and provide a solid foundation for

integration of energy statistics into a broader accounting framework. The IRESguidelines does not support so detailed division of sectors, but for modelling purposes itwould create crucial benefits. However, it has to be taken into account that, in somecases, the costs of extra data collection and organisation may exceed the benefits

obtained.Both demand side and supply side energy data is needed for energy balanceconstruction. Data should be collected annually. Primary data collection is organised in

cooperation with Ministries and other organisations in the most efficient and sustainablemanner through Data Collection Working Group. Members of this working group arethose who are involved in actual implementation of data collection.

Both bottom-up and top-down approaches are used in energy data collection andplanning. In the bottom-up approach it is possible to combine socio-economic and

environmental household level data to the energy use in these households. This makesit possible to use e.g. gender or income specific analysis for supporting energy

planning. Also the household level and gender specific information of health aspects

and environmental issues can be taken into account in the data analysis. The top-downapproach in energy data collection and planning makes it possible to link the energydevelopment to macro-economic and sectoral development planning. This is crucial in


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making scenarios for future demand and assessing the needs for larger scale energyproduction and transmission investments.

In order to guarantee the flow of information at the high level authorities (director and

vice-directors), National Annual Workshop for Policy Planners is organised every yearin order to present the project activities and results as well as work plan for thefollowing year.

The project approach can be described as follows: first the project focuses on the role

of MIME in the National Statistics System by strengthening the capacity of MIMEsStatistical Office, and second, on the role of MIME in the National Energy Planning bystrengthening the capacity of MIMEs Energy Modelling Unit. The project providesassistance in the establishment of the respective units, in defining the functions and in

identifying the expertise needed to fulfil their mandates. Various types of trainings willbe conducted related to energy database and information systems for the national

statistics system; and demand analysis and forecasting, and energy demand-supply

balancing analysis for energy planning system.Vital tools, methodologies and models will be provided related to surveys, analysis and

information system management for the national statistics system, and demandanalysis, and demand-supply optimization for national energy planning system.

In strengthening the role of MIME in both the national statistical system and energy

planning, the project will be involved in the publications of annual energy balance,energy and power statistics and other relevant energy sector information as well aspublication of energy plans.

The project will also adopt a learning-by-doing approach in capacity building. The staffof the Energy Statistics Office and Energy Modelling Unit will carry out the programmed

project activities such as actual surveys, analysis, preparation of energy balances,energy statistics, demand simulation, demand-supply analyses, and preparation ofenergy plans. The role of the consultants will be to provide training on the concepts,analytical frameworks, methodologies, tools and models.

2.3 Overall Objectives

The overall objective is to contribute to planning and implementing of Cambodianclimate change policy and programmes through development of sustainable energydata and planning system which promotes inclusive growth and responds to povertyreduction and sustainable development goals of Cambodia

Specific indicators for monitoring the project objectives are the following:

Increase investment in renewable energy and energy efficiency

Improved access to energy services

Enhanced energy security

Reduction of local environmental and greenhouse gas emissions

These indicators will be verified through the national and regional energy sector andenvironmental development reports.


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2.4 Project Purpose

The project purpose is to strengthen MIME to be sustainable and capable of employing

advanced techniques, methodologies and modeling tools in:

establishing and managing energy information system, and

drawing up plans for energy sector development, and for climate changemitigation and adaptation

prioritizing energy sector and climate change mitigation interventions

mainstreaming of gender and poverty in energy planning.

Specific indicators for monitoring the project purpose are the following:

establishment energy information system in Cambodia with gender-disaggregated statistics where appropriate

MIMEs contribution to the national economic and development planning as wellas to climate change intervention planning process and international reporting

Achievements of Energy Statistics Office and Energy Modelling Unit actionplans

These indicators will be verified through the evaluation study on energy information andplanning; project evaluation of MIMEs statistical office and energy modelling unit;

publications of official documents (energy balance, statistical yearbooks, energy andpower strategy plans) and through MIMEs website; and steering committee reviews.

2.5 Project Components

To achieve the objectives and purpose, the projects activities and outputs areorganized into four overlapping components:


Component 1: Establishment of Energy Information System and Database

Component 2: Capacity Building for Energy Modelling

Component 3: Capacity Building for Energy Planning

Components are represented in Figure 1 below.


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Figure 1: Project components

2.6 Results, Achievement Indicators and Activities

One of the expected results of the project is to develop an Energy Information System.An important feature of the system is that there is a regular production and

dissemination of information on energy statistics, balances and various plans tostakeholders through publications, workshops, presentations, etc. Such information

can also be uploaded in MIMEs website and hard copies will be available in bothEnglish and Khmer to line ministries, NGOs, private sector and international agencies.The structure of the information system is shown in Figure 2.

The results, achievement indicators and activities for each specific component arediscussed in the following sections.


Establishment of Project Management Unit (PMU)Establishment of Energy Statistics Office (ESO)

Establishment of the Energy Modelling Unit (EMU)

Establishment of National Annual Workshop for Policy Planners

Component 1: Establishment of Energy Information System and DatabaseCapacity building for data collection

Establishment of National Energy Statistics for Cambodia

Establishment of Energy Balance for Cambodia

Component 2: Capacity Building for Energy ModellingCapacity building for long term energy modelling and planning

Capacity building for power sector modelling and planning

Component 3: Capacity Building for Energy PlanningCapacity Building for Energy Planning

Preparation Energy Supply/Demand Balancing scenarios and energy strategy plan

Capacity building for electricity demand load scenarios and power strategy plan


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Figure 2: Energy Information System Structure

2.6.1 Component 0: Project Management

The objective of this component is to create the central units, i.e. Project ManagementUnit (PMU), Energy Statistics Office (ESO), Energy Modelling Unit (EMU) and NationalAnnual Workshop for Policy Planners.

Results Achievement Indicators Activities

Established ProjectManagement Unit

Adequately staffed PMUestablished and active

Assigning the space for,tendering the staff positions and

furnishing the PMU

Established Energy Statistics

Office (created from existing

Secretariat Office)

Adequately staffed ESO

established and active

Assigning the space for,

tendering the staff positions and

furnishing the ESO; Nomination

and appointment of 4-6 people

to be trained as statistics

experts

Established Energy Modelling

Unit

Adequately staffed EMU

established and active

Assigning the space for,

tendering the staff positions and

furnishing the EMU; Nominationand appointment of 3-5 people

to be trained as modelling

Policy

Planners

MoP


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experts

Annually organised Workshop

for Policy Planners

Project activities, results and

action plans are presented and

discussed in the workshop

Inviting the members to the

National Annual Workshop for

Policy PlannersOrganisation of National AnnualWorkshop for Policy Planners.

Table 1: Results, Achievement Indicators and Activities of Component 0.

The specific indicator of this phase is that adequately staffed Project Management Unit,Energy Statistics Office and Energy Modelling Unit within MIME are operational. The

results, achievement indicators and activities of this phase are shown in Table 1. Moredetailed activities are shown in Annex 4.

2.6.2 Component 1: Establishment of Energy Information System andDatabase

The objective of this component is to establish the Energy Information System and

database to serve, firstly, national policy planning, not only for energy sector but also tobenefit economic planning (including National Strategic Development Plan) and

environmental sector. Secondly, the energy information system and database will alsohelp to fulfil Cambodias international reporting obligations defined e.g. by ASEANCenter for Energy (ACE), International Energy Agency (IEA) and United Nations

Framework Convention on Climate Change (UNFCCC). Data collection is done incollaboration with line Ministries and other institutions through Data Collection WorkingGroup. From the beginning the data collection is planned in such manner that it is cost-

effective and sustainable, i.e. annual data collection and analysis is able to continuealso after the project has ended. The establishment of energy information system will

require the analysis of the energy data needs of different Ministries and otherorganisations (including Ministry of Environment), and clarification of the availability of

already existing primary data. After the assessment of data needs and existing data thecomplementary surveys will be will be made.

The results, achievement indicators and activities of this component are shown in Table

2. More detailed activities are shown in Annex 4.


Institutionalcooperationarrangements andquality controlmeasures forobtaining requireddata in cost-effective and

sustainably way arein place

Report onelaborated data

Data Collection WorkingGroup is established and ismeeting regularly

Energy data collection planagreed by key stakeholdersis adopted

Signed institutionalagreements (etc.) for

obtaining the requiredprimary data from differentsources are in place

Analysing the type and levelof detail of required primarydata to serve differentplanning and internationalreporting needs

Clarifying of alreadyexisting data and plan forcomplementary data

collection and utilization Revision of existing survey

questionnaires andsamples, if needed


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needs (livingdocument)

Negotiations withcooperating entities toobtain the required primarydata in most cost efficientand sustainable way. .

Trained staff of theEnergy StatisticsOffice and itscollaboratingagencies tomanage, collect andsubmit data

Establishment ofEnergy InformationSystem

Software selected

Trainings organised

Preparation of surveyquestionnaires; checkingthe existing questionnaires

At the end of the projectstaff of ESO and its partnerinstitutions are capable ofupdating and checking thequality of the data

Selecting the software for

and designing the structureof database

Trainings on methodology,

design, implementation,

data processing quality

control, maintenance etc.

10 experts from MIME and

other organizations are

trained.

Energy Balancecompleted

Information can beobtained in flexibleand user friendlymanner

Surveys and other datacollection methods areimplemented. Datacollection is repeatedannually

Energy Balance is prepared

Stakeholders are consulted Data is published

Data collection, compilationand analysis

Organisation of NationalAnnual Workshop for PolicyPlanners

Publication of data

Statistic Law ismodified

Proposal of modification ofthe Statistic Law to improvethe collection of data on apermanent basis

Preparation of the proposalto modify the Statistic Law

Table 2: Results, Achievement Indicators and Activities of Component 1

2.6.3 Component 2: Capacity Building for Energy Modelling

The objective is to train the staff in the Energy Modelling Unit in energy modelling. Atthe end of the project Energy Modelling Unit will be able to scenarios that will benefit

policy planning. They are able to assess energy resource requirements anddevelopment of long-term sustainable supply options based on RGCs economic

development scenarios to be used for energy sector and climate change policyplanning, and as input to Cambodias National Strategic Development Plan. The

scenarios will be made available for other stakeholders, national and internationalorganizations, private companies, and donor agencies.

The results, achievement indicators and activities of this phase are shown in Table 3.More detailed activities are shown in Annex 4.


Energy Modelling Unit

(EMU) Staff is trained toconduct analysis

The Energy Modelling Unit

(EMU) equipped with

state-of-the art software for

Model(s) have been selected

to prepare long termscenarios

Energy planning models are

used for demand and supply

scenario construction for

Different trainings on

energy demand analysismethodologies and

models

Finalising the basic

structure and deciding on


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Table 3: Results, Achievement Indicators and Activities of Component 2.

2.6.4 Component 3: Capacity Building for Energy Planning

The Component 3 focuses on capacity building for energy planning. It includes trainingof Energy Modelling Unit experts on energy planning methodologies and models, as

well as socio-economic and environmental linkages related to energy planning. Energyand electricity scenarios will be made. National Annual Workshop for Policy planners of

high level decision makers from various energy entities will discuss about long termenergy development. Long-term energy supply/demand balancing scenarios will beprepared and published. Based on the scenarios and discussions within the Workshoppolicy plans and interventions will be planned and published in the form of energy

strategy plan. Similarly power sector scenarios will be constructed and discussed inthe Workshop, and after formulation of policy plans and interventions a power sector

development strategy will be published.

The results, achievement indicators and activities of this phase are shown in Table 4.More detailed activities are shown in Annex 4.

energy modelling taking

into account the specifics

of the Cambodian energysector and its socio-

economic and

environmental

considerations.

Trained staff to conduct

the analysis.

different sectors, integrating

the socio-economic and

environmental impactassessment in the planning.

the factors (including

socio-economic and

environmental) to betaken into account in the

modelling and shown in

the energy supply-

demand scenarios and, as

needed, conducting

additional data gathering,

studies and surveys to

serve the analysis.

Finalized scenarios for

both energy and electricitysupply and demand in

different economic sectorscorresponding with the

environmental targets and

general socio-economicdevelopment plans.

The energy supply and

demand scenarios includingsocio-economic and

environmentalconsiderations are finalized

and the results published.

Finalisation of the analysis

in co-operation with localand international experts

(with simultaneous on-the-job training) and

publishing of its results

(including feedback fromNational Annual

Workshop for Policy

Planners) together with

related presentations in

workshops, etc.

Recommendationsaddressing the identified

data gaps and suggestionfor improving the Energy

Information System to

better serve the energy

modelling and planning.

Recommendationsaddressing the identified

data caps provided

Revision of annual surveyquestionnaires if needed

Research of additionaldata needed for power

sector modelling

Checking the consistency

of input data sets for

selected models


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The Energy Modelling Unit(EMU) equipped with state-of-the art software for energysupply and policy planningtaking into account thespecifics of the Cambodianenergy sector, theenvironmental and socio-economic aspects

Trained experts are able totake into account socio-economic and environmental

linkages of energy issues

Energy supply, socio-

economic and

environmental impact

assessment as well as

climate change mitigation

and adaptation analysis and

scenarios are being

prepared by EMU by using

the selected software.

Evaluation, selection and, asneeded, modification of theenergy supply and policyplanning software or softwarepackage to cover theidentified energy sectorplanning and interventionprioritization needs within theset socio-economic andenvironmental targets.

Training of the staff of theEMU on i) energy supply and

policy planning and how tocombine it with energymodelling in general and byusing the selected softwarepackages, ii) the integrationof the socio-economic andenvironmental targets andimpact assessment withenergy planning, and iii)management of theuncertainties andcomplementary datagathering.

Various long term energydemand scenarios havebeen prepared with detailedexplanation of hypothesis,results and potentialconsequences

National Annual Working

Group for Policy Planners

discusses the targets and

long term scenarios

The working group is

established and meetings

are organised

Establishment of National

Annual Working Group for

Policy Planners (high level

decision makers)

Long term energy strategy

plan is completed

Results have beendisseminated and

commented

Scenario results are

published

Results are commented bythe Working Group and

finalized

Finalising the basic structure

and factors to be taken into

account in energy strategyplan

Finalisation of the analysis in

co-operation with local andinternational experts.

Finalizing the supply-demand

scenarios and related policy

and intervention plans based

on the workshop feedback

Power strategy plan is

completed

Results have beendisseminated and

commented.

Cambodia's long term

power demand load

forecasts and productionscenarios are published

Power sector developmentplan is prepared and reports

Finalising the basic structure

of power sector modelling

and deciding on the factorsto be taken into account and,

as needed, conductingadditional data gathering,


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are published.

Power sector supply-

demand balancingscenarios including socio-

economic and

environmental impacts arediscussed in the Working

Group, scenarios are

finalized and published.

studies and surveys to serve

the analysis.

Finalisation of the analysis inco-operation with local and

international experts.

Finalizing the power sectorsupply-demand scenarios

and related policy and

intervention plans based on

the workshop feedback.

Table 4: Results, Achievement Indicators and Activities of Component 3

3 ASSUMPTIONS AND RISKS

Institutional

One of the main assumptions in the design of the project is that the Secretary of Stateis supportive of the project, and agrees to the transformation of the Secretariat Office

into Energy Statistics Office (ESO) and the establishment of the Energy Modeling Unit(EMU) under the Energy Planning Office. Existing Secretariat Office will be reorganised

to accommodate the Energy Statistics Office in MIME. This avoids the risk of creatingan additional department in MIME where a moratorium in establishing new departments

in government agencies is currently imposed. There is also a risk that the project officewill be attached to a lower unit in MIMEs hierarchy which may limit inter-ministerialcoordination. The level of the Secretariat turned Statistical Office however is already

high in the MIME hierarchy and the Office reports directly to the Director General.Another key assumption is that the National Institute of Statistics (NIS) of Ministry of

Planning supports the establishment of the Energy Statistics Office of the GeneralDepartment of Energy as one of the designated statistical units of MIME under the

Statistics Law and Sub-decree on the Organization and Functioning of the NationalStatistical System. The Law and the Sub-decree strengthens the case for this project.

However, energy data collection on a permanent basis, in collaboration with differentenergy data producing organizations should be guaranteed by legislation. Statistics

Law should be modified accordingly. The procedures specified and the rules stipulatedin the Statistics Law should be enforced. Confidentiality agreement should be used andpenalties stipulated under the Law should be enforced.It is also assumed that the

Electricit du Cambodge (EDC) supports this initiative and will provide necessaryinformation and inputs related to the generation, transmission and distribution ofelectricity. In addition, the project design also assumes full participation andcooperation from other government agencies and provincial authorities.

Capacity

The lack of experience in energy statistics and planning as well as the lack ofmultidisciplinary skills in MIME and the Provincial Departments of Industry, Mines and

Energy (DIME) may undermine the project. The technical assistance therefore willfocus on developing the required specialized skills. If the training of the trainers

method is used to increase the capacity of DIME staff, sufficient amount of time should

be allocated for learning and actual use of new methods before the new trainers trainothers. Also the quality of the teaching provided by newly trained trainers should befollowed. Several persons from each province should be trained to increase the


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sustainability (in case trained personnel migrate from the province etc.) The project isbased on increasing the capacity and therefore resources and time should be allocatedto this purpose. Careful planning of the trainings will increase the sustainability of the

project.Furthermore, even though the capacity-building in DIMEs would focus mostly on thosewho will be collecting the data, workshop(s) should also be organized for high level

provincial authorities to inform about the rational of the project, objectives and methodsof energy data collection, as well as to receive their input and support.

The trainings should be conducted by different short-term experts with good knowledgein both the substance of the trainings as well as training methods. Experts should coverwide range of issue areas including energy and power planning, statistics, information

systems, social and environmental impact assessment, renewable energy and genderissues. (See Annexes 2 and 3)

The technical assistance focusing mainly for MIME and DIME may also create a risk

that there may be only limited specialized skills being developed by the project.Universities and Institutes are being involved in the project in such a way that specific

skills required in energy statistic analysis and planning be taught in these institutions,thus increasing the available qualified staff in the country and increasing the impact of

the project on human capacity development. However, at the moment, the Institute ofTechnology of Cambodia needs additional capacity building in the field of energymodelling and policy planning. This would increase the sustainability of the activitiesalso after the project funding ends.

The project design also assumes that MIME staff is motivated to learn in energy

statistics and planning. The project will further provide incentives for learning such asopportunities to participate in regional trainings and workshops.

Financing

It is assumed in the project design that MIME will provide the salary of the staff and will

provide office space including basic utilities such as electricity and water use. Theproject will however provide support in project operating costs, office equipment, and

transportation and per diem (for field work). Trainings and capacity building activitieswithin the country and abroad will also be financed by the project.

However, one of the most severe risks relates to the financing of the data

collection and other activities after the ending of the project. Even if the capacity

development would be successful, the data collection still requires annual

funding.

Energy Data

Another assumption made in the project design is that there is a free flow of energydata from other Ministries, private sector or from other agencies to MIME. There is a

risk relating to the continuous collaboration between MIME and other energy dataproducing Government agencies. Continuous collaboration in data collection is

necessary not only at the beginning but also in the future. MIME will need tocollaborate closely with e.g. NIS, MAFF and MoE, Ministry of Commerce, Ministry ofPublic Works and Transport to get data without extra payment. This requires

commitment also from other Ministries, not only MIME. Data Collection Working Groupand Steering Committee will be established to enhance collaboration between the dataproducing (and using) organisations. Also National Annual Workshop for PolicyPlanners will be organised every year for the high level officials.


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Sustainability

There is a risk that the once the support from the Government of Finland will culminate

project activities will not be sustained. In general it can be said that long commitmentto capacity development creates best results (c.f. SIDA funding for NIS). The projectdesign ensures that the information system and energy planning will be supported inthe long term:

The establishment of the Energy Statistics Office under MIME should be

undertaken within the framework of Statistics Law which requires Ministries andagencies to create designated statistical units; in addition the annual

publications of energy information and statistics will also create demand forsuch units;

Since MIME is the only agency undertaking energy and power sector planning,

once the capacity of these units are strengthened, the demand for energy andpower plans from government agencies and the private sector will ensure thatthe modeling unit will be needed and supported. This, however, requires goodcooperation and information exchange between different Government agencies;

The structure of the project management unit in the project design making the

Head of the Energy Statistics Office as Project Director and the Chief TechnicalAdvisor as Project Co-Director will also ensure that MIME owns the project at

the inception stage, and that project activities are designed to be the routineactivities for both Statistics Office and Energy Modeling Unit.

The sufficiently resourced trainings of the trainers and learning-by-doing

approach also ensures that MIME staff are trained on their required skills. The

quality of the training provided by newly trained trainers (e.g. in DIME) shouldbe guaranteed.

4 COMPATIBILITY AND SUSTAINABILITY

4.1 Compatibility

4.1.1 Finnish Development Policy

Finlands Development Cooperation Policy, in coherence with the United Nations

Millennium Development Goals, aims to support activities that eradicate poverty andpromote sustainable development. Therefore the collection of socio-economic and

environment related energy data both on different levels (including household andprovincial levels) is important. The energy planning benefits also environmentalplanning and reporting, as well as poverty alleviation measures and policy planning.

The Finnish Development Policy issued in 2007 promotes actions that areenvironmentally, socially and economically sustainable. More specifically, the

government aims to promote sustainable use of natural resources; to maintain thebiodiversity; prevent climate change, soil exhaustion and desertification and to protectliving conditions.

In addition, the Finnish Development Cooperation aims to build on the partnercountries own poverty reduction and development strategies. The GovernmentDecision-in-Principle 2007 emphasises coherence, complementarity, and effectiveness.


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Policy coherence for development requires that strategies and actions in all policyareas support the goals of development policy in eradicating poverty and in sustainabledevelopment.

Promotion of the rights and the status of women and girls, and promotion of gender andsocial equality is one of the cross-cutting themes supported by the FinnishDevelopment Policy. Gender equality is also a priority concept on Cambodias

Rectangular Strategy for Growth, Employment, Equity, and Efficiency. Gendermainstreaming needs to be addressed in all policies. Men and women use energy

differently, mostly due to their different roles in the society. Also problems and prioritiesrelating to energy can be different for women and men. Therefore, gender aspect

should be taken into account at least in following issues: (i) different energy needs andenergy related problems determined by social roles and gender; (ii) different rights ofdecision-making in the selection of energy sources and equipment; (iii) differentparticipation in the maintenance and management system. These aspects could be

taken into account in energy data collection. In addition, the gender differences in theserious health impacts of energy use, especially from firewood use for cooking, should

be taken into account in planning. In developing alternatives for domestic energy,attention is to be paid to health and safety as well as efficiency, cost and convenience.

Following issues could be used to improve the gender mainstreaming:

1) A gender advisor should be hired as a short term expert. Gender audit isrecommended. The audit could follow ILOs guidelines for participatory Gender Audit.1

According to the Ministry of Womens Affairs, also local experts are available to work as

gender advisors. ENERGIA Network should be consulted if necessary.

2

The genderexpert should be hired during the first phase of the project. Important part of her/his jobwould be to comment draft data collection questionnaires and to plan household data

collection as well as other surveys.

2) Cooperation with JICAs Project on Gender Mainstreaming (PGM, Phase 2) isrecommended. In PGM project the main counterpart is Ministry of Womens Affairs but

also MIME and five other line ministries are partners. JICA has in this project alsodeveloped methods in gender mainstreaming.3

3) Representative of Ministry for Womens Affairs should be a member in Steering

Committee, Data Collection Working Group and National Annual Workshop for PolicyPlanners.

1A Manual for Gender Audit Facilitators. The ILO Participatory Gender Audit Methodology.

International Labour Organisation (ILO). Geneva, 2007.2 ENERGIA is a international network on gender and sustainable energy (founded in 1996). ENERGIAdoes gender mainstreaming and capacity-building in Africa and Asia but they dont have a focal point

in Cambodia (according to their web pages http://www.energia-asia.org/home/) but they provide

regional gender and energy workshops.3 Sources given by JICA on gender mainstreaming:

http://www.jica.go.jp/project/cambodia/0211055E0/04/pdf/01_eng.pdf and

http://jica-net.jica.go.jp/dspace/handle/10410/697
http://www.energia-asia.org/home/)http://www.jica.go.jp/project/cambodia/0211055E0/04/pdf/01_eng.pdfhttp://jica-net.jica.go.jp/dspace/handle/10410/697http://jica-net.jica.go.jp/dspace/handle/10410/697http://www.jica.go.jp/project/cambodia/0211055E0/04/pdf/01_eng.pdfhttp://www.energia-asia.org/home/)


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4) In planning questionnaires and selecting respondents gender issues should be takeninto account

5) Socio-economic issues should be taken into account in energy data collection.

Besides gender, other cross-cutting themes supported by the Finnish Development

Policy are the following; Promotion of the rights of groups that are easily excluded,particularly children, people with disabilities, indigenous people and ethnic minorities,

promotion of equal opportunities for participation; and Combating HIV/AIDS; HIV/AIDSas a health problem and as a social problem. In the Energy Balance project and in

energy projects more generally, the relevant but easily excluded groups (besideswomen) are the poorest communities. Data collection questionnaires and energy policy

planning should be formulated in such way that they would also take into the accountthe respondents from the poor communities and other easily excluded groups. These

groups should also be taken into account when planning the sample and selecting therespondents to the questionnaires. Combating HIV/AIDS is not very relevant issue in

energy data collection and energy planning, except possibly in the cases related to theconstruction of large power plants, where large number of migrant workers can create

conditions favourable for spreading of HIV/AIDS. The role of children as workforce forenergy production (firewood collection) and their health impacts from the indoor air

pollution from cooking stoves should also be seriously taken into account in the project.Furthermore the overarching goal of the project is the development of a sustainable

energy supply system which is sensitive to developmental, energy security, and energyaccess goals of the country.

With the energy information and energy sector development plans, the Government of

Cambodia can make decisions and prioritized interventions on sustainable energysystems that enhance energy access and fuel economic development of the country.

With detailed energy sector information, the Government of Cambodia could alsoprioritize energy sector policies and plans that promote poverty alleviation, climate

change mitigation, and equity. In practise this could mean, for example, a program thatwould focus on promotion and support (e.g. with subsidies) of fuel wood saving cook

stoves in the rural areas. Now the efficient cook stoves are mainly used in the cities.The efficient cook stoves would reduce the consumption of wood, which would have

positive impacts on deforestation, climate change mitigation, time and/or money spentin fuel wood collection, less respiratory illnesses etc. The support of improved cookstoves program targeted on rural areas would benefit especially women (and children)

and it would also reduce CO2 emissions.

4.1.2 National Strategic Development Plan and Energy Sector Development

The National Strategic Development Plan (NSDP) embodies the overarchingdevelopment policy and strategy of RGC to meet the Millennium Development Goals

particularly the goal of eradicating poverty and human development. RGC adopted aRectangular Strategy for Growth, Employment, Equity, and Efficiency with GoodGovernance as the core and i) enhancement of the agriculture sector, ii) rehabilitationand construction of physical infrastructure, iii) private sector development and

employment generation, and iv) capacity building and human resources developmentas the four main pillars. The main aim of the Rectangular Strategy is to promote

economic growth, generate employment for Cambodian workers, ensure equity and


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social justice, and enhance efficiency of the public sector through the implementation ofthe Governance Action Plan and in-depth reforms that are coordinated and consistentacross all levels and sectors.

Energy sector development plans are defined under the second pillar on physicalinfrastructure. RGCs energy sector policy aims to i) provide adequate supply atreasonable prices, ii) ensure a reliable and secure electricity supply, iii) encourage

exploration of environmentally and socially acceptable development of energyresources, and iv) encourage efficient use of energy. In addition, RGC also developed

a rural electrification strategy which aimed at increasing access to energy servicesparticularly those in rural areas improving living standards and promoting agriculturaland small-scale industrial development.

This project is not only compatible with the development principles of RGC but alsocomplements and supports the achievement of the energy sector policy and rural

electrification strategies contributing to the overall developmental goals of the National

Strategic Development Plan. Energy information and plans will be used by RGC toprioritize energy investments that achieve and optimize developmental benefits fromimproving energy access to stimulating rural development, protecting the environment

and promoting gender equality. Similarly, energy sector information and plans willprovide the private sector the basis for making decisions to invest in energy sectordevelopment.

4.1.3 Statistics Law

The Statistics Law was issued by RGC in 2005 governing the collection, processing,

compilation, analysis, publication and dissemination of statistical data in the country.The Law assigns the National Institute of Statistics of the Ministry of Planning as the

overarching body responsible for making official statistical policies in establishing anintegrated National Statistical System.

In addition, the Law also required the Ministries and institutions of RGC to collect

sectoral data either independently or in cooperation with the National Institute ofStatistics (NIS).

A sub-decree on the organization and functioning of the National Statistical System was

issued in 2007 detailing the main functions of NIS and the designated statistical unitwithin each Ministry or government institution.

This project supports the establishment of the Energy Statistics Office (ESO) of

General Department of Energy of MIME and strengthens its capacity in order to meetits responsibilities and be able to perform its tasks as designated in the Sub-Decree.

Thus the project fulfils the mandate of the Statistical Law and the Sub-Decree. Inaddition, by placing NIS as member of the Steering Committee, the project further

satisfies the requirement of the Law ensuring coordination between the designatedstatistical unit and NIS.

However, Statistics Law should be modified to improve the energy data collection on

permanent basis. Providing energy and other data to MIME on regular basis should berendered compulsory for main energy actors (supply and demand industries, utilities,commercial consumers, etc), as well for other line Ministries (Agriculture, Public Works

and Transport, Finance and Economy, Environment, etc.)


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4.2 Sustainability

The issue of sustainability has been raised in various discussions during the project

preparation phases, thus sustainability is one of the key considerations in projectdesign. It is crucial that the project is sustainable and that the annual data collectioncontinues also after the project ends.

There are features embedded in the project design that ensure long-term sustainabilityand these are the following:

Pre-conditions related to the creation and staffing of the Energy Statistics Office

from the already existing Secretariat Office, and of Energy Modelling Unit. Alsofunding of annual data collection activities should be guaranteed also after the

project is completed. One of the pre-conditions set by the project is that MIMEshould establish and nominate staff of the Energy Statistics Office and Energy

Modelling Unit to be funded from its internal financial resources. In this case, theproject will not create a new entity but strengthen the capacity of the existing

units of MIME. This ensures sustainability with respect to financial support ofthe said units.

Statistics Law. The establishment of the Energy Statistics Office will be

undertaken within the context of the Statistics Law which requires Ministries andGovernment agencies to establish designated statistics units. Statistics Law

should be modified to improve the collection of energy data on a permanentbasis, and to enable the continuous collaboration between different Governmentagencies producing energy and other relevant data.

Continuous collaboration between MIME and several other Government

agencies is needed, and therefore Data Collection Working Group isestablished to enhance information exchange. MIME will need to collaborateclosely with e.g. NIS, MAFF and MoE, Ministry of Commerce, Ministry of Public

Works and Transport to get data without extra payment. This requirescommitment also from these Ministries, not only MIME.

Design of the Project Management Unit (PMU). This technical assistance

project makes sure that MIME will own the project and take the lead in theimplementation of activities. The Head of the Energy Statistics Office will be

designated as the Project Director and will be responsible for the execution ofthe project activities and at the same time take the lead in undertaking routineactivities for the provision of energy information and preparation of energy

plans. The role of the Chief Technical Adviser as Project Co-Director and othershort-term international experts will mainly provide capacity development,training, control and technical assistance.This ensures hands-on project

implementation experience for the Energy Statistics Office and EnergyModelling Units.

Organised trainings and learning by doing approach. The overall project design

ensures learning by doing approach for the above-mentioned MIME units.International experts will provide specific trainings to MIME staff but the actual

preparation of energy balance and statistical publications as well as thepreparation of energy plans will be carried out by the staff themselves, underthe supervision of experts. This guarantees learning and that the activities

carried out in the first year will be routinely replicated in the following years. Demand for services. The entities to be strengthened by the project will be

providing services to the public and private sectors. The Statistics Office will be


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generating publications such as energy balance and energy statisticalyearbooks, etc. On the other hand, the Energy Modelling Unit will be generatingenergy strategy plans, power strategy plans and other long term energy

demand supply information. This information is required by governmentagencies, private sector and non-profit organizations for various planning,research and investment decisions ensuring constant demand for informationand planning services.

5 IMPLEMENTATION

5.1 Implementation Strategy

MIMEs request to the Government of Finland for support and development of thecapacity on energy statistics, energy balance and planning requires at least 2 dedicated

units responsible for energy information system and energy planning. The projectstrategy is to support MIME create these units under the General Department of

Energy, and build their capacities through learning-by-doing approach. These units arethe Energy Statistics Office (ESO), which will be created from the existing SecretariatOffice, and Energy Modelling Unit (EMU).

The first 4 months of the project will be the Inception Phase. During this period, theproject document will be reviewed and revised if necessary, and the first annual plan

will be prepared with the annual budget and staffing revised if needed, withoutchanging the agreed project scope and purpose.

During the inception phase, the logical framework will also be reviewed and amended ifneeded to add more detail to the proposed achievement indicators and quantify someof the outputs if possible. In addition, a monitoring plan will be prepared by the project

management unit (PMU) in order to guarantee timely implementation and achievementof results.

5.2 Data Collection

5.2.1 Demand side data collection

Both demand side and supply side energy data is needed for energy balance

construction. Due to the decentralized system, many Ministries collect data that caneither directly or as bases of evaluation used in energy statistics and energy balance

construction. The most feasible way to organize the data collection is to use the datacollected by MIME and other Ministries and to improve the quality of data collectionmethods and analysis.

In this section is listed the energy data that is collected by MIME or other Ministries,and the recommendations on how demand side energy data collection should beorganized. Table 5 at the end of this section summarizes the energy data collectionrecommendations. ).

Agricultural sector


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At the moment there are no statistics available on energy used in pumping, tractors andother machines used in agriculture.

Solution for agricultural sector energy demand data collection: DIMEs could dosurveys about the energy consumption in the agricultural sector and cooperate withProvincial Departments of MAFF.

Industrial sector:

Industries provide MIME reports of the production value, but not energy use. Largeindustry (capital more than 500 000 USD) report every month by using MIMEs

reporting format. Small and medium size industry companies report to MIME once ayear. There are no statistics available on the use of wood for energy in industrial sector

(e.g. in brick and garment industry).

Solutions for industry energy demand data collection:

1) Energy questions could be added on the MIME questionnaire sent for companies

2) Also questions on fuel wood and other biomass use should be included

3) The use of wood as raw material should also studied in addition to energy use inorder to obtain information of the total demand of wood

4) Electricity consumption in the industrial sector data can be obtained from Electricitedu Cambodge, Electricity Authority of Cambodia and Rural Energy Enterprises.

Service sector:

MIME has a questionnaire for all energy consumption and uses random samplingmethods for the commercial sector (restaurants, hotels, guest houses, shops etc.). InPhnom Penh MIME collects information and in the provinces DIMEs collect the data.Five star hotels are part of the industrial sector. Last time this was made was in 2009.

Solution for service sector energy demand data collection: This questionnaire used

by MIME can be used also in the future, possibly after revisions on questionnaire andsampling. Data should be collected annually, if possible.

Transport sector:

The fuel used in transport sector is imported (except possible future production of

biofuels). Statistics concerning the fuel imports are available from CAMCONTROL(under Min. of Commerce) and Customs office. Statistics concerning the number ofvehicles are available from Ministry of Public Works and Transport. Energy use ofagricultural vehicles must be removed from the statistics as it is calculated in

agricultural sector. There is no data on fuel consumption, so it must be estimated(especially for passanger cars). For evaluation of bus and freight transport fuelconsumption MIME uses survey.

Solution for service sector energy demand data collection: Statistics fromCAMCONTROL (under Ministry of Commerce), Custom office and Min. of Public works

and Transport can be used for fuel imports and number of vehicles registered.


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Questionnaire used by MIME for the evaluation of transport fuel consumption can beused also in the future (possibly after revisions on questionnaire and sampling).Information of annual kilometres driven by cars could be estimated from possible future

collection of data during the technical car inspection.

Household energy consumption:

Household energy consumption data should be important part of the energy statisticsand energy balance construction due to the significant role of biomass (fuel wood and

charcoal) in total energy consumption, and the fact that households consume almost90% of all energy. Household energy data collection should cover all forms of energy,including fuel wood and charcoal, and statistics should be gender dissaggregated.Socio-economic (especially concerning household data collection) and environment

data should be included to energy data collection. At the moment there are nostatistics on household energy consumption, except what is collected in NationalInstitute of Statistics (NIS) annual socio-economic survey.4

The household energy data collection should preferably be incorporated to NISsocio-economic surveys, if possible. This would enable the integration of the energy

related socio-economic and environmental issues (especially regarding fuel wood) tothe energy statistics. In principle the measurement of household wood consumption in

NIS socio-economic data is possible. However, it depends on funding, capacity andthe decisions how the survey is compiled in the future. In any case NIS expertise

should be used to the extent possible in household energy data collection.5

Solutions for data collection on household energy consumption:

1) First option would be to add energy questions to socio-economic survey collected

yearly by National Institute of Statistics (NIS) or to the survey of National Committee forSub-National Democratic Development (NCDD). Incorporation of energy questions to

NIS or NCDD socio-economic survey would enable the linking of socio-economicissues in energy analysis. Negotiations considering this option should be carried outwith NIS and/or with NCDD.

2) Second option is that DIMEs would conduct (all or part of) surveys on householdenergy consumption. This would require capacity building and other assistance. If

DIMEs will collect the data, they need capacity-building and other support. Also asurvey questionnaire format has to be defined as DIMEs have not collected this kind of

4There are few energy related questions in the NIS socio-economic survey such as the type of fuel

used for cooking; money spent on electricity, firewood, charcoal, battery, LPG (etc); and electricity

consumption. Collected wood fuel consumption is estimated in bunch (handful). The bunch

(handful) varies according to the quality of wood.

5 In the NIS socio-economic survey 2009 (published in December 2010) the sample was 12 000

households which divided into 12 monthly samples of 1000 households in 60 villages.


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data. UNDP rural household survey questionnaire as well as Finland Futures ResearchCentres (FFRC) survey questionnaires could be taken as reference and modified.6

Also methods used in Department for Alternative Energy Development and Efficiency of

Thailand (DEDE) to calculate daily house hold wood fuel consumption could be usedand developed further, if necessary.

Decision on how household data is collected should be made in the inception phase.Collection of gender disaggregated statistics has to be organised. Gender advisor is

recommended in planning the household survey. Also cooperation with JICAs andMinistry of Womens Affairs Project on Gender Mainstreaming project (Phase 2) is

recommended. Furthermore, if the Wood Energy Working Group chaired by MIMEbecomes active, collaboration is recommended in all issues relating to wood energy.7

5.2.2 Supply side data collection and energy import statistics

Biomass:

Different options of supply side energy potentials must be evaluated, but the energysupply must be sustainable (cf. fuel wood and rapid deforestation). In order to evaluate

the use of biomass for energy, also information on the other uses for wood is needed(including industrial use of wood as raw material, timber and wood residue exports).Also data on the regeneration capacity of forest is required. In the evaluation ofbiomass supply side, collaboration with MAFF and MoE is recommended. Due to the

rapid deforestation, reforestation would be needed but perhaps also plantations for fuelwood. However it should not compromise food production.

Biofuel potential is also needed to be calculated for the supply side data. Biofuel

strategy should be established in such manner that biofuel production would notthreaten food production or natural forests. Other potential sources of energy supplyinclude agricultural waste8, wind, solar, and hydro.

Fossil fuels:

Cambodia has oil and gas reserves. In the future the crude oil and gas supply statistics

will be collected by Cambodian National Petroleum Authority (CNPA)CO2 emissionsand climate change mitigation are central issues in fossil fuel sector and should betaken into account in the energy planning.

At the moment the fuel used in electricity production and in the transport sector isimported. Ministry of Commerce (CAMCONTROL) collects data on fuel imports.

6MIME, UNDP, GERES (2008): Residential Energy Demand in Rural Cambodia. An empirical study

for Kampong Speu and Svay Rieng www.un.org.kh/undp ; Turunen, Jenny et al. (2011) Livelihood

Resilience and Food Security in Cambodia. Results from a Household Survey. FFRC eBooks 1/2011.81 p. ISBN 978-952-249-062-9 http://ffrc.utu.fi/julkaisut/e-julkaisuja/eTutu_2011-1.pdf UNDP research

covered two provinces, and FFRCs research covered 12 provinces.

7 Wood Energy Working Group was established in 2006, but has not been active. It is chaired by

MIME and has 14 members.8

Significant potential in e.g. in rice husk, see Akgn et al 2011
http://www.un.org.kh/undphttp://ffrc.utu.fi/julkaisut/e-julkaisuja/eTutu_2011-1.pdfhttp://ffrc.utu.fi/julkaisut/e-julkaisuja/eTutu_2011-1.pdfhttp://www.un.org.kh/undp


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The Table 5 below summarises the recommendations for data collection:

Sector Data collection Comments

Agriculture Survey by DIMEs in cooperation with

Provincial Departments of MAFF

At the moment energy

demand data at the

agricultural sector is not

collected

Industry Energy questions (incl. biomass) added to

MIMEs survey. Studies on the use of wood

as raw material. Electricity data provided by

Electricite du Cambodge, Electricity

Authority of Cambodia and Rural Electricity

Enterprises

Questionnaire and sampling

should be revised if necessary

Service Survey by MIME and DIMEs Questionnaire and samplingshould be revised if necessary

Transport Statistics from CAMCONTROL (under

Documents

Energy Balance Project Document FINAL