Access to Sustainable Energy in Latin America and the Caribbean

PROJECT’S DIRECTIVE COMMITTEE Fernando César Ferreira OLADE’s Executive Secretary Samuel Matheson Development Officer, Inter-American Program, Americas Directorate, Geographics Program Branch, Department of Foreign Affairs, Trade, and Development Canada, Quebec, CANADA Paul Ragusa Project Manager Oil & Gas Andes Program Americas Branch, Department of Foreign Affairs, Trade, and Development Canada, Quebec, CANADA PROJECT’S INTERNAL COMMITTEE - OLADE Fernando César Ferreira Executive Secretary Lennys Rivera Integration Director Jorge Asturias Studies and Projects Director Pamela Navarrete Administration and Finance Manager Byron Chiliquinga Manager of the Cooperation Project OLADE - Government of Canada Nasser Akhtar Canadian Technical Advisor of the Cooperation Project OLADE - Government of Canada Sissy Larrea Gender Equity Advisor The photographs used in this document belong to OLADE. Design and layout: Ana María Arroyo Graphic Design Consultant OLADE OLADE © October 2014

Av. Mariscal Antonio José de Sucre N58-63 y Fernández Salvador, Edificio OLADE, Sector San Carlos Casilla 17-11-6413, Quito-Ecuador Telf. (593 2) 259 8122 / 259 8280 Fax (593 2) 253 1691 [email protected] www.olade.org

I. INTRODUCTION

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The Latin American Energy Organization (OLADE) was created in 1973 to meet the challenges of rapid economic growth in Latin America and the Caribbean1 (LAC) countries and the economic crisis in the highly developed countries, at a time when natural resources, especially energy, acquired strategic value for economic development and contributed to significantly redesign the geopolitical panorama and the map of international capital flows. In this vein, a highlight of the international scenario was the steep rise in oil prices, which created contradictory economic conditions in Latin America and the Caribbean: favorable for the few oil-exporting countries and unfavorable for the oil-importing countries. Thus, the scope and repercussions of information sharing and integration of the natural resource in general, and of energy in particular, were studied by the LAC countries, whose energy authorities had identified isolated vulnerabilities in sector policies with a purely domestic focus. Given the need to address the crisis appropriately, they began an intense process of political mobilization that culminated on November 2, 1973, with the formalization of the Lima Convention, the instrument that created OLADE. To date, the following 27 countries of Latin America and the Caribbean have ratified the Lima Convention: South America: Argentina, Brazil, Chile, Paraguay, Uruguay, Bolivia, Colombia, Ecuador, Peru and Venezuela.

Caribbean: Barbados, Cuba, Granada, Guyana, Haiti, Jamaica, Trinidad & Tobago, Dominican Republic, and Suriname. Central America and Mexico: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, and Mexico. Participating country: Algeria. Pursuant to the Lima Convention, OLADE is the political and technical support organization by which the Member Countries make joint efforts towards regional and sub-regional energy integration. Its mission is to “contribute to the integration, sustainable development and energy security of the region, by assessing and promoting cooperation and coordination among its Member Countries.” For its operations, the organization receives financial resources from its 27 Member Countries and the participating country, which enable it to fund its functional programs and contribute to the implementation of regional and sub-regional cooperation and technical assistance projects among its Member Countries and participating country, according to an Annual Work Plan approved by the Directive Committee. It should be mentioned that these projects are financed primarily with external resources provided by international cooperation agencies under specific agreements. In this regard, Canadian cooperation has played a significant role in the implementation of several OLADE projects, starting in 1996 with a cooperation agreement signed between OLADE and the University of Calgary (UC), and funded by the Canadian International Development Agency 1 According to ECLAC data, 1968 to 1973 was one of the periods with the fastest-growing Gross National Product in the region over the past 60 years.

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(CIDA), to jointly implement a Master’s Degree program on ‘Energy and the Environment’, deliver Environmental Training workshops, and the compilation of Environmental Laws in Latin America and the Caribbean, which was completed in December 2002. The successful completion of the first cooperation project led to the launch of a second project, the “OLADE/UC/CIDA Sustainable Energy Project” which was implemented from 2003 to 2011. The Outcome of this Canadian cooperation project was positive for the region, as highlighted in the final evaluation conducted by CIDA. This led to the approval of a new project by CIDA, the “OLADE/Canadian Government Project: Access to Sustainable Energy in Latin America and the Caribbean”, which was formalized between OLADE and the Canadian Government in March 2012, when this present project was started and which will end in December 2017. Canadian cooperation funds are managed by OLADE’s Permanent Secretariat, made up of government representatives of its Member Countries, who supervise, direct and control its activities and budget execution, and its accounting statements are audited by external, independent auditing firms. These procedures, and the implementation of OLADE’s Quality Management System, ensure transparency and inter-governmental engagement in its work plans and accounting / financial statements.

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II. ACRONYMS AND ABBREVIATIONS

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ARPEL

Asociación Regional de Empresas del Sector Petróleo, Gas y Biocombustibles en Latinoamérica y el Caribe

IADB

Inter-American Development Bank

IETA

International Emissions Trading Association

CAF

Banco de Desarrollo de América Latina

CARICOM

Secretariat of the Caribbean Community

ECLAC

Economic Commission for Latin America and the Caribbean

CIDA

Canadian International Development Agency

COICA

Coordinadora de las Organizaciones Indígenas de la Cuenca Amazónica

PIP

Project Implementation Plan

UNDP

United Nations Development Programme

UNDP-ROLAC

United Nations Environment Programme - Regional Office for Latin America and the Caribbean

UNEP DTU PARTNERSHIP

(formerly UNEP Risø Centre) UNEP collaborating centre operating under a tripartite agreement between Ministry of Foreign Affairs, Denmark, UNEP and the Technical University of Denmark (DTU)

UNFCCC

United Nations Framework Convention on Climate Change

SICA

Sistema de Integración Centroamericano

UC

University of Calgary

III. PROJECT CHARACTERIZATION 3.1 PROJECT OBJECTIVE: “Greater access to sustainable, affordable energy in the LAC region to stimulate economic growth and reduce poverty levels.” 3.2 COOPERATION BENEFICIARY COUNTRIES: OLADE Member Countries in general and the following countries in particular: Belize, Bolivia, Colombia, Cuba, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Peru, Dominican Republic, and Suriname.

Byron Chiliquinga Manager

Nasser Akhtar Canadian Technical Advisor

Sissy Larrea Gender Equality Advisor

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3.3 THE PROJECT TEAM:

Daniel Orbe Management Technical Assistant

3.4 MONITORING AND FOLLOW-UP: The Directive Committee, made up of OLADE authorities and the Canadian Cooperation. This Committee has held three meetings in Quito, the first in May 2012, the second in April 2013 and the third via teleconference in June 2014. The Internal Project Coordination Unit, consisting of OLADE’s Executive Secretary, Board Members and Cluster Managers (by thematic area), the Administration and Finance Manager, Project Manager, Canadian Technical Advisor, and Gender Equality Adviser. This Unit has had six meetings, No. I on April 2012, No. II on June 2012, No. III on July 2012, No. IV on November 2012, No. V on January 2013, and No. VI on May 2014. These meetings were intended to define the functions, roles and responsibilities of the unit, establish the procedure for hiring consultants and review the initial reports of the project, prior to the submission to the Canadian Cooperation and review progress and the project’s budget execution. 3

3.5 PROJECT STRUCTURE: The Project contemplates two clusters or thematic areas that include 22 sub-projects, as listed below:

Cluster 1: Energy Planning, Integration and Governance Sub-projects:

Development of Energy Planning Capacity Strengthening Sub-Regional Energy Integration and Improving Access to Energy Markets.

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Module 1: Sub-regional Energy Integration Module 2: Improving Access to Energy Markets Module 3: Good Offices Facilitator Energy Governance: Mechanisms to Help Member Countries Develop Regulations and Policies (Hydrocarbons and Electricity) Module 1: Hydrocarbons Module 2: Electricity Improving Access to Electricity on the Grid Module 1: Market Models, Economic Regulation and Tariffs Module 2: LAC Generation Assessment Module 3: Assessing Options for Investing in Power Generation Programmatic Clean Development Mechanism (CDM) and Nationally Appropriate Mitigation Actions (NAMAs) Climate Change Mitigation and Adaptation in the Energy Sector Virtual Training Program (CAPEV) and Technical Networks Module 1: CAPEV Program Module 2: Technical Networks Executive Development Programs on Energy Planning 4

Cluster 2: Social and Environmental Aspects Sub-projects:

Promoting Corporate Social Responsibility (CSR) Module 1: Technical Support to Central America Module 2: Regional Dissemination of CSR Principles Module 3: CSR Check List (Report Card) Module 4: Promotion of Extractive Industries Transparency Initiative (EITI) Module 5: Support to the Population, Energy and Environmental Program (EAP) COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

CSR in Rural Energy Systems for Isolated Areas Developing Gender Equality in Energy Decision-Making and Energy Access Certificate on Energy and Social Inclusion

IV. TECHNICAL PROGRESS MADE UNDER EACH SUBPROJECT The information presented below comes from the Project document (PIP) approved by the Canadian Cooperation, and from the implementation of the various activities planned for the fiscal year 2014-2015, with an update as of September 30, 2014.

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ENERGY PLANNING, INTEGRATION AND GOVERNANCE

Sub-Project WBS #

1110 Developing Energy Planning Capacity Objective: Develop an Energy Planning Manual to strengthen Latin American and Caribbean Energy Ministries’ capacity to design and implement sustainable Energy Plans. Specific objectives for 2014-2015: • To review and prepare a final version of the Energy Planning Manual.

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• Develop a Work Plan for the application of the Manual in two selected countries. • To deliver training in the use of the manual by the national team of 2 countries. • To support two OLADE´s Member Countries in the application of the manual to develop National Energy Plans. Outcomes to Date: • Integrated Manual final version available, which includes the activities that each country should consider for Energy Planning with a view to obtaining National Energy Plans. • Work Plans available for the implementation of the Manual in Bolivia and Honduras, including training and implementation of the different technical components. • The stage of training and implementation was initiated through the respective coordination with technical counterpart in Honduras and Bolivia. Activities began in September 2014, and are expected to be completed by May 2015, obtaining national energy plans in these countries.

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Sub-Project WBS #

1210 Strengthening Sub-Regional Energy Integration Objective: Contribute to sustainable energy development in Latin America and the Caribbean through support for regional energy integration and the strengthening of the technical and institutional capabilities of OLADE Member States.

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Specific objectives for 2014-2015: • Support integration initiatives in LAC countries, taking into account the Energy Agendas defined and approved by the CA and Caribbean nations for 2014-2015. • Define the Energy Agenda in South America with countries and agencies involved and support some of its integration initiatives for 2014-2015. • Providing support for annual coordination meetings, and follow-up of Sub-regional Energy Agendas, together with the Sub-regional Agencies involved. • Development of sub-regional Energy Integration Maps for all sub-regions. Outcomes to Date: • Coordination meetings with UNASUR; available a draft of the Energy Integration Agenda for South America for the period 2014-2015, pending consensus with UNASUR and the Member Countries of this sub-region. • Identified 2 possible projects to be supported in the Central American Sub-region and 2 Sub-projects in the Caribbean sub-region. • Developed Sub-regional coordination meetings and monitoring to the Sub-regional Energy Agendas in Central America (Belize, 3-4 September, 2014) in coordination with SICA; and the Caribbean (Jamaica, 24-25 September, 2014) in coordination with CARICOM. • Terms of reference prepared for the development of the Sub-regional integration Map in South America.

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Sub-Project WBS #

1220 Energy Markets Studies

Objective: Gather and analyze information related to the energy matrix (production, consumption, supply and demand balance, etc.) of 7 Latin American and Caribbean countries in order to identify these countries’ opportunities and obstacles to accessing the international energy market.

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Specific Objective for 2014-2015: • Prepare an individual study in 3 Latin American and Caribbean countries, including: Dominican Republic, Guatemala and Honduras. Outcomes to Date: • Available final report of the case study in Guatemala. • Available final report of the case study in Honduras. • The case study of Dominican Republic is being developed. • Executed national workshop in Guatemala for analysis and dissemination of results of the case study; with the participation of 20 staff members, 7 of them were women. • Executed national workshop in Honduras for review and dissemination of results of the case study; attended by 25 staff, 8 them were women. • Pending the achievement of the national workshops in Dominican Republic and Jamaica.

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Sub-Project WBS #

1230 Goodwill Offices Facilitator Mechanism

Objective: Promote OLADE’s role as a Goodwill Offices Facilitator and its mechanism among the Member States as a tool for facilitating dialogue relating to the prevention of interregional energy disputes. Specific Objective for 2014-2015: COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

• Promote OLADE’s role as Goodwill Offices Facilitator and its mechanism among the Member States. Outcomes to date: • Mechanism disseminated in all events held by OLADE.

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Sub-Project WBS #

1120 Energy Governance: Technical assistance for Member Countries to Develop Policies and Regulations MODULE 1: Hydrocarbons Industry Objective:

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Provide specific technical assistance to the smaller Member Countries in the LAC Region with regard to appropriate energy policies and regulations, supported by energy consumption surveys in those countries, and adapted to national objectives and needs. Specific Objectives for 2014-2015: • Support to Honduras and Guatemala in their objectives related to strengthening the hydrocarbons sector. • Training to Honduras’ Committee on Contract Management in Exploration and Exploitation on Control and Supervision of contracts. • Provide technical assistance in the regulations for trade in natural gas in Guatemala, with emphasis on: a) distribution, storage and trading; b) technical standards of quality and safety; and, c) environmental regulation. • Identify and disseminate the good practices and lessons learned in both countries: Guatemala and Honduras. Outcomes to date: • The technical assistance to Honduras is in coordination stage, to provide virtual training to the committee designated on “Alternatives for the Establishment of a National Geological Data Center (CNDG) for Honduras Hydrocarbon Sector”; to be held in October 2014. • Agreed Work Plan with the national authorities for technical assistance to Guatemala, consistent in supporting the development of proposed regulations and manuals for exploration, production and marketing of natural gas. • In late October it will be ready the first report of Technical Assistance to Guatemala on the diagnosis of regulatory and institutional system. • Under development a proposal of guidelines for for distribution, storage and sale of natural gas in Guatemala.

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Sub-Project WBS #

1120 MODULE 2: Power Industry Objective: Provide technical assistance for the development of policies with their respective legal framework and regulatory mechanisms for the electric energy sector in selected countries. COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

Specific objectives for 2014-2015: • Support to Colombia and Haiti in the development of regulatory framework for specific areas of the electric energy sector as requested by the countries. • Support in the implementation of the proposed regulatory framework for the countries’ electrical energy sector, and disseminate the proposal and results of the work through a national workshop to apply the recommendations of the proposals. Outcomes to date: • Completed the technical assistance to the Committee on Energy and Gas Regulation (CREG) of Colombia, to determine transportation costs for reactive power in the National Interconnected System (SIN) was completed. Additionally, a national workshop was held for the presentation and analysis of the results of this technical assistance, the Final Report is available. • A study of losses in National Interconnected System of Colombia is under development, as well as an update of the efficient model for estimating the cost in the electrical losses reduction plans. The study will be completed completed on December 2014. • It is under development the Technical assistance to Haiti on regulatory aspects of electricity sector regarding laws governing the exchange of electrical energy at all stages of the chain in order to propose regulatory mechanisms to strengthen the control of non-technical losses, proper calculation of electricity price and self-sustainability of the electricity sector. The first report of the consultancy is available.

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Sub-Project WBS #

1240 Electric Tariffs Analysis Objective: Provide a “change” proposal to gradually resolve various aspects of institutional, operational, and regulatory matters in the power sector in the LAC region (in six countries), by analyzing the electricity tariff structures and improving the efficiency of power sector infrastructure. Specific objectives for 2014-2015:

COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

• Characterization of the current regulatory framework for the structuring of electrical energy markets, and how costs and structuring of rates are determined in Haiti. • Perform an analysis of the current wholesale electrical energy market models in Haiti, identifying the types of transactions between agents in the market, new electric energy projects, commercial transactions and expansion planning. • Review the method used for determining rates in Haiti, and evaluate it from an economic and financial standpoint, likewise establishing its impact on the management of the electrical energy sector. • Propose a rate model for Haiti, which guarantees sustainability over time, allows for the efficient development of the electrical energy sector, and is attractive to the different entities involved. • Identify and publish the best social-oriented frameworks for rates that are applied in Haiti. • Perform a comparative analysis between the different electrical energy market models, regulation methods and rate frameworks present in the studied countries: Colombia, Dominican Republic, Haiti, Honduras, Nicaragua and Peru. Outcomes to date: • Available preliminary report on the characterization of market models and regulatory

framework in place in Haiti.

• Available the report on the characterization of the existing economic regulatory framework

in Haiti.

• Available the preliminary report on the characterization of methods for pricing, social tariffs, subsidies and tariffs existing in the electricity sector in Haiti. • There were prepared the terms of reference for the recruitment of the study: Comparative

analysis and recommendations on models of market, regulatory methods and pricing structure in LAC. 13

Sub-Project WBS #

1250 Energy Investment Needs and Technical and Economic Alternatives for Power Supply in the Electricity Sector MODULE 2: Latin America and Caribbean Generation Assessment

Objective: Provide a proposal to six selected LAC countries to gradually resolve various aspects of institutional, operational, and regulatory matters in the power sector, analyzing the electricity tariff and improving the efficiency of power sector infrastructure. COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

Specific Objectives for 2014-2015: • Perform a detailed characterization of the existing generation power plants (power generation capacity) in Cuba and Haiti. • Evaluate the current status of the generator park (total number of electricity power generation units/systems, including thermal, wind, solar, hydro, etc.) in the analyzed country, including the type of technologies that are being used to generate electricity in Cuba and Haiti. • Identify new technologies and projects to be launched in Cuba, Dominican Republic and Haiti, taking into accounts the following aspects: availability of the primary resource, availability of the electrical grid, and technical and financial aspects. • Identify providers of these, which will allow for fundamental changes to the generator parks of Cuba and Haiti. • Perform a regional comparative analysis and recommendations on on current and distributed generation present in the studied countries: Bolivia, Cuba, Dominican Republic, Haiti and Jamaica. Outcomes to date: • Document with the characterization of the situation of the conventional and distributed

generation in Haiti, under development.

• Reports with the identification of projects and new technologies for replacement of

outdated generation units: the study in Dominican Republic is completed, with emphasis on market simulation models and preliminary report available for Haiti.

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• Document on financial evaluation of proposals for implementation of new technologies for generation: available the Dominican Republic report focused on simulation of market rates and expansion plans with different technologies; the case of Haiti is under preparation.

Sub-Project WBS #

1250 MODULE 3: Evaluation of Investment Options Objective:

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Provide proposals to six selected LAC countries to gradually resolve various aspects of institutional, operational, and regulatory matters in the power sector, analyzing the electricity tariff and improving the efficiency of power sector infrastructure. This activity conducts an analysis and develops a plan for investment in generation, identifying possible financing structures. Specific objectives for 2014-2015: • Implement an expansion or replacement plan for electrical generation in Bolivia based on technical and financial analyses, and completion of the Jamaica study as well. • Develop a schedule with values for the investments in generation or grid reinforcement necessary to fulfill the generation expansion plan in Bolivia. • Perform the economic-financial evaluation for the generation Expansion Plan, and present investment options for Bolivia. Outcomes to date: • Under coordination with Honduras and the Dominican Republic to confirm their interest in participating in the project, once it was confirmed their interest, logistical procedures for hiring consultants will be made.

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Sub-Project WBS #

1410 Programmatic CDM and NAMAs Objective: Strengthen the existing technical capabilities in Latin American and Caribbean (LAC) countries for the development of “Activities Programs” within the Clean Development Mechanism (CDM) and National Appropriate Mitigation Actions (NAMAs), in order to contribute to the reduction of Greenhouse Gas Emissions within the activities of the region’s Energy Agenda (interconnected or decentralized renewable energy, energy efficiency, regional interconnection, etc.). COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

Specific Objectives for 2014-2015: • Support LAC countries in the development of project profiles and detailed projects relating to the Programmatic CDM and NAMAs. • Strengthen countries’ knowledge on the existing potential for applying and taking advantage of the CDM and NAMAs initiatives and disseminate lessons learned. Outcomes to date: • It was supported the participation of 10 delegates from six Member Countries and Canada in the VIII Latin American and Caribbean Carbon Forum held ​​on September 3, 4, 5 2014 in Bogota, Colombia. The event was attended by around 600 participants from all regions of the world. OLADE was one of the organizers, together with the IADB, World Bank, CAF, UNEP DTU, UNDP, IETA, UNFCCC and the Ministry of Environment of Colombia. • E-learning Course on Programmatic CDM versions in English and Spanish available on OLADE’s Website. • E-learning Course on NAMAs in the English version available on OLADE’s Website. • Available the Final Report on the Study of NAMAs for treating pig waste in Cuba. Additionally, there were presented the results of this study in a Biogas International Workshop held in Brazil, at the VIII Carbon Forum held in Colombia and at the National Workshop held in Havana, Cuba. This study was supported by UNDP. • Available the Preliminary Report of NAMAs study on scaling-up renewable energy in Jamaica. This report was presented and discussed with the authorities in the energy and climate change sectors in Jamaica.

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Sub-Project WBS #

1440 Climate Change Mitigation and Adaptation in the Energy Sector Objective: Provide technical assistance to the OLADE Member Countries regarding aspects related to mitigation and adaptation to Climate Change (CC) in the energy sector. Specific Objectives for 2014-2015:

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• Identify requirements in the OLADE´s Member Countries to strengthen their capabilities to manage the climate change (CC) in the energy sector. • Support technical assistance for the preparation of policy guidelines in the energy sector regarding CC. • Prepare and delivery a technical workshop to develop policy guidelines regarding the climate change on the energy sector. • Evaluate the impact of CC on the energy infrastructure in two OLADE Member Countries. Outcomes to date: • It started the process of coordination with the Ministry of Mines and Energy, the Ministry of Environment of Colombia and UNEP DTU consultant team to define the scope of the technical assistance to develop a national strategy for adaptation to climate change in the hydrocarbon sector of Colombia. • It started the process of coordination with the Ministry of Energy and Mines of Nicaragua and UNEP DTU consultant team to define the scope of the technical assistance to prepare the national strategy for adaptation to climate change in Nicaragua`s hydro-power sector. • It is under development the technical proposal on guidelines for climate change policy in the energy sector in Latin America and the Caribbean, with the support of a FONAM-Peru consultant. • There were prepared the terms of reference for a case study on the impact of climate change on energy infrastructure in the electricity sector in the countries of Central America.

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Sub-Project WBS #

1310 CAPEV (On-Line Energy Training) Program Objective: Train officials, technicians and specialists from the Ministries or Secretariats of Energy, public and private institutions of the sector, as well as private consultants from OLADE Member Countries, on topics of interest identified through surveys taken of the participants during previous courses, or through consultations with OLADE national coordinators, providing continuity and support to the CAPEV training program and sustainability to the knowledge gained from previous programs. COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

Specific Objectives for 2014-2015: • Prepare a CAPEV Training Plan for the next two years. • Deliver 18 new courses in 4 main areas: renewable energy, policy and regulation, hydrocarbons and power systems. • Trained officials: 2,700 participants to be trained on subjects defined for the third year. • Optimized system for program monitoring: develop an adequate tool for recording, evaluating and following up on the Courses. Outcomes to date: • It was prepared the logistics and technical agenda for the Workshop to prepare the CAPEV program for the next two years. • 10 CAPEV courses were developed. • 2,584 participants trained in 10 courses, 31% were women. • Prepared the call for consultancy on monitoring system for the optimization of CAPEV courses.

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Sub-Project WBS #

1330 Technical Experts Networks Objective: Foster the training and consolidation of networks of experts from the region in the fields of climate change, renewable energy, hydrocarbons and energy integration, by using virtual technological platforms (referred to as Knowledge Platforms) as a means by which to review, discuss and exchange experiences and best practices among experts. Specific objectives for 2014-2015:

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• Consolidate the regional knowledge platform and the technical networks of experts by maintaining the tool for the information, redaction and publication of articles related to the topic of each network, formulating discussion topics through forums created for this purpose, making documents available that are related to the topic of each network. • Research and share information related to the specific topic of each network through the platform, and promote the Network. • Ensure sustainability of the knowledge platform and network of experts. Outcomes to date: • 7 technical networks in operation with 1,079 registered participants. • 9 Webinars: Technical regulations for exploration and exploitation of unconventional reservoirs in Colombia Implementation of the South Gas Pipeline Network Integration Dynamic of Electricity Markets, Case Study: Colombia, Ecuador and Panama Sustainable access to electricity through the use of Smart micro-grids Costs and Benefits of the Micro-smart grids Introduction of Gender and Energy Presentation of the Guide of Gender and Power of OLADE-UICN- ENERGIA for Trainers and managers of public policy and energy projects and dissemination of OLADE’s 1st CAPEV course on Gender and Energy Voluntary carbon market and renewable electrification Energy forecast for renewable energy, “Automation and WEATHER FORECAST MODEL RESEARCH - WRF.” • 4 technical papers in preparation for networks: Climate Change, Oil, Renewable Energy and Energy Integration • 2 technical documents on review for Electricity and Energy networks and Access. • News and documents continuously updated. 19

Sub-Project WBS #

1350 Executive Development Program on Energy Planning (EDPEP) Objective: Support the training of practitioners in LAC region especially interested in the planning, formulation, and implementation of energy policies, through development and delivery of three EDPEP Programs, one in each OLADE sub-region. Topics include: energy sector in the LAC, energy integration, infrastructure and services related to energy production, transmission and distribution, forecasting energy needs, energy pricing, and global trends in renewable energy and energy efficiency. Specific Objectives for 2014-2015: COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 1

• Develop the 2nd EDPEP Program addressed to participants from Mexico and Central America countries considering 10 virtual courses and one in-presence module. Outcomes to date: • Implemented the Second Executive Development Program on Energy Planning for technicians from Mexico and Central America, which included 10 virtual courses and one face-to-face held in Tegucigalpa, Honduras. • 340 professionals were trained from 19 countries of the Region (112 were women) included Mexico and Central American countries. 318 technicians participated in virtual trainings and 22 in face-to-face trainings in the Module made in ​​ Honduras. • Opportunity Chance: 97%, and indicator of customer rating: 97.45%.

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SOCIAL, GENDER AND ENVIRONMENTAL ASPECTS

Sub-Project WBS #

2110 Promoting Corporate Social Responsibility (CSR) MODULE 1: Technical Support to Central America Activities and results for this module were completed on March 2014.

MODULE 2: Regional Publication of the CSR Principles: COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 2

Objective: Providing the governments, civil society and the private sector in Central America with information on the benefits of CSR for competitiveness in the energy sector, fostering and strengthening local, regional, and national spaces for communication and dialogue that allow for the development of responsible investments in energy, environmental and social terms. Specific Objectives for 2014-2015: • Two sub-regional workshops to disseminate the principles of CSR in the energy sector (one in the Caribbean and one in South America). Outcomes to date: • Logistics and technical agenda prepared for the realization of the Sub-regional Workshop to be held in the Caribbean on December 2014.

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Sub-Project WBS #

2110 MODULE 4: Transparency Initiative for Extraction Industries (EITI) Objective: To analyze the status of transparency (with regard to hydrocarbon fiscal revenues) in some countries of LAC with regards to the administration of resources resulting from the petroleum and gas industry, and propose recommendations for these countries to prepare themselves to join the EITI Organization.

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Specific Objectives for 2014-2015: • Support a media streaming (development of documentaries, newsletters, inserts in newspapers, talks with media, local authorities and group of interest, commercials on radio and television) in Colombia to disseminate the benefits to be part of the EITI • Disseminate lessons learned on EITI at regional level. Outcomes to date: • Contract prepared with the consulting firm selected to conduct the publicity campaign of the Initiative in Colombia. • In coordination the Regional Workshop to be held in Guatemala in November 2014.

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Sub-Project WBS #

2110 Promoting Corporate Social Responsibility (CSR)

MODULE 5: Energy, Environment and Population Program (EEP): Objective;

COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 2

Foster constructive dialogue between the governments, companies and indigenous communities of the Andean countries of the Amazon: Bolivia, Colombia, Ecuador, Peru and Venezuela, regarding hydrocarbons exploration and exploitation, geared toward identifying common objectives that stimulate the socially and environmentally sustainable development of the hydrocarbons potential. Specific Objectives for 2014-2015: • Foster constructive dialogue between the governments, companies and indigenous communities regarding hydrocarbons production in Bolivia, Colombia and Peru, through case studies, national workshops, and technical exchange meetings to deliver tools that improve the relationship between actors. • Prepare initiatives with common tripartite objectives that stimulate the sustainable development of the hydrocarbon potential, based on the Work Plan agreed between OLADE, ARPEL and COICA (in fiscal year 2012-2013), which includes interest areas defined by countries: a) participatory monitoring of environmental and social impacts; b) treatment and solution of environmental liabilities; c) compensation principles and methodologies; d) conflict management and resolution; e) regulation of protected areas; and, f) prior and informed consultation. • Develop case studies on specific areas defined by Colombia and Peru to identify lessons learned, and the difficulties and benefits on the application of prior and informed consultation. • Undertake a regional technical meeting to exchange experiences and results of case studies. Outcomes to date: • Final Report of Case Study conducted in Colombia under review by OLADE, COICA and ARPEL. • Under development phase the Case Study in Peru, which started on September 15, 2014 and will run for 3 months. • National workshop held in Colombia attended by 48 participants of whom 20 were women. • National Workshop in Peru, logistics and technical agenda under organization phase, scheduled for December 2014. 24

Sub-Project WBS #

2210 Applying of CSR in Rural Energy Systems in Isolated Areas Objective: Improve the living conditions of populations in isolated areas (which are not connected to electricity grid) to stimulate productive activities that contribute to sustainable development of the communities (in pilot projects in Bolivia, Guatemala, Guyana). This will be done through private sector partnerships, with their financial contributions, and the application of CSR principles.

COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 2

Specific Objectives for 2014-2015: • Complete the pending activities for ensure the participation of public and private companies in Bolivia and Guyana; set up a rural company responsible for technically and financially developing the energy projects in each isolated zone of Bolivia and Guyana; and establish agreements between public and private companies and the rural company to support the development and sustainability of energy projects in Bolivia and Guyana. • Complete the technical – financial structure for the energy projects in isolated zones in Bolivia and Guyana while applying CSR, including the Environmental Impact Assessment (EIA) studies. • Implement the energy projects in communities in isolated areas of Bolivia and Guatemala and Guyana. Outcomes to date: • In development stage the Rural Enterprises in Bolivia. We are working with Territorial Base Organizations (OTB) in communities. • Rural Energy Enterprise for the 3 communities registered in the System of the Government of Guyana. • In the definition phase the mechanism for technical and financial sustainability in Bolivia. • Guatemala: under development the implementation phase of the production projects in 3 communities after the project partners built and put into operation the micro-hydro plant and distribution lines of electric power in the 3 communities.

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Sub-Project WBS #

1130 Developing of Gender Equality in Energy Decision-Making and Energy Access Objective: Incorporate, publish and apply the principles of Gender Equality in the overall activities of OLADE and its Member Countries as they develop energy policies and implement different energy sector initiatives. Specific Objectives for 2014-2015: COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 2

• Continue the mainstreaming strategy by conducting a sub-regional Dialogue in Gender and Energy in the Caribbean English speaking countries in order to train and develop national plans. • Support the incorporation of Gender in the energy sector through develops of technical assistance and training according to the Sub-regional and National Plans in LAC countries. • Incorporate Gender and Energy in the next Conference of the parties (COP) presenting a case study and the guidelines of training during the next meeting in 2014. • Strengthen the knowledge about gender and energy in the LAC countries through a Manual on Gender Equality and Energy developed by OLADE UICN and ENERGIA. • To develop and implement a strategy to strengthen Women’s Energy Committees in the rural communities where rural energy pilot projects are carried out in Guyana, Guatemala and Bolivia. • To undertake case studies about institutional energy-gender analysis in Jamaica. Outcomes to date: • Under organization the Sub-regional Dialogue on Energy and Gender for English-speaking countries, planned to be held on January 2015 in Jamaica. • Guide on Gender and Energy for Trainers and Managers of Public Policy and Projects, published in Spanish and disseminated on OLADE’s training events, in the Gender Network, and at the Project’s Website. • Technical assistance already developed to: Guatemala, Ecuador (virtual), Venezuela (virtual), Nicaragua, Dominican Republic, Uruguay (virtual), Honduras, Cuba, Haiti. • In coordination stage the presentation of the Guide on Gender and Energy, as well as the experience of Nicaragua in 2014 COP to be held in Lima in December 2014. • Gender Committees established in the 3 communities of the CSR Project in Rural areas in Guatemala. 26

Sub-Project WBS #

1340 Certificate on Energy and Social Inclusion Objective: Support training of practitioners in Latin America and Caribbean, especially those involved with the formulation and implementation of energy policies and social inclusion, and the study of issues related to such policies. The diploma program will include all social aspects of energy policies and energy development in the LAC Region. Specific Objectives for 2014-2015:

COOPERATION OLADE - GOVERNMENT OF CANADA · up to September 2014 · CLUSTER 2

• Specific agreement with FLACSO for developing the second program of certificate to be held in Guatemala. • Have a designed and structured certificate program for energy and social inclusion • Promotion of the certificate program in the countries and where the intention of participants has been received, using the CAPEV Coordinators in OLADE´s Member Countries and the FLACSO Facilities in some LAC countries. Outcomes to date: • Framework Cooperation Agreement and a specific agreement established between OLADE and the Latin American Faculty of Social Sciences (FLACSO) headquarters Guatemala to train officials in Ministries of Energy incorporating aspects of social responsibility programs and policies for the energy sector. • Defined the technical agenda (content, schedule, teachers, financing, timetable) the Second program of the Diploma Certificate and logistical details with FLACSO Guatemala. • Sent invitations to participants for the program that will begin on October 6, 2014 and will run for 6 weeks.

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