Global Environment Facility
The countries in the Caribbean region import most of their energy resources, and the very high costs of modern energy services have strong negative impacts on many aspects of their development. Yet, their renewable resources have massive potential yet to be tapped to provide accessible, reliable and sustainable energy. The Department of Sustainable Development of the Organization of American States (OAS/DSD) and the Antigua and Barbuda Environmental Division launched the Sustainable Island Resource Framework Fund (SIRF Fund) to encourage investments in small- and large-scale renewable energy (RE) (primarily solar and wind energy), sell renewable-energy electricity to the Antigua Public Utility Authority (APUA), and re-invest the revenues into environmental management.
Econoler was commissioned to support the development of the SIRF Fund and to develop and deliver a capacity-building program intended for the Fund staff.
Econoler’s experts first assessed the SIRF Fund staff’s internal capacity from strategic, technical and fund-management perspectives by conducting interviews with the SIRF’s staff and relevant stakeholders. Then, these experts developed templates for key documents and a training package to enable the SIRF staff to successfully structure and implement projects. The training materials and templates developed included:
- A power purchase agreement (PPA) template
- Engineering procurement construction (EPC) agreements
- Operation and maintenance (O&M) agreements
- Site lease agreements for public and private properties
- A technical glossary that identifies the key technical terms of investment
- Identification of insurance tools
- Maintenance or warranty agreement issues and negotiations
Finally, Econoler developed an operation manual of the SIRF Fund, including guidelines on how to conduct due diligence on proposed investments, risk assessment, monitoring and evaluation (M&E) of RE operations and cash flow monitoring and accounting. A training package on how to use the operation manual was also developed to enable the SIRF Fund’s staff to integrate best practices into the Fund’s management.
The training activities tailored to the needs of the SIRF staff and local specificities, along with the operation manual of the Fund and supporting templates, guidelines, training materials, provided strong support to SIRF fund management and helped ensure the sustainability of the Fund.