1 USAID VIETNAM LOW EMISSION ENERGY PROGRAM II (V-LEEP II) QUARTERLY REPORT FOR YEAR 1 QUARTER 1 (OCTOBER – DECEMBER 2020) JANUARY 15, 2021

Kinh Doanh - Tiếp Thị - Công Nghệ Thông Tin, it, phầm mềm, website, web, mobile app, trí tuệ nhân tạo, blockchain, AI, machine learning - Kinh Doanh - Business 1 USAID VIETNAM LOW EMISSION ENERGY PROGRAM II (V-LEEP II) Quarterly Report for Year 1 Quarter 1 (October – December 2020) January 15, 2021 This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Deloitte Consulting LLP and its implementing partners and do not necessarily reflect the views of USAID or the United States Government. i USAID VIETNAM LOW EMISSION ENERGY PROGRAM II (V-LEEP II) Quarterly Report for Year 1 Quarter 1 (October – December 2020) Prepared for: USAIDVietnam, Environment and Social Development Office Prepared by: Contract No. USAID 7200AA19D00025 72044020F00003 January 15, 2021 This report is made possible by the support of the American people through the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of Deloitte Consulting LLP and its implementing partners and do not necessarily reflect the views of USAID or the United States Government. ii TABLE OF CONTENTS Table of Contents ........................................................................................................................................ ii Acronyms and Abbreviations ................................................................................................................... iii 1. Executive Summary ............................................................................................................................ 1 2. Báo Cáo Tóm Tắt ................................................................................................................................. 2 3. Purpose and Approach ....................................................................................................................... 3 4. Progress Update ................................................................................................................................. 5 4.1 Towards Objectives ....................................................................................................................... 5 4.2 Towards Approved MEL Indicators ............................................................................................. 10 4.3 Summary of Completed Interventions and Progress Towards Results ...................................... 10 4.4 Communications and Outreach Plan .......................................................................................... 10 4.5 Gender and Social Inclusion Action Plan .................................................................................... 11 4.6 Private Sector Engagement Plan ................................................................................................ 11 4.7 List of ServicesDeliverables Completed in the Reporting Period .............................................. 11 4.8 Explanation of Quantifiable Outputs of the Tasks ....................................................................... 12 4.9 Reasons Why Established Targets were not Met (If Applicable) ................................................ 12 4.10 Short-Term Technical Advisor(s) Progress ................................................................................. 12 4.11 The Use of Small and Disadvantaged Business Relative to the Target Identified ................................................................................................................................................. 12 4.12 Issues and Mitigation Measures.................................................................................................. 12 5. Upcoming Plan .................................................................................................................................. 12 5.1 Major Interventions Planned for the Next Quarter ...................................................................... 12 5.2 Indicators with Targets for the Next Quarter ............................................................................... 13 5.3 Projected USAID Approvals, Waivers or Deviation Requests Anticipated During the Next Quarter .......................................................................................................................... 13 6. Status of Required Audit Processes (Including for Sub-Awardees) ........................................... 13 7. USAID Success Stories .................................................................................................................... 13 8. Status of Implementing Conditions Under IEE Asia 20-035 ......................................................... 13 iii ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank ASP Activity Start-Up Plan CDCS Country Development Cooperation Strategy CO Contracting Officer COGD Coal, Oil and Gas Department COP Chief of Party COR Contracting Officer’s Representative DOI Department of Interior DPPA Direct Power Purchase Agreement EESD Energy Efficiency and Sustainable Development EMMP Environmental Mitigation and Monitoring Plan ERAV Electricity Regulatory Authority of Vietnam EREA Electricity and Renewable Energy Authority FY Fiscal Year GVN Government of Vietnam GW Gigawatts IEE Initial Environmental Examination ITAP International Technical Assistance Program KWh Kilowatt hour LNG Liquefied Natural Gas MEL Monitoring, Evaluation, and Learning MOIT Ministry of Industry and Trade MW Megawatt MWh Megawatt hour O Objective O1 Objective 1 O2 Objective 2 O3 Objective 3 ODA Official Development Assistance PDP Power Development Plan PDP-7 Seventh Power Development Plan PDP-8 Eighth Power Development Plan PSE Private Sector Engagement PSSE Power System Simulator for Engineering Q Quarter Q1 Quarter 1 Q2 Quarter 2 Q3 Quarter 3 Q4 Quarter 4 RE Renewable Energy RFP Request for Proposal RFQ Request for Qualifications SOW Statements of Work T Task USAID United States Agency for International Development USG US Government V-LEEP Vietnam Low Emission Energy Program V-LEEP II Vietnam Low Emission Energy Program II vRE Variable Renewable Energy Y Year Y1 Year 1 1 1. EXECUTIVE SUMMARY USAID’s Vietnam Low Emission Energy Program II (V-LEEP II) aims to advance the transition of Vietnam to a clean, secure, and market-based energy sector by increasing the deployment of advanced energy systems, improving energy sector performance, and increasing competition in the energy sector. During the first quarter of operation (i.e., from the program start date of September 30, 2020 through December 31, 2020) the V-LEEP II team focused on the rapid start-up of activities, such as the timely establishment of an office and key technical, management, and logistical requirements that include planning and scheduling for team members. The team ensured that the Chief of Party was at post in Hanoi on the program’s first day and that the home office leadership and management team was appointed soon after; with all these team members formally approved by USAID. Drawing on the resources of the original USAID Vietnam Low Emission Energy Program (V-LEEP; 2015 – 2021), V-LEEP II was able to ensure immediate operational presence. To build out its team, the program coordinated with the Contracting Officer (CO) and Contracting Officer’s Representative (COR) to design and manage a robust process to engage local resources. The team immediately developed and launched its approach to secure approval as an Official Development Assistance (ODA) program, a prerequisite for successful operation in Vietnam. This included appointing a local coordinator, helping to ensure that a key champion for the program emerged within the Government of Vietnam (GVN) and was appointed as the official focal point, and utilizing both formal and informal channels to discuss GVN priorities and agree upon key activities for V-LEEP II. V-LEEP II is now poised for successful development and finalization of key program underpinnings in the next quarter – including the foundational Monitoring, Evaluation and Learning (MEL) Plan and the first annual Work Plan. 2 2. BÁO CÁO TÓM TẮT Chương trình Năng lượng Phát thải thấp Việt Nam II của USAID (V-LEEP II) nhằm mục tiêu thúc đẩy quá trình chuyển đổi sang lĩnh vực năng lượng sạch của Việt Nam, theo định hướng thị trường và đảm bảo an ninh năng lượng thông qua việc tăng cường triển khai các hệ th ống năng lượng tiên tiến, cải thiện hiệu quả hoạt động và nâng cao khả năng cạnh tranh trong lĩnh vực năng lượng. Trong quý đầu tiên sau khi dự án đi vào hoạt động (từ ngày 30 tháng 9 năm 2020 là ngày bắt đầu chương trình đến hết ngày 31 tháng 12 năm 2020), V-LEEP II tập trung vào các hoạt động khởi động dự án, ví dụ như nhanh chóng thành lập văn phòng dự án, triển khai các yêu cầu về kỹ thuật, quản lý và hậu cần chính, bao gồm nhiệm vụ lập kế hoạch và xây dựng lị ch trình cho nhân sự dự án. Nhóm triển khai dự án đã tiến hành các công việc nhằm đảm bảo Giám đốc Dự án có mặt tạ i Hà Nội ngay từ ngày đầu tiên của chương trình; đội ngũ lãnh đạo và quản lý tại trụ sở được bổ nhiệm ngay sau đó và được USAID chính thức phê duyệt. Được thiết kế dựa trên nguồn lực của Chương trình Năng lượng Phát thải thấp Việt Nam ban đầu (V-LEEP; 2015 – 2021) nên V-LEEP II có thể nhanh chóng sẵn sàng đi vào hoạt động. Trong hoạt động xây dựng đội ngũ cán bộ dự án, chương trình phối hợp với Cán bộ Hợp đồng (CO) và Đ ại diện Cán bộ Hợp đồ ng (COR) xây dựng, quản lý quá trình tuyển dụng nguồn lực địa phương một cách hiệu quả. Nhóm triển khai dự án đã xây dựng và triển khai phương pháp tiếp cậ n cho quá trình xin phê duyệt chương trình Hỗ trợ Phát triển Chính thức (ODA), là điều kiện tiên quyết để chương trình có thể hoạt động thành công tại Việt Nam. Quá trình này bao gồm việc chỉ định một cán bộ điề u phối trong nước hỗ trợ xác định cơ quan đầu mối chính thức của Chính phủ Việt Nam (GVN), huy động các kênh chính thức và phi chính thức để thảo luận về các ưu tiên của Chính phủ Việ t Nam, cùng thống nhất về các hoạt động chính của V-LEEP II. V-LEEP II hiện đã sẵn sàng cho việc xây dựng và hoàn thiện các kế hoạch chính của chương trình trong quý tới – bao gồm Kế hoạch Giám sát, Đánh giá và Học tập (MEL) và Kế hoạch Hoạt động năm đầu tiên. 3 3. PURPOSE AND APPROACH Problem Statement As a result of Vietnam’s fast-growing economy and intensive energy consumption patterns, the country’s energy demand is increasing at about 10 percent per year, among the highest rates in the region and in the world. Furthermore, the country has become a net-energy importer, increasing its dependence on external sources of energy while relying heavily on thermal (coal) power. The country will need US8-10 billion annually in energy sector investment over the next decade to account for the increasing energy demand and forecasted energy shortages. The GVN predicts shortages of over 3.7 billion kWh in 2021 and 10 billion kWh in 2022. Over the past three years, Vietnam has added almost 10 Gigawatts (GW) of solar capacity to its power grid. However, poorly planned grid infrastructure resulted in massive renewable energy curtailments. Robust long-term planning and appropriate policy incentives are needed to attract critical private sector investment and move the sector toward a functioning power sector with cleaner, more sustainable resources. Supporting the Government of Vietnam to build their capacity to develop their long-term energy plans, advance utility operation practices, and improve the enabling environment through private- public partnerships will ensure that adequate capital is available for a diversified and more secure energy system. Theory of Change Fueling sustainable economic growth and development in Vietnam will require meeting growing energy demand through the provision of clean, secure, and market-based energy solutions. If advanced energy systems are deployed, energy sector performance is improved, and competition for energy services is increased, then Vietnam will transition to a more clean, secure, and market- based energy sector. Activity Goal The primary goal of this activity is to advance the transition of Vietnam to a clean, secure and market-based energy sector by increasing the deployment of advanced energy systems, improving energy sector performance and increasing competition in the energy sector. Specific Objectives The specific objectives of this activity are to: Increase the deployment of advanced energy systems through improving enabling poli- cies, laws, and regulations and mobilizing private investment. Improve energy sector performance through improving planning and operation practices. Increase energy sector competition by promoting transparent procurement practices and increasing the availability of advanced energy skilled workforce, products, and services. 4 Approach Our approach to V-LEEP II stems from our deep understanding of the complexities of the Vietnamese power sector that the delivery team has gained over the past five years under the original V-LEEP. This knowledge, and the strong relationships we have developed across the Vietnamese public and private sectors, has not only enabled multiple energy reforms under V- LEEP; it will also help to accelerate V-LEEP II’s expanded objectives and outcomes. To accomplish V-LEEP II’s aggressive objectives of increasing advanced energy systems deployment (O1), improving sector performance (O2), and increasing sector competition (O3), we have designed a series of program Tasks (T1-T8) to address the five key risks inherent to Vietnam’s energy sector (Policy and Regulatory, Transactional, Planning and Operations, Institutional, and Workforce). These five risks must be reduced to levels that support viable rates of return for private investors, else third party capital is unlikely to be available to support new generation, transmission, or gas-supply projects. Our Risk Framework aligns V-LEEP II’s Objectives and Tasks with these five key risks, detailed below. Task activities will be prioritized to address specific challenges, garner support from publicprivate stakeholders, and realize V-LEEP II’s expected outcomes. Policy Regulatory Risk mitigation is the key to creating a functional Liquefied Natural Gas (LNG) market, thereby compensating for Vietnam’s declining domestic gas and expanding variable renewable energy (vRE) balancing needs. Building on Department of Interior (DOI) International Technical Assistance Program (ITAP) activities, Task 1 (T1) will support the implementation of policy and regulations on LNG infrastructure development by helping the GVN to promote cost reflective tariffs and flexible policies – thus accelerating scalable LNG capacity at competitive costs (O1:T1). Transactional Risk mitigation includes assistance in Task 2 to advanced RE developers to navigate approvals and licensing procedures, plus promote the use of non-recourse project financing, rather than relying on public debt and guarantees (O1:T2). We will continue USAID’s active support for the soon-to-be launched Direct Power Purchase Agreement (DPPA) pilot mechanism and a scaled-up DPPA 2 successor program under Task 5 (O3:T5), by which private capital will finance more reliable renewable energy (RE) supplies for global manufacturers in Vietnam to meet their sustainability goals. Planning Operations Risk mitigation is addressed via Task 3, which will provide inclusive trainings and support to finalize and implement the eighth National Power Development Plan (PDP-8) (O2:T3), address vRE grid integration challenges through better transmission planning that reduces grid congestion and curtailment, and improve vRE predictions, scheduling, and dispatch. Support will build on our established relationships and include training on PSSE and PLEXOS under Task 4 (O2:T4). Institutional Risk : Provinces are slated to develop competitive procurement processes to implement projects from PDP-8, but few have training or experience in the practicalities of project development, tender management, or investor relations. Building upon our national-level work under V-LEEP, Task 6 will build the capacity of provincial governments to adopt competitive procurement processes. Deloitte will provide training, capacity development, and procurement assistance, as appropriate and approved by USAID to promote transparent processes (O3:T6). 5 Workforce Risk : Vietnam’s historical focus on hydropower, coal, and state-owned utilities has resulted in a patriarchalhierarchical sector at odds with today’s need for entrepreneurs familiar with clean technologies and flexible markets. Using grants, bootcamps, and scalable business models, Task 7 will create an entrepreneurial energy ecosystem that complements existing structures via the use of advanced technologies (O3:T7). Under Task 8, we will promote the role of women in energy by supporting internships, mentorship, and networking initiatives (O3:T8). Our technical approach also incorporates gender and social inclusion as an integral part of task design and implementation, resulting in reduced risks, more sustainable reform activities, greater achievement of results for the program as a whole, and a more equitable distribution of benefits. We will achieve these goals through the creation of gender and vulnerable populations’ action plans (developed as part of the annual Work Plan process) that will inform stakeholder outreach and engagement, policy design and implementation, institutional strengthening and workforce capacity development, as well as results monitoring, evaluation and learning. Our technical approach also considers Vietnam’s long-term energy sector sustainability by proactively encouraging counterparts to balance security of supply, affordability, and environmental factors with a commitment to institutional strengthening, leadership development, and the adoption of leading practices. We will support private sector engagement by working with diverse local partners, strategically using V-LEEP 2’s Activity Fund, and via engagement with higher-education and other skills-building institutions. 4. PROGRESS UPDATE 4.1 TOWARDS OBJECTIVES Overview During the first 90 calendar days of the Task Order – which corresponds precisely with the first quarter of program year one – the V-LEEP II Team focused on the rapid start-up of activities. As specified in the Task Order and presented in the team’s Activity Start-Up Plan (ASP), rapid start- up includes the timely establishment of an office as well as key technical, management, and logistical (vehicle, office space, staffing, etc.) requirements, such as planning and scheduling for the prompt mobilization of the Chief of Party (COP) and timeline for mobilization of other key personnel and hiring of staff. Context V-LEEP II follows the 5.5-year US15.9M USAID Vietnam Low Emission Energy Program (V- LEEP) which began on September 1, 2015 and ends on February 28, 2021. V-LEEP has worked with the GVN to create a robust enabling environment and attract private sector investment for clean energy development. Initially slated to end on September 1, 2020, V-LEEP was extended for an additional six months and will now conclude on February 28, 2021. This extension allows for five months of overlap between V-LEEP and V-LEEP II. Opportunities The overlap period has allowed for continuity, rapid start-up, and efficiency as V-LEEP II benefited from the availability of V-LEEP’s staff, office space, operations processes, and institutional 6 knowledge. The team has drawn on the support of V-LEEP staff, and anticipates transferring existing V-LEEP facilities (e.g., office space), systems, and equipment to V-LEEP II during the start-up phase to conserve resources. Authorization Cost Allocation Deloitte’s approach to leverage V-LEEP to start-up V-LEEP II is consistent with the V-LEEP Task Order, which requires in its Statement of Work that “the Contractor must coordinate activities with other USAIDUS Government (USG) climate change and energy programs and collaborate with other donors and implementing partners working in clean energy in Vietnam”. Over its five-year duration, V-LEEP helped several USAID and USG programs address issues related to startup, registration, and socialization. Most recently this included extensive support for the Vietnam Urban Energy Security Program, which is implemented by DAI. Deloitte’s suggestion that V-LEEP provide similar support to V-LEEP II was well-received by the COR and the CO in the V-LEEP II kick-off call on August 11, 2020. Following this kick-off discussion, on August 25, 2020 Deloitte submitted an initial budget and expenditure projection for V-LEEP II for the period September 30, 2020 to February 28, 2021 showing the anticipated cost distribution between V-LEEP and V-LEEP II over that period. The COR responded via email on August 25, 2020 confirming that this analysis was reasonable and in line with USAID’s expectations. On October 27, 2020, Deloitte submitted its official Cost Allocation Methodology via a letter to the CO. This methodology divides V-LEEP II’s projected costs into four categories (labor, allowances, travel, and other direct costs) and broadly outlines a specific approach for cost allocation to each. On October 9, 2020 Deloitte requested approval from the CO that Mr. John Bruce Wells assume his full-time role as COP for V-LEEP II effective November 1, 2020. I...

USAID VIETNAM LOW EMISSION ENERGY PROGRAM II (V-LEEP II) Quarterly Report for Year 1 Quarter 1 (October – December 2020) January 15, 2021 This report is made possible by the support of the American people through the United States Agency for International Development (USAID) The contents of this report are the sole responsibility of Deloitte Consulting LLP and its implementing partners and do not necessarily reflect the views of USAID or the United States Government 1 USAID VIETNAM LOW EMISSION ENERGY PROGRAM II (V-LEEP II) Quarterly Report for Year 1 Quarter 1 (October – December 2020) Prepared for: USAID/Vietnam, Environment and Social Development Office Prepared by: Contract No USAID 7200AA19D00025 / 72044020F00003 January 15, 2021 This report is made possible by the support of the American people through the United States Agency for International Development (USAID) The contents of this report are the sole responsibility of Deloitte Consulting LLP and its implementing partners and do not necessarily reflect the views of USAID or the United States Government i TABLE OF CONTENTS Table of Contents ii Acronyms and Abbreviations iii 1 Executive Summary 1 2 Báo Cáo Tóm Tắt 2 3 Purpose and Approach 3 4 Progress Update 5 4.1 Towards Objectives 5 4.2 Towards Approved MEL Indicators 10 4.3 Summary of Completed Interventions and Progress Towards Results 10 4.4 Communications and Outreach Plan 10 4.5 Gender and Social Inclusion Action Plan 11 4.6 Private Sector Engagement Plan 11 4.7 List of Services/Deliverables Completed in the Reporting Period 11 4.8 Explanation of Quantifiable Outputs of the Tasks 12 4.9 Reasons Why Established Targets were not Met (If Applicable) 12 4.10 Short-Term Technical Advisor(s) Progress 12 4.11 The Use of Small and Disadvantaged Business Relative to the Target Identified 12 4.12 Issues and Mitigation Measures 12 5 Upcoming Plan 12 5.1 Major Interventions Planned for the Next Quarter 12 5.2 Indicators with Targets for the Next Quarter 13 5.3 Projected USAID Approvals, Waivers or Deviation Requests Anticipated During the Next Quarter 13 6 Status of Required Audit Processes (Including for Sub-Awardees) 13 7 USAID Success Stories 13 8 Status of Implementing Conditions Under IEE Asia 20-035 13 ii ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank ASP Activity Start-Up Plan CDCS Country Development Cooperation Strategy CO Contracting Officer COGD Coal, Oil and Gas Department COP Chief of Party COR Contracting Officer’s Representative DOI Department of Interior DPPA Direct Power Purchase Agreement EESD Energy Efficiency and Sustainable Development EMMP Environmental Mitigation and Monitoring Plan ERAV Electricity Regulatory Authority of Vietnam EREA Electricity and Renewable Energy Authority FY Fiscal Year GVN Government of Vietnam GW Gigawatts IEE Initial Environmental Examination ITAP International Technical Assistance Program KWh Kilowatt hour LNG Liquefied Natural Gas MEL Monitoring, Evaluation, and Learning MOIT Ministry of Industry and Trade MW Megawatt MWh Megawatt hour O Objective O1 Objective 1 O2 Objective 2 O3 Objective 3 ODA Official Development Assistance PDP Power Development Plan PDP-7 Seventh Power Development Plan PDP-8 Eighth Power Development Plan PSE Private Sector Engagement PSS/E Power System Simulator for Engineering Q Quarter Q1 Quarter 1 Q2 Quarter 2 Q3 Quarter 3 Q4 Quarter 4 RE Renewable Energy RFP Request for Proposal RFQ Request for Qualifications SOW Statements of Work T Task USAID United States Agency for International Development USG US Government V-LEEP Vietnam Low Emission Energy Program V-LEEP II Vietnam Low Emission Energy Program II vRE Variable Renewable Energy Y Year Y1 Year 1 iii 1 EXECUTIVE SUMMARY USAID’s Vietnam Low Emission Energy Program II (V-LEEP II) aims to advance the transition of Vietnam to a clean, secure, and market-based energy sector by increasing the deployment of advanced energy systems, improving energy sector performance, and increasing competition in the energy sector During the first quarter of operation (i.e., from the program start date of September 30, 2020 through December 31, 2020) the V-LEEP II team focused on the rapid start-up of activities, such as the timely establishment of an office and key technical, management, and logistical requirements that include planning and scheduling for team members The team ensured that the Chief of Party was at post in Hanoi on the program’s first day and that the home office leadership and management team was appointed soon after; with all these team members formally approved by USAID Drawing on the resources of the original USAID Vietnam Low Emission Energy Program (V-LEEP; 2015 – 2021), V-LEEP II was able to ensure immediate operational presence To build out its team, the program coordinated with the Contracting Officer (CO) and Contracting Officer’s Representative (COR) to design and manage a robust process to engage local resources The team immediately developed and launched its approach to secure approval as an Official Development Assistance (ODA) program, a prerequisite for successful operation in Vietnam This included appointing a local coordinator, helping to ensure that a key champion for the program emerged within the Government of Vietnam (GVN) and was appointed as the official focal point, and utilizing both formal and informal channels to discuss GVN priorities and agree upon key activities for V-LEEP II V-LEEP II is now poised for successful development and finalization of key program underpinnings in the next quarter – including the foundational Monitoring, Evaluation and Learning (MEL) Plan and the first annual Work Plan 1 2 BÁO CÁO TÓM TẮT Chương trình Năng lượng Phát thải thấp Việt Nam II của USAID (V-LEEP II) nhằm mục tiêu thúc đẩy quá trình chuyển đổi sang lĩnh vực năng lượng sạch của Việt Nam, theo định hướng thị trường và đảm bảo an ninh năng lượng thông qua việc tăng cường triển khai các hệ thống năng lượng tiên tiến, cải thiện hiệu quả hoạt động và nâng cao khả năng cạnh tranh trong lĩnh vực năng lượng Trong quý đầu tiên sau khi dự án đi vào hoạt động (từ ngày 30 tháng 9 năm 2020 là ngày bắt đầu chương trình đến hết ngày 31 tháng 12 năm 2020), V-LEEP II tập trung vào các hoạt động khởi động dự án, ví dụ như nhanh chóng thành lập văn phòng dự án, triển khai các yêu cầu về kỹ thuật, quản lý và hậu cần chính, bao gồm nhiệm vụ lập kế hoạch và xây dựng lịch trình cho nhân sự dự án Nhóm triển khai dự án đã tiến hành các công việc nhằm đảm bảo Giám đốc Dự án có mặt tại Hà Nội ngay từ ngày đầu tiên của chương trình; đội ngũ lãnh đạo và quản lý tại trụ sở được bổ nhiệm ngay sau đó và được USAID chính thức phê duyệt Được thiết kế dựa trên nguồn lực của Chương trình Năng lượng Phát thải thấp Việt Nam ban đầu (V-LEEP; 2015 – 2021) nên V-LEEP II có thể nhanh chóng sẵn sàng đi vào hoạt động Trong hoạt động xây dựng đội ngũ cán bộ dự án, chương trình phối hợp với Cán bộ Hợp đồng (CO) và Đại diện Cán bộ Hợp đồng (COR) xây dựng, quản lý quá trình tuyển dụng nguồn lực địa phương một cách hiệu quả Nhóm triển khai dự án đã xây dựng và triển khai phương pháp tiếp cận cho quá trình xin phê duyệt chương trình Hỗ trợ Phát triển Chính thức (ODA), là điều kiện tiên quyết để chương trình có thể hoạt động thành công tại Việt Nam Quá trình này bao gồm việc chỉ định một cán bộ điều phối trong nước hỗ trợ xác định cơ quan đầu mối chính thức của Chính phủ Việt Nam (GVN), huy động các kênh chính thức và phi chính thức để thảo luận về các ưu tiên của Chính phủ Việt Nam, cùng thống nhất về các hoạt động chính của V-LEEP II V-LEEP II hiện đã sẵn sàng cho việc xây dựng và hoàn thiện các kế hoạch chính của chương trình trong quý tới – bao gồm Kế hoạch Giám sát, Đánh giá và Học tập (MEL) và Kế hoạch Hoạt động năm đầu tiên 2 3 PURPOSE AND APPROACH Problem Statement As a result of Vietnam’s fast-growing economy and intensive energy consumption patterns, the country’s energy demand is increasing at about 10 percent per year, among the highest rates in the region and in the world Furthermore, the country has become a net-energy importer, increasing its dependence on external sources of energy while relying heavily on thermal (coal) power The country will need US$8-10 billion annually in energy sector investment over the next decade to account for the increasing energy demand and forecasted energy shortages The GVN predicts shortages of over 3.7 billion kWh in 2021 and 10 billion kWh in 2022 Over the past three years, Vietnam has added almost 10 Gigawatts (GW) of solar capacity to its power grid However, poorly planned grid infrastructure resulted in massive renewable energy curtailments Robust long-term planning and appropriate policy incentives are needed to attract critical private sector investment and move the sector toward a functioning power sector with cleaner, more sustainable resources Supporting the Government of Vietnam to build their capacity to develop their long-term energy plans, advance utility operation practices, and improve the enabling environment through private- public partnerships will ensure that adequate capital is available for a diversified and more secure energy system Theory of Change Fueling sustainable economic growth and development in Vietnam will require meeting growing energy demand through the provision of clean, secure, and market-based energy solutions If advanced energy systems are deployed, energy sector performance is improved, and competition for energy services is increased, then Vietnam will transition to a more clean, secure, and market- based energy sector Activity Goal The primary goal of this activity is to advance the transition of Vietnam to a clean, secure and market-based energy sector by increasing the deployment of advanced energy systems, improving energy sector performance and increasing competition in the energy sector Specific Objectives The specific objectives of this activity are to: • Increase the deployment of advanced energy systems through improving enabling poli- cies, laws, and regulations and mobilizing private investment • Improve energy sector performance through improving planning and operation practices • Increase energy sector competition by promoting transparent procurement practices and increasing the availability of advanced energy skilled workforce, products, and services 3 Approach Our approach to V-LEEP II stems from our deep understanding of the complexities of the Vietnamese power sector that the delivery team has gained over the past five years under the original V-LEEP This knowledge, and the strong relationships we have developed across the Vietnamese public and private sectors, has not only enabled multiple energy reforms under V- LEEP; it will also help to accelerate V-LEEP II’s expanded objectives and outcomes To accomplish V-LEEP II’s aggressive objectives of increasing advanced energy systems deployment (O1), improving sector performance (O2), and increasing sector competition (O3), we have designed a series of program Tasks (T1-T8) to address the five key risks inherent to Vietnam’s energy sector (Policy and Regulatory, Transactional, Planning and Operations, Institutional, and Workforce) These five risks must be reduced to levels that support viable rates of return for private investors, else third party capital is unlikely to be available to support new generation, transmission, or gas-supply projects Our Risk Framework aligns V-LEEP II’s Objectives and Tasks with these five key risks, detailed below Task activities will be prioritized to address specific challenges, garner support from public/private stakeholders, and realize V-LEEP II’s expected outcomes Policy & Regulatory Risk mitigation is the key to creating a functional Liquefied Natural Gas (LNG) market, thereby compensating for Vietnam’s declining domestic gas and expanding variable renewable energy (vRE) balancing needs Building on Department of Interior (DOI) International Technical Assistance Program (ITAP) activities, Task 1 (T1) will support the implementation of policy and regulations on LNG infrastructure development by helping the GVN to promote cost reflective tariffs and flexible policies – thus accelerating scalable LNG capacity at competitive costs (O1:T1) Transactional Risk mitigation includes assistance in Task 2 to advanced RE developers to navigate approvals and licensing procedures, plus promote the use of non-recourse project financing, rather than relying on public debt and guarantees (O1:T2) We will continue USAID’s active support for the soon-to-be launched Direct Power Purchase Agreement (DPPA) pilot mechanism and a scaled-up DPPA 2 successor program under Task 5 (O3:T5), by which private capital will finance more reliable renewable energy (RE) supplies for global manufacturers in Vietnam to meet their sustainability goals Planning & Operations Risk mitigation is addressed via Task 3, which will provide inclusive trainings and support to finalize and implement the eighth National Power Development Plan (PDP-8) (O2:T3), address vRE grid integration challenges through better transmission planning that reduces grid congestion and curtailment, and improve vRE predictions, scheduling, and dispatch Support will build on our established relationships and include training on PSS/E and PLEXOS under Task 4 (O2:T4) Institutional Risk: Provinces are slated to develop competitive procurement processes to implement projects from PDP-8, but few have training or experience in the practicalities of project development, tender management, or investor relations Building upon our national-level work under V-LEEP, Task 6 will build the capacity of provincial governments to adopt competitive procurement processes Deloitte will provide training, capacity development, and procurement assistance, as appropriate and approved by USAID to promote transparent processes (O3:T6) 4 Workforce Risk: Vietnam’s historical focus on hydropower, coal, and state-owned utilities has resulted in a patriarchal/hierarchical sector at odds with today’s need for entrepreneurs familiar with clean technologies and flexible markets Using grants, bootcamps, and scalable business models, Task 7 will create an entrepreneurial energy ecosystem that complements existing structures via the use of advanced technologies (O3:T7) Under Task 8, we will promote the role of women in energy by supporting internships, mentorship, and networking initiatives (O3:T8) Our technical approach also incorporates gender and social inclusion as an integral part of task design and implementation, resulting in reduced risks, more sustainable reform activities, greater achievement of results for the program as a whole, and a more equitable distribution of benefits We will achieve these goals through the creation of gender and vulnerable populations’ action plans (developed as part of the annual Work Plan process) that will inform stakeholder outreach and engagement, policy design and implementation, institutional strengthening and workforce capacity development, as well as results monitoring, evaluation and learning Our technical approach also considers Vietnam’s long-term energy sector sustainability by proactively encouraging counterparts to balance security of supply, affordability, and environmental factors with a commitment to institutional strengthening, leadership development, and the adoption of leading practices We will support private sector engagement by working with diverse local partners, strategically using V-LEEP 2’s Activity Fund, and via engagement with higher-education and other skills-building institutions 4 PROGRESS UPDATE 4.1 TOWARDS OBJECTIVES Overview During the first 90 calendar days of the Task Order – which corresponds precisely with the first quarter of program year one – the V-LEEP II Team focused on the rapid start-up of activities As specified in the Task Order and presented in the team’s Activity Start-Up Plan (ASP), rapid start- up includes the timely establishment of an office as well as key technical, management, and logistical (vehicle, office space, staffing, etc.) requirements, such as planning and scheduling for the prompt mobilization of the Chief of Party (COP) and timeline for mobilization of other key personnel and hiring of staff Context V-LEEP II follows the 5.5-year US$15.9M USAID Vietnam Low Emission Energy Program (V- LEEP) which began on September 1, 2015 and ends on February 28, 2021 V-LEEP has worked with the GVN to create a robust enabling environment and attract private sector investment for clean energy development Initially slated to end on September 1, 2020, V-LEEP was extended for an additional six months and will now conclude on February 28, 2021 This extension allows for five months of overlap between V-LEEP and V-LEEP II Opportunities The overlap period has allowed for continuity, rapid start-up, and efficiency as V-LEEP II benefited from the availability of V-LEEP’s staff, office space, operations processes, and institutional 5 knowledge The team has drawn on the support of V-LEEP staff, and anticipates transferring existing V-LEEP facilities (e.g., office space), systems, and equipment to V-LEEP II during the start-up phase to conserve resources Authorization & Cost Allocation Deloitte’s approach to leverage V-LEEP to start-up V-LEEP II is consistent with the V-LEEP Task Order, which requires in its Statement of Work that “the Contractor must coordinate activities with other USAID/US Government (USG) climate change and energy programs and collaborate with other donors and implementing partners working in clean energy in Vietnam” Over its five-year duration, V-LEEP helped several USAID and USG programs address issues related to startup, registration, and socialization Most recently this included extensive support for the Vietnam Urban Energy Security Program, which is implemented by DAI Deloitte’s suggestion that V-LEEP provide similar support to V-LEEP II was well-received by the COR and the CO in the V-LEEP II kick-off call on August 11, 2020 Following this kick-off discussion, on August 25, 2020 Deloitte submitted an initial budget and expenditure projection for V-LEEP II for the period September 30, 2020 to February 28, 2021 showing the anticipated cost distribution between V-LEEP and V-LEEP II over that period The COR responded via email on August 25, 2020 confirming that this analysis was reasonable and in line with USAID’s expectations On October 27, 2020, Deloitte submitted its official Cost Allocation Methodology via a letter to the CO This methodology divides V-LEEP II’s projected costs into four categories (labor, allowances, travel, and other direct costs) and broadly outlines a specific approach for cost allocation to each On October 9, 2020 Deloitte requested approval from the CO that Mr John Bruce Wells assume his full-time role as COP for V-LEEP II effective November 1, 2020 In a concurrent letter to the CO, Deloitte requested approval that Mr Wells will cease his COP responsibilities on V-LEEP as of November 1, 2020, while remaining available to provide any necessary leadership and transition support for the original V-LEEP project CO granted approval on October 15, 2020 Official Development Assistance (ODA) Approval Securing the official overseas development assistance (ODA) approval is a Vietnamese legal requirement for development programs in Vietnam, prescribed by the Government of Vietnam (GVN) through Decree No 56/2020/ND-CP on the Management and Use of Official Development Assistance (ODA) and Concessional Loans from Foreign Donors (Decree 56) Prior to receiving ODA approval, USAID programs are limited in scope because their government counterparts are reluctant to engage in joint activities, except for socialization and planning activities Effective operations are also hindered because ODA approval is generally required for receiving the necessary approvals for implementing partners to operate in Vietnam (e.g., obtaining corporate seals, tax codes, visas, work permit exemptions, and bank accounts) Despite this restriction, as V-LEEP II proceeds through the ODA approval process, a limited suite of technical activities related to V-LEEP is expected to continue into the first half of 2021 The continuing activities include ongoing support for the two highest-priority activities: 6 1) PDP-8 support to the Electricity and Renewable Energy Authority (EREA); and 2) DPPA support to the Electricity Regulatory Authority of Vietnam (ERAV) Deloitte will also begin activities that focus on private sector support, such as “Provide one-on- one transactional support for advanced clean energy developers” (O1:T2) and “Strengthen the business ecosystem for clean energy entrepreneurs” (O3:T3) Consistent with precedent, these activities are considered “preparatory works” and are well-received by the program counterparts who value the continuity of support GVN recently updated and simplified the ODA approval process with the passing of Decree 56 According to the recent analysis by the USAID Vietnam LEARNS project, the new process should take approximately six to nine months as compared with the previous years-long process Decree 56 removes two steps: the project proposal (old Step 2) and the review and approval by the Vietnamese Prime Minister (old Step 3) As a result, the new process contains only the following four steps (see Figure 1): 1) Engagement with GVN counterparts 2) Project documentation development 3) GVN review 4) Approval Figure 1 Updated Project Approval Process under Decree 56 7 V-LEEP II Approach V-LEEP II has followed these four steps, centered around three core principles: 1) Appoint a local coordinator with specific responsibility to assist in the process 2) Identify a GVN champion within the designated counterpart 3) Consult intensively to secure support for V-LEEP II 1 Appointment of Local Coordinator: On October 7, 2020, V-LEEP II (through V-LEEP in its coordination role) issued a Work Order to V-LEEP subcontractor RCEE-NIRAS to identify a local resource to coordinate and consult with the Ministry of Industry and Trade (MOIT) on the V-LEEP II ODA approval process Ms Minh Cao Thi Tuyet was hired by V-LEEP as the “ODA Coordinator” to assist V-LEEP II in securing ODA approval She is well-suited for this role, having worked closely with senior MOIT leaders from 2015 through 2020 on strategic and operational planning and implementation of major programs Her specific responsibilities as ODA Coordinator include the following: Coordinating the engagement and consultation process with relevant departments within the MOIT, including the Electricity and Renewable Energy Authority (EREA), the Electricity Regulatory Authority of Vietnam (ERAV), the Energy Efficiency and Sustainable Development Department (EESD), the Coal, Oil and Gas Department (COGD), and other Ministries and agencies for development, consultation, and review of the V-LEEP II Project Document • Helping design and lead consultative processes that support the ODA approval process (e.g., small meetings, focus groups, and stakeholder workshops) • Managing the development of relevant V-LEEP reports that will be a part of the V-LEEP II Project Document • Coordinating with the MOIT agency-in-charge and supporting the preparation of the V- LEEP II Project Document and other required materials that reflect the planned activities and modalities of V-LEEP II • Working closely with the MOIT agency-in-charge to secure approval of the V-LEEP II Project Document • Coordinating with MOIT to secure its endorsement (e.g., via a letter to USAID) for contin- uation of high priority/ongoing V-LEEP activities such as support for the Eighth National Power Development Plan (PDP-8) and the Direct Power Purchase Agreement (DPPA) while the process to obtain ODA approval for V-LEEP II is underway 2 GVN Champion: It is the prerogative of the GVN to designate its own focal point who will lead both the ODA approval process and the implementation of V-LEEP II However, the team notes that the successful implementation of V-LEEP can be a strong argument for maintaining the same implementation arrangement as for the original program, namely the designation of the Energy and Renewable Energy Authority (EREA) in MOIT as the focal point Within the first half of the first month of Q2 (i.e., by mid-January 2021), the team’s ODA approval activities will result in EREA’s official appointment as the counterpart to V-LEEP II 8 3 GVN Consultations: During the quarter, V-LEEP II paired formal consultations with other formal and informal meetings with EREA and with other relevant teams within MOIT, such as ERAV, EESD, and COGD These meetings were all successfully completed – in close coordination with USAID Vietnam By the end of the first quarter, the V-LEEP II team had met both informally and formally with each anticipated counterpart (EREA, ERAV, EESD, and OGCD) to present the program, discuss GVN priorities, and agree on initial areas for V-LEEP II to support Engagement of Team Members The team ensured that the Chief of Party – Mr John Bruce Wells – was at post in Hanoi on the first day of the program and secured official USAID approval for his role on October 15, 2020 The team received technical concurrence from USAID’s COR for its designated Home Office leadership and management team on October 28, 2020 The team members and their roles are described below Engagement Director: David Spira Mr Spira will provide support and guidance to the COP on overall technical delivery and implementation He will manage communications and contractual obligations with the USAID CO Project Manager: Whitney Muse Ms Muse will serve as home office management support for the COP on technical, managerial, operational, and financial responsibilities, including: • Setting up and managing the V-LEEP II processes for project management, knowledge management, as well as financial and operations management • Supporting the COP in development of the initial Work Plan and associated startup activ- ities • Supporting the COP to draft statements of work (SOWs), including for subcontractors, and supporting in recruiting and budgeting for the SOWs • Supporting annual work plan development, reviewing quarterly reports, annual reports, communications plan, financial reports, and other contractual deliverables Startup Specialist: Elizabeth Gelb Ms Gelb will support the Project Manager and COP with program startup and work planning She will assist the COP in technical transition from V-LEEP to V-LEEP II and support the drafting of contractual startup deliverables, such as the MEL Plan, Private Sector Engagement Plan, Environmental Monitoring and Mitigation Plan, and Work Plan Additional team members are pending appointment Subcontracting To identify, evaluate, and select local subcontractors for V-LEEP II, Deloitte initiated market research that included: (1) desktop research and analysis to identify local consulting organizations active in Vietnam’s energy sector; (2) requests for referrals from other donor-funded energy programs and donor organizations active in Vietnam (e.g., the Vietnam Urban Energy Security Program, World Bank, and Asian Development Bank); and (3) recommendations from knowledgeable colleagues Deloitte then issued a Request for Qualifications (RFQ) as a Phase I solicitation approach detailing local support needs for V-LEEP II organized around the ten identified/designated tasks in V-LEEP II’s Statement of Work The team is currently evaluating 9 RFQ responses based on the criteria stated in the RFQ: organizational overview, organizational experience & capabilities, demonstrated past performance on projects, and illustrative resumes) This evaluation will also include considerations of whether to hire staff directly in one or more of the task areas as an effective alternative to subcontracting Next steps for this process include: (1) developing a list of qualified firms at the subtask level to be invited for the submission of detailed technical and cost proposals against a Request for Proposal (RFP) document; (2) evaluating and selecting one or more qualified subcontractor(s) to support the implementation of V-LEEP II; and (3) negotiating a budget and proposed subcontract 4.2 TOWARDS APPROVED MEL INDICATORS To enable the program to adapt to changing conditions and adjust mid-course as needed, V- LEEP II will develop a MEL Plan, consistent with ADS 201.3.4.10 This plan will outline how V- LEEP II will collect data and information on program implementation in order to monitor and improve performance and effectiveness as well as to inform planning and management decisions The MEL Plan will include specific benchmarks and indicators to measure progress for all activities that are ongoing and to track progress against the USAID/Vietnam Country Development Cooperation Strategies (CDCS), Clean Energy Transition Project Intermediate Results, Asia EDGE/Indo-Pacific Strategy indicators, and USAID/Vietnam’s overall Performance Monitoring Plan The MEL Plan will also specify how data will be collected and analyzed All data will be disaggregated by gender and geographic location whenever applicable The MEL Plan will include a learning plan to fill gaps in technical knowledge and inform adjustments during implementation of the activity V-LEEP II is currently drafting the MEL Plan, collaborating extensively with the MEL team from the USAID Vietnam LEARNS program As required in the Task Order, the team will submit the MEL Plan in Q2, within 120 calendar days after the effective date of the Task Order 4.3 SUMMARY OF COMPLETED INTERVENTIONS AND PROGRESS TOWARDS RESULTS The V-LEEP II first annual Work Plan and MEL plan are currently under development Once they are approved by USAID, V-LEEP II will begin to summarize its completed interventions and progress towards results during each quarter 4.4 COMMUNICATIONS AND OUTREACH PLAN V-LEEP II will design a Communications and Outreach Plan to describe how the program will utilize appropriate outreach and communications tools and platforms to broadcast its message to the public and the media The Plan will include a Communications Calendar noting key elements and activities warranting public information and outreach activities Whenever possible, V-LEEP II will coordinate and collaborate with other USAID/Vietnam and USG implementing entities working in the energy sector to highlight and host joint efforts aligned with the program’s objectives The Communications and Outreach Plan will comply with USAID’s Branding Implementation Plan and Marking Plan, which describe how programs, including V-LEEP II, must communicate to beneficiaries and stakeholder audiences that the work of this contract is from the American people per the Branding Strategy and USAID Branding Guidelines 10 The Communications and Outreach Plan will be designed by the Field Office Cross-Cutting Specialist with support from the Home Office Communications Specialist As required in the Task Order, the team will submit the Communications and Outreach Plan within 45 days after approval of the first annual Work Plan 4.5 GENDER AND SOCIAL INCLUSION ACTION PLAN V-LEEP II’s first annual Work Plan will include a specific Gender and Social Inclusion Action Plan to outline its inclusion strategy for project implementation This section of the Work Plan will include V-LEEP II’s guiding principles and general approach for ensuring that project activities are conducted in the most inclusive manner possible Led by the International Gender and Social Inclusion Specialist, V-LEEP II will bring international leading best practices to its inclusive implementation As required in the Task Order, the team will submit the Gender and Social Inclusion Plan (embedded in the first annual Work Plan) within 120 calendar days after the effective date of the Task Order 4.6 PRIVATE SECTOR ENGAGEMENT PLAN In the first six months of operation, V-LEEP II will develop a Private Sector Engagement (PSE) Plan outlining potential private sector companies and organizations to engage, their potential roles and contributions to the program, and potential approaches to engage them The PSE Plan will describe the planned scopes of the partnerships with each potential private company and organization The PSE Plan will identify value propositions, provide a methodology for calculating private sector contributions, and estimate the value of leveraged resources to achieve V-LEEP II’s objectives The plan will incorporate a sustainability approach to build capacity and enhance program results drawing on lessons learned from around the world The PSE Plan will describe how V-LEEP II plans to use data to scale-up private sector engagement During V-LEEP II’s first 90 calendar days, activities for this deliverable will include: • Compiling a list of “lessons learned” for effective private sector engagement • Conducting a PSE landscape assessment at the national and regional level across Vi- etnam to identify potential partners • Designing a sustainability approach V-LEEP II will engage a designated Private Sector Engagement Specialist from the Home Office guiding the work with the support of the Startup Specialist As required in the Task Order, the team will submit the Private Sector Engagement Plan within 180 calendar days after the effective date of the Task Order 4.7 LIST OF SERVICES/DELIVERABLES COMPLETED IN THE REPORTING PERIOD The team submitted its Activity Start-Up Plan (ASP) to USAID on October 29, 2020 and is presently awaiting any comments The team submitted its Concept Note and Agenda for a Start-Up Workshop on November 6, 2020 In this submission, V-LEEP II suggested conducting the workshop on November 24, 2020, within the first 60 days as required by the Task Order USAID, however, suggested deferring the 11 schedule to accommodate other priorities As a result, this event is now scheduled to be conducted in the first month of the second quarter (i.e., January 28, 2021) as a “back-to-back” event with the Co-Planning Workshop Deliverable Submission Date Activity Start-up Plan (ASP) October 29, 2020 Start-up Workshop Concept Note and Agenda November 6, 2020 4.8 EXPLANATION OF QUANTIFIABLE OUTPUTS OF THE TASKS The V-LEEP II MEL Plan is currently under development Once the indicators and targets are presented in the MEL Plan and approved by USAID, V-LEEP II will begin to list and explain the quantifiable outputs of each task in this section 4.9 REASONS WHY ESTABLISHED TARGETS WERE NOT MET (IF APPLICABLE) The V-LEEP II MEL plan is currently under development Once the indicators and targets are presented in the MEL plan and approved by USAID, V-LEEP II will begin identifying and explaining any occasions when it fails to meet its established targets There are no issues of problems affecting the schedule or impact of services 4.10 SHORT-TERM TECHNICAL ADVISOR(S) PROGRESS Due to restrictions on entry into Vietnam during the Covid-19 pandemic, V-LEEP II has not yet fielded any short-term technical advisers 4.11 THE USE OF SMALL AND DISADVANTAGED BUSINESS RELATIVE TO THE TARGET IDENTIFIED V-LEEP II has not yet engaged any subcontractors for the program The team remains confident that it will make robust and effective use of small and disadvantaged businesses in future work 4.12 ISSUES AND MITIGATION MEASURES There are no such issues to report 5 UPCOMING PLAN 5.1 MAJOR INTERVENTIONS PLANNED FOR THE NEXT QUARTER Work in the next quarter (Q2) will focus on completion of start-up activities – particularly advancing toward ODA approval and developing an approved Work Plan and MEL Plan These activities require considerable engagement with counterparts and stakeholders, which V-LEEP II will achieve through its mix of formal and informal means See list of planned start-up activities below As V-LEEP II proceeds with this start-up focus, the team will also seek opportunities to launch private sector oriented “one-on-one” support that does not require ODA approval; provided the GVN counterparts are amendable to such support 12 Table 1: Upcoming Start-Up Related Activities and Deliverables Activity Date Start-Up Workshop January 28, 2021 Co-Planning Workshop January 28-29, 2021 Deliverable Date Year 1 Workplan January 28, 2021 Monitoring, Evaluation and Learning Plan January 28, 2021 Environmental Mitigation and Monitoring Plan January 28, 2021 Grants Manual January 28, 2021 Gender and Social Inclusion Action Plan January 28, 2021 Emergency Contact Plan January 28, 2021 5.2 INDICATORS WITH TARGETS FOR THE NEXT QUARTER The V-LEEP II MEL Plan is currently under development Once the indicators and targets are presented in the MEL Plan and approved by USAID, V-LEEP II will begin reporting on its progress towards meeting them and its goals for each quarter 5.3 PROJECTED USAID APPROVALS, WAIVERS OR DEVIATION REQUESTS ANTICIPATED DURING THE NEXT QUARTER V-LEEP II anticipates submitting the following requests to USAID during the next quarter: • Consent(s) to Subcontract for Local and International Subcontractors 6 STATUS OF REQUIRED AUDIT PROCESSES (INCLUDING FOR SUB- AWARDEES) There are no pending audit processes that have been required or initiated under V-LEEP II 7 USAID SUCCESS STORIES V-LEEP II has not yet prepared or submitted any success stories 8 STATUS OF IMPLEMENTING CONDITIONS UNDER IEE ASIA 20-035 V-LEEP II will comply with the requirements under 22 CFR 216 and in particular the threshold determinations and related conditions in Initial Environmental Examination (IEE) Asia 20-035 This IEE determined that a Negative Determination with conditions applies to certain types of activities under V-LEEP II, including: (1) Support bond issuance for transmission company to mobilize capital investment for transmission projects; and (2) Pilot or demonstration for innovative business models, technologies of advanced energy systems Within the first four months of V-LEEP II operations and in conjunction with the Work Plan development process, the Team will draft an Environmental Mitigation and Monitoring Plan 13 (EMMP), which will translate applicable IEE conditions and mitigation measures into specific, implementable, and verifiable actions for V-LEEP II The EMMP will be integrated into and serve as a key component of the V-LEEP II Work Plan It will: (1) identify measures to minimize or avoid adverse effects to human health and the environment; (2) delineate environmental monitoring indicators and reporting frequency; and (3) establish the roles and responsibilities of V-LEEP staff and partners relative to Regulation 216 compliance and implementation of mitigation measures The EMMP will include applicable environmental and social screening templates and checklists, illustrative environmental standard operating procedures, and other guidance for the V-LEEP II team As part of the Year 1 and subsequent annual Work Planning processes, V-LEEP II will evaluate all proposed and ongoing activities against applicable USAID and Vietnamese environmental rules, regulations and requirements The EMMP will serve as a live document that will continually be assessed and updated as needed, in consultation with USAID During V-LEEP II’s first 90 calendar days, activities for this deliverable included: • Reviewing the detailed IEE determinations, conditions, and recommendations • Identifying and mapping applicable Work Plan activities that may pose adverse impacts to the IEE conditions • Identifying and reviewing applicable USAID regulations and guidance as well as GVN environmental impact legislation and related regulatory requirements; integrating these requirements into the EMMP • Developing illustrative mitigation measures for relevant activities and impacts and inte- grating into the EMMP • Developing plans for training of V-LEEP II staff on environmental compliance V-LEEP II’s Environmental Mitigation and Management Senior Advisor will lead the drafting of the EMMP with support from the field-based Cross-Cutting and Start-up team As required in the Task Order, the team will submit the EMMP Plan within 120 calendar days after the effective date of the Task Order 14