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Public Investment in Energy Efficiency (PIE)

Project completed
energy-efficiency
The retrofitting of Kintergarten-5 in Khovd aimag is being heralded as a model for public investment in energy efficiency in remote western Mongolia. © SDC © SDC

Public Investment in Energy Efficiency (PIE) is a SDC and GIZ co-financed pilot project running from January 2014 to December 2016 (Phase-1). PIE will demonstrate how newly decentralized public funds can be utilized for much-needed investments in energy efficiency of public buildings in two remote western provinces of Mongolia. The project will empower the local population to actively participate in planning and budgeting of priority investments, which will result in improved well being and living standards for rural citizens.

Country/region Topic Period Budget
Mongolia
Governance
Employment & economic development
Vocational training
Decentralisation
Rural development
Vocational training
01.08.2013 - 31.12.2017
 CHF  5’070’000
The project in brief
Background
Two decades of political, economic and social reforms have transformed Mongolia from a centrally planned to a free market economy. Making steady improvements in human development, Mongolia has also made considerable progress in strengthening democratic institutions and processes. With the new Budget Law, fiscal decentralisation has become a reality since 2013. Moreover, participatory planning and budgeting is now mandatory at local level. The law establishes a formula driven inter-governmental transfer mechanism, the Local Development Fund (LDF), which provides predictable annual funding for local priority capital investments decided through community participation. Saving wasted heat through energy efficiency is a top priority investment for local communities due to the benefits for (i) the health of rural citizens, particularly children, (ii) the environment and climate, and (iii) the effective management of public finances. PIE will provide a practical learning case for investing in community priorities on the basis of Mongolia’s decentralisation and energy efficiency frameworks. The intervention will result not only in improved energy efficiency at local level, but also in strengthened decentralisation processes which are transferable to any other sector where priority investments aim to improve the lives and opportunities of local communities.
Objectives

Improved living and working conditions for the rural population by reducing heat losses in public buildings, financed by decentralised public funds committed through community participation and decision-making.
Target groups

PIE will target local stakeholders at aimag and soum level, including citizens entitled to be involved in participatory budgeting, businesses involved in energy services, local politicians and local government employees. Project beneficiaries are mainly positioned at the local (aimag and soum) level and consist primarily of citizens (and in particular women and children), and both non-governmental and governmental actors. The main PIE beneficiaries are as follows:

  • Citizens (male and female) of participating aimags and soums
  • Pupils and teachers in kindergartens and schools, and patients and workers in health clinics
  • Local governments
  • Private sector companies involved in energy efficiency
Medium-term outcomes
  1. Compliance with Budget and Procurement Laws relating to capital investments at local level has improved.
  2. Improved energy efficiency of public buildings in Khovd and Zavkhan aimags demonstrated.

 
Results

Results from previous phases:  

A joint SDC, GIZ, Ministry of Energy (MoE), Ministry of Green Development and Environment (MoGDE) team developed a comprehensive design and implementation strategy for the PIE intervention. Moreover, it identified synergies between the PIE intervention and GIZ’s Energy Efficiency in the Grid Connected Energy Supply Project (ENEV), as a result of which a comprehensive project was designed where the PIE outcomes are integrated within the already existing ENEV Project. The theory of change and logframe for PIE – goal, outcomes, outputs and activities – were agreed in a participatory manner with the implementer GIZ, the Cabinet Secretariat, MoE, MoGDE, and the stakeholders from Zavkhan and Khovd aimags. Moreover, the PIE design, including outcomes, outputs, indicators and project activities were finalised based on a detailed gender analysis conducted by GIZ. The inclusive planning process confirms a joint commitment from partners and stakeholders for the project.
Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Other International Organization
Private sector
  • Other OI
  • Foreign private sector North
  • The project will be implemented by GIZ and it is a contribution to an on-going GIZ project.


Budget Current phase Swiss budget CHF    5’070’000 Swiss disbursement to date CHF    4’693’982 Total project since first phase Budget inclusive project partner CHF   12’570’000
Project phases Phase 2 01.12.2017 - 31.12.2021   (Completed)

Phase 1 01.08.2013 - 31.12.2017   (Completed)

  • Sector according to the OECD Developement Assistance Commitiee categorisation GOVERNMENT AND CIVIL SOCIETY
    OTHER MULTISECTOR
    EDUCATION
    Sub-Sector according to the OECD Developement Assistance Commitiee categorisation
    Decentralisation and support to subnational government (incl. accountability)
    Rural development
    Vocational training
    Type of support Official development assistance (ODA)
    Type of collaboration Bilateral cooperation
    Finance type Aid grant
    Aid Type Project and programme contribution
    Tied/untied aid Untied aid
    Project number

    7F08828

Energy Efficiency Project retrofitted the Kindergartens in Khovd and Zavkhan provinces

Retrofitting public buildings using energy-efficient technologies brought a new level of comfort and has a multitude of benefits for rural populations.

Children of the kindergartens enjoyed over 25’C indoor when it was -10’C outside in winter compared to indoor 10-15’C temperatures before retrofitting.

It helped reduce heat losses during winter, improve indoor temperatures and ultimately helped save energy - the most precious resource for our living.

In addition to the introduction of the new energy-efficiency concept, EEP provided opportunities for local governments and communities to utilise the LDF with participation of the local communities.

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Last update 08.05.2020