Carbon Partnership Facility April 2014 Seller Participant Training

1. Carbon Partnership Facility April 2014 Seller Participant Training Overview of Program and CPA level monitoring, Preparation of Monitoring Reports and Verification Case studies and Experience sharing - Egypt Vehicle Scrapping and Recycling Programme of Activity

2. Training on CDM Operations Plans and Sub-ERPA Contracting Presented by Mr. JuhaSeppaelae Mr. Taisei Matsuki Ms. Dina Kordy 01 April 2014

3. Training on CDM Operations Plans and Sub-ERPA Contracting Egypt Vehicle Scrapping and Recycling Program Purpose of PoA is to support the enforcement of Traffic Law #121 (2008) “owners of mass transport vehicles that are greater than or equal to 20 years old are not eligible for new operating licenses or license renewal. “ Mass transport vehicles include: taxis, microbuses and buses.

4. Training on CDM Operations Plans and Sub-ERPA Contracting Programme implementation scheme

5. Training on CDM Operations Plans and Sub-ERPA Contracting Programme implementation scheme More number of stakeholders involved in PoA leads to difficulty in CDM monitoring Roles and responsibilities for each stakeholder in CDM monitoring has to be clearly defined Each stakeholders, such as, Ministry of Interior, Vehicle Manufacturers, Vehicle owners, etc. must be educated well on CDM monitoring

6. Training on CDM Operations Plans and Sub-ERPA Contracting Programme implementation scheme In this PoA, the CME (Ministry of Finance) is the CPA implementer too. Hence, both PoA and CPA level monitoring must be done by MOF. Best practice would be to assign regional level / CPA level CDM officers from within the MOF personnel itself.

7. Training on CDM Operations Plans and Sub-ERPA Contracting CDM registration details • Implemented by Ministry of Finance which is the Coordinating/Managing Entity (CME) • PoA registered on 11 May 2011 • Different CPAs are created for each type of vehicle in each governate • Until now, 3 CPAs have been registered for Greater Cairo region

8. Training on CDM Operations Plans and Sub-ERPA Contracting Programmme activities Inspection of old vehicles for program eligibility Surrendering and Scrapping old vehicles Preparation of surrendered vehicles for temporary on-site storage (liquids are drained and batteries are removed) Distribution of subsidy for surrendered vehicles Purchase of new vehicles from independent vendor representatives Contd….

9. Training on CDM Operations Plans and Sub-ERPA Contracting Programmme activities Inspection of new vehicles Licensing Advertising procedures (optional) Program security and monitoring

10. Training on CDM Operations Plans and Sub-ERPA Contracting Process flow diagram from perspective of the vehicle owner MOF must prepare a list of documents needed from each vehicle replacements and must maintain the complete database.

11. Training on CDM Operations Plans and Sub-ERPA Contracting Monitoring responsibility and frequency MOF must hire a independent consulting firm to carry out the survey

12. Training on CDM Operations Plans and Sub-ERPA Contracting Monitoring responsibility and frequency Proper training shall be provided to Ministry of Interior as well on CDM monitoring and documentation requirements.

13. Training on CDM Operations Plans and Sub-ERPA Contracting Vehicle database management • Driver Information: Name, Mobile number, Telephone number • Financial Incentive Data: Cheque number, Cheque date • Bank Data: Bank letter date, Bank name, Branch • Scrapped Vehicle: Vehicle type, Model year, fuel type, License number, Engine number, Chassis number • New Vehicle: Vehicle type, Fuel type, Engine number, Chassis number, License number, License date, Scrapping certificate number Database shall be created on CPA basis in each region

14. Training on CDM Operations Plans and Sub-ERPA Contracting Example vehicle database

15. Training on CDM Operations Plans and Sub-ERPA Contracting Vehicle database management • Database must be maintained by Ministry of Finance (MOF) - CME • Quality control must be undertaken by CDM-Project Manager (PM) • Project implementation data must compiled in database every month • CDM-Project Manager (PM) must coordinate with vehicle manufacturers, Ministry of Interior for data collection • MOF must hire third party consultant to carry out monitoring surveys and compile the survey results

16. Training on CDM Operations Plans and Sub-ERPA Contracting Key responsibilities in CDM monitoring • Ministry of Finance - Coordinating and Managing entity (CME) • Oversee PoA management and on-site scrapping site management; • Designate CDM Project Manager (CDM-PM) • Maintain registered project database • Arrange baseline survey • Arrange annual vehicle owner survey • Assess implementation outcomes and data quality, diagnoses the errors and mistakes and improves the program implementation • Manages comments and complaints from vehicle owners and drivers (via hotline and periodic survey)

17. Training on CDM Operations Plans and Sub-ERPA Contracting Key responsibilities in CDM monitoring • Ministry of Interior (MoI) • Provide land for scrapping site • Manage initial vehicle inspection • Manage scrapping of surrendered old vehicles • Manage licensing of new vehicles • Provide data necessary for calculating the compliance rate

18. Training on CDM Operations Plans and Sub-ERPA Contracting Key responsibilities in CDM monitoring • Other participating entities • Participating Banks • Participating Auto Dealers • Insurance Company • Participating Advertising Entities Contractual agreement of MOF with all above entities must be properly stored and would be verified by DOE.

19. Training on CDM Operations Plans and Sub-ERPA Contracting Sampling Plan for Project Emissions Monitoring • A. Estimation of fuel efficiency • Manufacturers will test their vehicles as follows: • One vehicle and fuel type per model used to conduct analysis • Test duration must be one week (7 days from Sat to Friday), 10 hours per day. • Seasonality adjustment need to be considered during the test (by switching ON A/C during the testing period) • Initial and final odometer readings will be noted down in a log sheet • Total amount of fuel consumed during the test period is noted • “Test must be conducted for every three years”

20. Training on CDM Operations Plans and Sub-ERPA Contracting Sampling Plan for Project Emissions Monitoring • B. Average annual vehicle-km travelled • Through a vehicle owner survey conducted annually • Survey parameter will include: • Program participation start date • Average weekday distance travelled (km/day) • Average weekend distance travelled (km/day) • Odometer reading • To be carried out by a third party consulting firm Carefully study the sampling population, sample size and methods before the survey.

21. Training on CDM Operations Plans and Sub-ERPA Contracting Egypt Vehicle Scrapping and Recycling Program THANK YOU