FVL/KKA – 21 March 2008 – final
ENERGY ACCESS PROJECT PLAN 2008 – TYPE 2. PPP
This format should be used to plan and elaborate MFS Energy Access Projects in
cooperation with private sector partners (on a ppp basis). Project Plans should be as
short as possible, concrete and to the point. Please update author, date and version
information in the header each time changes are made to the working document.
1. Basic Information (Max 1/4 page)
Project Name: Mobilising Saccos to promote solar systems for poverty
alleviation in Mwanza region
Country: Tanzania, Mwanza region
Partners: Zara Solar, Saccos (to be identified), Zara Solar dealers
in Sengerama, Geita, Bukoba, Kahama, Shinyanga,
Responsible partner for Zara Solar
Contract Party: Zara Solar Ltd
National contact person Zara Solar Ltd, Mr Mohamedrafik Parpia
PO Box 110 Mwanza, Tanzania
Phone: +255 28 250 2910
Cell: +255 754 299 162
Fax: +255 28 254 0561
ETC contact person ETC Energy, Ms Karin Kauw
PO Box 64, 3830AB Leusden, the Netherlands
Phone: +31 33 432 6000
Cell: +31 6 14369879
Fax: +31 33 494 0791
2. Market Background (Max 1/2 page)
Market description of the technology introduced: how does this (e.g cookstove) market function in your
country, and in the target region ? What is market history and what are strong versus weak points in
the market chain? Why is support needed?
The market for small and medium size solar home systems in Mwanza has been
developed from a few players taking small quantities from Nairobi in 1999, into today
one of the biggest market areas in Tanzania, where private sector players can get a
sustainable income. Zara Solar has been the leading private sector player in
developing the market for solar products in Mwanza, developing a sustainable and
growing cash market, and working with a network of over 35 self employed solar
technicians. In 2007, Zara Solar received an Ashden Award in recognition of its
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achievements. Zara Solar is a coordinating member of TASEA (Tanzania Solar
Energy Association) in Mwanza, receives support of E+Co and is member of the
international Redco Alliance. Zara has effectively cooperated with the UNDP project
for the promotion of solar PV which has been running from 2003-2007, which
supported demonstrations, promotion and capacity building.
The evaluation by the Ashden Award jury showed that products supplied by Zara
have already contributed to energy access for poverty alleviation, a.o. in:
- mobile phone charging
- powering hair clippers in hair saloons
To further promote such access to solar systems for poverty alleviation, Zara Solar
sees effective cooperation with Saccos as a priority, combined with further capacity
building of its dealers.
3. Product package (Max 1 page)
This product package has to be completed in full detail before the rest of the proposal can be written:
without a complete and logical product package, rest of the project proposal can not be written.
(a) Technological description of product
The project focuses on the promotion of solar home systems. Zara Solar imports and
supplies components from international brands, notably UniSolar, Free Energy
Europe, ICP, Steca, Sundaya. The project will focus on promoting solar systems in
the range from 14 to 100 Watt peak, on average 40Watt per system.
(b) How do we know the product is a proven solution for the energy demands of our target group
Zara Solar has been supplying these products successfully on a cash basis in the past 5
years. Customer satisfaction is high. After sales service is taken care of effectively via
its network of technicians.
(c) How will product be presented in market (commercial strategy)
Zara will develop cooperation with the Saccos in/around Mwanza to promote solar
systems to their members, both for household use and for income generating use
(phone charging, hair clipping).
In the first instance, Zara will supply the products to the Saccos. In each Sacco at least
one member will be trained as solar technician to be able to install, maintain and
repair the systems. The first systems will be installed in cooperation with Zara Solar
In the prospective next step, Zara solar will support its dealers in the wider region of
Sengerama, Geita, Bukoba, Kahama, Shinyanga, Nansio to develop similar co-
(d) How will the product be distributed in the market, what is the planned stock situation (Logistical
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(e) Will finance be offered with the product, how ?
The Saccos will offer the systems to their members on credit, according to the terms
of the Saccos. Zara Solar will provide the Saccos with the systems on basis of 80%
cash, 20% credit (3 months).
4. Justification (Max ½ page)
(a) What will the project ‘bring’ in terms of benefits for the target group compared to the current
- electric light in homes
- electricity for radio and television
- electricity to charge mobile phones and support rural people to have easy
access to the communication benefits of mobile phones
- electricity to power hair clippers and allow hair saloons to be established in
(b) What are the ‘testing’ questions that will be answered by the project? Please formulate them as real
questions (with the aim to answer them during and after project implementation).
1. What is the optimal organisation of the cooperation between suppliers of solar
systems and the Saccos in the project area?
2. Which tools and capacity building are needed to develop effective cooperation
between suppliers of solar systems and Saccos?
3. How can these best be supported by Zara Solar and by ETC MFS Energy
4. How can the experiences in 2008 be used for further work in 2009 and 2010?
5. Quantitative Objective (Max ¼ page)
What / When Beginning of Target
Number of supported Energy Access Providers 0 10 Saccos
Number of supported technicians 0 1-2 technicians per Sacco
Number of target installations - 20 systems per Sacco –
200 systems in total
Number of people in poor households benefiting for ? 6 people per customer:
household use 1200 people
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Number of people in poor households benefiting for - -
social uses (schools, health centres)
Number of people in poor households benefiting for - 50% of installations will
productive uses be productive: 600 people
% subsidy energy entrepreneurs receive (of their 100% Max 50% (no subsidy on
total investments) equipment price)
Number of male entrepreneurs supported - 50% of Sacco promoters
50% of technicians
Number of female entrepreneurs supported - 50% of Sacco promoters
50% of technicians
expected sustainable market volume after the project (with how many people/units per year will the
market continue after the end of this project)
We assume that the project will lead to a sustainable market volume of 200 systems
per year promoted via Saccos.
how will counting (of technicians, end users, PV systems and/or other electricity applications/
carriers, etc.) take place
Number and type of systems sold to Saccos
Logbook registering complaints on installations and solutions of complaints
Random check of systems installed to Saccos to see if they are still working
Number of technicians trained in Saccos
Number of technicians that remain active in Saccos (checked by phone)
6. Methodology (Max 1 page)
What will the project actually DO? Step-by-step plan for implementation
1. Select Saccos
2. Develop cooperation agreements with Saccos, including at least:
a. Sacco to promote solar to sell at least 20 systems per Sacco on credit in
b. Supplier (Zara Solar) to support awareness and promotion to members
c. Sacco to select 1-2 local technicians for technical training
d. Supplier (Zara Solar) to support technical training of technicians
e. Supplier (Zara Solar) to assure sufficient stock of equipment for timely
delivery to the Sacco.
f. Agreement on prices and payment conditions between Sacco and
Supplier (Zara Solar).
3. Development and printing of promotional material in local language and
4. Preparation of technical training approach, building on TASEA Mwanza
experience, supported by ETC/TTP.
5. Promotion and sales of solar systems
6. Technical training of technicians selected by Saccos
7. Supply and installation of systems, including arrangement of after sales
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8. Short business training of Zara solar dealers on development of solar market
and cooperation with Saccos.
9. Collect reporting information and plan/prepare for next phase
10. Support Zara Solar staff on development of cooperation with Saccos and
coaching of technicians and coaching of dealers.
7. Project Team (Max 1/2 page)
(a) Who will be involved in the project, from which organization or company, in what role (position
and tasks) and for how much time. Include one person (with *) who will be Catrin’s contact person for
contract management, invoices, deliverables etc.
Name Organization Role/position in project
Mr Parpia Zara Solar Manager
Yannic Zara Solar German volunteers:
Kappes and Implement activities until
Hendrick July 2008
[to be Zara Solar Sacco solar promoter:
contracted] Implement activities from
June 2008-Dec 2008
[to be Tasea / Technical training
contracted] Karadea / Veta
Mrs M. Triodos Facet Coaching on microfinance
Duursma and entrepreneurship
Ms Kauw ETC Energy Backstopping project
(b) Describe the lead implementing business organization (or entrepreneur) in terms of ownership
structure, the organisation, management/governance, responsible person of the project
Zara Solar Ltd. Company fully owned and managed by Mr Parpia.
Is the entrepreneur the contract party? If not, why not?
8. Conditions precedent for project implementation (Max ¼ page)
List preconditions that need to be in place before project implementation:
e.g. back ground info on implementing partner (e.g. product supplier, entrepreneur, BDS supplier),
e.g. working arrangement with third parties (e.g. micro finance organisations).
9. Major Risks and Management Measures (Max ¼ page)
Risk Solution / measure
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Saccos do not deliver on their Select other Saccos; Maybe start with
commitment longlist of 15-20 Saccos, of which first 10
will be selected based on criteria of
interest and feasibility.
10. Deliverables (Max ¼ page)
# Description deliverable Deadline Submitted by (=
1 Short progress briefing / visit May/June 2008 Mr Parpia and Ms
2 Short end-report including plan Dec 2008 Mr Parpia and …
for follow up
12. Time Planning (Max 1 page)
Table indicating activities (and deliverables) per month including responsible organization/person.
To be done, when starting.
ETC will carry out a progress review visit, to be scheduled in coordination with
ZARA Solar. Continuation of activities after this review visit are conditional to the
approval of the progress report following this visit.
13. Budget (Max 1 page)
see annnex 2 of the co-operation agreement.
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