RESULTS BASED FINANCE MANUAL

(PART C OF EASP PROJECT OPERATIONS MANUAL)

ELECTRICITY ACCESS SCALE-UP PROJECT (EASP)

(UECCC SCOPE - EASP Components 2, 3 and 4)

July 2023

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Acronyms

API Application Program Interface

CRRF Comprehensive Refugee Response Framework
CCS Clean Cooking Solutions
DDP District Development Plan
EASP Electricity Access and Scale-Up Project
ECP Electricity Connection Policy
ERA Electricity Regulatory Authority
ESCO Energy Supply Company (of energy goods and services)
FI Financial Institution
GoU Government of Uganda
IFC International Finance Corporation
IVA Independent Verification Agents
MEMD Ministry of Energy and Mineral Development
MFI Microfinance Institution
MIS Management Information System
MoES Ministry of Education and Sports
MoH Ministry of Health
MoWE Ministry of Water and Environment
NDP National Development Plan
PUE Productive Use of Energy
OGC Off-grid Solar Energy Company
OGS Off-Grid Solar Product
OPM Office of the Prime Minister
PAD Project Appraisal Document of the World Bank
PAYGO Pay-As-You-Go
PCU Project Coordination Unit
PIU Project Implementation Unit
PUE Productive Use of Energy
POM Project Operations Manual
RBF Results Based Financing
RHD Refugee and Host Community Districts
SACCO Savings and Credit Cooperative Society
UECCC Uganda Energy Credit Capitalisation Company
UNHCR United Nations High Commissioner for Refugees
WHR Window for Host Communities and Refugees

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EASP PART C RBF MANUAL: TABLE OF CONTENTS
ACRONYMS .......................................................................................................... 2
1 INTRODUCTION TO RBF MANUAL ..................................................................... 5
2 SUMMARY OF RBF PROCESSES ........................................................................ 6
3 GUIDING PRINCIPLES ..................................................................................... 7
4 RBF STAKEHOLDER ROLES AND RESPONSIBILITIES ........................................... 8
4.4 UECCC ............................................................................................................................. 8
4.5 MEMD ............................................................................................................................ 10
4.6 MoFPED ......................................................................................................................... 10
4.7 World Bank ................................................................................................................... 10
4.8 OPM, UNHCR and Partners .......................................................................................... 10
4.9 Energy Service Companies (ESCOs) ............................................................................ 10
4.10 Suspension of ESCOs ................................................................................................... 12
4.11 Customers .................................................................................................................... 13
5 RBF PROCEDURES FOR ESCOS ....................................................................... 14
5.1 ESCO Application to UECCC EASP RBF program......................................................... 14
5.2 Signing RBF Grant Agreements.................................................................................... 15
5.3 Confirmation of sales ................................................................................................... 16
5.4 Verification ................................................................................................................... 16
6 ENVIRONMENTAL AND SOCIAL SAFEGUARDS .................................................. 25
7 REFUGEE AND HOSTING DISTRICTS (RHDS) .................................................... 25
8 MONITORING & EVALUATION ........................................................................ 27
9 GRIEVANCE REDRESS MECHANISM ................................................................. 28
10 AUDIT ......................................................................................................... 28
SECTION 1 ......................................................................................................... 29
OFF-GRID SOLAR PRODUCTS (OGS) ...................................................................... 29
RBF 29
SECTION 2 ......................................................................................................... 41
CLEAN COOKING SOLUTIONS (CCS) ...................................................................... 41
RBF 41
SECTION 3 ......................................................................................................... 57

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PRODUCTIVE USE OF ENERGY (PUE) ..................................................................... 57
RBF 57
11 ANNEXES ..................................................................................................... 73
11.4 Annex 1: EASP RBF Application Form .......................................................................... 73
11.5 Annex 2: Template of formal letter requesting Financing under EASP RBF .............. 78
11.6 Annex 3: Template for RBF Grant Agreement between UECCC and ESCO ................ 79
11.7 Annex 4: GOGLA CUSTOMER PROTECTION PRINCIPLES ............................................ 90
11.8 Annex 5: GUIDANCE TO ESCOs TO INCREASE SALES IN RHDs .................................... 91
11.9 Annex 6: EASP RBF Quarterly Reporting Template ..................................................... 94
11.10 Annex 7: Process for updating Claims Form, Results Form, ESCO File ...................... 97

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1 INTRODUCTION TO RBF MANUAL

This section of the EASP POM provides the guidelines for Results Based Finance (RBF) grants
(performance-based grants), including defining the objectives, processes, eligibility criteria,
incentive structures, selection process, disbursements, verification, and monitoring and
evaluation.

The RBF manual constitutes PART C of the EASP Project Operations Manual for UECCC (EASP
POM for UECCC) as shown in the table below.
Table 1: Structure of EASP POM for UECCC
EASP POM PARTS Contents
PART A – Introduction & Annexes Description of EASP, roles of stakeholders, and so
on
PART B – Credit Support Facility Manual Line of Credit (LoC) to participating financial
institutions (PFIs), direct lending, guarantees
PART C – RBF Manual Results-based financings (RBFs) for solar home
systems (SHS), clean cooking solutions (CCS),
and productive use equipment (PUE)
PART D – Public Institutions Manual Solar Electrification and CCS for Public
Institutions
PART E – Technical Assistance Manual Scope and implementation of technical
assistance program

It is intended as a standalone manual for the operation of the program for Results Based
Financing for 3 separate RBF schemes within the overall RBF program:
1. Off-Grid Solar Products (OGS)
2. Clean Cooking Solutions (CCS)
3. Productive Use of Energy (PUE) technologies.

The first part of the manual details the general conditions which apply to all of the three (3)
RBF schemes, followed by three (3) separate sections that outline specific conditions and
processes for each of the three (3) RBF schemes. An Energy Service Company (ESCO) must
make separate applications to each of the RBF schemes, using a separate application form for
each one.

A key feature of the RBF is that payment of the grants will be made upon delivery of a result.
Participating ESCOs are therefore expected to take the full risk until delivery of the contracted
results. The targeted beneficiaries of the grants are end-users and enterprises. RBF
instruments are generally characterized by the following principles:

• Disbursement of funds is contingent on the delivery of pre-determined results

• Verification acts as the trigger for disbursement
• All eligible service providers can participate

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This RBF is enhanced by additional instruments under EASP which provides support to ESCOs
and Financial institutions through access to credit and technical assistance, each of which has
a separate application process. ESCOs may participate in more than one of the RBF programs
within EASP using a separate application form. ESCOs may also borrow under the CSF and
may apply for Technical Assistance grants under EASP while participating in any of the RBF
programs.

2 SUMMARY OF RBF PROCESSES

The following steps indicate the processes for participation in the EASP RBF program:

Figure 1: Summary of RBF Processes

STEP
•ESCOs are invited to to participate in the EASP RBF program through a public call for Requests
1 for Proposals (RFPs)

STEP
•ESCOs apply to participate through completing and submitting an application form to UECCC
2 with all necessary documentation

•UECCC conducts appraisals of the applications and selects qualifying ESCOs that satisfy the
STEP
3 particiption criteria and gets no objection from the World Bank for each recommended ESCO

•UECCC issues a selection notification to ESCOs with conditions precedent to signing an RBF
STEP
4 Grant Agreement if any

STEP •UECCC and ESCO sign RBF Grant Agreement

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STEP •ESCO makes sales of eligible products to customers

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STEP
•ESCO submits monthly sales reports, quarterly performance reports and Claims forms to
7 UECCC

STEP •IVA carries out verification of sales claims

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STEP •UECCC reviews verification report and submits claims to WB for No Objection
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STEP •UECCC makes payment to ESCO for verified claims

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•UECCC and stakeholders undertake quarterly review of the RBF and amend as necessary
STEP
11 to improve outcomes

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3 GUIDING PRINCIPLES

The RBF design and implementation follows a set of principles guiding its actions:

Cost sharing: The RBF is designed to assist ESCOs to address the affordability gap, making
energy products and service more affordable and accessible for households and businesses.
It will also enable ESCOs to expand into new markets, including remote areas and widen their
product range. The partial consumer price subsidy and ESCO incentives are intended to
accelerate sustainable commercial market development and increased energy access,
encouraging increased investment in the sector. The customer’s contribution is fundamental
to creating ownership, empowering beneficiaries, promoting sustainability, and motivating
ESCOs to provide after-sales service.

Access and Vulnerability: The RBF is also designed to take account of the challenges that
ESCOs may have in establishing/expanding businesses in remote, underserved areas.
Additional incentives will be provided to ESCOs to target these areas, including but not
restricted to RHDs. The same consumer price subsidy will be applied nationally for all sales.
It is important to establish a solid business base before providing a higher level of subsidies
or incentives targeting the poorest or most vulnerable. Following learnings from the initial
phase, and through dialogue with key stakeholders, additional consumer subsidies may be
applied to target the poorest and/or remotest sections of the population using a fair and
transparent system.

Data Protection
All stakeholders shall adhere to the guidelines and principles of the Data Protection and
Privacy Regulations of 2021 in the collection, storage, usage, processing, and disclosure of
personal data for individuals, private and public sectors. Data protection is regulated by the
Government of Uganda through the Personal Data Protection Office (PDPO). Stakeholders
shall take account of any additional measures required to protect vulnerable communities or
groups, including refugees. Information specific to individuals/organisations will be treated
with confidentiality but the program may publish aggregated data on program performance.

Program efficiency: ESCOs will have some costs associated with the RBF documentation and
claims. Delays in disbursement can increase costs, which the ESCOs may ultimately transfer
to the customers. Therefore, the RBF will aim to disburse claim payments in the shortest
possible time. The payments will be delivered to eligible ESCOs within a period of maximum
40 working days from the date of claim received by UECCC. The working days do not consider
the time taken by ESCOs to submit additional information (such as sales contract) that may
be required during the verification process. UECCC will develop a digital information
management platform which will streamline and speed up this process.

Transparency: An independent Verification Agent (IVA) will be engaged by UECCC, and the
POM is available on the UECCC website. The list of selected ESCOs will also be provided on
the UECCC website and the RBF implementation progress report will also be publicly
available.

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Quality control: All eligible technologies need to meet UNBS standards, and/or international
standards for the technology (project specific standards in the absence of a national
standard). Another form of quality control is the verification and follow-up on the quality of
installed technologies.

GESI: The RBF program will take into consideration Gender and Social Inclusion (GESI). It is
expected that the participating ESCOs will focus on GESI throughout the implementation of
the RBF program. An impact study will be conducted, focusing on the impact on GESI.

The scheme will take into consideration what targeted incentives are needed for wider GESI.
Additionally, the participating ESCOs will include sensitive design/consultations for women,
as part of the public awareness campaign and stakeholder consultations activities.

4 RBF STAKEHOLDER ROLES AND RESPONSIBILITIES

The EASP RBF program is a form of collaboration between different institutions within GoU
and the private sector. The following is a summary of the roles and responsibilities of the
stakeholders engaged in the RBF, further details on documentation are provided in later
sections and the annexes:

4.4 UECCC

• Issues a public call for Requests for Proposal (RFP) in the RBF program. Following this
call, ESCOs will be able to apply at any time for the duration of the RBF, unless
otherwise advised. There may be further public calls for proposals during
implementation if necessary.
• Receives and appraises ESCO’s applications for enrollment. There will be a separate
technical product evaluation and a business evaluation of the ESCO. Technical
evaluations will be conducted prior to ESCO evaluations, and should a product fail
technical evaluation, the business evaluation will not be carried out.
• Generates appraisal report for applying ESCOs. Appraisal reports for ESCOs
recommended for Grant Agreements will be presented to the World Bank for no
objection prior to signing Grant Agreement. This will include the reports of the
product technical evaluation and the business evaluation of each recommended
ESCO.
• Issues notification letters to approved ESCOs, and to non-approved ESCOs, explaining
the issues that need to be addressed to participate in the program.
• Grant allocation to ESCOs will be based on annual targets in proposals submitted as
part of the RBF applications.
• Signs RBF Grant Agreements with ESCOs that are accepted in the RBF program with
the addendum for additional RBF funding to the agreement with ESCOs as and when
necessary.
• Procures a capable IVA.

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• Reviews and approves verification reports and disbursement requests from the IVA.
• Makes disbursements to ESCOs from UECCC’s designated bank account.
• Communicates to the ESCOs immediately after the disbursement (initially through an
email, subsequently through the RBF’s digital platform). The communication will
include the amount disbursed, date of disbursement made, and the claim number;
The proof of disbursement will be attached whenever possible.
• In consultation with World Bank, determines potential suspension/removal of the
ESCO from the program.
• Manages the monthly reporting from ESCOs and ensures consistency of the
information provided for the purposes of the verification process through interaction
with the ESCOs.
• Is responsible for the verification process and manages an Independent Verification
Agency (IVA).
• In consultation with the World Bank and project stakeholders, review the subsidy and
incentive levels, as required but in any case, not more than twice a year, to ensure
target markets are reached effectively, to reflect market changes (such as rate of
inflation, foreign currency fluctuation, overall cost of living, etc.) and to ensure
sustainability of the program.
• Works with MEMD for matters related to any technical issues including but not limited
to technical standards, policy direction, market assessments.
• Conducts impact studies and shares the findings with the World Bank, government
agencies and other relevant stakeholders.
• Provides technical assistance for activities related to capacity building, mass-user
awareness, training etc.
• The GRM committee at UECCC will handle complaints from ESCOs, end-beneficiaries,
and other relevant stakeholders.
• Participates in EASP Steering Committee (led by MEMD) meetings and shares the
progress, issues, and challenges.
• Prepares monthly internal RBF progress report.
• Submit quarterly Reports to MEMD PCU, including summary of sales (per product and
district) grant agreements, claims, verification reports and payments.
• Manage the RBF grant facilities
• Manage project funds in USD and UGX
• Ensure that project funds are used for eligible purposes
• Coordinate with the MEMD PCU and PIU.
• Coordinate with MoFPED on funding, FX management and budget
• Update the POM as needed, with the revised POM submitted to the World Bank for
‘no objection’
• Require and monitor that ESCOs have and adhere to implement an Environmental and
Social Management Strategy (ESMS) and good governance principles to comply with
the World Bank safeguards policies.

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 • Coordinate with OPM, UNHCR, local government and other stakeholders to support
activities in RHDs

4.5 MEMD

• Overall coordination of the EASP Project through the Project Coordination Unit (PCU).
• Coordinate with UECCC, donors, development partners and electricity providers in
planning on-grid and off-grid electrification activities, including public awareness
campaigns, which may affect types of products sold in selected locations
• Ensures an enabling environment for ESCOs and off-grid market developments.
• Provides overall monitoring of off-grid market developments and national grid
development.
• Provides overall guidance and technical backup to UECCC.
• Assist in coordinating EASP activities to align with NDP, SEDP, SERP and other national
strategies and plans, in addition to multi-sectoral programs.

4.6 MoFPED

• Channel EASP project drawdowns from the World Bank to UECCC

4.7 World Bank

• Review project performance reports from UECCC

• Consider “no objection” requests for changes to the POM
• Consider “no objection” requests for ESCOs participation (based on appraisal reports)
or suspension/removal from the RBF
• Consider “no objection” requests to verification reports submitted by the UECCC for
each claim.
• Conduct periodic supervision missions to review project performance
• Monitor compliance with the POM and the World Bank’s fiduciary and operational
policies and procedures

4.8 OPM, UNHCR and Partners

• Support project stakeholders and activities targeting refugees and host communities
• Coordinate with government ministries, including at local levels to align with other
humanitarian and development programs
• Support the promotion of market-based activities and actively discourage free
distribution of energy products and services in RHDs (except emergency assistance)
• Provide easy access to refugee settlements and reduce any administrative barriers

4.9 Energy Service Companies (ESCOs)

• Submit required RFPs documents for RBF grants

• Ensure all EASP funds are used for eligible purposes
• Provide quality, eligible products fit for purpose
• Identify eligible households and supply eligible products

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• Provide after sales service and maintenance
• Provide adequate data for verification in timely manner
• Implement satisfactory ESMS and good governance principles
• Provide reports on the sales and customer portfolio as in the report template in annex.

The ESCOs are expected to fulfil the following responsibilities:

a) The ESCOs are required to provide basic training and awareness to beneficiary
households and enterprises on:
• proper handling of the system;
• conditions for warranty/guarantee;
• basic features of the system;
• product benefits;
• regular maintenance of the system and component parts;
• contact information for after-sales-service;
• Amount of customer contribution and payments terms, including explanation
of the government-funded price subsidy ;
• Instructions to consumers on product disposal/recycling at end of life.
b) ESCOs shall provide the information in brochure/user manual for each customer.
This shall be designed to be understood without the need for specific language or
reading skills.
c) At the time of pre-registration and installation, the agent of the ESCO should
clearly communicate that the following acts from the household or enterprise are
strictly prohibited:
• Reselling the acquired subsidized product to another customer;
• Using national ID of another household to benefit from the subsidy;
• Giving wrong location to benefit from a subsidized product;
d) The ESCO is required to clearly communicate to the household during
marketing/pre-registration and installation about the above prohibited activities
and the possible consequences. The ESCOs are required to include the above
misconduct in the Sales receipt as terms and conditions of sale to minimize the
prohibited activities from the customers and the ESCO agents.
e) The subsidy will not be disbursed if the above cases are identified during
verification. These households will be considered failed and permanently
ineligible for the subsidy.
f) The ESCOs will have right to repossess the product or modify the Sales receipt with
the customer’s consent to allow them as a normal sale, outside the RBF.
g) The ESCOS are required to inform the households that they will not be eligible for
another subsidized product if the ESCOs repossess the system under the above
prohibited activities. The ESCOS are to include this as a condition in the Sales
receipt.
h) Resolution of beneficiary complaints
All participating ESCOs are required to have a functioning customer service
number system in place, either directly or through an agent, that has the capacity
to log complaints and requests for service. The ESCO should provide adequate

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 customer care/after-sales-service within 2 weeks after the complaint is registered.
Customer to be informed about complaints mechanism and customer support
phone numbers at time of sale.
i) ESCO reporting requirements
ESCOs are required to provide a quarterly sales report by email to UECCC not later
than the 7th day of the following calendar month, which will include the following
information:
• Total Sales for the previous month (number of units, total sales revenue, total
subsidy and incentives, cash sales, PAYGO sales, default rates)
• Total sales per product type
• Total sales per district
• Key challenges encountered and proposed solutions
The ESCO shall use the reporting template provided in Annex 6.
j) ESCOs will also need to be able to show the following documentation at any time
during the contract period, if requested by UECCC:
• Sales records, copies of customers sales receipts, default records and import
records;
• Warranty records/certification for products, including name, address and
phone number of dealers, importers and / or manufacturers providing that
warranty.

4.10 Suspension of ESCOs

Whenever an ESCO deviates from the eligibility criteria and the stipulated roles and
responsibilities, a credible commitment in the form of a time-bound action plan needs to be
prepared by ESCO and approved by UECCC. UECCC reserves the right to suspend or remove
an ESCO’s participation in the RBF if the eligibility criteria remain unfulfilled and for poor
performance against the agreed action plan.

If an ESCO is suspended from the RBF, then they will not be eligible for RBF subsidies or
incentives on any sales made during their suspension period. They will also be ineligible for
payments of the 2nd disbursement during their suspension period or if removed from
participation in the RBF.

The ESCOs may also be suspended from the program for poor performance, specifically if
>10% of the total sample size fail in two consecutive claims.
The suspension will follow the following procedure:

• If the ESCO is found to have the poor performance and/or failure rate is >10% of the
total sample size in two consecutive claims, UECCC will conduct further investigation
and prepare a report. This will be discussed with the ESCO and further field
investigation will be conducted if necessary.

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 • UECCC shares the report with the World Bank for No-Objection with recommendation
to suspend or not to suspend the ESCO, including the reason and proposed duration
of the suspension. The recommendation includes the reason and duration for
suspension or no suspension.
• If suspended, the duration of the suspension depends on the severity of the issues
and the level of the fraud observed, as assessed by the UECCC.
• UECCC will issue a notice of suspension to the ESCO.

The ESCOs are allowed to submit the claim to UECCC for those products sold prior to the
effective date and time of the suspension. The IVA will perform the verification of these
claims and recommend disbursement (minus failed customers) to UECCC.

Should ESCO fail to provide the information required in Claim Form or consistently misreport
the information, this may ultimately result in suspension from the program.

The UECCC reserves right to cancel the Grant Agreement with an ESCO that has been
suspended twice or more under the RBF program, or if the issues assessed by UECCC are
severe.

4.11 Customers

4.11.1 Warranty services by ESCOs

The customers who face technical issues with the product, will have the right to demand the
ESCOs for warranty provision, as per the ESCO’s warranty coverage. The ESCO has to provide
such services for free, within the specified product warranty period. The ESCOs may charge a
fee for any after sale service that the customer may require. The fee shall be agreed upon
between customer and ESCO. Customers that are found to have technical issues during the
verification will not be disbursed until the technical issues have been satisfactorily resolved.

4.11.2 Registering a complaint

If the beneficiary household does not receive a response from the ESCO in the case of a
malfunction within 2 weeks during the warranty period, then the customer must contact
UECCC and register a complaint. UECCC will register the complaint and record each complaint
in a logbook and will share the complaint with the GRM committee and with the ESCO. Both
the ESCO and UECCC should have dedicated staff responsible for registering complaints and
service requests. For registered complaints outside the warranty period, ESCOs will be
expected to provide after sale services at a fee.

The ESCOs are required to include the contact number of UECCC office in the sales receipt to
their customers with the instruction to call UECCC if the ESCO does not address the
customer’s response within 2 weeks.

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UECCC will register the complaint in the Customer Complaint Logbook. The logbook must
include the information such as date of complaint received, name and national ID of the
customer, phone number, name of the ESCO, location, the date customer complained to the
ESCO, and brief description of the complaint.

UECCC will not register the complaint if the customer has not first reported such complaint
to the ESCO.

5 RBF Procedures for ESCOs

5.1 ESCO Application to UECCC EASP RBF program

The aim of the application process is to confirm that the applicant has all the capabilities
needed to deliver quality equipment, service and after-sales service to customers and that it
has the internal integrity and rigor to cope with the reporting and audit requirements
attached to the grant. The application will focus on its operational setup, product portfolio,
pricing plans, and other information relevant to successful program participation. UECCC will
select eligible ESCOs through an appraisal process based on the information submitted in the
application.

The following files and records need to be submitted by the ESCO to UECCC (by post or email)
as part of the application process (see also Annexes for further details):

1. RBF Application Form, to be downloaded from the UECCC website;

2. A formal letter requesting to participate in the UECCC EASP RBF program;
3. Certificate of company registration from Uganda Registration Services Bureau (URSB);
4. Audit report and tax clearance certificate of past two financial years. For ESCOs less
than two years in operation, audit report and tax clearance certificate of the past one
financial year;
5. Curriculum vitae of the members of the Board of Directors and the management
team;
6. Business plan of the ESCO;
7. ESCOs must submit their processes for storage, reuse, repair and recycling of product
components, including batteries, with their application;
8. Evidence of Retail pricing and Factory production costs;
9. Product Pricing Plan for each product, detailing the current retail sales price (not
including any subsidy) and proposed product pricing, including the subsidies applied
under the EASP RBF;
10. If available, organizational chart for the IT and data processing function. Summary list
for IT hardware, database and application software and communication equipment;
11. A list showing number of agents and staff of the ESCOs available in each district, by
gender disaggregation;

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 12. Description of each product, detailing compliance with eligibility criteria, distribution
and customer support process. This technical product information, specifications,
certificates etc. shall be submitted in a separate file or envelope for technical
evaluation.

5.2 Signing RBF Grant Agreements

Successful ESCOs will receive a notification letter from UECCC and will be invited to sign RBF
Grant Agreement with UECCC. The template for the agreement is provided in the Annexes.
ESCOs signing the agreements are required to agree to the following requirements:

• Allow qualified UECCC representatives, on a need-to-know basis, access to privileged

and confidential information necessary to appraise whether the ESCO meets and/or
continues to meet the agreed qualification criteria1;
• Agree to devote adequate resources to the Project, to establish and maintain an
adequately staffed sales and after sale services team, management group, or
equivalent, and to join any available Project-related training;
• Agree to provide customer payment data and installation information required to
verify eligibility of subsidy and incentive claims;
• Agree to potentially integrate PAYGO software with the digital platforms managed by
UECCC;
• Agree that UECCC and the World Bank may conduct independent audits of the ESCOs
accounts related to the systems installed that have been supported through the RBF.
• ESCOs are entitled to receive financing from other sources, including carbon credits
while also participating in the EASP RBF. However, such funding may not be used to
alter the product sales prices or consumer subsidies which must remain as agreed in
the RBF Grant Agreement. The ESCOs shall maintain all their legal rights to any
Emission Reductions generated by their RBF activities under EASP.
• The ESCO cannot use funding from another RBF scheme for sales of the same product.
ESCOs may be suspended from the program if claiming from different schemes for
sales of the same product. The IVA will cross-check product ID numbers against those
in other known programs.

Those ESCOs working with SACCOs and Microfinance Institutions (MFIs) shall record sales to
the customer only after the SACCO/MFI approves the loan to the customer and consent of
the customer. The ESCO should sign a Service Level Agreement (SLA) with SACCOs and MFIs.

1 See Also General Conditions for each RBF

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5.3 Confirmation of sales

ESCOs can confirm sales when: 1) a contract/receipt for the sale has been issued to the
customer, and 2) the purchased product has been installed at the customer’s home/premises
(where applicable).

5.4 Verification

The verification of sales and claims submitted by ESCOs will be conducted by an Independent
Verification Agent (IVA). This IVA will be procured by UECCC and will be experienced in
carrying out verification processes for RBF schemes.

ESCOs must submit each Claim form, with supporting documents, to UECCC by email or via
an API. Desk, Phone and field verification will take place for all claims. UECCC and the IVA will
use an automated Management Information System (MIS) to record, monitor and assess
claims and other program performance measures.

The IVA will complete the verification of each claim within 25 working days from the date a
claim received by UECCC based on the following principles. The timeline does not include the
time spent by the ESCO in revising and resubmitting the information.

5.4.1 Claim submissions

To bundle administrative work for both the ESCO and the UECCC, the claim submission
schedule is as follows:

• Each ESCO can submit claims at any time subject to minimum number of sales per
claim (these are outlined in more detail in each of the 3 separate RBF sections) A
maximum of one sales claim can be made each calendar month.
• Claims must be made within 3 months of the date of sale, even if the sales volume is
lower than the minimum.
• ESCOs must submit a signed hardcopy of the Claim Form Summary Table, to UECCC,
in addition to submitting a soft copy of the signed form and full claim form in excel
format by email or via an API.

The Claim Form (available in Excel format on UECCC website) contains ESCO product
information. In addition, the Claim Form specifies the claim period, based on the sales
confirmation date. Since each confirmed sale has a specific sale date, UECCC will
automatically know for which sales the claim is being submitted.

The ESCO shall provide the following information in the Claim Form:
• Customer Name
• Customer & Spouse National ID numbers
• Customer Phone number
• Customer Address (District, Sub-County, Parish, Village)

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 • PAYGO customer or Cash customer
• Customer ID number assigned by company
• Product Category
• Product Brand and Model
• Product Serial number
• Date of confirmed sale/installation
• Total Sales Price (before deduction of subsidy)
• Payment details (transaction dates, amounts, type of payment (Cash/MM/Bank),
Payment/account number)
• Dates for period being claimed
• List of customers for products which were repossessed
• List of customers with technical issues

The claim form will automatically calculate the subsidies and incentive amounts for each sale
and provide totals, in addition to numbers of sales per product category and per region.

For each sale claimed, the ESCO must submit the following documentation with the claim:
• A fully completed ESCO -Customer Contract/Sales Receipt showing the product serial
numbers and sale conditions signed by both parties.
• A copy of the national ID for each customer and their spouse (where applicable).
• A copy of payment details for each payment made (either PAYGO or Cash)

In cases where the ESCO is no longer claiming for sales made in a specific region under the
RBF, but will be claiming the 2nd disbursement of the ESCO incentive, the ESCO must provide
evidence with their claim that the ESCO continues to make sales of similar products and
provides after sales service in the specified region. Evidence can include sales receipts
complete with customer address and phone, product details, list and phones of ESCO sales
agents or sales outlets.

5.4.2 Desk Verification

The IVA will conduct a desk-based verification of 100% of the sales in claims submitted by the
ESCO. The verification will be conducted by comparing the information provided on the Claim
Form with the information in the MIS. This will include validation of the sales receipt/contract
and National IDs.
These will be considered as “invalid” if:
• the copy of the National ID’s / Contract or Sales receipt is not available;
• the proof of transaction such as bank statement, mobile money statement, or copy of
cash receipt is not available;
• the Contract / Sales receipt is not signed by both the ESCO and customer;
• The information on the Contract / Sales receipt such as customer names/ID, price of
the system, product name, and customer location are different from the information
confirmed by the IVA;

17
 • Information on the National IDs does not match the information provided on the claim
form.

The results of this data check are stored in the Results Form. Based on the data in the Results
Form, IVA will determine the validity of the claim. In summary, IVA will check the following:

• The correct consumer subsidy amount and ESCO incentive amounts are claimed for
each customer;
• The subsidy was given (in the previous claim) to the repossessed customers. Those
customers in the repossession list who have previously received the subsidy in the
previous claim/s will be deducted from the current claim.

IVA will enter the information in the Results form in the ESCO File. The ESCO File is used to
keep track of the status of each claim as well as other details for each ESCO. Once IVA has
completed its analysis, it will notify ESCOs of the determined claim size and any discrepancies
found. IVA will return to the ESCO the list of those customers whose information provided on
the Claim Form is mismatched with the UECCC RBF database. IVA will reject the entire claim
if >10% mismatch cases are found during desk verification.

For systems where the discrepancies are less than or equal to 10%, ESCOs will have five (5)
working days to submit the missing sales information to IVA. The ESCOs can resubmit the
corrected information during the next claim if they are unable to correct the information
within five (5) working days.

Customers who do not pass the Desk Verification will be recorded in the “Failed Customer
List” in the results form.

5.4.3 Sample Sizes for Phone and Field verification (OGS & CCS only)

The IVA will generate a sample size for phone and field verification which will be calculated
automatically for each claim by the MIS. The MIS will generate a random sample of customers
of 5% of the claim size, all of which will go for phone verification. The MIS will also generate
a separate random sample of customers of 5% of the claim size, all of which will go for field
verification.

5.4.4 Phone verification (OGS & CCS only)

Phone verification will be carried out by the IVA on the random sample of customers provided
by the MIS, as detailed above. The verification will be conducted by comparing the
information provided on the monthly sales reports and Claim Form with information verified
through phone calls. No phone verification will be carried out for claims of PUE sales.

18
The IVA will call the sample customers provided by the MIS and will ask them a series of
questions, as per the Phone Verification Survey Questionnaire, to determine whether they
have bought and received a subsidized product.

Some customers may not be immediately reachable due to different reasons (incl. e.g. poor
network, unavailability, low battery, phone being turned off, etc.). Hence, the IVA should try
to reach the customer four times taking care to call at different times during the day
(morning, lunch time, afternoon, evening) and on different days. If a customer has not been
reached after 4 attempts. IVA will make additional 2 attempts using the alternative phone
number of the customer provided by ESCO. The customer is marked as “unreached” if they
are not reachable in total 6 attempts.

Once a customer is reached, the IVA will go through the questions in the Phone Verification
Survey. All questions need to be asked and answers recorded accurately in the survey tool
and Results Form. Particular attention should be paid to the “company”, “date of sale”,
“product type”, “location”, “name of the customer”, “payment mode i.e. cash or PAYGO”,
and “the technical condition of the system”. It should be noted that customers sometimes
don’t remember the exact date. Hence, a difference of one month between the date of sale
indicated by the customer and the ESCO is permissible.

In case the customer is found at a new location, the subsidy/incentive payments should be
based on the location of the time of sale. In case a customer cannot be located through phone
and field verification, the ESCOs will need to provide evidence that the sale was made.

Once all customers have been reached or called maximum six times, the IVA will consolidate
and analyze the results and complete the corresponding fields in the Results Form.

The outcome of the phone verification for each customer will be determined based on the
following criteria:

Phone verification passed customers:

• Customers called are reached, confirmed that they have bought the product and the
price, the product is working properly, and the customer has signed the sales receipt
and is aware of their contribution (“Pass”).

Next step: All the “pass customers” will be recorded in the “Passed Customer List”.

Phone verification failed customers:

19
 • The customer will be marked as “fail” if one of the following answers are confirmed:
o The customer confirms that the product has been repossessed
o Customer reports that they have not bought the product or has not signed a
Sales receipt/contract
o Customer confirms that they have been charged a different price to that
reported by the ESCO
o Customer confirms that they have bought a different product to that reported
by the ESCO

Next step: All customers that are in the Failed Customer List will be given by IVA to the ESCO
with the reason of each failed customer. The claim amount of the failed customers will be
deducted from the overall total claim amount. UECCC will mark these customers as ineligible
for future consumer subsidy payments on subsequent product sales.

Note: IVA will conduct phone verification to additional customers if the customer selected in
the previous phone verification is not reachable. The additional customers will be added until
the phone verification sample size is achieved. These unreached customers will be replaced
by additional customers randomly selected by the MIS.

Customers with Technical Issues:

The customer shall be recorded to have technical issues with products during verification
upon the following observations:
• If a customer confirms having bought a product but claims that the system and/or its
parts are no longer working due to technical issues,
• The product sold was incomplete and is not fully functional – for example some
system components were not provided to the customer or does not operate as
advertised by the ESCO
• In the case of systems requiring installation, product was not yet or improperly
installed (provided to the customer but still inside the box)

Actions: The customer will be recorded in “Customers with Technical Issues List” and IVA will
share the list of these customers to the ESCO to investigate the reason for reported technical
issues. The ESCO will be requested to resolve the issue within 2 weeks. The ESCO will submit
the list of customers whose technical issues are addressed together with the next Claim Form.
The list of customers whose technical issues have been resolved will have to be accompanied
by their related maintenance repairs/forms signed by both customer and technician who
resolved the technical issue. The IVA, after 2 weeks, will call “customers with technical issues”
to verify whether repairs have been made within 2 weeks and document the result of the call.
If the system has been repaired and is functioning, the customer will be changed to “passed
customer list” and the incentive will be paid out with the next claim or in a separate payment
if there is no additional claim.
Each step shall be recorded with the date of completion in the Results Form.

20
The customers will be considered as “denied having systems” if they are reached, location is
matched but denies having the system from the ESCO under verification.

The customers will be considered as “unreached” if one of the following conditions are
observed:
• The customer does not answer the phone in six attempts including calling in
additional number given by the ESCO for the last two attempts.
• The respondent receives the phone call but does not know the customer.
• The alternative respondent (the phone number of another person given by the ESCO)
receives the phone call but does not know the customer.
Next step: The sales receipts for all unreached customers will be verified. Additional
customers will be added to the phone verification sample list until the required sample size
is achieved.

5.4.5 Field verification

For OGS and CCS claims, field verification will be conducted on the sample sizes of customers,
as detailed in 5.4.3 above. For PUE claims, field verification will be carried out on 100% of
customers claimed.

The results of the field verification are, just like the phone verification, recorded in the Results
Form. The IVA will complete an analysis of verification results and insert the data in the
corresponding fields in the Results Form.

Field verification, passed customers:

Condition: Those customers who are reached in field verification, confirmed the sales, the
price and confirmed that the system is working properly. The serial number of the product
matches that on the Contract / Sales receipt.

Next step: IVA will record the passed customers in “Pass Customer List” and recommend
UECCC for the disbursement with the claim verification report.

Field verification failed customers:

A customer will be considered for failure if one of the following conditions have been
observed:
• The product was given to the wrong person other than the registered names/ID
number in the Claim Form
• The system is not properly installed
• The received product was repossessed by the ESCO .
• The customer was charged a different price to that listed by the ESCO

21
 • The product shown by the customer does not match the product claimed by the ESCO

Next step: IVA will record the failed customers in “Failed Customer List”. UECCC will deduct
the claim amount of failed customers from the total claim amount to calculate the eligible
claim amount. In addition, UECCC can call for a meeting with ESCO and all implementing
partners to discuss the issues identified and identify ways to improve ESCO performance
and/or RBF process.

Customers with technical Issues shall follow the same procedures for phone verification, as
described above.

5.4.6 Verification for 2nd disbursement of ESCO Incentive

The ESCO can submit claims for the 2nd disbursement of the ESCO incentive 12 months
following the date of sale of the product for which the 1st disbursement was claimed and paid.
This will only be for those customers who were “passed” on the claim for the first
disbursement and provided that the ESCO can demonstrate that they are continuing to make
sales of similar products and providing after sales service in the specified region (does not
have to be for sales made through this RBF).

If the ESCO is continuing to submit claims for new sales in a specific region, then the
verification of those sales and associated technical issues will be used as evidence of their
continued operation in that region.

Where the ESCO does not continues to submit claims for new sales in a specific region, then
the ESCO must provide evidence that they are continuing to make sales and provide after
sales service in that region to obtain the payment of the 2nd disbursement of ESCO incentive.
This evidence can include sales receipts; customer address and phone numbers, product
details, list and phones of ESCO sales agents or sales outlets. The IVA will carry out desk
verification to validate the evidence submitted by the ESCO for each region being claimed.

Once it is verified by the IVA that the ESCO continues to operate in that region, the payment
of the second disbursement may be recommended in the verification report, once all other
verification conditions are met.

5.4.7 Outcome of the verification results

Once field verification is completed, IVA will enter the information into the results form.
Depending on the answers provided by the customer, the customer will be recorded as part
of:

• “Passed Customer List”:

• “Failed Customer List”:

22
 • “Customers with Technical Issues List”:

The customers will be considered as pass and be included in the “Passed Customer List” if the
following cases are observed during the verification:

• The household whose product has been stolen and the households (through the
ESCO) has submitted to IVA/UECCC the proof of such stolen items. The proof shall
include a complaint registered at nearby police station with acknowledgement of such
complaint received by the police. The ESCO will receive the full subsidy since the
stolen item is beyond the ESCO control. The household will be eligible for another
subsidized product.

• The household whose product has been destroyed by natural disaster may receive full
subsidy subject to the confirmation (written) from the concerned local government
office that the household was affected by the natural disaster and their product was
destroyed. The natural disasters that may destroy the house and thus damage the
product might be earthquake, flood, landslide, etc.

Next step:

• IVA will prepare the Verification Report, outlining the findings of the verification
conducted in desk check, contract/sales verification and field verification. The report
will include the following:
o List of customers failed during Phone, Contract/sales, and Field verification.
This list will include name of the customer, customer national ID, product
number, and the reason of the failure.
o List of customers having technical issues found during Phone and Field
verification with instruction to address the issues within 2 weeks. This list will
include name of the customer, customer national ID, product number, and the
type of technical issue.
o List of customers having inconsistencies found during desk check not
resubmitted by the ESCO within a 5-day notice period. This list will include
name of the customer, customer national ID, product number, and the type of
inconsistencies (such as price mismatch, location mismatch, etc.).
The Verification Report along with the final Results Form will be submitted to UECCC for
disbursement. The signed claim verification report is necessary to initiate disbursement and
must be documented and archived.

5.4.8 Communication about verification outcome and disbursement

IVA will report to UECCC about the outcome of the verification. Specifically, IVA will send the
Consolidated Results Form (in Excel) and Verification Report to UECCC for approval.

23
Once the verification is completed, UECCC will communicate in writing to the ESCO a
summary table showing claim number, total amount claimed by the company, total amount
verified by IVA to be disbursed to the ESCO, amount to be withheld for customers with
technical issues, and amount deducted due to failed customers.

If upon completion of the verification process, the aggregated failure rate during desk, phone,
and field verification is greater than 10%, UECCC will meet with the ESCO to review the
reasons for failure prior to disbursement. If there is suspicion of fraud, further investigation
will be made prior to disbursement.

The ESCO will receive the list of inconsistent customers through an official email from UECCC.
ESCO will have five (5) working days to submit the missing sales information to UECCC. The
ESCO can resubmit the corrected information during the next claim if they are unable to
correct the information within five (5) working days.

UECCC will store the claim information in the ESCO File. The ESCO File is used to keep track
of the status of each claim as well as other details (e.g., number of claims submitted, number
of sales claimed for, number of claims that passed or conditionally passed and that didn’t
pass).

5.4.9 UECCC: Disbursement

Upon approval of the verification report and subject to “No-Objection” from the World Bank,
UECCC will release the disbursement and inform the ESCO.

UECCC shall disburse the subsidy equivalent to the approved claim. The disbursement will be
by bank transfer to the bank account of the ESCO. UECCC will release the payment within ten
(10) working days after the recommendation received from the IVA.

In summary, the claiming, verification, approval and disbursement will follow the following
timeline:

24
Figure 2: disbursement flow

Working Days

0 Step 1: ESCO submits claim to UECCC

1-20 Step 2: IVA assesses the claim and conducts verification

Step 3: If satisfactory verification, IVA prepares the Verification Report

21-25 and recommends claim to UECCC for disbursement

Step 4: UECCC approves the verification report, submits to WB for no-

26-35 objection, communicates to the ESCO, prepares the Disbursement
Note, and approves it

35-40 Step 5: UECCC releases payment to ESCO

NB: The timeline does not include the time spent by ESCOs in revising the Claim Form and
submitting the information such as Sales Contract/receipt.

6 Environmental and Social Safeguards

ESCOs shall implement, operate and monitor the project in compliance with the UECCC ESMS.
Relevant sections of the ESMS will be included as terms and conditions or covenants in the
agreements.

7 Refugee and Hosting Districts (RHDs)

A separate funding allocation has been made to Refugee and Hosting Districts (RHDs) through
the World Bank Refugees and Host Community Window. The primary objective of RHD
window is to provide dedicated funding to promote integration of refugees into national plans
and programs so that no-one is left behind, in line with the objectives of the GCR, CRRF and
NDPIII. It also aims to support host communities living adjacent to refugee communities who
are impacted by the refugee influx. It is not intended for preferential supports to refugees or
host communities, nor to create different processes and structures for RHDs separate to other

25
districts in Uganda. Any consumer poverty assessments and targeting approaches should be
applied equitably across all communities. Additional recommendations for ESCOs to increase
sales in RHDs is provided in Annex 5.

Refugees are in no way solely dependent on cash and in-kind transfers. They have a range of
livelihoods. 57% of refugees have official IDs acceptable by FIs and national authorities with
increasing numbers in process by the OPM2. There are many differences between the various
refugee settlements across Uganda, including differing income and poverty levels, as well as
culture and language, socio-economic opportunity, infrastructure and access to basic
services.

Refugees are not a single homogenous group and there are many differences between the 46
settlements, including language, culture, education levels, economic opportunity, climate and
other factors which need to be considered to successfully and sustainably increase energy
access in each of these locations. Additionally, accessibility and infrastructure vary
considerably across RHDs, with increased ESCO costs for some locations so that different
support levels may be required to serve specific RHDs.

Therefore, the design and implementation of subsidies and incentives should take account of
the differences across both refugee and host communities, in addition to the different supply
costs between multiple locations.

2 FSD Africa, 2020. Grit, Skill and Luck. Examining the Financial Lives of Refugees in Uganda. Baseline Survey
26
ESCOs are encouraged to expand sales to both host and refugee communities in the RHDs.
Additional incentives are required for ESCOs expanding sales in refugee settlements to cover
additional administrative costs.

While these targeting mechanisms must take account of the different poverty and
vulnerability levels between districts, and within districts, they must also recognize the
potential for market distortion, perceived unfairness and possible selling-on of products to
nearby areas who receive lower subsidies. It is important to fully engage local government,
communities and other stakeholders when applying different levels of subsidies within a
similar region to ensure fairness, transparency, and social cohesion.

Targeted additional consumer subsidies should not be assigned to RHDs only, nor should they
be applied at the same rate to all RHDs. They must take account of the actual poverty,
vulnerability or access challenges specific to each community. Additionally, they must also
recognize differences between the various communities within a specific district and across
neighboring districts.

The support levels to consumers and ESCOs will need to be regularly reviewed (at least every
6 months) and adjusted to ensure appropriate support are in place to achieve targets and
develop sustainable markets.

8 Monitoring & Evaluation

To ensure that the objective of the program is met, there will be periodic program monitoring
and evaluation reviews. This will be undertaken by UECCC PIU in liaison with the monitoring
and evaluation unit.

Monthly, quarterly and annual monitoring and evaluation reports based on set project
indicators will be prepared and submitted to the MEMD PCU and the World Bank.

The monitoring and evaluation reports to include review of subsidy and incentive levels and
recommend adjustments as required. The review will reflect the feedback from the
participating ESCOs, market intelligence, performance and lessons learnt from operations of
the program.

UECCC will provide required budget for the monitoring and evaluation activities under the
project.

UECCC will ensure that ESCOs will monitor and manage the environmental and social risks
and impacts in line with the requirements of the UECCC’s Environmental and Social
Management System (ESMS).
27
9 Grievance Redress Mechanism

The Grievances Redress Mechanism (GRM) is effectively addressing grievances from

stakeholders impacted by EASP and is a core component of managing operational risks and
improving the project´s results.

The GRM will be used as a tool for early identification, assessment and prompt resolution of
complaints related to the project. Understanding when and how a GRM may improve the
project outcomes will help both the PIU and other stakeholders to improve results.

Complaints will be addressed by different stakeholders—customers, private companies, PFIs,

financial, technical implementation agencies, various ministries and UECCC. Further details
are provided in Part A of the POM – Introduction and Annexes. The fulfillment of their
responsibility will be a pre-condition for each stakeholder to participate in the project.

All complaints will be submitted and handled through the Grievance Redress mechanism
provided under the UECCC ESMS and will be discussed at the project Grievance Redress
Committee (GRC) as provided in the ESMS.

10 Audit

The RBF program will be audited by the UECCC internal audit function and by the Auditor
General on behalf of Government of Uganda. Such Audit reports will be submitted to the
World Bank in accordance with provisions of the Financing and or Grant Agreements.

28
 SECTION 1

OFF-GRID SOLAR PRODUCTS (OGS)

RBF

29
 OGS RBF TABLE OF CONTENTS

1. INTRODUCTION TO EASP OGS RBF ................................................................. 31

2. OGS RBF GENERAL CONDITIONS .................................................................... 31
2.1. Duration of the OGS RBF .............................................................................................. 31
2.2. End user pricing............................................................................................................ 31
2.3. No subsidy for refurbished systems ............................................................................ 32
2.4. Repossession ................................................................................................................ 32
2.5. Grant Allocation per ESCO ........................................................................................... 32
2.6. Implementation tools and platforms .......................................................................... 33
2.9.1. Manual Applications, claims and reporting forms ............................................................................. 33
2.9.2. ESCO PAYGO platform .......................................................................................................................... 33
2.9.3. Digital automation platform/Management Information System ..................................................... 33
2.9.4. Mobile Money Platforms ....................................................................................................................... 33
2.9.5. Templates .............................................................................................................................................. 34

3. ELIGIBILITY CRITERIA FOR ESCOS UNDER THE OGS RBF ................................... 35

4. ELIGIBILITY CRITERIA FOR OGS PRODUCTS .................................................... 37
5. CONSUMER SUBSIDY AND ESCO INCENTIVES .................................................. 37
5.1. Consumer Subsidy Levels ............................................................................................ 37
5.2. ESCO Incentives for Remote and Underserved Communities ................................... 38
5.3. Disbursement schedule ............................................................................................... 39
5.4. Claim submissions ....................................................................................................... 40

30
 1. INTRODUCTION TO EASP OGS RBF

This section of the overall EASP POM provides the guidelines for Off-Grid Solar (OGS) Results
Based Finance (RBF) grants (performance-based grants), including defining the objectives,
processes, eligibility criteria, incentive structures, selection process, disbursements,
verification, and monitoring and evaluation.

Objective & Rationale for RBF financing: This RBF aims to increase the access to off-grid solar
technologies, with particular focus on the poorer sections of the population who currently
rely on kerosene, batteries, candles, disposable torches and biomass for lighting.

This RBF is enhanced by additional instruments under EASP which provide supports to Off-
Grid Solar companies and Financial institutions through access to credit and technical
assistance. This document is the POM that guides the implementation of the RBF for off-grid
solar products.

ESCOs may participate in more than one of the RBF programs within EASP. ESCOs may also
borrow under the CSF or Direct Lending program and apply for Technical Assistance grants
under EASP while participating in one of the RBF programs.

ESCOs who also sell OGS products across all Tiers and price ranges are eligible to apply for
credit or technical assistance under the overall EASP program.

2. OGS RBF GENERAL CONDITIONS

2.1. Duration of the OGS RBF

The EASP OGS RBF runs up to the end of June 2027. Availability of funds is on a first-comes
first-served basis until the funds have been fully utilized. The ESCOs must submit the last claim
before 31st March 2027.

2.2. End user pricing

The RBF is primarily expected to cover affordability constraints on part of the consumers with
supports to ESCOs to expand business in remote areas.

The ESCO will submit a pricing plan with their application. Sales prices and subsidies to be
applied by the ESCO for sales under the EASP RBF will be as set out in the Grant Agreement
for each product. ESCOs may only adjust retail prices during the period of the grant
agreement subject to prior agreement with UECCC.

31
The ESCOs are required to report on their pre-subsidy price, their subsidized price, the
customer contribution and the means of customer contribution (i.e., cash, PAYGO/credit
installment, rental) as part of the regular reporting to UECCC and in the Claim Form.

2.3. No subsidy for refurbished systems

The ESCO reserves the right to repossess the OGS product if the beneficiary household
defaults on the remaining payment to the ESCO. As per its repossession policy, the ESCO can
repossess the system, refurbish and install it to another customer. However, refurbished
systems are not eligible for support under this RBF and consumers do not receive a subsidy.

2.4. Repossession
The ESCO will have the right to repossess the OGS product subject to the conditions stipulated
on the Sales Contract signed between the ESCO and its customer. The ESCO should report to
UECCC the list of repossessed products together with the Claim Form. The list must include
the name of the customer, national ID, the customer’s phone number, date of the
sale/installation, serial number of the product, date when the product was repossessed, and
the reason for repossession. A separate tab for repossessed products will be created in the
Claim Form spreadsheet which can be downloaded from the UECCC website. The ESCO should
provide the entire updated list of repossessed customers in every Claim Form submitted to
UECCC.

The IVA will verify whether the subsidy has been released to the repossessed customers. If
the repossessed customers have received subsidy from the previous claim, the equivalent
subsidy amount will be deducted from the current claim. These repossessed customers will
be marked as ineligible for the payment of remaining subsidy. The repossessed customers
will be marked as permanently ineligible for another subsidized OGS product.

There is a separate grievance redress mechanism in place to handle product performance

issues. Customers can raise these issues directly with the ESCO or through the UECCC
complaints mechanism in the event of no response from the ESCO to ensure the issue is
addressed.

2.5. Grant Allocation per ESCO

ESCOs must specify in their proposal the projected utilization of the RBF funds. UECCC will
appraise this amount to set the grant allocation. For each ESCO accepted into the program,
UECCC will confirm the approved allocation amount.

This amount can be increased or decreased based on performance and lessons learnt during
implementation.

This review of allocation amount will be ongoing and ESCOs are encouraged to apply for
additional allocations prior to the full utilization of the agreed grants. This will avoid the
financing gap and ensure smooth continuity of the sale of products by the ESCO.
32
2.6. Implementation tools and platforms

The UECCC will use several tools and platforms to carry out the RBF program, as detailed
below. Some additional tools may be developed during implementation to improve program
performance.

2.9.1. Manual Applications, claims and reporting forms

The ESCO and UECCC will use manually completed forms until digital platforms are
developed, tested and operational. These forms are included in the annexes of this
document.

2.9.2. ESCO PAYGO platform

The eligible ESCO will record payment transactions, including on their PAYGO platform if
applicable, and share these payment records with UECCC through the Claim Form. These
payment records will be used during the verification process and for disbursement
conditions.

2.9.3. Digital automation platform/Management Information System

UECCC will develop or procure a data aggregation platform that will automate the steps and
processes under the RBF program. The platform will allow UECCC to keep track of RBF
commitments, disbursements made per ESCO, per product type, by location, and across the
program. This will also enable UECCC to monitor the progress of the RBF program and the
sector at large. A dashboard to provide ESCO-specific as well as program-wide trends will be
included. The platform will be able to confirm the customer sales data reported by the ESCO,
enable comparisons with independent verification reports by IVA etc.

2.9.4. Mobile Money Platforms

Many ESCOs will accept payments from customers using mobile money platforms offered by
mobile network operators. These platforms give ESCOs a digital record of all payments by
customers, including the time, the amount, and the phone number of the payment sender.

33
2.9.5. Templates
The following templates will be used throughout the program:
Table 2: Templates to be used for Implementation
Tool Description Purpose
EASP OGS RBF announcement Informs the sector about the new External public
program (or significant changes to the communication to
program), participation criteria and stakeholders
application procedures
RFP (technical and financial) To be submitted by interested ESCOs Appraisal and selection by
(Annex 1) to UECCC UECCC
RBF Grant Agreement (Annex Signed by UECCC and ESCO to Contract
2) formalize participation in the program
Claim Form (Annex 3) Contains basic information required Data collection, verification,
for initiating the claiming and disbursement
disbursement process
ESCO File Contains information on the Internal processing,
participating ESCO, communication coordination &
with the ESCO and claiming activities documentation
RBF Customer Database Contains the list of all customers
Field Verification Customer Contains sample for field verification Internal processing,
List coordination &
documentation
Field Verification Guides the field verification interview Data collection
Questionnaire and used to document respondents
answers
Field Verification Report Summarises consolidated results of Internal processing,
the field verification coordination &
documentation
Phone Verification Customer Contains sample for phone verification Internal processing,
List coordination &
documentation
Phone Verification Guides the phone verification Data collection
Questionnaire interview and used to document
respondents answers
Phone Verification Report Summarises consolidated results of Internal processing,
the phone verification coordination &
documentation
Verification Results Report Contains information on RBF qualifying Internal processing,
(based on field and phone customers and repossessed customers coordination &
verification) for claims payment as well as documentation
verification results.
Quarterly Performance report Provides information on RBF results Program and ESCO evaluation
including indicators in line with EASP
to be submitted to MEMD PCU and
World Bank.

34
 3. ELIGIBILITY CRITERIA FOR ESCOs UNDER THE OGS RBF

ESCOs are defined as private institutions, either a business or an NGO, that undertake the
following activities: 1) identifying customers, 2) selling and or installing the SHS to the
customer, 3) Providing training / product awareness, 4) offering product warranty and after-
sales service / customer care and, 5) providing credit to the customer, if applicable.

All ESCO business models are eligible, including cash sales, through a loan from a bank or
micro-finance institution, as an integrated PAYGO model, as a pure Product Purchase
Agreement (PPA), rental or some other variant of these basic models. Participating ESCOs will
be responsible for identifying and contacting customers as well as providing and maintaining
the products.

Participation shall be open to all interested ESCOs that must initially meet, and continue to
meet the following criteria:

• Licensed with adequate ownership structure: ESCOs should have a valid domestic
company registration and should be duly licensed with a tax identification number.
The ESCO must be in full compliance with relevant national regulations pertaining to
tax, legal and accounting norms. The owners and managers of the enterprise must be
‘fit and proper’.
• Adequate funding: ESCOs should have a defined funding strategy with no obvious
gaps or constraints on additional funding.
• Hold a valid bank account with a BOU recognized financial institution legally
registered for operations in Uganda
• Audit: Be able to provide an external independent audit report of the last two
financial years
• Satisfactory end-user pricing scheme: ESCOs must demonstrate that the end-user will
directly and fully benefit from the RBF consumer subsidy.
• Quality of operations: ESCOs should have a sound business with proven resources to
efficiently carry out operations at the functional level, including organization,
management, staff, local agents, financial and others. ESCOs should ensure that they
have the trained agents/staff for the sales and installation of quality products. ESCOs
should provide regular training to the agents/staff for quality installation and better
after-sales service. UECCC will assess the adequacy of regular training through an
annual appraisal of the ESCO.
• Quality products: ESCOs should provide OGS products that meet the eligibility criteria
for products outlined in 4.0 below.
• Warranty and after-sales service: Proof of a satisfactory consumer protection plan,
including warranties within a stipulated period. ESCOs must have an established and
active after-sales service capability. ESCOs should provide the list of agents/staff
working in different districts to ensure an adequate staff/agent-base for sales and

35
 timely after-sales-service. ESCOs must have preventive maintenance plan clearly
showing the plan for regular maintenance and after-sales-service of the sold OGS
products.
• Adequate accounting systems and management information and well-organized IT
support: Those ESCOs who are involved in delayed payment (such as PAYGO) services
should have good accounting, bookkeeping, management and adequate system
software support. This criterion is also mandatory for the ESCOs who are involved in
cash sales.
• Past Experience: Have demonstrable operations that include sales of OGS products
for at least two years locally or internationally.
• Recycling: in line with UECCC’s ESMS, ESCOs will submit a duly signed declaration and
an ESMP as commitment that the ESCO will be responsible for collection, storage and
safe disposal of residual waste (batteries, lamps, and related waste) after the useful
life of the accessories in consultation with the National Environment Management
Authority (NEMA). ESCOs must also comply with the recommendations for e-waste in
the ESMS.
• Gender quotas: ESCOs should have at least 10% of the workforce employed,
represented by women and be able to demonstrate that they apply the principle of
‘equal pay for equal work’ for the same level job position. The ESCO should submit a
declaration letter declaring that there is no pay gap between male and female workers
for the same level job position.
• Compliance with E&S requirements: In accordance with the UECCC ESMS, ESCOs must
confirm compliance with applicable E&S standards. In line with sections 1.3.3 and
1.3.4 of UECCC’s ESMS, ESCOs will provide Environment Social Management Plan
(ESMP) for likely E&S risks associated with intended business operations.
(to be part of the RFP document).
• Organizational Code of Conduct: demonstrating provisions for corruption and fraud.
• Pass a due-diligence inspection to ensure product authenticity and company
operations.
• Rural Operation: The ESCO has rural presence or plans to establish outlets or agents
in rural areas.
• Capacity: ESCOs must be capable of implementing the proposed business plan in the
chosen market.
• Default Rates : ESCOs must maintain a PAYGO customer default rate of less than 45%
throughout participation in the RBF.
• Data System: Maintain a system to provide data required for project implementation
and monitoring.
• Company Code: Abide by a satisfactory competitive code of norms for dealing with
customers, employees, and other companies, including but not limited to providing
customers with complete and correct information about products, services and prices.
This will form part of the RBF Grant Agreement.

36
 • Blacklisted: ESCO /Dealers which are debarred/blacklisted by Multilateral/Donor
funding agencies and or Government of Uganda will not be considered for
participation.

Participating ESCOs will enter into RBF Grant Agreement with UECCC based on the template
provided under Annex 3 of this POM, and which outlines the rights and obligations of both
parties under the program. This agreement will also include a Customer Service Code of
Conduct that will detail the standards that ESCOs are expected to adhere to.

Once accepted into the program, ESCOs will be expected to meet the eligibility criteria at all
times. ESCO will be monitored continuously and will be reviewed annually on a case-by-case
basis.

4. ELIGIBILITY CRITERIA FOR OGS PRODUCTS

The OGS RBF is applicable to any off-grid solar product which meets the following minimum
criteria:

• Must provide evidence that system delivers a minimum of ESMAP MTF criteria (Tier
1, 2 or 3) for the relevant product Category A or B. (Attach proving documents)

• Proof that product has a valid certificate (All checks with “PASS” or “complies”) from
the Uganda Bureau of Standards (UNBS) for plug & play solar kits and component
based solar systems.

5. CONSUMER SUBSIDY AND ESCO INCENTIVES

5.1. Consumer Subsidy Levels

The table below shows the subsidy levels for each of the eligible product categories. These
apply nationally to all households in all areas of Uganda. The consumer subsidy is calculated
as a percentage of the retail price (stated in the application form), up to a maximum subsidy
cap amount.

Table 3: Consumer Price Subsidy Rates (% of Retail Price) per Product Category
Subsidy Subsidy
Product Technology
Rate Cap
Category (All Products are at least Tier 1)
(UGX)
37
 A. Solar Lamp with phone charging, providing minimum of 60% 100,000
1,000 lumen hours per day and minimum 4 hours light
B. Solar Home System providing capacity to charge phones, 50% 275,000
with minimum 2 separately switched lights AND
minimum of 1,000 lumen-hours per day with minimum
4 hours light

The consumer subsidy is applied for all customers in all communities in Uganda equally. The
customer pays the balance of the cost, either in cash and/or through a credit/PAYGO
mechanism, depending on the terms of the customer’s preferred ESCO.
Connection/installation fees that may be charged by some ESCOs to customers are
considered part of the customer contribution. The same household can access only one
product from each of the product categories within any 2-year period.

Throughout the implementation of the RBF, the UECCC in consultation with the GoU, the
World Bank and ESCOs, will regularly review the subsidy levels to reflect program
performance, market changes (such as rate of inflation, foreign currency fluctuation, overall
cost of living, etc.), to improve sales to specific communities and to ensure sustainability of
the program. The value of the subsidy paid per system may thus reduce or increase over the
life of the program, to a nominal level during the final period of the program. All increased or
decreased subsidy levels will apply only after the written public confirmation of updated rates
by UECCC and will not be back-dated.

5.2. ESCO Incentives for Remote and Underserved Communities

To encourage ESCOs to better serve remote and underserved rural communities across
Uganda, including RHDs, an additional incentive is applied according to the table below. These
categories are based upon the lower levels of infrastructure and market entry barriers in these
regions. With the exception of Kampala, every Region in Uganda receives an ESCO incentive
established according to the market entry barrier in each region. For example, it is more
challenging for ESCOs to supply to Karamoja, Moyo and Obongi than doing business in the
central and western regions particularly due to the difference in road quality, especially in the
rainy season. For sales in Refugee Settlements, an additional incentive of UGX 5,000 shall be
applied per product sold, as per the table below, to cover increased costs.

Table 4: Table of ESCO Incentives Per OGS Product Per Region

(same incentives for all product categories)
Region ESCO Incentive ESCO Incentive
Amount (UGX) Amount (UGX)

38
 for Refugee
Settlements
Kampala No Incentive No Incentive
Central 5,000 10,000
Eastern, Northern, Western 11,000 16,000
Karamoja and Islands 15,000 N/A

Following learnings from the regular evaluations of the RBF program, and through dialogue
with key stakeholders, alternative and/or additional ESCO incentives levels may be applied in
place of those shown above to effectively target the remote and underserved communities.
This can include additional supports required to target specific communities such as on island,
in refugee settlements etc., where ESCOs can demonstrate that additional supports are
required to expand operations into these communities and that these communities would
not be served by the RBF program otherwise.

5.3. Disbursement schedule

The consumer subsidy will be paid 100% upon verification by the IVA while ESCO incentives
will be paid in two installments, in case of either cash or PAYGO/credit sales, as per the table
below.

Table 5: Subsidy and incentive disbursement schedule

Disbursement Condition Payments
Consumer Subsidy
One installment Upon sale and verification by UECCC 100%
ESCO incentives
1st Installment Upon sale and verification by UECCC 50%
2nd Installment After 1 year based on evidence of continuous 50%
ESCO operation in a specified region

For example, if a Category B product is sold in Karamoja with retail prices of UGX 300,000,
the household will get a price subsidy of UGX 150,000 so that the customer contribution is
150,000UGX. 100% of this consumer subsidy (150,000) will be paid by UECCC upon
installation and verification The ESCO incentive for sales in Karamoja would be 15,000, with
7,500 paid upon installation and verification, and the balance of 7,500 paid after 1 year, once
the ESCO remains operational in that region 12 months after the product sale. An ESCO will
be considered operational if they can demonstrate that they continue to make sales and
provide after sales service in the specified region (see also 5.4.6 in RBF Procedures for ESCOs
above)
39
5.4. Claim submissions
To bundle administrative work for both the ESCO and the UECCC, the claim submission
schedule is as follows:

• Each ESCO can submit claims at any time subject to a minimum number of sales of
500 products. A maximum of one sales claim can be made each calendar month.
• Claims must be made within 3 months of the date of sale and the UECCC reserves the
right to accept claims when the sales volume is lower than 500 products.
• ESCOs must submit a signed hardcopy of each Claim Form Summary Table to UECCC,
in addition to submitting the excel claim document and claim form by email or via the
MIS

The ESCO must use the Claim Form Template to submit each claim. This template is available
in Excel format on UECCC website and instructions are contained in the template. This claim
form may be updated by UECCC and integrated into the MIS during implementation. ESCOs
should also use the Claim Form to report the payment data of each customer.

Any customers that do not pass the desk, phone, contract and/or field verification, but that
have a chance to be corrected (customers with technical issues), must be corrected within 2
weeks and will be processed during a next claim submission. The Claim Form will have a
separate tab for the customers with technical issues highlighted in the previous claim and will
provide supporting evidence that the technical issues have now been resolved. The subsidy
will not be paid for the customers with pending technical issues until their issues are
addressed amicably by the project level GRC. The outcome of the verification of the technical
issues list will be provided in the Results Form and shared with the UECCC.

40
 SECTION 2

Clean Cooking Solutions (CCS)

RBF

41
CCS RBF TABLE OF CONTENTS

1 INTRODUCTION TO EASP CCS RBF ................................................................. 42

2 CCS RBF GENERAL CONDITIONS .................................................................... 43
2.1 Duration of the CCS RBF .............................................................................................. 43
2.2 End user pricing............................................................................................................ 43
2.3 No subsidy for refurbished systems ............................................................................ 44
2.4 Repossession ................................................................................................................ 44
2.5 Grant Allocation per ESCO ........................................................................................... 44
2.6 CCS RBF Technical Committee .................................................................................... 45
2.7 Implementation tools and platforms .......................................................................... 45
2.7.1 Manual Applications, claims and reporting forms ............................................................................. 45
2.7.2 SP PAYGO platform ............................................................................................................................... 46
2.7.3 Digital automation platform / Management Information System .................................................... 46
2.7.4 Mobile Money Platforms ....................................................................................................................... 46

3 ELIGIBILITY CRITERIA FOR ESCOS UNDER THE CCS RBF ................................... 47

4 ELIGIBILITY CRITERIA FOR CLEAN COOKING SOLUTIONS.................................. 50
5 CONSUMER SUBSIDY AND ESCO INCENTIVES .................................................. 52
5.1 Consumer Subsidy Levels ............................................................................................ 52
5.2 ESCO Incentives for Remote and Underserved Communities ................................... 53
5.3 Disbursement schedule ............................................................................................... 54
5.4 Claim Submissions ....................................................................................................... 55

1 INTRODUCTION TO EASP CCS RBF

This section of the overall EASP POM provides the guidelines for Clean Cooking Solutions (CCS)
Results Based Finance (RBF) grants (performance-based grants), including defining the
42
objectives, processes, eligibility criteria, incentive structures, selection process,
disbursements, verification, and monitoring and evaluation.

Objective & Rationale for RBF financing: This RBF aims to increase the access to Clean
Cooking Solutions technologies, with particular focus on the poorer sections of the population
who currently rely mainly on low quality traditional cookstoves fueled by fuelwood and
charcoal.

This RBF is enhanced by additional instruments under EASP which provide supports to Clean
Cooking Solutions companies and Financial institutions through access to credit and technical
assistance. This document is the Project Operations Manual (POM) that guides the
implementation of the RBF for Clean Cooking Solutions.

ESCOs may participate in more than one of the RBF programs within EASP. ESCOs may also
borrow under the CSF program and apply for Technical Assistance grants under EASP while
participating in one of the RBF programs.

ESCOs who sell CCS that meet the stated technical eligibility are eligible to apply for credit or
technical assistance under the overall EASP program.

2 CCS RBF GENERAL CONDITIONS

2.1 Duration of the CCS RBF

The EASP CCS RBF runs up to the end of June 2027. Availability of funds is on a first-comes
first-served basis until the funds have been fully utilized. The ESCO must submit the last claim
before 31st March 2027.

2.2 End user pricing

The RBF is primarily expected to cover affordability constraints on part of the consumers with
supports to ESCOs to expand business in remote areas.

The ESCO will submit a pricing plan with their application. Sales prices and subsidies to be
applied by the ESCO for sales under the EASP RBF will be as set out in the Grant Agreement
for each product. ESCOs may only adjust retail prices during the period of the Grant
Agreement subject to prior agreement with UECCC.

The ESCOs are required to report on their pre-subsidy price, their subsidized price, the
customer contribution and the means of customer contribution (i.e. cash, PAYGO/credit
installment, rental) as part of the regular reporting to UECCC and in the Claim Form.

43
2.3 No subsidy for refurbished systems
The ESCOs reserve the right to repossess the CCS product if the beneficiary household
defaults on the remaining payment to the ESCO . As per its repossession policy, the ESCO can
repossess the system, refurbish and sell it to another customer. However, refurbished
systems are not eligible for support under this RBF and consumers do not receive a subsidy.

2.4 Repossession
The ESCO will have the right to repossess the CCS product subject to the conditions stipulated
on the Sales Contract signed between ESCO and its customer. The ESCO should report to
UECCC the list of repossessed customers together with the Claim Form. The list must include
the name of the customer, national ID, the customer’s phone number, date of the
sale/installation, serial number of the product, date when the product was repossessed, and
the reason for repossession. A separate tab for repossessed customers will be created in the
Claim Form spreadsheet which can be downloaded from the UECCC website. The ESCO should
provide the entire updated list of repossessed customers in every Claim Form submitted to
UECCC.

The IVA will verify whether the subsidy has been released to the repossessed customers. If
the repossessed customers have received subsidy from the previous claim, the equivalent
subsidy amount will be deducted from the current claim. These repossessed customers will
be marked as ineligible for the payment of remaining subsidy. The repossessed customers
will be marked as permanently ineligible for another subsidized CCS product.

There is a separate grievance redress mechanism in place to handle product performance

issues. Customers can raise these issues directly with the ESCO or through the UECCC
complaints mechanism to ensure the issue is addressed. Subsidy levels at the time of sales
registration will be honored until the completion of the subsidy payment even if the subsidy
levels for new customers changes over time.

2.5 Grant Allocation per ESCO

ESCOs must specify in their proposal the projected utilization of the RBF funds. UECCC will
appraise this amount to set the Grant Allocation. For each ESCO accepted into the program,
UECCC will confirm the approved allocation amount.

This amount can be increased or decreased based on performance and lessons learnt during
implementation.

This review of allocation amount will be ongoing and ESCOs are encouraged to apply for
additional allocations prior to the full utilization of the agreed grants. This will avoid the
financing gap and ensure smooth continuity of the sale of products by the ESCO.

44
2.6 CCS RBF Technical Committee

A Technical Review Committee of 5-7 members represented by relevant experts and

stakeholders will be formed to review product eligibility and applicable standards. This is
required for systematic, expert and transparent assessment of products for the CCS RBF.

This committee shall comprise representatives from the following organisations:

• UECCC (EASP Project Manager and Clean Cooking Program Manager)
• MEMD (Clean Cooking Department)
• UNBS (Technical Officer)
• Expert Consultants (as and when required)

The technical committee will carry out a technical evaluation of the product eligibility for each
product in every ESCO application, subject to the eligibility criteria listed below (unless this
product has already been assessed and passed by the technical committee). It shall be
ensured that this committee comprises individuals with adequate expertise and experience
of the relevant products, standards, testing methods and certifications for each of the product
types being assessed.

The technical committee shall provide a brief product evaluation report to the UECCC PIU,
providing the outcome of the evaluation (pass/Fail) and evidence for their conclusions. They
shall also provide any recommendations to the PIU and any queries to the ESCO about the
product submission will be directly made by UECCC PIU, not by the committee.

The technical committee shall not evaluate any other details of the ESCO application, only the
product technical eligibility.
In addition to regular meetings to evaluate technical eligibility of CCS submitted in ESCO
proposals, they will also meet to discuss other technical issues which may arise through
customer complaints or ESCO feedback. They will present their recommendations on
amendments to standards or eligibility criteria to the UECCC PIU.

2.7 Implementation tools and platforms

The UECCC will use several tools and platforms to carry out the RBF program, as detailed
below. Some additional tools may be developed during implementation to improve program
performance.

2.7.1 Manual Applications, claims and reporting forms

The ESCO and UECCC will use manually completed forms until digital platforms are developed,
tested and operational. These forms are included in the annexes of this document.

45
2.7.2 SP PAYGO platform
The eligible ESCOs will record payment transactions, including on their PAYGO platform if
applicable, and share these payment records with UECCC through the Claim Form. These
payment records will be used during the verification process and for disbursement
conditions.

2.7.3 Digital automation platform / Management Information System

UECCC will develop or procure a data aggregation platform that will automate the steps and
processes under the RBF program. The platform will allow UECCC to keep track of RBF
commitments, disbursements made, per ESCO, per product type and across the program. This
will also enable UECCC to monitor progress of the RBF program and the sector at large. A
dashboard to provide ESCO-specific as well as program wide trends will be included. The
platform will be able to confirm the customer sales data reported by the ESCOs, enable
comparisons with independent verification reports by IVA etc.

2.7.4 Mobile Money Platforms

Many ESCOs will accept payments from customers using mobile money platforms offered by
mobile network operators. These platforms give ESCOs a digital record of all payments by
customers, including the time, the amount, and the phone number of the payment sender.

The following templates will be used throughout the program:

Table 6: Templates to be used for implementation

Tool Description Purpose
EASP CCS RBF announcement Informs the sector about the new External public
program (or significant changes to the communication to
program), participation criteria and stakeholders
application procedures
RFP (technical and financial) To be submitted by interested ESCOs Appraisal and selection by
(Annex 1) to UECCC UECCC
RBF Grant Agreement (Annex Signed by UECCC and ESCO to Contract
2) formalize participation in the program
Claim Form (Annex 3) Contains basic information required Data collection, verification,
for initiating the claiming and disbursement
disbursement process
ESCO File Contains information on the Internal processing,
participating ESCO, communication coordination &
with the ESCO and claiming activities documentation
RBF Customer Database Contains the list of all customers
Field Verification Customer Contains sample for field verification Internal processing,
List coordination &
documentation

46
 Field Verification Guides the field verification interview Data collection
Questionnaire and used to document respondents’
answers
Field Verification Report Summarises consolidated results of Internal processing,
the field verification coordination &
documentation
Phone Verification Customer Contains sample for phone verification Internal processing,
List coordination &
documentation
Phone Verification Guides the phone verification Data collection
Questionnaire interview and used to document
respondents answers
Phone Verification Report Summarises consolidated results of Internal processing,
the phone verification coordination &
documentation
Verification Results Report Contains information on RBF qualifying Internal processing,
(based on field and phone customers and repossessed customers coordination &
verification) for claims payment as well as documentation
verification results.
Quarterly Performance report Provides information on RBF results Program and ESCO evaluation
including indicators in line with EASP
to be submitted to MEMD PCU and
World Bank.

3 ELIGIBILITY CRITERIA FOR ESCOs UNDER THE CCS RBF

ESCOs are defined as private institutions, either a business or an NGO, that undertake the
following activities: 1) identifying customers, 2) selling and or installing the product to the
customer, 3) Providing training / product awareness, 4) offering product warranty and after-
sales service / customer care and, 5) providing credit to the customer, if applicable.

All ESCO business models are eligible, including cash sales, through a loan from a bank or
micro-finance institution, as an integrated PAYGO model, as a pure PPA, rental or some other
variant of these basic models. Participating ESCOs will be responsible for identifying and
contacting customers as well as providing and maintaining the products.

Participation shall be open to all interested ESCOs that must initially meet, and continue to
meet the following criteria:

• Licensed with adequate ownership structure: ESCOs should have a valid domestic
company registration and should be duly licensed with a tax identification number.
The ESCO must be in full compliance with relevant national regulations pertaining to

47
 tax, legal and accounting norms. The owners and managers of the enterprise must be
‘fit and proper’.
• Adequate funding: ESCOs should have a defined funding strategy with no obvious
gaps or constraints on additional funding.
• Hold a valid bank account with a BOU recognized financial institution legally
registered for operations in Uganda
• Audit: Be able to provide an external independent audit report of the last two
financial years
• Satisfactory end-user pricing scheme: ESCOs must demonstrate that the end-user will
directly and fully benefit from the RBF subsidy and that the ESCO incentives to the
ESCO will be used for approved business purposes.
• Quality of operations: ESCOs should have a sound business with proven resources to
efficiently carry out operations at the functional level, including organization,
management, staff, local agents, financial and others. ESCOs should ensure that they
have the trained agents/staff for the sales and installation of quality products. ESCOs
should provide regular training to the agents/staff for quality installation and better
after-sales-service. UECCC will assess the adequacy of regular training through an
annual appraisal of the ESCO.
• Quality products: ESCOs should provide CCS products that meet the eligibility criteria
for products outlined in 4.0 below.
• Warranty and after-sales service: Proof of a satisfactory consumer protection plan,
including warranties within a stipulated period. ESCOs must have an established and
active after-sales service capability. ESCOs should provide the list of agents/staff
working in different districts to ensure an adequate staff/agent-base for sales and
timely after-sales-service. ESCOs must have preventive maintenance plan clearly
showing the plan for regular maintenance and after-sales-service of the sold CCS
products.
• Adequate accounting systems and management information and well-organized IT
support: Those ESCOs who are involved in delayed payment (such as PAYGO) services
should have good accounting, bookkeeping, management and adequate system
software support. This criterion is also mandatory for the ESCOs who are involved in
cash sales.
• Past Experience: Have demonstrable operations that include sales of CCS products for
at least two years locally or internationally.
• Gender quotas: ESCOs should have at least 10% of the workforce employed,
represented by women and be able to demonstrate that they apply the principle of
‘equal pay for equal work’ for the same level job position. The ESCO should submit a
declaration letter declaring that there is no pay gap between male and female workers
for the same level job position.
• Compliance with E&S requirements: In accordance with the UECCC ESMS, ESCOs must
confirm compliance with applicable E&S standards. In line with section 1.3.3 and 1.3.4

48
 of UECCC’s ESMS, ESCOs will provide Environment Social Management Plan (ESMPS)
for likely E&S risks associated with intended business operations.
(to be part of the RFP document).
• Organizational Code of Conduct: demonstrating provisions for corruption and fraud.
• Pass a due-diligence inspection to ensure product authenticity and ESCO operations.
• Rural Operation: The ESCO has rural presence or plans to establish outlets or agents
in rural areas.
• Capacity: ESCOs must be capable of implementing the proposed business plan in the
chosen market.
• Default Rates: ESCOs must maintain a PAYGO customer default rate of less than 45%
throughout participation in the RBF

• Data System: Maintain a system to provide data required for project implementation
and monitoring.
• Company Code: Abide by a satisfactory competitive code of norms for dealing with
customers, employees, and other ESCOs, including but not limited to providing
customers with complete and correct information about products, services and prices.
This will form part of the RBF Grant Agreement.
• Blacklisted: ESCO /Dealers which are debarred/blacklisted by Multilateral/Donor
funding agencies and or Government of Uganda will not be considered for
participation.

Participating ESCOs will enter into RBF Grant Agreement with UECCC based on the template
provided under Annex 3 of this Operations Manual, and which outlines the rights and
obligations of both parties under the program. This agreement will also include a Customer
Service Code of Conduct that will detail the standards that ESCOs are expected to adhere to.

Once accepted into the program, ESCOs will be expected to meet the eligibility criteria at all
times. ESCO will be monitored continuously and will be reviewed annually on a case-by-case
basis.

49
4 ELIGIBILITY CRITERIA FOR CLEAN COOKING SOLUTIONS

The CCS RBF is applicable to any Clean Cooking Solution which meets the following minimum
criteria:

A. Household Biomass Cookstove requirements

Emission Factor,
max.
S. N Cookstove Type Efficiency PM2.5, CO, Safety, % Durability,
in %, min. mg/MJ g/MJ min. %, min.

1. Household 38 100 7.2 78 79

biomass
cookstove
(carbonized
biomass fuel)
2. Household 25 218 7.2 78 79
biomass
cookstove
(uncarbonized
biomass fuel)
3. Modern 40 100 4.4 94 93
Household
biomass
cookstove
(processed
biomass fuel
such as pellets)
Notes:
i. Household biomass cookstoves to be tested as per US ISO 19867-1 - Clean cookstoves
and clean cooking solutions — Harmonized laboratory test protocols — Part 1:
Standard test sequence for emissions and performance, safety and durability. ESCOs
will need to get their products tested in one of the testing centers recognized by UNBS.
These testing centers can be in Uganda or in other countries. Submission requirements
for testing, test methods and subsequent certification will be as per the prevailing
system of UNBS.

50
ii. As an interim provision, following performance targets will be accepted only for the
first year of EASP’s implementation. This should be understood as a grace period for
ESCOs to level up. In this interim period, if needed, EASP can provide trainings and
technical backstopping to ESCOs to design and produce more efficient and cleaner
cookstoves.
S. N Cookstove Type Efficiency PM2.5, CO, Safety, % Durability,
in %, min. mg/MJ g/MJ min. %, min.
max. max.

1. Household 35 100 11.5 78 79

biomass
cookstove
(carbonized
biomass fuel) –
Interim models
2. Household 25 386 11.5 78 79
biomass
cookstove
(uncarbonized
biomass fuel) –
Interim models

B. Household Biogas – should comply with US 1642:2016 Domestic biogas stoves’

specification

C. LPG – should comply with US 971:2019 – LPG Specification

D. Ethanol - should comply with US 1685:2017 – Standard specification for Denatured

Ethanol for use as cooking and appliance fuel. For Ethanol Cookstoves, South African
Standard SANS 666 will apply. Key performance targets for Ethanol Cookstoves are:
a. The handle touch temperature should be as per ISO
b. The C0/(CO+CO2) ratio should be under 2%
c. Should pass Conflagration (fuel containment) test

E. Electric cooking devices – Induction cookstoves and EPCs

a. Efficiency at least 80% following the testing protocol US ISO 19867-1

51
 b. Safety evaluation as per IEC 60335-2-6 (Household and similar appliances –
Safety – Part 2-6: Particular requirement for cooking ranges, hobs, ovens and
similar appliances)
All CCS products will be evaluated by the Technical Committee on a case-by-case basis and
must be approved prior to signing a Grant Agreement.

5 CONSUMER SUBSIDY AND ESCO INCENTIVES

5.1 Consumer Subsidy Levels

The table below shows the subsidy levels for each of the eligible product categories. These
apply nationally to all households in all areas of Uganda. The consumer subsidy is calculated
as a percentage of the retail price (stated in the application form), up to a maximum subsidy
cap amount.
Table 7: Consumer Price Subsidy Rates (% of Retail Price) per Product Category
Subsidy
Clean Cooking Solution (CCS) Rates Subsidy Cap (UGX)
Category A. Household Biomass Cookstove

i. Household biomass cookstove

(carbonized biomass fuel) 50% 30,000
ii. Household biomass cookstove
(Uncarbonized biomass fuel) 50% 40,000
iii. Modern Household biomass
cookstove (processed biomass fuel
such as pellets and woodchips) 50% 72,500
Category B. Household Biogas
30% 870,000
Category C. LPG package
40% 130,000
Category D. Ethanol cookstoves
40% 120,000
Category E. Electric Cooking devices

i. Induction/Infrared Cookers 50% 140,000

ii. Electric Pressure Cookers 50% 150,000

Category F. Solar cooker with PV and battery 30% 600,000

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The consumer subsidy is applied for all customers in all communities in Uganda equally. The
customer pays the balance of the cost, either in cash and/or through a credit/PAYGO
mechanism, depending on the terms of the customer’s preferred ESCO. The customer
contribution is fundamental to creating ownership, empowering beneficiaries, promoting
sustainability and motivating ESCOs to provide after-sales service.

Over any 2-year period, one household will be eligible to get the consumer price subsidy for
two products only: one household biomass cookstove (Category A) and another one from
higher tier cookstoves (Categories B-F) such as LPG, ethanol, biogas or electric cooking
solutions.

Throughout the implementation of the RBF, the UECCC in consultation with the GoU, the
World Bank and ESCOs, will regularly review the subsidy levels to reflect program
performance, market changes (such as rate of inflation, foreign currency fluctuation, overall
cost of living, etc.), to improve sales to specific communities and to ensure sustainability of
the program. The review of market conditions shall take place annually or on an as-needed
basis. The value of the subsidy paid per system may thus reduce or increase over the life of
the program, to a nominal level during the final period of the program. All increased or
decreased subsidy levels will apply only after the written public confirmation of updated rates
by UECCC and will not be back-dated.

5.2 ESCO Incentives for Remote and Underserved Communities

To encourage Clean Cooking Solutions ESCOs to better serve remote and underserved rural
communities across Uganda, including RHDs, an additional incentive is applied according to
the table below for each product category. With the exception of Kampala, every Region in
Uganda receives an ESCO incentive established according to the market entry barrier in each
region. These categories of regions are based upon the lower levels of infrastructure, supply
chain situation in these remote regions, and also reflect the increased rate of poverty
incidence in these regions. For example, it is more challenging for ESCOs to supply to
Karamoja, Moyo and Obongi than doing business in Isingiro, Mbarara or Kyegegwa
particularly due to the difference in road quality, especially in the rainy season. For sales in
Refugee Settlements, an additional incentive of UGX 5,000 shall be applied per product sold,
as per the table below, to cover increased costs.

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Table 8A: Table of ESCO Incentives Per Product Per Region
– Biomass Stoves (Firewood, Charcoal, Briquettes, Pellets)
Region ESCO Incentive ESCO Incentive
Amount (UGX) Amount (UGX)
for Refugee
Settlements
Kampala No Incentive No Incentive
Central 5,000 10,000
Eastern, Northern, Western 8,000 13,000
Karamoja and Islands 12,000 N/A

Table 2B: Table of ESCO Incentives Per Product Per Region – Non-Biomass Stoves
- Non-biomass stoves (Electric cookers, LPG, Ethanol, Biogas)

Region ESCO Incentive ESCO Incentive

Amount (UGX) Amount (UGX)
for Refugee
Settlements
Kampala No Incentive No Incentive
Central 14,000 19,000
Eastern, Northern, Western 24,000 29,000
Karamoja and Islands 29,000 N/A

Following learnings from the regular evaluations of the RBF program, and through dialogue
with key stakeholders, alternative and/or additional ESCO incentives levels may be applied to
effectively target the remote and underserved communities. This can include additional
supports required to target specific communities such as on island, in refugee settlements
etc., where it can be demonstrated that ESCOs require additional supports to expand
operations into these communities and that these communities would not be served by the
RBF program otherwise.

5.3 Disbursement schedule

The subsidy and incentives will be paid in two installments, in case of either cash or
PAYGO/credit sales, as per the table below.

Table 9: Subsidy and incentive disbursement schedule

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 Disbursement Condition Payments
Consumer Subsidy
One installment Upon sale/installation and verification by UECCC 100%
ESCO incentives
1st Installment Upon sale/installation and verification by UECCC 50%
2nd Installment After 1 year based on evidence of continuous 50%
operation in a specified region

For example, if a Category-A CCS such as Household Biomass Cookstove (carbonized biomass
fuel) is sold in Karamoja with a retail price of UGX 65,000, the Consumer will get a flat price
subsidy of UGX 30,000, which will be paid in full by UECCC to the ESCO upon sales verification.
Incentives for ESCOs for the same CCS will be released in two parts: 50% (UGX 6,000) upon
sales verification by UECCC and remaining 50% (UGX 6,000) after one year of adequate
customer service (including orienting users on the proper use of CCS). An ESCO will be
considered operational if they can demonstrate that they continue to make sales and provide
after sales service in the specified region (see also 5.4.6 in RBF Procedures for ESCOs above)

Adequate customer/after sales service is defined as a CCS product that is well functioning
without any technical issues. This will include local orientation programs to educate users
(main cooks from the families) on proper use and maintenance of CCS.

5.4 Claim Submissions

To bundle administrative work for both the ESCO and the UECCC, the claim submission
schedule is as follows:

• Each ESCO can submit claims at any time subject to a minimum number of sales of
200 products. A maximum of one sales claims can be made each calendar month.
• Claims must be made within 3 months of the date of sale, and the UECCC reserves the
right to accept claims when the sales volume even if the sales volume is lower than
200.
• ESCOs must submit a signed hardcopy of each Claim Form Summary Table to UECCC,
in addition to submitting the excel claim document and claim form by email or via the
MIS

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The ESCO must use the Claim Form Template to submit each claim. This template is available
in Excel format on UECCC website and instructions are contained in the template. This claim
form may be updated by UECCC and integrated into the MIS during implementation. ESCOs
should also use the Claim Form to report the payment data of each customer.

In case some customers under the Claim Form did not pass the desk verification check due to
missing or incorrect information (e.g., products that were not included in the monthly
reporting to UECCC, mismatch of the customer ID, location, price etc.), ESCOs will have five
(5) working days to correct the information (either through the Monthly Report or through
Claim form, whichever held incorrect data) and re-submit the corrected information to
UECCC. If it takes longer than 5 working days to re-submit the corrected information, then it
will be considered in the next claim submission. UECCC will proceed to phone verification for
those customers who passed the desk verification.

Any customers that do not pass the phone, contract and/or field verification, but that have a
chance to be corrected (customers with technical issues), must be corrected within 2 weeks
and will be processed during a next claim submission. The Claim Form will have a separate
tab for the customers with technical issues highlighted in the previous claim and will provide
supporting evidence that the technical issues have now been resolved. The subsidy will be
paid for those customers having no pending technical issues. The subsidy will not be paid for
the customers with pending technical issues until their issues are addressed amicably by the
project level GRC. The outcome of the verification of the technical issues list will be provided
in the Results Form and shared with the UECCC.

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 SECTION 3

PRODUCTIVE USE OF ENERGY (PUE)

RBF

57
PUE RBF TABLE OF CONTENTS

1 INTRODUCTION TO EASP PUE RBF ................................................................. 60

2 PUE RBF GENERAL CONDITIONS .................................................................... 60
2.1 Duration of the RBF ...................................................................................................... 60
2.2 End user pricing............................................................................................................ 60
2.3 No subsidy for refurbished systems ............................................................................ 61
2.4 Repossession ................................................................................................................ 61
2.5 Grant Allocation per ESCO ........................................................................................... 61
2.6 PUE RBF Technical Committee .................................................................................... 62
2.7 Implementation tools and platforms .......................................................................... 63
2.7.1 Manual Applications, claims and reporting forms ............................................................................. 63
2.7.2 SP PAYGO platform ............................................................................................................................... 63
2.7.3 Digital automation platform/ Management Information system ..................................................... 63
2.7.4 Mobile Money Platforms ....................................................................................................................... 63

3 ELIGIBILITY CRITERIA FOR ESCOS .................................................................. 65

4 ELIGIBILITY CRITERIA FOR PUE PRODUCTS ..................................................... 67
4.1 System quality and warranty ....................................................................................... 67
4.2 Providing warranty and after-sales-service ................................................................ 68
5 CONSUMER ELIGIBILITY CRITERIA.................................................................. 68
6 CONSUMER SUBSIDIES AND ESCO INCENTIVES ............................................... 69
6.1 Consumer Subsidy Levels ............................................................................................ 69
6.2 ESCO Incentives ........................................................................................................... 70
6.3 Disbursement schedule ............................................................................................... 71
6.4 Claim Submissions ....................................................................................................... 72

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LIST OF TABLES
Table 1: Consumer Price Subsidy Rates per Product Category ............................................... 69
Table 2: Table of ESCO Incentives Per Region ......................................................................... 71
Table 3: Subsidy and incentive disbursement schedule .......................................................... 71
Table 4: Templates to be used for implementation ................................................................ 64

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1 INTRODUCTION TO EASP PUE RBF
This section of the RBF Manual provides the guidelines for Productive Use of Energy (PUE)
Results Based Finance (RBF) grants (performance-based grants), including defining the
objectives, processes, eligibility criteria, incentive structures, selection process,
disbursements, verification, and monitoring and evaluation.

Objective & Rationale for PUE RBF financing: This PUE RBF aims to increase the access to on-
grid and off-grid productive use technologies to support businesses development and
productivity.

This RBF is enhanced by additional instruments under EASP which provide supports to Energy
ESCOs and Financial institutions through access to credit and technical assistance. This
document is the Project Operations Manual (POM) that guides the implementation of the
RBF for Productive Use of Energy technologies.

ESCOs may participate in more than one of the RBF programs within EASP. ESCOs may also
borrow under the CSF or Direct Lending program and apply for Technical Assistance grants
under EASP while participating in one of the RBF programs.

2 PUE RBF GENERAL CONDITIONS

2.1 Duration of the RBF

The EASP PUE RBF runs up to the end of June 2027. Availability of funds is on a first-comes
first-served basis until the funds have been fully utilized. The ESCO must submit the last claim
before 31st March 2027.

2.2 End user pricing

The RBF is primarily expected to cover affordability constraints on part of the consumers with
supports to ESCOs to expand business in remote areas.

The ESCO will submit a pricing plan with their application. Sales prices and subsidies to be
applied by the ESCO for sales under the EASP RBF will be as set out in the Grant Agreement
for each product. ESCOs may only adjust retail prices during the period of the Grant
Agreement subject to prior agreement with UECCC.
The ESCOs are required to report on their pre-subsidy price, their subsidized price, the
customer contribution and the means of customer contribution (i.e. cash, PAYGO/credit
installment, rental) as part of the regular reporting to UECCC and in the Claim Form.

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2.3 No subsidy for refurbished systems
The ESCOs reserve the right to repossess the PUE product if the beneficiary household
defaults on the remaining payment to the ESCO . As per its repossession policy, the ESCO can
repossess the system, refurbish and install it to another customer. However, refurbished
systems are not eligible for support under this RBF and consumers do not receive a subsidy.

2.4 Repossession
The ESCO will have the right to repossess the PUE product subject to the conditions stipulated
on the Sales Contract signed between ESCO and its customer. The ESCO should report to
UECCC the list of repossessed customers together with the Claim Form. The list must include
the name of the customer, national ID, the customer’s phone number, date of the
sale/installation, serial number of the product, date when the product was repossessed, and
the reason for repossession. A separate tab for repossessed customers will be created in the
Claim Form spreadsheet which can be downloaded from the UECCC website. The ESCO should
provide the entire updated list of repossessed customers in every Claim Form submitted to
UECCC.

The IVA will verify whether the subsidy has been released to the repossessed customers. If
the repossessed customers have received subsidy from the previous claim, the equivalent
subsidy amount will be deducted from the current claim. These repossessed customers will
be marked as ineligible for the payment of remaining subsidy. The repossessed customers
will be marked as permanently ineligible for another subsidized PUE product.

There is a grievance redress mechanism in place to handle product performance issues.

Customers can raise these issues directly with the ESCO or through the UECCC complaints
mechanism to ensure the issue is addressed.

Subsidy levels at the time of sales registration will be honored until the completion of the
subsidy payment even if the subsidy levels for new customers changes over time.

2.5 Grant Allocation per ESCO

ESCOs must specify in their proposal the projected utilization of the RBF funds. UECCC will
appraise this amount to set the Grant Allocation. For each ESCO accepted into the program,
UECCC will confirm the approved allocation amount.

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This amount can be increased or decreased based on performance and lessons learnt during
implementation.

This review of allocation amount will be ongoing and ESCOs are encouraged to apply for
additional allocations prior to the full utilization of the agreed grants. This will avoid the
financing gap and ensure smooth continuity of the sale of products by the ESCO.

2.6 PUE RBF Technical Committee

A Technical Review Committee of 5-7 members represented by relevant experts and

stakeholders will be formed to review product eligibility and applicable standards. This is
required for systematic, expert and transparent assessment of products for the PUE RBF.

This committee shall comprise representatives from the following organisations:

• UECCC (EASP Project Manager and Technical Program Manager)
• MEMD (Renewable Energy Department)
• UNBS (Technical Officer)
• Expert Consultants (as and when required)

The technical committee will carry out a technical evaluation of the product eligibility for each
product in every ESCO application, subject to the eligibility criteria listed below (unless this
product has already been assessed and passed by the technical committee). It shall be
ensured that this committee comprises individuals with adequate expertise and experience
of the relevant products, standards, testing methods and certifications for each of the product
types being assessed.

The technical committee shall provide a brief product evaluation report to the UECCC PIU,
providing the outcome of the evaluation (pass/Fail) and evidence for their conclusions. They
shall also provide any recommendations to the PIU and any queries to the ESCO about the
product submission will be directly made by UECCC PIU, not by the committee.

The technical committee shall not evaluate any other details of the ESCO application, only the
product technical eligibility.

In addition to regular meetings to evaluate technical eligibility of PUE products submitted in

ESCO applications, they will also meet to discuss other technical issues which may arise
through customer complaints or ESCO feedback. They will present their recommendations on
amendments to standards or eligibility criteria to the UECCC PIU.

UECCC PIU will recruit a consultant to develop a PUE QA framework for the evaluation, test
methods and standards of PUE products for the programme which will be submitted to the
RBF Technical committee for review and approval. The QA framework will cover both
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products and services. ESCOs will be required to adhere to a set of service standards and if
support is needed, the EASP TA facility can be used to help ESCOs build capacity to deliver
high-quality installation or after-sales services, including the use of automated data
management systems.

2.7 Implementation tools and platforms

The UECCC will use several tools and platforms to carry out the RBF program, as detailed
below. Some additional tools may be developed during implementation to improve program
performance.

2.7.1 Manual Applications, claims and reporting forms

The ESCO and UECCC will use manually completed forms until digital platforms are
developed, tested and operational. These forms are included in the annexes of this
document.

2.7.2 SP PAYGO platform

The eligible ESCOs will record payment transactions, including on their PAYGO platform if
applicable, and share these payment records with UECCC through the Claim Form. These
payment records will be used during the verification process and for disbursement
conditions.

2.7.3 Digital automation platform/ Management Information system

UECCC will establisha data aggregation platform that will automate the steps and processes
under the RBF program. The platform will allow UECCC to keep track of RBF commitments,
disbursements made, per ESCO, per product type and across the program. This will also
enable UECCC to monitor progress of the RBF program and the sector at large. A dashboard
to provide ESCO-specific as well as program wide trends will be included.. The platform will
be able to confirm the customer sales data reported by the ESCOs, enable comparisons with
independent verification reports by IVA etc..

2.7.4 Mobile Money Platforms

Many ESCOs will accept payments from customers using mobile money platforms offered by
mobile network operators. These platforms give ESCOs a digital record of all payments by
customers, including the time, the amount, and the phone number of the payment sender.

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The following templates will be used throughout the program:
Table 10: Templates to be used for implementation
Tool Description Purpose
EASP PUE RBF announcement Informs the sector about the new External public
program (or significant changes to the communication to
program), participation criteria and stakeholders
application procedures
RFP (technical and financial) To be submitted by interested ESCOs appraisal and selection by
(Annex 1) to UECCC UECCC
RBF Grant Agreement (Annex Signed by UECCC and ESCO to Contract
2) formalize participation in the program
Claim Form (Annex 3) Contains basic information required Data collection, verification,
for initiating the claiming and disbursement
disbursement process
ESCO File Contains information on the Internal processing,
participating ESCO, communication coordination &
with the ESCO and claiming activities documentation
RBF Customer Database Contains the list of all customers
Field Verification Customer Contains sample for field verification Internal processing,
List coordination &
documentation
Field Verification Guides the field verification interview Data collection
Questionnaire and used to document respondents’
answers
Field Verification Report Summarises consolidated results of Internal processing,
the field verification coordination &
documentation
Verification Results Report Contains information on RBF qualifying Internal processing,
(based on field verification) customers and repossessed customers coordination &
for claims payment as well as documentation
verification results.
Quarterly Performance report Provides information on RBF results Program and ESCO evaluation
including indicators in line with EASP
to be submitted to MEMD PCU and
World Bank.

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3 Eligibility criteria for ESCOs

ESCOs are defined as private institutions, either a business or an NGO, that undertake the
following activities: 1) identifying customers, 2) selling and or installing the product to the
customer, 3) Providing training / product awareness, 4) offering product warranty and after-
sales service / customer care and, 5) providing credit to the customer, if applicable.

All ESCO business models are eligible, including cash sales, through a loan from a bank or
micro-finance institution, as an integrated PAYGO model, as a pure PPA, rental or some other
variant of these basic models. Participating ESCOs will be responsible for identifying and
contacting customers as well as providing and maintaining the products.

Participation shall be open to all interested ESCOs that must initially meet, and continue to
meet the following criteria:

• Licensed with adequate ownership structure: ESCOs should have a valid domestic
company registration and should be duly licensed with a tax identification number.
The ESCO must be in full compliance with relevant national regulations pertaining to
tax, legal and accounting norms. The owners and managers of the enterprise must be
‘fit and proper’.
• Adequate funding: ESCOs should have a defined funding strategy with no obvious
gaps or constraints on additional funding.
• Hold a valid bank account with a BOU recognized financial institution legally
registered for operations in Uganda
• Audit: Be able to provide an external independent audit report of the last two
financial years
• Satisfactory end-user pricing scheme: ESCOs must demonstrate that the end-user will
directly and fully benefit from the RBF subsidy and that the ESCO incentives to the
ESCO will be used for approved business purposes.
• Quality of operations: ESCOs should have a sound business with proven resources to
efficiently carry out operations at the functional level, including organization,
management, staff, local agents, financial and others. ESCOs should ensure that they
have the trained agents/staff for the sales and installation of quality products. ESCOs
should provide regular training to the agents/staff for quality installation and better
after-sales-service. UECCC will assess the adequacy of regular training through an
annual appraisal of the ESCO.
• Quality products: ESCOs should provide PUE products that meet the eligibility criteria
for products outlined in 4.0 below.
• Warranty and after-sales service: Proof of a satisfactory consumer protection plan,
including warranties within a stipulated period. ESCOs must have an established and
active after-sales service capability. ESCOs should provide the list of agents/staff
working in different districts to ensure an adequate staff/agent-base for sales and

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 timely after-sales-service. ESCOs must have preventive maintenance plan clearly
showing the plan for regular maintenance and after-sales-service of the sold PUE
products.
• Adequate accounting systems and management information and well-organized IT
support: Those ESCOs who are involved in delayed payment (such as PAYGO) services
should have good accounting, bookkeeping, management and adequate system
software support. This criterion is also mandatory for the ESCOs who are involved in
cash sales.
• Past Experience: Have demonstrable operations that include sales of PUE products for
at least two years locally or internationally.
• Recycling: ESCOs must submit a duly signed declaration as commitment that the ESCO
will be responsible for collection and safe disposal of residual waste (batteries, lamps,
and related waste) after the useful life of the accessories in consultation with the
National Environment Management Authority (NEMA). ESCOs must also comply with
the recommendations for e-waste in the ESMS.
• Gender quotas: ESCOs should have at least 10% of the workforce employed,
represented by women and be able to demonstrate that they apply the principle of
‘equal pay for equal work’ for the same level job position. The ESCO should submit a
declaration letter declaring that there is no pay gap between male and female workers
for the same level job position.
• Compliance with E&S requirements: In accordance with the UECCC ESMS, ESCOs must
confirm compliance with applicable E&S standards. In line with sections 1.3.3 and
1.3.4 of UECCC’s ESMS, ESCOs will provide Environment Social Management Plan
(ESMP) for likely E&S risks associated with intended business operations.
(to be part of the RFP document).
• Organizational Code of Conduct: demonstrating provisions for corruption and fraud.
• Pass a due-diligence inspection to ensure product authenticity and company
operations.
• Rural Operation: The ESCO has rural presence or plans to establish outlets or agents
in rural areas.
• Capacity: ESCOs must be capable of implementing the proposed business plan in the
chosen market.
• Default Rates: ESCOs must maintain a PAYGO customer default rate of less than 45%
throughout participation in the RBF
• Data System: Maintain a system to provide data required for project implementation
and monitoring.
• Company Code: Abide by a satisfactory competitive code of norms for dealing with
customers, employees, and other companies, including but not limited to providing
customers with complete and correct information about products, services and prices.
This will form part of the RBF Grant Agreement.

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 • Blacklisted: ESCO /Dealers which are debarred/blacklisted by Multilateral/Donor
funding agencies and or Government of Uganda will not be considered for
participation.
Participating ESCOs will enter into an RBF Grant Agreement with UECCC based on the
template provided under Annex 3 of this Operations Manual, and which outlines the rights
and obligations of both parties under the program. This agreement will also include a
Customer Service Code of Conduct that will detail the standards that ESCOs are expected to
adhere to.

Once accepted into the program, ESCOs will be expected to meet the eligibility criteria at all
times. ESCO will be monitored continuously and will be reviewed annually on a case-by-case
basis.

4 ELIGIBILITY CRITERIA FOR PUE PRODUCTS

4.1 System quality and warranty

The table below shows the list of products which will be eligible at the start of the PUE RBF.
This list of products may be expanded by UECCC to include other PUE products, following
review of RBF performance, alternative proposals from ESCOs and evidence from the market.
ESCOs may submit applications which propose other products for productive uses of energy
and these will be evaluated by the UECCC.

Minimum
Product Maximum
Technology Warranty
Category Size
Period
A. Solar Powered Water Pump, including the 0.5kW 1 year
components required to power the pump, as well as
the irrigation equipment required to make best use of
the pump such as storage tanks and piping.
B. Solar Powered Refrigerator, including the 0.5kW / 1 year
components required to power the refrigerator 800L
C. Solar-Powered Grain Milling Machines 4kW 1 year
D. Solar Water Heaters 300L 2 years
E. On-grid (AC) Refrigerators 1kW 2 years
F. On-Grid (AC) Grain Milling Machines 5kW 2 years

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The RBF is applicable to any new on-grid or off-grid PUE product which is in the above list and
also meets one of the following three options:

1. Proof that product is Lighting Global (LG)/ Verasol approved. Send test or
provide link to LG / Verasol page, including minimum warranty terms.
2. Proof that product has a valid certificate (All checks with “PASS” or “complies”)
from the Uganda Bureau of Standards (UNBS), combined with IEC certification
on the batteries. The test results should be attached.
3. Proof that components comply with all relevant IEC standards (SP to provide
list of standards relevant to that product and proof of compliance)
4. Products with remote monitoring capability, where the ESCO can provide the
verification agent with verifiable appliance performance data showing available
service over the whole 12 months of operation, will be automatically eligible

All PUE appliances will be evaluated by the Technical Committee on a case-by-case basis and
must be approved prior to signing a grant agreement. The PUE products need to meet the
quality standards and minimum energy efficiency requirements to be confirmed by UECCC
with support from the technical committee.

UECCC shall establish and regularly update a list of approved products during implementation
and will work with UNBS and other stakeholders to provide guidance on PUE product
standards to increase quality levels on the market. They should also maintain a list of the
relevant test methods and standards that products are required to meet - including IEC
standards, and UNBS standards.

4.2 Providing warranty and after-sales-service

All participating ESCOs are required to provide minimum warranty as per UNBS or Verasol
quality standards, and an after sales contract that commits to the availability of spare parts
and technical service for the warranty period for that product. Failure to comply with these
warranty and after sales service requirements will lead to suspension from the RBF program.

5 Consumer Eligibility Criteria

For sales of PUE products, Customers must be Commercial Enterprises, that is, any activity
formed for the ongoing conduct of lawful business. Commercial Enterprises are limited to the
following eligible categories:

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 • Micro and Small Enterprises (up to 49 staff with maximum assets of 100million UGX)
• Sole Traders, farmers, household enterprises

Large or medium enterprises are not eligible, neither are domestic customers (households
which do not use the product for operating a business).

At the moment of the sale of PUE products, the ESCO must obtain evidence that the potential
Customer: a) is a Commercial Enterprise; b) the Commercial Enterprise falls into one of the
two eligible categories above. Allowed evidence includes accounts, sales receipts, purchasing
receipts, business plans, photos of the premises, GPS coordinates and a description of the
business operations.

During verification, if the IVA finds that the customer does not meet the eligibility criteria,
then the ESCO will not receive the consumer subsidy or ESCO incentive for that customer.

6 CONSUMER SUBSIDIES AND ESCO INCENTIVES

6.1 Consumer Subsidy Levels

The table below shows the subsidy levels for each of the eligible product categories. These
apply nationally to all customers in all areas of Uganda. The consumer subsidy is calculated as
a percentage of the retail price (stated in the application form), up to a maximum subsidy cap
amount.

Table 11: Consumer Price Subsidy Rates per Product Category

Product Subsidy Subsidy Cap
Technology
Category Rate (UGX)
A. Solar Powered Water Pump, including the components
required to power the pump and including the irrigation
60% 5 million
equipment required to make best use of the pump such as
piping and water storage.
B. Solar Powered Refrigerators, including the components
60% 3.5 million
required to power the refrigerator
C. Solar-Powered Grain Milling Machines 60% 3.5 million
D. Solar Water Heaters 60% 3.5 million
E. On-grid Refrigerators and Freezers 60% 3 million
F. On-Grid Grain Milling Machines 60% 3 million

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An additional subsidy amount of 50,000 will be paid to customer companies which have
female ownership (minimum 33% of company owned by a female in case of shared
ownership).

The customer pays the balance of the cost, either in cash and/or through a credit/PAYGO
mechanism, depending on the terms of the customer’s preferred ESCO. The customer
contribution is fundamental to creating ownership, empowering beneficiaries, promoting
sustainability and motivating ESCOs to provide after-sales service. Connection/installation
fees that may be charged by some ESCOs to customers are considered part of the customer
contribution.

Throughout the implementation of the RBF, the UECCC in consultation with the GoU, the
World Bank and ESCOs, will regularly review the subsidy levels to reflect program
performance, market changes (such as rate of inflation, foreign currency fluctuation, overall
cost of living, etc.), to improve sales to specific communities and to ensure sustainability of
the program.

The review of market conditions shall take place on an as-needed basis. The value of the
subsidy paid per system may thus reduce or increase over the life of the program, to a
nominal level during the final period of the program. All increased or decreased subsidy levels
will apply only after the written public confirmation of updated rates by UECCC and will not
be back-dated.

Only one product from each product category can be purchased from the same commercial
enterprise over the term of the RBF. (customer can purchase one from each category in that
time frame)

6.2 ESCO Incentives

To encourage off-grid ESCO to expand their geographic sales coverage and also product range,
an incentive is applied according to the table below. With the exception of Kampala, every
Region in Uganda receives an ESCO incentive established according to the market entry
barrier in each region. These categories are based upon the lower levels of infrastructure and
market entry barriers in these remote regions. For example, it is more challenging for solar
ESCOs to supply to Karamoja, Moyo and Obongi than doing business in the central and
western regions particularly due to the difference in road quality, especially in the rainy
season. For sales in Refugee Settlements, an additional incentive of UGX 20,000 shall be
applied per product sold, as per the table below, to cover increased costs.
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Table 12: Table of ESCO Incentives Per Product
Region ESCO Incentive ESCO Incentive
Amount (UGX) Amount (UGX)
for Refugee
Settlements
Kampala No Incentive No Incentive
Central 82,000 102,000
Eastern, Northern, Western 183,000 203,000
Karamoja and Islands 255,000 N/A

Following learnings from the regular evaluations of the RBF program, and through dialogue
with key stakeholders, alternative and/or additional ESCO incentives levels may be applied in
place of those shown in the table to effectively target remote and underserved communities
and/or specific product types. This can include additional supports required to target specific
communities such as on island, in refugee settlements etc., where the ESCOs can
demonstrate that they require additional supports to expand operations into these
communities and that these communities would not be served by the RBF program
otherwise.

6.3 Disbursement schedule

The consumer subsidy will be paid 100% upon verification by the IVA while ESCO incentives
will be paid in two installments, in case of either cash or PAYGO/credit sales, as per the table
below.

Table 13: Subsidy and incentive disbursement schedule

Disbursement Condition Payments
Consumer Subsidy
One installment Upon sales/installation and verification by UECCC 100%
ESCO incentives
1st Installment Upon sale/installation and verification by UECCC 50%
2nd Installment After 1 year based on evidence of continuous 50%
operation in a specified region

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ESCO will be considered operational if they can demonstrate that they continue to make sales
and provide after sales service in the specified region (see also 5.4.6 in RBF Procedures for
ESCOs above)

6.4 Claim Submissions

To bundle administrative work for both the ESCO and the UECCC, the claim submission
schedule is as follows:

• Each ESCO can submit claims at any time subject to a minimum number of sales of 10
products or sales value of UGX70 million, whichever is lower. A maximum of one sales
claim can be made each calendar month.
• Claims must be made within 3 months of the date of sale, and the UECCC reserves the
right to accept claims when the sales volume even if the sales volume is lower than
25.
• ESCOs must submit a signed hardcopy of each Claim Form Summary Table to UECCC,
in addition to submitting the excel claim document and claim form by email or via the
MIS

The ESCO must use the Claim Form Template to submit each claim. This template is available
in Excel format on UECCC website and instructions are contained in the template. This claim
form may be updated by UECCC and integrated into the MIS during implementation.

In case some customers under the Claim Form did not pass the desk verification check due to
missing or incorrect information (e.g. products that were not included in the monthly
reporting to UECCC, mismatch of the customer ID, location, price etc.), ESCOs will have five
(5) working days to correct the information (either through the Monthly Report or through
Claim form, whichever held incorrect data) and re-submit the corrected information to
UECCC. If it takes longer than 5 working days to re-submit the corrected information, then it
will be considered in the next claim submission.

Any customers that do not pass the desk and/or field verification, but that have a chance to
be corrected (customers with technical issues), must be corrected within 2 weeks and will be
processed during a next claim submission. The Claim Form will have a separate tab for the
customers with technical issues highlighted in the previous claim and will provide supporting
evidence that the technical issues have now been resolved. The subsidy will be paid for those
customers having no pending technical issues. The subsidy will not be paid for the customers
with pending technical issues until their issues are addressed amicably by the project level
GRC. The outcome of the verification of the technical issues list will be provided in the Results
Form and shared with the UECCC.

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11 ANNEXES

11.4 Annex 1: EASP RBF Application Form

The interested ESCOs are required to complete a form and upload required document online
through UECCC website. The following information will be obtained from the ESCOs:

Date of application: _______________

1. Name of the Energy Service company (ESCO):

_________________________________________________
2. Physical address:
_________________________________________________________________
3. Contact person:
Name:______________________________________;
Position: ___________________________
Phone: ____________________________________;
Email: ______________________________
4. Bank details (provide local currency account maintained in Uganda):
Account Name: _____________________________;
Account No.: ________________________
Bank Name: ________________________________;

5. Number of staff, sales outlet and districts covered:

No. of full-time staff
No. of part-time staff
% of female staff
Pay gap, if any, between female and
male staff, for the same positions (in
UGX)
No. of sales outlets
No. of districts covered
Name of districts covered

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6. Product information:
Normal Retail Prices (un-subsidized), if applicable
Product name Cash PAYGO Down- Installment Maturity
price price payment amount (for period (for
(total) (total) amount (for PAYGO sales) PAYGO
PAYGO sales) sales)

Proposed PAYGO prices under RBF program

Product PAYGO Subsidy Customer Down Installment Maturity
name price amount contribution payment amount period
(total) amount

Proposed total cash prices under RBF

Product Total Cash Subsidy amount Customer contribution
name price

7. Details of the board and management team

Academic Years of Contact
Name Position Nationality
qualification experience email

8. Monthly sales targeted under EASP RBF:

Product M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y2 Total

Name

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 Total

11. Monthly consumer subsidy amount (in UGX)

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y2 Total

Total

12. Monthly ESCO Incentive amount (in UGX)

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 Y2 Total

Total

13. Submit the following documents:

A formal letter requesting for financing under EASP RBF
Certificate of company registration from Uganda Registration of Services Bureau
Audit report of past three financial years, if available
Tax clearance certificate of last fiscal year
CVs of board members and management team
Business plan, if available
Specification, certification and warranty period for each product
Company processes for disposal/recycling of product components
Copy of the ESCO’s ESMS Manual

14. Overview of the business model for the RBF

Please describe your business model, including sales structure, marketing and approach to
sales in remote areas where applicable. Ensure that you describe step-by-step how the
75
product moves from you to the end user and who is doing what during the process (incl.
payment process). You may consider the following additional guiding questions when filling
out this section:

• Which districts will you be targeting?

• How are you reaching rural customers, e.g. directly through your own retail network,
through cooperatives, SACCOs, micro-finance institutions, RHDs etc.?
• Details of existing or proposed partnerships to support your business model
• How is the relationship between your company and individuals (or other) selling your
products set up? Are they your employees? Do they receive a commission per system
sold? Are they employees of another organisation? Are they independent
entrepreneurs?
• How are you training and instructing individuals who will sell to end users ?
• How are customers informed about using and maintaining the solar system? Do you
follow-up with customers after the sale to sensitise them?
• Will customers eventually own the system, or will they only benefit from the service?
If they eventually own the system, when will they own the system if payments are
made in instalments? What happens when a customer stops paying the instalments?
After what period do you decide to take back the system if a customer is not paying?
• If you are an NGO, please describe how you follow a commercial approach. If you are
working with NGO or UN agency, how do you assure that the sales are commercial
and not subsidised by the NGO/UN agency?

14. Brief overview of IT platform currently in use (e.g. proprietary CRM platform or third-party
software provider):

15. Description of payment collection process

1. Are you planning on selling in both mobile money and in cash?

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 2. If you are using mobile money, which mobile money platforms?
3. How do you connect to the mobile money provider? Do you use a technological
integration? If so, is it a direct connection with the telco platform or an indirect
connection through the IPN Hub or other aggregator? If it is a hosted connection, who
provides the hosted connection? If no integration, how does the manual processing of
mobile money payments work?
3. Where do you track your products? Through your proprietary platform or through a
third-party software provider? Do you have a system to connect the products to the
payments? Is it a hosted solution? ? If it is a hosted connection, and not the same as
for payment collections, who provides the hosted connection?
4. What type of lockout technology, if any, does your company use (e.g. keypad, GSM
etc)?
5. What type of accounting system do you use?

16. Brief overview of how you manage after-sales-service and warranty

17. Past performance

No. of products sold/
Fiscal Sales Turnover
installed
Year (UGX)
Product Type PAYGO Cash Rental
2019/20
2020/21
2021/22

77
11.5 Annex 2: Template of formal letter requesting Financing under EASP RBF

[DD/MM/YYYY]

Chief Executive Officer

Uganda Credit Capitalisation Company,
Plot 29/32, P.O. Box 29725, Kampala, Uganda

Subject: Application for EASP RBF participation

Dear CEO,

In reference to the EASP RBF Operations Manual published on your website, we hereby kindly
express our interest in the Results-based Financing scheme.

[provide one paragraph summary of your operations]

Based on our past performance and leveraging benefit from this RBF scheme, we plan to
connect [provide number of potential customers] new households in the next one year. We
anticipate to realize [insert sales revenue projected for one year, in UGX, per product type] in
sales and will target the following districts (……).

We look forward for a continuous partnership with UECCC and successful implementation of
the EASP RBF. We await UECCC’s reply for the appraisal and discussions of our request.

Sincerely yours,
[insert the name of the authorized person of your company]
[insert title]

Enclosure:
• Signed RBF Application Form
• Company registration certificate
• Audit report and tax clearance certificate of past three (or at least one) financial years.
• CVs of the board members and the management team;

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 • Business plan of the company, if available;

11.6 Annex 3: Template for RBF Grant Agreement between UECCC and ESCO

TERMS AND CONDITIONS OF THE AGREEMENT

THIS AGREEMENT is made by and between the undersigned parties;

THE Uganda Credit Capitalisation Company “UECCC”, Plot 29/32 Kampala Road, P.O. Box
29725 Kampala, Uganda, hereby officially represented by [name of the Company Secretary]
and [name of the CEO], Company Secretary and the Chief Executive Officer respectively, in
accordance with the powers conferred to them by the Board of Directors, hereunder referred
to “UECCC”.

and;
[…], a private company limited by shares, incorporated on (…), company registration No. (..),
whose head office is at […], hereby officially represented by [….], Managing Director, bearer
of a national identity card No […] a hereinafter referred to as the “Energy Service Company”
or “ESCO”, on other hand;

WHEREAS: UECCC is an implementing agency for the Electricity Access Scale-Up Project
(EASP) funded by the World Bank through the Government of Uganda.

WHEREAS, UECCC has agreed to implement the Results-based Financing (RBF) program of
the EASP, in accordance to the Operations Manual.

WHEREAS, UECCC having satisfied itself as to the eligibility of ESCO to participate in the
implementation of the EASP RBF, in accordance with the Operations Manual, has offered
Results-Based Financing Supports to the ESCO for the sale, installation and customer service
of eligible products;

WHEREAS, ESCO has agreed to the implementation of the EASP RBF program under the terms
and conditions set forth in this Agreement and in accordance with the Operations Manual.
UECCC and the ESCO hereby agree as follows:

ARTICLE 1: DEFINITIONS
1.1 Cash Sales: If the ESCO collects one hundred percent of the customer contribution
upon product sale. The partial collection will be considered as PAYGO/credit sales.
The sales through SACCO or Microfinance Institutions shall be considered as cash
sales.

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1.2 Eligible ESCOs: Companies (ESCOs) who fulfil the Eligibility Criteria as defined in each
section of the EASP RBF Operations Manual;
1.3 Encumbrance: includes: (i) any claim, mortgage, charge, pledge, lien, encumbrance,
assignment, security interest, title retention, preferential right, trust arrangement,
contractual right of set-off or any other security agreement or arrangement in favor
of any person by way of securing for the payment of a debt or any other monetary
obligation; and (ii) any restriction of any kind under any regulatory or voluntary
regime that may affect the ability of UECCC to use any Emission Reduction, and
cognate expressions;
1.4 Environmental and Social Standards: means collectively: (i) “Environmental and
Social Standard 1: Assessment and Management of Environmental and Social Risks
and Impacts”; (ii) “Environmental and Social Standard 2: Labor and Working
Conditions”; (iii) “Environmental and Social Standard 3: Resource Efficiency and
Pollution Prevention and Management”; (iv) “Environmental and Social Standard 4:
Community Health and Safety”; (v) “Environmental and Social Standard 5: Land
Acquisition, Restrictions on Land Use and Involuntary Resettlement”; (vi)
“Environmental and Social Standard 6: Biodiversity Conservation and Sustainable
Management of Living Natural Resources”; (vii) “Environmental and Social Standard
7: Indigenous Peoples/Sub-Saharan Historically Underserved Traditional Local
Communities”; (viii) “Environmental and Social Standard 8: Cultural Heritage”; (ix)
“Environmental and Social Standard 9: Financial Intermediaries”; (x) “Environmental
and Social Standard 10: Stakeholder Engagement and Information Disclosure”;
effective on October 1, 2018, as published by the World Bank at
https://www.worldbank.org/en/projects-operations/environmental-and-social-
framework/brief/environmental-and-social-standards”;
1.5 Exchange Rate: The United States Dollar to Ugandan Shillings conversion rate as
available on National Bank of Uganda website, on the date of the Grant Subsidiary
Agreement with UECCC is signed. That exchange rate will be reviewed every 6 months,
and revised to reflect the average exchange rate over the previous year, based on the
National Bank of Uganda published rate of exchange;
1.6 Forced Labor: any work or service not voluntarily performed that is exacted from an
individual under threat of force or penalty, including, but not limited to any kind of
involuntary or compulsory labor, such as indentured labor, bonded labor, or similar
labor-contracting arrangements;
1.7 International Rules: includes the UNFCCC, the Kyoto Protocol, the Paris Agreement,
any relevant decisions, guidance, guidelines, rules, modalities and procedures made
pursuant to them and or successor international agreements and which include those
rules specifically required to be met for the issuance or transfer of Emission
Reductions;
1.8 Operations Manual: This refers to EASP RBF Operations Manual, which can be found
on UECCC’s website
1.9 PAYGO Software: A platform hosted by the ESCO for the management of their off-
grid business;
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1.10 Repossessed System: A product repossessed by the ESCO or Participating Financial
Institutions from the Targeted Household;
1.11 Results-based Financing Consumer Subsidy: Amount to be received from UECCC by
ESCO, in accordance to disbursement conditions set forth in Operations Manual which
is to be used by the ESCO to provide customers with product prices lower than normal
retail prices. The ESCO will receive the subsidy amount on behalf of final beneficiary
households and micro-entrepreneurs;
1.12 Results-based Financing ESCO Incentive: Amount to be received from UECCC by
ESCO, in accordance to disbursement conditions set forth in Operations Manual which
is to be used by the ESCO to enhance their business operations, and to reach remote
or underserved customers.
1.13 Energy Product: Energy product which meets the minimum criteria set out in the
relevant section of the EASP RBF (OGS, CCS or PUE).
1.14 World Bank Operational Policies: means the social and environmental safeguard
policies of the World Bank.

ARTICLE 2: PURPOSE OF THE AGREEMENT

This agreement is meant to lay out the roles and responsibilities of the parties in regard to
the eligibility, implementation, and claim process of the supports under the EASP RBF. The
supports are designed to help achieve the GoU’s target to provide affordable off-grid
electricity solutions for all Ugandans.

ARTICLE 3: RBF GRANT ALLOCATION AMOUNT

The Results-Based Financing Grant Allocation amount in this agreement is a sum of […] (UGX)
[…]) Ugandan Shillings to be disbursed in accordance with the disbursement schedule (Article
8). The UECCC and ESCO agreed on the agreement amount as per the proposal submitted by
the ESCO and evaluation conducted by UECCC. Based on the progress over time and based
on the utilization of the agreement amount, UECCC shall have the right to reduce or withdraw
the allocation amount or accept requests for additional allocations.

ARTICLE 4: TERM
The Agreement shall be valid for three (3) years from the date of signature by both Parties, or
up to 30th June 2027. The Agreement shall be renewable upon satisfactory performance and
subject to the fulfilment of the RBF eligibility criteria at all times.

ARTICLE 5: ESCO RIGHTS AND OBLIGATIONS

Carry out its project with due diligence and efficiency and in accordance with sound technical,
economic, financial, managerial, environmental and social standards and practices
satisfactory to UECCC, including in accordance with the provisions of:
1. World Bank Anti-Corruption Guidelines applicable to recipients of loan
proceeds other than the Final Beneficiary;
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 2. World Bank Operational Policies and World Bank Environmental and Social
Framework and its set of ten Environmental and Social Standards (ESSs). . The
Operations Manual is an integral part of this agreement. UECCC shall notify, in
writing, the ESCO of the period when the (New) ESSs and related E&S
Instruments are applicable in accordance with Section 6.5 below.
- Shall not use any Forced Labor in connection with the project. The ESCO (a) represents
and warrants that it has not engaged or employed Forced Labor in the past; and (b)
the ESCO is committed to not engaging or employing Forced Labor for the duration of
the Grant Subsidiary Agreement;
- Obtain and maintain any and all licenses, permits, consents, authorizations, approvals,
required under applicable laws at international, national, regional, local levels to
implement, operate and monitor the project; and satisfy and comply with any and all
obligations and requirements provided under such licenses, permits, consents,
authorizations and approvals;
- Provide, promptly as needed, the resources required for the purpose;
- Maintain policies and procedures adequate to enable it to monitor and evaluate in
accordance with indicators acceptable to UECCC and the World Bank, the progress of
the project and the achievement of its objectives;
1. maintain a financial management system and prepare financial statements, both
in a manner adequate to reflect the operations, resources and expenditures
related to the project; and
2. at the request of the World Bank or UECCC, as the case may be, have such financial
statements audited by independent auditors acceptable to the World Bank and
UECCC, and promptly furnish the statements as so audited to the World Bank or
UECCC, as the case may be;

- Enable World Bank or UECCC, as the case may be, to inspect the project, its operation
and any relevant records and documents; and
- Prepare and furnish to World Bank or UECCC, as the case may be, all such information
as the World Bank or UECCC, shall reasonably request relating to the foregoing.
- Fulfil eligibility criteria at all times. Failure in fulfilment of eligibility criteria may result
in immediate termination of the Agreement;
- Pay all taxes, duties and levies relating to this project.
- Shall not change the prices of product agreed herein without prior consent of UECCC.
- The ESCO should claim minimum 16% of the approved amount within a period of 6
months from the date of signing the Agreement. Failure to fulfill this condition, UECCC
reserves the right to revise or cancel the Agreement.
- The ESCO must present a non-subsidized PAYGO price and also a non-subsidized cash
sales price for each product to be sold under the RBF. The subsidy amount should be
deducted from the subsidized PAYGO or cash price, depending on their business
model. The Consumer Subsidy should thus be used to reduce end-user pricing and the
ESCO must apply the new pricing scheme (compared to non-subsidized price, if
applicable) submitted to UECCC as part of the application process.
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- Minimize the risk of causing damages to third parties and incurring third party claims;
- Not engage in, or authorize or permit any affiliate or any other person acting on its
behalf to engage in, any coercive, corrupt, collusive, obstructive or fraudulent
practice.
ARTICLE 6: UECCC RIGHTS AND OBLIGATIONS
6.1. UECCC shall charge ESCO a service fee of 4% of the total subsidy amount plus 18%
VAT. The fee shall be charted based on the disbursed subsidy amount to ESCO.
6.2. The UECCC shall have right to audit financials of the ESCO that are related to subsidy
transactions;
6.3. The UECCC shall disburse the payments in accordance with the disbursement
conditions set forth in the EAP RBF Operations Manual. Each disbursement shall be
done against the approved verification reports submitted to UECCC by the
Independent Verification Agent;
6.4. The UECCC shall suspend or terminate the right of the ESCO to participate in the RBF
program, upon the ESCO ’s failure to perform any of its obligations under the RBF
Operations Manual and this Agreement;
6.5. UECCC shall promptly notify, in writing, the ESCO of the period when the (New) ESSs
and related E&S Instruments are applicable and promptly inform the World Bank, in
writing, of such notification.

ARTICLE 7: SUBSIDY LEVELS

ESCO should fully pass on the subsidy to final product customers, as outlined in the RBF
Operations Manual. Any changes to subsidy levels shall be agreed in advance in writing with
UECCC.

ARTICLE 8: GRANT DISBURSEMENT

8.1. The UECCC shall disburse the payment amount in accordance to the RBF Operations
Manual.
8.2. The ESCO, at the time of submitting the claim, shall report to UECCC the amount
claimed under PAYGO sales and/or cash sales.
8.3. For cash sales, ESCO should collect one hundred percent customer contribution at
time of sale, or after installation where necessary. Partial down payment shall be
considered as PAYGO/credit sales. The sales through financial institutions (SACCO,
microfinance institutions) shall be considered as cash sales.
8.4. The verification for each subsidy or incentive instalment shall be done as per the
procedure established in the RBF Operations Manual.
8.5. After sales service by the ESCO: The ESCO shall provide “after sales services” and
perform such services for a period equal to the warranty period of the product. The
ESCO shall provide repair and maintenance services of SHS and to deliver spare parts
quickly during the Warranty period at no cost to the Beneficiaries.

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ARTICLE 9: CLAIM SUBMISSION
9.1. The ESCO shall submit a claim to UECCC for instalment payments of the subsidy and
incentive as outlined in the Operations Manual.

9.2. The ESCO should submit a claim in accordance with the Claim Form. Moreover, the
ESCO should use the Claim Form to collect and report payment data on each
customer.

9.3. The ESCO shall provide access to its PAYGO software to UECCC to validate the
information provided above. The ESCO shall eventually be required to integrate its
PAYGO software with the UECCC IT platform for real-time information on system
installation and performance. This condition will be applied to those ESCOs who
maintain PAYGO software or IT platform related to delayed payment.

9.4. Once the Claim is submitted, the IVA shall conduct the verification and submit a
recommendation to UECCC for subsidy disbursement. The verification and
disbursement shall be in accordance with the procedures set in the RBF Operations
Manual.

ARTICLE 11: ESCO ELIGIBILITY CRITERIA

11.1. All ESCO business models are eligible. The ESCO shall comply with the eligibility criteria
set out in the EASP RBF Operations Manual at all times during participation in the
program.

11.2. Whenever the ESCO deviates from the eligibility criteria and the stipulated roles and
responsibilities, a credible commitment in the form of a time-bound action plan needs
to be prepared by the ESCO and submitted to UECCC. UECCC and the World Bank team
shall closely monitor the performance. The ESCO cannot submit a subsidy claim until
the eligibility criteria have been met again.

ARTICLE 12: BENEFICIARY COMPLAINT

12.1. The ESCO is required to set up a beneficiary customer service and complaints hotline.
The hotline will serve as recourse for customers who are experiencing system
problems and after-sales service. The ESCO technicians are required to fix the problem
within 2 weeks after the complaint is registered.

12.2. If the beneficiary household does not receive service within 2 weeks, they can contact
UECCC and register the complaint. UECCC will take notes and inform the ESCO about
the complaint.
ARTICLE 13: BASIC CUSTOMER AWARENESS

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13.1. The ESCO shall provide a basic awareness to customers on a) proper handling of the
system; b) conditions for warranty/guarantee; c) basic features of the system; d)
benefits; e) regular cleaning of the panel; f) contact information for after-sales-
service; g) amount of customer contribution and payments terms etc. The Agreement
advises ESCO to provide an information brochure (User Manual) containing the basic
information and proper handling the system.

ARTICLE 15: SUSPENSION

15.1. Whenever the ESCO deviates from the eligibility criteria and the stipulated roles and
responsibilities, a credible commitment in the form of a time-bound action plan needs
to be prepared by the ESCO and approved by UECCC. UECCC and the World Bank shall
closely monitor the performance against the time-bound action plan. UECCC reserves
the right to suspend an ESCO’s participation in the program if the eligibility criteria
remain unfilled and performance against the action plan (subject to World Bank non-
objection), which would lead to automatic rejection of any subsidy claims.

15.2. The ESCO may be penalized and its right to participate in the RBF program may be
suspended, as outlined in the PUE Operations Manual.

ARTICLE 16: EVENTS OF DEFAULT

16.1. Failure to honor a subsidy amount claimed by the ESCO;
16.2. Misrepresentation;
16.3. Any breach of any of the conditions and obligations relating to this agreement,
including but not limited to the ones provided under Article 5 of this agreement;
16.4. Material adverse change in the, management, business, control of the business or
financial position of the ESCO;
16.5. Qualified report by the auditor of the ESCO’s financial statements;
16.6. Nationalization of the project or the ESCO
16.7. Seizure of the ESCO’s assets by third parties due to unfilled or unsettled by obligations
by ESCO.
16.8. Expropriation of the project
16.9. Suspension or abandonment of the project by ESCO for maximum period of 30 days.
16.10. Dissolution of the ESCO
16.11. Commencement of Judicial bankruptcy or insolvency proceedings
16.12. Repudiation or challenge of administrative documents of the project
16.13. Cancellation or removal of authorizations necessary for the ESCO to implement the
project.

ARTICLE 17: REMEDIES TO EVENTS OF DEFAULT

85
Regarding all events of default, if the ESCO fails or is unable to remedy such default within
thirty (30) days of receipt of written notice thereof from the UECCC, the latter shall reserve
the right to terminate the Agreement and initiate legal proceedings or at its discretion take
over the management of ESCO.

ARTICLE 18: FOLLOW-UP

During the entire period of the Agreement, the ESCO shall, at any moment, allow UECCC to
have access to the location of the product installed for any information on how the subsidy
is being utilized.

ARTICLE 19: REPORTING

19.1. The ESCO shall submit performance reports on a quarterly basis to UECCC;
19.2. The ESCO shall provide any information on his business and/or operation requested
for by UECCC in support of its project;
19.3. Submission of financial reports is an integral part of the conditions for funding and
failure to produce the required reports on due date will constitute a breach of this
Agreement.

ARTICLE 20: LIABILITY AND PENALTIES FOR DELAY TO CORRECT MISTAKES

20.1. Each party shall be liable to fully indemnify, defend and hold harmless the other party
for and against all and any losses or damages suffered or incurred (whether directly
or indirectly) caused by or as a result of other party’s negligence or any form of breach
of this Agreement or as a result of damages caused by either party’s employees.

20.2. If it is found out that contract activities were poorly executed such that some of them
are defective or are not in conformity with the requirements of this contract, the ESCO
corrects such mistakes or replaces the supplies delivered that did not conform to what
was required within a period not exceeding fifteen (15) days starting from the date of
reception of the request, or otherwise incurs delay penalties for each day of delay.
For the first seven (7) days of delay, the ESCO incurs a penalty of one thousandth
(1/1000) of the value of the item that has been reported to be defective or does not
conform to the requirement of this contract. If that period expires, the ESCO in
addition incurs one thousandth (1/1000) of the value of the item for each day of delay
up to the time when he/she corrects or replaces the defective item in accordance with
the requirements of this contract.

20.3. Money deducted as penalties for delaying in executing activities or for poorly
executed activities is deducted from the amount of the approved invoices or claims
for subsidy due for payment. If the value of the penalties for delaying executing
activities or for poorly executed activities or both, exceeds the value of approved
claims for subsidy, the contract will be automatically cancelled and the ESCO will be
held responsible for any loss incurred by UECCC.

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ARTICLE 21: OFFICIAL ADDRESS
In order for the present contract to be put into execution, official addresses of the contracting
parties are as follows:

• The UECCC: at its head office in Plot 29/32, Kampala Road, P.O. Box 29725,
Kampala, Uganda
• The ESCO: at its head office in (…)

ARTICLE 22: TERMINATION

22.1. BY UECCC
UECCC may terminate this Agreement, by not less than thirty (30) days’ written notice of
termination to the ESCO, to be given after the occurrence of any of the events specified in
paragraphs (a) through (d) of this Clause and sixty (60) days’ in the case of the event referred
to in (e):

(a) if the ESCOs do not remedy a failure in the performance of their obligations under the
Contract, within thirty (30) days after being notified or within any further period as
UECCC may have subsequently approved in writing.
(b) if the ESCOs become insolvent or bankrupt.
(c) if, as the result of Force Majeure, the ESCO sare unable to perform a material portion of
the Services for a period of not less than sixty (60) days; or
(d) if the ESCO, in the judgment of UECCC has engaged in corrupt or fraudulent practices in
competing for or in executing the Contract. For the purpose of this clause:
“corrupt practice” means the offering, giving, receiving, or soliciting of anything of value
to influence the action of a public official in the selection process or in contract
execution.
“fraudulent practice” means a misrepresentation of facts in order to influence a selection
process or the execution of a contract to the detriment of UECCC, and includes collusive
practice among ESCO s(prior to or after submission of proposals) designed to establish
prices at artificial non-competitive levels and to deprive UECCC of the benefits of free
and open competition.
(e) if UECCC, in its sole discretion, decides to terminate this Contract.

22.2. BY THE ESCO

The ESCOs may terminate this Contract, by not less than thirty (30) days’ written notice to
UECCC, such notice to be given after the occurrence of any of the events specified in
paragraphs (a) and (b) of this clause:

(a) if UECCC fails to pay any monies due to the ESCOs pursuant to this Contract and not
subject to dispute in sixty (60) days after receiving written notice from the ESCOs that
such payment is overdue; or
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(b) if, as the result of Force Majeure, the ESCOs are unable to perform a material portion of
the Services for a period of not less than sixty (60) days.

22.3. PAYMENT UPON TERMINATION

Upon termination of this Agreement pursuant to term clause in this Agreement, UECCC shall
make payments to the ESCOs for products satisfactorily supplied and installed prior to the
effective date of termination.

22.4 SURVIVAL
The parties' rights and obligations under this Agreement will survive the termination of this
Agreement, if applicable, to the extent that no new claims will be honored if such claims are
in regard to installations or sales made after the effective date of termination.

ARTICLE 23: LANGUAGE

All notices, correspondence, documentation or communications of whatsoever nature, reports
submitted or prepared under or in connection with this Agreement shall be in the English
language.

ARTICLE 24: CONFIDENTIALITY

ESCO and UECCC will not reveal to a person or unauthorized entity any confidential
information obtained during the execution neither of the services nor to make public any
conclusion or recommendation relating to the services without prior written consent from
the other Party to this agreement.

ARTICLE 25: FORCE MAJEURE

Neither Party will be responsible for failure of performance due to causes beyond its control,
including: pandemics, epidemics, acts of God or nature; labor disputes; sovereign acts of any
federal, state or foreign governments; network and/or computer failure or shortage of
supplied materials (“Force Majeure Event”); provided that the affected Party makes a
reasonable attempt to remove the impact of the Force Majeure Event as soon as reasonably
possible. Either Party will have the right to terminate this Agreement upon written notice if
a force majeure occurrence continues to impact performance of the other Party for more
than sixty (60) consecutive days.

ARTICLE 26: CONTRACT DOCUMENTS AND ORDER OF PRECEDENCE

26.1. The following documents shall constitute the Contract Documents between UECCC
and the ESCO, and each shall be read and construed as an integral part of the Contract:
(i) This Agreement, including the Annexes and notifications hereunder.
(ii) The EASP RBF Operations Manual and its amendments
(iii) The ESCO ’s submitted technical and financial proposals as accepted by UECCC.

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26.2. In the event of any ambiguity or conflict between the Contract Documents listed
above, the order of precedence shall be the order in which the Contract Documents
are listed above.

ARTICLE 27: ENTIRE AGREEMENT

This Agreement contains the entire agreement and understanding between the parties,
superseding all prior contemporaneous communications, representations, agreements, and
understandings, oral or written, between the parties with respect to the subject matter
hereof. This Agreement may not be modified in any manner except by written amendment
executed by each party hereto.

ARTICLE 28: APPLICABLE LAW, SEVERABILITY, RESOLUTION OF DISPUTES AND

JURISDICTION
28.1. The present contract is governed by the laws of the Republic of Uganda. If a provision
of this agreement is or becomes illegal, invalid or unenforceable, that shall not affect
the validity or enforceability in that jurisdiction of any other provision of this
agreement; or the validity or enforceability in other jurisdictions of that provision or
any other provision of this agreement.
28.2. All disputes related to the performance of this agreement shall be settled amicably. In
case of failure of amicable settlement, they will be referred to Ugandan competent
courts.

ARTICLE 29: TAKING EFFECT

This agreement takes effect from the date of its signature.
Done in three original copies, Kampala, on ……………………

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11.7 Annex 4: GOGLA CUSTOMER PROTECTION PRINCIPLES

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11.8 Annex 5: GUIDANCE TO ESCOs TO INCREASE SALES IN RHDs

a) Local Agents
Engage and/or train agents with enough knowledge of the local language, customs and
community structures of the target communities, including local government, NGOs and UN
agencies. Agent presence locally will reduce costs and time taken to deliver services /products
on the ground.

b) Clear Communication and Awareness

Clearly communicate details of products and services offered, including operational
instructions, additional fees, charges, interest, repercussions for non-payment and
complaints address mechanisms. Address awareness and education through community
groups, including VSLAs, SACCOs and co-ops and particularly for refugees who have lower
financial or technical literacy than their host community counterparts.

c) NGO Partnerships Recommended

ESCOs are encouraged to partner with NGOs who are already working with refugee and host
communities in target RHDs. This will bring the following benefits to the ESCO:
• NGOs are well connected to these communities and already understand their situation,
culture and language, in addition to leadership structures and working groups.
• NGOs will make it much easier to quickly develop trust and customer relations & most
appropriate approaches
• Assist in minimizing any administrative barriers and ease access to settlements
• Learn from experiences in other programs
• NGOS are already engaged in training and awareness raising activities, including with
local savings groups. They may be able to provide shared facilities such as storage.
• Can attract additional funding to the program
• NGOs can provide qualitative and quantitative data on populations to better inform
business decisions on this market segment
The ESCOs will work directly with the refugee and host communities and must not use
the NGOs to offer/manage their products and services.

d) Benefit from existing groups and community structures

Target VSLAs and other community groups for both financial services and energy products.
This will include training and awareness raising. Savings groups represent a very important
channel for refugees and host communities to access finance and also as a channel for
engagement with private sector to understand and adopt their products and services.

e) Develop Relationships with local actors

Coordinate with OPM, UNHCR, NGOs, local government and local communities as early as
possible in the process for guidance on understanding the context, successes and failures of
previous activities, procedures, challenges and supports available.
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 f) Include RHDs in wider regional target market
ESCO should establish complete supply chain from primary hubs/cities to target region and
should not exclusively target RHDs without also serving adjacent and/or intermediary
districts.

g) Obtain Permissions from OPM to operate in Refugee Settlements early

The settlement commandant is the highest government official in refugee settlements,
reporting to the OPM. Outside visitors to a settlement, such as individuals from private firms,
need to obtain a letter from the settlement commandant authorizing entry to the settlement.

ESCOs wishing to provide services to refugees in settlements are advised to apply on-line to
partner with OPM as soon as possible. This will allow easier access to settlements without the
need to notify OPM at each visit.
Visit : http://urrms.opm.go.ug/refugeecoordination/#signup & refer to this guide :
http://urrms.opm.go.ug/refugeecoordination/URRM%20User%20Manual%20NGOs.pdf

h) Focus first on community champions and those with ability to pay

To create strong and sustained markets, it is recommended to first focus on establishing a
solid customer base and community awareness before aiming for the poorest or most
vulnerable customers3. As with other national markets, the aim is to establish and strengthen
the market through attracting paying customers first, not to start with the most vulnerable in
the community. Humanitarian actors or other funding sources may provide additional support
to PSNs where appropriate.

i) Align activities with other initiatives in the district

Work closely with MEMD and local government, in addition to OPM, UNHCR, NGOs & other
actors to ensure activities align with other humanitarian and development programs and
initiatives.e.g. other RBF programmes by other development partners. This will help avoid
duplication of service provision or subsidy while maintaining equal opportunity for market
competition.

j) Additional Sources of Finance

Consider additional sources of finance to enhance or expand activities, in consultation with
UECCC, UNHCR, development banks and donors. These could include P-RECs, D-RECs,
innovation funds, humanitarian and climate related funding. Such funds cannot be used for
the same activities or sales targets within EASP and if the company’s sales are already
subsidized through another source of finance, they cannot be eligible for subsidy under the
RBF scheme.

3 Endev, 2018. Results Based Financing for Energy Access. How to Design and Implement Projects: Lessons
from the Field.
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 k) Increased access to Digital Services
Increase access to digital services to enable mobile money transactions, recording and
verification, credit ratings and easier links to higher tier banking products and services, whilst
being aware of transactions costs for the poor. Enabling credit ratings for customers will
increase market confidence, lower default rates and expand services available. Lower risks
can lead to lower cost and lower interest rates.

l) Stakeholder Engagement
ESCOs are encouraged to undertake early identification of stakeholders, both project-affected
parties and other interested parties. ESCOs are advised to familiarise themselves with local
community structures and leaders to facilitate their operations in the settlements. NGOs are
best placed to assist ESCOs to engage with the communities. It is recommended to establish
local presence and/or call centres to provide consumers with product awareness, education
on proper use, payment issues and complaints. Ensure strong project communication on the
joint benefits to refugees and host communities and find ways to collectively engage both
communities in joint activities to exhibit joint gains and strengthen social cohesion.

m) Accurate Data
Improve access to data on income levels, sources and consistency of income and cash inflows,
financial and energy needs, educational levels, and familiarity with digital financial / energy
products and channels. This will require additional data collection on RHDs in partnership with
humanitarian and development actors, in particular in settlements, to make informed
business decisions.

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11.9 Annex 6: EASP RBF Quarterly Reporting Template

This must be separately completed for all products.

[Name of ESCO]

EASP RBF Utilization Quarterly Performance Report

From the date of [insert month/year] to [insert month/year]

A. Fund utilization status

I Agreement Grant Amount as per Grant Subsidiary Agreement

amount (UGX) signed with UECCC
II Amount of Grant The actual grant amount received from
received (UGX) UECCC. The amount should be equivalent or
less than the agreement amount.
III Utilization rate (%) The rate of actual grant utilized as
percentage of agreement amount.

B. Sales of products

I No. of people provided Total people directly benefited during the

with access to approved reporting period.
energy technologies
II No. of females provided Total female directly benefited during the
with access to approved reporting period.
energy technologies
III No. Cash Sales
IV No. PAYGO Sales
V Default rate for PAYGO
sales
VI Total number of Sales
Claimed
VII Total Consumer Subsidy
Claimed
VIII Total ESCO Incentive
Claimed

C. Status of electricity generation (where applicable)

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 I Capacity added (kW) Total capacity generated during the reporting
period in terms of cumulative kW generation.
II No. of districts covered Total districts covered by sales during
reporting period.

D. Status of private sector contribution

I Total sales turnover Total sales revenue generated during the

(UGX) reporting period.
II Total credit mobiized Total credit amount utilized during the
(UGX) reporting period
IV Average NPL ratio (%) The non-performing loan status calculated as
of reporting period. Calculated as: Total
default amount / Total outstanding credit.

I Workforce employed The percentage of women workforce in total

(represented by employment, as of this reporting period
women)
II Payroll difference (UGX), Do you have different payroll between male
for women workers and female workers engaged in the same
position/job role? If yes, provide the
difference figure in UGX calculated as –
‘payroll to male a worker minus payroll to a
female worker’. Add other rows when
necessary.

F. List the key project implementation challenges (in bullet points)

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F. Provide key suggestions (in bullet points)

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G. Certification

I, [names], [title] of [name of the ESCO ], by signing this Quarterly Report on behalf of [name
of the ESCO ] certify that to my best knowledge all information contained herein is accurate
and truthful. I understand that any willful misstatement described herein will lead to the
disqualification from the EASP RBF program and will result in a claim by UECCC for the return
of any subsidy provided based on result claims affected by the fraud, and may be prosecuted
by judicial means.

[Signature] [Seal]

[Name and Title] [Date]

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11.10 Annex 7: Process for updating Claims Form, Results Form, ESCO File

(This annex except Claim Form is for UECCC internal use only)

The EASP RBF has developed a number of tools such as a. Claim Form, b. Results Form, c.
ESCO File, that are important for its day-to-day operation. The step-by-step procedures for
working on these tools must be documented for the program efficiency and sustainability.
This is important for the proper handling of customers having different status (“pass”, “fail”,
“technical issues”, “inconsistencies” “repossessions”) which helps to minimize the issues
related to duplication, i.e. double subsidy payment. The procedure for regular updating of
these tools is also required for a smooth transitioning of verification activities from UECCC to
IVA and knowledge management. This annex describes the process for updating the following
tools. These tools and processes may be adapted to the integrated MIS, with some additional
processes for user rights and data protection within the MIS. UECCC will present the updated
MIS, with any adaptations to these forms to the World Bank to obtain “No-Objection”.

A. Claim Form: To be completed and submitted by the ESCO for each claim. Separate claim forms to
be completed and submitted for OGS, CCS and PUE products.
The Claim Form is an Excel-based tool which is being used by participating ESCOs for the
documentation of their product sales made under the RBF program. A Claim Form is to be
completed and submitted by participating ESCO to UECCC for verification of sales and
processing of payments. The Claim Form needs to be prepared in Excel as per the template
available on UECCC website. Instructions for completion and submission of the Claim Form
are contained in the excel Claim Form template. Once the tabs in the excel Claim Form have
been completed by the ESCO, they shall print and sign the Claim Form Summary Table, and
submit a hard copy of this to UECCC. They shall also submit the completed Claims Form Excel
file, with supporting documents, by email or via API.

B. Results Form:
The Results Form is an Excel-based tool which is being used internally by UECCC and the IVA. The
Results Form is used for a. desk check, b. sampling, c. phone verification, d. contract/sales receipt
check, e. field verification, and to handle the issues related to repossession and technical issues.

The step-by-step process for working on the Results Form is described below:
1. UECCC/IVA receives the signed Claim Form from the ESCO through hard and soft copy. The
completed Claim form in excel format shall be sent by email.
2. IVA does a basic check such as date of claim submitted, claim period, claim number to ensure
that the claim submission has fulfilled the basic requirements (no overlap in the claim period,
claim numbers, etc.)

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 3. IVA does a simple “copy” of the information provided on the “customer raw data submission”
tab “paste” them in the “Claim form import” tab of the Results Form.
4. IVA conducts phone verification and contract/receipt verification (if necessary) and field
verification and the outcome of the verification will be recorded in the “PV results”, “contract
/sales receipt verification” and “FV results” tabs respectively. The IVA will use software such
as KOBO to survey customers during field verification and upload that data to the “FV Results”
tab.
5. The list of customers that are found having technical issues will be automatically recorded in
the “technical issues” tab.
6. The list of failed customers will be recorded in the “failed customers list” tab. The list of
customers who had products repossessed will be recorded in the “repossessed customers
list” tab.
7. IVA does a simple “copy” of the information provided by the ESCO on “Repossession” tab of
the Claim Form and “paste” them in the “Repossession list” tab of the Results Form to see the
number of customers whose products have been repossessed and the amount paid out in the
previous claim/s.
8. IVA does a simple “copy” of the information provided by the ESCO on “Technical issues” tab
of the Claim Form and “paste” them in the “List of technical issues fixed” tab of the Results
Form to ensure that the ESCO has addressed the technical issues of the customers identified
in the previous claim verification. After the specified period in the OM, IVA will call the
customers to confirm whether the technical issues have been resolved within the expected
timeline and the outcome of the verification will be recorded in the column “N” of the tab
namely “List of technical issues fixed” of the Results Form.
9. IVA checks the “summary” tab to ensure that the subsidy and incentive amount eligible for
the payment is calculated accurately. This is auto-calculated, however there might be some
errors if some scripts (formula) are deleted unknowingly.
10. IVA shares the final Results Form with the verification report to UECCC for approval and
subsidy disbursement.

Once the Results Form is finalized, IVA will update the customer status in the ESCO File, in another
Excel tool. The process of updating the ESCO File is presented below:

C. ESCO File/customer master database:

IVA maintains the customer master database of all the claims submitted by ESCOs to track the
outcomes of the verification of individual customers over time. The customer master database is
maintained in a separate Excel file called “ESCO File” and Results Form (for the company) through a
simple “copy” and “paste”. The customer master database is important mainly for two reasons a)
check if there are any valid duplications in payment and b) check the eligibility status for Disbursement
Condition 2 payments. The customer database of a particular claim will be updated regularly once the
verification of an ongoing claim is completed and approved.

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The following information is updated in the company file/customer master database:
• Customer information such as customer name, national ID and Product category
• Results of the verification such as pass, fail, inconsistencies, technical issues, repossession
• Claim number which includes all the previous claims submitted
• Disbursement Condition claimed for in the previous claims
• Customers who were appeared in the previous contract/sales receipt verification, phone
verification, and field verification

Frequency of updating the customer master database:

The above information is updated immediately after the verification of an ongoing claim is concluded
and the verification report is submitted to UECCC. IVA will update this customer information on a
separate Excel tool called “ESCO File”.

Treatment of the customer with technical issues in the customer master database:
The customers with technical issues are labeled “Technical Issues” in the ESCO file. However, this
status may be changed over time from “Technical Issues” to “Pass” if the technical issues are
addressed by the ESCO and verified by IVA or “Fail” if not resolved within the period specified in the
OM. The changing of the customer status will be done automatically (not a manual entry), with the
help of a script (formula) that has been developed to match the customers with the previous claims.
The pending technical issues will not be changed, thus the ESCO will not be eligible for payment even
if they resubmit those customers with pending technical issues.

Changing Customer Statuses:

The following customer statuses are eligible for changing over time:
• “Customers with technical issues”
• “Customers with inconsistencies”

How to change customer status in the master database?

Upon confirming by IVA that the technical issues have been resolved or the data that were
mismatching previously have been modified and pass the present desk check, the person in-charge
will update the customer master database. This is done automatically (by using a match function) in
the “ESCO File” under “Results” column and “remarks” column.

Example: The customer “XXX” has presented technical issue under Claim1_DC1. This customer will be
marked as “Customer with technical issues” in the master database. If the same customer has been
submitted in Claim2_DC1 and confirmed that the issue has been resolved. The IVA will keep one ID
under claim1_DC but change the status from “Customer with technical issues” to “Pass” and update
it in the “ESCO File” that the technical issue has been resolved and paid in C2_DC1.

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