Nigeria - Develop a national policy on soot-free buses and a national strategy and implementation plan for CNG/electric bus deployment [NG-23-006]

by CCAC - 15 November, 2023

Overview

This project responds to the request by the Federal Ministry of Environment of Nigeria to develop a national policy on soot-free buses and a national strategy and implementation plan for the deployment of compressed natural gas (CNG)/electric powered buses. This project will also support Nigeria’s shift to low-sulfur fuels and the implementation of EURO IV vehicle standard adopted by the Economic Community of West African States (ECOWAS) in 2020.

Reducing short-lived climate pollutant (SLCP) emissions from transportation is a priority for Nigeria. The country is currently planning its CNG/electric programme and has the opportunity to adopt a strategy for deploying CNG/electric buses given the removal of the state fuel subsidy by the President in May 2023. CNG is recognized as an important transition fuel that will also provide substantial public health and climate change benefits.

This project will support implementation of the mitigation measures endorsed in Nigeria’s National Action Plan to Reduce Short-Lived Climate Pollutants. The plan aims to reduce 75 per cent of PM2.5 emissions by 2030. The 22 priority mitigation measures identified include the regulation and enforcement of vehicle emission standards and targeted adoption of CNG buses. The plan also endorses recommendations for the conversion of 25 per cent of all buses to CNG by 2030.

The strategy and implementation plan this project will develop should build on lessons learned from the city of Lagos where two electric buses have been piloted.

This work should also support harmonization with ECOWAS vehicle standards to regulate cleaner fuels and vehicles, ongoing CCAC projects on soot-free bus technologies in the region, and proposed solutions that align with targets in Nigeria’s National SLCP Action Plan and NDC.

More information on Nigeria's involvement in the CCAC is available on their Partner Page

Who to involve

This project will require close collaboration and engagement with:

  • The Federal Ministry of Transportation that is responsible for framing the policies related to transportation systems, especially public transport strategies in Nigeria
  • The Federal Ministry of Environment that supports the framework for integrated climate and clean air action plans and has initiated deliberations on clean fuels and CNG
  • The Federal Ministry of Petroleum Resources that directs petroleum resources and its activities in Nigeria

The Ministry of Works and Housing as primarily responsible for formulating and implementing the policies, programmes and projects of the Federal Government of Nigeria (FGN) with respect to Road Transport. 

Relevant policies, strategies, projects, or programmes include: 

Expected results

Applicants are encouraged to propose additional outputs as needed to ensure the expected project outcomes are achieved. Applicants can determine the scope of outputs if not specified. The project is expected to deliver at a minimum:

1. The Government of Nigeria endorses a national policy on soot-free bus technologies and EURO IV vehicle emissions standards by the end of the project or soon after.

Indicator: Number of laws, regulations, or other policy mechanisms with SLCP targets or mitigation measures formally adopted, endorsed, and/or implemented.

Output 1.1: Impact assessment on transition to soot free bus technologies and standards, including CNG and electric buses.

Output 1.2: Policy assessment including options for bus standards, infrastructural challenges, existing institutional frameworks, potential fiscal incentives, and financing models to encourage wide adoption of soot-free buses including CNG and electric buses. 

Output 1.3: Draft policy on soot free buses with measures that can be included in national and local development plans as well as in city planning and reporting.  

2. The Federal Government integrates priority SLCP mitigation measures, targets, and/or co-benefits assessments related to the transport sector in the revised NDC and implementation plan by 2025. 

Indicator: Number of NDCs targeting SLCPs. 

Output 2.1: Recommendations for the inclusion of SLCP reduction priorities, targets, and co-benefits in Nigeria's 2025 NDC.

3. The Federal Government of Nigeria endorses/adopts regulations aligned with the ECOWAS directive for EURO IV vehicle standards by the end of the project or soon after.

Indicator: Number of laws, regulations, or other policy mechanisms with SLCP targets or mitigation measures formally adopted, endorsed, and/or implemented.

Output 3.1: Recommended regulatory options for the introduction of cleaner fuels and vehicles adopted by the ECOWAS Commission

4. The Federal Government endorses a national strategy and implementation plan for deploying CNG/electric buses by the end of the project or soon after.

Indicator: Number of action plans, roadmaps, strategies, or other future plans with SLCP targets or mitigation measures formally adopted, endorsed and/or implemented.

Output 4.1: Strategy for introduction of CNG and electric buses nation-wide including:

  • Data collection and analysis from the e-bus pilots in Lagos, and from other cities to be defined in consultation with the government to inform policy design and implementation
  • Recommendations for nation-wide expansion including financing options
  • Analysis of available bus standards, the adequacy of infrastructure, energy production and sourcing, technology availability and transfer, flexible financing options, operational and regulatory considerations, institutional frameworks, fiscal incentives and financing model, existing policies, strategies, and programmes that would support a nation-wide CNG/electric programme

Output 4.1: An implementation plan for implementing the strategy

Output 4.2: National level dissemination and endorsement of the strategy and implementation plan

Application process

Eligibility requirements

To be eligible for consideration, project proposals must meet the following requirements:

  • Complete and submitted before the deadline
  • Submitted by a non-governmental organization (NGO), intergovernmental organization (IGO), or other not-for-profit entity. Governments are not eligible to apply directly for funding in this call.
  • Requested funding is within the estimated budget amount, or includes a clear justification for additional expenses 
  • Project duration is less than 24 months
  • Budget criteria are met and spending caps on expenses are respected. 

Please note that entities will be required to provide the last three (3) audited financial statements to be eligible for CCAC funding. These statements may be provided along with the application for funding or at the request of the CCAC Secretariat during the evaluation process.

For-profit entities may only participate in the project as stakeholders, co-funders, or end users. Applicants are encouraged to include for-profit entities in the development of the project proposal and/or during project implementation if their ownership of the proposed solution is key to the project’s success.  

How to apply

Eligible applicants are invited to apply using the Application Form and Excel Budget Form. Specific instructions on completing these forms are available in both documents. 

Applicants may choose to follow the cost range proposed above OR propose a different budget supported by a clear justification. However, applicants should note that cost efficiency will play a significant role in the selection process.

The completed Application Form and Excel Budget Form should be submitted to secretariat [at] ccacoalition.org (secretariat[at]ccacoalition[dot]org).

Evaluation criteria

Proposals will be evaluated against the following criteria:

  • Presents a clear plan to achieve the required outcomes during the lifetime of the project or soon after
  • Includes a plan or activities to enable the scaling up of, replication of, or sustained use of project results over time
  • Sets out a clear approach for enabling or contributing to SLCP emissions reductions and resulting co-benefits
  • Involves relevant stakeholders 
  • Approach is grounded in a strong understanding of relevant risks
  • Complements other relevant initiatives, funding mechanisms, and existing policy processes
  • Applicant demonstrates necessary capacity and experience to perform the work
  • A realistic, cost-effective, and clearly justified budget and approach is proposed
  • Project meets the minimum requirements for the OECD DAC gender equality marker Score 1

Selection process

  • A preliminary review of proposals submitted by the deadline will be conducted by members of the CCAC Secretariat, Funding Task Team, and Board, in consultation with relevant CCAC Partners.  
  • Shortlisted applicants will be invited to present their proposals in further detail and to respond to follow-up questions about their application.
  • Successful applicants will be invited to develop a Project Implementation Plan and Detailed Budget in consultation with the CCAC Secretariat and relevant CCAC Partners.

The selection process may take up to 6 months after the closing date of the call for proposals. Due to the high volume of requests, the CCAC will not respond to requests for updates or feedback during this time.

Note: Due diligence 

In addition to eligibility criteria outlined above, qualified UNEP/CCAC implementers* must meet the following criteria: 

  • Have adequate financial resources to perform the contract and meet all existing commitments (financial health)
  • Be able to provide proof of registration, proof of not-for-profit status and audited financial statements for the last three completed fiscal years 
  • Have a record of satisfactory performance with UNEP/CCAC, when applicable; and  - Not have been suspended or debarred by UNEP/CCAC or another UN agency. UNEP/CCAC also considers entities included in the Security Council Resolution Lists to be ineligible for UNEP/CCAC agreements.

* (inter)governmental entities/ United Nations are exempt from this requirement

Procurement

As a general rule, Implementation Agreements allow for incidental procurement only, and as such, total costs in the following categories must fall below a certain threshold*:

  • Contractual Services
  • Equipment, Vehicles and Furniture
  • Operating and other Direct costs
  • Supplies, Commodities and Materials

*Agreements of $200,000 and below: up to $20,000 or 15% of total budget, whichever is lower.

*Agreements of above $200,000: up to $40,000 or 15%. * United Nations agencies are exempt from this requirement.

Highlights

Opening: 
Closing: 
Estimated project cost
US$ 240,000 - US$ 300,000

Beneficiary