1. 1 VTCL Methodology & application Dr. Tuan A. Nguyen (IED) & Eric Kamphuis (ETC) VTCL final meeting in Phnom Penh, 16 Oct. 2006 Supported by the European Commission through the EC – ASEAN Energy Facility

2. 2 First thing first - Logical framework Intervention logic Verifiable indicators of achievements Sources & means of verification Assump. Overall objective Specific objectives Expected results Activities

3. 3 Beneficiaries Stakeholders and beneficiaries:  Rural Electricity Entrepreneurs (REE) in Cambodia  Provincial Energy Service Companies (PESCO) in Laos  Rural energy consumers in both countries  Training institutions in both countries (ITC and NUoL)

4. 4 Project Strategy Basic Aim:  To improve the efficiency, safety and sustainability of private rural energy providers Key Barrier:  Lack of technical knowledge, skills and procedures with respect to designing, operating and maintaining a rural energy system  Lack of theory, skills and experience in managing a business Solution:  Develop an intensive training course that is customised for the particular needs and context of each country, and accepted by all relevant stakeholders  Establish the course at a reputable training institution in each country so that over time it becomes a normal part of any rural energy business’ training requirements.

5. 5 Project methodology 1. Context analysis 2. Rationale goals 3. Curriculum 4. Guideline (plan) 5. Learning outcome 6. Application (results) Goal setting and direction Curriculum development Instructional planning Instruction Development Evaluation plan

6. 6 1. Contexts study  The context : Ru.E in both countries  Problem : Low skill & knowledge  The subjects : business, O&M  The target group : REE & PESCO  Institutions : available but need capacity building  Competencies : from survey, discussions

7. 7 1. Make a diagram of relations Objective: Better energy services offered Better skills for management Better skills for O & M More efficient resources use Better use of services Financial skills Business skills O&M skills Action: improve skills improvement consequence causes what should be done?

8. 8 2. Develop the rationale  Based on the diagram: Overall objective of course Educational goal of the course formulated This means: to learn the target group better to run their companies This means also: description of knowledge and skills the target group minimally should learn  Write the rationale – basis for development of curriculum process

9. 9 2. Elements of the rationale  Description of: The context The problem The target group The educational goal The subject matter  Rationale expresses value of elements to problem / target group

10. 10 3. Curriculum – SMART & ILO  SMART criteria Specific – it is clear what needs to be learned Measurable – the learning objectives can be evaluated Attainable – the trainees have background & qualities to learn Realistic – will the skill be needed later on Time bound – within a specific period  Intended Learning Outcomes (ILO) What should be known and what should be mastered

11. 11 3. Curriculum – Task analyses Close collaboration with ESCO and other experts Identify managerial & technical tasks Group tasks into identified functions in ESCO Which task can be performed, which is not? For the tasks that can not performed  which skills & knowledge are needed  written as SMART ILO

12. 12 3. Task analyses approach  The participants should have a large say in the curriculum development  Through task analyses, roles and processes become clearer  Training alone is not sufficient. Organizing yourself better as a company is equally important

13. 13 4. Write guideline plan  Determine number of Units and length within Module  Cluster ILOs in Units along the dimensions learning-related and utilization related  Organise Units

14. 14 4. VTCL guideline – example on unit outline Unit outline Unit titlePractical business management for small energy enterprises Unit codeA1.1 Duration13 hours in total Unit descriptionTopics include: utility rate analysis, simple payback analysis, compound interest, time value of money, return on investment, life cycle cost analysis, revenue, cost estimating, profits, financing options and effects, and simulation tools and associated software. Tariff structure and calculation, Billing system and customer management Target groupREE’s Managers and/or Supervisors WhereClassroom EvaluationWritten multiple choice test PrerequisitesBasic economic knowledge, some professional experiences with responsibility. Unit competencies / outcomes Upon completion of this unit, trainee can :  calculate the time value of money  determine when it is feasible to conduct a life cycle cost analysis  analyze and compare energy investments options  formulate financing plans based on simplified cash flow analyses  determine/estimate capital costs, operating costs, and maintenance costs, revenue and profits  manage effectively its customers and billing process  propose a just tariff which makes profit

15. 15 4. VTCL guideline – example on unit content Unit contentDuration* Unit bodyTCEP Session 1Economics for small energy enterprises6411 Introduction to energy management principles: the components of an effective energy management program 0.5 Electricity costs, Fixed cost, variable cost, operation cost, capital cost, O&M cost, fuel cost, customer service costs, direct cost, indirect cost, Cost Estimating, Residual Costs, 21.50.5 Economics of energy projects: annual revenue, NPV, profitable index, IRR, pay back period, subsidy and incentive measures from government, economic viability. 2.0 Cash flows, revenue, profits0.5 Handout application and formula ready to applied, Practical exercises11 Session 2Pricing and tariff321 Session 3Customer management2.510.51 ClosureAssessment1.50.51.0 Total hours for Unit A1.1 is1383.52

16. 16 5. Application  Use relevant teaching methods (teaching basic theory, practice exercises –computer based management model, on-site practical activities)  Evaluate analysis you did in “setting a direction”  Monitoring course participants and teachers for feedback  Use feedback to improve the instructional plan

17. 17 Evaluate educational results  Determination of examination method (theory and practice)  Examination of course participants  Certification of course participants  Integration certification in main educational system (accreditation)

18. 18 Evaluate educational results  Are learning goals met? Yes  Were all ILOs relevant? Not all  Is educational goal met? Yes  Has the process (project) been successful? Yes  What can be improved? Some  What is useful in the future? All  Replicable?Yes

19. 19 Closing remarks  Professional competencies of the trainers should get further attention  Experiences of the ToT & pilot training are very valuable know-how  Not clear yet about “sustainability” for commercial courses?  Integration into institution’s curriculum should be clarified further  Not all opportunities have been mapped out, particularly for parties outside the project