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020318_Hurghada SECAP_FINAL

Component 5: The team

Component 5: The team will assess costs of the preferred scenario to help the Governorate (Municipality) making the appropriate choice with the best return on investment of converting these hotels and resort. Component 6: Institution capacity building is essential to prepare and oversee the implementation of hotels/resorts conversion plan to NG and SWH. This would involve cost estimate, feasibility studies, funding schemes. Component 7: Awareness-raising is vital to change the current mode of using non-clean fuel in Hotels and resorts to assist in the implementation of the plan to transform hotels and resorts. 4. Organisation and procedures Formal approval The development of converting hotels and resorts would require the following entities for issuing permits, approvals and follow up process: - Ministry of Investment and International Cooperation (MoIIC) to coordinate loans and funding from IFCs, - Ministry of Local Development (MoLD), - MoERE – NREA for SWH installation on hotels/resorts, - Ministry of Petroleum represented by EGAS and City Gas company in the city of Hurghada, - Ministry of Tourism (MoTrm) represented by the GTU - Ministry of Environment (MoEnv) to assess and conduct the Environmental and Social Impact Assessments (ESIAs) for the impact of converting the hotels/ resort with renewable energy such as SWH systems in accordance of the Law No. 4/1994 and its amendments, the Law on Protection of the Environment, and its executive regulations, - The EIA Department of the Environmental Affairs Agency (EEAA) – MoEnv to conduct the screening of ESIAs, - Operation permit by MoHUUD – for buildings modification permit, - EGAS and City GAS approvals to supply of natural gas, - City Council represented by the Governor, - Municipality and Governorate – Governor’s approval. Staff allocated to implement and monitor action #3 • Governorate of the Red Sea and City of Hurghada, • City Council represented by the Governor, • MoPMRs (EGAS and City Gas Company), • MoERE and NREA, • MoTrm (GTU), and • MoTrm and MoEnv (EEAA). C. Staff training needs Governorate (Municipality) staff related to the issue of Sustainable Energy and Green Tourism will receive coaching and training on three subjects: • Strategic Management of Sustainable Energy issues, • Organisational solutions and technical questions related D. Role of Partners Stakeholders: - All stakeholders should be invited to specific workshop to design the strategic road map to start transferring Hotels and resorts from fossil fuels mainly diesel to natural gas. This could include hotel/resorts owners and managers. - Training is also needed to transfer the message of clean and green tourism to all parties involved, - The Governorate and City of Hurghada to coordinate the procedures approval with different related authorities in close contact with the 136

converting Hotels and resorts by natural gas development and integrate Solar water heating, and • Project management. A Strategic Sustainable Energy Unit (SSEU) to be developed and established to oversee the training of staff and all concerned issue and ensure the implementation of the plan actions of SECAP. Governorate such as: MoPMRs, MoERE and NREA, EEAA, MoTrm, including GTU and City Gas Company to ensure constant supply of natural gas to Hotels and Resorts, - All should be invited to specific to facilitate the action project to follow up the implementation upon funding, and - The GTU of MoTrm and EGAS through City Gas Co. to be involved to check on the installation procedures of the connections, implementation and test the safety of converted Hotel in the northern part of the city to operate by natural gas, and meters installation, and monitor the operation and re-license. 5. Summary of related Awareness Raising (AR) actions for Action ≠3 (Green Hotels & Resorts) A communication plan needs to be developed to highlight the benefits of a new strategic and comprehensive sustainable energy (energy efficiency) plan to brand the City of Hurghada as a clean and green city, including the use of natural gas instead diesel in hotels and resorts and for heat water. Also, an adequate awareness raising actions will be necessary to help Governorate promote the value of Green Hotel/resorts through greening these facilities as well as the benefit hotels owners and managers of such move. Awareness should also focus on the fact that Green tourism development doesn’t mean that energy will become abundant. On the contrary such awareness campaign should highlight that combining energy efficiency with the use of NG instead of non-clean energy and integrate SWH systems will make reduce GHG emissions and make air in the city less polluted. 6. Assumptions and risks - The key challenge will be the time there is a need to change the mind-set of some owners of hotels and resorts, - Organize a proper maintenance system in order to ensure adequate flow of hot water from the SWH systems, yields securing interesting enough Return on Investment (R.o.I.), - The medium to low price of diesel set by the Egyptian General Petroleum Authority - EGPA (MoPMRs) is a challenge, but this will change in 2018 with new planned energy tariffs. 7. Key success factors • The development of green hotels and resorts is an essential part of the Governorate of the Red Sea vision and strategy and will get the adequate political support. • Cost of a new energy tariff means that any savings will be of significant value and an incentive. • The action plan is divided in two stages to make the benefit of investments more visible. • The Governor’s vision and backing of connection of these hotels and resorts with the natural gas network instead of using diesel to help mitigate GHG emission is of a vital success factor, • Raised capacity of Governorate staff for implementation. 8. Cost estimates Awareness campaign and technical support to design plans: - Scoping study on hotels and resorts 20.000 € - Energy audits on a set of buildings 5.000 € 90.000 € 137

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