Pro-Poor Public-Private Partnerships for Rural Energy Services National Concept
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Pro-Poor Public-Private Partnerships for Rural Energy Services National Concept
Pro-Poor Public-Private Partnerships for Rural Energy Services National Concept REGIONAL TRAINING WORKSHOP ON WIDENING ACCESS TO ENERGY SERVICES THROUGH PRO-POOR PUBLIC-PRIVATE PARTNERSHIPS 25-27 SEPTEMBER 2013, UNCC, BANGKOK, THAILAND NEPAL TEAM AND RESOURCE PERSONS GENERAL POLICIES AND GAPS EXISTING POLICIES • Rural Energy Policy 2006 • Subsidy policy and delivery mechanism • Guidelines • Technical Standards • Pre qualification: POLICY GAPS • Renewable energy policy • Integrated energy plan for efficient energy allocation • Exit strategy • Provision for feed in tariff and net meeting • Pricing issues KEY CHALLENGES FOR 5 PS AND MITIGATION MEASURE Challenges: • Affordability • Operation and Maintenance • Low plant factor • Social Conflict Management Mitigation Strategy: • Stratified tariff • Capacity development • Productive end uses such as water pump and rice mills • Saving and Credit; Forest User Group ROLES AND RESPONSIBILITIES OF THEAND KEYROLES STAKEHOLDERS INSTITUTIONAL LANDSCAPE • • • MoSTE/AEPC Policy Planning Resource Mobilization Funding Monitoring Create Enabling Environ ment Bank (CEDB) •Loan Financer Project Manage ment Private Sector (Ananta Gasifier and another company) • Raksirang and Service Delivery • Baidi Communities - Survey/Design •Management and - Fabrication Ownership - Installation - After Sales and DDC/DEES/Us (Makwanpur operational and Tanahun) management • Coordination (Line - Ownership Agencies/Programs/Priv ate sector and Facilitation stakeholders) and RES Tanahun (NGO) • Local Fund Mobilization coordinatio - Community Mobilization (DEF) n - Awareness on adoption • Information - Demand generation Dissemination • Monitoring Demand Generati on Building bridges between users and PSOs, DDC 4 BUSINESS AS USUAL AND RISK SHARING MECHANISM UNDER 5 P •AEPC plans to implement two pilot project and grants are reduced to 50%. •Private sectors willing to invest risk capital •Subsidy/grant support shall be equitably distributed among various stakeholders MODEL OF PARTNERSHIP Capitalization and Ownership Capitalization Share Ownership Share Fig: Capitalization Structure Bank , 15% Private Sector, 15% Grant and local govt 50% Bank (Loan) 15% Private sector 51% Private Sector 15% 29% Community Grant AEPC/ESCAP 20% Community Local Govt (Public) 20% 50% Communi ty, 20% Local Govt. (Public)20 % Private sector, 51% Community , 29% Fig: Corresponding Ownership Structure SPV Structure Private Sector Registration in Company registrar office SPV Cooperative DDC/VDC Features of SPV • • • Legal entity Shall have executive board with representatives from all owners Responsible for Operation and Maintenance of Project Prposed Project Sites Criteria Raksirang Village Development Committee (VDC), Makawanpur- IFAD Leasehold Forestry Prog Raigaun VDC, Makawanpur Ratnanagar Municipality, Chitwan Mahadevsthan VDC, Dhading Bhirkot VDC, Tanahun Baidi VDC, Tanahun Remoteness No of beneficiaries Productive use Community willingness GESI Consideration Enterpreneurship Potentiality Environmental and Financial issues Linkages with other AEPC and IFAD Programs Weigh tage (%) 20 15 10 10 20 10 5 10 Nepal Project Status Completed Activities • National Concept Note (Inception Report) • 5P implementation plan national workshop conducted • Site visits to identify potential project location (Makawanpur, Tanahun, Dhading and Chitwan Districts) • Preparation of feasibility study report based on site visits • Identification of capacity requirements and preparation of capacity requirement report • Raksirang Village Development Committee (VDC) selected as one of the villages for project implementation Nepal: Project Status Ongoing Activities • Recently DDC Tanahun recommended Baidi VDC as a major potential site for project implementation • Consultation with Nepal telecom for business collaboration on telecommunication tower in Baidi which is nonfunctional because of lack of electricity • Stakeholder’s meeting to finalize one of the sites from Bhirkot VDC and Baidi VDC of Tanahun district for project implementation • Development of business plan for Raksirang village of Makawanpur district • Development of business model scenarios for Bhirkot and Baidi VDC of Tanahun district Nepal Project Status Planned Activities • • • • Formalize all identified sites for implementation Formal agreement with Private Sector Establish SPV Project implementation