ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC 25 - 27 September 2013, Meeting Room-G, Bangkok Regional Training Workshop on Widening Access to Energy Services through Pro-Poor Public-Private Partnerships Tentative Programme Note: In every session, the brief presentations and / or videos are expected to set the context. As a follow-up, an interactive discussion is encouraged. 25 September Energy and Partnerships 0830 – 0900 Workshop Registration 0900 – 1000 Session 1: Project Overview and Status Session Moderator: Mr. Kohji Iwakami, ESCAP The Opening Session provides an overview of the program, status of pilot projects in Lao P.D.R. and Nepal and, through national team introductions, solicits expectations from the participants and introduces resource persons. Opening Statement Mr. Donovan Storey Officer-in-Charge, Environment and Development Division Regional Project Overview and Status Mr. Hongpeng Liu Chief, Energy Security and Water Resources Section, Environment and Development Division National Project Status & Team Introduction Mr. Anousak Phongsavath Deputy Director-General and Head of the Rural Electrification Fund Secretariat, Lao P.D.R. National Project Status & Team Introduction: Mr. Ram Prasad Dhital Assistant Director, Alternative Energy Promotion Center, Nepal A Round of Introductions by Resource Persons, UN Agencies and Secretariat 1000 – 1030 Coffee Break 1030 – 1200 Session 2: Universal Access to Modern Energy Services Session Moderator: Mr. Kohji Iwakami, ESCAP The second session highlights the ongoing international efforts towards universal access to modern energy services (including SE4ALL), emphasizes the linkages between energy and development, and discusses energy needs for households, for rural livelihoods and for community services. Energy and Development, a short video (prepared for APEF 2013) and main outcomes from APEF 2013 in Vladivostok Mr. Sergey Tulinov Economic Affairs Officer, Environment and Development Division, ESCAP Achieving Sustainable Energy for All in the Asia-Pacific 2013, a short video and key messages: Mr. Thiyagarajan Velumail Regional Advisor, United Nations Development Programme Poor People’s Energy Outlook 2011-2013: Mr. Vishwa Amatya Head, Programme Energy, Practical Action Asia Regional Office Suggested Discussion Areas: 1. What is the current situation and what policy options exist towards universal access to modern energy services using locally available renewable energy resources? 2. What is the role of energy in broader development agenda? Is there a potential to integrate energy policies with sectors such as tourism, rural development, agriculture or, health? 3. What policies and partnerships are needed and; what is the role of private sector - in moving towards universal access to modern energy services? 1200 – 1300 Lunch 1300 – 1430 Session 3: Public-Private Renewable Energy Partnerships Session Moderator: Mr. Hongpeng Liu, ESCAP This session highlights the concept of risk and how traditional public-private partnerships and special purpose vehicles have evolved to reduce perceived risk and encourage private investments in the infrastructure sector. The session also explores whether some of these experiences may be transferred to smaller rural projects and the role of other stakeholders such as NGOs and communities themselves. To end with we also learn about concepts of project finance and financial closure. Partnerships and PPPs: A Primer Ms. Jenny Yamamoto Economic Affairs Officer, Transport Division, ESCAP Role of Non-Profit Organizations in Rural Renewable Energy Partnerships Mr. Sreyamsa Bairiganjan Head, Enterprise Engagement and Research, New Ventures India PPPs for Rural Energy Access Mr. Debajit Palit Associate Director, Social Transformation Division, The Energy and Resources Institute (TERI), India Project Finance and Financial Closure: An Overview Mr. Sanjeev Tamhane Programme Officer, United Nations Environment Programme (UNEP) Suggested Discussion Areas: 1. What are the current policies and practices in encouraging private sector participation in energy sector projects? 2. What are the key barriers or perceived risks that prohibit rural renewable energy investments by (say) a) energy sector companies or b) other investors such as tourist resort owners, telecom companies, etc.? 3. What policies and enabling environment is needed to encourage partnerships for rural renewable energy initiatives? 1430 - 1500 Coffee break 1500 – 1700 Session 4: Discussion on National Outputs [National Concept & Feasibility] Session Moderator: Mr. Xia Zuzhang, Energy for All Partnership Secretariat This session starts with a plenary to share the concept of pro-poor public-private partnership followed by 2 break-outs for two national teams (facilitated by resource persons) and then come back to a plenary to present and discuss the outcomes] Pro-Poor Public-Private Partnerships (5Ps): Introduction Suggested Discussion Areas [for break-outs]: 1. What is the national policy, current practices and, institutional context for a) rural energy sector, b) rural development and c) private sector participation? 2. Who are the key stakeholders [government, NGOs, CBOs, banks, energy companies, communities, others] to be consulted for such an initiative? 3. What are the legal and financial options to establish a [sustainable and replicable] pilot project that helps to reduce risk for various stakeholders in rural energy sector? – Discuss national concept for 5P SPV [highlighting deviation from current practices] 4. What is the national strategy to select appropriate sites for pilot projects? Identify factors [with weight-ages and site rankings] and consultation process 5. What is the national strategy to assess selected sites for a possible pilot project? Identify factors [with weight-ages and site rankings] and consultation process National Team Presentation: Lao PDR Mr. Thammanoune Nakavith Acting Director, Department of Energy Management, Ministry of Energy and Mines, Lao PDR National Team Presentation: Nepal Mr. Ram P Dhital Assistant Director, Alternative Energy Promotion Center, Nepal 26 September Pro-Poor Business Plans 0900 – 1000 Session 5: Social Business Ventures Session Moderator: Mr. Xia Zuzhang, Energy for All Partnership Secretariat After first days’ emphasis on private sector participation in rural areas, this session is to introduce a perspective for a discussion on social businesses through an emphasis on community participation in rural investments. The session also provides an overview of some business and revenue models for decentralized rural energy enterprises. Social Businesses: An IBEKA Perspective Mr. Iskandar Kuntoadji Board of Trustee, IBEKA, Indonesia Business and Revenue (Pricing) Models for Decentralized Rural Renewable Energy Enterprises Mr. Sreyamsa Bairiganjan Head, Enterprise Engagement and Research, New Ventures India Suggested Discussion Areas: 1. What is the role of energy in community development? 2. How can a participatory approach help identify sustainable rural energy sector investments? 1000 – 1030 Coffee Break 1030 – 1200 Session 6: Pro-Poor Business Cases Session Moderator: Mr. Vishwa Amatya, Practical Action Asia Regional Office After a theoretical treatment on the topic, this session discusses some real-life pro-poor business cases contributed by practitioners from around the region. Partnership experiences from Lighting a Billion Lives programme Mr. Debajit Palit Associate Director, Social Transformation Division, The Energy and Resources Institute (TERI), India Partnership experiences from Grameen Shakti Mr. Mohammad Shahidul Islam Consultant, Grameen Shakti, Grameen Bank, Bangladesh Partnership experiences from Bio-Gassifier Plant, Sri Lanka Mr. Jatin Kapoor Regional Head of Southeast Asia, Emergent Ventures International (EVI) Suggested Discussion Areas: 1. What are some of the factors that facilitate rural energy sector partnerships? 2. What are the key challenges in the establishment and sustenance of partnerships? 3. What is the role of federal and local governments to provide an enabling environment to promote partnerships? 1200 – 1300 Lunch 1300 – 1430 Session 7: Financing Renewable Energy Projects Session Moderator: Mr. Sanjeev Tamhane, UNEP This session is a prelude to a discussion on drafting business plans to understand national experiences of financial institutions of lending to small-and-medium (SME) rural initiatives, to understand international experiences of financing energy initiatives through value chain perspectives and, explore alternate financing modes [such as micro-finance and carbon markets]. Case of Project Finance for Renewable Energy Sector, Nepal Mr. Dinesh Dulal Relationship Manager, Renewable Energy and Microfinance Department, Clean Energy Development Bank, Nepal Energy Value Chains and Finance: Experiences from CleanStart Mr. Vincent Wierda Programme Manager, CleanStart Programme, UNCDF Case of Carbon Finance and Outlook for Small Scale Projects in LDCs Mr. Sambit Nayak Manager, Implementation, Southeast Asia, Emergent Ventures International Suggested Discussion Areas: 1. What kind of financing mechanisms and institutions should be in place to reduce risk for the private sector? How can banks and financial institutions eventually extend lending support to rural renewable energy initiatives? 2. How value-chain financing / micro-financing and carbon finance could be leveraged to help strengthen business plans before approaching a bank? 3. What roles can governments [such as guarantees or interest-subsidies] and other stakeholders [such as buy-back guarantees from equipment suppliers] play to ease requirements and ease private-sector’s access to finance? 1430 - 1500 Coffee break 1500 – 1700 Session 8: Discussion on National Outputs [Pro-Poor Business Plans] Session Moderator: Mr. Michael Williamson, APCTT This session introduces the ideas of ‘people-first’ [socio-economic assessment] and ‘profits-follow-people’ [market-assessment] followed by 2 break-outs for two national teams (facilitated by resource persons) and then come back to a plenary to present and discuss the outcomes]. Suggested Discussion Areas [for break-outs]: 1. What are the socio-economic challenges and how does the proposed business solution address these while generating a positive revenue stream? 2. What is the partnership model – a) Role of stakeholders, b) Capitalization and ownership structure] and c) registration forms for 5P SPV? 3. Discuss the implementation strategy – process for establishing agreements, bill of quantities, licenses and permits, schedule and risks 4. What is the financing model – a) Debt-to-equity ratio, b) Valuation of community’s contribution as equity, c) Discounted cash-flow analysis of 5P SPV [NPV or Discounted Payback Period] 5. What are some key comments from a lenders’ perspective to strengthen such a pro-poor business plan? [Can national banks comment based on current lending practices?] National Team Presentation: Lao P.D.R. Mr. Charlie Soo Teck Shin Managing Director, Tech-System Engineering Co., Ltd., Lao PDR National Team Presentation: Nepal Mr. Bivek Baral Associate Professor, Department of Mechanical Engineering, Kathmandu University, and Executive Director for Ananta Gassifer Pvt. Ltd., Nepal 27 September From Pilot to Policy 0900 – 1000 Session 9: Integrating Rural Development and Energy Initiatives Session Moderator: Mr. Hongpeng Liu, ESCAP This session provides an overview of key challenges in national pilot projects and how the stakeholder consultations have helped to address some of these followed by a summary of Days 1 and 2. This session also discusses the on-going supervision mission activities by IFAD before concluding with a brief discussion on integrating rural development and energy initiatives and, value-chain financing for agriculture. Welcome Note Key National Challenges & Summary of Days 1 and 2 Mr. Anousak Phongsavath [Day 1] Deputy Director-General and Head of the Rural Electrification Fund Secretariat, Lao P.D.R. Mr. Surya Kumar Sapkota [Day 2] Assistant Director, Alternative Energy Promotion Center, Nepal IFAD’s Supervision Mission: An Overview Mr. Ganesh Thapa Director, International Fund for Agricultural Development, Italy Integrating Rural Development and Energy Initiatives: IFAD’s Perspectives Mr. Hari Upadhyay Project Evaluation Specialist, International Fund for Agricultural Development, Nepal Value-Chain Finance in Agriculture Mr. Marlowe Aquino Project Manager, Asia-Pacific Rural and Agricultural Credit (APRACA), Bangkok 1000 – 1030 Coffee Break & Photo Session 1030 – 1200 Session 10: Innovations in Business Planning Session Moderator: Mr. Xia Zuzhang, Energy for All Partnership Secretariat Session 10 focuses on the role of innovation to strengthen business plans. It considers emphasizing income generating opportunities that enhances ability-topay in rural areas and explores ways to scale-up pilot projects from a grant-based to equity-based sustenance approach. Finally, it encourages a wide-range of investors active in rural areas such as telecom infrastructure companies and learns from the World Bank’s ABC business model and its Telecom Energy Initiative. Scaling-up Rural Initiatives: Financing and Delivery Models Mr. Debajit Palit Associate Director, Social Transformation Division, The Energy and Resources Institute (TERI), India Role of Productive Use of Energy Services in Pro-Poor Business Plans Ms. Pooja Sharma Productive Use Officer, Energising Development (EnDev), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) Nepal Telecom Tower Business: Current Practices for Procuring Power Mr. Milan Raj Ranjitkar Engineer, Nepal Telecom ABC Model: Telecom Energy Initiative [Video Link] Ms. Monali Ranade Senior Environmental Specialist, Climate Change Practice, World Bank Institute, USA Suggested Discussion Areas: 1. Would productive-end-use [economic / income generating] enhance integration of energy in broader development agenda - From a productive-end-use perspective, is there a greater potential to integrate energy policies with sectors such as tourism, telecom, rural development, agriculture or, health? 2. How can involving mainstream infrastructure companies [such as telecom] help to reduce the risk in rural energy initiatives? 3. What are some of the on-going rural development programs or initiatives that promote productive use of modern energy services and / or promote partnerships with mainstream infrastructure companies? 1200 – 1300 Lunch 1300 – 1430 Session 11: Discussion on National Outputs [Policy Support] Session Moderator: Mr. Kohji Iwakami, ESCAP A brief plenary introduces the objective of this session, followed by 2 break-outs for two national teams (facilitated by resource persons) to assess the national policy formulation process, identify relevant policies that may be reviewed from a pro-poor public-private partnership perspective and discuss the expectations from a pilot project to provide necessary inputs towards appropriate policy revision / formulation. Groups then come back to a plenary to present and discuss the outcomes]. Suggested Discussion Areas [for break-outs]: 1. What is the national policy, current practices and, institutional context for a) rural energy sector, b) rural development and c) private sector participation? 2. What policy provisions support social businesses [5P SPVs] such as in the on-going pilot project for rural energy initiatives and what additional needs to be done? 3. What is the process to influence and affect these changes? How can the 5P project help towards this? National Team Presentation: Lao P.D.R. Mr. Khamso Kouphokham Deputy Director General, Department of Energy Policy and Planning, Ministry of Energy and Mines, Lao PDR National Team Presentation: Nepal Mr. Surya Kumar Sapkota Assistant Director, Alternative Energy Promotion Center, Nepal 1430 - 1500 Coffee break 1500 - 1700 Session 12: Next Steps in National Projects & Workshop Closure Session Moderator: Mr. Hongpeng Liu, ESCAP This last session is meant to solicit participant’s views about the workshop, review planning of national activities and facilitate closing comments. 1700 – 1800 Reception hosted by ESCAP