IEG and DAC Network
Private Sector Evaluations Workshop
Evaluation Support to Private Sector Development
18 June 2013 • OECD Conference Center Paris
Lessons Drawing from
Evaluations Relating to PPPs
Lauren Hauck
Senior Evaluations Specialist
Independent Evaluation Department
Asian Development Bank
The views expressed here are those of the author and do not
necessarily reflect the views or policies of the Asian Development
Bank or its Board of Governors or the governments they represent.
Successful PPPs Require
 Situation Analysis
 Public and Private Sector Engagement
 Clearly Documented Agreements
SUCCESS is about the result for the
intended project beneficiaries
Case Study: (Cambodia) Power
Transmission Lines Co., Ltd. (CPTL)
Photo credit: L. Hauck 2013
Situation Analysis: 2006
 18% of total households in Cambodia have




access to electricity
95% of electric power is from diesel power
plant, isolated systems, not interconnected
Electricity prices are highest in the region
Power losses average 32% in rural areas
GOAL: start construction of the skeleton
transmission system and finally to expand
this system to cover the whole country with
a sustainable supply at lower prices and
reduced rate of losses
Source: EAC, Report on Power Sector of the Kingdom of Cambodia For The Year 2006, Phnom
Penh, July 2007
Situation Analysis: 2006
Key Power Sector Agencies in Cambodia
 MIME: Ministry of Industry Mines and Energy
(est. 1992)
 EDC: Electricité du Cambodge
(became autonomous state utility 1996)
 EAC: Electricity Authority of Cambodia (est.
2001 as independent sector regulator)
PPP ENVIRONMENT: Clearly defined roles and
goals, limited experience and resources, private
sector resources required to meet stated goals
Situation Analysis: 2006
 PPA signed by governments of Thailand and
Cambodia to supply Banteay Meanchey,
Battambang and Siem Reap through
115 kV transmission system
 EDC: Implementor for Cambodia
 CPTL: 115kV transmission line and
115/22kV sub-stations under construction
 CPTL is the first privately-owned power
transmission line in Cambodia
Source: EAC, Report on Power Sector For the Year 2006
Map of Line
Key Features
• 221 kilometer single circuit
115 kV transmission line
• 3x 115 kV/22 kV substations
1. Banteay Meanchey
2. Siem Reap
3. Battambang
• 1x 115 kV/22kV substation
Source: EAC, Report on Power Sector For The
Year 2006
The boundaries, colors, denominations, and any other information shown
on this map do not imply, on the part of the Asian Development Bank, any
judgment on the legal status of any territory, or any endorsement or
acceptance of such boundaries, colors, denominations, or information.
Public and Private Sector
 EAC: issues licenses, sets operating standards,
approves tariffs, offers support to licensees,
monitors and reports results
 EDC: generating, transmitting, distributing
electricity in compliance with license throughout
the Kingdom of Cambodia
 CPTL: build-own-operate-transfer transmission line
and substation to provide continuous power to
northwest provinces
 ALL THREE entities must perform for PPP to
1) connect power to the end user;
2) deliver tariff rates and quality;
3) deliver scheduled payments
Source: EAC Report on Power Sector For The Year 2006; EDC Annual Report 2010
Licensee Illustration
Source: EAC Website, updated by EAC for Year 2011. The boundaries, colors, denominations, and any other
information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on
the legal status of any territory, or any endorsement or acceptance of such boundaries, colors,
denominations, or information.
GOAL: Reduce Losses
Line Losses (%) Pre-Grid v Post Grid
45%
40%
35%
30%
25%
20%
15%
Series1
10%
Series2
5%
0%
Pursat
Banteay Meanchey
Battambang
Siem Reap
OFF GRID LICENSEES
Pursat
Banteay Meanchey
Battambang
Siem Reap
OTHER ON GRID LICENSEES
Banteay Meanchey
Battambang
Siem Reap
EDC
LICENSEE
Source: EAC, Report on Power Sector For The Year 2006; EAC, Report on Power Sector For
The Year 2011
GOAL: Reduce Prices
Prices: Pre-Grid v Post Grid (Riels per kWh)
3500
3000
2500
2000
1500
1000
2006
Series1
2011
Series2
500
0
Pursat
Banteay Meanchey
Battambang
Siem Reap
OFF GRID LICENSEES
Pursat
Banteay Meanchey
Battambang
Siem Reap
OTHER ON GRID LICENSEES
Banteay Meanchey
Battambang
Siem Reap
EDC
LICENSEE
- Prices shown for smallestvolume customers
- Approximately Rls4000/US$1
Source: EAC, Report on Power Sector For The Year 2006; EAC, Report on Power Sector
For The Year 2011
GOAL: Increase Coverage
Number of Customers by Province
35,000
30,000
25,000
20,000
15,000
10,000
5,000
Series1
0
Pursat
Banteay Meanchey
Battambang
Siem Reap
OFF GRID LICENSEES
Pursat
Banteay Meanchey
Battambang
Siem Reap
OTHER ON GRID LICENSEES
Banteay Meanchey
Battambang
Siem Reap
EDC
LICENSEE
Series2
Coverage also includes service levels: intermittent supply has
become nearly continuous while serving more customers
Source: EAC, Report On Power Sector For The Year 2006; EAC, Report On Power Sector For The
Year 2011
Above: Local Market; Below: ‘Old Market’
Photo Credit: L. Hauck, 2013
Interviews with End-Users
 General public quite well-informed about
the electricity supply. ‘It comes from
Thailand;’ and all were able to state the
rates paid per kWh
 ‘Electricity helps business to grow. [If it is]
hot, dark, nobody come[s] in.’
 The Grid ‘saves some money. It is cheaper
than fuel for generation. Also quieter.’
 Outages now are often scheduled; ‘they
announce it by radio’ and ‘usually only 1-4
hours at a time.’
Source: L Hauck, Site Visit interviews, March 2013
Lessons From PPP Case Study
• Situation and Risks Must be Understood by
•
•
•
•
•
15
all parties
Clear Rationale for PPP Needed
Project has to be Part of Long Term Sector
Development Plans
Clear Contracts and Deliverables Required
Appropriate Sharing of Tasks and Risks
Among Parties Required
Long-term commitment to the PPP is
Required
Conclusion
 SUCCESS includes capacity building for
the public sector, sustainable operations
for the public and private sector, and
quality services for the end-user
 PPPs require many elements to align
and the entire program of agencies and
activities must be considered
Thank You!
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