community based development and productive uses of power

Empower Consultants Ltd

Community Based Community Based Development and Development and

Productive Uses of PowerProductive Uses of PowerEmpower Consultants LimitedEmpower Consultants Limited

•Ann McLean Ann McLean [email protected]@mpwr.co.nz

•Tony Woods Tony Woods [email protected]@mpwr.co.nz

mailto:[email protected]

mailto:[email protected]


Who are we?Who are we?

• Small development consultancy, specialty community infrastructure and livelihoods

• Half engineers, half social scientists

• Development projects in China, India, Indonesia, Philippines, Taiwan, Vietnam, and in 12 other Pacific and Asian countries.


Content:Content:

• Experience

• Lessons learned

• Best practices


Context: APEC Regional EnergyContext: APEC Regional Energy200 m. in the region lack access to commercial

energy. Between 1990 and 2020:• Population growth from 2.5 to 3 billion • Annual average economic growth rate predicted to

be 3.5%• Energy demand growth of 2.5% per annum• The low cost oil age is finite• The waste absorptive capacity of the planet is

already exceededClean energy is not an option, but an imperative


Energy as an enabling inputEnergy as an enabling inputDirect:

• Industry

• Domestic use

• Commercial applications

Impacts are relatively easy to measure and value


Power as an enabling inputPower as an enabling inputIndirect:• Environmental • Health • Education• Communications• Information and entertainment• Security

More difficult to value, and often externalised


Vietnam - private electrificationVietnam - private electrification


VietnamVietnam


Unexpected bonuses - VietnamUnexpected bonuses - Vietnam


Outcomes - VietnamOutcomes - Vietnam


KiribatiKiribati


Kiribati – health centreKiribati – health centre


Nepal – cottage hospitalNepal – cottage hospital


Nepal – communicationsNepal – communications


Communications at the top of the Communications at the top of the worldworld


Maximising utilisationMaximising utilisation


Outcomes, five years laterOutcomes, five years later

• Where on average, a household has 1.7 sources of income, in Namche Bazaar, it has 3.6 sources of livelihood

• Household incomes are 5.7 times the national average

• The High School’s graduates are amongst the top in the country

• The Sherpa have used electricity for culture preservation, and made a CD of their songs


Nepal – World’s highest micro-Nepal – World’s highest micro-hydro?hydro?


Hydrocarbon and biomass Hydrocarbon and biomass displacementdisplacement


Nepal – safe water, environmental Nepal – safe water, environmental protection and income generationprotection and income generation


Afghanistan – water treatmentAfghanistan – water treatment


WMD in Pakistan, Durgai VillageWMD in Pakistan, Durgai Village


Pakistan – health postPakistan – health post


Productive uses - Productive uses - DurgaiDurgai• Electricity has enabled participation in numerous

government programmes (education, livestock)

• Both schools are electrified at community expense; the middle school is to be upgraded

• Health post is electrified; Community bought a vaccine refrigerator and a safe drinking water treatment system

• A second-hand computer has been set up in the power house; three more willl be used to introduce computer training

• CBO has set up a vehicle repair service, providing employment and saving expense


Planned productive uses - DurgaiPlanned productive uses - Durgai

• Water pumping and household water supply is funded and under construction

• The community has applied for a VHF telephone and will set up a PCO

• Vehicle repair services will be enhanced when a trainee has completed a welding course


Impacts of project-Impacts of project-community levelcommunity level

• Employment created for 3-4 people• Cost saving for whole valley population of 1500:

– Travel for medical treatment– Travel for vehicle repairs– Cost of high school education in Quetta– Cost of travel for NICs– Improved communications at low cost


Summary of activities and annualised benefits of electrification(projections based on first five months’ operation in Durgai Village, Zardaloo Valley, Sibi District, Balochistan)b

Sector Activity Income and savings impacts* Net Value Rs

Social and environmental

Household savingsDisplaced kerosene

Cash savings of 50% for electric lighting compared with using kerosene lamps.Value to environment in GHG abatement (p.a.)

79,05036,250

Water IrrigationPiped and pumped supply to households

Increased labour availability and productivity estimated to add 5% to income of each of the 25 households of about 10 members each at average Rs 70,000Women’s labour at average one hour per household per day; 24 hours or three person days per day for the village

87,500109,500

Livestock Chicken raising as women’s entrepreneur-ship activity

Incubation programme only possible because of reliable 24 hour power supply; net income from 4 incubators, assuming 80% survival and 10 cycles p.a.

400,000

Health VaccinationsSafe water supply

Time/income lost in travel to Quetta or Harnai for 100 vaccinations per annum for patient or accompanying adult. Health impacts not included.Savings of about one third in expenditure on anti diarrheic medication, stated by households and dispenser to be Rs 1000-2000 per household per month. Health impacts not included.

35,000135,000

Education Upgrading of middle school to High School

Travel savings in not sending youth to Quetta for high school education, about 300 students in this age cohort in the Valley, 3 return trips annually.Educational benefits not included.

135,000

Industry Vehicle repairs Income from 100 welding and tyre repairs p.a.Travel savings @ 1 day’s lost work per repairTravel costs @ 1 return bus fare per repair

2,50010,00015,000

Communications Installation of VHF telephone PCO in Valley

Assumed savings of 100 day trips to Quetta per annum, bus fare and lost productivity

25,000

Annual value of the project

US$18,574

One-off :Administrative

NIC Registration Savings in travel costs and lost productivity for the 50% of the population over 18, assuming 33% are in the EAP range

US$ 6,807


Lessons learned - whatLessons learned - what

• Power availability matters – 24/7• Power quality matters – reliable, 3-phase if

large productive loads are present or foreseeable, and use power meters!

• Equipment quality is paramount in remote areas

• Support is essential– Technical– Manangement


Lessons learned - whatLessons learned - what

• Mature technologies are available

• Rural people need a lot of power

• They have surprising ability and willingness to pay for service

• Assisting them to integrate other sectoral programmes into electrification yields dividends – the whole is greater than the sum of its parts


How?How?Aim:• Sustainable economic developmentRoadlocks:• Incoherent policy and regulatory frameworks• Cost• Access to finance• Unattractive investment climates• Weak technical and managerial capacity• Lack of practical support frameworks• Distance from sources of expertise• Governance issues


Best Practice - howBest Practice - how• Policy and institutional strengthening• Demand-driven planning - needs and resources

assessments• Collaborative identification of sustainable natural

resource development• Maximise power use for economic, social and

environmental benefit• Programmes, not projects• Monitor outcomes rather than outputs


Valuing benefitsValuing benefitsPROBLEM:

• Financial cost falls upon the producer

• Economic benefit and benefits of “externalities” accrues to society as a whole

• We demand most of the poorest and remotest

SOLUTION:

• Internalise externalities; trade carbon credits

• Provide service to remote communities as for urban communities

• Develop better metrics• Recognise the need for

long term consultation and support


Management modelManagement model

Donor

Village E

Village D

Village C

Village B

Village A

Utility Service Provider

Central Government Agency Local Government Agency

Private Sector Service

Academia


APEC at Policy LevelAPEC at Policy Level

There are not many new problems, so why do we keep making the same old mistakes?

APEC can:• Foster information and experience sharing

between member economy policy makers to de-politicise:– Policy and institutional frameworks– Investment and financing mechanisms


APEC in Sustainable Village APEC in Sustainable Village Development can:Development can:

• Host workshops to bring together member economy actors in:– Programme design– Methodology and best practice– Emerging technologies - use the CPI!– Village installation operation and management– Impact monitoring and evaluation

• Implement integrated SVD programmes with emphasis on private sector development

community based development and productive uses of power

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