Pro-Poor Public-Private Partnerships for Rural Energy Services National Project Status & Team Composition: Nepal

Ram Prasad DhitalAssistant Director

Alternative Energy Promotion Center Ministry of Science, Technology and Environment

Nepal

REGIONAL TRAINING WORKSHOP ON WIDENING ACCESS TO ENERGY SERVICESTHROUGH PRO-POOR PUBLIC-PRIVATE PARTNERSHIPS

25-27 SEPTEMBER 2013, UNCC, BANGKOK, THAILAND

Outline• AEPC: Introduction and Mission

• 5P | National Context

• Conceptual Design for 5P in Nepal

• National Project Status

– Completed Activities

– Ongoing Activities

– Planned Activities

• Team Composition

AEPC: Introduction & Mission• Alternative Energy Promotion Centre (AEPC) a Government

institution established on November 3, 1996 under the then Ministry of Science and Technology

• Apex institution promoting Renewable Energy Technologies (RETs) in rural Nepal

• National focal point for resource mobilization on RETs

• Mission:– to make renewable energy mainstream resource through increased

access, knowledge and adaptability contributing for the improved living conditions of people in Nepal

5P | National Context• 5P business model promoted by AEPC as it is inline with our

vision of improving rural livelihood by providing access to clean energy

• Private sector’s involvement in rural energy so far mostly as contractors for project installation only with no initial investment

• 5P pilot projects to serve as demonstration of business model in rural energy sector where private sector is one of the investors

Key Features of Pro Poor PPP• Bring private sector and public sector together with special focus on

community

• Attract private sector through appropriate policy and institutional framework

• Make basic services affordable for rural communities

• Make project operation sustainable

• Link energy with IFAD funded projects to capture co- benefits and synergies available under the IFAD funding

• Share the benefits and risks associated with the 5Ps process.

Conceptual Design for 5P in Nepal• Poor and marginalized ethnic communities such as Chepang

and Kami given priority for site selection

• Productive end uses (rice huller, cyber cafe etc) promoted and explored for revenue generation

• Encourage participation of various entities like govt. institutions, private sector, local community, NGO and financial institution for the sustainability of project

• Investment from private sector encouraged by allocating them revenue share higher than their proportionate investment

Procedures/ Guidelines

Subsidy

AEPC APPROACH FOR PROGRAM IMPLEMENTATIONPublic Private

PartnershipDemand side

Public sector

Supply side

Private sector

capacity building

Technical & financial assistance

Coordination

Quality assurance

Manufacturing

Supply & installation

After sales services

Internal quality control

Users/ Beneficiary

5 P Concept

Private

Mixed (Partnership Approach)

Social (more grant, less

business motive, Govmt Subsidy)

???

???

(only Big hydr0)

Private investment

(Sharing ???)

Subsidy Driven

Service Delivery-3P Approach

AEPC ModalityPartnership Modality

• Secretary of Ministry of Science, Technology and Environment (MoSTE), (Chairperson of the PSC)

• One representative from Ministry of Finance, Joint Secretary• One representative from Ministry of Federal and Local

Development ,Joint Secretary• One representative from Ministry of Energy, Joint Secretary• One representative from National Planning Commission (NPC)• One representative from Development Partners• The Executive Director (ED) of AEPC, (Member Secretary, Ex officio)

9/30/2013 9

NRREP: NATIONAL STEERING COMMITTEE

5 Ps initiative will support to achieve NRREP targets: PROJECT ACTIVITIES (2012-2014)

• Assessment and planning

• Stakeholders consultation, Inception workshop, feasibility study and capacity needs assessment

• A few demonstration projects

• Policy input based on learning from field

9/30/2013 10

NRREP Steering Committee

AEPC ED (Program Director)

National Working Team

•Project Identification•Project implementation•Quality Assurance

Monit

or

ing

NRREP LINKAGE WITH THIS 5 P INITIATIVE

National Working TeamAEPC ProfessionalsMr. Parakram Pyakurel- National Consultant

Nation Project StatusCompleted Activities

• Preparation of National Concept Note (Inception Report)

• 5P implementation plan national workshop conducted on October 9,2012

• 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

Nation Project StatusOngoing 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 non-functional 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

Nation Project StatusPlanned Activities

• Finalize site(s) from 2 potential candidate sites -Bhirkot and Baidi

• Drafting and signing of contractual agreement among private company, local community and NGO partner Rural Empowerment Society Damauli Tanahun Nepal (RESDTN)

• Preparation of detailed business plan including Bill of Quantities (BOQ), system component specification, tariff rate fixing, financial assessment etc

• Projects implementation

S.N Name and Position Assigned roles in 5 P project

1 Prof. DR Govind Raj Pokharel ED AEPC Project Director and Overall Guidance

2 Ram Prasad Dhital AD, AEPC Project Coordinator, Coordination and Management and overall responsible for implementation

3 Surya Kumar Sapkota AD AEPC Linking 5 P activities with government systems, linking ESCAP with NRREP

4 Mukesh Ghimire EO AEPC Support Project implementation

5 Chandra Kishore Chaudhary AO AEPC Financing and logistic management

6 Parakram Pyakurel National Consultant Support project implementation and documentation

7 RES Tanahun, Local NGO Social mobilization in Raksirang and Baidi

8 DDC/DEEU Tanahun and Makwanpur District planning

9 Clean Energy Bank Loan financing

10 Ananta Gasifier PRIvate Company Equity investor and project developer at Raksirang

11 Solar Company yet to be decided For Baidi

Team Composition

Pro-Poor Public-Private Partnerships for Rural Energy Services National Project Status & Team Composition: Nepal

Ram Prasad DhitalAlternative Energy Promotion Center

Ministry of Science, Technology and EnvironmentNepal

REGIONAL TRAINING WORKSHOP ON WIDENING ACCESS TO ENERGY SERVICESTHROUGH PRO-POOR PUBLIC-PRIVATE PARTNERSHIPS

25-27 SEPTEMBER 2013, UNCC, BANGKOK, THAILAND