road map and investment financing prospectus peter hoogland, november 22 2013
TRANSCRIPT
Road Map and Investment Financing Prospectus
Peter Hoogland, November 22 2013
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PRESENTATION OUTLINE
What is the Road Map and Prospectus?
Why is it important?
What are the components of the Road Map and Prospectus?
What is our approach and process for its development?
What is the Road Map and Prospectus?
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The Government’s vision, development priorities and target outcomes for achieving universal access by 2030
Universal access to electricity by 2030
Clear targets, intermediate goals and milestones to measure progress
Integrated, sector-wide approach (grid and off-grid)
Goal
Path
4It’s all about realization…
Why is it important?
Vision Actions
Road Map and Prospectus
Sector wide least cost plan
Institutional Framework
Universal Access by 2030
Many PlayersOne TeamOne Plan
Sustainable Financing Package
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1. Government’s goal and targets
What is the content of the Road Map and Prospectus?
What infrastructure needs to built to connect all customers at the least cost?
Technology options for grid extension and off grid Locations and number of households requiring
connections Least-cost priority order for new connections Total costs (investment and recurrent)
This is the work being done by the Columbia University team
2. Geospatial rollout plan for the distribution network
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3. Required institutional framework
What is the content of the Road Map and Prospectus?
These last two tasks are being carried out by the Castalia team
It defines Roles Responsibilities Accountabilities
…
…delivering the right Policies Regulations Implementation arrangements Business models for service
provision
We will discuss this further this afternoon
4. A sustainable financing platform and a bankable prospectus
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5. Technical assistance and capacity building plan to ensure successful implementation of the program: Delivering the program is a step change in capacity over current
connection rates
6. A results monitoring plan to track, measure and update the program How are we tracking against the targets? What lessons are we learning? How do we update the program?
What is the content of the Road Map and Prospectus?
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What is the Investment Prospectus?
4. Syndication of financing – grants, loans, government budget, equity, and technical assistance
1. Projects – from rollout for 2015 to 2020
3. Financing gap – how to cover the gap between costs and revenues
2. Investment funding requirements for each year of the rollout program and the potential sources of funds?
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The funding for the capital investment and the required technical assistance will be large. Potential sources are:
Funding requirements
This funding will be determined in consultation with stakeholders
Utilities Government Private sector Donors
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The financing gap
Electricity Revenues−Costs of Electricity Provision=𝐅 𝐢𝐧𝐚𝐧𝐜𝐢𝐧𝐠𝐆𝐚𝐩Revenues include connection costs and tariff incomeCosts include recurrent costs and any cost of capital
Significant increases in electric access have not been achieved without some Government support to bridge the financing gap
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The options for bridging the financing gap are:
Bridging the financing gap
Government budget funds Donor grants and concessional loans Cross-subsidies within the sector Cross-subsidies from outside the sector
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Government financial support
Commercial Viability
• Service providers (public or private) must be viable for the rollout to be sustainable
Customer Affordability
• Electricity must be affordable to all for universal access to be achieved
The government must ensure both commercial viability and affordability for success…
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Investment prospectus includes a sector wide approach
Examples from other countries
Kenya
Distribution investments are linked with generation and transmission
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Examples from other countries
Rwanda Investment prospectus includes a sector wide approach
Generation, transmission, and distribution costs are all part of the total investment plan
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Our approach and process
Goal and targets
Develop institutional framework
Develop financing framework
Develop funding requirements
The Road Map and Prospectus is the Government’s plan . The Government heads a collaborative and evolving process
Develop least-cost roll out plan
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Summary
Two key messages, the Roadmap and Prospectus is more than a plan….
Integrated sector wide program—not just a list of individual projects
An action plan with enablers that ensure the realization of the vision of universal access
Many PlayersOne TeamOne Plan
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