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Energy Sector in the Greater Mekong Subregion

Energy Sector in the Greater Mekong Subregion

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03/13/2012

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IED
 
Learning Curves
March
 
2009
Energy
 
Sector
 
in
 
the
 
Greater
 
Mekong
 
Subregion
 
This
 
report
 
presents
 
the
 
findings,
 
lessons,
 
and
 
recommendations
 
of
 
an
 
independent
 
assessment
 
of
 
ADB
ʹ
s
 
assistance
 
to
 
the
 
energy
 
sector
 
during
 
1992–2007
 
in
 
the
 
Greater
 
Mekong
 
Subregion
 
(GMS),
 
comprising
 
 ,
 
 ,
 
 ,
 
Guangxi
 
Zhuang
 
Autonomous
 
Region
 
and
 
Yunnan
 
Province
 
in
 
the
 
 ,
 
 ,
 
and
 
.
 
 
The
 
1
 
found
 
that
 
ADB’s
 
GMS
 
energy
 
program
 
has
 
resulted
 
in
 
significant
 
economic
 
 benefits
 
to
 
the
 
participating
 
countries.
 
An
 
important
 
apparent
 
 benefit
 
of
 
the
 
GMS
 
energy
 
program
 
has
 
 been
 
the
 
demonstration
 
effect.
 
There
 
is
 
clear
 
evidence
 
that
 
investor
 
confidence
 
in
 
undertaking
 
power
 
export
 
projects
 
in
 
the
 
region
 
has
 
risen
 
strongly
 
in
 
recent
 
years.
Background
 
The
 
 
countries
 
have
 
diverse
 
energy
 
resources
 
that
 
are
 
unevenly
 
distributed
 
among
 
the
 
member
 
countries.
 
Although
 
the
 
subregion
 
is
 
well
 
endowed
 
with
 
hydropower
 
and
 
fossil
 
fuel
 
resources,
 
most
 
of
 
the
 
exploitable
 
resources
 
are
 
locally
 
concentrated.
 
The
 
institutional
 
setup
 
of
 
the
 
GMS
 
energy
 
program
 
has
 
evolved
 
over
 
the
 
past
 
15
 
years.
 
There
 
are
 
now
 
two
 
separate
 
institutional
 
structures:
 
the
 
 
and
 
the
 
.
 
The
 
energy
 
sector
 
is
 
the
 
second
 
largest
 
sector
 
in
 
the
 
GMS,
 
after
 
the
 
transport
 
sector.
 
The
 
total
 
energy
 
investment
 
costs
 
under
 
the
 
GMS
 
program
 
have
 
amounted
 
to
 
$1.7
 
 billion,
 
17%
 
of
 
the
 
total
 
GMS
 
project
 
costs
 
of
 
$10.3
 
 billion.
 
To
 
date,
 
Asian
 
Development
 
Bank
 
(ADB)
 
has
 
provided
 
about
 
$185.4
 
million
 
additional
 
and
 
concessionary
 
assistance
 
for
 
the
 
GMS
 
energy
 
sector,
 
of
 
which
 
95%
 
($176.3
 
million)
 
are
 
loans,
 
while
 
$9.1
 
million
 
are
 
technical
 
assistance
 
(TA)
 
grants.
 
ADB
 
lending
 
to
 
the
 
sector
 
has
 
consisted
 
of
 
four
 
loans:
 
three
 
to
 
the
 
Lao
 
People
ʹ
s
 
Democratic
 
Republic
 
(Lao
 
PDR)
 
and
 
one
 
to
 
Cambodia.
 
Three
 
of
 
the
 
loans
 
financed
 
the
 
construction
 
of
 
hydropower
 
stations
 
in
 
the
 
Lao
 
PDR
 
aimed
 
at
 
exporting
 
power
 
to
 
Thailand:
 
the
 
 
(surplus
 
energy),
 
the
 
 ,
 
and
 
the
 
2
.
 
In
 
addition,
 
another
 
loan,
 
the
 
 ,
 
financed
 
the
 
construction
 
of
 
power
 
transmission
 
infrastructure
 
in
 
Cambodia
 
linking
 
Phnom
 
Penh
 
with
 
the
 
 border
 
of
 
Viet
 
Nam.
 
The
 
GMS
 
energy
 
sector
 
has
 
received
 
17
 
TA
 
grants
 
amounting
 
to
 
$9.1
 
million,
 
of
 
which
 
nine
 
have
 
 been
 
for
 
project
 
preparation.
 
Advisory
 
TA
 
has
 
focused
 
mainly
 
on
 
assisting
 
the
 
 ,
 
preparing
 
an
 
indicative
 
regional
 
master
 
plan,
 
formulating
 
trade
 
agreements,
 
developing
 
a
 
 ,
 
and
 
addressing
 
issues
 
related
 
to
 
environmentally
 
sustainable
 
development
 
of
 
electricity
 
infrastructure
 
in
 
the
 
GMS.
 
Summary
 
of
 
Findings
 
The
 
overall
 
rating
 
for
 
the
 
ADB
 
assistance
 
during
 
the
 
evaluation
 
period
 
is
 
“successful.”
 
The
 
GMS
 
program
 
has
 
grown
 
over
 
the
 
years
 
to
 
 become
 
a
 
major
 
regional
 
cooperation
 
initiative
 
of
 
ADB,
 
and
 
the
 
GMS
 
countries.
 
It
 
has
 
resulted
 
in
 
significant
 
economic
 
 benefits
 
to
 
the
 
participating
 
countries
 
and
 
has
 
contributed
 
to
 
rising
 
investor
 
confidence
 
in
 
undertaking
 
power
 
export
 
projects
 
in
 
the
 
region.
 
The
 
top
down
 
assessment
 
of
 
the
 
GMS
 
energy
 
sector
 
strategy
 
is
 
rated
ʺ
successful,
ʺ
with
 
some
 
areas
 
needing
 
improvement.
 
The
 
GMS
 
energy
 
projects
 
were
 
all
 
priority
 
projects
 
within
 
the
 
individual
 
government
 
public
 
investment
 
programs
 
and
 
the
 
GMS
 
energy
 
program
 
is
 
fully
 
in
 
line
 
with
 
ADB’s
 
sector
 
and
 
thematic
 
priorities.
 
The
 
sequencing
 
of
 
energy
 
sector
 
activities
 
is
 
considered
 
Independent Evaluation Department Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, PhilippinesTel +63 2 632 4100; Fax +63 2 636 2161;
evaluation@adb.org
;
www.adb.org/ evaluation/ 
 

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