Technical Assistance Report
Project Number: 43385-01 Regional—Project Preparatory Technical Assistance (R–PPTA) March 2010
Empowering the Poor through Increasing Access to Energy
(Financed by the Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility)
Prepared by [Author(s)] [Firm] [Address] Prepared for [Executing Agency] [Implementing Agency]
The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s members, Board of Directors, Management, or staff, and may be preliminary in nature.
ABBREVIATIONS ADB CEEDS DMC MDG RSID TA – – – – – – Asian Development Bank Clean Energy and Environment Database System developing member country Millennium Development Goal Sustainable Infrastructure Division technical assistance
TECHNICAL ASSISTANCE CLASSIFICATION Type Targeting classification Sector (subsectors) Themes (subthemes) – – – – Regional—Project preparatory technical assistance (R–PPTA) General intervention Energy (renewable energy, microfinance, land-based natural resource management) Economic growth (widening access to markets and economic opportunities), social development (human development), environmental sustainability (natural resources conservation) Climate change mitigation Rural (high), urban (medium), national (medium), regional (medium) Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility
Climate change Location impact Partnership
– – –
NOTE In this report, "$" refers to US dollars. Vice-President Director General Director Team leader Team members U. Schaefer-Preuss, Knowledge Management and Sustainable Development X. Yao, Regional and Sustainable Development Department (RSDD) G. Kim, Sustainable Infrastructure Division, RSDD J. Acharya, Climate Change Specialist (Energy), RSDD S. Tumiwa, Principal Planning and Coordination Specialist, RSDD A. Zhou, Energy Specialist, RSDD
In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
1. The Asian Development Bank (ADB) is committed to helping its developing member countries (DMCs) ensure that all of their people have access to clean, modern energy. This goal is in line with the objectives of inclusive and environmentally sustainable growth under ADB’s current long-term strategic framework, Strategy 2020. 1 It also reflects the three operational pillars of ADB’s updated Energy Policy,2 which aim to promote energy efficiency and renewable energy, maximize the availability of energy for all, and support energy sector reforms along with capacity building and governance. Many of ADB’s DMCs have ambitious plans to greatly increase the delivery of energy to their citizens, including, in some cases, universal electrification programs. 2. The proposed regional project preparatory technical assistance (TA) builds on work under ADB’s Energy for All Initiative,3 which was launched in 2008 and has developed new approaches and methodologies for expanding access to energy for the poor. The TA will promote strategic approaches and partnerships to develop and implement larger projects and programs than ADB has supported in the past to make clean energy more available using modern efficient technologies. These undertakings will be oriented toward the poor. The vicepresident of knowledge management and sustainable development approved concept clearance of the TA on 9 October 2009. 4 The design and monitoring framework is in Appendix 1. II. ISSUES
3. Access to modern and reliable energy services is essential for sustainable development. Modern energy powers more than just economic growth. It also transforms lives by providing better delivery of education and health services, a cleaner and healthier environment, and improved opportunities for women and girls. Numerous studies have shown that access to modern energy enhances progress toward all of the Millennium Development Goals. Improving access to cleaner, renewable sources of energy also strengthens energy security in DMCs and is a key to mitigating climate change. 4. From 1990 to 2009, ADB provided over $25.8 billion in assistance for energy projects, extending electricity and modern fuels to hundreds of millions of people in Asia and the Pacific. Most of this support went to large power generation and grid extension projects, however, and the energy needs of many of the urban and rural poor remain unmet. More than 800 million of the region’s people still have no access to basic electricity services. Nearly 1.8 billion still cook and heat by burning wood, charcoal, dung and other forms of biomass. Women and children, especially girls, work countless hours to collect these traditional energy fuels and suffer disproportionately from the pollution damage indoor cooking fires inflicts on the health of millions. This widespread energy poverty is hindering progress toward sustainable, inclusive growth. 5. The DMCs face great obstacles in their efforts to achieve universal access to modern energy. Extending power grids to remote populations with low volumes of electricity consumption is often not technically or financially feasible. Lack of financing is a major impediment. Much evidence show that poor households are willing to pay for energy services but, without access to credit, cannot afford the cost of connecting to the grid or purchasing off1
ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 2008–2020. Manila. ADB. 2009. Energy Policy. Manila. ADB. 2008, Technical Assistance for Energy for All Initiative. Manila (TA 6443-REG, approved on 6 February, with funding of $2.3 million from the Government of the Netherlands). The TA first appeared in the business opportunities section of ADB’s website on 9 November 2009.
2 grid energy services prohibitive for many. Longstanding regulations and incentives in some DMCs promote business-as-usual practices by subsidizing grid extension and fossil fuels such as diesel and kerosene without offering similar incentives for these off-grid applications that could rapidly expand energy access. 6. Innovations and cost reductions have made distributed renewable energy technologies attractive for off-grid lighting and electricity generation and many DMCs have adopted regulations to encourage distributed generation. ADB has supported its DMCs in promoting offgrid applications where grid extension was not feasible and has backed initiatives to promote cleaner, more efficient cooking technologies. These projects have been successful at a small scale. Due to the widely distributed nature of these projects, the high program costs, and the intensive capacity building required, however, the challenge has been to develop much larger, bankable projects. 7. ADB undertook the Energy for All Initiative to begin this transformation from small oneoff projects to larger programs with more beneficiaries and greater impact. The results have been positive. In its first 2 years of implementation, ADB’s investment in access to energy rose to nearly $900 million, 50% more than the total for the previous 5 years.5 The initiative has helped ADB introduce new approaches to the task. For example, it supported the design of credit facilities that give poor households loans to finance investments in energy services. The Energy for All Initiative supported the establishment of the Energy for All Partnership in June 2009, 6 which brings stakeholders from the private sector, financial institutions, governments, and nongovernment organizations across the region together to collaborate on what is a regional challenge through knowledge management, capacity building, and project development. The partnership’s working groups address key geographic, thematic, and technological issues and provide a platform for stakeholders to help develop and finance projects that will provide access to energy to 100 million more people in the region by 2015. 8. Lessons learned from ADB’s experience in access-to-energy projects have highlighted (i) the importance of end-user financing for achieving rapid scaling up of off-grid energy applications and the continued need to unlock local bank financing and microfinance to enable poor households to access energy services, especially in rural areas; (ii) the need for regional cooperation to facilitate transfer of knowledge and technologies; and (iii) the need for new business models that will attract greater private sector participation and reduce dependency on donor financing and subsidies. ADB has also learned that great scope exists for promoting offgrid energy access through its non-energy divisions, such as agriculture and natural resources and finance, and that the capacity must be built within these non-energy divisions to develop projects that contribute to increasing access to energy while continuing to achieve their distinct sector goals. 9. The proposed TA will build on ADB's earlier support for new approaches under the Energy for All Initiative by (i) meeting the growing demand among operations departments, including from non-energy divisions, for support in developing more and larger projects to give the poor access to energy; (ii) meeting the strong demand from DMCs for help to increase the use of clean technologies that satisfy the energy needs of the poor and bolster energy security; and (iii) ensuring the crucial support necessary to ensure the relevance and impact of the Energy for All Partnership through its establishment phase and to help it attract more partners and resources.
Investment calculations based on ADB. 2010. Guidelines for Estimating Asian Development Bank Investments in Access to Energy Projects and Number of Households Provided Access. Manila. ADB. 2009. Establishment of Energy for All Partnership (E4ALL). Manila.
3 III. A. THE PROPOSED TECHNICAL ASSISTANCE
Impact and Outcome
10. The TA’s impact will be improved economic, environmental, gender, and health conditions for the poor in participating DMCs. The TA outcome will be an increased number of projects that will give the poor access to modern, reliable, clean energy services. B. Methodology and Key Activities
11. The TA will increase the number of ADB projects that deliver access to energy to the poor and raise ADB’s overall investment in access to energy through a combination of support to ADB’s operations departments, capacity building among DMC governments and other key stakeholders, and support for the Energy for All Partnership. It will comprise several key activities: (i) The TA will help operations departments consolidate and replicate successful models for providing access to energy to poor communities and will facilitate the adoption and adaptation of these models throughout the region. The TA will work closely with energy and non-energy divisions to identify opportunities to develop access-to-energy projects or project components early in the project development pipeline. This will support operations departments to develop more, and larger-scale, projects based on existing models that aggregate demand, especially through financial intermediation. The approaches promoted will include off-grid renewable energy technologies, such as small solar photovoltaic, hydro, and wind installations for lighting and electricity generation, as well as cleaner, more efficient cooking and heating applications like improved cookstoves and the use of biogas from livestock manure. The TA will promote the involvement of financial institutions and the private sector in delivering access to electricity for the poor through public–private partnerships, fee-for-service models, and enduser financing. The TA will help selected DMCs analyze options for making access to electricity universal, a first step in the development of project pipelines for future ADB assistance. The capacity of governments, the private sector, financial institutions, and civil society in participating DMCS will be expanded under the TA so that they can design and implement effective policies, programs, and projects to make cleaner renewable energy technologies available to the poor. The TA will also support the development large pro-poor energy access projects through the Energy for All Partnership by providing seed funding to the regional secretariat and working groups to establish a pipeline for financing by ADB, other development partners, and the private sector. The partnership offers high value to ADB because it provides (a) strong links to the private sector and opportunities to help mobilize private sector resources in access to energy; (b) improved knowledge management on access to energy and related poverty alleviation, gender, and human development issues; and (c) an external signal of ADB’s commitment to access to energy. During TA implementation, ADB will mobilize additional resources from external sources and will support the establishment of the partnership as an independent legal entity.
4 12. The TA will be implemented in DMCs where it will have a high impact. Bangladesh, Bhutan, Cambodia, Indonesia, the Lao People’s Democratic Republic, Nepal, Pakistan, and the Philippines have been selected based on a number of considerations: the fit with the individual country partnership strategy 7 and ADB’s pipeline of projects, interest from operations departments to develop more pro-poor access-to-energy projects, government interest and commitment to increase access to energy to the poor, and current access-to-energy status. Using the same criteria, other countries may be designated during TA implementation. Potential interventions under the TA vary from country to country: Table 1: Potential Access to Energy Intervention in DMCs
Country Bangladesh Bhutan Cambodia Indonesia Lao People's Democratic Republic Nepal Pakistan Philippines Potential Intervention Expanding access to piped natural gas among the urban poor, rural electrification through micro-hydro Biogas development Rural electrification through small wind power Outer island off-grid rural electrification through solar energy, kerosene to liquefied petroleum gas fuel switching for the poor Biogas development, small wind power development Rural energy access through micro-hydro (including improved water mills), small wind power development Biogas development Biogas development, rural electrification through micro-hydro and small wind power
Source: Asian Development Bank.
13. The interventions will ultimately be based on (i) local demand and utilization of energy, (ii) the renewable energy resources available locally, (iii) the replicability and scalability of a particular intervention in a particular country and within the region, (iv) technical viability, (v) economic viability, (vi) the enabling environment, (vii) the interest shown by communities and local partners to participate, and (viii) whether other projects to provide access to energy for the poor are ongoing or proposed. Operations departments and DMC governments will be consulted before final decisions. The initial social and poverty analysis is in Appendix 2. C. Cost and Financing
14. The estimated total cost of the TA is equivalent to $2 million. The TA will be financed on a grant basis by the Asian Clean Energy Fund8 under the Clean Energy Financing Partnership Facility. The cost estimate and financing plan are in Appendix 3. D. Implementation Arrangements
15. ADB will be the executing agency for the TA. The Sustainable Infrastructure Division (RSID) of the Regional and Sustainable Development Department will be primarily responsible
ADB. 2009. Country Partnership Strategy Midterm Review: Bangladesh, 2006-2010. Manila; ADB. 2009. Country Partnership Strategy Midterm Review: Bhutan, 2006–2010. Manila; ADB. 2009. Country Operations Business Plan: Cambodia, 2009–2012.Manila; ADB. 2009. Country Operations Business Plan: Indonesia, 2010–2012. Manila; ADB. 2009. Country Partnership Strategy: Pakistan, 2009–2013. Manila; and ADB. 2009. Country Operations Business Plan: Philippines, 2010–2012. Manila. Established by the Government of Japan.
5 for all TA activities. RSID will collaborate closely with energy and non-energy divisions in the operations departments, as well as resident missions, in implementing the TA and to ensure that there is no overlap between the resources of this TA and other project preparatory TAs developing access-to-energy projects. Each participating DMC will designate an appropriate implementing agency or focal point for the TA. Activities funded by this TA will begin in a particular DMC only after ADB has received written confirmation from the DMC government that it has no objection to its inclusion in the TA. 16. The TA will be implemented over 3 years from 1 May 2010 to 30 April 2013. The TA will require an estimated 131 person-months of consultant inputs (65 international and 66 national). The engagement of consultants will be phased according to demand for specific expertise. RSID will draft detailed terms of reference in consultation with the operations departments for each work component. Many of the consultants will be recruited as individuals because of the need to source specialized and/or country-specific expertise. Individual consultants will be engaged through either time-based or lump-sum contracts. A firm will be engaged to carry out TA activities in support of the Energy for All Partnership. The firm will be recruited using qualityand cost-based selection, or quality-based selection, depending on the value of the contract and the complexity of the assignment. Firms will submit either full or biodata technical proposals and will be awarded either time-based or lump-sum contracts. All consultants will be engaged by ADB in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time). The outline terms of reference for consultants are in Appendix 4. All procurement of goods and other services under the TA will be done in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). Upon completion of the TA, all equipment procured by the consultants under the TA will be turned over to ADB. Disbursements under the TA will be done in accordance with ADB’s Technical Assistance Disbursement Handbook.9 17. The TA will bring about an international dialogue in the region on access-to-energy issues, plans, and policies. It will disseminate best practices and lessons learned through a variety of tools. These will include training, workshops, technical exchanges, and international conferences; publications and multimedia tools, including the websites of ADB, the Energy for All Partnership, and other partners; and the opportunities provided by the Energy for All Partnership for the interaction of other key stakeholders and their broader networks. TA consultants will monitor ADB investment in access to energy and track approved and pipeline projects to measure TA progress on its goal of increasing the number of these projects. Progress of the Energy for All Partnership will be tracked through a monitoring and evaluation system that includes quarterly progress reports from the partnership’s working groups and secretariat. A review of the partnership will be conducted midway through the TA period to determine whether there is continued interest from partners and whether the partnership is contributing to broadening access to energy in the region. It will also determine the next steps for continued ADB support. IV. THE PRESIDENT’S RECOMMENDATION
18. The President recommends that the Board approve ADB administering technical assistance not exceeding the equivalent of $2,000,000 to be financed on a grant basis by the Asian Clean Energy Fund of the Government of Japan under the Clean Energy Financing Partnership Facility for Empowering the Poor through Increasing Access to Energy.
ADB. 2008. Technical Assistance Disbursement Handbook. Manila.
DESIGN AND MONITORING FRAMEWORK
Design Summary Impact Improved economic, environmental, gender, and health conditions among the poor in participating DMCs Performance Targets and Indicators with Baselines Electricity and energy use indicators, economic and income growth rates for men and women, and health status of men and women in poor communities Improvement in meeting the MDGs Outcome Increased number of projects that deliver access to modern, reliable, and clean energy services to the poor Data Sources and Reporting Mechanisms DMC energy data and national reports Human Development Index DMC data and donor organization reports on MDGs Surveys carried out by DMCs and donor organizations DMC data, surveys, and reports International Energy Agency and donor organization data and reports Assumptions and Risks Assumptions There is continued regional collaboration to address energy poverty. Public, private, and donor resources to improve access to energy are available. DMCs have the political will to increase access to modern energy services for the poor to meet MDGs. Assumptions Energy access is a priority for DMCs. Private sector and financial institutions see energy access as a potential untapped business opportunity. Risks Governments in the region will be preoccupied by other development priorities. Private sector and financial institutions will prefer larger energy investments.
Increase in number of new households with connections to modern energy services for electricity or cooking and heating Higher electrification rates in participating DMCs Reduction in time used by women and children, especially girls, for energy collection and provision Decrease in number of households dependent on biomass for cooking and heating
Outputs 1. ADB investment in access to energy increased
Increase in both number of ADB projects with components addressing access to energy and in investment amount per project
ADB RRPs, monitoring reports, and project completion reports Donor and other organization reports DMC data and reports
Assumptions Participating DMC governments are committed to implementing projects to increase access to modern energy services. Financial institutions see a business opportunity in lending for energy access
Design Summary 2. Selected DMCs helped in analyzing options for providing universal access to electricity, and a pipeline of projects generated 3. Capacity of the participating host country governments, private sectors, financial institutions, and civil society to design, implement, and monitor energy access projects is increased
Performance Targets and Indicators with Baselines At least one project developed in each selected high-impact DMC
Data Sources and Reporting Mechanisms Energy sector investment data and reports
Assumptions and Risks
Capacity of at least 200 officials from government, private sector, financial institutions, and civil society to implement access-to-energy programs enhanced through workshops, technical exchanges, and training programs At least 30 scaling-up projects identified and implemented through the Energy for All Partnership, about half of which are supported by ADB Additional resources mobilized to sustain Energy for All Partnership after 2 years
enterprises and investments and have sufficient technical know-how to participate in Energy for All Partnership access to energy projects. reports The private sector sees business opportunity in the provision of small-scale energy services and products. Access to energy is a priority for target communities and they are willing to take part in planning, constructing, financing, and/or managing energy systems. Private sector and donors see value in a regional partnership approach and are willing to contribute resources to sustain it. Risks There is weak local institutional and regulatory support for improving access to energy. Financial institutions are not willing to lend at key points along the energy access supply chain and do not attain the know-how required to finance energy services for the poor. The private sector does not see viable opportunities in access to energy. Communities do not prioritize access to energy and they are not united in planning, building, and managing the systems. Support for a regional partnership approach is not sustained.
4. Regional partnership for scaling up access to energy incubated and established as an independent entity
Activities with Milestones 1.1 Access to energy expert (international consultant) recruited. By month 3 1.2 Inputs provided to operations departments, including both energy and non-energy divisions, to identify, design, implement, and monitor access to energy projects. Ongoing. 1.3. In consultation with operations departments, opportunities for developing access to energy projects are identified in the ADB project pipeline and project components are designed. Three projects supported by month 12, six projects by month 24, ten by month 36. At least six of the projects implemented upscale or replicate an approach previously implemented with the assistance of ADB or other partners in Energy for All Partnership. 1.4 Operations departments assisted in the preparation of gender action plans for access to energy projects. Ongoing. 1.5. Information on best practice models and approaches for scaling up access to energy disseminated to ADB project officers. Ongoing. 1.6. Partnerships to develop, finance, implement, and monitor access to energy projects are facilitated through the Energy for All Partnership. Ongoing. 1.7 ADB access to energy investment and impacts monitored. Ongoing. 2.1 Selected DMCs identified for assistance analyze options for providing universal access to electricity based on ADB country partnership strategy, interest, and commitment to increase access to energy to the poor, and current access to energy status. By month 4. 2.2. Analyses completed, and action plans, including a pipeline of potential projects, identified. By month 14 2.3. At least one project per country developed with ADB assistance. By month 36. 3.1. A range of informational materials are developed and disseminated and workshops and technical exchanges conducted. By month 36. 4.1 Support provided to the Energy for All Partnership secretariat and working groups to undertake activities (including, but not limited to, workshops and technical exchanges; feasibility, project design, and environmental impact assessment studies; dissemination of business models and technologies) to develop and implement scaling-up access-toenergy projects through the partnership. Ongoing. 4.2 Agreements reached with donors and investors to give consideration to projects identified and developed through the Energy for All Partnership. Ongoing. 4.3 Additional resources mobilized from the private sector, foundations, or development partners to support the partnership’s secretariat and working groups after 2011. By month 24.
Inputs ADB: - Significant inputs by ADB staff in TA management - 65 person-months of international consultants, and 66 person-months of national consultants Government: - Commensurate efforts by government personnel in coordinating TA activities Beneficiaries: - Entrepreneurs and households are willing to contribute equity and or/materials and labor to energy service investments. Financial and in-kind contributions from private sector and other partners to Energy for All Partnership projects and activities
ADB = Asian Development Bank, DMC = developing member country, MDG = Millennium Development Goal, RRP = report and recommendation of the President, TA = technical assistance. Source: Asian Development Bank.
__________________ Jiwan Acharya, RSID
_____________________ Xianbin Yao, DG, RSDD
INITIAL POVERTY AND SOCIAL ANALYSIS
Country and Project Title: Lending or Financing Modality: Regional: Empowering the Poor through Increasing Access to Energy
Department and Division: I.
Regional and Sustainable Development Department/ Sustainable Infrastructure Division
Linkages to the National Poverty Reduction Strategy and Country Partnership Strategy
1. Based on the country poverty assessment, the country partnership strategy and the sector analysis describe how the project would directly or indirectly contribute to poverty reduction and how it is linked to the poverty reduction strategy of the partner country. The proposed technical assistance (TA) directly supports the Asian Development Bank (ADB) poverty alleviation mandate and the a focus under Strategy 2020 on inclusive growth. It also aligns with ADB's 2009 Energy Policy, which identifies maximizing access to energy as one of three pillars for ADB’s overall support to the energy sector. Increasing access to energy also aligns with developing member country policies and programs, many of which include ambitious universal electrification targets. Access to modern and reliable energy services is essential for sustainable human development, economic growth, higher quality of life, and better delivery of education and health services. Much data suggests that poor households spend more on energy—in relative and sometimes even absolute terms – than their wealthier neighbors. The projects implemented with the support of the TA will not only provide cleaner, more efficient energy to poor households but may also reduce household energy expenditure. B. 1. Targeting Classification Select the targeting classification of the project: Individual or Household (TI-H); Geographic (TI-G); Non-Income MDGs (TI-M1, M2, etc.)
General Intervention (GI)
2. Explain the basis for the targeting classification: Numerous studies have demonstrated the link between access to modern energy and poverty reduction. Access to energy creates economic opportunity for poor households, through lighting and mechanical power, and improves productivity. This is particularly true for women, who are able to make better use of time formerly spent sourcing fuel and performing manual labor. C. Poverty Analysis 1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed? 2. What resources are allocated in the project preparatory TA/due diligence? For all projects that receive support through the TA, ADB staff and consultants engaged through the TA will ensure that the social and poverty impact assessments of acquired access to energy are appropriately incorporated into the broader due diligence and project design of the respective projects. 3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor governance, and pro-poor growth)? The projects will explicitly target poor beneficiaries and thus will incorporate pro-poor design elements as appropriate. II. SOCIAL DEVELOPMENT ISSUES A. Initial Social Analysis Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit from the project? Poor households in rural, urban, and remote areas without access to modern energy are the primary beneficiaries of the project. Women in particular will benefit from reduced drudgery, improved income generation opportunities, and improved health. Children, especially girls, will benefit from increased study time and opportunity to attend school. As indigenous peoples often live in remote areas far from electricity grids, they too will be among the primary beneficiaries.
2. What are the potential needs of beneficiaries in relation to the proposed project? Households reliant on kerosene for lighting or burning biomass for cooking require access to cleaner, more efficient, and often cheaper forms of energy. 3. What are the potential constraints in accessing the proposed benefits and services, and how will the project address them? The interventions supported through the TA will be designed so that the poorest households are the primary beneficiaries and to ensure that benefits are not captured by individuals and households who could access modern energy without project assistance. B. Consultation and Participation 1. Indicate the potential initial stakeholders. Potential stakeholders include affected peoples, affected communities, national, provincial, and local authorities, civil society groups, private sector technology suppliers and service providers, local financial and microfinance institutions, and local associations. 2. What type of consultation and participation is required during the TA or project processing (e.g., workshops, community mobilization, involvement of nongovernment organizations and community-based organizations, etc.)? Affected persons and communities and all other relevant stakeholders will be fully consulted during the design and implementation of projects supported through the TA through stakeholder consultations and workshops. 3. What level of participation is envisaged for project design? Information sharing Consultation Collaborative decision making Yes No Empowerment
4. Will a consultation and participation plan be prepared?
As this TA will support a number of projects in different developing member countries, consultations will be carried out in accordance with the design of each project and relevant national regulations. C. Gender and Development 1. What are the key gender issues in the sector and/or subsector that are likely to be relevant to this project or program? Women and girls suffer disproportionately from inadequate access to modern energy. Women and girls often spend several hours a day engaged in subsistence activities like agro-processing, firewood gathering, water pumping, and cooking. Time spent on these activities deprives women of opportunities for income generation and deprives girls of educational opportunities. In households dependent on biomass and traditional stoves for cooking, women and girls suffer more harmful health impacts from indoor air pollution, a condition that kills 1.5 million people worldwide each year. 2. Does the proposed project or program have the potential to promote gender equality and/or women’s empowerment by improving women’s access to and use of opportunities, services, resources, assets, and participation in decision making? Yes No Please explain.
By improving access to modern energy among the poor, the TA will promote gender equality by increasing women’s opportunities for productive work and income generation, by increasing girls’ education prospects, and by reducing the harmful health impacts from burning kerosene for lighting or burning biomass for cooking. Since this TA aims at supporting projects at an early stage and bringing them into ADB's pipeline, gender action plans will be prepared during the processing of such projects, where applicable. 3. Could the proposed project have an adverse impact on women and/or girls or widen gender inequality? Yes No Please explain
III. Issue Involuntary Resettlement
SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Significant/Limited/ Plan or Other Action Nature of Social Issue No Impact/Not Known Required Full Plan The project will indirectly The project is category C. Short Plan support the construction No impact is expected from Resettlement Framework and/or installation of various ensuing projects. No Action types of small-scale energy Uncertain infrastructure through ensuing projects (e.g., household biogas digesters, solar photovoltaic panels, small-scale wind turbines, improved water mills). No involuntary resettlement is expected. No disruptive or adverse The project is category C. Plan impact is expected. The No impact is expected from Other Action project will seek to improve ensuing projects. Indigenous Peoples living standards through Framework access to modern energy. No Action Uncertain The project will assist in creating local employment opportunities. Increased access to energy may require introduction of user charges. No impact. Plan Other Action No Action Uncertain Action No Action Uncertain
Labor Employment Opportunities Labor Retrenchment Core Labor Standards Affordability
Other Risks and/or Plan Vulnerabilities Other Action HIV/AIDS No Action Human Trafficking Uncertain Others (conflict, political instability, etc.), please specify IV. PROJECT PREPARATORY TECHNICAL ASSISTANCE OR DUE DILIGENCE RESOURCE REQUIREMENT 1. Do the terms of reference for the TA (or other due diligence) include poverty, social and gender analysis and the relevant specialist(s)? Yes No If no, please explain why. This TA will support the development of access to energy projects through operations departments. Specialists engaged through this TA will provide inputs on the poverty, social, and gender analysis of the projects they support but the comprehensive due diligence will be conducted by the project teams engaged through the operations departments. 2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender analysis, and Yes No If no, please explain why. consultation and participation during the TA or due diligence? Resources will be allocated for stakeholder consultation relating to the design of access-to-energy projects developed with the support of this TA. TA = technical assistance. a ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 2008–2020. Manila. Source: Asian Development Bank.
Issues related to affordability and willingness to pay will be explored during the stakeholder consultations for the ensuing projects developed with support from the TA. Mitigation measures will be designed as appropriate to ensure there are no adverse impacts on the livelihoods or coping strategies of the poor. No impact
COST ESTIMATES AND FINANCING PLAN (’000) Item Total Cost Asian Clean Energy Fund under the Clean Energy Financing Partnership Facilitya 1. Consultants a. Remuneration and per diem i. International consultants 1,300.00 ii. National consultants 264.00 b. International and local travel 80.00 c. Reports and communications 15.00 2. Equipmentb 5.00 3. Training, seminars, conferences, and workshopsc 126.00 4. Miscellaneous administration and 10.00 support costs 5. Contingencies 200.00 Total 2,000.00
a b c
Established by the Government of Japan and administered by the Asian Development Bank. Includes computers, printers, software, and accessories. Includes honorarium and travel costs for resource persons and facilitators, participants' travel costs, staff travel costs as resource persons and/or speakers, and logistical costs. Source: Asian Development Bank estimates.
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS A. Individual Consultants 1. Access-to-Energy Project Coordinator (international, 24 person-months)
1. The project coordinator will assist in managing and coordinating the activities of the technical assistance (TA). Specific tasks will include: (i) Assist the Sustainable Infrastructure Division (RSID) of Asian Development Bank (ADB) Regional and Sustainable Development Department in activities related to the selection, engagement, and supervision of international and national consultants recruited under the TA and in coordinating the technical support provided by international and national consultants, as required by RSID and the operations departments. Review the energy programs on the ADB pipeline and explore possibilities for carrying out activities to increase access to modern energy services. Disseminate information on TA activities and support that can be provided by the regional partnership to potential partners. Prepare knowledge management products, distilling best practices and lessons learned from ADB’s experience in promoting access to energy. Provide inputs to partners in developing access-to-energy projects, mainly on financing issues. Facilitate discussions among partners and promote the formation of partnerships to develop access-to-energy projects. Liaise and ensure effective communications between the Energy for All Partnership steering committee and working groups and ADB staff and international and national TA consultants. Track the development of projects through the Energy for All Partnership for potential ADB investment opportunities. Gather and analyze information on project development, financing, and technological trends in off-grid energy and clean and efficient fuels for cooking and heating. Ensure that ADB access to energy projects incorporate co-benefits, including health, gender, climate change mitigation, and the environment. Participate on an ongoing basis in RSID efforts aimed at communicating to internal and external audiences the status and achievements of ADB’s efforts to maximize access to energy for all. Provide input to Energy for All Partnership working group chairs on the development of work plans, including establishing priorities and targets and identifying a program of activities. Assist working group chairs in implementing activities. Present ADB’s access-to-energy activities at various meetings and events. Track the activities being carried out by other organizations for increasing access to energy and explore possibilities for cooperation and collaboration. Access-to-Energy Technology Specialists (international, 12 person-months)
(ii) (iii) (iv) (v) (vi) (vii)
(xiii) (xiv) (xv) 2.
2. The number of the multiple specialists required will depend on project specifications and the technology used. Specific activities to be undertaken by the consultants will include:
(iv) 3. 3.
Identify, from among ADB’s existing portfolio of projects as well as external projects, approaches for providing access to energy to marginal communities that could be replicated or scaled up through future ADB assistance. Assist mission leaders and project officers from ADB’s operations departments to identify and develop access-to-energy projects or components in their projects, through the approaches identified in para (i). Assistance to project teams may include but not be limited to the following operational requirements: (a) participate in the conduct of fact-finding and appraisal missions; (b) provide inputs on appropriate technologies; (c) estimate project impacts, outcome, and outputs arising from the access-to-energy component of proposed projects; (d) estimate the investment costs of the access-to-energy components of projects; (e) analyze special features (new to ADB operations), assumptions, and risks arising from project implementation; (f) ensure that executing and implementing agencies, as well as other key project stakeholders, have been fully consulted, engaged, and possess the requisite capacities to implement and operate the proposed development; (g) review the technical capabilities and institutional capacity of executing and implementing agencies; (h) ensure that the implementation arrangements are efficient and appropriate for technical implementation of the project; (i) assess the gender impacts of projects and assist project teams in the preparation of gender action plans; (j) assist project teams in the preparation of environmental and social impact assessments; (k) ensure that appropriate stakeholders (national, state, and local government agencies, regulators, transmission, and distribution utilities, financial and microfinance institutions, nongovernment organizations, consultants, suppliers, energy service companies, beneficiaries) are consulted in the planning and implementation of access-to-energy projects; (l) assist project teams to ensure that the proper issues are taken into consideration in the technical, financial, and economic analyses as well as the environmental and social safeguards; and (m) develop guidelines and data requirements for national consultants to support the preparation of access-to-energy investments (if and when applicable). Assist RSID or operations departments in the review of the outputs of DMC-based consultants. Assist ODs to review immediate energy access investment opportunities in selected ADB's DMCs and prepare estimates of the access-to-energy investment requirements. Provide technical inputs to working groups and members of the partnership as needed. Access-to-Energy Financing Specialists (international, 12 person-months)
Specific activities to be undertaken by the consultants will include: (i) Assess the needs and capacity of financial institutions, including microfinance institutions, to lend for access-to-energy projects, and the type of support required to expand lending for energy services. Assess household ability to pay for energy services, determine subsidy level required, and design subsidy delivery mechanisms. Assess gender dimensions of financing interventions to increase access to energy and ensure gender equity is incorporated into project design. Identify appropriate financing mechanisms (including credit provision, credit enhancement, revolving funds, output-based aid) for ADB-assisted access-toenergy projects and design detailed operational guidelines and implementation arrangements.
(ii) (iii) (iv)
(v) (vi) (vii) (viii)
Design and implement capacity-building activities for local financial and microfinance institutions. Following ADB’s guidelines, carry out economic and financial analyses of access-toenergy projects. Recommend risk mitigation instruments to limit the distortion of local lending markets by financing mechanisms introduced by ADB-assisted projects. Support ADB staff to prepare appropriate documentation on the financing aspects of access-to-energy projects, as required, including but not limited to project plans, terms of reference, and memoranda of understanding. Communications and Project Administration Assistant (national, 30 personmonths)
4. The consultant will assist the team of international and national consultants by undertaking the following activities: (i) (i) (ii) (iii) (iv) (v) (vi) (vii) Field and direct requests pertaining to ADB’s access-to-energy activities. Maintain project documentation and records. Maintain and update the TA website. Assist in the preparation of a newsletter and other public awareness material promoting TA activities. Collect, verify, and compile data on access to energy for use in presentations and reports. Assist in the preparation of annual and final reports. Regularly research and verify key issues and latest developments in access to energy that are relevant to ADB. Maintain an accurate record of ADB’s investment in approved projects with accessto-energy components and track the pipeline of projects with access-to-energy components through the Clean Energy and Environment Database System CEEDS database and other sources. Help draft access-to-energy communication materials (presentations, brochures, briefing notes, speeches, etc.). Draft case studies and how-to guides for developing ADB access-to-energy projects, incorporating co-benefits, including health, gender mainstreaming, climate change mitigation and the environment. Ensure that all access-to-energy communications developed have been proofread and follow ADB standard formatting. Assist in the logistical and administrative arrangements for events, including the annual Asia Clean Energy Forum. Undertake other activities to support the implementation of the TA, as required.
International Consulting Firm 1. Partnership Coordinator/Team Leader (international, 10 person-months)
5. The partnership coordinator will manage and coordinate the team of international and national consultants and will assist RSID in overseeing the implementation of the partnership as well as provide strategic advice and recommendations to ADB and the Energy for All Partnership steering committee and will manage the Energy for All Partnership secretariat. Tasks will include but not be limited to the following: (i) Supervise the team and manage the day-to-day operation of the secretariat.
(ii) (iii) (iv) (v) (vi)
(viii) (ix) (x) (xi) (xii)
Evaluate expressions of interest received from potential working group chairs and make recommendations to the steering committee on selection of working groups. Identify opportunities for private sector participation in the Energy for All Partnership and conduct outreach with partners from the private sector. Make recommendations to private sector and development partners on partnerdeveloped projects to support. Oversee and facilitate the delivery of support to the steering committee. Assist working group chairs in formation and management of working groups, including the identification of appropriate member organizations and the facilitation of meetings. Oversee and coordinate the delivery of support to working group chairs in preparing and implementing work plans. Provide input on establishing priorities and targets and identifying a program of activities. Convene meetings of working group chairs, if and when required, and ensure coordination and cross-pollination among working groups. Liaise and ensure effective communications between the steering committee and working groups. Implement recommendations of the steering committee. Present the Energy for All Partnership at relevant conferences and events. Oversee the preparation of quarterly reports and a final report detailing project achievements, lessons learned, progress toward target outcomes, and recommendations. Partnership Advisor (international, 3 person-months)
6. The partnership advisor will provide strategic advice and recommendations to ADB and the partnership steering committee on the implementation of the partnership. Tasks will include but not be limited to the following: (i) Advise ADB on activities to be undertaken to achieve the Energy for All Partnership target of providing access to energy to 100 million people in the region by 2015. (ii) Provide inputs to ADB to attract resources to support partnership activities and identify additional sources of support. (iii) Prepare a strategy for selection working groups and detailed operational guidelines for working groups. (iv) Make recommendations to private sector and development partners on partnerdeveloped projects to support. 3. Monitoring and Evaluation Specialist (international, 4 person-months)
7. The tasks of monitoring and evaluation specialist will include but not be limited to the following: (i) (ii) Develop and refine the monitoring and evaluation protocol for the partnership. Assist partners, if required, in effectively tracking outputs, outcomes, and impact that contribute to the overall partnership goal of extending access to energy to 100 million people in the region by 2015. Assist working group chairs in gathering data and monitoring progress of working groups. Track trends in access-to-energy investment and number of households impacted. Assist in the preparation of quarterly progress reports and a final report.
(iii) (iv) (v)
Access-to-Energy Experts (national, 24 person-months)
8. The access-to-energy experts1 will primarily support working groups formed under the Energy for All Partnership. Specific activities to be undertaken by the consultants will include: (i) With the team leader, assist working group chairs in formation and management of working groups, including the identification of appropriate member organizations and facilitation of meetings. Support working group chairs in preparing and implementing work plans. With the team leader, provide input on establishing priorities and targets and identifying a program of activities, and provide support in conducting activities. Assist working group chairs in gathering data and monitoring progress of working groups. Under the framework of working groups, provide inputs to regional partners on project development, and facilitate links with experts, resource persons, and sources of finance. Support working groups to assess gender dimensions of projects and incorporate gender equity into project design. Design and implement workshops, technical exchanges, and training programs, as required, within working groups. Coordinate with communications specialist to ensure that working group findings are communicated and disseminated through the partnership’s newsletter, website, and other relevant channels, including through local business, financial, and nongovernment organization networks and associations. Prepare feasibility studies for access-to-energy projects identified through working groups. Facilitate the involvement of beneficiary communities in working group activities. Track trends in access-to-energy investment and number of households impacted. Conduct studies, as required, exploring the impact of access to energy on poverty reduction and other development indicators. Communications Expert (national, 12 person-months)
(v) (vi) (vii)
(viii) (ix) (x) (xi) 5. 9.
The consultant’s tasks will include: (i) Establish effective communication through various channels, including the internet, publications, promotional material, and a newsletter, and disseminate to Energy for All Partnership partners. (ii) Provide input to ADB on content for the Partnership website, which will serve as an information clearing-house on access to energy in Asia and the Pacific and will facilitate the exchange of knowledge among practitioners through collaborative IT tools. (iii) Provide inputs and content to ADB for partnership newsletters. (iv) Identify existing regional case studies and/or produce new case studies for dissemination to partners and on website. (v) Ensure the delivery of information and communications to the community-level. (vi) Prepare briefing notes. (vii) Draft sections of partnership annual report. (viii) Assist in the organization of selected partnership events. (ix) Conduct outreach and liaise with stakeholders.
International access-to-energy experts may also be engaged to supplement national experts if needed.