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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 – Asian Development Bank


CEEDS – Clean Energy and Environment Database System
DMC – developing member country
MDG – Millennium Development Goal
RSID – Sustainable Infrastructure Division
TA – technical assistance

TECHNICAL ASSISTANCE CLASSIFICATION

Type – Regional—Project preparatory technical assistance (R–PPTA)


Targeting classification – General intervention
Sector (subsectors) – Energy (renewable energy, microfinance, land-based natural
resource management)
Themes (subthemes) – Economic growth (widening access to markets and economic
opportunities), social development (human development),
environmental sustainability (natural resources conservation)
Climate change – Climate change mitigation
Location impact – Rural (high), urban (medium), national (medium), regional (medium)
Partnership – Asian Clean Energy Fund under the Clean Energy Financing
Partnership Facility

NOTE

In this report, "$" refers to US dollars.

Vice-President U. Schaefer-Preuss, Knowledge Management and Sustainable


Development
Director General X. Yao, Regional and Sustainable Development Department (RSDD)
Director G. Kim, Sustainable Infrastructure Division, RSDD

Team leader J. Acharya, Climate Change Specialist (Energy), RSDD


Team members 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.
I. INTRODUCTION

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 vice-
president 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 off-

1
ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 2008–2020.
Manila.
2
ADB. 2009. Energy Policy. Manila.
3
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).
4
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 off-
grid 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 one-
off 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 off-
grid 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.

5
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.
6
ADB. 2009. Establishment of Energy for All Partnership (E4ALL). Manila.
3

III. THE PROPOSED TECHNICAL ASSISTANCE

A. 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 end-
user financing.
(ii) 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.
(iii) 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.
(iv) 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 Potential Intervention


Bangladesh Expanding access to piped natural gas among the urban poor, rural electrification
through micro-hydro

Bhutan Biogas development

Cambodia Rural electrification through small wind power

Indonesia Outer island off-grid rural electrification through solar energy, kerosene to liquefied
petroleum gas fuel switching for the poor

Lao People's Democratic Biogas development, small wind power development


Republic

Nepal Rural energy access through micro-hydro (including improved water mills), small
wind power development

Pakistan Biogas development

Philippines 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
7
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.
8
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 quality-
and 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.

9
ADB. 2008. Technical Assistance Disbursement Handbook. Manila.
6 Appendix 2

DESIGN AND MONITORING FRAMEWORK


Performance Targets
Design Data Sources and Assumptions
and Indicators with
Summary Reporting Mechanisms and Risks
Baselines
Impact Assumptions
Improved economic, Electricity and energy DMC energy data and There is continued regional
environmental, gender, use indicators, national reports collaboration to address
and health conditions economic and energy poverty.
among the poor in income growth rates Human Development
participating DMCs for men and women, Index Public, private, and donor
and health status of resources to improve access
men and women in DMC data and donor to energy are available.
poor communities organization reports on
MDGs DMCs have the political will
Improvement in to increase access to modern
meeting the MDGs Surveys carried out by energy services for the poor
DMCs and donor to meet MDGs.
organizations
Outcome Assumptions
Increased number of Increase in number of DMC data, surveys, and Energy access is a priority for
projects that deliver new households with reports DMCs.
access to modern, connections to
reliable, and clean modern energy International Energy Private sector and financial
energy services to the services for electricity Agency and donor institutions see energy
poor or cooking and organization data and access as a potential
heating reports untapped business
opportunity.
Higher electrification
rates in participating Risks
DMCs Governments in the region
will be preoccupied by other
Reduction in time development priorities.
used by women and
children, especially Private sector and financial
girls, for energy institutions will prefer larger
collection and energy investments.
provision

Decrease in number
of households
dependent on
biomass for cooking
and heating
Outputs Assumptions
1. ADB investment in Increase in both ADB RRPs, monitoring Participating DMC
access to energy number of ADB reports, and project governments are committed
increased projects with completion reports to implementing projects to
components increase access to modern
addressing access to Donor and other energy services.
energy and in organization reports
investment amount Financial institutions see a
per project DMC data and reports business opportunity in
lending for energy access
Appendix 2 7

Performance Targets
Design Data Sources and Assumptions
and Indicators with
Summary Reporting Mechanisms and Risks
Baselines
2. Selected DMCs At least one project Energy sector investment enterprises and investments
helped in analyzing developed in each data and reports and have sufficient technical
options for providing selected high-impact know-how to participate in
universal access to DMC Energy for All Partnership access to energy projects.
electricity, and a reports
pipeline of projects The private sector sees
generated business opportunity in the
provision of small-scale
3. Capacity of the Capacity of at least energy services and
participating host 200 officials from products.
country governments, government, private
private sectors, sector, financial Access to energy is a priority
financial institutions, institutions, and civil for target communities and
and civil society to society to implement they are willing to take part in
design, implement, and access-to-energy planning, constructing,
monitor energy access programs enhanced financing, and/or managing
projects is increased through workshops, energy systems.
technical exchanges,
and training programs Private sector and donors
see value in a regional
4. Regional partnership At least 30 scaling-up partnership approach and are
for scaling up access to projects identified and willing to contribute resources
energy incubated and implemented through to sustain it.
established as an the Energy for All
independent entity Partnership, about half Risks
of which are There is weak local
supported by ADB institutional and regulatory
support for improving access
Additional resources to energy.
mobilized to sustain
Energy for All Financial institutions are not
Partnership after 2 willing to lend at key points
years 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.
8 Appendix 2

Activities with Milestones Inputs


1.1 Access to energy expert (international consultant) recruited. By ADB:
month 3 - Significant inputs by ADB staff in TA
1.2 Inputs provided to operations departments, including both energy management
and non-energy divisions, to identify, design, implement, and monitor
access to energy projects. Ongoing. - 65 person-months of international
1.3. In consultation with operations departments, opportunities for consultants, and 66 person-months of
developing access to energy projects are identified in the ADB project national consultants
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 Government:
projects implemented upscale or replicate an approach previously - Commensurate efforts by government
implemented with the assistance of ADB or other partners in Energy for All personnel in coordinating TA activities
Partnership.
1.4 Operations departments assisted in the preparation of gender action Beneficiaries:
plans for access to energy projects. Ongoing. - Entrepreneurs and households are
1.5. Information on best practice models and approaches for scaling up willing to contribute equity and
access to energy disseminated to ADB project officers. Ongoing. or/materials and labor to energy
1.6. Partnerships to develop, finance, implement, and monitor access to service investments.
energy projects are facilitated through the Energy for All Partnership.
Ongoing. Financial and in-kind contributions from
1.7 ADB access to energy investment and impacts monitored. Ongoing. private sector and other partners to
Energy for All Partnership projects and
2.1 Selected DMCs identified for assistance analyze options for activities
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-to-
energy 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.
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
Appendix 2 9

INITIAL POVERTY AND SOCIAL ANALYSIS


Country and Project Regional: Empowering the Poor through Increasing Access to Energy
Title:

Lending or Financing Project Department and Regional and Sustainable Development Department/
Modality: Division: Sustainable Infrastructure Division

I. POVERTY ISSUES
A. 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. Targeting Classification
1. Select the targeting classification of the project:

General Intervention (GI) Individual or Household (TI-H); Geographic (TI-G); Non-Income MDGs (TI-M1, M2, etc.)

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.
10 Appendix 2

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 Empowerment

4. Will a consultation and participation plan be prepared? Yes No Please explain.

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


Appendix 2 11

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS


Significant/Limited/ Plan or Other Action
Issue Nature of Social Issue No Impact/Not Known Required
Involuntary Resettlement The project will indirectly The project is category C. Full Plan
support the construction No impact is expected from Short Plan
and/or installation of various ensuing projects. Resettlement Framework
types of small-scale energy No Action
infrastructure through Uncertain
ensuing projects (e.g.,
household biogas digesters,
solar photovoltaic panels,
small-scale wind turbines,
improved water mills). No
involuntary resettlement is
expected.
Indigenous Peoples 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

Labor The project will assist in No impact. Plan


Employment Opportunities creating local employment Other Action
Labor Retrenchment opportunities. No Action
Core Labor Standards Uncertain
Affordability Increased access to energy Issues related to affordability Action
may require introduction of and willingness to pay will be No Action
user charges. explored during the Uncertain
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.
Other Risks and/or No impact 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
consultation and participation during the TA or due diligence? Yes No If no, please explain why.

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.
12 Appendix 3

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
Established by the Government of Japan and administered by the Asian Development Bank.
b
Includes computers, printers, software, and accessories.
c
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.
Appendix 4 13

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.
(ii) Review the energy programs on the ADB pipeline and explore possibilities for
carrying out activities to increase access to modern energy services.
(iii) Disseminate information on TA activities and support that can be provided by the
regional partnership to potential partners.
(iv) Prepare knowledge management products, distilling best practices and lessons
learned from ADB’s experience in promoting access to energy.
(v) Provide inputs to partners in developing access-to-energy projects, mainly on
financing issues.
(vi) Facilitate discussions among partners and promote the formation of partnerships to
develop access-to-energy projects.
(vii) 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.
(viii) Track the development of projects through the Energy for All Partnership for
potential ADB investment opportunities.
(ix) Gather and analyze information on project development, financing, and
technological trends in off-grid energy and clean and efficient fuels for cooking and
heating.
(x) Ensure that ADB access to energy projects incorporate co-benefits, including health,
gender, climate change mitigation, and the environment.
(xi) 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.
(xii) 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.
(xiii) Assist working group chairs in implementing activities.
(xiv) Present ADB’s access-to-energy activities at various meetings and events.
(xv) Track the activities being carried out by other organizations for increasing access to
energy and explore possibilities for cooperation and collaboration.

2. Access-to-Energy Technology Specialists (international, 12 person-months)

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:
14 Appendix 4

(i) 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.
(ii) 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.
(iii) Assist ODs to review immediate energy access investment opportunities in selected
ADB's DMCs and prepare estimates of the access-to-energy investment
requirements.
(iv) Provide technical inputs to working groups and members of the partnership as
needed.

3. Access-to-Energy Financing Specialists (international, 12 person-months)

3. 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.
(ii) Assess household ability to pay for energy services, determine subsidy level
required, and design subsidy delivery mechanisms.
(iii) Assess gender dimensions of financing interventions to increase access to energy
and ensure gender equity is incorporated into project design.
(iv) Identify appropriate financing mechanisms (including credit provision, credit
enhancement, revolving funds, output-based aid) for ADB-assisted access-to-
energy projects and design detailed operational guidelines and implementation
arrangements.
Appendix 4 15

(v) Design and implement capacity-building activities for local financial and
microfinance institutions.
(vi) Following ADB’s guidelines, carry out economic and financial analyses of access-to-
energy projects.
(vii) Recommend risk mitigation instruments to limit the distortion of local lending
markets by financing mechanisms introduced by ADB-assisted projects.
(viii) 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.

4. Communications and Project Administration Assistant (national, 30 person-


months)

4. The consultant will assist the team of international and national consultants by undertaking
the following activities:

(i) Field and direct requests pertaining to ADB’s access-to-energy activities.


(i) Maintain project documentation and records.
(ii) Maintain and update the TA website.
(iii) Assist in the preparation of a newsletter and other public awareness material
promoting TA activities.
(iv) Collect, verify, and compile data on access to energy for use in presentations and
reports.
(v) Assist in the preparation of annual and final reports.
(vi) Regularly research and verify key issues and latest developments in access to
energy that are relevant to ADB.
(vii) Maintain an accurate record of ADB’s investment in approved projects with access-
to-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.
(viii) Help draft access-to-energy communication materials (presentations, brochures,
briefing notes, speeches, etc.).
(ix) 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.
(x) Ensure that all access-to-energy communications developed have been proofread
and follow ADB standard formatting.
(xi) 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.

B. 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.
16 Appendix 4

(ii) Evaluate expressions of interest received from potential working group chairs and
make recommendations to the steering committee on selection of working groups.
(iii) Identify opportunities for private sector participation in the Energy for All Partnership
and conduct outreach with partners from the private sector.
(iv) Make recommendations to private sector and development partners on partner-
developed projects to support.
(v) Oversee and facilitate the delivery of support to the steering committee.
(vi) Assist working group chairs in formation and management of working groups,
including the identification of appropriate member organizations and the facilitation
of meetings.
(vii) 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.
(viii) Convene meetings of working group chairs, if and when required, and ensure
coordination and cross-pollination among working groups.
(ix) Liaise and ensure effective communications between the steering committee and
working groups.
(x) Implement recommendations of the steering committee.
(xi) Present the Energy for All Partnership at relevant conferences and events.
(xii) Oversee the preparation of quarterly reports and a final report detailing project
achievements, lessons learned, progress toward target outcomes, and
recommendations.

2. 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 partner-
developed 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) Develop and refine the monitoring and evaluation protocol for the partnership.
(ii) 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.
(iii) Assist working group chairs in gathering data and monitoring progress of working
groups.
(iv) Track trends in access-to-energy investment and number of households impacted.
(v) Assist in the preparation of quarterly progress reports and a final report.
Appendix 4 17

4. 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.
(ii) 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.
(iii) Assist working group chairs in gathering data and monitoring progress of working
groups.
(iv) 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.
(v) Support working groups to assess gender dimensions of projects and incorporate
gender equity into project design.
(vi) Design and implement workshops, technical exchanges, and training programs, as
required, within working groups.
(vii) 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.
(viii) Prepare feasibility studies for access-to-energy projects identified through working
groups.
(ix) Facilitate the involvement of beneficiary communities in working group activities.
(x) Track trends in access-to-energy investment and number of households impacted.
(xi) Conduct studies, as required, exploring the impact of access to energy on poverty
reduction and other development indicators.

5. Communications Expert (national, 12 person-months)

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.

1
International access-to-energy experts may also be engaged to supplement national experts if needed.