The TA supports ADB's Energy for All Initiative, which develops new approaches for scaling up access to energy for the poor, in line with ADB's commitment to inclusive and environmentally sustainable growth.
The TA will pilot test the SMB approach to increase the number of improved water mills by helping poor households gain access to local financing, technology, and know-how to enable financially viable but nonbankable projects to become bankable. The key feature of the SMB approach is the establishment of a revolving fund to provide a menu of "gap-filling" finance (e.g., equity, debt, bridge financing, lease-toward-purchase, and partial credit guarantees) to entrepreneurs to mobilize local financing for income-generating, small-scale energy investments.
| Project Name | Increasing Access to Energy in Rural Nepal | ||||||||
| Project Number | 43299-012 | ||||||||
| Country | Nepal |
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| Project Status | Closed | ||||||||
| Project Type / Modality of Assistance | Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Partnerships |
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| Sector / Subsector | Energy / Renewable energy generation - small hydro |
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| Gender Equity and Mainstreaming | |||||||||
| Description | The TA supports ADB's Energy for All Initiative, which develops new approaches for scaling up access to energy for the poor, in line with ADB's commitment to inclusive and environmentally sustainable growth. The TA will pilot test the SMB approach to increase the number of improved water mills by helping poor households gain access to local financing, technology, and know-how to enable financially viable but nonbankable projects to become bankable. The key feature of the SMB approach is the establishment of a revolving fund to provide a menu of "gap-filling" finance (e.g., equity, debt, bridge financing, lease-toward-purchase, and partial credit guarantees) to entrepreneurs to mobilize local financing for income-generating, small-scale energy investments. |
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| Project Rationale and Linkage to Country/Regional Strategy | ADB's country strategy and program (CSP) for Nepal is focused on providing access to economic opportunities to foster-based growth, with a special focus on the needs of the poor and excluded in rural areas. | ||||||||
| Impact | Access to sustainable, reliable and affordable modern energy services improved in target communities in Nepal | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Results of social merchant banking (SMB) approach to financing improved water mills demonstrate the viability of scaling up access to energy projects |
| Progress Toward Outcome | Implementation is ongoing. The TA consultants have identified geographical areas to benefit from SMB financing through the IWM program. These will be engaged and targeted upon the establishment of the revolving fund. The Clean Energy Development Bank (CEDB) was selected as the host of the revolving fund through competitive procedure and pursuant to the criteria stipulated in the TA. |
| Implementation Progress | |
| Description of Project Outputs | SMB model piloted in some IWMP districts Capacity built among local partners, e.g., entrepreneurs and microfinance and financial institutions, to implement sustainable energy service delivery programs Revolving fund capitalized and deployed on a pilot basis to provide gap-filling finance for energy service investments. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Both the international consultant, with direct experience in applying the social merchant banking approach, and the national consulting firm - CRT/N are officially on board. Minor changes in implementation arrangement were approved by Director, SAEN on 26 Feb 2013 to reflect the following: (i) CEBD as the host of the revolving fund; (ii) APF in lieu of IA; (iii) reallocation of TA funds; and (iv) extension of TA closing till 30 Oct 2013. |
| Geographical Location | |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Consultation with project stakeholders will be an important part of project implementation. These will be consulted through design and into implementation. |
| During Project Implementation | Consultation with stakeholders will continue throughout implementation of the project. |
| Business Opportunities | |
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| Consulting Services | The TA will require a total of 29 person-months of international and national consultancy services. This will include the services of 1 international small-scale infrastructure financing expert for 9 person-months, who will be selected as an individual consultant directly or through a firm. It also requires a total of 20 person-months of national consultancy services to be provided by the Centre for Rural Technology, Nepal (CRT/N), which will be engaged as a national consulting firm on the basis of single-source selection and biodata technical proposal. The combination of international and national consultants retained were engaged by ADB in accordance with its Guidelines on the Use of Consultants (2007, as amended from time to time). |
| Responsible ADB Officer | Zhang, Hongwei |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Energy Division, SARD |
| Executing Agencies |
Alternative Energy Promotion Center (AEPC) Khumaltaar Heights Lalitpur Sub Metropolitan City Nepal |
| Timetable | |
|---|---|
| Concept Clearance | 03 Jul 2009 |
| Fact Finding | 15 Jul 2009 to 22 Jul 2009 |
| MRM | - |
| Approval | 05 Mar 2010 |
| Last Review Mission | - |
| PDS Creation Date | 17 Mar 2010 |
| Last PDS Update | 31 Mar 2014 |
TA 7504-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 05 Mar 2010 | 08 Apr 2010 | 08 Apr 2010 | 31 Oct 2012 | 30 Oct 2013 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 0.00 | 933,000.00 | 170,000.00 | 0.00 | 0.00 | 0.00 | 1,103,000.00 | 05 Mar 2010 | 169,215.97 |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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| Title | Document Type | Document Date |
|---|---|---|
| Increasing Access to Energy in Rural Nepal: Technical Assistance Completion Report | TA Completion Reports | Sep 2015 |
Safeguard Documents See also: Safeguards
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