fbpx 48435-005: Promoting Sustainable Energy for All in Asia and the Pacific - Project Development and Investment Facilitation (Subproject D) | Asian Development Bank

Regional: Promoting Sustainable Energy for All in Asia and the Pacific - Project Development and Investment Facilitation (Subproject D)

Sovereign (Public) Project | 48435-005 Status: Active

Asia and the Pacific is the region with the majority of the energy poor globally. The International Energy Agency estimates that around 600 million people or half of people without access to electricity globally live in the region. The region also has the highest number of people who are dependent on traditional solid fuels for cooking 1.8 billion out of a global total of 2.6 billion. Dependence on burning traditional solid fuels has dramatic impacts on the health of the people, particularly women and children.

SE4ALL was launched by the United Nations Secretary General in September 2011 to achieve three inter-related goals by 2030: (1) Ensuring universal access to modern energy services; (2) Doubling the global rate of improvement in energy efficiency; and (3) Doubling the share of renewable energy in the global energy mix.

 
Project Name Promoting Sustainable Energy for All in Asia and the Pacific - Project Development and Investment Facilitation (Subproject D)
Project Number 48435-005
Country Regional
Cambodia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8954-REG: Promoting Sustainable Energy for All in Asia and the Pacific - Project Development and Investment Facilitation (Subproject D)
Government of Austria US$ 738,000.00
TA 8954-REG: Promoting Sustainable Energy for All in Asia and the Pacific - Project Development and Investment Facilitation (Subproject D) (Supplementary)
Strategic Climate Fund US$ 300,000.00
TA 8954-REG: Promoting Sustainable Energy for All in Asia and the Pacific - Project Development and Investment Facilitation (Subproject D) (Supplementary)
Clean Energy Fund under the Clean Energy Financing Partnership Facility US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Asia and the Pacific is the region with the majority of the energy poor globally. The International Energy Agency estimates that around 600 million people or half of people without access to electricity globally live in the region. The region also has the highest number of people who are dependent on traditional solid fuels for cooking 1.8 billion out of a global total of 2.6 billion. Dependence on burning traditional solid fuels has dramatic impacts on the health of the people, particularly women and children.

SE4ALL was launched by the United Nations Secretary General in September 2011 to achieve three inter-related goals by 2030: (1) Ensuring universal access to modern energy services; (2) Doubling the global rate of improvement in energy efficiency; and (3) Doubling the share of renewable energy in the global energy mix.

Project Rationale and Linkage to Country/Regional Strategy

The Asia and the Pacific region faces the twin challenges of energy security and climate change challenges which ADB's 2009 Energy Policy discusses at length and outlines ADB's response of broadening support for, and accelerating development of, clean energy: renewables and energy efficiency. ADB, through its Clean Energy Program and Energy for All Program has been supporting its Developing Member Countries (DMCs) in promoting renewable energy, energy efficiency and energy access in terms of stakeholder engagement, capacity building, and investment facilitation. ADB's annual investment for clean energy has been over $2 billion since 2011.

The TA aims to support the promotion of renewable energy, energy efficiency and energy access in ADB's DMCs in line with ADB's Energy Policy, and to achieve ADB's long term strategic goals of sustainable energy development. This includes, but is not limited to targeted support for development of road maps, investment prospectuses, projects identification and development, investment facilitation and information sharing in selected DMCs. By pursuing these targets, ADB will contribute to the achievement of the goals of the global Sustainable Energy for All Initiative (SE4ALL).

Impact SE4ALL targets in Asia and the Pacific achieved
Project Outcome
Description of Outcome Increased readiness of sustainable energy for all projects
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Pipeline of projects developed and investment facilitated
Status of Implementation Progress (Outputs, Activities, and Issues)

Status of Implementation Progress

The TA aims to achieve the Sustainable Energy for All 2030 Goals through (i) the development of a pipeline of investment-worthy projects in the energy access, energy efficiency and renewable energy sectors (the _clean energy sector_) in Asia and the Pacific; (ii) building a network of venture capital funds, private equity funds and finance institutions (the _Investors_) that are committed to funding clean energy; (iii) providing business development and investment facilitation support to clean energy companies; (iv) preparing and approving a renewable energy investment plan for Cambodia; and (v) enhancing capacity of the Government of Cambodia in renewable energy policy and investment planning.

Completed/Ongoing Activities:

Key activities and outputs of the TA are being successfully implemented as below:

A Business Development Workshop for Energy Service Companies (ESCOs) was co-organized under the TA from 26 to 28 July 2016 with the EU Switch-HEMs Program and TA 8018. This workshop conducted deep dive modules on the technical, financial and legal aspects of developing an energy efficiency project. Its target market were motor rewinding companies, equipment suppliers and engineering firms. These organizations already possessed the technical knowhow to implement an energy efficiency project but were one step removed from becoming an ESCO. As an outcome of this workshop, Energy for All trained 13 companies, out of which 11 committed to implement an ESCO project by December 2017.

On February 2017, the TA co-funded a regional clean technology accelerator and business plan competition called the Asia Forum for Clean Energy Financing (AFCEF). Through this event, Energy for All identified 40 sustainable energy companies from the applicant pool. TA 8954 also conducted two Sustainable Energy for All Forums in Myanmar and the Philippines on 9 May and 5 June 2017, respectively. Both events enabled Energy for All to reach out and identify 34 sustainable energy companies. In total, TA 8954 identified 74 sustainable energy companies during the first half of 2017. To date, Energy for All has identified 209 sustainable energy companies in the Asia Pacific Region. To minimize the administrative burden of tracking the status of each company, Energy for All developed the Energy for All Platform (the Platform), which enables it to crowdsource the acquisition and updating of project information within the Energy for All Partnership. Using this mechanism, TA 8954 has crowdsourced the completion and publication of 45 Project Profiles. Out of the 40 companies that were identified during AFCEF 2017, 20 of them were shortlisted to receive 1-on-1 business coaching support from mentors over a six-month cycle. This process was co-funded by ADB through the Energy for All Program. On 10 February 2017, the 12 most mature companies were given the opportunity to deliver an investment pitch to investors in Singapore.

On 27- 29 November 2017, TA 8954 and TA 8953 jointly organized a workshop for mini-grid project developers in Myanmar. Over 100 participants attended the three-day workshop from private sector organizations, non-profits organizations, multilateral agencies, and academe. 29 private sector organizations expressed interest to receive project development and investment facilitation support from ADB's Energy for All Program.

The TA conducted a deep dive module on energy efficiency for the Development Bank of the Philippines on 2-3 May 2017 to improve the bank's capability to assess loan applications from ESCOs. The workshop was conducted through a case method, wherein an active ESCO project was used as the primary discussion material. Energy for All provided expertise to refine the financial model of the ESCO project being used as the case study. A total of 16 bank officers participated in the workshop. This approach was particularly beneficial to DBP's in-house engineers who were tasked to conduct technical due diligence on all energy efficiency applications within the bank. As a follow-on activity, DBP requested Energy for All's assistance to review the terms and conditions of an energy efficiency facility that is about to be proposed to the board.

The TA also conducted the Bank Training on Mini-Hydropower Financing workshop in Nagarkot, Nepal on 17-18 January 2018. A total of 35 participants from the Alternative Energy Promotions Center Nepal, Local Government, mini-hydropower sector and the commercial banking sector participated the 2-day workshop. Among the commercial banks in attendance are Sunrise Bank Ltd., Century Commercial Bank Ltd., Machhapuchchhre Bank Ltd., Civil Bank Ltd., and the Nepal Investment Bank. The event is part of the broader set of activities of the ADB SASEC Program, which aims to facilitate private sector investment in mini-hydropower projects by providing a CAPEX subsidy to offset the credit risk of the proponent. At the end of the event, 6 mini-hydropower developers were matched to the 9 representatives from the commercial banking sector.

A solar-diesel microgrid was piloted in Malalison Island in Antique, Philippines to demonstrate that partnership with private sector is a viable institutional arrangement for electric cooperatives' that are interested to venture into decentralized generation and distribution. The pilot project also demonstrate how pre-paid metering technology can be utilized by electric cooperatives's to improve collection efficiency in remote areas within their franchise area. On July 2017, Antique Electric Cooperative (ANTECO) concluded its tender for private sector partners and signed a Joint Venture Agreement with One Renewable Energy Enterprises, Inc., a local energy access company. The pilot project is scheduled to be commissioned by 4 April 2019.

The TA has successfully elevated its investment facilitation process online through Entrepreneurs on the Edge. A call for applications for clean energy SMEs in the Asia Pacific Region that are raising funding for the next 6 months is issued every quarter for applicants upload their Project Profile in the Energy for All Platform. The application will then be evaluated and 2-3 companies, with the help of partner Angel Investment Networks, Business Accelerators and ADB Experts. A Podcast interview will be conducted with the shortlisted companies. So far, Entrepreneurs on the Edge reached more than 1,500 clean energy stakeholders and 30 investors.

Planned Activities:

TA 8954 received additional funding of $1 million from the Clean Energy Fund under the Clean Energy Financing Partnership Facility (CEFPF) to provide more meaningful support to finance institutions, credit guarantee institutions and insurance agencies that are active in the clean energy sector in Asia. More specifically, the additional funding will be used to:

" Support Finance Institutions to evaluate and process funding applications from clean energy SMEs. Clean energy small-to-medium sized enterprises (SMEs) across the Asia Pacific Region struggle to access the formal finance sector due to high risk premiums and collateral requirements. The TA seeks to enable Finance Institutions (FIs) to offer more competitive funding packages to clean energy SMEs by giving them access to an external pool of technical and financial experts. This additional resource lowers the cost of due diligence since the professional fees of these experts are partially or fully borne by the TA. More importantly, the additional manpower can enable FIs to process more clean energy transactions without compromising quality. Taken together, these interventions may lead to competitive interest rates and collateral requirements that more closely resemble the actual risk profile of the transaction.

" Increase the clean energy portfolio of Credit Guarantee Institutions and Insurance Agencies (IAs) in the Asia Pacific Region. Credit Guarantee Institutions (CGIs) and Insurance Agencies (IAs) play an instrumental role in lowering the collateral requirements of commercial banks and other FIs. The TA seeks to provide CGIs and IAs access to a pool of technical, financial and legal experts that can increase their capacity to process clean energy transactions. The TA may also match CGIs and IAs that are committed to expanding their clean energy portfolio with concessional funding through the ADB Operations Department.

" Lower the due diligence cost of clean energy investment applications to the ADB Private Sector Operations Department (PSOD). Private companies that are seeking investment from PSOD must cover the cost of due diligence upfront. At approximately $200,000 per transaction, this cost is prohibitive to a significant number of qualified companies that PSOD is interested in. The TA seeks to subsidize up to 50% of the due diligence cost of clean energy applications to PSOD that have significant social and environmental impact, or utilize innovative technologies and business models. The subsidized amount must not exceed $100,000 per transaction. This grant funding may be used to engage relevant experts and shoulder related costs such as travel and accommodations.

Geographical Location Cambodia - Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will mainly finance consulting services and other capacity building activities as well as some small pilots that may be essential to test the model and enhance investor confidence. The TA will require 30 person-months of international and 65 person-months of national consulting services in the areas of technologies, project development, communications etc. Individual consultants will be engaged to be flexible and timely fielded. Some international and national consultants will be engaged in long-term support roles as individual consultants. Engagement of experts will follow ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). Partnership with other agencies such as Private Financing Advisory Network, New Ventures, USAID, GiZ etc. will be established.
Procurement All procurement under the TA will be carried out in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). The disposal of all equipment procured under the TA will follow ADB disposal procedures. Output-based or lump sum contracts will be considered as appropriate where possible to reduce administrative burden and improve efficiency and economy. Disbursements under the TA will be performed in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time).
Responsible ADB Officer Kee-Yung Nam
Responsible ADB Department SDSC
Responsible ADB Division SDSC-ENE
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance -
Fact Finding 28 Sep 2015 to 11 Oct 2015
MRM -
Approval 10 Sep 2015
Last Review Mission -
Last PDS Update 28 Mar 2019

TA 8954-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Sep 2015 - 10 Sep 2015 31 Dec 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,038,000.00 0.00 0.00 0.00 0.00 2,038,000.00 10 Sep 2015 1,039,327.57

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Communicatoins Specialist Individual - Consulting Closed 11 Jan 2019 17 Jan 2019
Sustainable Energy Investment Expert Individual - Consulting Closed 20 Jun 2018 26 Jun 2018
Energy Access Expert Individual - Consulting Closed 12 Jun 2018 18 Jun 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.