Regional: Development of a Legal Framework and Documentation Conducive to Viable Private Sector Renewable Energy and Energy Efficiency Projects

Sovereign Project | 54049-001

The knowledge and support technical assistance (TA) will assist ADB's developing member countries (DMCs) in creating a legal and regulatory framework which is conducive to the development of renewable energy and energy efficiency projects which meet the basic commercial viability and bankability requirements of national and international private sector investors. Additionally, the TA will assist with the development of market-standard legal templates for project documents and bidding documents and related procedures for public tenders for concessions. Further, recognizing the importance of predictable, rule-of-law based legal regimes for investor confidence, the TA will support the creation of regulatory frameworks which encourage investment in energy efficiency projects and projects which support the transition to electric transport.

Project Details

  • Project Officer
    Quaggiotto, Daniele
    Office of the General Counsel
    Request for information
  • Country
    Regional
  • Sector
    • Energy
Project Name Development of a Legal Framework and Documentation Conducive to Viable Private Sector Renewable Energy and Energy Efficiency Projects
Project Number 54049-001
Country Regional
Bhutan
Indonesia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 6689-REG: Development of a Legal Framework and Documentation Conducive to Viable Private Sector Renewable Energy and Energy Efficiency Projects
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming No gender elements
Description The knowledge and support technical assistance (TA) will assist ADB's developing member countries (DMCs) in creating a legal and regulatory framework which is conducive to the development of renewable energy and energy efficiency projects which meet the basic commercial viability and bankability requirements of national and international private sector investors. Additionally, the TA will assist with the development of market-standard legal templates for project documents and bidding documents and related procedures for public tenders for concessions. Further, recognizing the importance of predictable, rule-of-law based legal regimes for investor confidence, the TA will support the creation of regulatory frameworks which encourage investment in energy efficiency projects and projects which support the transition to electric transport.
Project Rationale and Linkage to Country/Regional Strategy

Many DMCs have experienced several years of sustained economic growth which has led to an increase in power demand and consumption. The sustained period of growth has come at a great environmental expense and has made air pollution a major risk to public health and driven up energy-related carbon dioxide emissions.

UN Sustainable Development Goal 7 highlights the urgent need for an increase in renewable energy use and for the adoption of energy efficiency measures to reduce the reliance on fossil fuels by the energy industry. Renewable energy and energy efficiency are central to achieving these international goals. Transitioning to a green, climate resilient economy is paramount to ensure that DMCs can reduce their greenhouse gas emissions and better hedge against climate change risks. Governments of the DMCs do not have the financial resources to cover the scale of investments required to support the creation of a more sustainable and greener economy. One way to help DMCs to fill the funding gap for the expansion of renewable energy and energy efficiency is to attract financing and expertise from private sector developers and investors through the creation of a favourable regulatory environment and the introduction of support schemes.

Creating a legal and regulatory framework that is clear and predictable is key to attracting interest from international developers and financiers. In the case of energy efficiency projects, clear regulations introducing mandatory energy efficiency standards and appropriate incentives to adopt energy efficiency measures are crucial to create a legal environment that reduces the cost of the financing provided by banks.

The proposed TA is consistent with ADB Strategy 2030, which (i) identifies tackling climate change and enhancing environmental sustainability as operational priorities; (ii) includes preparing viable and bankable private sector projects and scaling up support for public-private partnerships as part of its efforts to expand private sector operations; and (iii) recognizes the need for differentiated approaches to groups of countries.

Impact Increased deployment of renewable energy sources and energy efficiency improvements in the energy mix of selected DMCs
Project Outcome
Description of Outcome A legal and regulatory framework conducive to the development of renewable energy and energy efficiency projects that meet the basic viability and bankability requirements of national and international private sector investors
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Gap analysis of the legislative and regulatory framework that governs renewable energy or energy efficiency projects in the DMCs undertaken

Amendments to existing legislation or regulations, or new legislation or regulations drafted based on the results of the gap analysis under output 1

Standard documentation that meets the requirements for bankability and/or standards of international best practice drafted

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Bhutan - Nation-wide; Indonesia - 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
Responsible ADB Officer Quaggiotto, Daniele
Responsible ADB Department Office of the General Counsel
Responsible ADB Division Office of the General Counsel
Executing Agencies
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
Timetable
Concept Clearance 19 Nov 2020
Fact Finding 07 Dec 2020 to 12 Dec 2020
MRM -
Approval 18 Dec 2020
Last Review Mission -
Last PDS Update 18 Dec 2020

TA 6689-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Dec 2020 - 18 Dec 2020 31 Dec 2023 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 18 Nov 2021 0.00

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

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Related Publications

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The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

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Contracts Awarded

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Procurement Plan

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