Pro-Poor Public-Private Partnerships for Rural Energy Services National Feasibility

Parakram Pyakurel [AEPC] and Sarita Gurung [Rural Empowerment Society]

Nepal

REGIONAL TRAINING WORKSHOP ON WIDENING ACCESS TO ENERGY SERVICESTHROUGH PRO-POOR PUBLIC-PRIVATE PARTNERSHIPS

25-27 SEPTEMBER 2013, UNCC, BANGKOK, THAILAND

Outline• Objective of Feasibility Assessment

• Methodology of Assessment

– Review of Shortlisted Sites [from concept note]

– Stakeholder Consultations

– Weight-ages for Site Rankings

• 5Ps: National Feasibility

– Assessment Findings: Key Challenges

– Site Rankings + Next Steps

• Private Sector Solicitation Process

Objective of Feasibility Assessment

• To identify potential sites for project development under 5P business model

• To facilitate private investment in rural areas

• To facilitate a pro-poor business plan development

Methodology of AssessmentReview of Shortlisted Sites [from concept note]

• Concept note had shortlisted 4 sites: Raksirang, Mahadevsthan, Raigaun and Tahanun (Bhirkot)

• All the 4 sites visited - baseline information on socio-economic status and energy use gathered

• Local renewable energy resources and technology identified

• Willingness of local community for project development assessed

Methodology of AssessmentStakeholder Consultations

• The national concept note envisions following stakeholders:

o Local Community

o Private Investor

o Bank

o NGO

o Local government

• Consultations carried out with all stakeholders to identify their concerns

• Consultations with local government bodies such ad DDC and VDC for legal feasibility and facilitation

Methodology of AssessmentWeight-ages for Site rankings

Equal weight-ages have been given to all the key factors

5P Project Sites

5P Project Sites

5Ps: National FeasibilityAssessment Findings: Key Challenges (Raksirang)

• Low business volume because of low electricity demand

• Very low profit to private companies as this village is resided by poor Chepang community who cannot afford to consume high electrical energy

• Difficulty in site accessibility. Vehicles cannot reach the site and 2-3 hours of walk uphill is required.

5Ps: National FeasibilitySite Rankings + Next Steps (Raksirang)

Next Steps:•Preparation of detailed business plan including BOQ and economic assessment•Contract drafting and signing among concerned parties•Project implementation

5Ps: National FeasibilityAssessment Findings: Key Challenges (Bhirkot)

• Some houses already have functional solar home system for electrification

• Finding productive end uses of electricity is challenging if solar mini-grid of low system sizing is installed

5Ps: National FeasibilitySite Rankings + Next Steps (Bhirkot)

Next Steps:•Evaluation against recently found site in Baidi of same district for project execution•Final decision to whether execute project in this site or Baidi

Private Sector Solicitation ProcessPrivate Sector Solicitation Process

• Discussions carried out on Investor Forum (Feb 8, 2013)

• Questionnaire prepared to assess private sector’s concern

• Request for Proposal (RFP) sought from private sector (June 22, 2013)

• Solicitation ongoing to develop business plan

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