BW1J7M Report 1999 23870 February 2001 r r X- MEEMM=11- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ., 4-w vs_.''-'- : 11 ' ,. t VI t ^N r-- FAThcieImre- ct,t; .,t, IteoG eIiiI 1@1ik TABLE OF CONTENTS Mission Statement 2 ESMAP in 1999 4 Donors and Members of the Cousulatative Group, Technical Advisory Group and ESMAP Team S Serving the Energy Poor 6 ESMAP Challenges into the 21st Century 7 The Trends 7 ESMAP and the Energy Poor 8 ESMAP 1999-2001 Business Plan 8 ESMAP Products and Services 10 ESMAP Operations 12 Portfolio Overview 13 Portfolio Trends and Management 14 Project Implementation 20 Governance and Management 24 Consultative Group 25 Technical Advisory Group 26 Management, Staffing and Procedures L 27 Financial Review 30 Funding 31 Contribution Received 31 New Donors 31 Funding Categories 31 Core and Thematic Funding 32 Project Funding 32 Expenditures 33 Funding New Projects 34 Cash Balance 34 List of Abbreviations and Acronyms 35 Annex 1 Final Communique, ESMAP Consultative Group Meeting, Washington, DC, April 12-13, 1999 37 Annex 2 Summary Proceedings, Interim Meeting - The Hague, November 15-16, 1999 41 Annex 3 Activities Completed, Launched and Ongoing in 1999 47 Activities Completed in 1999 47 Activities Launched in 1999 49 Activities Ongoing in 1999 52 Annex 4 Reports on Projects Published in 1999 59 Box 1 Poland: Energy Sector Regulation and Tariffs 15 Box 2 Energy Efficiency Operational Exchange Network 17 Box 3 Uganda: Rural Electrification Strategy Study Box 4 Vietnanm: Environmental and Safety Issues in Gas Development 20 Box 5 Improving Energy Efficiency Through Electricity Demand Management in Ghana, Kenya & Tanzania 21 Box 6 Renewable Energy Strategy and Institutional Strengthening Study in the Arab Republic of Egypt 22 Figure 1 Thematic Distribution of Portfolio 1998-1999 by number of projects 16 Figure 2 Thematic Distribution of Portfolio 1998-1999 in US $ 16 Figure 3 Regional Distribution of Portfolio 1998-1999 by number of projects 16 Figure 4 Regional Distribution of Portfolio 1998-1999 in US $ 16 Figure S Average Project Size 17 Figure 6 ESMAP Themes 17 Figure 7 Value of ESMAP Portfolio 17 Figure 8 Projects in Portfolio 20 Figure 9 ESMAP Receipts 1997-1999 31 Table 1 Thematic Distribution of Ongoing Projects by Region (Number of Projects) 13 Table 2 Thematic Distribution of Ongoing Projects By Region (US Dollar Value) 13 Table 3 Evolution of ESMAP Portfolio (Number of Projects) 14 Table 4 Project Disbursements by Theme as a Measure of Implementation 20 Table S Project Disbursement by Region as a Measure of Implementation 20 Table 6 ESMAP Receipts, 1997-1999 32 Table 7 Core and Thematic Funding - Donor Contributions, 1997-1999 33 Table 8 Receipts by Type of Funding in 1999 33 Table 9 ESMAP Expenses, 1997 - 1999 (thousands US$) 33 PHOTO CREDITS Pages 3,12; World Bank Pages 4,20; Eleodoro Mayorga-Alba Pages 6, 25, 26-27, 30; Henri Bretaudeau Page 7; Masami Kojima Pages 8-9, 14, 24, Richard Spencer Mission Statement -~~ ESMAP focuses on the role of energy in economic development with the objective of contributing to poverty alleviation and economic progress, improving living con- ditions, and pr-eserving the environment in developing and transition economies. The Energy Sector Management Assistance Programme (ESMAP) is a global technical assistance program sponsored by the World Bank and the United Nations Development Programme (UNDP) with financial participation from public and private donors. ESMAP provides policy advice and other technical assistance to help governments, public institutions and private businesses. It focuses on three priority areas; the development of energy markets, the promotion of environmentally sustainable energy production and uses, and the increased access to reliable, efficient and affordable energy services by un-served or under-served populations with a focus on the poorest. Since it was established in 1983, ESMAP has supported more than 500 projects, in more than 100 countries. ESMAP concentrates on issues not yet mainstreamed in the operations of bilateral or multi- lateral development institutions. It aims at designing innovative approaches to address energy issues. ESMAP is a participatory and partnership program which involves local and international institutions and busi- nesses in project formulation and implementation. ESMAP's results--through studies, pilot projects and training--enrich the world's knowledge base for addressing energy issues to the benefit of development and transition economies. 3 ESMAP in 1999 e - 4,l ;'` Donors and Members of the Consultative Group, Technical Advisory Group and ESMAP Team CONSULTATIVE GROUP BELGIUM THE NETHERLANDS General Administration for Development Cooperation Ministry of Economic Affairs Ministry of Foreign Affairs CANADA Canadian International Development Agency UNITED KINGDOM Department for International Development DENMARK Ministry of Foreign Affairs THE WORLD BANK (co-sponsor) ENERGIENED, The Netherlands UNITED NATIONS DEVELOPMENT PROGRAMME (co-sponsor) ENRON INTERNATIONAL FINLAND Ministry of Foreign Affairs TECHNICAL ADVISORY GROUP FRANCE Andrew Barnett Ministry of Foreign Affairs Alfredo Mirkin Jan Moen GERMANY Youba Sokona Bundesministerium fur Wirtschaftliche Zusammenarbeit und Entwicklung ITALY Ministry of Foreign Affairs ESMAP MANAGEMENT & ADMINISTRATIVE TEAM NORWAY Royal Ministry of Foreign Affairs Dominique Lallement, ESMAP Manager Henri Bretaudeau CHAIRMAN OF THE CONSULTATIVE GROUP Brenda Manuel' Richard D. Stern Jacqueline Ajala Joanne Fleming AT-LARGE MEMBERS OF THE CONSULTATIVE GROUP Josefina Regino-Suarez Rufino Bomasang Kazim Saeed Ketane Sithole Kristin McGrath' Jose Goldemberg* Kyung Hee Plusquellec- Edward D. Ayensu Maureen Cuffley Nancy Pinto- POLSKIE GORNICTWO NAFTOWE I GAZONICTWO S.A. (PGNiG) Nyra Guice REPRESENTATIVES FROM SPONSORING ORGANIZATIONS SIEMENS CORPORATION Thomas B. Johansson (UNDP) Suresh Hurry (UNDP) SWEDEN James Bond (The World Bank) Swedish International Development Cooperation Agency SWITZERLAND Department for International Economic Cooperation Resigned in 1999 Until October 1999 Until November 1999 Until July 1999 Serving the Energy Poor r ' pw_4 ESMAP Challenges into the 21 st Century The poor say it themselves: Energy means time saved, from drawing water, transporting biomass fuels, or While economic growth and wealth accumula- crops and foods. Energy means increased productivity in tion continued at a steady pace in industrialized agriculture or small businesses, from sowing to food pro- economies in 1999, the gap in economic and social wel- cessing, small-scale manufacturing. Energy means light- fare between industrialized and developing countries ing, and therefore access to education and additional continued to increase. Developing and transition income: use of night time for supplemental income earn- economies particularly hard hit by the 1997/98 financial ing activities. Energy means access to telecommunica- crises made substantial progress in their recovery. The tions, to radio and information, to labor markets, and for impact on poverty of these international shocks has not the better off, to leisure. As well documented through the lessened. Little or minimum progress was made overall in meeting the energy needs of the developing countries, and least of all, in meeting the needs of the poorest seg- ments of their populations. L The Trends ., The figure of 2 billion people without access to [P- modern energy continues to be quoted in most fora on _. energy issues in developing and transition economies, unfortunately unchanged for the past 5-10 years. a - Meanwhile, population growth has continued, at a pace surpassing the rate at which modern energy services are expanding. This suggest that, in reality, the global figure . of the unserved population may exceed the 2 billion mark. In Africa alone, it is estimated that the proportion of people connected to grid electricity has been halved in ten years, from 10 to 5 percent of the population. Globally, because of a decrease in East Asia, the - Middle East and North Africa, the number of poor has -- remained about constant during the past 10 years. At the W end of 1999, about 24% of the population of the devel- oping world-1.2 billion people-lived on less than one experience in industrialized economies, the availability of dollar a day and 2.8 billion lived on less than 2 dollars a new sources of energy and technologies has been key day. Inequality among regions and countries has both to their economic development and to the progress increased sharply over the last 40 years, with poverty shift- in social welfare. As recognized by Josef Stiglitz, Nobel ing towards South Asia and Sub-Saharan Africa (40% of Laureate, "without energy, there is no way out of poverty." the population in South Asia and 46% in Sub-Saharan Africa live in absolute poverty). The distribution of The body of knowledge generated through income within nations and across individuals is also shift- ESMAP and others field work programs confirms and ing. The current trend in rapid urbanization is also asso- underlines that the poor continue to largely rely on bio- ciated with an increase in the number of urban poor. It is mass energy for one of their most basic needs, that is estimated that the absolute number of poor is increasing cooking. But it also highlights the enormous sacrifices faster in urban than in rural areas. Projections indicate the poor make to access energy, or the premium that the that by year 2035, half the world's poor will be in urban poor are ready to pay for more modern energy, spending areas. For the next decade the majority of the poor will as much as 20% of their cash income for lighting, water still be rural, but urban poverty will be growing fast. sterilization, more efficient cooking, light motorization for productive activities, and for transport. One should not forget also that, that as documented by the World * Ensuring the environmental sustainability of energy Energy Council (WEC), the lack of access to modern services will continue to be key for the poor to access energy means relying more on human energy, in particu- energy services. Over the long-term, the energy poor lar that of women whose about 50% of productive life is are the most affected by the negative impact of certain transport: transport of water, wood or charcoal, crops and environmental damages resulting from the use of pre- food, both in rural and urban areas. vailing energy resources and services. Premature death and increased morbidity from indoor pollution result- Against this backdrop, how will the needs of the ing from biomass or kerosene use is now well-docu- energy poor be met as we enter the 21st Century? mented for Africa and the Indian subcontinent. So are the reductions in children's IQ from air pollution due ESMAP and the Energy Poor to lead in gasoline or poor quality lubricants in two stroke engines in congested peri-urban areas of many The year 1999 confirmed that the challenge of developing regions. To these local pollution issues are meeting the needs of the energy poor-be they countries, communities, households, or individuals- remains, and should remain at the core of ESMAP's mission. It also con- firmed that in many ways, the times have never been better for a global mobilization of expertise, financial, physical and - -.7 - political resources to meet this challenge. At no other time - in the history of the past 50 years, have public and private rT partners and civil society realized the need and been so will- ing to work together. This willingness has become endoge- _ nous to ESMAP. At the end of 1999 ESMAP partnerships included 13 public donors and three private ones. It also included formal or inforrnal cooperation agreements with *« the electricity industry (The E7 Network of Expertise for the Global Environment) and the largest association of energy professionals (WEC). Several new partnerships were in development. - The year 1999 was also the opportunity to fully test the continued relevance of the ESMAP Strategy adopted in 1998. * Facilitating access by identifying solutions to deliver energy services to the poor has to remain at the center of ESMAP's operational work. But for ESMAP to have an impact on a significant scale, it had to move away added global pollution ones. Abuses of biomass from carrying out a collection of scattered micro-activ- resources damage the environment. Distortions in ities and focus on activities generating or amplifying a energy markets also have a pernicious effect by pre- critical mass of knowledge and offering a greater venting affordable penetration of LPG, kerosene, or potential for replicability. renewable energy thus worsening the life of the poor * Assisting in making the energy markets work better already over-relying on biomass for primary energy, and continues to be one of the most effective ways to adding to green house gas emissions. enhance opportunities for the energy poor, both at the macro and at the micro level. More transparent and ESMAP 1999-2001 Business Plan efficient markets are indispensable to increase the availability of energy services, to lower the cost of ener- Taking the view that ESMAP can achieve its gy services and to expand the availability of diversified objectives only through a medium-to-long term commit- sources of sustainable energy. ment to its work program, the ESMAP team prepared, a three-year business plan which was endorsed by the transition economies, and to monitor the impact of Consultative Group (CG) during its 1999 annual meet- energy-environment policies; ing. The Business Plan confirmed that the overarching * policy reform in the power sector, including to liberal- goal of the program is to increase the availability of ener- ize markets for non-conventional energy, and for the gy services for poverty alleviation and social development. oil and gas subsectors; It puts the emphasis on integrating the work on market * energy-environment activities; development with the work on energy access, and * social impact analyses, in particular to assess the social addressing environmental issues in order to ensure an impact of energy market transformations and of energy- increase in the availability of energy services and their environment policies, and also to address the specific sustainability. To achieve its goal, ESMAP will continue to gender issues related to the delivery of energy services. capitalize on its comparative advantage of being a unique * knowledge dissemination activites, including ESMAP's global partnership program. It can access a world-wide vocation to be a transactor of knowledge on its donors' pool of energy experts and therefore enhance knowledge programs. * Innovative, pilot/venture fund type of activities. X _| Expanding on the number and types of partner- }~ ... , - ships will be key to the ability of ESMAP to achieve the objectives of its mission. In 1999, ESMAP has already strengthened its partnership with other trust-funded pro- *..e -; gram managed by the World Bank, in particular ASTAE, - , - ;' . ] rf * - Ff, Z _AFRREI and RTPES, whereby ESMAP finances policy- - . , t 6 l related up-stream activities when these programs are con- , t i centrating on project preparation/investment feasibility ~E~; -.--. -. .... - -S work. It has also initiated a partnership with the World < - - , ;-, S t ~{ S Energy Council in order to capitalize on their infrastruc- ., ,'~ 8 i . iture for knowledge dissemination activities. New partner- ,.Z. .6 ;t N S ships are under discussion with several energy institutes r ' wi; S =J. ~ ' ~-'1 as well as with new potential donors. 2 -. ~- _... ,, _ *,L .~., ~ -As we look ahead into the 21st century, we know we should not tolerate that the gap between the energy poor and the energy-rich countries and people continues to widen. The measure of success for the program will be, therefore, the extent to which it has contributed not only to stop the widening of the gap, but to narrow it. generation and dissemination throughout the develop- ing and transition economies. It can also mobilize public and private partners from developing, transition, and industrialized economies. The business plan also reflects that the demand for support from ESMAP is rising in the following areas: * on-time technical assistance, in particular for testing new institutional and financing delivery mechanisms enhancing access to modern energy services for un- served or under-served areas and populations; * capacity building, to increase the analytical, policy for- mulation and negotiation capabilities needed to attract private sector capital and services in developing and 9 ESMAP Products and Services Knowledge Generation and Dissemination * Conferences, roundtables . Publications * Training, workshops and seminars Technical Assistance * Specific studies * Advisory services . Pilot projects ~> W A U~~~~~~~~~~~~~~~~ A"* | =- *57~~~~~~~~~~~~~~~~~~AA 'A~~~~~~ * AAA ~~AA ~ *A~ A ?&' - , * 1--' 10 region, Africa experienced some contraction in both the number and value of activities over the 1998-1999 period. This is indicative of the difficulties experienced to date in 0 identifying projects with a predominantly environmental 1 99 7 1 998 1 999 focus in Sub-Saharan Africa, whereas in contrast growth in the East Asia/Pacific and Europe/Central Asia portfo- lios was fueled to a significant degree by the uptake of the environmental theme. Figure 6 ESMAP Themes Implementing ESMAP Strategy: Meeting the Needs of the Energy Poor TECHNOLOGY - iP-FR-MBAN &-RURAL RErIEWABLE .,,,,v,,;-~~ ~ ~~~~~~~~~~~~~ v {: I ENVIRONMENT * (, ~~~~EFFICIEU0E TRADE .,.l':...',< e ----- -- - --- 18 Box 3 Uganda: Rural Electrification Strategy Study Issues Uganda offers planners, policy makers, governments, donors, and utilities a surprising and exciting new perspective on rural electrifica- tion. Rural people in Uganda pay high prices for a limited and inefficient supply of modern energy, particularly for electricity. They also use several inefficient forms of energy to make up for the general lack of access to the electric grid. Today, there may be more Ugandans "electrified" through the use of lead-acid batteries, small diesel and petrol generators, or photo- voltaic systems than Ugandans connected to the national grid. About 9 percent of the population-nearly 5 percent of all rural house- holds in the 12 districts surveyed by an ESMAP project-own and operate lead-acid (car) batteries to power their TVs and lights. They spend the equivalent of about $120 per year, including costs for charging, transport to the charging station, and the amortization of the battery, for an average cost of US$3.0 per kilowatt-hour. Furthermore, Ugandan households and businesses have imported generators with over 60 megawatts of cumulative capacity, repre- senting almost one-third of the Uganda Electricity Board's (UEB) installed generating capacity. Ugandan firms generate more than 100 gigawatt-hours per year at an average cost of US$0.19 per kilowatt-hour. With a supportive environment, cost-effective ways could be found to accelerate rural electrification. It would yield great social and economic gains, notably for local businesses. Indeed, one-half of imported generators are used to run agro-processing plants, mills, dairies, and light industries, or to power restaurants, hotels, etc. cre- ating jobs in rural and peri-urban areas. ESMAP's Work The ESMAP Rural Electrification Strategy Study was carried out in two stages. The first, in 1996, conducted a series of rural and peri- urban demand side surveys of 2,000 households. A second stage of supply side surveys was conducted in 1996 and 1997. It covered twelve districts where private generators, equipment suppliers and distributors, electricity consumers, industry representatives, and gov- ernment officials at all levels were interviewed. The surveys identified the types of lighting and other energy sources used, took a meas- ure of the quantities consumed and defined associated monthly spending patterns in non-electrified peri-urban and rural areas with a good potential for a renewable energy market and other modes of electrification (grid, mini/ micro/isolated grid, and non-grid electri- fication). Eventually, the survey: * Developed an information base and profile sketch of non-electrified rural households. They described households awareness of and ability to pay for alternative electricity services; * Measured the costs of existing energy services and compared them with other options; and * Analyzed the financial implications to households or electrification options to determine electrification steps to be taken to maintain or improve standards of living. Outcome, Lessons and Follow-up The study showed that high levels of rural electrification can be achieved without major government or donor intervention, or invest- ment from the national utility. It also suggests that new approaches to rural electrification can considerably accelerate access to elec- tricity in rural Africa. The challenge is to fashion an institutional structure that, as part of a power sector reform, will facilitate electrifi- cation without dampening individual drive and spirit. The ESMAP study provided crucial information for follow-up work of power sector reform in Uganda, helping catalyze government's attention on rural electrification issues. The study also helped in the preparation of a new electricity law and of an innovative project focusing on energy for rural transformation designed with help from the World Bank's Africa Rural and Renewable Energy Initiative (AFRREI) supported by the government of Denmark and other donors. Figure 8 Projects in Portfolio 120 Number of Projects in ESMAP Portfolio 1997-1999 107 100 90 89 . 80 -f 60 40 20 0 1997 1998 1999 - Project Implementation Out of the $27.7 million of the funding require- ments for ESMAP projects in the portfolio at the end of * 1999, some $13.7 million, had been disbursed at the end of 1999, corresponding to an implementation ratio of about 50% compared to 60% at the end of 1998. This - reduction is due essentially to the increase in the size of the overall portfolio, with a net gain of 18 new projects under supervision. The lower implementation ratios give an indication of sectors and regions where new projects have The distribution of disbursements by thematic been concentrated. However, when a low implementa- area and region is given in Table 4 and Table 5 for 1998 tion ratio is not associated with a recent increase in fund- and 1999. As an indication of the degree of project ing, it generally indicates delays associated with certain completion, an implementation ratio (IR) has been projects implementation. calculated for these two years. It reflects spending relative to funding allocations by theme and region. Table 5 Project Disbursement by Region as a Measure of Implementation Table 4 Project Disbursements by Theme as a Measure of Implementation By Region Percentage of Total IR 1998 IR 1999 Funding By Region Percentage of Total IR 1998 IR 1999 1998 1999 Funding Global 9.81 14.5 68.44 64.22 1998 1999 Sector Reform 16.99 20.1 72.43 55.31 Sub-Saharan Africa 26.02 26.69 80.96 69.22 Environment 15.17 14.54 45.15 32.94 East Asia & Pacific 8.92 12.66 73.32 58.58 Rural & Peri-Urban 21.42 27.08 67.66 44.29 South Asia 10.21 9.3 38.56 39.93 Renewables 21.91 6.84 27.42 49,83 Europe and Central Asia 5.81 9.98 80.33 36.7 Efficiency 19.95 23.51 84.06 74.17 LatinAmerica &Caribbean 36 21.14 38.67 33.89 International Trade 4.56 7.92 82.42 40.37 Middle East and North Africa 3.23 5.73 90.64 43.19 Total 100 100 59.92 48.05 Total 100 100 59.92 48.05 20 Box 4 Vietnam: Environmental and Safety Issues in Gas Development Background Energy sector development is crucial to Vietnam's economic prospects. From 1993 to 1997, consumption of commercial energy grew 30 percent faster than GDP. Continued expansion in energy supply is needed to support economic growth. Hydrocarbons is already a major local energy resource and accounts for 17% of exports. Most hydrocarbon production in Vietnam comes from the Bach Ho field in the Cuu Long Basin. The potential additional natural gas production is large, but the exploitation of hydrocarbon reserves and the construction of related infrastructure carry safety risks not to be neglected. ESMAP's Work ESMAP provided technical assistance to the Government of Vietnam in the oil and gas sector to support the development of indige- nous gas resources and to build up a modern gas industry from the wellhead to the burner-tip. ESMAP technical assistance includ- ed advice on: * Fiscal conditions for hydrocarbon exploration and development by private companies; * Methods for enhanced reservoir management; * Gas purchase contracts and gas sales contracts in accordance with best international practices; * Gas distribution and metering; * Institutional aspects of gas sector development, in particular the corporatization of Petrovietnam, the public monopoly responsi- ble for gas development; and * Environmental and safety aspects of gas sector development. Downstream Gas Development A study on the environmental impacts and safety aspects of downstream gas development was carried out by ESMAP with addi- tional funding from Denmark. It provided Petrovietnam with expertise on environmental and safety aspects of the development and management of an onshore gas industry. Petrovietnam often conflicting roles in environmental control and safety planning were analyzed. The ESMAP report recommended to create an institutional set-up that separates the policy, regulatory and operational functions related to environment and safety. A gas decree including technical and safety standards was also recommended, as well as the development of a more general assess- ment of the overall impact of gas development, and consultation with all stakeholders when preparing environmental impact assess- ments. Lessons and Follow-up The ESMAP study included investigations and recommendations on safety zones around gas transmission pipelines. Although the investigations were partly based on estimated risk for the population along specific gas transmission pipelines, they may be rele- vant for other densely populated regions in developing countries. Box 5 Improving Energy Efficiency Through Electricity Demand Management in Ghana, Kenya & Tanzania The Issues Ghana, Kenya and Tanzania regularly experience power shortages which often intensify in periods of drought. The shortages inconven- ience daily life and hamper economic growth. They force industrial and commercial users to use expensive additional power supply from on-site back-up generators. All three countries also have large technical losses and deep voltage drops especially at low voltage. Demand side and supply side management can help mitigate the effects of power shortages by reducing daily spikes in power demand and displacing part of the demand to off peak periods. Over the last 12 year the three countries have embarked on several such pro- grams which included: In Ghana * Pilot programs for power factor improvements, and load management and leasing schemes for purchase of capacitors; * Public information dissemination awareness raising; * Establishment of a nascent NGO, the Energy Efficiency Foundation; In Tanzania * A program to rehabilitate the supply grid * Training for energy audit staff from the public utility and assistance in conducting walk through audits of industrial and commer- cial establishments; In Kenya * Audit services to industry; * Creation of an energy service company (ELCO) with experience of performance contracting in the industrial sector. ESMAP's Work ESMAP, in association with international NGOs, bilateral and multilateral agencies and local counterparts reviewed the experience gained in implementing the programs outlined above. It convened a workshop in Arusha, Tanzania for regional and international efficiency experts. Some important lessons emerged from experience in the three countries: * Commitment--or lack of it--from organizations involved in implementing efficiency programs should be swiftly and clearly identified. Supply side activities of public utilities may weaken their capacity to implement demand side program. * Entrepreneurial orientation is critical for implementing organization to successfully deliver energy efficiency services. Open competi- tion should be the norm to select staff. * Demand side management must be a commercial activity, as demonstrated successfully by the experience of ELCO. Lessons and Follow-up The experience and the lessons learned confirmed those of similar programs elsewhere. Energy efficiency programs should emphasize direct provision of services to the end user through commercial arrangements. But intervention from public entities or competing pub- lic efficiency program may jeopardize the success of energy service companies. Box 6 Renewable Energy Strategy and Institutional Strengthening Study in the Arab Republic of . The Issues Good wind regimes, high solar radiation intensity, and significant quantities of agricultural and urban waste suitable for biogas produc- tion provide a good basis for renewable energy development in Egypt In the early 1980s after the energy shock, the Government of Egypt drew up a national strategy to take into account renewable energy resources, particularly wind, solar and bio-mass. In its policy statement for renewable energy, the Government's goals were to: * Establish and support the utilization and development of renewable energy; * Adopt technology/applications approaching maturity and that have potential for replicability; * Link renewable energy and energy efficiency; * Maximize utilization of renewable energy in the electric power sector as appropriate; and * Upgrade local capabilities and local technology content A national strategy adopted in 1982 and periodically reviewed. It sets quantitative targets for energy conservation and renewables share of total energy demand. Although the Ministry of Electricity and Energy is involved in implementing the startegy, the New and Renewable Energy Authority (NREA) has main responsibility to identify and evaluate renewable energy sources and plan for their devel- opment. ESMAP's Work In 1995, ESMAP completed an Energy Sector Assessment identifying issues retarding the development of renewables. It concluded that in a transition from demonstration to commercialization a review of the national strategy was appropriate and that such a review could develop capabilities, accumulate experience and identify areas where institutional development was required. The present ESMAP study set out to: * Identify and evaluate technologies with the highest potential to meeting the strategic targets; * Determine the likelihood of meeting the targets in the light of the assessed potential; and * Review institutional, technical and policy issues and requirements. Outcome and Follow-up First, the study estimated the gross potential based on constraints such as proximity to the grid. Economic constraints were then added to the model and expected reductions in costs by extending the time horizon were calculated. Two discount rates were applied to obtain an estimate of the range of the supply curve. Representative investment projects for promising technologies were developed to check the supply curve estimates, but alternatives to renewables or the impact competitive local market were not analyzed. The study concluded that few technologies are ready to substitute for conventional gas-based generation technologies. Despite this gen- eral conclusion, results indicate that: * Wind is the most commercially exploitable technology in propitious areas close to the grid; * Integrated solar thermal and gas power generation systems present a viable option; * Solar thermal heating has proven most successful. Conclusion Continued efforts to develop renewable energy technologies are appropriate, but the economic cost to achieve renewables targets is high. An upward revision in fossil energy reserves has weakened the rationale for renewables, and gas remains the fuel of choice in power system expansion plans. The targets will not be easily met without a mechanism to reduce the burden on consumers. The study also noted that some revision in institutional arrangements were required as renewables progress from research to development to com- mercialization., and NREA could become an effective "commercializer" of emerging technologies. Governance and Management a ,.N The Consultative Group recipient countries. In short, it was recommended that ESMAP be more strategic, more able to provide innova- The Governance structure of ESMAP includes a tive approaches with a broad potential to be replicated. It Consultative Group (CG) composed of representatives of also recommended that ESMAP be more active in dis- donors and members "at large" from the regions receiv- seminating its lessons of experience, and more vigorous ing ESMAP assistance. Since July 1997, the CG has been in devising new partnerships. chaired by Richard Stern, Vice President of the World Bank, and a former Director of its Industry and Energy The CG welcomed a 1999-2001 Business Plan Department. The two members "at large" representing prepared by the management of ESMAP and broadly developing and transition economies are Mr. Rufino endorsed it. The CG called for an in-depth discussion on Boomasang, presently President & CEO of PNOC the the Business Plan at the earliest opportunity. The CG National Petroleum Exploration Corporation of the members emphasized that Africa should remain a geo- Philippines, who has served on the CG since November graphic priority, recognized how critical social issues are 1997, and Mr. Kethane Sithole of Botswana who joined in the efforts towards poverty alleviation, and endorsed the CG in April 1999. Mr. Sithole, the Chief Executive the intention of ESMAP's management to address gender Officer of the Botswana Power Corporation, has had a issues more forcefully. The CG also fully supported a pro- long career with the Corporation which hejoined in 1978 posal to expand ESMAP's dissemination of its knowledge as a graduate engineer. In addition to rising rapidly through the ranks of the Corporation, heading various departments until his current appointment in 1992, he was seconded to the North Eastern Electricity Board in the United Kingdom in 1980-1981. During this second- ment he also worked in the East Northumberland L Engineering District. Mr. Sithole graduated with a B.S. b (Hon) degree in Electronics and Electrical Engineering form the University of Ile-Ife, Nigeria. He is a Fellow of ;_ the Institute of Electrical Engineers (United Kingdom), a Senior Member of the South African Institute of - Electrical Engineers, an Executive Member of the South i African National CIGRE Committee, an Executive w Committee Member of the Southern African Power Pool and Vice Chairman of the World Energy Council w Executive Assembly representing the African Continent. | The CG Roundtable and Annual meeting were held on April 12-13, 1999, at the World Bank's headquar- l, f _. , ters in Washington D.C. The CG reviewed the progress '. made with the implementation of the ESMAP strategy L approved at the previous annual meeting of the CG. It -. supported re-centering the Programme, as proposed by ESMAP management on finding solutions to bring ener- to a broader range of constituents. With respect to the gy services to the poor. The CG also re-emphasized a capacity to carry out the proposed Business Plan, con- three-prong approach with focus on energy access, sector cerns for mobilizing core funding and for increasing the reforms and energy environmental linkages. It was under- overall resources were acknowledged. The CG noted lined that ESMAP should become a leading force to bet- with satisfaction the close collaboration between ESMAP ter address economic and social development issues in and UNDP on a number of individual activities during the energy sector. It was stated that ESMAP should the last year and encouraged the consolidation of this increase its effort in helping build local capacities in collaboration. 25 Following up on the agenda of the annual meet- The TAG also reviews selected activities to draw lessons ing, an informal CG meeting was held on November 14- from past operations and advises on the impact and effi- 15, 1999 in The Hague, The Netherlands to deepen the ciency of ESMAP. discussion on ESMAP strategy and Business Plan. In par- ticular, donors discussed the comparative advantages and Two changes affected the composition of the relevance of ESMAP with respect to their own programs TAG in 1999: and priorities. The World Bank highlighted how ESMAP * Dr Andrew Barnett relinquished his responsibility as is a significant asset in implementing the Comprehensive Acting Moderator in April 1999, when the appoint- Development Framework (CDF), while several bilateral ment of the new Moderator, Mr. Alfredo Mirkin, donors explained how the Programme meets their con- became effective. During his tenure, Dr Barnett cern for poverty alleviation and economic development. worked with outstanding dedication, and brought Several donors stressed that, given the prominence of effectiveness and intellectual leadership during the environmental issues on the international political scene, transition period. a more precise definition of ESMAP activities in relation ......... to global environmental issues would strengthen the j _ l I political support ESMAP needs. The donors also had the ; opportunity to hear from other energy organizations and ., programs, such as the World Energy Council (WEC), the -, Shell Foundation or the E7 Network of Expertise for the a - . L ; Global Environment (E7) how they view ESMAP and an A ' expansion its partnerships. A consensus emerged that ESMAP is a unique OF program: it is global; it can rely on the expertise of sever- al hundred energy and other specialists; it is genuinely - multi-thematic with the potential to cover the entire field of energy and environment issues; it has a strong gover- nance with its Consultative Group and Technical Advisory Group; and benefits from a group of donors who have been working together for many years. It was recognized that ESMAP has the potential to further extend its net- work with the participation of other energy organizations and private sector foundations. The Final Communique of the April 1999 CG is attached as Annex 1. Summary Proceedings of the November Meeting are attached as Annex 2. * Mr. Alfredo Mirkin assumed his responsibilities as Moderator after the April 1999 meeting of the CG. Mr. The Technical Advisory Group Mirkin was one of the leaders of the transformation of the energy market of Argentina during the 1990's. He The Technical Advisory Group (TAG) comprised four has had a very prestigious career in the energy sector. members in 1999. The TAG's operate under a mandate Upon graduation from the School of Engineering of from the CG which also approves the terms of reference the Buenos Aires Federal University he worked with for the TAG. The line authority of the TAG is exercised Agua y Energia Electrica, the former state run bundled through the Chair of the CG. The TAG focuses on utility, where he rose through the ranks of manage- ESMAP's vision and strategic direction to advise the CG ment. Later on, he became Vice President and then and the management of ESMAP, notably on processes for President of CAMMESA, the wholesale power market project selection and monitoring to assure donors that management company in Agentina. In August 1996 he 26 the portfolio composition reflects the agreed strategy. was appointed First Secretary of Energy, a position he held until December 1998. During his tenure, he spear- In April and September 1999, the TAG met at the World headed the process of market reforms, including the Bank's headquarters in Washington D.C. The April meeting privatization of the gas sector. He is now a senior part- focussed on the preparations of the CG, and the TAG work ner in Mercados Energeticos S.A. a consulting firm, program for the rest of the year, the September meeting and consults internationally. reviewed ESMAP's comparative advantage in relation to other externally funded energy programs managed by the The TAG met on five occasions in 1999. The first World Bank, namely the Asia Alternative Energy Program meeting was in January 1999 in Bolivia, for a week-long (ASTAE), the Africa Rural and Renewable Energy Initiative evaluation of the Bolivia Program where the TAG was (AFRREI), and the Africa Regional Program for the joined by the Chairman of the CG, by representatives from Traditional Energy Sector (RPTES). The TAG also initiated the two sponsors of the Programme-the UNDP and the the evaluation of solar development projects in Africa, and World Bank-and by senior ESMAP staff. Preliminary find- of regional energy market development experience. These ings from the evaluation were discussed at a meeting of the two evaluations were to be carried out in FY2000. The TAG also assessed the results of the selection process and of the changing composition of the portfolio in relation to the agreed strategy. In June 1999, the TAG met in Paris for an infor- mal meeting with the ESMAP manager to take stock of --._ _J .; .,. progress and discuss the terms of reference for the pro- No, - posed evaluations. Finally, in November 1999, the TAG i - - - - _met in The Hague, The Netherlands, just before the ad- _ I 1 hoc donors' meeting. At its meeting in The Hague, the TAG focused on the funding strategy for ESMAP. _ 7-rn In addition to meetings, members of the TAG, !./i individually and collectively, maintained frequent con- ' it \ 9/; tacts with the ESMAP management team, and met with '_ \ S\= < l, ' several task managers, providing advice and guidance. Dr. Andrew Barnett completed an evaluation of ESMAP ' j:.X v Projects for renewable energy published in November rJ-t >-s 1999, and Mr. Jan Moen prepared a separate report on the lessons from the Bolivia experience with energy mar- ket reforms. This report was expected to be published in April 2000. TAG with the participation of Ing. Herbert Muller, ESMAP Management, Staffing and Minister of Finance of Bolivia, who, as former Minister of Procedures Energy and Moderator of the TAG had invaluable insights on the design and execution of the Bolivia program. Ing. Management and Staffing. The year 1999 was a year of con- Mueller provided also most useful reflections and an his- solidation in the managerial changes, operations, and torical perspective on links between the ESMAP program administration of the Programme which were initiated in and the Comprehensive Development Framework (CDF) 1998. Changes in the management and administrative pioneered in Bolivia. The TAG also visited several develop- team, were in line with the need for efficiency gains and ment projects and had discussion with local organizations associated with the introduction of various management on issues ESMAP is addressing, such as the liberalization of tools. These changes brought in increased technical com- the energy sector or energy efficiency in enterprises. A petencies within the team to improve on the monitoring TAG Report on the evaluation was issued along the TAG of the portfolio and expand the Program's dissemination Annual Report for the April 1999 Donor Meeting. activities. A new operations officer joined the team in 27 November 1999, and an operations coordinator was ance indicators, in particular on the Programme's overall recruited and was expected to join in January 2000. The development effectiveness. program continues to rely on an increasingly diversified group of energy and other experts from the World Bank Monitoring of Implementation. As already indi- Group who serve as project task managers or provide tech- cated, the LogFrame approach adopted by ESMAP in nical guidance to the projects. Strong ties were established 1998 aims at facilitating more rigorous project design with the environment practice of the World Bank, as well and monitoring. It establishes links between goals, as with other trust-funded programs such as ASTAE, objectives, outcomes and inputs with verifiable indica- AFFREI and RPTES in the Energy Sector, and the Public- tors and specifications of the assumptions that under- Private Advisory Investment Facility (PPIAF) in the Private line these relationships. Steps have been taken to adapt Sector Development group of the World Bank. the LogFrame methodology to ESMAP needs, as well as provide guidance and training to all current and Procedures. Two calls for proposals were processed in 1999. prospective task managers. A total of 39 proposals were received and evaluated, 12 were accepted for funding often with significant adjust- ESMAP's Purpose and Approach paper define ment to the original proposal, 14 were rejected and 13 diverse and cross-disciplinary objectives and activities for were returned to their proponents for further clairifica- the Programme and enunciate regional and thematic tions before a funding decision. Drawing on lessons from priority areas. Monitoring and evaluation methodologies the first call for proposals in 1998, ESMAP management depend on well developed indicators based on the simplified the procedure, asking first for a simplified pro- framework of the Programme. These indicators must posal, including a table summarizing the proposal under provide a basis for ex-ante and ex-post analyses and the Logical Framework (LogFrame) methodology. describe the effects (positive and negative) of program Simplified proposals were evaluated by a Selection Panel and project interventions, anticipated and unanticipated; composed of ESMAP management, and senior energy intended and unintended results. They fall broadly into experts from the UNDP and the World Bank. Proposals four categories: retained were then fully developed by the proponents and * Program and project implementation. The delivery of prospective task managers, taking into account the recom- technical services, operating funds and capital inputs mendations of the Selection Panel. A one-month time peri- with related disbursements and resulting outputs (facil- od was allocated to submit proposals, and full feedback was ities created, activities and participatory processes given to proponents on the discussions and recommenda- organized, etc.); tions of the Selection Panel two weeks after the panel met. * Institutional change demonstrating capacity develop- ment, attitudinal awareness shifts, and policy re-orien- This simplified procedures reduced the time tations; task managers spent writing proposals and allowed a Socioeconomic conditions which bring out the conse- greater emphasis on the substantial content of the proj- quences of project interventions; and ects. Although progress was noticeable, the methodology * Specific indicators (e.g. environmental impact) which was not universally mastered by Bank staff and additional demonstrates the environmental achievements. training was periodically offered to prospective task man- agers. The Logical Framework proved to be a particular- ly effective tool for the monitoring of program imple- mentation. As specific performance indicators were defined at the beginning of each project, ESMAP's man- agement was able to enter into a more constructive dia- logue with individual task managers when assessing proj- ect merits at design stage or when reviewing implementa- tion progress. When necessary, as in the case of the Nile River Basin Project, adjustments were made to the imple- mentation plan and to the project budget. However, 28 much work remains to be done to define better perform- 29 Financial Review I i p _ o_ Funding the private sector. Three new donors joined the Programme during the year: Enron International, from Despite a stagnation in additional financial the United States; Siemens AG, from Germany, and receipts from donors, ESMAP was able to sustain an increas- Polskie Gornictwo Naftowe i Gazonictwo S.A. (PGNiG), ing level of activity in 1999. At the end of the fiscal year from Poland. Contributions from the non-government unallocated resources in ESMAP trust funds were insuffi- donors were applied to ESMAP's core funds in order to cient to fulfill funding decisions on ongoing projects. avoid any possible conflict of interest. It must be noted Expected resources from existing agreements with donors, that PGNiG, a government-owned gas company, had however, more than cover ESMAP commitments to support worked and continue to work closely with ESMAP as a ongoing projects. Additional funding allocations are made recipient of its technical assistance. PGNiG thus marked to such projects as their implementation progresses, and as its appreciation for this assistance by becoming a donor, additional funds are received from donors. For the coming the first such case from an organization from a recipient years, the reduction in the level of overall financial transfers country. Promising new contacts were initiated in 1999 from donors recorded in 1999 may not be sufficient to sus- with potential donors, including foundations. Discussions tain the implementation of the ESMAP Business Plan 1999- with other donors, notably the United States, continued 2001. As a result, ESMAP financial base needs to be consid- to explore possibilities of partnerships adapted to these erably strengthened, with increased support from existing donors requirement, including co-financing. Fund rais- and new donors. ing efforts will continue in the coming year with the objective of mobilizing the resources needed to imple- Contributions Received ment ESMAP Business Plan 1999-2001 ESMAP receipts from its donors totaled some Funding Categories $4.5 million in 1999. This figure marked a decrease of about 55% compared to 1998. It reflected the absence of ESMAP receives four main types of funding with new country programs, or of exceptionally large projects, varying degrees of conditions on the use of the funds pre- such as those started in 1997 and 1998 which, to a certain scribed by donors: extent, distorted the overall size of the Programme. This * Unrestricted funds are identified as core funding. They decrease was also in part a consequence of stricter cash may be applied at the Program Manager's discretion to management, as requested by donors, avoiding that large any project or activity of the Program. sums from donor contributions be kept in trust funds for * Thematic funding, the second category, can be applied relatively long periods of time before they were commit- only to projects addressing a particular thematic area ted and disbursed. In 1999, nine donors, in addition to such as renewable energy, or environment. the World Bank and the UNDP made cash transfers to the Programme through trust funds. The World Bank's con- tribution of $1.2 million decreased from the 1998 level of Figure 9 ESMAP Receipts 1997-1999 $1.4 million, reflecting efficiency gains in the program Germany 7% Denmark 2% management (staff reduction and introduction of new France 2 nada70/o management tools). The World Bank's share of total con- Belgium 0% tributions, however, increased from 17% in 1998 to more than 25% in 1999, well above the objective of 20% gen- erally expected from ESMAP's main sponsor. Table 6 shows actual receipts by individual donors for the period Nether nds 29% orld Bank 19% 1997-1999. New Donors UNDP 10 \ // /| \\,/N~~~~~~orway 3% Fnand 1%/ ESMAP management was able to pursue new Stl 21 opportunities to involve interested partners notably from we 2 t dom 17% Private Sector 1 31 * Regional or country program funding is restricted to development which seems to indicate growing support activities of a specific country or group of countries, from several donors, despite the overall reduction in total requiring prior authorization from donors. receipts. As in previous years, contribution from the World * Finally, project funding is received from donors only Bank and from UNDP are considered as core, since they after submission and approval by the donor of a specif- are not linked to any specific project. Including these, core ic project proposal. Corresponding funds may be used contribution totaled about $3.2 million, or over 70% of only for the specific approved projects. total receipts. Germany, Finland, Denmark, Norway and the new donors-ENRON International, Siemens AG and The flexibility offered by core funding allows PGNiG-provided their entire ESMAP contribution as core ESMAP to better implement its strategy and business plan funding. Sweden and the United Kingdom provided core and, in particular, to respond to opportunities or urgent funding along with project-specific funding carrying restric- needs as they arise. Core funding is also used to extract tions on the use of their contributions in certain recipient lessons of experience across the entire program in order countries. Other donors provided either thematic funding to ensure that best practices are made available to the or project funding. energy development community. In terms of administra- tive efficiency, both core and thematic funding allow Thematic contributions decreased in 1999 to ESMAP to deploy funds to projects flexibly without addi- $413,000 from $1.3 million, partly because of the more tional burden to ESMAP or the donor. Project funding is restrictive cash management policy referred to above. generally linked to executing and monitoring tedious Total core and thematic contributions, excluding contri- administrative conditions. The transaction costs such butions from the World Bank and the UNDP, for 1997- project funding tend to be higher than average. 1999 are shown in Table 7. Table 8 shows all contributions received in 1999 by type of funding. Core and Thematic Funding Project Funding In 1999, core contributions from donors other than the World Bank and UNDP totaled $2.0 million, com- Project specific funding totaled $849,000, or 19% of the pared to $1.6 million in 1997. This was an encouraging total funds received in 1999. In 2000 ESMAP is expecting Table 6 ESMAP Receipts, 1997-1999 1997 1998 1999 Total Of which Percentage of Core Funding Donor (US$'000) Total Receipts Core UNDP 0.0 112.0 120.0 232.0 212.0 1.1 2 World Bank 1,600.0 1,400.0 1,172.0 4,172.0 4,172.0 19.8 42 Belgium 0.0 0.0 0.0 0.0 0.0 0.0 0 Canada 732.4 255.3 536.7 1,524.4 0.0 7.2 0 Germany 566.4 603.6 359.8 1,529.8 1,529.8 7.3 15 Finland 0.0 91.5 90.0 181.5 181.5 0.9 2 Netherlands 2,284.0 3,536.9 413.1 6,234.0 0.0 29.6 0 Denmark 392.8 0.0 0.0 392.8 392.8 1.9 4 Norway 0.0 0.0 643.1 643.1 643.1 3.1 6 Switzerland 0.0 507.8 0.0 507.8 0.0 2.4 0 Sweden 633.6 302.3 398.8 1,334.7 511.3 6.3 5 France 518.6 0.0 0.0 518.6 0.0 2.5 0 United Kingdom 1,623.2 1,401.7 587.0 3,611.9 2,065.4 17.1 21 Private Sector 0.0 0.0 190.0 190.0 190.0 0.9 2 32 Total 8,351.0 8,211.1 4,510.5 21,072.6 9,897.9 100.0 100 Table 7 Core and Thematic Funding - Donor Contributions, 1997-1999 Year Donor Contributions of which, Core of which, Core plus Core as % of Total Donor Core plus Thematic as ($m) ($m) Thematic ($m) Contributions (tit) part of Total Donor Contributions (%) 1997 6.80 1.65 2.35 24.3% 34.6% 1998 6.80 1.61 2.95 23.7% 43.4% 1999 3.22 1.96 2.37 60.9% 73.6% Total 16.8 5.2 7.7 31.0% 45.6% a/ Does not include World Bank and UNDP contributions. Table 8 Receipts by Type of Funding in 1999 Amount Expenditures (million US$) WB Contribution 1.172 Expenditures in 1999 totaled $6.05 million, a UNDP 0.120 decrease of $445,000 from the $6.5 million recorded in Core 1.956 1998 (see Table 9). However, this reduction did not affect Thematic 0.413 expenditures on direct costs of projects for which an Project 0.849 increase of $295,000 was recorded, in line with the Country Program 0 increasing number of activities launched during the year. Total 4.510 Furthermore, the introduction of a new accounting and management system on July 1, 1999 at the World Bank the final tranches in the amount of $135,000 for two proj- seems to have led to noticeable delays in recording actu- ects namely: the Refining Industry in LAC: Sector and Fuel al commitments and disbursements for ESMAP projects. Quality Improvement and Bolivia Training ProgTam for Key These delays are most likely affecting the actual financial Group Representatives from Indigenous People Regional situation of the Programme at the end of the fiscal year Organizations funded by CIDA (Canada).It is unlikely that in and the level of expenses during the year. Figures in the foreseeable fuxture core and thematic funding will be Table 9 reflect the most up-to date data generated by the sufficient to meet the demand for funding ESMAP projects. World Bank information system as of December 31, 1999, Additional funding will continue to be mobilized from but direct reports from a number of task managers of donors, on a case by case basis, for promising projects after ESMAP projects seem to indicate that actual disburse- they reached the necessary stage in the evaluation process. ment figure may be considerably more than those indi- Table 9 ESMAP Expenses, 1997 - 1999 (thousands US$) 1997 1998 1999 Project Costs 6,352 4,764 5,059 Work Program Development - - 115 Program Management 1 2,118 1,588 557 Knowledge Dissemination - - 49 Governance 73 146 270 of which TAG 61 125 135 of which CG 2 12 21 135 Total 8,543 6,498 6,050 of which funded by Donors 6,943 4,986 4,821 of which funded from World Bank budget 1,600 1,400 1,172 of which funded by the UNDP 112 120 Includes work program development and dissemination for 1997 and 1998 2 Some expenses related to the CG and its Annual Meeting were reported under program management in 1997 and 1998 33 cated below. ESMAP management reckons that disburse- ment figures may be underestimated by as much as 20% to 30%. As a consequence, it is expected that disburse- ment figures will increase significantly in 2000 as the delay in recording actual expenses is reduced. At the end of the transition period it is expected that the timeliness, comprehensiveness and accuracy of operational data and financial information on ESMAP projects will be consid- erably improved. The next ESMAP Annual Report would fully reflect these improvements. Funding New Projects During the year, ESMAP approved 52 new proj- ects with a cumulative cost of $20.0 million. Out of this total cost, ESMAP had agreed to provide funding for a total of $12.7 million. From this amount, some $9.0 mil- lion had been firmly committed by ESMAP during the year. An additional $3.7 million still need to be mobilized during the next fiscal year from resources existing in trust funds or from new resources. Only part of this financial requirement was covered by funds in existing trust funds at the end of the year, which amounted to $502,000 in core and $1.6 million in restricted resources. Cash Balance Cash balances in ESMAP trust funds and UNDP accounts on December 31, 1999 amounted to $13.1 million dollars (of which $627,279 in UNDP accounts), compared to $14.9 million at the end of 1998 (of which $1.4 million in UNDP accounts). This reduction reflects for one part the difference between funds received in trust funds during the fiscal year and expenses paid out of trust funds dur- ing the same period. It also reflects, for another part the appreciation of the United States dollar during the year which affected negatively the balance in trust funds main- tained in currencies other than US dollars. 34 List of Abbreviations and Acronyms AFR Sub-Saharan Africa AFRREI Africa Rural and Renewablc Energy Initiative ASiAL Asia Alternative Energy Program B.Sc Bachelor of Scienec CAMMESA Wholesale power market management company (Argentina) CDF Comprehensive Development Framework CEE Central and Eastern Europe CIDA Canadian International Development Agency CIGRE Conscil International pour les Grands Reseaux Electriques CG Consultative Group CHP Combined Heat and Power CNG Compressed Natural Gas DFID Department for International Development (DFID) DH District Heating DSM Demand Side Management E7 E7 Network of Expertise for the Global Envirtnment EAP East Asia and Pacific ECA Europe and Central Asia EER Energy Environment Review ELCO Energy service company (Kenya) ESCO Energy Services Company ESMAP Energy Sector Marragenmetnt Assistance Programme EU European Union GDP Gross Domestic Product GEF Global Ensironnient Facility IfC International Finance Corporation (World Bank Droup) ID Intelligence Quotient kW Kilowatt kWh Kilowatt per hour LAC Latin America and the Caribbeans LogFrame Logical Framework MNA Middle East and North Africa LPG Liquefied Petroleum Gas NOO Nvn-Governmental Organization NREA New and Renewable Energy Authoirity (Egypt) PGNiG Polskie Gornietwo Naftowe i Gazonietwo S.A PNOC National Pettoleum Exploration Corporation of the Philippines PPIAF Public-Private Investment Advisory Facility RPTES Africa Regional Program for the Traditional Energy Sector SAP Systems Applications Products SAPP Southern Africa Power Pool SIDA Swedish International Di velopment Auithority TAD lechnical Advisory Group UE8 Uganda Electricity Board UNDP United Nations Development Programme URE Eniergy Regulatory Authority tPoland) US United States WEC World Energy Council 35 Annex 1 Final Communique ment issues. It was stated that ESMAP should increase its effort in helping build local capacities in recipient coun- Meeting of The Consultative Group of ESMAP tries. In short, it was recommended that ESMAP be more Washington, DC April 12-13 1999 strategic, more able to provide innovative approaches capable of being broadly replicated, more active in dis- The Eighth Meeting of the Consultative Group seminating its lessons of experience, and more vigorous (CG) of the Joint UNDP/World Bank Energy Sector in devising new partnerships. Management Assistance Programme (ESMAP) was held at the World Bank in Washington DC on April 13, 1999 During the formal meeting of the CG on April under the Chairmanship of Mr. Richard Stern, Vice 13, ESMAP operations in 1998 and a proposed Business President of the World Bank. Plan for 1999 and 2000 were discussed. The CG received several reports by the ESMAP Technical Advisory Group As in previous years, the meeting of the (TAG), notably on ESMAP activities in Bolivia over the Consultative Group followed the ESMAP Donor's last few years and a review of ESMAP work on renewable Roundtable on Energy for Development on April 12, also energy since 1993. The TAG stated that the Programme is in Washington DC. The theme of this year's Roundtable generally in good health and carrying out a well re- was 'The Challenge of Delivering Energy Services to the focused portfolio. The TAG also estimated that a special Poor'. It included four sessions with presentations by and effort should be made to disseminate ESMAP's wealth of discussions between ESMAP Donors, recipients of knowledge, which in turn would help clarify ESMAP's ESMAP assistance, and ESMAP Task Managers. comparative advantage with respects to other programs in the energy sector. The first session of the Roundtable focused on energy market development. It examined the limited Concerning the ESMAP Bolivia Programme, the progress of energy sector reform in developing countries TAG expressed the view that greater attention should and the need to continue efforts in this area to facilitate have been paid to the dissemination of lessons learned and broaden energy access. and to the coordination with other development activi- ties, including those supported by the World Bank. The second session considered the linkages between energy and the environment; in particular, it dis- After reviewing ESMAP's renewable energy activ- cussed environment and social issues to be considered for ities, the TAG suggested that ESMAP performed an hon- the delivery of sustainable energy services. orable role in keeping the issue of biomass and energy poverty on the World Bank's agenda. The review also The third session focused on mechanisms to emphasized that ESMAP's clients do not wish to be improve energy access for the poor and reminded that restricted in their choice, and should have access to the poor spend up to 20% of their resources on energy. renewables as part of a full menu of technology-neutral The perennial question of subsidies was also discussed. It energy solutions. It concluded that there is evidence that was noted that subsidies rarely reach the poor for whom when ESMAP renewable activities were successful it was they are intended, and whether smarter ways to deliver not because of a particular technology, but rather subsidies to their intended beneficiaries could be devel- because they offered decentralized and diversified energy oped is a question for further analysis. services. Trying to draw conclusions for ESMAP future The CG welcomed Mr. Kitane Sithole from tasks, the last session of the Roundtable proposed that the Bostwana as its new 'At Large' member, and Mr. Alfredo Programme re-emphasize its approach with focus on Mirkin, as the new Moderator of the TAG. The CG energy access, sector reforms and energy environmental thanked the TAG and ESMAP management for the work linkages. It was also emphasized that ESMAP should real- accomplished last year and for the Business Plan pre- ize its potential and become a leading force in the ener- pared for 1999 and 2000. Improving access to energy gy sector to better address economic and social develop- services for the urban and rural poor, including through household energy activities, is expected to continue to be the overarching objective of ESMAP. The CG welcomed the Business Plan and broadly endorsed it. It also empha- sized that Africa should remain an ESMAP geographic priority, recognized how critical social issues are in the efforts towards poverty alleviation, and endorsed the intention of ESMAP's management to address gender issues more forcefully. The CG fully supported the pro- posal to strengthen ESMAP's dissemination of its knowl- edge to all ESMAP constituents. With respect to the capacity to carry out the proposed Business Plan, the on- going concerns for more core funding and for increasing the overall resources were recognized as well as the need to further clarify several items of the Business Plan. The CG noted with pleasure the close collaboration between ESMAP and UNDP on a number of individual activities during the last year and encouraged the consolidation of this collaboration. In addition to the co-sponsors of the Programme - the UNDP and the World Bank - the following donors were represented at the Consultative Group: Canada, Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden and the United Kingdom. The Consultative Group will reconvene in about one year. 38 39 Annex 2 Summary Proceedings 1999-2001, with particular emphasis on two main topics: energy market development and access to energy servic- Interim Meeting of The Consultative Group of es; and the sustainability of energy services and linkages ESMAP between energy and environment issues. The Hague, November 15-16, 1999 ESMAP Partnership and Strategic Priorities An interim meeting of the Consultative Group (CG) of ESMAP was held on November 15 and 16, 1999 ESMAP partners, such as the European Union, at Hotel Sofitel in The Hague, The Netherlands, under the E7 Network of Expertise (E7), the World Energy the Chairmanship of Mr. Richard Stern, Vice President of Council (WEC), the Sustainable Energy Program (SEP) the World Bank. of the Shell Foundation, the International Energy Agency (IEA) and Siemens AG presented their objectives and In his introductory remarks the Chairman activities. They broadly confirmed the convergence of noted that ESMAP, which has become a more coherent their own objectives with those of ESMAP, and the com- program over the last few years has a real opportunity to plementarity between ESMAP and their own programs. grow. At a time the World Bank is realigning its opera- The representative of the E7 indicated that under the tions, it is vital for ESMAP, he stated, to operate within existing memorandum of understanding between the Comprehensive Development Framework. He noted ESMAP and the E7, there are opportunities to conduct that technical assistance has a generally spotty record joint studies or organize workshops. Similarly, the repre- because it is much more difficult than straightforward sentative from WEC informed the CG of new major stud- investment projects. Very often, coherence is lacking in ies undertaken by WEC and of the regional priorities in the approach of the numerous donors providing this preparation of the next WEC World Congress in 2001. technical assistance, which exacerbates a lack of owner- She noted the convergence between ESMAP and WEC ship on the part of the intended beneficiaries. and offered to strengthen the coordination on dissemi- Furthermore, he noted that energy programs often run nation of lessons. For the representative from Siemens, the risk of being captured by groups with narrow agen- ESMAP is a useful mechanism to discuss policy reform, da, whereas energy programs should be serving the training and technology transfer. It is also a forum facili- broader agenda of poverty alleviation and economic tating the discussion with key stakeholders, as well as the development. He also remarked that ESMAP has a series identification of projects and financing intermediation. of attributes which make it different from many other The representative from SEP noted that for newcomers programs: it is global; it can rely on the expertise of sev- in the energy and development circle it was difficult to eral hundred energy and other specialists around the know the key players and their interactions. It was sug- World Bank Group; it is genuinely multi-thematic with gested that ESMAP could serve as an intermediary to the potential to cover the entire field of energy and inform on the achievements of development organiza- environment issues; it has a strong governance with its tions in the energy and environment areas and help iden- Consultative Group and Technical Advisory Group and tify key actors. a group of donors who have been working together for many years; and it has the potential to further extend its The representative of the UNDP updated the network with the participation of other energy organi- CG on the recent changes in leadership at UNDP and the zations, foundations and the private sector. He offered subsequent review of UNDP priorities. A transition team to discuss the possibility for ESMAP to become a profes- appointed by the new Administrator of the UNDP has sional secretariat to exchange and disseminate informa- proposed to focus on governance issues. One major con- tion on donors' energy programs and respective priori- cern of UNDP at this stage is to reduce the transaction ties, and to test their coherence. costs incurred in its partnerships. It was stressed that the cooperation with ESMAP management team had The meeting was organized in two main parts. increased significantly over the last few years. The UN The first part focused on ESMAP partnerships and strate- Foundation is allocating some $10 million a year for ener- gic priorities. The second part discussed ESMAP current gy and environment activities, but the transaction costs work program and revised business plan for the period for utilizing these funds are still relatively high. Overall, 41 from an UNDP perspective, trends in financing are not view that the World Bank now needed to coordinate these encouraging and ESMAP must adapt to changing times. programs better, and disseminate their lessons more It was also suggested by the UNDP representative that the effectively. He announced that an external review of CG provides the Technical Advisory Group (TAG)- these energy programs will be conducted in the next few which serves as an interface between the CG and the months. He also proposed that donors move away from management of the Programme on strategic issues-with encouraging competition between these programs-which clearer guidelines so that, in turn, UNDP could strength- may hamper their expected complementarity-and from en its support of the Programme. He proposed that "bilaterazing" their contributions by attaching too many UNDP and ESMAP management explore how to renew conditions rending such contributions very hard to use. their partnership in the face of UNDP new priorities. Several delegates, notably the delegate from The Head of the World Bank's Sector Board reit- Sweden, noted that energy-possibly because of relatively erated the World Bank's commitment to energy develop- low world energy prices-is no longer seen as a priority on ment as an important enabler of economic development, the development agenda. It was felt that energy will and because energy related activities have major macro- remain on the development agenda only to the extent economic and environmental implications. He stated that it is perceived as essential to advance other topics of that the energy world is changing. In the future, he stat- higher priority: poverty alleviation, gender issues, and ed, the provision of energy services will be private, dis- environment issues. This perception was shared by the tributed, competitive, and socially and environmentally delegate from Denmark who also insisted that access to responsible. He summarized the organization and com- energy should remain the overarching objective of the plementary activities of externally funded energy pro- Programme. The delegate from the United Kingdom grams hosted by the World Bank, including ESMAP, suggested that donors move away from energy "projects" ASTAE, AFRREI and RPTES. The complementarity and consider energy issues as but one component of a between these programs was also later discussed in details sustainable livelihood approach to development and by the manager of the World Bank energy operations in poverty reduction. It was recognized that the new busi- Africa-who reminded the CG of the dismal conditions ness plan of ESMAP responds to this requirement, which of the region with 500 million people still without access should make it easier for donors to support the to modern energy-and by the managers of the ASTAE Programme. and AFRREI programs. It was stressed that ESMAP had been focusing on issues upstream from lending opera- Concerning the work accomplished on power tions while other programs paid more attention to bring- sector reform, and reflecting on a recent experience in ing new types of energy operations, through innovative India, a delegate from the UK stressed the importance of approaches, into the World Bank lending portfolio. going deeper on practical issues faced on a day to day basis by regulators in developing countries. Power reform The manager of the AFRREI program men- is important as a development "enabler" and in India, he tioned topics which could be looked at jointly with remarked, the reduction of the drain on the government ESMAP, such as the design of regulations for small decen- budget from the power sector-thus enabling the govern- tralized power systems. Another topic would be the ment to fund poverty focused programs in primary design of intermediation mechanisms for "smart subsi- health, primary education and other social sector-was the dies". Such issues are of interest for many developing main driver for power sector reform. He also encouraged countries and would also directly support the preparation ESMAP to work more closely with the Public-Private of energy operations in Africa geared at improving eco- Infrastructure Advisory Facility (PPIAF) recently estab- nomic conditions in the region's rural areas. The Head of lished. The delegate from France noted that the question the Sector Board for energy stressed that ESMAP and of the development of regional energy markets still need- other energy programs have in the past facilitated new ed to be clarified, and all stakeholders-public and pri- investments and been useful in many other respects to vates-should be associated in the discussion. A member bilateral donors, private energy investors and the World of the TAG remarked that there is still need to work on Bank itself where, over the years, these programs helped the impact of sector reform on the poor. Another TAG 42 sharpen the approach on energy issues. He expressed the member noted that the issue was complex, and that there was also a need to look at original experiences such as the TAG remarked that the modernization of bio-mass ener- provision of modern energy services in exchange of labor. gy is not happening in Africa. He suggested that ESMAP, as a global program, help disseminate positive experi- A delegate from The Netherlands confirmed ences from other parts of the world to Africa. that while development assistance funds for energy pro- grams are shrinking, funds to advance global climate In a discussion on the present status of the inter- change issues are abundant, reflecting a major change in nalization of external costs with respect to environmental political priorities of donor countries. But, it was further consequences of energy production, transportation and remarked, climate change issues are essentially energy consumption, it was noted that, while local environment issues and ESMAP and other energy programs should be impacts are now relatively easy to assess and remedied more proactive in tackling these issues notably by helping upon through a series of taxes, economic incentives or build the capacity of developing countries to take part in command and control measures, no significant progress climate change negotiation and benefit from the new had been achieved recently concerning the evaluation of mitigation mechanisms which are being introduced. global environment consequences of individual actions. Later in the discussion, the manager of the AFRREI pro- It was noted again that developing countries often lacked gram confirmed that there was a considerable demand in the capacity to make the most judicious decisions on Africa for capacity building on climate change issues. It energy investments to minimize global, and even local, was pointed out that if energy specialists and energy pro- environment consequences of energy use. grams do not address this problem, it will most certainly be addressed by other whose agenda may be narrower. In The manager of ESMAP stated that, collectively, subsequent discussions it was agreed that the Netherlands the members of the CG have the responsibility to make will propose to the next meeting of the CG concrete ways sure that aid for sustainable energy development stays on for ESMAP to become more actively involved in climate the political agenda not because it is a goal in itself, but change issues. A member of the TAG suggested that one because it is essential for poverty alleviation. She con- way for ESMAP to involved itself on these issues would be firmed that the objective of ESMAP growing partnerships to look at a methodology to integrate climate change is for continuous knowledge generation and dissemina- issues into traditional World Bank funded project, follow- tion, and that capacity building can not be overempha- ing up on a recent retrospective study on the same issue sized. She stated that ESMAP was strengthening its com- by a World Bank expert (Jan Burton). plementarity with other energy programs in the World Bank and mentioned that ESMAP should be able to help Discussing the sustainability of energy services, better disseminate the wealth of lessons accumulated by the delegate from Finland pointed out that, despite a ten- programs like ASTAE. With respect to PPIAF, she noted dency to move away from biomass fuels, fuelwood is still that ESMAP was discussing the possibility of co-financing, the only fuel available to more than 2 billion people. He notably for regulatory work. She proposed that a joint noted that, as demonstrated by Sweden and Finland, it is meeting of all energy programs hosted by the World Bank possible to increase a country energy reliance on fuel- be organized in connection with the next CG meeting in wood in a sustainable and efficient way, by reaching a sit- April 2000. She also remarked that there was already a uation where fuelwood is "harvested" rather than strong cooperation between ESMAP and the environment "mined". In developing countries, he further noted, practice in the World Bank, and that this cooperation was health problems are associated with the use of fuelwood. expected to increase significantly with a senior staff and These problems should, of course be addressed, but they specialist of climate change issues joining ESMAP in are not impossible to overcome with existing and rela- January 2000. She expressed the view that there are oppor- tively simple technologies. He proposed that ESMAP- tunities to better capitalize on the knowledge existing in without being involved in technological development or and generated by the private sector, notably on end-use promotion which is better left to local groups or non-gov- energy efficiency. In response to a remark by the represen- ernmental organizations-focuses on the interaction tative of the SEP, she agreed that the Programme must bet- between stakeholders to make the use of fuelwood effi- ter articulate the benefits the private sector can expect in cient and sustainable, from tree planting to the dissemi- forming partnerships with ESMAP. nation of efficient and safe woodstoves. A member of the Concerning the dissemination of knowledge and i lessons learned, a representative from the Deutsche management must earmark a substantial share of funds Gesellschaft fur Technishe Zusammenarbeit (GTZ) to be received in years 2000 and beyond to complete the remarked that such dissemination should be envisaged funding of ongoing projects. To fully meet the objectives beyond the mere accumulation of reports and website of the business plan 1999-2001, it was estimated that links. He suggested, notably on issues like energy effi- ESMAP still needed to mobilize some $1.8 million in ciency, that ESMAP convene a panel of specialists from 1999, $7.2 million in 2000 and $9.5 million in 2001 the development aid community to share their respective beyond donors existing commitments. knowledge and identify issues that still needed to be addressed. He also suggested to associate bilateral devel- Welcoming the updated business plan and its opment agencies at an earlier stage to the work under- ambitious objectives, donors expressed their continuous taken by ESMAP and other programs. support to ESMAP. Several of them warned, however, that ESMAP Business Plan and Work Program because of budget restriction it might be difficult to pro- vide additional resources in the next few years. The man- In presenting the updated ESMAP business plan agement of ESMAP was urged to continue its effort to for 1999-2001, the manager of ESMAP informed the CG attract other major donors which are not yet part of that the portfolio of activities had been restructured to ESMAP. In its concluding remarks, the chairman warned better reflect ESMAP strategic themes. The business plan that running a program such as ESMAP with a relatively introduces new major components related to energy elaborate governance structure may not be reasonable if access, poverty and gender questions; energy/environ- ESMAP can not mobilize more than $10 million per year ment reviews and social impact assessments; just in time over the next few years. assistance for energy market development; knowledge dissemination; and innovation. Concerning the dissemi- Conclusions nation of lessons, she proposed to make better use of technical reports often valuable but in the past frequent- Participants expressed their satisfaction with the ly discarded, to establish better links with other donors to quality of the discussion during the meeting which estab- share information and knowledge resources, and to be lished a consensus on the following topics: more active in identifying specific needs or knowledge * Dissemination. ESMAP should strengthen its effort for gaps. Concerning existing activities, she noted that there disseminating the lessons from its own work as well as is a continuous and growing demand for this type of tech- those from other bilateral and multilateral energy pro- nical assistance, particularly for just-in-time assistance on gram, including through direct on-line access and web- market reform and development. She also remarked that site links. It should organize an annual symposium some products listed as new, such as energy/environment focusing on key issues for energy development special- review are no longer really new and are already generat- ists. It should also prepare a compendium of existing ing interesting facts on which ESMAP can improve its bilateral and multilateral energy programs activities, effectiveness. In this respect, she welcome the suggestion strengths and experience; that The Netherlands propose to ESMAP concrete * Climate Change. The Netherlands will propose to actions for capacity building on climate change issues. ESMAP concrete ways for the Programme to be more actively engaged in building the capacity of developing Concerning the availability of resources, the countries in this area; manager of ESMAP underlined that the business plan was * Gender and Social Issues. The CG supports increased an ambitious one, but that it could not be implemented actions by ESMAP which correspond to many donors at the present level of funding. It was reported that since own priorities; the beginning of the calendar year ESMAP had received * Coordination. ESMAP should continue to improve its some $4.5 million in donor contributions, a reduction of coordination with programs such as ASTAE, AFREEI about 50% over the previous year. During the same peri- and RPTES, as well as with PPIAF and the World Bank od it had approved some 39 new projects requiring about energy practice. It was agreed that a joint meeting of $6.8 million in funding, of which $3.7 million still to be externally funded energy programs in the World Bank identified. With a cash position of $1.3 million, of which will be organized at the time of the ESMAP CG annual more than $700,000 in restricted funding, the ESMAP meeting in April 2000 in Washington, DC; * Professional Secretariat. ESMAP will propose to the CG ways for the program to act as a professional secre- tariat serving CG members and other key actors in ener- gy for development. 45 Annex 3 Activities Completed, Launched and Ongoing in 1999 Activities Completed Region Project Name Total Cost (US dollars) ESMAP Financing Theme AFR Region Gas Initiative - Phase I 768,000 600,000 International Trade AFR Region Improving Efficiency of Petroleum Procurement and Dissemination 148,000 100,000 Efficiency AFR Region Southern Africa: Development of an Electricity Market 130,000 130,000 International Trade AFR Region Southern African Conference on Regional Energy Regulation Cooperation 80,000 80,000 Sector Reform AFR Region LPG Options - Phase 1 292,000 100,000 Efficiency AFR Region Product Specification Standardization 227,500 80,000 Efficiency AFR Region Southern Africa: Renewable Energy for Rural Electrification 94,098 94,098 Renewables Bolivia Energy Strategy for Rural Sector 330,000 330,000 Rural & Peri-urban Bolivia Assistance to Regulatory Agencies 380,000 380,000 Sector Reform Bolivia Renewables for Rural Electrification 85,000 85,000 Rural & Peri-urban Brazil Special Initiative on Energy Efficiency 210,000 120,000 Efficiency Cameroun Energy Strategy 420,000 420,000 Sector Reform China Institutional Strengthening & TA in the Rural Power Sector: Power Efficiency Pilot Study 320,000 320,000 Efficiency EAP Region Development of a Regional Electricity Market in the Greater Mekong Sub-region I 140,000 140,000 Efficiency Global Review of Status of Energy Sector Reform 150,000 150,000 Sector Reform Global Rural Electrification Success Factors - Phase 1 50,000 50,000 Rural & Peri-urban Global Carbon Backcasting Study 100,000 100,000 Environment Global Financing of Decentralized Rural Electrification 15,000 15,000 Rural & Peri-urban Global Energy & Development Report, 1999 300,000 250,000 Sector Reform Global Increasing Efficiency of Gas Distribution Networks 150,000 125,000 Efficiency Global Lighting Services for the Rural Poor 120,000 120,000 Rural & Peri-urban India Overlay - Greenhouse Gas Emissions in the India Power Sector 125,000 60,533 Environment India Urban Energy Study 217,000 217,000 Rural & Peri-urban Kenya Photovoltaics Financing Mechanisms for Solar Electric Equipment 255,000 255,000 Renewables -P. Region Project Name Total Cost (US dollars) ESMAP Financing Theme Laos Decentralized Rural Electrification 208,000 208,000 Rural & Peri-urban LAC Region Socio-Environmental Issues & Options 130,000 130,000 Environment Morocco Gas Development Plan - Phase 2 525,407 525,407 Sector Reform Pakistan Energy Efficiency TA to ENERCON 300,000 280,000 Efficiency Peru Environmental Impact of Hydrocarbons Production 207,199 207,199 Environment Peru Training: Energy Management Services 307,198 307,198 Efficiency Slovenia Workshop on Private Participation 54,000 54,000 Sector Reform Uganda Rural Electrification Study 170,000 170,000 Rural & Peri-urban Vietnam Environmental & Safety Aspects of the Downstream Gas Industry 454,000 77,000 Environment 7,462,402 6,280,435 Activities Launched Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme AFR Region Opportunities for International Power Trade in the Nile River Basin 546,000 516,000 International Trade AFR Region Development of a Regional Power Market in West Africa 237,500 237,500 International Trade AFR Region Environment and Health, Bridging the Gaps (Phase IV) 350,000 200,000 Environment Bangladesh Opportunity for Women in Renewable Energy Technology Utilization 185,000 185,000 Renewables Bangladesh Towards Formulating a Rural Energy Study 420,000 310,000 Rural & Peri-urban Bangladesh Reducing Emissions from Three Wheeler Two-Stroke Engine Taxis 125,000 90,000 Environment Bangladesh Energy Sector Reform Workshop 120,000 Sector Reform Bolivia Training Program for Key Group Representatives From Indigenous People Regional Organization 325,000 325,000 Sector Reform Bulgaria Energy-Environment Strategy 310,000 240,000 Environment Chad Rural Electrification Study 72,500 72,500 Rural & Peri-urban China Reduction of Pollution by the Development of a Gas Market in Guangdong 225,000 200,000 Environment China Sulfur Emission Mitigation Policies 125,000 80,000 Environment China Clean Coal Technology 810,000 80,000 Environment Croatia Natural Gas Distribution Development 399,000 399,000 EAP Region Development of a Regional Electricity Market in the Greater Mekong Sub-Region 1,515,000 565,000 International Trade EAP Region Cost-Effectiveness Toolkit for Air Pollution Abatement Prioritization 140,000 100,000 Environment ECA Region Assistance to EU Accession Candidates 145,000 95,000 Sector Reform ECA Region Clean Transportation Fuel Program for Air Quality Improvement 475,000 365,000 Environment Global Best Practices for Grid Electrification - Phase 2 342,759 280,000 Rural & Peri-urban Global Energy Sector Strategy (Energy/Poverty Background Paper) 150,000 150,000 Sector Reform Global Energy Development Report 2000 280,000 200,000 Efficiency Global Removing Obstacles to Cross-Border Oil & Gas Pipelines 485,000 335,000 Sector Reform Global Advancing Modern Biomass Energy Opportunities & Challenges 250,000 233,000 Renewables Global Accelerating Grid-Based Renewable Energy Power Generation Conference 50,000 50,000 Renewables Un 0 Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme Global ESMAP Knowledge Dissemination Activity 100,000 100,000 Multiple Global Designing Competitive Single Buyer Power Market Structures 173,000 114,000 Sector Reform Global Energy and Development Report, 1999 300,000 250,000 Sector Reform Global Energy Efficiency Operational Exchanges Program 382,500 300,000 Efficiency India Household Energy & Women's Lives: The Case of India 50,000 50,000 Rural & Peri-urban India Household Energy, Air Pollution and Health 185,000 120,000 Environment Kenya Low-cost Electrification Pre-feasibility Project 140,175 104,775 Rural & Peri-urban LAC Region Regional Interconnection b/w Southern American Electricity Markets, Phase I & II 705,350 430,350 International Trade LAC Region Mitigation of Environmental and Social Impact of Oil and Gas Operations 384,000 192,000 Environment LAC Region Refining Industry in LCR - Sector Reform and Fuel Quality Improvement 1,040,000 480,000 Sector Reform LAC Region Renewable Energy For Development: Assessing Opportunities for Investments in the LAC Region 267,000 259,479 Renew-ables Macedonia Key Aspects of Energy-Environment/GHG Strategy 230,000 70,000 Environment Mexico Energy Sector Reform - Phase 1 464,000 422,000 Sector ReformRegion/ Mongolia Improved Space Heating Stoves for Ulaan Bataar 230,000 100,000 Efficiency Morocco Global Efficiency in Sidi Bernoussi Industrial and Peri-Urban Area 340,000 340,000 Efficiency Nicaragua Sustainable Charcoal Production in the Chinandega Region 88,000 86,000 Efficiency Nile Basin Opportunities for Power Trade on the Nile Basin II 616,000 504,030 International Trade Pakistan Rapid Energy-Environment Assessment 80,000 80,000 Environment Poland Energy Sector Regulation and Tariffs 1,499,000 720,000 Sector Reform Romania Energy Efficiency (Reconnaissance) 460,000 300,000 Efficiency Russia Energy and Environment Review and Strategy 750,000 90,000 Environment Thailand Motorcycle Fleet Upgrade to Reduce Air Pollution in Bangkok 140,000 100,000 Environment Thailand Power Pool Study 160,000 130,000 International Trade Turkey Energy-Environment Review 483,870 293,070 Environment Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme Vietnam Renewable Energy Action Plan 543,000 223,000 Renewables Vietnam Lead Phaseout Initiative 190,000 100,000 Environment Vietnam Revision of the Existing Legal & Regulatory Framework for the Petroleum Sector 287,000 89,600 Sector Reform Yemen Rural Energy Strategy 406,730 253,230 Rural & Peri-urban $18,657,384 $11,729,534 tzn Activities Ongoing on December 31, 1999 Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme AFR Region Development of a Regional Power Market in West Africa 237,500 237,500 International Trade AFR Region Forum on Downstream Petroleum 170,912 54,096 Sector Reform AFR Region Gas Training 273,000 43,000 Efficiency AFR Region Opportunities for International Power Trade in the Nile River Basin I 546,000 516,000 International Trade AFR Region Petroleum Transportation Corridors 150,000 150,000 Efficiency AFR Region Regional Electricity Demand Management TA - Phase II 100,000 100,000 Efficiency AFR Region West Africa Solar Project 360,000 360,000 Renewables AFR Region Environment and Health, Bridging the Gaps (Phase IV) 350,000 200,000 Environment Bangladesh Energy Sector Reform Workshop 120,000 120,000 Sector Reform Bangladesh Opportunity for Women in Renewable Energy Technology Utilization 221,096 185,000 Renewables Bangladesh Reducing Emissions from Three Wheeler Two-Stroke Engine Taxis 125,000 90,000 Environment Bangladesh Towards Formulating a Rural Energy Study 420,000 310,000 Rural & Periurban Bolivia Country Programme - Phase II 1,614,883 1,614,883 Rural & Periurban Bolivia ENERGY EFFIC & ENVIRONMENT 406,000 406,000 Efficiency Bolivia National Biomass Programme 2,637,020 2,637,020 Rural & Periurban Bolivia Trng Program for Key Grp. Rep. From Indigenous People Regional Organization 325,000 325,000 Sector Reform Brazil Bahia End-use Energy and Effluent Management Strategy TA (1*) 64,400 64,400 Rural & Periurban Brazil Energy Efficiency TA Phase II - FINEP (2*) 90,000 90,000 Efficiency Brazil Northeast Renewable Energy Identification 123,830 123,830 Rural & Periurban Brazil,Honduras, Renewable Energy For Development: Assessing Opportunities for Investments in the LAC 267,000 259,479 Renewables Dominican Rep. Bulgaria Energy-Environment Strategy 310,000 240,000 Environment Cambodia Commercialization of a Power Company 369,881 369,881 Sector Reform Cameroon Decentralized Rural Electrification 250,000 250,000 Rural & Periurban Chad Rural Electrification Study 72,500 72,500 Rural & Periurban Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme China Clean Coal Technology 1,634,095 80,000 Environment China Reduction of Pollution by the Development of a Gas Market in Guangdong 225,000 200,000 Environment China Sulfur Emission Mitigation Policies 125,000 80,000 Environment Comoros Solar Market Development 168,120 168,120 Renewables Croatia Natural Gas Distribution Development 399,000 399,000 Sector Reform East Asia Cost-Effectiveness Toolkit for Air Pollution Abatement Prioritization 140,000 100,000 Environment ECA Region Asst. to EU Accession Candidates 228,000 95,000 Sector Reform ECA Region Central Asia Clean Transportation Fuel Program for Air Quality Improvement 837,000 367,000 Environment ECA Region Central Europe: District Heating I 854,506 630,556 Efficiency Egypt Renewable Energy Strategy & Institutional Strengthening Study 113,000 87,000 Renewables Egypt Solar Thermal Power Options 50,000 50,000 Renewables Ghana Corporatization of Distribution Concessions through Capitalization 133,186 133,186 Sector Reform Global Accelerating Grid-Based Renewable Energy Power Generation Conference 50,000 50,000 Renewables Global Advancing Modern Biomass Energy Opportunities & Challenges 250,000 233,000 Environment Global Best Practices for Grid Electrification - Phase 2 342,759 280,000 Rural & Periurban Global Costs of Grid Extension for Rural Electrification 85,000 85,000 Rural & Periurban Global Designing Competitive Single Buyer Power Market Structures 173,000 114,000 Sector Reform Global Electricity Benefits Assessment 237,000 237,000 Rural & Periurban Global Energy & Environment Steering Committee 138,050 138,050 Environment Global Energy and Development Report 1999 250,000 237,668 Sector Reform Global Energy Development Report 2000 280,000 200,000 Sector Reform Global Energy Efficiency Operational Exchange Program 382,500 300,000 Efficiency Global Energy Sector Strategy (Energy/Poverty Background Paper) 150,000 150,000 Sector Reform Global Energy, Transport, Environment Study 28,000 28,000 Environment U1 Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme Global Environmental Manual for Power Development 455,167 455,167 Environment Global ESMAP Knowledge Dissemination 100,000 100,000 Multiple Global Gas Flaring Reduction 87,000 87,000 Environment Global Oil & Gas Investment Promotion Project 223,600 170,000 Sector Reform Global Oil Spills Occurrence Database, Modeling, Remediation and Prevention 432,500 50,000 Environment Global Peri-urban Electrification Project \a 15,000 15,000 Rural & Periurban Global Regional Project Identification Strategy II 120,150 120,150 Renewables Global Removing Obstacles to Cross-Border Oil & Gas Pipelines 485,000 335,000 International Trade Global Solar Initiative Regional Strategy 161,300 75,000 Renewables Guinea Decentralized Rural Electrification 250,000 250,000 Rural & Periurban India Dissemination on Environmental Issues in the Power Sector 403,923 403,923 Environment India Household Energy & Women's Lives: The Case of India 185,000 120,000 Rural & Periurban India Household Energy, Air Pollution and Health 185,000 120,000 Environment India Rural Energy Study 412,709 412,709 Rural & Periurban Kenya Low-cost Electrification Pre-feasibility Project 140,175 104,775 Renewables LAC Region Central America: Rural Electrification & Power Reform 306,000 306,000 Rural & Periurban LAC Region Improving Fuel Quality in Latin America (Lead Elimination Phase 2) 363,022 363,022 Environment LAC Region Mitigation of Environmental and Social Impact of Oil and Gas Operations 399,000 192,000 Environment LAC Region Refining Industry in LCR - Sector Reform and Fuel Quality Improvement 1,040,000 480,000 Sector Reform LAC Region Regional Interconnection b/w Southern American Electricity Markets, Phase I & II 705,350 430,350 International Trade Macedonia Key Aspects of Energy-Environment/GHG Strategy 230,000 70,000 Environment Malawi Rural Energy Development 322,554 322,554 Rural & Periurban Mekong Regional Electricity Market: Basin Power Pool Phase II 1,515,000 565,000 International Trade Mexico Energy Sector Reform - Phase 1 764,000 422,000 Sector Reform Region/ Country Project Name Total Cost (US dollars) of which ESMAP Theme Mexico Environmental Strategy for the Energy Sector 500,000 380,000 Environment MNA Region Lead Elimination 50,000 50,000 Environment Mongolia Coal Stove Improvement Program 230,000 110,000 Rural & Periurban Mongolia Energy Efficiency Program 590,150 60,000 Efficiency Mongolia Improved Space Heating Stoves for Ulaan Bataar 230,000 100,000 Efficiency Morocco Global Efficiency in Sidi Bernoussi 340,000 340,000 Efficiency Nicaragua Modernization of Fuelwood Sector 175,000 175,000 Rural & Periurban Nicaragua Sustainable Charcoal Production in the Chinandega Region 88,000 86,000 Efficiency Nile Basin Opportunities for Power Trade on the Nile Basin II 616,030 504,030 International Trade Pakistan Clean Fuels Project 530,000 530,000 Environment Pakistan Rapid Energy-Environment Assessment 95,000 80,000 Environment Peru Rural Energy Electrification 209,727 209,727 Rural & Periurban Peru/ Colombia End-use Energy & Effluent Management Strategy Study (3*) 50,000 50,000 Efficiency Philippines Strengthening of Rural & Non-conv. Energy Development Pgm 210,000 210,000 Renewables Poland Energy Sector Regulation (incl gas proj) 1,499,000 720,000 Sector Reform Romania Energy Efficiency (Reconnaissance) 460,000 300,000 Efficiency Russia Energy and Environment Review and Strategy 750,000 90,000 Environment Slovak Rep. Energy Efficiency TA - Monitoring & Targeting & Feasibility of Third Party Financing 303,053 303,053 Efficiency Sri Lanka Energy-Environment Review 400,000 290,000 Environment Swaziland Solar Market Development 189,000 189,000 Rural & Periurban Tanzania TA DOE and TANESCO 757,284 757,284 Efficiency Thailand Motorcycle Fleet Upgrade to Reduce Air Pollution in Bangkok 140,000 100,000 Environment Thailand Power Pool Study 160,000 130,000 International Trade Turkey Energy-Environment Review 433,110 293,140 Environment Un Regionl Country Project Name Total Cost (US dollars) of which ESMAP Theme Uganda Power Restructuring Implementation Strategy 99,932 99,932 Sector Reform Ukraine Integrated Heat Demonstration Project 219,013 219,013 Efficiency Vietnam Institutional Reform & Restructuring of Petrovietnam Gas Company 189,827 104,524 Sector Reform Vietnam Lead Phaseout Initiative 190,000 100,000 Environment Vietnam Power Sector Regulation & Electricity Law 329,700 329,700 Sector Reform Vietnam Renewable Energy Action Plan 568,100 223,000 Renewables Vietnam Reservoir Management Workshop & Upstream Fiscal Systems 192,100 76,000 Sector Reform Vietnam Revision of the Existing Legal & Regulatory Framework for the Petroleum Sector 287,000 89,600 Sector Reform Yemen Rural Energy Strategy 406,730 273,230 Rural & Periurban Zambia Energy Sector Restructuring 583,071 583,071 Sector Reform Zimbabwe Decentralized Rural Electrification 184,860 184,860 Rural & Periurban $38,434,375 $27,570,983 57 Annex 4 Reports on Projects Published in 1999 Country/Region Title Ref. China Improving the Technical Efficiency of Decentralized Power Companies 222/999 Global The Effect of a Shadow Price on Carbon Emission in the Energy Portfolio of the World Bank: A Carbon Backcasting Exercise (English) 212/99 Global Increasing the Efficiency of Gas Distribution Phase 1: Case Studies and Thematic Data Sheets 218/99 Global Global Energy Sector Reform in Developing Countries: A Scorecard 219/99 Global Global Lighting Services for the Poor Phase Il: Text Marketing of Small "Solar" Batteries for Rural Electrification Purposes 220/99 Global A Review of the Renewable Energy Activities of the UNDP/World Bank Energy Sector Management Assistance Programme 1993 to 1998 223/99 Global Energy, Transportation and Environment: Policy Options for Environmental Improvement 224/99 India Environmental Issues in the Power Sector: Manual for Environmental Decision Making (English) 213/99 India Household Energy Strategies for Urban India: The Case of Hyderabad 214/99 Morocco Gas Development Plan Phase II (French) 210/99 Peru Reform and Privatization in the Hydrocarbon Sector (English and Spanish) 216/99 Slovenia Workshop on Private Participation in the Power Sector (English) 211/99 Sub-Andean Region Environmental and Social Regulation of Oil and Gas Operations in Sensitive Areas of the Sub-Andean Basin (English and Spanish) 217/99 Uganda Rural Electrification Strategy Study 221/99 59 09 'C'K A A tJl1 v 11 'L The World Bank 1818 H Street, NW Washington, DC 20433 USA Tel 1.202.458.2321 Fax 1.202.522.3018 Internet: www.worldbank.org/esmap Email: esmap@worldbank.org - , -.. - 41'I Joint UNDP/The World Bank Programme