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U 0~~~~~~~~~~~~~~~~~~~~L 0%40 TABLE OF CONTENTS Mission Statement 2 Esmap Members in 1 998 3 Introduction 4 Products and Services 8 1998 Portfolio at a Glance 9 ESMAP in the World 0 Operations 1 2 Themotic Overviews 16 Energy Sector Reforms 16 Energy Trade 19 Energy and the Environment 22 Energy Efficiency 31 Renewable Energy 35 Rural and Peri-Urban Household Energy 36 Dissemination 39 Governance and Management 40 Consultative Group 40 Technical Advisory Group 40 Management, Staffing and Procedures 41 Monitoring of Implementation 42 List of Abbreviations and Acronyms 48 List of Boxes, Figures and Tables 49 Annex 1 Final Communiqu6, ESMAP Consultative Group Meeting, New York, NY,April 2-3, 1 998 51 Annex 2 Activities Completed, Launched and Ongoing in 1998 53 Activities Completed in 1998 54 Activities Launched in 1998 56 Other Ongoing Activities in 1998 58 Annex 3 List of ESMAP Reports Available to the Public 62 ESMAP 1998 HIGHLIGHTS 89 ongoing projects in 37 countries Cumulative value of ESMAP ongoing projects: $21 .7 million 12 projects completed, 17 projects launched 9 donors contributed $8.2 million to the program Introduction of a new project evaluation approach Launching of country Energy Environment Reviews A new publication: The Energy and Development Report 7~~~~~ 9,,~~~~~~~~~~~~~~~~~~~~~~W 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. ESM/lAP focuses on the role of energy in economic development with the objective of contributing to poverty alleviation and economic progress, improving living conditions, and preserving the environment in developing and transition economies. ESLMAP 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 450 projects, in more than 100 countries. ESMAP concentrates on issues not yet mainstreamed in the operations of bilateral or multilateral development institutions. It aims at designing innovative approaches to address energy issues. ESINLAP is a participatory and partnership program which involves local and international institutions and businesses in project formulation and implementation. ES MAP'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. ESMAP in 1998 ESMAP Donors Members of the Consultative Group Belgium General Administration for Development Marubeni Corporation, Japan Cooperation Norway Canada Royal Ministry of Foreign Affairs Canadian International Development Agency Sweden Denmark Swedish International Development Cooperation Ministry of Foreign Affairs Agency EnergieNed, The Netherlands Switzerland Department for International Economic Cooperation Finland Ministry of Foreign Affairs The Netherlands Ministry of Economic Affairs France Ministry of Foreign Affairs Ministry of Foreign Affairs United Kingdom Germany Department for International Development Bundesministerium fur WVirtschaftliche Zusammenarbeit und Entwicklung The World Bank (co-sponsor) Italy United Nations Development Programme Ministry of Foreign Affairs (co-sponsor) At Large Members of the Consultative Group ESMAP Administrative Team Edward D. Ayensu Dominique Lallement, ESMAP Manager'* Rufino Boomasang William Porter, ESMAP Manager** Jose Goldemberg Henri Bretaudeau Maureen Cuffley Chairman of the Consultative Group Nvra Guice Richard D. Stern Joanne Fleming Brenda Manuel Technical Advisory Group Kristin McGrath Andrew Barnett Nancy Pinto Jan Moen Kyung Hee Plusquellec Herbert Muller* Josephina Regino-Suarez Youba Sokona Representatives from Sponsoring Organizations Thomas Johansson (UNDP) Suresh Hurry (UNDP) James Bond (The World Bank) 'Resignied in AuLgalst 1QQ8 after being appo inted NMinister of Finance of Bolivia. "'Dominique Lallement succeeded W:\illiamii Porter as ESAAL-P Mianager on April 15, 1998. Meeting the Energy Needs of the Poorest: Taking Stock and the Road Ahead for ESMAP The year 1998 saw major upheavals in the energy This report also contains the customary annexes sector globally, but even more so in developing and with ESMAP data and documentary material. Annex transition economies. W,Vhile the demand for energy 1 reproduces the ESIVIAP Consultative Group's 1998 has continued to increase, if only to keep up with Communique. Annex 2 provides data on ESMAP population and economic growth, the financial activities (completed, newly launched, and on-going) resources to meet those needs have become scarcer. during calendar year 1998. Annex 3 provides a In this already bleak context, the situation of the comprehensive listing of ESMAP's reports on poorest countries and population segments has completed activities. become bleaker. As a result of financial crises in Asia, Latin America, and many countries of Eastern Taking Stock Europe, Central Asia, and Africa, households' In a document entitled ESA'IAP: Purpose and disposable incomes, fiscal resources and private Approach, ESMLP's management proposed that the capital have declined rapidly. This has further Programme focuses on finding solutions for the delayed the opportunities for poorly served delivery of energy services for the unserved or populations and economies to access reliable, underserved populations, in particular the poorest. efficient, and environmentally sustainable energy This strategy paper was issued in July1998, after services. receiving the overall endorsement of the donors at The year 1998 underlined the fact that the their April 1998 meeting, and following further challenge ahead remains very complex. A broad discussion with the Technical Advisory Group (TAG) consensus exists between all partners in energy and LT-DP inJune 1998. Three strategic directions dcvclopment that energy services are indispensable were outlined for the Programme: for increasing productivity and economic growth, * Increasing access to energy services. for meeting basic needs in households, and for * Providing efficient energy services through social services in education, health, or the supply the development of energy markets. of clean water. A consensus has also largely been * Ensuring environmentally sustainable reached that functioning markets, economic energy services. growth, environmental and financial viability are prerequisites to meeting the energy needs of the Increasing Access to Energy Services poor. However, implementing the tenets of the It is estimated that more than 2.0 billion people in consensus is difficult. the world still do not have access to modern and Against this background, the relevance of the efficient energy services. They rely largely on ESMIAP program has been reconfirmed. In traditional bio-mass resources, and spend 10% to particular, the demand continues for technical 12% of their disposable income to purchase assistance to help move forward with market additional fuels and batteries. These people have reforms, and to test new institutional, financial and little chance to improve their productivity and technical approaches for the delivery of energy generate enough income to access more productive services to the poor. and sustainable energy services. Among them, This annual report covers calendar year 1998 women are particularly vulnerable as they spend a ESMAP activities. The present chapter provides a substantial share of their time procuring and using status report on the implementation of the ESMAP bio-mass, with deleterious impacts on their strategx. The following chapters discuss ESMAP productivity, health, and life expectancy. Improving operations, the program's governance and manage- access to energy services needs to combine 4 ment, and the financial results. improvements in markets for fuels and energy sources, in particular renewables, and testing new countries continued to embark on reforms, made institutional and financing mechanisms in which remarkable progress in defining the appropriate energy users and suppliers become true partners. regulatoryand lega frameworks, orprivatized their The 1998 work-program of ESNAP reflects the industries (Bolivia, Brazil, Peru, Kazakhstan, Ivory continued commitment of the Programme to search Coast). For others, the work is just beginning for solutions and improve access to energy services (Vietnam, Madagascar, Zimbabwe). For example, the by the poorest. Some of the activities seek global public sector still represents 90% of power sector solutions, such as the project Techniquesfor Fi7ancing investments in developing countries. It must also be Photovoltaics, which proposed ways for expanding the recognized that implementation of such reforms is commercial sales of photovoltaics for household and politically complex (Russia, Ukraine), requires commercial use in rural areas of developing sustained commitment (Argentina, Chile, Poland, countries. This will be complemented by an on- Hungary), and substantial resources, in particular going study which aims to compare the experience technical assistance and financial support. in six to eight countries in Finanicing Decentralized As in previous years, facilitation of core sector Rursal Electrification. Other activities, such as the reforms has continued to be a fundamental ESMAP Uganda or Zimbabwe Rural Electrification priority. Through a review of experience with Strategies, are focussed on specific countries but the reforms, organization of workshops (Slovenia, South results have potential for much broader application. Africa) and seminars for clients, and specific country technical assistance efforts (Bolivia, Vietnam), The Development of Energy Markets ESMiAP has continued to generate new knowledge The East Asia crisis underlined once again the on the status of reforms and concretely assist with fragilitv of energy markets where commercially implementation. These experiences are then shared oriented reforms havc not yet taken placc. According throughout the world. to a recently completed ESMIAP study called Review of Status of Enzergy Sector Reform, only a handful of Environmentally Sustainable Energy Services countries, 2hat most, have made strong headway in The energy sector is the single largest source of implementing market reforms. As a result, for pollution: 80% of carbon emissions from human example, only 10 countries have mobilized the bulk activity come from energy, whether from power of all private sector investments in power generation or uses, from industry, or from urban development; in most countries the government has transport fuels. Destruction of bio-mass, pollution been unable to meet the need to improve the supply of land or water resources from over-use or spills of energy to all of its people. In 1998, a number of further increases the environmental liability caused Bolivia - Constrution of a gas pipeline terminal near Santa Cruz. by the energy sector. Millions of human lives are mass resource management (Bolivia). They are yearly affected or lost from lack of proper generating new models for associating non environmental management: premature deaths, governmental organizations NGOs, the private bronchial or pulmonary infections from air pollution, sector and other local partners in the proper debilitating diseases from lead ingested by environmental management of energy. Finally, malnourished people. ESMAP is providing uniqmue leadership in new areas Environmental mismanagement also represents such as the impact of energy resource development foregone income and GDP growth. For example, on indigenous populations. health costs of particulates in the air in China have been estimated at 5% of GDP; the gas flared in Af- Looking Ahead rica, represents 140% of electricity yearly generated The relevance of the ESMAP strategy is likely to in Africa and 7.9% of the continent's GDP. Any fore- remain strong in the short and medium term. But, gone GDP growth is also a foregone opportunity to like all strategies, it should keep evolving as new invest in poverty alleviation. issues emerge and new experience is gainecl. The interface between energy and enviro- Access to energy services for poverty alleviation will nmental issues - local, regional or global - was continue to represent a major challenge. Electricity ESLAP's increasing concern in 1998. While work availability today is still limited to a small share of on gas flaring and lead elimination has continued, the world's population (Box 1.1). Demand for energy the latter expanding from Latin America to South in developing and transition economies is expected Asia and to the 1Aiddle East, Energy andEnvironmient to increase to amounts which might be twice the Reviews have been launched as a new ESMAP consumption of OECD countries in 20 years, even 'product' to assist countries in developing in an energy efficient sceinario (Box 1.2). In addition, environmentally sustainable energy policies. This has it is estimated that by year 2020, 70% of th e world been addressed in the context of the discussion paper population will be living in urban environmilenits, alid Fzuel for Thought: a New Environmental Strategy for 60% of those will be poor. the Energy Sector which proposes a energy- Many questions remain, therefore, for ESMIAP environment policy for the world Bank Group. to help address: How will the energy needs of the Other activities, focussed on energy efficiency or bio- poor, increasingly displaced from the rural to the Figure 1 Energy Access for the Poor: Our Clients Have a Long Way to Go Percentages of populations served by electricity Urban Rural 100 100 _ 80 80o 70 - 70 - 60 6- 0 - 40 40 20 ~~~~~~~~~~~~~20- 0 I0 6 Source: K. Jechoutek, Empowering the Poor: Sustainable Energyfor the Poor urban areas, be met? V/hat possibilities do we have * Partnerships between the W6 rld Bank Group and to increase the availability of energy services to the UNDP, public and private donors, client enhance the productivity of the poor? W hat are the countries governments, institutions and busi- financing and institutional resources needed to nesses, and world energy partners. maintain the existing supply? How can the specific * Intellectual leadership both by targeting program needs of women be addressed effectively? assistance on thematic areas in which limited M1arket Developmeent. There is no walking away knowledge and experience is readily available, from the current trend to reform energy markets. and by drawing on experiences of a world-wide The unfinished agenda is such, on all continents, that pool of 'energy for development' experts. the demand for continuing current work -for * Inzovation through a systematic attempt to search sharing experiences available (WXest Africa) and for for and test new solutions adapted to the needs providing technical assistance for implementation of a particular client. (India, Poland, Mexico)- is unlikely to subside. * Capacity buildinzg through an effort to associate Furthermore, new themes need further analysis, in partner governments and institutions in the de- particular regarding the impact of reforms on the sign and implementation of program activities. poor and how to mitigate efficiently the social costs * Kiowledge generation and dissemin2(ationi through a of market transformations. rigorous selection of only those activities which Environmentally sustai'nable energy services are a generate new knowledge, and the dissemination collective responsibility which will require of that knowledge to all partners. imaginative solutions and sustained commitment. Again, ESMP has a fundamental role to play. ESlMLAP already has a strong record in applying all these criteria. The challenge ahead is to continue Finally, given the fairly limited size of the thequestforexcellence,tocapitalizeonpastknowl- Programme, its efficiency and success wxill continue edge and experience; and to keep strengthening its to depend on the five main criteria agreed by financial and intellectual partnerships, and its capac- ESNATP's management and donors: ity building efforts. Figure 2 Actual and Projected Energy Demands: Our Clients Are Front-Runners 20 18 _ Developing Countries 1 6 FSU/CEE 14 - 12 _ X OECD 10 _ 8 :- 6 4 2 0 1860 1880 1900 1920 1940 1960 1980 2000 2020 2040 2060 7 Products and Services ESMAP Instruments Knowledge Generation and Dissemination ESIA/LkP concentrates on issues not vet mainstreamed * Conferences, roundtables in the operations of bilateral or multilateral * Publications development institutions, or of the private sector. It * Training, workshops and seminars aims at designing innovative approaches to address Technical Assistance cnergy issues. * Specific studies ESMAP provides technical assistance which * Advisory services helps build consensus and provides policy advice on * Pilot projects sustainable energy development to governments of developing countries and economies in transition. which served to fill the knowledge gap on the energy ESNIAP contributes to the transfer of technology situation in a specific country, and provide options and knowledge in energy, sector management. to address prioritv energy issues in an environment ESINMLAP's mandate has evolved over time to meet of rapidly rising energy prices. the changing needs of its clients. ESMIAP suggests ESMAP's product line has been expanded to innovative and strategic "cutting edge" solutions to include targeted technical studies, strategic advice, governments, in the areas of both traditional and best practice dissemination, and pre-investment non-traditional energy use, complementing and work. The work program in 1998 included over 90 facilitating the work of other development projects grouped under six principal themes: institutions and the private sector. ESAIP is focused * energy sector policy and restructuring, on upstream, that is pre-investment, issues that have linkages between energy use and the clear potential for key policy formulation and energy environment, investment. * promotion of access to energy in rural areas and ESi\4AP has operated in over 100 countries under-served households, through approximately 450 activities covering a * mainstreaming renewable energy techrologies, broad range of energy issues. Early on, these activities encouraging more energy efficient practices, and were almost exclusively Country EnergyAssessments * facilitating international energy trade. Box 1 Vietnam: Technical Assistance for Natural Gas Development ESALAP provides technical assistance to Vietnam in the oil and gas sector to support the development of indigenous gas resources and to build up a modern gas industrv. The main use of natural gas is in the power sector, where the -World Bank has financed several projects, for power generation. ESMAP assistance in- cludes several elements, from the wellhead to the burner tip, essential for the introduction of a modern natural gas industry such as advice on the design of fiscal terms for oil and gas exploration and development by private companies, methods for enhanced reservoir management, production and use of gas in a safe and environineiitally friendly way, gas purchase contracts and gas sales contracts in accordance with best interna- tional practice, gas distribution and metering, and institutional aspects of gas sector development, in particu- lar the corporatization of the Petrovietnam gas company. ESMUAP technical assistance to Vietnam includes studies, advice, workshops and training of Petrovietnam managers and experts. The capacity building and advice to the Government and Petrovietnam has already greatlv improved the familiarity of Vietnamese decision makers with best international practices in all phases of gas development. It also helped develop a more level playing field for negotiations of gas supply contracts and fiscal terms with foreign investors. Bent R. Svensson 8 1998 Portfolio at a Glance Number of Project by 1998 Portfolio Profile Strategic Area (as a % US$ Value) Eni-ironnsneal Nfarlket Rcfor- Access Fn--.re ,nrInal Sustajnabilitv t 4 46% ustamabslies ofs/ Access, iX~ u k rkreorm, Number of Project by Thematic Breakdown Thematic Area (as a % US$ Value) hIW-ItiLi,-Il T-&de l n..ronin=t Rutral& 4 / Sct.r 16% r u rirban f ' Re,b- -2IRneuMMin n17en Number of Project by Regional Breakdown Geographical Area (as a % US$ Value) S-oth Asi, S-r,th iS.1/L Eist AsiS AS 3 SibSabaras Iass sIa 1-% Lurupe& Afi- 13 S,b S, hr- Cetural Asia PR/. .'I ' ifer'sa Europe & Central Asia GloR- 19'nAs IiileLast & insoba 1')'S, 1 | Lathmetrierlca | e\'N-sh Africa 3 / Caribbean AllIdle Fast & NcrthAirs -3 I ii;,o Aanerica & Cae:hhean 9 ESMAP in the World in 1998 ESMAP Donor X Ongoing Project A New Project * Completed Project 0 ,A 10-:Dj X X *~~~~~~~~~~: 0*V : 04 : X: V: : X @0. t :0 S A*;0:00 :t :P:P000:f* : ::0*S00:0:X0rfa0:05:R f f: : f iV0S; ;\XES:002:EQ00000 .tt00 : f 7a7 LDD E4$ :0 ft ::0000X::: f00:S :0 0 *- ='=: ::: ;: f ~ ~ ~ ~ ~ ~ 0 0 *0 0 X ;-ff;f:0f0 0: :X= :f : tX:000i :00ff:0: 0:0000 AA*; 002000V(0uS :0: ::00:X00:0000: 0000Ad A:S:. * f : :: : :-~~~~~~~~~~~~~~~~~~~~~~~~~~~1 ESMAP Operations bal energy-environment linkages; * Energy Efficiency: encouraging more efficient This chapter provides an overview of the 1998 port- energy practices; and folio of trends as compared to the 1997 portfolio, * Rural and Peri-urban Access: promotin- energy and discusses the likely impact of new portfolio man- access in rural and pern-urban areas, and to un- agement tools recently introduced. der served households and businesses; Portfolio Overview The ESIVLAP Project Development Facility (cat- egory "other" of Table 1) was officially established Portfolio Profile in 1998 to provide seed money to finance the prepa- As of December 31, 1998, ESMNIAP's portfolio corn- ration of potential ESMALAP projects. Annex 2 pre- prised 89 projects, totaling funding for US$21.6 mil- sents a list of projects completed, launched and on- lion, implemented in about 37 countries. These g-oing in 1998. projects were grouped under six main themes: Table 1 presents the breakdown of the 1998 port- * Sector Reform: assisting with energy sector folio by thematic and geographic area. Tabl, 2 pre- policy and restructuring; sents a view of the portfolio by geographic area cross- * Trade: facilitating international and domestic referenced by theme. The evolution of the portfolio energy trade. during 1998 is presented in Table 3. Three projects * Renewable Energy: mainstreaming renewable were dropped from the portfolio, namely: (a) Gas energy technologies; Leakage; (b) Argentina and Netherlands CNG/LPG * Environment: analyzing local, regional and glo- Expcricnce; and (c) China Natural Gas Development Table 1 Profile of 1998 Portfolio as of December 31, 1998 Number of Percentage Amount of Percentage Projects ESMNVAP Financing (thousands US$) By Theme Sector Reform 15 17% 3,678 17% Trade 4 4% 950 4% Renewable 12 13% 7,743 36% Environment 16 18% 3,289 15% Efficiency 21 25% 4,279 20% Rural & Periurban 20 22% 1,638 8% Other 1 1 % 65 0% Total 89 - 21,643* By Region Global 17 19% 2,133 10% Sub SaharanAfrica 25 28% 5,637 26% East Asia 12 13% 1,927 9% Europe & Central Asia 5 6% 1,286 6% Latin America & Caribbean 20 22% 7,794 36% Middle East & North Africa 3 3 % 695 3 % South Asia 7 8% 2,217 10% 12 Total 89 - 21,643* T-tal -o -ot add up b--oon of rouoJtnt Strategy. There is a potential for some of these dollar terms, the value of the portfolio also decreased projects to be included in the future after some modi- from $25.4 million in CY97 to $21.6 million in fications in the projects' designs. CY98. In general, the portfolio's profile for 1998 was Portfolio Trends and Management similar to that of 1997. Recognizing the limitations Over the past two years, ESMN\AP has experienced a of any portfolio classifications, the largest share of slight decrease in its portfolio size (Figures 3 and 4) the portfolio in terms of the thematic areas continues and in US dollar terms, the average size of an to be in efficiency projects, and in regional terms, it ESMAP project has also decreased (Figure 5) from continues to be in Africa. about $280,000 to $240,000. This decrease is The increase of environmental projects in the explained by the completion of two relatively large portfolio reflects ES.MAP's commitrnent to additional projects: (a) India-Environmental Issues in the Power efforts in the field of energy and the environment. Sector, and (b) Poland-Sector Restructuring, which In 1998, ESMVAP also increased the number of received ESMAP financing in the amount of projects in Latin America, and East Asia and South approximately $2.0 and $1.0 million, respectively. Asia, reflecting the demand for continued assistance ESMAP's portfolio of projects at the end of for policy reform and privatization efforts within calendar year (CY) 98 decreased from 90 projects, these regions. Although the share of projects in in CY 97 to 89 projects in CY 98 (Table 4). In 'US Africa has decreased from 31 to 28 percent, a solid Table 2 Profile of 1998 Portfolio by Region and Theme f t s-ga Ny $Wm9 k Global 2 7 4 2 1 0 1 17 Afica 5 0 6 4 7 3 0 25 East Asia 4 2 2 1 2 1 0 12 Europe & CentralAsia 1 0 0 0 4 0 0 5 Latin America 1 4 6 3 6 0 0 20 Middle East & North America 1 0 0 2 0 0 0 3 South Asia 1 3 2 0 1 0 0 7 TOTAL 15 16 20 12 21 4 1 89 Table 3 Evolution of the Portfolio (Number of Projects) Number of Projects As of December 31, 1997 90 Approved and operational, during calendar year 1998 17 Completed 12 Cancelled 6 New sub-total as of December 31,1998 89 Approved, not yet operational 10 Expected closings as of June 30,1999 35 Expected new projects as of June 30, 1999 14 Total size of portfolio expected as ofjuly 1, 1999 78 13 Figure 3 ESMAP Financing 1997/1998 work program for Africa was being developed by the end of 1998 and should start being implemented in 1999. 26 - 25.4 In 1998, a major portfolio review was carried out 24 - [ to review all on-going projects. The ESNLIAP Pro- gram Manager met with each project managers to discuss the implementation of on-going projects, and 2-2 2.6 -- 21 _ g g agree on a schedule for closing completed and dor 20 - mant operations. The full results of the review will 19 - be reflected in the 1999 portfolio. 1997 198 The systematic introduction ofthe Logf-rame ap- proach (see chapter on governance and management) as a key management tool for the ESMIAP program Figure 4 Number of Projects 1997/1998 will now provide: * An environment for quality and consistency in 100 - 90 89 project design and implementation monitoring; 80 _ @ * A mechanism for project redesign when imple- 7(* mentation circumstances change; I T W * A process to look at issues on a thematic basis 60 - f& t and within the framework of the repional or 40 jDcountry strategy for the energy sector; 20 g g * The means to pay special attention to inter- 0 sectoral issues, such as defining more clearly the 1997 1998 linkages between energy production, transpor- tation and use, and the impact of these activities Figure 5 Average Project Size 1997/1998 on the environment, and assessing the results of energy sector reform; and 290,000 285026 * A clearer distribution of responsibilities between --F -"- .$i; the World Bank staff and the counterport agen- 280,000 - E 260 000 m cies in recipient countries. , t ~~~~~~~~243,1777 240,000 L 230,000 I 2120.000V 1997 1998 Figure 6 Changes in Project Portfolio, 1996/1998 3 5 - ~~~31 100 909 30 -0 5 g , 25- 23 ~~2 MAR ~ ~ ~ ~ -60- 1996 1997 1998 1996 1997 1998 Projects Launched Ongoing Projects Table 4 Thematic and Geographic Coverage of ESMAP Projects in 1997 and 1998 1997 1998 Nb. % Nb. % By Theme Sector Reform 14 16% 15 17% Trade 3 3 % 4 4% Renewable 14 16% 12 13% Environment 12 13% 16 18% Efficiency 27 30% 21 25% Rural & Periurban 19 21% 20 22% Other 0 0% 1 1% Total 89 - 89 - By Region Global 18 20% 17 19% Africa 28 31% 25 28% EastAsia 10 11% 12 13% Europe & Central Asia 7 8% 5 6% Latin America 17 19% 20 22% Middle East & North Africa 5 6% 3 4% South Asia 4 4% 7 8% Total 89 - 89 - Table 5 Disbursements Disbursements through December 31, 1998 Some $13 million had been disbursed at the end of 1998 against projects in ESMAP portfolio, which (thousands US$) % represented 60% of the total funding for these ByTheme: projects. Because of foreign exchange fluctuations Sector Reform 2,664 21% and a redefinition of base costs for Bank staff sala- Trade 783 6% ries, some of the allocated amounts were adjusted Renewable 1,301 10% from figures, published earlier, and ESMAP-financed Environment 1,485 11% allocations were reduced or increased accordingly Efficiency 3,597 28% Rural & Periurban 3,138 24% from the originally agreed-upon amounts. Total 12,969 The distribution of disbursements by thematic area and region is given in Table 5. By Region: Global 1,460 11% Africa 4,564 35% EastAsia 1,413 11% Europe & Central Asia 1,033 8% Latin America 3,014 23% Middle East & North Africa 630 5% South Asia 855 7% Total 12,969 15 Thematic Overview Much reform work has been undertaken over the In the following section, activities are discussed by past ten years on all continents, yet few countries thematic areas. have fully implemented the reforms as is summarized in Box 2. Implementation of reforms also varies Energy Sector Reforms depcnding on the sectors. Accross all sectors, however, fewer than half of all developing countries The year 1998 continued to see a strong call for have allowed private sector involvemen: in new better functioning energy markets, both in investments, and only a quarter have even .egun to developing and transition economies. Lessons were privatize existing assets. learned from countries affected by the financial crises It is in Latin America that reforms are the most which have set the tone for on-going and future advanced. The privatization of power distribution work, in particular the need for continued reforms companies reached unprecedented levels in Brazil, to ensure: during the year, and new models of concessions to * more claritv in the distribution of roles between the bring power supply to unserved rural areas are being government and energy enterprises, and continued tested in Argentina. Privatization in C:Aombia divestiture ofpubliclyowned energyassets helped boost cost recovery and competition. * more transparency in such market transactions Contrary to the signals provided by the strong as with independent power producers (IPP) and interest of the private sector to invest in East Asia, privatisations countries like Thailand which have actually made = greater financial solvency of supply markets in much progress with reforms remain few. The order to attract private investors Philippines, for example, is struggling with a ! greater supply and end-use efficiencv, in order bankrupt electricity public company, unfinished to reduce the cost end users. IPPs, and a rate of rural electrification of only 60%. The successful development of the Malampaya Furthering the development of competitive project-one of the largest in East Asia_-is, by energymarketsremainsapriority,inordertomake contrast, the direct result of the successful markets accessible to new entrants, and benefit from implementation of the new Hydrocarbon law of the increased trade in energy products and services. The Philippines. Sector reforms have continued to core of the current reform agenda is therefore likely progress in Eastern and Central Europe, and in to continue in all sectors - power, oil and gas, or Central Asia. For several countries, the perspective heat with the need for: of joining the European Union is providing a new * Commercializing companies' activities and impetus for reform as they will have to comply with enhancing cost recovery to improve the financial the new EU regulation. MNajor efforts have been viability of the sector; initiated in Russia, Ukraine, and other countries of * Passing legislation to enable restructuring, Eastern and Central Europe and of Central Asia, in privatization, and energy trade; particular in the oil and power sectors. Heat * Establishing independent regulation of the sector production and distribution utilities have become less to ensure that the benefits of competition are dependent on municipalities and a few have been reaped, and that the concerns of the vulnerable privatized. However, barter payment for energy is groups of consumers are taken into still widespread and hampers progress. Very few consideration; countries have achieved signifcant reforms in the * Unbundling production, transport, and retail Middle East and in Africa where political instability supply; in many countries continues to be a serious * Introducing private ownership into the sector impediment to initiating and sustaining reforms. through new projects; Three main lessons could be learned from the study 16 * Privatizing existing publicly-owned enterprises. conducted by ESMAlP on energy sector reform: Box 2 Towards Market Reforms in Non-OECD Countries: A Scoresheet ESMAP surveyed 115 countries to assess the state of market reforms. Six questions were asked about each of the power, upstream oil and gas, downstream gas and downstream oil sub-sectors. The six ques- tions asked simply whether or not certain steps, crucial for obtaining the maximum benefits for energy sector reform, had been taken at mid 1998. The questions were: 1) Has the utility been commercialized and corporatized? 2) Has an 'Energy Law' been completely passed by Parliament (a law which would permit the creation of a sector that could be unbtmdled and/or privatized in part or in whole?) 3) Has a regulatory body started work (a body that is separate from the utility and from the Ministry)? 4) Is there any private sector investmnent on greenfield sites in operation, or under construction? 5) Has the core stated owned utility been restructured/separated? 6) Has any of the existing state owned enterprise been privatized (including outright sale, voucher privitazation of joint ventures)? Each question was answered by a 'yes' or 'no', so that countries could score for each subsector between zero and six. The questions focused on a throroughgoing reform which involved a number of steps, but for which the final aim was to introduce private sector ownership and investment where pos- sible, and to induce competition in those parts of the energy industries which are not natural monopo- lies. The aim was to utilize the profit motive in order to remove cost inefficiencies, to pass some of the benefits to consumers, in terms of lower prices and better quality of service, and to reduce the drain on the government budget, which in turn gives it the ability to spend more on those items which the private sector is unwilling to take. The Results. The aggregate reform indicator showed that globally only 39% of the steps identified as necessary for a fully effective reform have been taken in the energy sector as a whole, with the follow- ing regional and subsector distribution. Overall Reform Indicators for Regions and Globally Power Upstream Downstream Overall Overall Percentage Oil/Gas Oil Wholesale Wholesale reform of maximum Global 2.06 2.94 2.29 1.05 0.96 9.30 39% Africa .88 3.55 1.83 0.73 0.59 7.58 32% East Asia 2.44 2.80 2.25 1.75 .63 9.87 41% Europe & Central Asia 2.70 2.65 2.19 1.36 1.35 10.25 43% Latin America 4.28 3.00 3.78 0.73 1.00 12.79 53% Middle East and North Africa 1.00 2.60 0.67 0.50 0.80 5.57 23% South Asia 3.00 3.00 3.00 1.33 0.80 11.13 46% These figures presented above understate what actually remains to be done to achieve extensive private sector operation of the sector, because even a smallest sale of assets of an existing state owned company is counted as a 'success' for the purposes of the survey. In fact, to privatize all the sub-sector, or the non- monopolistic parts of it will often take much more time, even thought it will eventually bring substan- tially larger benefits. Source: Robert Bacon, ESIAP, 1999 (forthcoming) 17 * The upstream oil and gas sectors are generally At the end of 1998, some 15 ES'NIAP operations more advanced than the power and downstream continued to support the process of reforms. The sectors. on-going activities centered on assisting with the * Independent Power Projects (IPPs) have become preparation of Laws and Regulations in the power widely accepted as a means to attract new sector, for example in Bolivia, Cambodia. Poland, entrants and private sector financing, mostly in and VNietnam, and with the development of oil and East and South Asia, but also in Latin America gas markets, in particular in Africa. and even in Africa, where a few projects have In Poland, ESMALP has provided assistance to come to closure (Ivory Coast, Kenya) or are the new regulator in establishing and organizing the under discussion (Uganda, Zimbabwe). This Energy Regulatory Authority (URE). Both the A/fin- opening to IPPs has encouraged some istry of Economy and the president of URE have institutional reforms, including the end of state- requested further Bank/ESALIP assistance after the owned monopolies, the modernization of URE was established. At the end of 1998, a new financing instruments and the reduction of ESMA/AP project was being developed to assist the subsidies. URE in implementing energy pricing and tariff regu- lations, and to assist the Ministry of Economy in fi- t ?vlany countries have introduced legislation nalizing secondary legislation needed to implement which provide for an independent sector new regulatory framework consistent with the En- regulator, but few regulators are able to exercise ergv Law and the European Union (EU) principles. their independence. Responding to political In Slovenia, ESMNI AP conducted a "hands-on" train- opposition, Government interference with the ing workshop which focused on the contractual and introduction of cost-effective pricing, in financing aspects of BOT (build-operate-transfer) particular in the retail supply of energy services projects in the power sector, as well as the legal and (electricity, heat, gas, gasoline), continues to regulatory frameworks that need to be in u)lace for lessen the effectiveness of regulators. WNThere Slovenia's accession to the European Unionll. corruption is common and judicial governance In Africa, ESNLNAP also supported a conference dysfunctional, alternatives to independent in Southern Africa which was successful in reaching regulation have proved an effective first step, the participants' understanding of the necessity to such as precise rate-setting rules in concession identify the sector restructuring required in the in- contracts. dividual countries to promote efficient electricity markets for regional economic growth an(d to pre- pare projects to initiate sector restructuring. The conference participants' also agreed that there was a need for regional regulatory cooperation. In another effort, ESMALP is assisting the gov- ernment of Ghana to look at: (a) the potential for using employee share ownership plans (ESOPs) in the privatization of electricitv distribution conces- sions; and (b) the relevant international experience with ESOPs. One of the results of the activity will be to provide guidelines for introducing appropri- ate legal reforms that could facilitate the implemen- tation of employee ownership as a key clement of Bolivia Compressors at a gas pipeline terminal. Energy sector the Government's privatization strategy. reform in Bolivia, supported by ESAgP, has helped attract foreign ESMVIAP has been active in providing assistance 18 capital to finance a major gas pipeline to Brasil. to regulatory agencies in Bolivia following the capi- talization of the national oil company in such areas Other follow-up projects on market development as: (a) environmental and social regulations of pe- which were prepared for ESMNLAP financing in 1998 troleum operations, in particular, their effect on the and will be implemiiented in 1999 include technical indigenous population; (b) safety and technical regu- assistance to Mexico to assist with reforms in the lations of gas transmission and distribution; (c) co- energy sector, studies for the development of the Nile ordination of tax collection; and (d) audit of petro- Basin in order to facilitate the rational utilization of letum firms; and (e) management of petroleum data energy resources and the promotion of energv trade storage and retrieval center. A related project in the amongst riparian countries, and assistance to four Sub Andean region was approved in 1998 and will countries of West Africa - Benin, Ivory Coast, focus on the Governments' framework for dealing Ghana, and Togo - to start the process for the with environmental issues, including the socio-eco- development of an electricity pool. nomic and cultural impact of petroleum operations on the indigenous population, as well as the Energy Trade Government's capacity to enforce related regulations. ESMN,LAP also provided assistance to Kazakhstan One of the great benefits from the development of in developing a strategy for natural gas investment, energy markets, from increased efficiency gains use and trade. A study was completed in 1998 to through competition amongst a greater number of clarify existing issues and provide recommendations market players, will be the development of energy to the Government with regard to developing its gas trade, in terms of both products and services. sector and ensuring that its gas resources deliver the During 1998, ESIMAP has continued to support maximum potential benefit to Kazakhstan's economy. a wide-range of activities in this area which were In Morocco, ESALAP is updating the Gas De- focussed on the following main themes: velopment Plan developed in 1991. The current Regional electricity trade. studv is designed to evaluate gas demand for power Marketing of primary energy and generation, for new projects and the conversion of energy products. existing facilities, and gas demand for potential in- * Removing trade barriers for dustrial markets. ESlMAP has also reviewed the re- biomass and renewables. cently updated version of the Power Development Plan prepared by the power utility, ONE. This new Electricity Trade version takes into account major additions to the The example of North America and Testern Europe power generation and transmission system, in par- in electricity trade has continued to inspire other ticular, the coal-based power plants at Jorf-Lasfa, a parts of the world. As electricity trade is increasingly large hydro plant at Matmata and the interconnec- becoming akin to commodity trade, the benefits tion line with Spain. from power trade are also better understood: more Amongst the activities launched in 1998, the rational use of natural resources from one region, Review of the Statzs of Ene-vgy Sector Reformni, enabled mnore efficient use of transmission networks, ESMAP to take stock of energy sector reforms rationalization of investments, and potential for introduced in developing and transition economies foreign exchange earnings. Implementation of (see Box 2). The preliminary assessment carried out regional electricity trade is nonetheless quite difficult. as the Phase I of the project provides the financial It requires creating new institutions, adapting local community with a snapshot of the current situation, regulations and policies to regional objectives, and, and illustrates starkly the scope of the work yet to be more importantly building political trust amongst done, which deserves assistance from ESAKIAP and countries. Consequently, electricity trade also has the others. A phase II is to be carried out in 1999 and potential to be a key contributor to regional will provide a more in-depth assessment through economic development and peace in troubled areas various case studies. such as the Caucasus. 19 Besides actively supporting the development of electricity utilities, and the Development of the West the South Africa Power Pool, ESMNAP is now in the Africa PowerPool between Benin, Ghana, Ivory Coast, lead to assist the member countries of the Mekong and Togo. Basin. In 1998, a Conference on RegionalEnergy Regulation Primary Energy and Products Trade Cooperation financed by ESALAP was held in South In 1998, ESMAP's support to international gas trade Africa. It provided the countries' decision makers was limited to two activities. First, the completion of the opportunity to share their views on sector the CentralAsia Gas Trade Studly. The initial objectives restructuring in their respective countries, including were to assist the Governments of gas producers in the needed support on the regulatory side. It was Central Asia in developing a sound strategy for natural also an opportunity to transfer knowledge about gas investment, use, and trade, and to setup a working similar work done by other countries, as well as to committee of Central Asian and major consumer explain the regulatory systems adopted by such countries and international oil and gas com.zanies to countries, and the implementation issues and coordinate the activities. Only the first phase of the solutions. Speakers came from Europe, the US, and project- dealing with Kazakstan - was completed. Argentina in addition to African Participants. This The final report has been available since December Conference complemented the work done by 1997. Second, the continuation of the Assista'nce to the ESMIAP previously with the Developmzent of the South Regulatoiy, Agencies following the Capitalizat on of the Africa Power Pool (see Box 3)which had highlighted National Hydrocarbon Company of Bolivia. Technical the need to harmonize the national regulatory assistance has been provided to the regulatory agency systems and address such institutional issues as the for hydrocarbons in two key areas: to set up governance and legal status of the regional appropriate mechanisms to enforce the safety and coordination center of the pool. Resolving such technical regulations of the Bolivia/Brazil pipeline; institutional issues takes time and must be addressed and to carry out a study on pipeline transit fees. up-front in the process of establishing regional Improving the trade of petroleum products has electricity trade arrangements. continued to be the focus of the ESAMAP-supported The experience w"ith the Development of the South work in this area. In Africa. A Forumn on Downstream Africa PowerPool was transferred to the Development Petroleum was held in May 1998. Participants from of a Regional Electricity allraket in the Greater Mlekong about 2 0 countries representing energy ministries and Sub-Region. The objective of this project is to national oil companies shared experience with establish a consensus amongst the five countries of participants from international oil companies. The the Mekong basin (Cambodia, Laos, Thailand, country representatives committed to work towards Vietnam, and China-Yunnan Province) on a establishing more efficient petroleum policies, while development strategy for the promotion and international companies agreed to take the lead on expansion of power trade in the region in order to safety issues. This forum built up on other ESNALAP optimize the use of the abundant hydropower supported activities, on product procurement and resources. An initial workshop took place in June standardization of specifications for gasoline, diesel 1998 which led to establish a VVorking Group with fuel oil, and LPG. It also reported on a review of representatives from all member countries. They options for the production, transport, storage, bottling are now developing an Action Plan, which will and marketing of LPG in West Africa, as the annual include, in particular, the institutional steps needed growth of LPG at 15 % has outpaced historical trends towards the establishment of a regional power pool. in the whole region and even world averages. LPG is Other projects which were developed in 1998 now produced in large volumes in the region, from and which will be implemented in 1999 include the new oil and gas fields coming on stream. The review Developmient of Electricity Ts-ade in Latiz America, looked at Abidjan as a potential hub of petroleum 20 under the aegis of the CIER -the association of trade, mostly for LPG. Otherworkunderwayincludes Box 3 Southern Africa Power Pool Most countries in Southern Africa suffer from a lack of electricity or unreliable power. There are regional strengths, however, that can be taken advantage of. For example, coal is cheap and largely available in the southern part of the region, and cheap hydropower is available in the north. Power could be traded to improve the situation of the whole region. Cooperation of the national utilities within a coordinated pool structure could benefit all parties. A traditional power pool brings together utilities to make better use of available resources and improve the reliability of their service. These utilities need to harmonize their practices to be able to trade electricity among them in a pool, and for the pool market mechanisms to encourage competition between electricity producers. Many pools operate within national boundaries, with international contracts to cover trade beyond the pool. Some power pools, however, operate across borders, with constant trading between eligible buyers and suppliers of electricity from neighboring countries. A Southern Africa Power Pool (SAPP) was established in December 1995, with membership limited to national power utilities. The new pool agreement covers 12 countries, 9 million square kilometers, and 200 million people. SAPP is the first international pool to operate in the developing world. In the short term, SAPP is foreseen as a cooperative, loose pool, but it may become a more competitive market-based pool at a later stage after the partners have acquired some experience and become more comfortable in working together. ES MAP supported the national partners during the development of a consensus that allowed the creation of the SAPP. Furthermore, ESNIAP, in cooperation with energy staff from the World Bank's Africa Region, pre- pared a detailed report on the key issues to be addressed to fully operationalize SAPP. Establishing a regional pool requires a strong political willingness and trust between partner utilities and governments. Because of weaknesses on this front, SAPP has experienced delays, for example, in deciding the location of its central coordinating office and in selecting its general manager. The cooperation between utilities, however, has already brought concrete results as new electric lines are being installed and old ones reinforced. This, in turn, has made more obvious the need for harmonization and coordination in transmission systems standards in the different countries. As the SAPP started its operations, several of its participating countries were launching power sector reforms to encourage and competition and reduce costs and prices. The separation, or "unbundling," of national generation, transmission, and distribution activities is generally one of the first steps of power sector reform. This "unbundling" usually facilitates private investment and the participation of independent power producers (IPPs) and independent transmission projects (ITPs). These reforms should ease the power pool's operations and support its goals. By September 1998, SAPP members had agreed on the location of their operations center (Harare, Zimbabwe) and with assistance from the U.S. Agency for International Development, were developing software for planning studies. In May 1997, ESMAP supported a SAPP workshop on Project Finance to share information and views with private investors and development agencies. Important govemance and legal issues remain to be addressed. The pool arrangements still have to strike a balance to meet the needs of all members, large and small, and ensure that they will all share in the decisions and the benefits of the pool. Mechanisms for swift and effective processes for conflict resolution, and the legal status of the coordinating center still have to be agreed on. To a certain extent, SAPP has moved more slowly and cautiously than expected from the planning to operational stage, but its progress has been sustained and kept broadly in line with the original goals. Although a traditional pool can operate where regulatory regimes differ, questions of unfair advantages created by differences in regulatory systems can slow members' willingness to participate. Thus, in the near future, the compatibility of national regulatory regimes is likely to become a major issue for the SAPP. For example, the need for a consistent approach to transmission access is becoming apparent as more IPPs and ITPs express interest in investing in the region. For some SAPP members there is still ambiguity between their participation in an international pool and their aspirations of self-sufficiency and autonomy. This is likely to continue for some time, and the pool agreements may have to acknowledge these concems, along with provisions for greater integration. However, on the positive side, several countries participating in the SAP have opted to increase their imports of electricirv rather than building additional domestic generating capacity. ESVAP continues to help the SAPP and its executive committee set up its coordinating center, harmonize and optimize its investments, and review environmental issues. Jean-Pierre Charpentier 21 a review of Petroleum Tran7sport Corridors, starting wN7ith where modern forms of energy are limited. Seminal the southern countries of Sub-Saharan Africa, in order work on the marketing of fuelwood for Managua, to identify the lowest cost modes of transport. The Nicaragua, has been carried out under the ESALAP- benefits of trade liberalization on fuel switching and supported project AMode7nization ofthe Fueiwood Sector enhanced access to energy services by the poor, has (see Box 4). The review concluded that fue]wood trade also been well documented in the India- Urban Energy7^ could become more efficient if the sector benefited Study (see section on rural and pern-urban household from more transparent, predictable and stable policies, energy). including a better defined and more equitable tax regime, and if adequate services were provided to Biomass and Renewables Trade fuelwood producers and merchants. The conclusion Improving the trade of biomass energy, sources and of this work can have a wide application to other removing trade barriers to renewable energy products countries of Central and South America and Africa has been another component of the ESMAP where fuelwood is still a major source of energy for work program on energy trade. This work is household needs of major urban centers. particularly keytoimprovingaccessto energv services Testing financing and market celieverv by the poor, both in the rural and peri-urban areas mechanisms for small-scale solar energy has been the focus of several projects, in particular in Africa. In Kenya, for example, under a project to test Financing MlIechanismnsforSolarElectricEquipment, the staff from a rural bank and from Cooperatives were trained to identify clients, set-up the financing arrangements, procure, install, and provide after-sale servlice for solar equipment. After a long preparation perio(l of txwo and a half years to install 15 systems, it was estimated that it would take about 6 months to get the niext 7 5- 100 systems financed and installed, and three additional months for the next 500 systems. The projct illprovide solar electricity to about 150 households, and can be easilyv replicated to other regions and countries. It is also providing the iimplementation capacity for tic 1FC'/GEF Photovoltaic Market Transformation Initiative (PVMITI). Removing trade barriers, promoting trade liber- alization for all energy products and services will re- main a key area of work in the ESMAP workprogram as a means to improve market efficiencyv and increase access to energy services by the poorest. Energy and the Environment It is now well documented that the poorest segments of the population suffer the most from environmen- tal degradation, regardless of the type of degrada- Traditional brick manufacturing in Boliva - ESMVLAP program in Bolivia is helping poor brick makers increase the efficency of their tion. For example, the loss of biomass leading to 22 use of traditional fuels. desertification, forces the affected populations to Box 4 Nicaragua: Modernization of the Fuelwood Sector In Nicaragua most people use fuelwood for cooking. This seems to be the case for virtually all families in rural areas and at least half of them in the denser urban areas. However, until a few months ago there was no recent data on fuelwood use patterns. The government was concerned with the high economic costs of supplying fuelwoods and the environmental damage to natural forests. In August 1997, in response to the government concern, ES"AP set out to help assess the situation. It proposed to conduct a survey on fuelwood and to collect data, notably with respect to the environmental impact of vwood consumption by urban households. At the same time, ESMAP proposed to use the survey to develop a strategy to supply fuelwood to Managua, the capital city. In addition to funding and supervising the work of local consultants collecting data and designing strategic options, ESMAP experts participated directly in the delivery of technical assistance, notably through a series of field visits. The ESAMAP fuelwood survey had five main components: * A review of the regulatory and fiscal situation for fuelwood activities to clarify and improve the legal and regulatory framework; * An analysis of household energy consumption patterns through sample surveys in two major cities, Leon and Managua which established that wood was still used for cooking by 53% of households in Managua and 75% in Leon; * An assessment of the enVironmental situation in wood production areas, which shown that fuelwood collection was not the main reason for deforestation around the two cities, and that reducing fuelwood use may not result in sizeable environmental improvements; * An evaluation of fuelwood traffic on the main entrances to Leon and Managua, collecting data such as wood species, means of transportation, distance from the collection areas, whether the wood comes from natural forest or plantations, etc...; * An evaluation of the liquefied gas and kerosene household supply and consumption to be conducted by the end of 1998. In October 1997, an ESIAIP team visited Nicaragua to review the overall fuelwood activities in the country, discuss the possible scope of ES\AP's work with officials from the government, and identify possible local consultants. A second visit, in February 1998, decided on the methodology to be used and on detailed activities to be carried out. A local consultant-PROLENA, a non- governmental organization-was associated with the work, and before the activity was officially launched, all interested stakeholders were consulted in a meeting of the Interministerial Dendroenergy Committee established to discuss the ES.MAP activity. 23 A follow-up ES1M/1AP visit took place inJune 1998, after the end of the survevs. In Septernber 1998, a fourth ESMAP visit of ESMALP experts was organized. By then, data from the survey were ready to be analyzed and discussed in a WVood Energy Forum. This was expected to lead, before the end of 1998, to the definition of an investment and technical assistance program for the woo(dfuel sector. By early September 1998, the data collection surveys had actually been carried out by PROLEN-A, and their results were available in Spanish. As this ESIVLAP activities continues, the data collected by ESMAP so far shows that, unexpectedly, there is not a verv clear relationship between deforestation and the harvesting of firewood. Many other activities may account for deforestation, including forest burning for hunting purposes. The intensive discussions held -with wood producers, regulators and government offic ials, notably through a series of workshops in preparation for a W0Aood Energy Forum, demonstrated that the sector would benefit from more transparent, predictable and stable policies, including a tax regime better defined and more equitable, and the provision of adequate services to fuel-wood producers and merchants. It also appeared that the potential for reforestation involving fuelwood producers was left unrealized because of lack of policy continuity on the part of local and central governments. ESMLAP's challenge remains to help forge a strong consensus among fuelwood producers and users, and the government on the new set of policies emerging from the conclusions and recommendations of the surveys, as well as from discussions with stakeholders. Eventually, this may lead to the preparation of a project which would demonstrate the feasibility to ensure a sustainable and affordable supply of fuelwood for cooking to households in Managua and Leon, while, simultaneously, preserving the environment. Ren6 Masse reduced living standards or to migration. Air pollu- Clean Air Initiatives tion in urban settings affects most the weak and ESINAP has expanded its support for three programs: malnourished; and hampers brain development in Lead Elimination in Gasoline and Harmonization ofFuiel children, stunting their intellectual potential. As Specifications; the Cleazn Coal Initiative; and the Re- more than half of air pollution and a substantial share duction of Gas Flaring. The work on Lead Elim.ination of biomass degradation is directly linked to the en- which was originally initiated in Latin America has ergv sector, efforts to mitigate environmental deg- now been widely disseminated in that continent. In radation are part of ESIUAP's strategic agenda. As a Peru, for example, a comprehensive Clean Air Strat- result, the ESMAP workprogram in energy and the egT has been adopted followving the decision to phase environment has continued to expand in 1998, and out lead by year 2004. In Venezuela, a new joint is now focussed on the following main themes: World Bank/PAHO initiative is planned for the first * Clean Air Initiatives quarter of 1999, to discuss phase out plans mTith the * The Environmental and Social Impact of new government. To take this one step further, Hydrocarbon Production: ESMNIAP is now working in cooperation with the 24 * Energy and Environment Policies World Bank Latin America Region (LAC) and the WVorld Bank Institute, on the Clear Air Initiative in LAC, in which four municipalities are participatinu: ll7 i' % Buenos Aires (Argentina), Lima (Peru), Mexico City (Mexico), and Rio dejaneiro (Brazil). The objective iW is to develop city-specific action plans in order to reduce air pollution. Building-up on the LatinAmerican experience, ESMAP is proceeding with similar work on lead elimination in Middle East and North Africa, and, in South Asia, with financial assistance from the UK- DFID. Late in 1998, a new project was launched in Central Asia, thereby completing a first round of activities on lead elimination accross the world. Fol low-up activities are expected, in particular techni- cal assistance for the implementation of new legisla- tions or regulations, and analyses of their impact on the refinery and car manufacturing industries. Another aspect of the ESMIAP worlk on air pollu- tion concerns indoor air pollution which most affects the poor using wood, charcoal, or coal briquettes as ditional stove, and new commercialized inlets, which their main household fuels. T his is the main objec- can be installed without having to replace the stove. tive of the MWongolia-Coal Stove Improvement Prograim. The benefits of such improvements include not only The first phase of the project, now completed, was reduced emissions, and therefore, less bronchial or centered on the poorest pern-urban neighborhoods pulmonary infections, but also reduced energy costs of the capital city, Ulaan Baatar, where nomads come from improved combustion and heat efficiency. and settle. The project has identified a redesign of The Clean Coal Initiative seeks to encourage the existing stoves which will improve their efficiency and production and use of clean coal, through price in- reduce emissions, and to improve the production and centives that include the cost of environmental miti- marketing of fuelwood and coal briquettes. In order gation, coal washing, and various technological im- to minimize the cost of improving stoves, new stan- provements, such as fluidized-bed combustion, coal dardized components have been designed, such as gasification, and desulfurization equipment. With fi- improved combustion chambers to put inside the tra- nancial support from the European Union and from 25 Improving coal stove in Bolivia - Traditional habitat in Urban Baatar (above) and improved stove promoted by ESMAP (top right). Japan, a major program is now undervav in China. and environmental protection regulations which will The lessons from this activity should benefit other prevent the risks of accidents from the development major coal producers and users, in particular India, of these areas and will protect the biomass resources Russia, and Ukraine. One of the key issue is the necessary to indigenous people. Such work is already financial viability of these investments, especially as underxvavin Bolivia and Peru. In Bolivia, the ESMLAP gas prices are at a low-time low. Another step for supported-work contributed to the formulation of an ESANAP would be to assist in evaluating the relative amendment to the Constitution which now recognizes merits of introducing clean coal technologies in the rights of the indigenous people. In addition, safety power plants relative to gas switching when this is a regulations have been agreed both by industry and by genuine possibility. the indigenous people. In Peru, a draft regl-lation to complement the legal framework for industry in in- Environment and Social Impact of Hydrocarbon digenous people lands is being prepared through a Development. tripartite negotiation process, which includes govern- The development of hydrocarbon resources in areas ment bodies, industry, and NGO's intermediating with inhabited by indigenous people gives rise to complex indigenous people. This work is to be continued in environmental and social issues, which ESA/ATP is 1999. The broad aim is to arrive at an harmcnization helping address. The objective is to develop safety of legislations in the various countries and at a "Code Box 5 Harmonization of Fuels Specifications in Latin America and the Caribbean The harmonization of petroleum products specifications in Latin America and the Caribbealn has great potential economic and environmental benefits for the region. Coupled with the overall eco- nomic reform now happening in the region, it should permit a more rapid integration of markets which, in turn, will facilitate the development of trade and of larger and more efficient supply units. In the first instance, the harmonization of petroleum products was required to improve the quality of fuels in response to environmental and public health concerns. In particular, airborne lead irom leaded gasoline is an immediate health hazard from inhalation, as well as a more insidious, long-term problem from accumulations of residues in the soil. Lead contaminates drinking water and enters the food chain, eventually resulting in lead poisoning. One of the better-known, well-documented conse- quences of lead poisoning is the impairment of intellectual development in children. Governments in the region needed to harmonize their fuel specifications and eliminate the use of lead in gasoline to improve health conditions and living standards. With support from the Canadian International Development Agency (CIDA), ESMAP helped governments design and implement national plans to phase out the use of lead in gasoline, and provided technical assistance to define and implement attainable specifications in fuels. First, ESIAP reviewed all product specifications and laboratory test methods used in the re- gion, and undertook an inventory of the specifications currently in use. Current fuels standards in the UTnited States and in Europe were analyzed to evaluate the direction and potential national impacts of international specifications. An expert was hired by ESNVLAP to draft specifications believed to be achievable throughout the region, given the complexity of refineries, the state of the vehicle fleet, and environmental concerns. In 1997, two regional workshops organized byESMAP-in Quito at the Organization of Latin America 26 for Energy and in Montevideo at the offices of Asistencia Reciproca Petrolera Empresarial Latinoamericana (ARPEL)-served to exchange views between members of a multi-country steering committee, the Review Committee for the Elimination of Lead in Gasoline and Harmonization of Fuels Specifications in Latin America and the Caribbean. At these workshops, the Review Committee modified the proposed specifications to reflect feedback from participant countries and ensure that the adopted standards were sensitive to re- gional differences. Conflicts among participants on the proposed specifications were solved by proposals developed by the ESNMAP team, which facilitated the formation of a consensus. Specifica- tions for gasoline, diesel, liquefied petroleum (LPG), and light fuel oil were proposed and adopted. ESMAP is now disseminating the new harmonized specifications in a report available in En- glish and Spanish, and through seminars with government officials and refinery experts. Presentations have already been made by ESMAP staff to sub-regional country groups, notably to the Central Ameri- can Committee for Hydrocarbons Supplies and to representatives from Caribbean governments. Intra-regional trade of petroleum products is expected to increase as common specifications eliminate one of the physical barriers to trade. The use of cleaner-burning fuels is now being promoted throughout the region, thus addressing unhealthy emissions in many large urban areas. The complete elimination of leaded gasoline throughout the region is recommended by 2005, ex- cept for countries that import only gasoline. These are expected to eliminate lead by 2001. The specifications proposed by ESMAP may have an immediate adverse effect on smaller refineries that are unable or unwilling to make the necessary investment to comply with more strin- gent criteria. The overall effect for the region, however, is expected to be positive, as regional eco- nomic efficiency improves through economies of scale, increased intra-regional trade and produc- tivity, value added production from new investments, and reduced health costs. Eleodoro Mayorga-Alba of Good Conduct" by which industry would be ex- tally sustainable energy services; third, to identifv po- pected to abide when obtaining concessions for the tential investments to mitigate environmental degra- exploration and development of hydrocarbon re- dation; and fourth, to provide the framework for po- sources. Complex issues are still to be further de- tential investors. EERs should be viewed as an oppor- fined and solved, for example, the need for mecha- tunitvto identify win-win strategies for developing en- nisms to ensure that indigenous people benefit from vironmentally sustainable energy services for economic the income generated by the dcvelopment of hydro- and social development (see Figure 7). carbon resources from their lands. The first such review, carried out in India 'with fi- Energy and Enviromnent Policies nancial assistance from the UK-Department for Inter- As agreed at the 1998 meeting of the ESM_AP Con- national Development and the World Bank (see Box sultative Group, ESMAP expanded its support for the 6), was completed inJune 1998. It has provided a num- preparation of Energy Envilronment Reviezws (EERs). The ber of key lessons for the preparation of such reviews. aii of these reviews is to assist govermiments first to * EERs have to be deImand driven. They mnust re- assess the environmental impact of the current energy spond to a specific need from the country con- policies, regulations, and practices; second, to identify cerned, whether on global, regional, or local pol- policy and institutional changes to foster environmen- lution or environmental degradation issues. Not 27 all EERs vwill be the same. WhI-rat is key is to agree * A methodology to analyze a) the direct and indirect on a motivating "entry point". EERs must also take impacts of current energy practices (frorr produc- into consideration macroeconomic and poverty al- tion to end-use) on the local, regional, and global leviation objectives. environment; b) options for the future; c) the eco- * EERs must be carried out with the participation nomic and financial impact of such options, includ- and consultation of a large number of stakeholders ing the geographical and income distributional im- in the country, both public and private, including pact; d) investment opportunities; and e) institu- industry and civil society, as the successful imple- tional options/needs for policy formulation and mentation of solutions on environmental mitiga- implementation, and for monitoring the outcomes. tion requires negotiating a consensus amongst key As an illustration, the structure of the methodol- interest groups. ogy used in India is given in Figure 8; * EERs are likely to be more successful where sub- * A set of analytical tools for policy optio2s, i Lcluding stantial progress on sector reform is already un- quantitative models, and qualitative tools (e.g. rapid derway as they wvill lead to the increased use of rural appraisals),which will have been generated or market instmments for environmental nitigation. adapted for specific country case (e.g. BRUS II- * The scope of EERs will vary depending on the tools Mexico; see below); already in place in the country. For example, in *An investme-nt Program, which would identifR in- India, sector planning tools had first to be devel- vestment opportunities With possible financing op- oped, and the staff trained, before any data collec- tions, including the Clean DevelopmentMechanism; tion or analysis could be undertaken. * A set of policy options, which would include sector * Because of the participatory process required to policy reforms (towards market deterrnined pric- g,enerate consensus on issues and solutions, EERs ing including the internalization of externalities), are time consuming and costly exercises. taxation, norms and standards, etc; Depending on the scope of the EERs, several out- * An action plan, outlining the steps to move towards puts can be expected. For example: implementation of the analytical results (e.g policy measures, legislative or regulatory measures, eco- nomic incentives to encourage switching from det- Figure 7 Elements of Sustainable Development rimental to friendly energy practices, investors/fi- nancing conferences, institutional strengthening Econioiiiic measures e.g. to monitor results, outstanding 4fr agenda for economic, and social or technological research); Efficiencg * A st-enzgthened institutional capacity, from having de- Stability veloped or adapted analytical tools in-country, and trained staff to their use; and possibly a strength- ened policy-making body or legal framework for investors; and * A process, for public consultations, in particular for consensus building and public information, which could be of value to resolve other critical develop- Poverty Biodiversitv/Resilience ment issues. 6, Culture/Heritage Natural Resoulrces Consultation/Empowerrnent Pollution * Inter-generational Equity Social * Popular Participation F.nvironmental Soulrce: .. Alunasinehe (1992) Fnvironmental Economics and Sustainable Deve,p- 2 8 -cnt, W-1rid Bak. WVcashigton DC Box 6 India: Addressing Environmental Issues in the Power Sector In India, coal is abundant and still considered to be the cheapest fuel to generate power. However, the wide use of coal raises concerns over the environmental impact. In particular, the burning of coal pollutes the air and contributes to greenhouse gas emissions; while the accumulation of ash at power stations makes land inappropriate for other uses and endangers both ground and surface water. Also, when more coal is burned, more must be produced, which in turn degrades more land, displaces population, destroys forest cover, depletes more water resources, and causes more water pollution. The Government of India recognized the need for an independent assessment of the environ- mental consequences of coal burning in power plants and asked the World Bank and ESAMAP to look into the issue, in consultation with all affected groups and people. In 1996, with funding from the Department for International Development (DFID) of the United Kingdom, ESMAP launched a far reaching examination of environmental issues in the power sector. The objective was to develop a decision-making tool, which would enable government officials and institutions in India to evaluate alternative options for power development. The activity ended in June 1998, and the results are now being disseminated to several states. The work started with an initial questionnaire and a series of seminars and workshops in Delhi, to encourage the participation and interest of a wide audience. One workshop, for Indian and inter- national technicians, discussed the modeling tools available to help in the analysis. Another involved non-governmental organizations (NGOs) who were invited to voice their views and to nominate their representatives to attend subsequent workshops for the duration of the study. These prelimi- nary workshops were followed by a major Inception Seminar inJuly, 1996, attended by key decision makers from the Indian ministries and from the industry. The decision-making tool was developed through two state-level case studies, supplemented by a set of special studies. The case studies were done in the states of Andhra Pradesh (AP) and Bihar. The special studies provided generic data and covered: demand-side management; interfuel substi- tution; market-based instruments for pollution control; the welfare effects of abatement policies; renewable energy options; ash pond management, ash disposal, and ash utilization; and mitigation options for power development. A synthesis report pulled together the findings of the work as a whole and attempted to draw some preliminary conclusions at the all-India level. The case studies and special studies were carried out almost entirely by Indian teams, supported by a firm of interna- tional consultants (Environmental Resource Management, of the United Kingdom) which also pre- pared the synthesis report Although no two states can adequately represent the complexity of the Indian power sector, AP and Bihar, with populations of 100 million and 75 million, respectively, offered a good cross-section of the environmental issues and options facing India. Bihar is relatively poor, and the Bihar State Electricity Board is in a particularly precarious financial and technical condition. About 40 percent of electricity demand comes from heavy industry. The high degree of dependence of its power sector on coal permits an in-depth analysis of the environmental impacts of coal mining and coal use in power generation. Also, Bihar is comparatively remote from alternative sources of energy, al- though other options are available in the long term. AP, on the other hand, has wider range of power 29 options, including hydropower, wind, and solar. Its good ports offer better possibilities for import- ing fuels. Agriculture accounts for about 40 percent of the electricity demand, and the financial performance of the AP State Electricity Board has been better than that of the electricity board in Bihar. The study resulted in a set of analytical tools and a decision-making process that wvill assist power system planners in making decisions that are environmentally more sustainable; the seven special studies; two case studies; and the synthesis report. The work is now being disseminated to a wider audience, notably through: a ianualfor Environmzental Decision-makingg, in which the objectives, methodology, outputs, and interpretation of the outputs of the tools prepared for AP and Bihar will be described; and a series of workshops and training activities in other states. It is anticipated that the analytical tools and decision-making process xvill be taken up as part of the implementation of ongoing Bank projects for power sector reform in Haryana and Orissa; and the planned project in AP. Moreover, the experience gained during the study and the methodology developed for it are to be used in a series of country energy-environment reviews undertaken by ESMAP. Robin Bates Figure 8 India's Energy Environment Review: Structure of the Decision Making-Tool Demand-Side Management > 1 Electricity Demand Forcast - < ~~~~7 Financial Analvsis Inter-Fuel Substtution o 2 Least cost Expansion Plan A A I 8 Trade-off Analysis Renewable Energy Options 3 Coal Demand Ash Pond Management / 4 Coal Production Impacts Environmental Impact Ash Disposal and -Mitigation . . Mitigation Options for 5 Mitigation Measures Power Developmeent o (Power Planits) W;1"elfare Effects of 6 Power Policies 6 Environmental Models Source: Robin Bates Three additional energy environment reviews BRUS II to the Mexican economy, has been com- were initiated in 1998: in Mexico, Sri Lanka, and Ro- pleted, and the local staff have been traine(d to use mania. The lM1exico EER was initially prompted by a it. The second phase of the EER, which is to pro- Government request to address global issues in vide an analysis of the policy options and refocus preparation for the Buenos Aires meeting, in No- on local pollution issues, was to be reviewecl by the vember 1998. The first phase of the EER, which fo- Mexican Government in 1999. The EER for Sri 30 cused on the adaptation of the Danish model LankawaslaunchedinDecember 1998, tocomple- ment, through an analysis of policy options targetted energy burden on households' cash or time re- at local pollution issues, the work already under-way sources, thereby further contributing to their on global issues. One of the primary concerns is to empoverishment. identify environmentally sustainable investment op- Opportunities for energy efficiency gains are tions to meet the growing demand for energy ser- numerous. The most significant gains over the past vices, now that Sri Lanka has virtually reached the decade have undoubtedly come from market re- maximum development of its hydro resources for forms, at both macroeconomic and sector levels. power production. For Romania, 'seed money' (re- With the liberalization of enerpgy markets and the sources from the ESVILAP Project Development Fa- introduction of the proper regulatory franmework, cility) has been allocated to define the scope of the fuels at economic prices become available to indus- EER. As Romania is in the Group II of countries for trial users who, in turn, make the most economic accession to the European Union, the Government's choices in order to remain competitive, both in concern is to meet the environmental regulation of terms of fuel choices and use. Likewise households- the EU and to improve the energy efficiency -and in particular poor households-will make the most therefore competitiveness - of its economy. rational choices on energy expenditures, as the fuel Energy Environmental Reviews will be a signifi- choices and efficient technologies become available. cant component of the ESNLAPworkprogram in 1999. Besides market development, energy efficiency It is expected that a full scale EER will be undertaken interventions vary in scope and application, rang- in Romnania and another EER should be initiated in ing from supply such as retrofitting power or heat Turkey which will also focus on improving the energy plants, to end-user efficiency (DSM) through im- efficiency of the economy. In addition, a series of iden- proved traditional or industrial processes, building tification missions are now planned to familiarize cli- retrofits, and home stoves. Improvements in ur- ents with the opportunity for undertaking such reviews ban water and distribution systems should also be wvith ESMAP support, and determine on a case by case prime targets, for energy efficiency gains. basis the scope of each review. In certain cases, such as In spite of the substantial economic, financial, the Carribean countries, it is expected that regional and environmental benefits to be expected, progress reviews will also be appropriate. on energy efficiency has been slow and remains ham- pered by a number of issues: Energy Efficiency * Low energy prices: subsidized tariffs or failure to meter or collect payment kills users' interest. Energy Efficiency represents the most powerful win- * Lack of technical and financial information: the win strategy to reconcile environmental quality with available technologies for energy efficiency, and sector and economic performance. MIany develop- their technical and financial merits are not nec- ing and transition economies are in dire need of en- essarily well documented or easily made avail- ergy efficiency. High energy intensities in formerly able to the public. planned economies, in particular of Eastern and Cen- * Asset valuation: energy efficiency improvements tral Europe and Central Asia, have impeded their re- do not necessarily affect the resale value of build- covery to economic growth as they moved to market ings or plants. economies, jeopardizing their competitiveness, bal- * Returns on investments: energy efficiency im- ance of payments, and government and household provements compete with investment alternatives budgets. Energy costs are also very high in land- which may have a higher pay-off in the short term. locked and poorly endowed countries; and local pol- * Energy efficiency impacts long-term returns. lution from energy use is serious in highly urbanized * Lack of financing: households and small enter- and fast growing areas. Inefficient use of traditional prises may have difficulty accessing bank lend- fuels in the developing world contributes to acceler- ing for energy efficiency improvements; share- ating the rate of biomass depletion, to increasing the holders may favor more visible investments. 31 Box 7 District Hearing in Central and Eastern Europe In Central and Eastern Europe, "district heating" or DH has been in place since the 1950s. In this system, hot water is produced in central plants and distributed to commercial, public, and residential buildings through a network of pipes. In cities in the region, DH supplies up to 90 percent of buildings with heat and hot water. The climate in the region makes it possible to exploit the advantages of co-generation of power and heat. The efficiency of a combined heat and power (CHP) generation plant can reach 90 percent, compared to 3 5 percent in typical thermal condensing power plants. The competitive advantage of DH is its ability to pro- duce heat at a lower cost than individual boilers, whereas the high cost of transporting heat to consumers is a disadvantage. Thus, the extent of heat produced in co-generation and the heat load density are crucial factors in investment decisions. In Central and Eastern Europe, the benefits of CHP have been modest. Only a minor part of power supply is based on CHP. In fact, DH had become a svmbol of energy waste because of bad maintenance and lack of investment in upgrading networks. In the early 1990s, the high costs of DH became apparent when energy prices increased to world market levels. Consequently, expenditures for heat became major drags on household incomes and municipal budgets. Customers cannot control heat, and they react to overheating by opening windows, thus provoking more waste. In many cities, DH contribute to air pollution, causing severe health problems for residents. As investors ponder the economic merits of DH, compared for example to gas-fired boilers in buildings, ESAMAP studied the factors determining the most economic heating option, the circumstances under which DH could be the preferred choice, how the institutional environment should change to encourage cost- effective heat supply and demand, and how the preferred option could be implemented during a difficult economic transition. Tn 1995-96, case studies were conducted in six cities where DHwas dominant: Dnipropetrovsk in Ukraine, Kaunas in Lithuania, Orenburg in Russia, Sofia in Bulgaria, Timisoara in Romania, and Wroclaw in Poland. These case studies used a common methodology emphasizing the scope for interfuel substitution between DH and alternatives, such as boilers for individual buildings, or apartment boilers using natural gas. The impact of including energy efficiency measures in buildings and external costs-on health or the environ- ment for example-were also considered by ESMILAP, as well as the needed institutional and policy changes. The case studies confirmed the general superiority of established DH systems supplied by CHP plants in densely populated areas. However, this result depends on low heat costs. In most countries of Central and Eastern Europe, there is a surplus capacity of power, which leads to a relatively low power tariff, so that the price of heat has to cover most of the cost of CHP production. In these cases, building boilers are at an advantage. One conclusion from the ESMANAP study, however, is that decentralized systems, such as gas heaters or boilers in apartments, are not an alternative in existing buildings. Their costs are very high, and they have a significant environmental impact. Furthermore, switching to individual heating in buildings would not be easy, because of the difficulty for households to make joint decisions and bear considerable investment costs. The high costs of heat delivery, both in absolute terms and relative to the quality of heat supply can be reduced by funding the rehabilitation and upgrading of supply systems, or by investing in more decentral- ized solutions. But, to ensure maximum sustainable benefits from these investments, other actions at the institutional and policy level and at the corporate level are needed. NMany countries in the region have already advanced toward such measures such as the following: * An efficient macroeconomic and sector framework, which will allow for sound competition and which will establish the rules for necessary tariff reforms. * The establishment of a commercial DH company with accounts separate from the municipality. * The replacement of existing tariff rules at CHP plants, which discriminate against heat generation wvith a more equitable treatment of heat and electricitv. Under the guiding principle that both products need to be competitive in their respective markets, it should be investigated for each CHP plant whether most of the combined cost advantage could be passed on to heat for several years to facilitate the large mod- ernization investments. 3-2 Issues and Required Actions in the Heating Sector Issue Efficient Macro Streamlining Companies Technology and and Sector Framework in the Heating Sector Investment Choices High cost CHP cost of Commercialization: strict Modernize DH networks of heat Heat Planning profit accountability and Low-cost heat sources Safety, licensing and financial discipline; use of a WAhere heat load is low and efficiency standards management information heat generation costs are system (MIS) and high, switch to decentralized performance indicators heat supply Rationalization/divestment Optimize the use of CHP Leasing and operating (dispatching of heat sources) agreements Heat Planning Inefficient Change in standards Tariff structure/level Demand-side investments use of heat Consumption-based Financing pricing Incentives: tariff reform Financing/technical assistance Nonpayment Social safety net with Commercialization Prepayment targeted subsidies Marketing Decentralized heat supply Cut-off of non paying Settlements of forward and customers backward arrears Inadequate Tariffs based on full-cost Fixed/variable two-part tariffs recovery tariffs based on metered Adequate depreciation consumption charges Environmental Environmental standards - Fuel switch problems Effective enforcement Change in existing standards technological/Integration of DH islands As of September 1998, there was already some positive follow-up to the ESAIAP study: * In Dnipropetrovsk/Ukraine, the ESMIAP activity was extended to a demonstration project with cofinancing from the Netherlands. 1wivo buildings were cut off from the DH system. A more cost-effective separate boiler house was installed, and energy conservation measures were implemented in the buildings. * In Russia, Orenburg is a potential candidate for a World Bank loan. * In Lithuania, a loan by the European Bank for Reconstruction and Development for DH modernization in Kaunas is under consideration, in addition to a DH project in Vilnius to be funded possibly by the World Bank. * In Bulgaria, a DH project funded by the World Bank is under preparation in Sofia. Anke Meyer 33 In 1998, ESIA/LkP has continued to pursue its Energy efficiency gains are often possible strategy of complementing market reforms with lo- through better management systems. This was the cal grassroots projects designed to remove or reduce emphasis given in the China- Power Efficiency Pilot obstacles to the introduction of market driven and Study which analyzed the power systems in two ru- more energy-efficient practices, equipment, and ral counties of China, and helped them prepare a technolog; The main activities have been centered power loss reduction program. A training hand- essentially on: book for power distribution system planning and * Supply efficiency in district heating, gas, and loss reduction studies has been prepared in Chinese, power supply systems; tested with trainees, and is now widely used i n China. * End-use efficiency, mainly in rural or urban me- It will be available in English shortly so tllat it can dium-sized industries. benefit a wider audience as it offers a pragmatic di- The study of District Heating in Central and East- agnostic tool which could be used in environments ern Euirope was completed in June 1998. Under this which have limited human resources and institu- four year effort, a methodology was developed to tional capacity. assess the criteria under which it is profitable to in- Improving end-use efficiency in industrial en- vest in new district heating systems or in retrofits. terprises has been the focus of several studies in Latin Four case studies were carried out, in Lithuania, America and Central Europe. In Brazil, for -xarnple, Poland, Russia, and Ukraine. Several seminars were the Bahia End- Use Energy and Effluent M,Wanagemient conducted to share the results of this work (see Box Strategy Project aims to create a portfolio of good 7). The results are valuable for all countries with cold practice case studies at 5 or 6 industrial sites in the climates. Similar objectives were pursued in the state of Bahia which would use the Monitoring and study on Increasing Efficiency of Gas Distribution Net- Targeting (M&T) systems for energy management works which aims to analyze the economic and insti- and waste minimization. The M&T systems involves tutional conditions under which urban natural gas carrying out energy audits, establishing "account- networks can be soundly constructed, operated, and ability centers" in each industrial site, benchmarking expanded. The first phase of the project, i.e., case those with industry standards, and a perftrmance studies in Tunisia, Turkey, and Denmark, has been plan which is regularly monitored. Similar projects coimpleted. Additional case studies are needed to have been supported by ESMAAP in Peru, Colom- make the study more meaningful, and will be un- bia, and Slovakia, with financial support from the dertaken as soon as the financing is mobilized. Netherlands and Switzerland, in cooperation with the EU-THERMIE program. Finding financing for implementing energy savings which involve some investments is at times difficult. ESMVAP has there- fore supported the establishment of Energy- Savings Companies (ESCOs), private enterprises -which are contracted to carry out the initial energy audits and/ or to implement the performance plans; in some cases thev are remunerated from a percentage of rev- enues from the energy savings actually generated. The Bolivia- Energy Efficiency and Environment Project, supported by the Netherlands, offers a par- ticularlv interesting concept. It involves both en- ergy conservation and a unique capacity building pormwith the privt sco.The Chamber of Inidustry anid Comiimerce of La Paz has benefitted 34 from ESMAP technical assistance and has become Collecting data for an energy survey in the Philippines. Bioniass anid Energy Efficiency Project which aims at X . -biomass conservation and energy efficiency for ru- ral industries in particular. The institutional con- AER j , r~jcept is fairly similar to the first project except that it proposes to work with NGOs as intermediaries .; [ - ) . - between the rural industries and the banks. ESMIAP will continue its work on energy effi- ciency in 1999, not only replicating the available experience into other ESMAP projects, but with the main objective of mainstreaming the results as has alreadv been successfully done in China and Brazil. For both countries, the results of the ESMAP projects have been integrated into the lending op- erations of the World Bank, with loans for $450 mil- - lion and $250 million respectively. The experience acquired through these ESMAP projects can become - W L s - . standard featuLres of many investments, regardless of the source of financing, public or private. a 2 ; K lRenewable Energy ESIVLAP activities in 1998 have continued to sup- Construction of pylone supporting a wind turbine port its strategy to contribute to national and inter- the prime agent to encourage member industries national efforts to provide clean energy use by the to join in this energy efficiency program, and to do mainstreaming of solar, wind, and small hydro-power the project appraisals on behalf of the local banks technologies into the programs of local governments, when industries apply for financing. The results the private sector and development institutions like of this project which could be replicated in many the WAorld Bank Group. other economies are to be published shortly. As a The Solay- Initiative Regional Strategy P-oject pro- follow-up to this project, ESMAP is supporting a vides an extensive desk review of on-going renew- ,~~~~~~~~~~~~~~~~~~ 4 35 WVind turbine for a local network in Asia. cessionaires, service providers, equipment leasing firms, and energy service companies, and on com- munity participation through cooperatives or non- gTovernmental organizations. In the Egypt-Solar Thermnal Power O1ptions project, various options for using solar thermal resources at plant and power system level were reviewed. The project, whose findings are available, has been suc- cessful in catalyvzing preparator-v studies, fo - a Bank!/ GEF investment project in a solar thermal power plant using private sector participation. Options for integrated renewable energy sources are now systematically analyzed when ESMAPLA or other institutions provide assistance to countries to define their energy strategies. As more experience is gained on the management of decentralized sys- tems, and as more institutional and financing op- tions also become available, the market for renew- able energy is expanding. Renewable energy is there- fore an attractive option not onlv as an environmen- Solar panel installed on top of a pole for a village home power system. tally benign technology but as an essential compo- able ener, activities invarior . F g nent of the 'access' paradigm on which ESM1AJTs able energy activities in various regions. Following work will continue. field missions in countnres (Argentina, Brazil, Bul- garia, Cape Verde, Chile, Morocco, Peru, Russia, Rural and Per-Urban Household Energy and Tunisia), several opportunities for investments in renewable energy were identified. A report con- iLack of access to modern forms of energy is still one solidating lessons from solar projects is to be pub- of the major deterrent to the economic and social lished shortly. Meanwhile, lending institutions and d development of the poorest populations in develop- investors have alreadv taken advantage of this work. ing countries and in some transition economies. Projects are to be financed in Argentina, Brazil, and Those populations usuallv live in rural areas where Peru. This work will also provide a most valuable grid or decentralized electrification has not vet been input for energy-environment reviexvs. I 'osble and where the avallabilltv of other energy- The West Africa Solar Project has led to the de- possible a w sources: petroleum, LPG, natural gas, and rerewrables, sign of components for projects to be financed by -limited and extremely costly They also live in- the World Bank in Benin, Cape NYerde and Togo once c i p a w creasingl1v in peri-urban areas where infrastructure the pre-investment studies, and the institutional and services for energy, water, and sanitation canriot keep financial mechanisms are finalized. Similarly, the up w"ith the rate of immigration. WAhile rura] popula- work carried out in Bolivia has led to a GEF financed tions migrate to urban areas in the hope of finding project on renewable energy for $8.5 million. A re- employment and earing incomes to improve their newable energy project is also being considered for living standards, thev often find themselves in condi- financing by the WATorld Bank in Northeast Brazil, t w t LI tions wTorst than their prevlqous ones. on the basis of the analytical and technical work done with ES.M\AP's support. Particular emphasis was put Many efforts have been carried out to improve in this project on institutional and financin-g mecha- t nisms. It reviewed the possible role of private con- tholdsi ra and pen-rba arves. Yt p.r hoge 36 holds in rural and pern-urban areas. Yet, progress has been slow and remains constrained by a number of issues: * Lack of resources of poor households to pur chase energv services; * Lack of more affordable energy services and technologies; * Lack of information on technologies or deliv- ery mechanisms which are available, at times, in other parts of the world; * Inefficient market interventions, in particular on product trade;_ V Solar powered sewing machine in India. An example of renewable * Disconnect between energy planners and decision energy used to increase production and productivity in a rural area. makers, and poor energy users, leading to a limrited understanding of poor households' economic behav- Rural Electrification iors in relation to energy services; The work on rural electrification has ranged from * Limited access to funding, public or private, to studies to assess the success factors for rural electri- improve access to energy services by the poor; fication and to develop a methodology to assess the * Onus of the environmental responsibility in particu- benefits from it, to technical assistance to help gov- lar for the utilization ofbiomass and hydro resources; ernments prepare their rural electrification strate- ESINWAkP's agenda on energy services for poor gies and pilot projects and test decentralized rural rural and peri-urban households attempts to repond electrification systems. A first set of country cases to the issues listed above. Continuing on the work for the study on Rural Electrification: Success Factors from previous years, ESMAP efforts have been has already been completed. The results were pre- focussed on three main themes: sented at the Village Power Conference held under * Rural Electrification. the aegis of the World Bank and of the National i Specific applications, such as lighting, and Renewable Energy Laboratory (NREL), of the delivery mechanisms. United States, in October 1998. Rural electrifica- * Urban energy. tion strategies were completed for India, Laos, Malawi and Uganda. The Uganda and Malawi stud- ies have become major inputs for the development Figure 9 Change in Households' Choices for of the energy strategies of the respective govern- Cooking Fuels, Hyderabad, 1982 to 1994 ments. The India work is being integrated into a major lending operation of the WTorld Bank for elec- tricitiv distribution. One of its major contribution is 100 - to have identified the potential for energy conserva- LPG Only LPG Only tion in agricultural pumping, and assessed the po- 80 tential for substitution of renewable energy/mod- t 60 Kero &LP Kero&LPG ern fuels for traditional fuels. In Cameroon, as a Li60 -Kero &LPG result of the Decentralized Rur^al Electrification project, = 40 _ Kerosene Only new regulations for decentralized rural electrifica- Kerosene Only tion have been designed, and included in the new 20 Electricity Law which was scheduled to be voted by the National Assembly in 1999. 0 - ~Lessons learned from pilot projects on decen- 1982 1994 tralized rural electrification supported by ESMAP are now constituting a rich body of new knowledge. 3 7 For example, the pilot projects carried out in to LPG, and even sometimes directly from wood to Cameroon and Guinea have led to test the possibil- LPG. This substitution is taking place in spite of ity of using local capabilities to build, install and run limited income growth, which suggests that much pico-hydro schemes, to develop PV-solar home sys- of the fuel substitution has resulted from tlie liber- tems, and to run economically micro-diesel grid sys- alization of energy markets. It can also be concluded tems. In both countries, new institutional, finan- that the liberalization of fuels leading to fuel switch- cial, and procurement mechanisms have been iden- ing combined with forestry policies that str ess con- tifted. They are based on building-up an effective servation of forests and changing land used patterns partnerships between government institutions, lo- in rural areas has helped slow down deforestation cal communities, and new entrants in the market of rates in the metropolitan areas. electricity generation and distribution. Comparable The surveys confirmed that fuel subsidies do not results have been obtained in the Peru-Rural Electri- benefit the poor. They benefit the middle and up- fication project which has trained rural electrifica- per class households who can afford market rates tion organizations in the development and manage- for fuels or electricity. The study offered some con- ment of small or micro-hydro plants, in order to re- structive options to supply electricity services to duce the cost of rural electrification. lower income households, in particular to maintain the current lifeline rate for the first 5OkNNXh. to keep Specific Applications connection charges for minimal service lob, but to A whole body of knowledge is also being generated strictly enforce the policing of illegal connections. on how the poor meet their energy needs, in particu- Such a policy would be affordable and equitable and lar for lighting. Under several projects, in Uganda, would help increase access to electricity of the 30% Zimbabwe, India, and through the project Lighting poorest households in Hyderabad. The lessons from Services for the Rural Poor, field surveys have docu- this project are certainly applicable to other peri- mented both the significant amount of expenditures urban environments. the poor spend on energy, principally for cooking and The advent of much affordable technologies for lighting, and the extremely extensive use of car bat- decentralized energy services provides a definite op- teries for direct lighting or to recharge other batter- portunitv to enhance access to energy services by ies for other lighting devices. These findings stress the poor. This will continue to be a key area of the need to pursue the adaptation of available tech- emphasis for ESMAP in the coming years. nologies to meet the needs of the poor. This would The focus may vary, depending on the regions. For extend the availability of energy services to more af- example, in Africa, it is expected that the workv will fordable levels and reduce the share of expenditure in focus more on energy services to increase the poor households on basic services such as lighting. productivity of the poor, testing new financial and These findings also corroborate the existence of sig- institutional models for the delivery of energy nificant unmet demand for home-PV systems. services, in particular with the participation of the communities, and on trade liberalization to allow Urban Energy for fuel switching and greater access to new tech- A large part of the work done on decentralized rural nologies. In South Asia and Latin America, the em- energy services is of direct benefit to understanding phasis may be given to addressing the issue of how to meet the needs of the poor in the pern-urban growing pern-urban areas and a greater integration areas, where grid electricity is often not available. of policies to meet the rural and urban demands The India-Urban Energy Stzdy has corroborated these rather than favoring one sector at the expense of assumptions, by conducting surveys of households the other. Continued emphasis will also be in Hyderabad (see Figure 9). The results show that given to environmentally benign options to benefit interfuel substitution is taking place verv rapidly as from the available technical options and financing 38 people move from wood to kerosene, from kerosene mechanisms. tal Issues in the Powzer Sector. This activity provides for holding seminars in India in the states which 4D} E FIrie w EHE= y were not associated with the initial energy-envi- my FR ronment review. Emphasis is put on the states which are committed to, or already, undertaking major sector policy reforms. For all new projects, ESMAP now seeks to systematically build-up on previous knowledge and experience, so that the projects actively contribute to accumulating k_iknowledge for the developing and transition f economies. All new projects now have to be de- signed with a dissemination component - semi- j l lanars, conferences, publications. ESMAP also agreed to participate with the World Bank in the Energy anzd Development Report, a new publication 1 Pi ; aimed at improving the state of knowledge and thinking on energy issues for the twenty first cen- At the World Bank Annual Meeting exhibit, the ESMAP Manager, tury. The first report includes a collection of topi- Dominique Lallement updates World Bank's Vice President Massoud Ahmed on ESNIAP's strategy. cal essays from eminent thinkers and practitioners from developing and developed countries on the Dissemination impact of the global financial crisis on encrgy in- vestment, in particular private capital flows. The In 1998, ESMNP has strengthened its approach to report also carries estimates of the financing re- disseminate the results generated by the projects in quirements for energy services. It should reach a the portfolio. In addition to participating in several wide audience, world-wide, both in the private and international events, including the exhibit organized the public sector. on the occasion of the World Bank Annual Meeting efforts have been on the following: Publications and Internet web site ESMAP has increased the rate at which it releases On-going projects its publications, in particular in the latter part of Several on-going projects were redesigned to include the year. The fruit of these efforts will be borne dissemination components, and when necessary, in 1999. The list of ESMAP publications avail- soine additional financing was provided. For ex- able to the general public is in Annex 3. In addi- ample, the results of the Perut-Rural Electrification tion, it prepared an information pamphlet on Project was to be discussed in a national forum in ESMAP which has been widely distributed in early 1999, so that the result of local pilot studies conferences attended by ESMAP staff and project can be replicated elsewhere in the country. Like- managers. ESMIAP has also revamped its web wise, the results of the Bolivia- RuralEnergy Strategy site and will continue to upgrade it in 1999. It have been conveyed to the Government and the re- will be used, in particular, to publish short sum- sults integrated into the new rural energy policy and maries on completed projects, and 'news' from investment program. on-going projects so that the information gener- ated from field studies and pilot projects can be New projects made available in real time. ESMAP is also linked Some projects have been started, specifically to to the World Bank knowledge management data disseminate the results of previous efforts. This is base, as a means to further disseminate the re- the case of the India-Dissemination onz Envirounmen- sults of its work. 39 Governance and Management mission is to help address the role of energy in the development process, with the objective of The Consultative Group contributing to poverty alleviation, improving living The governance structure of ES.MAP includes a conditions and preserving the environment in Consultative Group (CG) composed of represent- developing and transition economies. It was agreed atives of donors and members "at large" from the that ESMAP should continue to center its regions receiving ESMALAP assistance. Since July interventions around three priority areas: 1997, the CG has been chaired by Richard Stern, Vice * increasing access to more efficient forms of President for Human Resoulrces and previously energy by the poor; Director of the Industry and Energy Department of * energy sector reform and restructuring to the World Bank. Two of the members "at large" facilitate the sustainable production, offered their resignation in the last quarter of the distribution and use of energy resources; year: Prof. Jose Goldemberg, energy efficiency * promoting environmentally sustainable energy specialist from Brazil, and Prof. Edward Ayensu, who practices. has joined the inspection panel of the WVorld Bank. The Final Communique of the CG is attached as During their tenure, Prof. Goldemberg and Prof. Annex 1. Ayensu brought exceptional expertise and knowledge to the meetings of the Consultative Group and The Technical Advisory Group (TAG) helped shape the current ESMVAP strategy. Mr Ketane The Technical Advisory Group comprises three to Sithole of Botswana was identified as a candidate to five members. The TAG's mandate is approved by join the Consultative Group as of April 1, 1999. No the CG through the terms of reference for the TAG, successor to Professor Goldemberg has yet been and its line authority is exercised through the Chair appointed. of the CG. The CG Annual meeting was held on April 3, The TAG focuses on issues of ESMNAP's vision 1998, at the United Nations in New York. The CG and strategic direction, and has a role in advising reviewed a proposed strategy for ESMAP prepared the CG and FS1\4AP's Management on the processes by ESMNWAP Management, and agreed that ESAILAP's for project selection and monitoring in crder to Figure 10 ESMAP Organization * Cha~~~~~~~~irt E ;: REichrd Sten, VP Worl2 C ;5d Bank( Technical Advisory Group (TAG) I.JNDP World Bank Financial Administration Operational Administration Budget Resource Flow of Funds Potoio Product Dissemination Budger Mvobilization M/anagemnent Management Development Activities 40 assure donors that the portfolio composition reflects acting Moderator, a function which he will the agreed strategv. It also review certain activities assume until the appointment of the new to draw lessons from past projects,including on the Moderator. Mr. Barnett has brought functioning of ESMLAP. effectiveness and hard work during the transition Several changes affected the composition of the TAG period, leading the TAG to a smooth transition in 1998. for the new Moderator. • In August 1998, Inig. Herbert Mzller Costas was * It was also decided to appoint an additional appointed Minister of Finance for Bolivia. As a member from Asia to the TAG, in order to better result of his appointment, he resigned from his address the new demands generated by recent position as TAG Moderator which he had economic developments in Asia. assumed in October 1997. During his tenure, The TAG met on three occasions in 1998, first he brought invaluable experience as a policy in April (immediately before the Consultative Group maker in the energy sector, and vision to address meeting), in June in Washington, and informally in crucial issues affecting the delivery of energy December, in London. The latter meeting was held services for the poorest populations and to k-eep up the momentum gained during the economies. He was most instrumental in previous meetings and provided an opportunity for steering the program to its current priorities and the TAG, to clarify its role and develop a plan of management structure. action for 1999. During 1998, the TAG focussed * In November 1998, the Chairman of the on review and advice on the Strategy for ESMAP. Consultative Group renewed the mandates of Dr Dr. Andrew Barnett also conducted a Review of the An1drew Barnett from the United Kingdom, an Renewable Energy Projects in ESMAP Portfolio. In independent energy and development addition, the members of the TAG maintained consultant, and Dr. Youba Sokona from Mali, frequent contacts with the ESMAP management Director of the energy program of the non-profit team and with several task managers, providing organization ENDA in Senegal. This informal advice and guidance. confirmation of the two incumbent TAG members was for another two-year mandate. ESMAP Management, Staffing and Procedures * A new Moderator, Mr7 Aifredo MirkiM, former Management. The year 1998 was a year of change minister of energy of Argentina, was identified in the management, operations, and administration to to replace Ing. Muller Costas and was of the Programme. In response to the donors, the expected to take up his position in 1999. The management of the World Bank appointed a full- chairman also appointed Dr Andr-ew Barnzett as time manager for the Programme. On April 15,1998 F'~~~~~~~A 41 Meeting of the ESMAP Technical Advisory Group (TAG): Nancy Pinto (XWorld Bank), Dominique Lallement (ESMAP Manager), Dr. Youba Sokona, Dr. Suresh Hurry (UNDP), Ing. Herbert MIuller Costa, Jan Moen, and Dr. Andrew Barnett. energy practice, a new procedure for generating proposals was introduced. It is based on the Logical Framework (LogFrame) approach as had been recommended by the TAG and suggested bv several donors. The new procedures aim to enhance trans- parency, qualitx, and fairness in the evaluation of the proposals. Calls for proposals are directed to all the members of the XVorld Bank Group energ, practice, the evaluation criteria are published (see Box 8), and the evaluation of the proposal is done by 'V_orld Bank Group and outside experts with the participation of the UNDP. Project managers can be located in anv Dr. Andrew Bamett, acting moderator of the Technical Advisory part of the NN"orld Bank Group where the needed Group in 1998.patoth rlBakGopweehendd expertise is available. This new procedure has Mis. Dominiquye La/lenient was appointed manager of strengthened the relevance ofESNVAP projects with ESNMAP, replacing Alr William Porter who had been respect to the regional strategies of the Aor!.d Bank, appointed inJuly 1997. AMr. Porter had initiated a series led to the expression of a considerable increase in of discussions, consultations and dialogues to redefine the demand for support from the Programtme, and ESNILAP's strategy. Ms. Lallement, an economist, to a strengthening of the relationship with UNDP. comes with a long development and managerial experience at the World Bank in developing and Monitoring of Implementation transition economies. She joined the Programme with The Logical Framework (LogFrame) approach a relentless commitment to poverty alleviation. adoped by ES1\Mi AP in 1998 aims at facilitating more rigorous project design and monitoring. This Staffing. With the new organization ofthe l\orld Bank approach establishes the links betweer goals, relying on YVorld Bank-wide professional networks, the objectives, outputs and inputs with verifiable staffing of the Programme has also evolved. There are indicators and specifications of the assumptions that no longer ES\MAP "dedicated" staff, other than a small underlie these relationships. Steps have been taken mainagerial and adminlistrative unit. The projects are to adapt the LogFrame to ESINWAP needs, as well as now carried out by staff members from the World Bank provide guidance and training to all current and Group energy practice and others with expertise in prospective project managers. energy policy and reform, energy efficiency, The ESM'IAP's Purpose aznd Approaci7 paper environment, primary energy resources (biomass, oil demonstrates its diverse and cross-disciplinary and gas, coal renewable), and rural or urban household objectives and activities in regional and thematic issues. ThestaffinvolvedinESAMAP workcanbeactive areas. Both monitoring and evaluation method- both on ESNAP projects and on regular World Bank ologies and program frameworks are dependent on Group activities, thereby bringing their innovative well developed indicators. These indicators provide approaches from ESAIAP into the regular work the basis for before and after analyses and (lescribe program of the WVorld Bank Group. Some of these the effects (positive and negative) of program and experts are made available through secondment and project interventions, anticipated and unanticipated; special assignments arranged wNith partner organizations intended and unintended. They fall broadly into four from the private sector and official donors. categories: Program and project implementitation. The delivery Procedures. In order to further mainstream the of technical services, operating funds and capital 42 ESMAP work program throughout the WVorld Bank inputs with related disbursements and resulting Box 8 Project Proposals: Basic Selection Criteria Assesment Ratings Pass/Fail 1. Commitment of local Government 2. Supports ESMAP priority areas 3. ESAMAP has comparative advantage 4. Relevant lessons of experience reflected in project design 5. Can generate new knowledge for which there is clear demand 0-5 6. Compatibility with CAS and World Bank Energy Policy 7. Focus on poverty alleviation 8. Innovative in developing, testing and/or mainstreaming new ideas/methods 9. Potential to be replicated 10. Contributes to institutional and capacity building 11. Dissemination plan 12. Potential for attracting investments 13. Performance indicators identified and linked to objectives and outputs 14. Focus on gender issues 15. Focus on social issues O = Not applicable 2 = Marginally Satisfactory 4 = Fully Satisfactory 1 = Unsatisfactory 3 = Satisfactory 5 = Outstanding outputs (facilities created, activities and * Socioeconomic conditions which bring out the participatorv processes organized, etc.); consequences of project interventions; and Institutional change which demonstrates capacity * Specific indicators (e.g. environmental impact) which development, attitudinal awareness shifts, and demonstrate the environmental achievements. pollcy reorientations; 43 Financial Review Funding ESMAP's funding is categorized into four types efficiency, both core and thematic funding allow distinguished by the degree to which their use is ESMAP to deploy funds to projects flexibly without prescribed by the donors. These categories are the additional burden to ESM\AP or the clonor of unrestricted core funds, which may be applied at the executing and monitoring tedious administrative Program Manager's discretion to any project or conditions. activity of the Program; thematic funds which can be applied only to projects addressing a particular Contributions Received thematic area such as renewables, or environment; ESNckP receipts totaled $8.2 million in 1998, about countrv program funding, xvhich is restricted to the same level as during the two previous fiscal years. technical assistance to a specific country; and project- Eight donors, in addition to the Worl(I Bank, specific funding which may be used only for projects contributed to the Programme. The W"Torlt Bank's or activities for which specific approval has been contribution of$1.4 million was down from -he 1997 obtainedfromthedonor,priortothecommencment level of $1.6 million, and its share of total of work. contributions dropped to 17% from 19% mn 1997. It is the fle.xibilitvy offered by core funding which Table 6 shows actual receipts by donor by year for allows ESINLAP to respond to opportunities as they the period 1996-1998. arise. Core funding is also used to pull together In an environment of contracting aid budgets, lessons across the entire program in order to ensure for which there is strong competition, ESVIAP that best practice are made available to the energy management has been gratified with the ccntinued development community. In terms of administrative support of its donors. However, in order to ensure a Table 6 ESMAP Receipts, 1996-1998 (thousand US$) Percent Percent of total, of which of total 1996 1997 1998 Total receipts core* core' UNDP 0.0 0.0 112.0 112.0 0.5% 0.0 0% W,Vorld Bank 1,496.0 1,600.0 1,400.0 4496.0 18.1% 0.0 0% Belgium 646.9 0.0 0.0 646.9 2.6% 190.0 5% Canada 809.3 732.4 255.3 1,797.0 7.2% 0.0 0% Denmark 0.0 392.8 0.0 392.8 1.6% 392.8 9% Finland 0.0 0.0 91.5 91.5 0.4% 91.5 2-% France 0.0 518.6 0.0 518.6 2.1% 0.0 0% Germany 258.1 566.4 603.6 1,428.1 5.7% 824.4 20% Netherlands 1,045.0 2.284.0 3.536.9 6,865.9 27.6% 0.0 0% Norway 1,087.7 0.0 0.0 1,087.7 4.4% 1,087.7 26% Sweden 371.1 633.6 302.3 1,307.0 5.3% 334.9 8% Switzerland 0.0 0.0 507.8 507.8 2.0% 0.0 0% United Kingdom 2,382.3 1,623.2 1,401.7 5,407.2 21.8% 1,093.6 26% Private Sector 198.2 0.0 0.0 198.2 0.8% 198.2 5% Total 8,294.6 8,351.0 8,211.1 24,856.7 100.0% 4,213.1 100% 44 'I Excludes she V/herld Bank's and IJNOP's contributions, schich are considered core. level of funding sufficient to maintain an impact in underway, and a contribution is expected in 1999. the energy development arena, ESMAP Thematic contributions totalling $ 1.3 million management recognizes that funding from other were made in 1998. All of this amount was partners - in particular private sector partners - contributed by the Netherlands, who initiated and needed to be sought. In the course of 1998, contacts contributed to three new umbrella thematic funds with a number of potential private sector partners in the course of the year namely, the non were made, at least three of which were expected to conventional energy fund for Africa, the end-use result in contribution agreements in 1999. Fund energy efficiency fund, and the fossil energy/ raising efforts will continue in the coming year, as environment fund. Core and thematic contributions, ESMAP management pursues opportunities to excluding the World Bank's contribution, for 1996- involve interested private sector partners in the work 1998 are shown in Table 7. Table 8 shows all of the Programme. contributions received in 1998 by type of funding. Core and Thematic Funding Country Program Funding In 1998, core contributions from donors other than Country program funding totaled $2.3million, the XTorld Bank totaled $1.6 million, equal to representing the second tranches of the Bolivia approximately 24% of non-World Bank Country Programme-Phase II, the Bolivia National contributions. The World Bank's contributions as Biomass Program, both funded by the Netherlands, well as the contribution from LNDP should also be and the final tranches of the Peru Country Program considered as core contribution since they are not funded by CIDA (Canada). linked to any specific project. The donors who made contributions to core included Finland, Germany, Project Specific Funding Sweden and the United Kingdom. Work on a new Project specific funding totaled $1.5 million, or 22 % agreement for core funding from Norway is of total funds received in 1998. Table 7 Core/Thematic Contributions, 1996-1998 (million US$) Core plus Total of which Core as % Thematic as % Donor a/ of which Core plus of Total Donor of Total Donor Year Contributions Core Thematic Contributions Contributions 1996 6.99 2.66 3.39 38.1% 48.5% 1997 6.80 1.65 2.35 24.3% 34.6% 1998 6.80 1.61 2.95 23.7% 43.4% Total 20.6 4.3 8.7 20.9% 42.2% a/ Does not include WVorld Bank. Table 8 Funding Breakdown in 1998 (million US$) 1998 Funding Breakdown by Fund Type Amount World Bank Contribution 1.4 UNDP 0.112 Core 1.609 Thematic 1.34 Project 1.469 County Program 2.28 45 Total 8.21 Expenditures Expenditures in 1998, or disbursements, against significantlv. This is expected to lead to a surge in ESANIAP funds totaled $6.5 million, down from $8.5 overall ESAMAP disbursement in 1999, as these new million in 1997. This drop in disbursements largely projects get underway. Finally, the uptake of the new was the result of three factors. First, efforts were EER product line was slower than expected. How- undertaken to clean up the existing stock of projects, ever, lessons from the few EERs undertaken in 1998 closing out old activities and canceling balances on are expected to contribute to a robust pipeline of projects with little chance of successful outcome EERs in 1999 and beyond. (typically because of a change in client country in- Of the total $6.5 million disbursed in 1998, ap- terest in the activity). Second, although 17 new op- proximately $1.2 million was applied to program erations were approved and became operational dur- management and administration costs, including the ing the year, disbursements on these new operations cost of CG and TAG Meetings, the TAG evaluation were not yet significant. Anticipating the introduc- of the ES.MAP Renewable Energy program, and non- tion of a new system for review of proposals, several project specific publications and communicalions. Of new projects were deferred, to ensure that all pro- that, the UNTDP contributed $112,000 to the costs posals were reviewed for merit on a consistent and associated with the TAG activities. Table 9 summa- transparent basis. The first call for proposals under rizes ESMLAP's actual operational and overhead costs the new system was introduced in October 1998, and by year for the period 1996-1998. Table 10 shows since that time the stock of new projects increased CG and TAG expenses for the same period. Table 9 Operational and Overhead Expenses, 1996-1998 (thousand US$) 1996 1997 1998 Staff Costs Donor Funded 2,120 1,122 1,548 World Bank Funded 885 1,005 807 Subtotal 3,005 2,127 2,355 Consultant fee and contractual services Donor Funded 3,489 4,104 2,695 World Bank Funded 30 75 120 Subtotal 3,519 4,179 2,815 Travel Donor Funded 977 1,316 720 World Bank Funded 79 100 139 Subtotal 1,056 1,416 859 Other Expenses Donor Funded 341 340 23 World Bank Funded 436 408 300 Subtotal 777 748 323 Total Operational and overhead 8,357 8,470 6,352 CG and TAG expenses 116 73 146 Total ESLMAP Expenses 8,473 8,543 6,498 of which:contribution from the World Bank 6,977 6,943 5,098 of which:contribution from donors 1,496 1,600 1,400 Table 10 ESMAP Consultative Group and Technical Advisory Group Expenses, 1996-1998 (thousand US$) Expense Item 1996 1997 1998 CG Meeting 42 12 21 TAG Meetings and Evaluations Honoraria and Fees 40 24 95 Travel 33 34 30 Miscellaneous 1 3 Subtotal 74 61 125 of which Donors 50 61 112 of which Bank 24 0 13 Total CG and TAG Expenses 116 73 146 of which Donors 50 61 112 of which Bank 66 12 34 Cash Position As of December 31, 1998, cash balances in ESIMAP funds are no longer carried out routinely. One trust fund accounts totaled $13.5 million, reflecting audit for a project initiated prior to June 1995 the low level of disbursement during the period. This was undertaken in 1998 - the audit of the Dutch balance is up from $10.8 million at end-December Grant to Poland Energy Sector Restructuring. 1997. Of the total fund balance, approximately $6 The financial statement for the project was million had not been committed to projects at end judged to present fairly the financial position of 1998. Since then approximately $4 million has been the project. allocated to projects approved in 1998, bringing un- committed core funds to nearly zero, and uncom- Figure 11 Receipts 1996-98 mitted project funds to approximately $2 million. At the same time, resource requirements for projects alreadv approved exceeded available funding by more P,vate Sect-r lNDP \ne-ld Bank I R'! than $ 1.0 million. Single Audit Process Cnd Injune 1995, the Bank instituted a 'single audit' pro- cess whereby the Bank provides donors, if they so agree, with an annual management assertion together with an attestation from the Bank's external auditors a aSS on the satisfactory performance of the procedures Sastrer]and 2? and controls used by the Bank in administering trust S-d- 5e"'l 2inl-d O funds. Most ESMAP donors have agreed to the single Norn- 4'a, F-- 2% audit process and as such, specific audits of individual Nah-1-d, % Germans 6/ 47 List of Abbreviations and Acronyms AP Andhra Pradesh (India) ARPEL Asistencia Reciproca Petrolera Empresarial Latinoamerican BOT Buid-Operate-Transfer CEE Central and Eastern Europe CG Consultative Group CHP Combined heat and power CNG Compressed natural gas CY Calendar year DFID Department for International Development (DFID) DH District heating DSM Demand side management EER Energy environment review ESCO Energy savings company ESMNIAP Energy Sector Management Assistance Programme ESOP Employee share ownership plan EU European Union FSU Former Soviet Union GDP Gross Domestic Product GEF Global Environment Facility IFC International Finance Corporation (XW0orld Bank Group) IPP Independenr power producer (or project) ITP Independent transmission project kAV Kilowatt kWh Kilowatt per hour LogFrame Logical framework LPG Liquefied petroleum gas MIS Management information system M&T Monitoring and 'largetting NGO Non-governmental organization NREL National Renewable Energy Laboratory (United States) OCDE Organization for Economic Cooperation and Development ONE Office National de l'Electricite (Morocco) PV Photo-voltaic PVMTI Photo-Voltaic Market Transformation Initiative SAPP Southern Africa Power Pool TAG Technical Advisory Group UFNDP United Nations Development Programme URE Energy Regulatory Authority (Poland) US United States 48 Boxes, Figures and rables Page Box 1 Vietnam: Technical Assistance for Natural Gas Development 8 Box 2 Towards Market Reforms in Non-OECD Countries: A Scoresheet 17 Box 3 Southern Africa Power Pool 21 Box 4 Nicaragua: Modernization of the Fuelwood Sector 23 Box 5 Harmonization of Fuels Specifications in Latin America and the Caribbean 26 Box 6 India: Addressing Environmental Issues in the Power Sector 29 Box 7 District Heating in Central and Eastern Europe 32 Box 8 Project Proposals: Basic Selection Criteria 43 Figure 1 Energy Access for the Poor: Our Clients Have a Long Way to Go 6 Figure 2 Actual and Projected Energy Demands: Our Clients Are Front Runners 7 Figure 3 ESMAP Financing 1997/1998 14 Figure 4 Number of Project 1997/1998 14 Figure 5 Average Project Size 1997/1998 14 Figure 6 Changes in Project Portfolio, 1996-1998 14 Figure 7 Elements of Sustainable Development 28 Figure 8 India's Energy Environment Review: Structure of the Decision Making-Tool 30 Figure 9 Change in Households' Choices for Cooking Fuels, Hyderabad, 1982 to 1994 37 Figure 10 ESMAP Organization 40 Figure 11 Receipts 1996-1998 47 Table 1 Profile of 1998 Portfolio 12 Table 2 Profile of 1998 Portfolio by Region and Theme 13 Table 3 Evolution of the Portfolio 13 Table 4 Thematic and Geographic Coverage of ESMAP Projects in 1997 and 1998 15 Table 5 Cumulative Disbursements through December 31, 1998 15 Table 6 ESMAP Receipts, 1995-1998 44 Table 7 Core/Thematic Contributions, 1996-1998 45 Table 8 Funding Breakdown in 1998 45 Table 9 Operational and Overhead Expenses, 1996-1998 46 Table 10 Consultative Group and Technical Advisory Group Expenses, 1996-1998 47 49 Annex 1 Final Communiqu6 Meetings of the Consultative Group of ESMAP New York-, NY - April 2-3, 1998 The Seventh Meeting of the Consultative Group of theJoint UNDP/World BankEnergy SectorManage- ment Assistance Programme (ESMAP), was held at the 'United Nations headquarters in New York, on April 3, under the Chairmanship of Mr. Richard Stern, Deputy Vice President of the World Bank. The meeting was preceded on April 2, by the ESM\4AP Donors' Roundtable on Energy for Sustainable Development, with participation from energy and development experts from industrial and developing countries. The Roundtable included four sessions on Emerging New Policies for Sustainable Energy, Emerging Good Practices in Sustainable Energy, Financing Renewable and Rural Energy; and Financing Sustainable Energy After Kyoto. The first session of the roundtable examined emerging policy and industrial issues related to the needed enabling environment-at the national and global level-to promote more sustainable energy systems. This session also focused on the interface between energy and poverty alleviation, and energy and the environment, and examined key development bottlenecks to be addressed to facilitate the creation of sustainable energy systems. The second session considered new promising approaches in energy systems, development assessment, and delivery mechanisms. In particular, technological and institutional innovations in renewable energy and energy efficiency were discussed. The third session considered alternative mechanisms for financing the delivery of sustainable energy services through new institutional, administrative and market arrangements to promote both energy efficiency and renewable energy. The role of government in establishing and promoting a supportive enabling environment to reach the social, economic and environmental objectives for financing sustainable energy was considered. The last session of the roundtable revie-wed new issues and opportunities for promoting sustainable energy investments and initiatives as a follow up to the conclusion of the Kyoto Protocol. National interests, economic efficiency and environmental benefits related to lowering carbon emissions were discussed from the perspective of industrialized and developing countries. The Consultative Group (CG), reviewed the operations of ESMALAP in 1997 and examined the ESM\LAP Work Program for the current year. The CG reviewed a proposed strategy for ESMAP prepared by the Management of ES1MVIAP at the request of ESMIAP's Technical Advisory Group (TAG). The CG agreed that ESMLAP's mission is to help address the role of energy in the development process; with the objective of contributing to poverty alleviation, improving living conditions and preserving the environment in developing countries and economies in transition. It was agreed that ESMAP should continue to center its interventions around three priority areas: * energy sector reform and restructuring to facilitate the sustainable production, distribution and use of energy resources; * increasing access to more efficient forms of energy by the poor; * promoting environmentally sustainable energy practices. The CG received a report from the TAG addressing administrative and strategic issues facing ESMAP. The TAG emphasized that ESM\4AP slhould clearly remaii aii energy programn, even though environmental concerns have to be part of its mission. The TAG also estimated that ES.MAP's emphasis should be on energy development as an essential factor for poverty alleviation. As a vision for ESMAP, the TAG sug- gested that ESMAP would be most effective as a $10 to 15 million a year program, with 60% to 70% of 51 core funding. This would give to the Programme the ability to move fast in providing assistance and innovative solutions, both in the traditional and non-traditional energy sectors. ESMAP's comparative advantage is in providing governments of developing countries and economies in transition unbiased ad- vice on energy strategic issues, most notably on the relation between energy, poverty alleviation and sus- tainable development. The TAG also endorsed two new types of activities that ESMAP proposes to launch shortly: for assess- ing the result of energy sector reform, and for assessing, on a country by country basis to define more clearly the linkages between energy production, transportation and use, and the impact of the activities on the environment. The CG endorsed the TAG report and expressed its appreciation for the work accomplished by the TAG and the Management of ESM\LAP since the last meeting of the CG. Donors confirmed their support to the Programme as a unique interface between the donor community and the recipient community to promote effective approaches for sustainable energy. They agreed that the emergence of climate change considerations has importaconsonsequences on the production and use of energy that ESIMAP, as an energy program, cannot ignore. It was recognized that ESMAP could play a useful role in raising the awareness on new mechanisms being developed to address climate change issues and in helping establish the basis for using such mechanisms. Donors recommended that ESAMAP coordinates closelv its activities in -his area with other bilateral and multilateral efforts, including those conducted by the World Bank, the GEF and LT,NDP. During the discussion of the ESMAP strategy and work program, donors asked the management of ESALAP to ensure that the Programme remains focused and that the number of activities be maintained at a level consistent with the overall dimension of ESMAP. They emphasized that when tackling issues of energy access for poverty alleviation ESLMLAP should address the provision of energy to the poor in urban as well as rural areas, and pay attention to gender issues. The CG reviewed the intention of ESMAP to assess the result of energy sector reform and confirmed the view, also expressed by the TAG, that in this assessment ESA'IAP should look at the social and environ- mental consequences of sector reform and privatizations. The CG welcomed the strengthened participation of UNDP in ESMAP and encouraged the rnanage- ment of ESMLAP and UNDP to investigate ways to cooperate more closely on individual activities. The CG expressed its gratitude to Mr. William Porter who served as Manager of ESMLAP siince July 1997, and welcomed the appointment of Ms. Dominique Lallement who was appointed Manager of EESAMAP, effective April 15, 1998. In addition to the co-sponsors of the Programme-the LTNDP and the World Bank-the following donors were represented at the Consultative Group: Canada, Denmark, Finland, France, Germany, the Netherlands, Norvayv, Sweden and the United Kingdom. The CG expressed its appreciation to tUNDP for hosting its meeting and for supporting the Technical Advisory Group of ESMLAP. The Consultative Group of ESMAP will reconvene in about one year. r1 Annex 2 Activities Completed, Launched and Ongoing in 1998 5 3 Table A2.1 Activities Completed in 1998 Africa Commercialization of Marginal Gas Fields December97 145,656 36,189 A study to identify ways of commercializing gas fields too small for LNG and too far away from conventional fueli markets. Central Asia Gas Trade December97 1,147,366 389,882 A study to assist the governments of gas producers in Central Asia in developing a sound strategy for nauLral gas investment, use and trade. Global 1997 Energy Efficiency Rouidtable September98 85,127 85,127 A roundtable and summary report on the meeting between r epresentatives from developing countries, the finanicial sector anti energy efficiency professionals. Global 1997 Rural Energy Roundtable May98 61,592 61,592 A roundtable to provide an opportunity for donors, development agencies, multilater-al han1ks, NGOs, private sector firms and host country officials to participate in an open discussion on recent developments in rural energy and fuiture strategies. Global 2 Techniques for Financing Photovoltaics February 98 29,565 29,565 A proposal for expanding the commercial sales of photovoltaics for household and commercial use in rural areas of developing countries. India Environmental Issues in the Power Sector June 98 1,963,123 1,963,123 A stidy aimed at reducing the environmeental imipact of power generation in TIndia and presenting a menu of options for decision makers to msitigate those effects. Morocco Gas Pricing Study October 98 180,826 180,826 A study to establish and define a gas pricing policy for Morocco, to define domestic gas tariffs and to analyze the impact of gas pricing on fiscal revenues. Poland Energy Sector Restructuring Program October 98 1,151,864 1,073,612 A study to identify alternative natural gas import optionas and support the Polish government in reforming the energy sector along market lines, as well as promote private sector participation. 11t l.i 1 i, (, w -Q Iy ( IIXI ;\ tdIN till (; f\s Cmlstm-lt F>AV --, I vWY 1154 Mc Sl.X,,: I f < o 1 ,untci5g l ' 70t(A o - cs Table A2.1 Activities Completed in 1998 Poland Natural Gas Upstream Pricing August 98 86,227 56,266 A stuLdy to prepare a critical review of the natural gas upstreani pricing policies for a number of diverse countries offering differing degrees and types of risk for domestic and foreign private investors. Swaziland Household Energy Strategy Study October97 77,190 77,190 A report to develop an integrated household energy strategy for Swaziland with a view to identify the main policy and institutional issues and recommend chlanges, financial and technical assistance. Tanzania Power Loss Reduction and Distribution Expansion June98 765,331 765,331 A study to assist the Tanzanian electric utility to identify and quantify sources of technical and non-technical losses in the power system, and to develop programs to reduce these losses to economically feasible levels. Tunisia Renewable Energy (RE) Strategy Study December 98 197,514 32,053 A study to identify the potential for renewable energy development and a proposed plan of action for overcoming existing barriers. F rcmchtcr11 t fth. report has been -s-Udcl. Table A2.2 Activities Launched in 19984 Africa RegionSouthern African Conference on Regional Energy Regulation July 1998 80,000 80,000 A conference on regional energy regulation cooperation to identify sector restruchlring needed in individual countries and to promote efficient electricity markets for regional economic growth. Global Financing Decentralized Rural Electrification March 99 15,000 15,000 A study to review and evaluate the experience of rural financing mechanisms and extract best practices for dissemination. Global Global Overlay - GHG Emissions in India Power Sector March 98 125,000 50,000 A study and report on Greenhouse Gas emissions in the India power sector for the states of Andhra Pradesh and Bihar, focusing on alternative policy options including the restructLuring of the power and coal sectors. Global Peri-urban Electrification Project January99 15,000 15,000 A deskstudy to summarize worldwide experience with mcthodologies on how to extend electricity services to peri-urban customers in a cost effective manner. Global Oil & Gas Development Promotion Project April 98 150,000 150,000 A program designed to assist investors, includinig the Bank Group and its client cossntries, in the identification and effective promotion of oil and gas developmnenit opporuisiities on the best obtainable terms. Global Review of Status of Energy Sector Reform April 98 150,000 150,000 A study to provide the financial comisiunity with a preliminary assessment of energy sector reforms introduced in developing and ttansition economies and issues involved in energy sector reform. India Dissemination of Enviroismnental Issues in the Power Sector March 98 297,000 297,000 Workshops assd training programs to disseminiate the report India: Einvironf'tetal Issues in the Power Sector to variouis states. India Electricity Sector of Goa - Regulatory Development and Tariff Modeling December 1998 506,000 299,000 'echnical assistance to the government of Goa State to establish a regulatory framework for the restructured electricity sector, and to design a sustainable and efficient tariff schedule. ) Ol) t i..tiludc thc (Glob.lL gy h-i'p oro-lnifehlicJl bocior 55 orb it ,cl ht. .ibo. ppl tot ip ilic. 11 til' Cotl i,S (fit E car Table A2.2 Activities Launched in 1998 Mekong Region Mekong Regional Market June 1998 140,000 140,000 A workshop and follow-up technical assistance program to address regional electricity trade issues and to share knowledge and expericnces between interested partners in the Nlekong region. Mexico Environmental Strategy for the Energy Sector August 98 145,000 145,000 A study and technical assistance to public and private institutions to assist in the development of an integrated, strategic vision of the interactions between the energy and environiiienital sectors and the implications for the economy, and to develop the required analytical tools. Mongolia Coal Stove Improvement Program Jule 1998 50,000 50,000 A project to collect dlata on residential cook stove emissions and to field test alternative technologies to reduce energy expenditures of the poor peri-urban families of Ulaan-Baatar. Pakistan Clean Fuel Project SeptemDber 1998 542,956 542,956 A study and recommendations which specify steps needed for total elimination of lead in gasoline, and cost effective measures for reducing particulate emissions from the combustion of automotive diesel and fuel oil. Philippincs Strengthening of Rural & Non-Conventional Energy Development Program January 1998 210,000 210,000 A study and workshop to review and provide recommendations for the impleimieitation of the national non-convelniossal cnergy developmcnt program Sri Lanka Energy-Environment Rcview September 1998 150,000 150,000 A study and workshops to develop an integrated strategy and practical policy options toaddress key energy-environment issues, devclop appropriate analytical tools, and strengthen local capacity through collaborative work with stakeholders. Sub-Andean Sub-Andean Basin Socio-Economic Guidelines July 1998 130,000 130,000 Technical assistance to establish cormnon approaches in forming and implementing policy and frameworks to promote environmentally and socially acceptable oil and gas industry operations. 00 Table A2.3 Activities Ongoing in 1998 Africa Fortim on Downstream Petroleuimii February 97 50,912 50,912 Africa Africa Gas Tnitiative Phase I March 94 769,002 601,890 Africa Gas Training February 97 273,000 43,000 Africa Improving Efficicncy of Petroleum Procur ement and Dissemination March 94 148,000 1(0,000 Africa LPG, Options October 96 125,665 108,665 Africa Petroleum 'Transportation Corridors March 97 150,000 150,000 Africa Product Specifications Standardization hluly 96 227,500 80,000 Africa Regional Electricity Demanid Management 'IA Phase 11 January 96 100,000 100,000 Africa West Africa Solar Project April 95 360,000 360,000 fBolivia Assisting Regolatory Agencies Following the Capitalization of the National Oil Company January 97 388,210 388,210 Bolivia Country Programme Phase IT December 97 494,475 494,475 Bolivia Energy Efficiency and Environmcnt March 94 405,431 405,431 Bolivia Fauergy Strategy for Rural Sector September 94 330,000 330,000 Bolivia National Biomass Programme December 97 918,590 918,590 Bolivia Renewables for Rural Electrification April 96 1(0,944 10,944 Brazil Bahia End-use Energy and Effluient Management Strategy 'I'A March 96 64,400 64,400 Brazil Electricity Energy Efficiency Phase IT FINEP Janiary 96 90,000 90,000 Brazil Northeast Renewable Eiergy Identificationi March 96 110,054 110,054 Brazil Special Initiative on Eneigy Efficiency Februaiy97 225,000) 135,000 Cambodia Commercialization ofa Power Company December95 362,381 362,381 Camueroon Decentraliz,cd RuLal Electrification May 96 250,000 250,000 Cameroon En'ergy Strategy Decemher 06 426,467 126,167 Central America and Panania RUr al Electrification and Power Reform Octobcr 97 300,000 300,000 Central and Eastcin Furope District Heating I March 95 674,091 601,591 Table A2.3 Activities Ongoing in 1998 Central and Eastern Europe Ukraine Tntegrated Heat Demonstration Project January 97 210,913 210,913 China Tnstitutional Strengtheniig and TA in Rural Pow-er Sector; Power Efficiency Pilot Study March 92 324,108 324,108 China Natural Gas Development Strategy February 95 78,142 78,142 Comoros Solar Market Development August95 168,120 168,120 Egypt Renewable Energy Strategy and Institutional Strengthening Study December 95 113,029 75,029 Egypt Solar Thermal Power Options AMarch 97 50,000 50,000 Ghana Corporatization of Distribution Concessions 'l'hrough Capitali7ation April9 7 140,000 140,000 Global Argentina and the Netherlands - CNG - LPG Experience July 97 12,760 12,760 Global Carbon Backcasting Study November 96 100,000 100,000 Global Costs of Grid Extension for Rural Electrification June 97 85,000 85,000 Global Electricity Benefits Assessment April 96 237,000 237,000 Global Energy and Environmcnt Steering Comimiittee April96 138,050 138,050 Global Energy, Transport, Environment Study February 96 28,000 28,000 Global Environment Manual for Power Development June 95 455,700 455,700 Global Gas Flaring Reduction October 96 75,000 75,000 Global Gas Leakage from Natutral Gas Operations in Developing Countries November 97 8,499 8,499 Global Increasinig Efficienicy of Gas Distribution Networks December 95 156,624 126,324 Global Lighting Services for the Rural Poor February 96 143,631 143,631 Global Oil Spills Occurrence Database, Modeling, Remediation and Prevention November 97 421,300 50,000 Global Regional Project Identification Strategy 11 February 96 112,000 112,000 Global Rural Electrification Success Factors June 96 50,000 50,000 Global Solar Initiative Regional Strategy March 95 171,294 75,000 Guinea Decentralized Rural Electrification December 95 250,000 250,000 lndia Rural Energy Study July 89 389,466 389,466 i Chi.n Natural Gas Dvcel,apisse t Stratcgy has be-i dr&oppcd fr-mn the work program. '.S0 Table A2.3 Activities Ongoing in 1998 India Urban Fnergy Stody March 93 389,466 389,466 Kenya Photovoltaics-Financing Mechanisimis for Solar Electric Equipment September 95 255,000 255,000 Lao PDR Decentralized Rural Flectrification April 96 208,662 208,662 Latin America and the Caribbean Improving Fuel Quality in Latin America (Lead Elimination Phase To) January 97 363,022 363,022 Malawi Rural Energy Development February 96 322,554 322,554 Middle East and North Africa Lead Elinmination February 97 50,000 50,000 Mongolia Energy Efficiency Programi january 96 590,150 50,000 Morocco Gas Development Plan, Phase 2 March 93 525,407 525,407 Nicaragua Modernization of Fuelwood Sector August97 175,000 175,000 Pakistan Energy Efficiency Technical Assistance to ENERCON March95 152,569 152,569 Peru Environmental Impact of Hydrocarbons Production September 95 207,199 207,199 Peru Rural Energy Electrification September95 178,668 178,668 Peru Training: Energy Management Services October 95 307,198 307,198 Peru/Colombia End-Use Energy and Effluent Management Strategy Study May 96 50,000 5(,000 Philippines I Strengthening of the Rural & Nonconventional Rural Development Program August97 210,000 210,0001 Slovak Republic Energy Efficiency Technical Assistance August 94 301,659 301,659 Slovenia Workshop on Private Participation May 97 54,000 54,000 Southeri Africa Renewable Energy for Rural Elcctrification Decem-tber 95 94,098 94,098 Southern Africa Developmeit of an Electricity Market May96 130,000 130,000 Tanzania TA to DOE and TANESCO January93 757,284 757,284 Uganda Power Restructuring Implementation Study January 97 99,932 99,932 Uganda Rural Electrification Study May96 170,0(00 170.000 Vietnam Environmiental and Safety Aspects of the Downstream Gas Indsustry Jine 97 454,000 77,000 Vietamn TInstituLtionial Reform and Restructuring of Petrovietnamn Gas Company January 97 165,285 66,000 Project niree ehnirgdi fr.,,, OjI,ite- fi,r Pr,, iti.ati-n tf l lectricit Su,pply I,f- Sm,,1 1I.L Isd. Aote: IDoes teot iiclsdc thc jir eject, listed ii Table A2 1. "Activitics (Complctc(l D)miiig ( ends, 1998," or lablc :\2.2, 'Acti,itie, Iiiclie'hCd Druing (Cl-djar 1998'" Table A2.3 Activities Ongoing in 1998 Vietnam Pos er Sector Rcgulation and E1lectricity Law AMay 96 329,700 329,700 Vietnam Reservoir Management Workshop and Upstrcam Fiscal Systems April 97 106,000 66,000 Zambia Energy Sector RestrLcCLuring Jnne 93 583,071 583,071 Zimbabwe Decentralized Rural Electrification September 97 169,860 169,860 Annex 3 List of Reports on Completed Activities by Region and by Theme Focus Area Region/Country (language availability) . 0S U ' .tt SUB-SAHARAN AFRICA Africa Region Anglophone Africa Houselhold Energy Workshop (English) 07/88 085/88 Africa Region Regional Power Seminar on Reducing Electric Power System Losses in Africa (English) 08/88 087/88 m Africa Region Institutiotnal Evaluation of EGL (English) 02/89 098/89 Africa Region Biomass Mapping Regional Workshops (English) 05/89 - Africa Region Francophone Household Encrgy Wlorkshop (French) 08/89 - Africa Region Interafrican Electrical Engineering College: Proposals for Short-and Long-Term DevelopTment English 03/90 112/90 Africa Region Biomass Assessment and Mapping (English) 03/90 - Africa Region Svmposium on Power Sector Reform and Efficiency Improvemnent iTn Sub-Saharan Africa (English) 06/96 182/96 Africa Region Conmnercialization of Margilnal Gas Fields (English) 12/97 201/97 A.ngola Energy Assessment (English and Portuguese) 05/89 4708-ANG Angola Power Rehabilitation and 'lechnical Assistance (Englislh) 10/91 142/91 Benin Energy Assessment (English and French) 06/85 5222-BEN Botswana Energy Assessmcnt (English) 09/84 4998-BT Botswana Pump Elcctrification Prefeasibility Study (English) 01/86 047/86 Botswana Review of Electricity Service Connlection Policy (English) 07/87 071/87 Botswana Tuli Block FarMs Electrification Study (English) 07/87 072/87 Botswana IIousehold Energy Issues Study (English) 02/88 - Botswana Urban Houisehold Energy Strategy Study (English) 05/91 132/91 Burlina Faso Energy Assessment (English and French) 01/86 5730-BUR Burkina Faso Technical Assistance Program (English) 03/86 052/86 Burkina Faso Urban Household Encrgy Strategy Study (Etnglislh and French) 06/91 134/91 Burundi Energy Assessmcnt (English) 06/82 3778-BU Burundi Petroleum Supply Management (FEnglish) 01/84 012/84 Burundi Status Report (English and French) 02/84 011/84 Burundi Presentation of Energy Projects for the Fourth Fivc-Year Plan (1983-1987) (Englislh and French) 05/85 036/85 Burundi Improved Charcoal Cookstove Strategy (English and French) 09/85 042/85 Buruindi Peat Utilization Project (English) 11/85 046/85 Burui(ii Energy Assessment (English and Frcnch) 01/92 9215-BU Cape Verde Energy Assessment (English and Portuguese) 08/84 5073-CV Cape Verde Household Energy Strategy Study (English) 02/90 110/90 Central African Encrgy Assessement (Frenclh) 08/92 9898-CAR Republic Chad Elements of Strategy for Urban Household Energy: The Case of N'djamena (French) 12/93 160/94 oN 4- Focus Area Region/Country 0 0 (language availability) , - F' . SUIB-SAHALRAN AFRICA (Coloros Einergy Assessmenit (English anld French) 01/88 7104-(CM (Coligo Elnergy Assessimienit (Elnglish) 01/88 6420-COB (Congo Power Development Plan (E'nglish and F rench) 03/90 106/90 (ote (Ilvoire Unergy Assessmllecit (EInglislh an(d French) 04/85 5250-TVC (hte divoire hmproved Biomass Utilization (English and lF'rench) 04/87 069/87 ('te divoire Power Svstem IEfficiency Stud(y (En11glish) 12/87 - (.ote (I'Tvoire lower Sector Ffficienicy Stu(ly (Fircinch) 02/92 140/91 m (.oCt(l'[voire Project of Energy Efficiency in 3uildinigs (Eniglisil) 09/95 175/95 Ethiopia IE n1ergy Assessimienlt (Englisis) 07/84 4741-ET Ethiopia Power System Efficienicy Stu(ly (English) 10/85 045/85 Ethiopia Agricultural Residlue Bri(qtoetting Pilot Project (EFnglish) 12/86 062/86 Etdiopia 13agassc Stu(ly (E'nglish) 12/86 (063/86 m m m Ethiopia (.ooking Efficicicy Project (English) 12/87 Ethiopia E'niergy Assessmecnit (EInglish) 02/96 179/96 Gabon Energy Assessmiicit (English) 07/88 6915-GA '1'he Gambia Elnergy Assessmnent (English) 11/83 4743-GM '[he Gambia Solar WATater Heating Retrofit Projcct (English) 02/85 03(0/85 'l:'h (, ambia Solar Photovoltaic Applications (English) 03/85 032/85 The (Gaml)ia Petroleutim Supply Management Assistance (English) 04/85 03 5/85 G,hana Energy Assessimielnt (Eliglishi) 11/86 6234-GII Ghana Energy Rationalization in the Indtustrial Sector (English) 06/88 084/88 m (Glharna Sawmill ResidLocs Utilization Stu(dy (English)) 11/88 074/87 Ghana Ind(ustrial Energy Efficicncy (English) 11/92 148/92 m Guinea En.lergy Assessimieint (IE.nglish) 11/86 6137-GUI Guinea Ilotiselsol(d E,'nergy Strategy (E'nglish and( lFirenich) 01/94 163/94 Guinca-Bhissan lEnergy Assessmncit (E.nglish and Plortugucsc) 08/84 5083 -GUB (Guinea-Blissau Recomimlend(led k'lclinical Assistancc Projccts (Fnglish & PortuguHese) (04/85 033/85 Guinea-llissau Managemicint Options for the El,"ectric Plower and( Water Supplv Suhisectors (Englislh) 02/90 100/90 Guinea-Bissau Power and Water Institutional RestrLctoiriuig (French) 04/91 ]18/91 Kenya F ncrgy Assessment (Eniglislh) 05/82 3 800-IKE Kenya .Power System Efficiency Study (EInglishi) 03/84 014/84 m Kellya Statis Report (Fnglish) 05/84 016/84 m Kenya (Coa l Conversion Action Plan (Einglishi) 02/87 - Keniya Solar WNiatcr Heating StuLdy (English) 02/87 066/87 Kenya Peri Urban WoodIfuel Developmncit (English) 10/87 076/87 Kenya Powuser Master Plan (Englishi) 11/87 - Kenya Power [oss Reduction Stti(ly (English) 09/96 186/96 Focus Area Region/Country 7 .5 (language availability) SUB-SAHARAN AFRICA Lesotho Energy Asscssment (English) 01/84 4676-LSO Liberia Energy Assessment (Englislh) 12/84 5279-LBR Liberia Recommended Techlnical Assistance Projects (English) 06/85 038/85 Liberia Power- System Efficiencv Studv (English) 12/87 081/87 m Madagascar Energy Assessment (English) 01/87 5700-MAG Madagascar Power Systemll Efficiency Studv (EnTglislh and Ftench) 12/87 075/87 m Madagascar Envirotnml-ental lmpact of XVVodfiiels (French) 10/95 176/95 NIalawi Energy Assessment (English) 08/82 3903-MAL Malawi Technical Assistance to Improve the Efficicncv of Fuelwood Use in the Tobacco Industrv (English) 11/83 009/83 Mala.wi Status Rcport (English) 01/84 013/84 Mali Energy \kssessmnent (English and French) 11/91 8423-MLI Mali IIousehold Energy Strategy (English and French) 03/92 147/92 Islamic Republic Energy Assessment (English and French) 04/85 5224-MAU of Mauritania Islamic Republic Houselhold Energy Strategy Stui(y (English and French) 07/90 123/90 of Mauritania Mauritius Energy Assessment (Fnglislh) 12/81 3510-MAS Mauritius Status Report (English) 10/83 008/83 Mauritius Power System Efficiency Audit (English) 05/87 070/87 m Mauritius Bagasse Poss er Potential (English) 10/87 077/87 Nl3auritius Energy Sector Review (English) 12/94 3643-MAS Mozambique Energy Assessment (English) 01/87 6128-MOZ Mozambiquc Houselhold Electricity Utilization Study (English) 03/90 113/90 Mozamiibique Electricity Tanffs Studv (English) 06/96 181/96 Nlozambique Sample Survey of Low Voltage Electricity Customers 06/97 195/97 Namibia Energy Asscssml-ent (Englislh) 03/93 11320-NAM Niger Energy Assessment (French) 05/84 4642-NIR Niger Status Report (English and French) 02/86 051/86 Niger Improved Stoves Project (English and French) 12/87 080/87 Niger Ilousehold Energy Conservation and Substitutioni (English anid Fren;ch) 01/88 082/88 Nigeria Energy Assessment (English) 08/83 4440-UNI Nigeria Energy Assessment (English) 07/93 11672-UNI Rwanda Energy Assessment (Englislh) 06/82 3779-RWV Rwanda Status Report (Ftnglislh and French) 05/84 017/84 Rwanda Improvcd Charcoal Cookstove Strategy (English and Freiich) 08/86 059/86 Rwaanda Improve(d Charcoal Production Techniqties (English and French) 02/87 065/87 * * m a1 CN Focus Area Region/Country - E (language availability) . 0 -d o 2 a.t -X pX X tS SUB-SA-IARAN AFRICA Rwanda Elnergy Xssessment (lEnglish and Frenich) 07/91 8017-RW Rwanda (Comminercialization of Improve(d Charcoal Stoves and Carbonization lechniqnes Mid-JIerin Progress Report (Eniglisli and Frenlch) 12/91 141/91 SADC SADC( Regional Power InterconnectioIn Stu(iy, Vols. I-IV (English) 12/93 - m SADCC SA DCC Regional Sector: Regional Capacity Bul;ding Programl for Energy Surveys and Policy Analysis (English) 11/91 - m Sao '16ine Energy Assessimeit (Elnglish) 10/85 5803-STP and Principe Senegal Fnergy Xssessment (Fnglislh) 07/83 4182-SE Senegal StatLes Report (Englishi and Frenichi) 10/84 025/84 Senegal Inidustrial Energy Conseivation Stu(ly (English) 05/85 037/85 Senegal Preparatory Assistance for Donor Meeting (Fnglish and( Fl-renlchi) 04/86 056/86 Senegal Urban THousehold Energy Strategy (E'nglislh) 02/89 096/89 Senegal Industrial Energy Conservation Program (Englislh) 05/94 165/94 m Seychelles Energy Assessmenit (ETiglish) 01/84 4693-SEY Seychelles Flectric Power Systemii Efficienicy Study (Eiglishi) 08/84 021/84 m Sierra Leone Eniergy Assessmeint (Englislh) 10/87 6597-SL Somalia Entiergy Assessmiient (English) 12/85 5796-SO Republic of Options for the StructuLe and RegUlation of Natural Gas Industry South Africa (Englislh) 05/95 172/95 Sudain Maanagementi Assistance to the Ministry of Eniergy andl Mininig 05/83 003/83 Sd(lanl Eniergy Assessmenit (English) 07/83 4511-SU Sudan Power System Efficiency Study (Eliglishi) 06/84 018/84 m Sudan Status Report (Eniglishi) 11/84 026/84 Sudan Woo(d Energy/Forestry Feasilility (Esnglish) 07/87 073/87 Swaziland Energy Assessmenit (Englislh) 02/87 6262-SW Swaziland(i IloLsehold Energy Strategy Sti(ly 10/97 198/97 'finzania Energy Assessment (English) 11/84 4969-TA Tanzania Peri-Urhair Woodfuels Feasibility Stiudy (E.nglish) 08/88 086/88 Tinzania 'Tobacco Coring Efficiency Study (EInglislh) 05/89 102/89 m Tanzania Remote Sensing and Mapping of Woo(dlanids (English) 06/90 - Tanz.ania Industrial Eneigy Efficiency'lechnical Assistance (Enlglish) 08/90 122/90 m TaEzmania Power l.oss Reduction Vtolnme 1: '1i-alnsrnissionn andI Distribution System 'technical Loss Redoction and( Network Development (En11glishl) 06/98 204A/98 m Tanzania Power loss Reduction Volume 2: Reduction of Non Technical I.osses (English) 06/98 204B/98 'logo Friergy Assessmen1t (English) 06/85 5221-TO m 'logo Wood Recovery in the Nangbeto Lake (Englislh and Fi-renchl) 04/86 055/86 Focus Area Rcgion/Country t . (language availability) t. 3gSSX ,:; R s SUB-SAHARAN AFRICA Togo Power Efficiency Tmproveement (English and French) 12/87 078/87 m Uganda Enelgv Assessmiient (English) 07/83 4453-UG m Uganda Status Report (Enaglish) 08/84 020/84 m Uganda Institutional Review of the Energy Sector (English) 01/85 029/85 m Uganda Energy, Efficiency' in 'Ibbacco Curing Industry (English) 02/86 049/86 m Uganda Fuelwood/Forestiry Feasibility Study (English) 03/86 053/86 * m Uganda Power System1 Efficiency Study (English) 12/88 092/88 m Uganda Energy Efficiencv Improvement in the Brick and Tile Industry (English) 02/89 097/89 m Uganda Tobacco Curing Pilot Project (English) 03/89 UNDP m m Tertninal Report Uganda Energy Assessment (English) 12/96 193/96 Zaire Energy Assessment (English) 05/86 5837-ZR m Zambia Energy Assessment (English) 01/83 4110-ZA Zambia Status Report (English) 08/85 039/85 m Zambia Energy Sector Institutionial Review (English) 11/86 060/86 m Zambia Power Subsector Efficiency Study (English) 02/89 093/88 m Zambia Energy Strategy Stuidv (English) 02/89 094/88 Zambia Urban Iousebold Energy Strategy Study (English) 08/90 121/90 m Ziimbabwe Energy Assessment (English) 06/82 3765-ZIM m Zimbabwe Power System Efficiency Study (Englislh) 06/83 005/83 m Zimbabwe Stat us Report (English) 08/84 019/84 m Zimbabwe Powet Sector Management Assistance Projcct (Englislh) 04/85 034/85 m Zimbabwe Power Sector Management Institution Building (Englishi) 09/89 - m Zimbabwe Petroleum Management Assistance (English) 12/89 109/89 * m Zimbabwe Charcoal Utilization Prefeasibility Study (Englislh) 06/90 119/90 Zimbabwe Integrated Energy Strategy Evaluation (English) 01/92 8768-ZIM Zimbabwe Energy Efficiency Technical Assistance Project: Strategic Framework for a National Energy Efficicncv Improvement Programi (ETnglish) 04/94 m Zimbabwe Capacity Building for the National Energy Efficiency TImprovemelnt Programme (NEEIP) (English) 12/94 - m --a Focus Area Region/Country = 3 (language availability) cn2 g~ ~ ;, 52 ;; Wc,S ,W 0 r EAST ASIA AND PACIFIC Asia Rcgional Pacific Ilouschold and Rural Energy Seminar (U inglish) 11/90 China C'oUnty-Lcvel Rural En'aer-gy Asscssimicits (Frnglish) (5/89 1(1/89 Chilma nlciwoo(d oloestrlv rcinvestilicit Stutd(l (English) 12/89 1(5/89 China Strategic Options for lPower Sector Reformii in Chilia (Eniglish) 07/93 156/93 Chilna E'nergy I fticiency andl Poll itol m Control in 'Iowsilhip and VIillage Enterprise (TVE) 1Idutistryy (Elglish) 11/94 168/94 China Energy for Rural Development in China: Anl Assessment Based on a Joint Chinese/lESMAP Study in Six Counties (English) 06/96 183/96 Fiji Eniergy Assessment (English) 06/83 4462-FTJ Indonesia lncrgy Assessment (English) 11/81 3543-IND Inldoinesia Status Report (English) 09/84 022/84 Indlonesia Power Generation E 'fficiency StLidly (English) 02/86 050/86 ln(lonesia Energy I'fficicrivc in the Brick, 'ile and( l.ime In(dustrics (Fnglish) 04/87 067/87 m Indonesia Diesel Generating Plant Efficiency Stud) ly (English) 12/88 095/88 Tn(lonesia Urhs,n Ir lousclhold Eneirgy Strategy Study (Fnglish) 02/90 107/90 Indonesia Biomass Gasifier Preinvestmnent Sttidy ols. I & I (EInglish) 12/90 124/90 Indonesia Plrospects for Biomilass Power Generation with Em'inphasis on Palmn Oil, Sugar, Rhlhberwood and Plywoo( Resi(dies (E]nglish) 11/94 167/94 Lao P)1R Urban Electr-icity D)emnand Assessment Study (ElIglish) 03/93 154/93 Nlalaysia Sabah Powese Systein lEfficicncy Stud(y (En'aglishl) 03/87 0)68/87 Malaysia Gas Utilization Study (English) 09/91 9645-MA/I Nlyanmiar Energy Assessm1enit (Eniglishi) 06/85 5416-BA Papua Ncw Guinea EInergy Assessment (Englishl) 06/82 3882-PNG Papua New Guinca Status Report (English) 07/83 006/83 Papua New Guinea Energy Strategy Paper (FErnglish) - - Papira New Guinca Institutional Revicw in the Fncrgy Sector (FAglish) 10/84 023/84 Papua New Guinea Power i-ariff Stu(ly (Fnglish) 10/84 024/84 Phil ippintes Commerci al Potential for Powcr P'rodutction froml Agriciilturaal Resi(Lues (English) 1 2/93 157/93 Philippines E nergy Conserv ation Study (IEnglish) 08/94 - Solomoll Islantis E'anergy Assessmelit (Fnglishi) 06/83 4404-SOL Solomono Island(s lEnergy Assessnenit (En'iglishi) 01/92 979-SOL So(uth Pacific Petrole!umIl 'I i arlsport in the Southl Pacific (English) 05/886 - m m 'T'hailandl EInergy Assessmeint (Einglishi) 09/85 5793-111 Thailand Rural Energy Issues and cOptions (English) 09/85 044/85 Thailand Accelerate(d Dissemiination of Improoved Stoves antd Charcoal Kilius (Einglisli) 09/87 079/87 Focus Area Region/Country (language availability) F3 EAST ASIA AND PACIFIC Thailand Northeast Region Village Forestry and WoodLfuels Preinvestment StUdy (English) 02/88 083/88 m m m T'hailand Impact of Lower Oil Prices (English) 08/88 - m m Thailand Coal Development and Utilization Study (Englislh) 10/89 - m m Tonga EFnergy Assessment (English) 06/85 5498-TON m Vanuatu Energy Assessment (Etnglish) 06/85 5577-VA m Vietnam Rural and Ilousehold Energy-Issues and Options (English) 01/94 161/94 m Vietnam Power Sector Reform and Restructuring in Vietnam: Final Report to the Steering Committee (English and V`ictnamese) 09/95 174/95 m Vietnam HouLsehold Energy'Icchnical Assistance: Improved Coal 13riquetting and ComTmnercializcd Dissemintation of I ligher Efficiencv Biomass anDt Coal Stoves (Englislh) 01/96 178/96 m m Western Samoa Energy Assessment (Etnglish) 06/85 5497-WSO m SOUTH ASIA Bangladesh Energy Assessment (Englislh) 10/82 3873-BD m Bangladesh Priority Investmcnt Program (Einglish) 05/83 002/83 m Bangladesh Status Report (English) 04/84 015/84 m Bangladesh Power System Efficiency Study (Englislh) 02/85 031/85 m Bangladesh Small Scale Uses of Gas Prefcasihility Study (English) 12/88 - m India Opportunities for Commercialization of Nonconventiotnal Energy Systems (English) 11/88 091/88 m m India Maharashtra Bagasse Energy Efficiency Project (English) 07/90 120/90 m m India Mini-Hydro Development on Irrigation Danms anid Canal Drops 0ols. 1, II anid III (English) 07/91 139/91 m m Tndia WindFarm Pre-Investment Study (English) 12/92 150/92 m m India Power Sector Reform Seminar (English) 04/94 166/94 m India Environmental Issues in the Power Sector 06/98 205/98 m m Nepal Energy Akssessmenit (English) 08/83 4474-NEP m Nepal Status Report (English) 01/85 028/84 m Nepal Energy Efficienic & Fucl Substitution in Industries (English) 06/93 1 58/93 m Pakistan Hlousehold Energy Assessmenit (English) 05/88 - m m Pakistan Assessment of Photovoltaic Programs, Applications, and Markets (English) 10/89 103/89 m Pakistan National Household E.ner-gy Strvey and Strategy Formulation Study: Project Termiinal Report (Englishi) 03/94 - m ZN Focus Area Region/Country - '= a (language availability) 8 i4 EAST ASIA AND PACIFIC Pakistani Managing the Eknergy 'lransitioln (English) 10/94 - m Pakistan lighting Efficienicy tuipr)venment Program Phase 1: Commercial Buildings Fqive Year Plan (niglish) 10/94 - m Sri Lanka Energy Assessment (English) 05/82 3792-CE Sri Lanka Power System Loss Reduction Study (English) 07/83 007/83 Sri Lanka Status Report (lnglish) 01/84 010/84 Sri Lanka Industrial Energy (Conservation Stundy (English) 03/86 054/86 EUROPE AND CENTRAL, ASIA Bulgaria Natural Gas Policies and(l Issues (Englislh) 10/96 188/96 Central and( Power Sector Reforim in Selecte(d (ountries 07/97 196/97 Elastern Elurope Eastern Eiurope '['he IutLur-e of Natural Gas in Eastertn TEurope (Elnglish) 08/92 149/92 Kazakhstan Natural Gas Investtimeit Stuidy, Volumes 1, 2 & 3 12/97 199/97 Kazakhstan & Opportunities for Renewablc Energy Development 11/97 16855-KAZ Kyrgyzstan Poland E'nergy Sector Rcstr-uctLritig Program Vols. I-V (English) 01/93 153/93 Poland(i Natural Gas Upstrcamil Pricing (E.nglish and Polish) 08/98 206/98 Poland Einelrgy Sector Rcstructuring Program: I'stablishing the Energy Regttlation AutIlority 10/98 208/98 Portugal E,nergy Assessimient (English) 04/84 4824-POC Rornania Natural (Gas Developtment Strategy (English) 12/96 192/96 Turkey V,nergy Assessment (English) 03/83 3877-TU MIDDLF EAST AND NORTH AFRICA Arab Republic Energy Assessitient (Eniglish) 10/96 189/96 of Egypt Morocco Energy Assessmenit (-niglishl and 1Frenlic) 03/84 4157-MOARJ Morocco Status Report (English anld F'encli) 01/86 048/86 Morocco Energy Sector Instituitionala Developmient Study (Vnglish and( French) 07/95 173/95 Morocco Nat oral Gas Pricing Study (French) 10/98 209/98 Syria ETneigy Assessment (English) 05/86 5822-SYR Focus Area Region/Country . (language availability) MIDDLE EAST AND NORTH AFRICA Syria Electric Power Efficiency Studv (Englislh) 09/88 089/88 m Syria Energy Efficiency Improvement in the Cem1ent Sector (English) 04/89 099/89 m Syria Energy Efficiency Improvement inl Lle Fertilizer Sector (English) 06/90 115/90 m Tunisia Fuel Substitution (English and French) 03/90 - Tunisia Power Efficicncv Study (Etnglish and French) 02/92 136/91 m Ttnisia Encrgy ManagemeTnt Strategy in the Residential and Tertiary Scctors (English) 04/92 146/92 m Tunisia Renewable Energy Strategy Study. Volume I (Frenchl) 11/96 1 90A/96 Tunisia Renewable Energy Strategy Study, Volume lT (Frenich) 11/96 190B/96 Ycmen Energy Assessment (English) 12/84 4892-YAR Yemen Energv Investmcnt Priorities (Englislh) 02/87 6376-YAR m Ycmnen Household Encrgy Strategy Stuidy Phase I (English) 03/91 126/91 LATIN AMERICA AND THE CARIBBEAN Latin America & Regional Seminar on Electric Power SVstemr I.oss Reduction in the Caribbean Region Caribbean (English) 07/89 - m Latin America & Elimination of Lcad in Gasoline in Latin Amnerica and the Caribbean Caribbean Region (English and Spanish) 04/97 194/97 * m Latin Am-erica & Elimination of Lead in Gasoliine in Latin Anmerica and the Caribbean Caribbean Region - Status Report (Englislh and Spanish) 12/97 200/97 m Latin Aanerica & Harmonization of Fuels Specifications in Latin Amnerica and the Caribbean Region Caribbean (English and Spanish) 06/98 203/98 m m Bolivia Energy Assessment (English) 04/83 4213-BO m Bolivia National Energy Plan (English) 12/87 - m Bolivia La Paz Private Power Technical Assistance (English) t 1/90 111/90 m Bolivia Prefeasibility Evaluation Rural Electrification and Demand Assessment (English and Spanish) 04/91 129/91 m Bolivia National Energy Plan (Spanish) 08/91 131/91 m Bolivia Private Power Generation and Transmission (English) 01/92 137/91 m Bolivia Natural Gas Distribution: Econoomics and Regulationi (English) (03/92 125/92 m Bolivia Natural Gas Sector Policies and Issues (Englislh and( Spanish) 12/93 164/93 m Bolivia Houselhold Rural Energy Strategy (English and Spanish) 01/94 162/94 m m Bolivia Preparation of Capitalization of the THydrocarbon Sector 12/96 191/96 m Brazil Energy Efficiency & Conservation: Strategic Partnership for Energy Efficiency in Brazil (English) 01/95 170/95 m Brazil Hydro and Thermal Power Sector Study 09/97 197/97 m * m Chile Energy Sector Review (English) 08/88 7129-CH m - 1 Focus Area Region/Country , (language availability) - - 8 LATIN AMERICA AND THIE CARIBBEAN Colombia ETncr gy Strategy apcar (Fonglish) 12/86 - Colombia Power Sector Restructurinig (English) 11/94 169/94 Colombia Energy Efficienicy Report for the (Tommcrcial and Public Sector (Eniglisli) 06/96 184/96 m Costa Rica l.ncrgy Assessment (English andl Spanish) 01/84 4655-CR Costa Rica Recommntndcd ichnical Assistancc Projects (English) 11/84 027/84 Costa Rica lorest Residttcs Utilization Study (E nglish and( Spanish) 02/90 108/90 Dominican RepublicEn ergy Assessment (English) 05/91 8234-DO Ecuador Enalergy Assessment (Spanish) 12/85 5865-EC Ecuador Energy Strategy Phase I (Spanish) 07/88 - m Ecuador Enetgy Strategy (English) 04/91 - Ecuador Plrivate Minihydropower Developmrient Study (English) 11/92 - Ecuiador Energy Pricing Subsidies anl ITnterfuel Substitution (EInglish) 08/94 11798-E(. Ecua(ior Fnergy P'ricing, 'over ty and Social M:itigation (English) 08/94 1283 1 -E(, Guatemala Issues and Options in the Energy Sector (English) 09/93 12160-GU Haiti lEnergy Assessmcnt (Einglish an( Freniclh) 06/82 3672-IIA 11aiti Status Report (English and French) 08/85 041/85 I laiti hlouselhold Energy Strategy (Eniglislh and( 1F'renich) 12/91 143/91 I londuras Energy Assessment (English) 08/87 6476-HO I Ion(luras Petroleumii Supply Management (English) 03/91 128/91 JamaTca Ener-gy Assessmiienit (English) 04/85 5466-JM Jamaica Pctroleutn lrocuremenlt, Refining, and Distribution Study (English) 1 1/86 061/86 Jamaica Encrgy Efficiency Building (ode Phase I (English) 03/88 - U Jamaica Energy Etfficiency Standards ant(I Labels Phase I (English ) 03/88 - m Jamaica Management Informationl System Phase I (English) 03/88 - m m Jamaica (harcoal Pro(luction Project (English) 09/88 090/88 U Jamaica FTD(() Sawmill Residues Utilization Study (Elnglislb) 09/88 088/88 U Jamaica Energy Sector Strategy and Investmenit Planning Std(ly (English) 07/92 135/92 U Mexico Imptroved (I arcoal Production Within Forest Managemncit for the State of Veracruz (English and Spanish) 08/91 138/91 * Mexico Fnerg\ Efficiencv Managemnent iiechnical Assistance to the (:omision Nacional para el Aliorro de Energia (CONAEI) (Englislh) 04/96 180/96 Panaua Power System E ffi-iency Study (Fluglith) 06/83 004/83 U Paragpav Energy Assessment (Englislh) 10/84 5145-PA U Paraguay Recommucndedl 'Ichnical Assistance Projecm s (E.nglish) 09/85 - m Paraguay Startis Report (English and Spanislh) 09/85 043/85 m Peru Energy Assessmuent (English) 01/84 4677-PE m Perul- Status Report (English) 08/85 040/85 m Focus Area Region/Country - (language availability) 4 -c H LATIN AMERICA AND THE CARIBBEAN Peru Proposal for a Stove Dissemination Program in the Sierra (Etnglish and Spanish) 02/87 064/87 Peru Energy Strategy (English and Spaanish) 12/90 - m Peru Studv of Energy Taxation and Liberalization of the lY dIrocarbons Sector (English and Spanish) 120/93 159/93 Saint Lucia Energy Assessment (English) 09/84 5111-SLU St. Vincent and Energy Assessmiient (English) 09/84 5103-STV the Grenadines Trinidad and Energy Assessment (English) 12/85 5930-TR Tobago GLOBAL GLOBAL Energy End Use Efficiency: Research and Strategy (English) 11/89 - m GLOBAL Wonmeni arnd Fnergy-A Resource Goide: The International Network: Policies and Experience (English) 04/90 m GLOBAL Guidelines for Utilitv Customer Management and AMetering (English and Spanish) 07/91 - m GLOBAI\ Assessmcnt of Personal Computer Modcls for Energy Planning in Devcloping Countries (English) 10/91 - m GLOBAL Long-Term Gas Contracts Principles and Applications (English) 02/93 152/93 m GLOBAL Comparative Behavior of Firms Undler Pnblic and Private Ownership (English) 05/93 155/93 GTLOBAL Development of Regional Electric Power Networks (English) 10/94 - m GLOBAL Roundtable on Energy Efficienicy (English) 02/95 171/95 - GLOBAL Assessing Pollution Abatement Policies with a Case Study of Anikara (Englislh) 11/95 177/95 GLOBAL. A Synopsis of the Third Aninual Roundtable on Indepenident Power Projects: Rhetoric and Realitv (English) 08/96 187/96 GLOBAL Rural Energv and Development Roundtable (English) 05/98 202/98 m G LOBAL A Synopsis of the Second Roundtable on Energy Efficiencv: Institutionial and Financial Deliv,ery Mechanisms (English) 09/98 207/98 Photo credits: ASTAE Program, pages 35, 36 and 37. Douglas Barnes, page 34. Henri Bretaudeav, pages 18, 39, 41 and 42. Dominique Lallement, pages 5 and 22. Ren6 Masse, page 25. World Bank, page 1. DIesign by: Mitchell Kuff and Jan Lakey Mitchell & Company Graphic Design Potomac, Maryland I~~~~~~~~~~ ~~~~~~~ S - - * ** * * - *.* * *.. . I ME E~uei