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Pro-Poor Public-Private Partnerships for Rural Energy Services National Feasibility
Parakram Pyakurel [AEPC] and Sarita Gurung [Rural Empowerment Society]
Nepal
REGIONAL TRAINING WORKSHOP ON WIDENING ACCESS TO ENERGY SERVICESTHROUGH PRO-POOR PUBLIC-PRIVATE PARTNERSHIPS
25-27 SEPTEMBER 2013, UNCC, BANGKOK, THAILAND
Outline• Objective of Feasibility Assessment
• Methodology of Assessment
– Review of Shortlisted Sites [from concept note]
– Stakeholder Consultations
– Weight-ages for Site Rankings
• 5Ps: National Feasibility
– Assessment Findings: Key Challenges
– Site Rankings + Next Steps
• Private Sector Solicitation Process
Objective of Feasibility Assessment
• To identify potential sites for project development under 5P business model
• To facilitate private investment in rural areas
• To facilitate a pro-poor business plan development
Methodology of AssessmentReview of Shortlisted Sites [from concept note]
• Concept note had shortlisted 4 sites: Raksirang, Mahadevsthan, Raigaun and Tahanun (Bhirkot)
• All the 4 sites visited - baseline information on socio-economic status and energy use gathered
• Local renewable energy resources and technology identified
• Willingness of local community for project development assessed
Methodology of AssessmentStakeholder Consultations
• The national concept note envisions following stakeholders:
o Local Community
o Private Investor
o Bank
o NGO
o Local government
• Consultations carried out with all stakeholders to identify their concerns
• Consultations with local government bodies such ad DDC and VDC for legal feasibility and facilitation
Methodology of AssessmentWeight-ages for Site rankings
Equal weight-ages have been given to all the key factors
5P Project Sites
5P Project Sites
5Ps: National FeasibilityAssessment Findings: Key Challenges (Raksirang)
• Low business volume because of low electricity demand
• Very low profit to private companies as this village is resided by poor Chepang community who cannot afford to consume high electrical energy
• Difficulty in site accessibility. Vehicles cannot reach the site and 2-3 hours of walk uphill is required.
5Ps: National FeasibilitySite Rankings + Next Steps (Raksirang)
Next Steps:•Preparation of detailed business plan including BOQ and economic assessment•Contract drafting and signing among concerned parties•Project implementation
5Ps: National FeasibilityAssessment Findings: Key Challenges (Bhirkot)
• Some houses already have functional solar home system for electrification
• Finding productive end uses of electricity is challenging if solar mini-grid of low system sizing is installed
5Ps: National FeasibilitySite Rankings + Next Steps (Bhirkot)
Next Steps:•Evaluation against recently found site in Baidi of same district for project execution•Final decision to whether execute project in this site or Baidi
Private Sector Solicitation ProcessPrivate Sector Solicitation Process
• Discussions carried out on Investor Forum (Feb 8, 2013)
• Questionnaire prepared to assess private sector’s concern
• Request for Proposal (RFP) sought from private sector (June 22, 2013)
• Solicitation ongoing to develop business plan
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