35997 Annual Report 2003 Energy Sector Management Assistance Programme Copyright 2004 The International Bank for Reconstruction and Development. The World Bank Group ESMAP 1818 H Street N.W., Washington, D.C. 20433 USA The findings, interpretations and conclusions expressed in this report are entirely those of the authors and should not be attributed in any manner to the World Bank Group, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank Group does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher to the address in the copyright notice above. The World Bank Group and ESMAP encourage dissemination of their work and will normally give permission promptly and, when production is for noncommercial purposes, without asking a fee. To obtain copies of this report you may write directly to ESMAP at the address shown on the back of this report or by sending an electronic message to esmap@worldbank.org. Photo Credits Photographs are part of the World Bank Group Photo Library and its sources. Designed by Original design by Mitchell&Company Graphic Design. This version has been typeset by Circle Graphics. Editorial support Full Circle Communications. Map Design The World Bank Group Cartography Section designed the ESMAP in the World Map. Production and Printing Marjorie Araya and District Creative, Inc. A C C E S S E N E R G Y P O V E R T Y · E N V I R O N M E N T · M A R K E T ESMAP 2003 HIGHLIGHTS · Celebrated 20th anniversary as a joint World Bank-UNDP program · 124 ongoing projects in more than 40 countries, up from 89 five years ago in 1998. · 43 new projects launched with a cumulative budget of US$6.5 million, up from 29 new projects with a cumulative budget US$5.6 million in 2002. · US$30.3 million in total funding of projects · Launched three Calls for Proposals · Average of 38 proposals received in last three Call of Proposals, up from average of 13 in the previous three Calls. · More than 250 organizations signed on to Global Village Energy Partnership's Statement of Principles · Donors' contribution to the Programme totaling US$ 7.2 million · Cycle time for proposal approvals and funding allocations maintained at ten weeks from the announcement of the Call · More than 30 reports published on ESMAP-funded activities · Delivery of nearly 20 workshops, brown bag lunches and conferences around the globe as part of ESMAP's knowledge dissemination strategy Annual Report 2003 TABLE OF CONTENTS TABLE OF CONTENTS Energy Sector Management Assistance Programme TABLE OF CONTENTS ESMAP 2003 Highlights Mission Statement iii Foreword v Acknowledgements vii List of Abbreviations and Acronyms ix Donors and Members of the Consultative Group, Technical Advisory Group, and ESMAP Team in 2003 xiii ESMAP in the World 2003 xiv 1 Leveraging the Infrastructure Action Plan 1 2 Products and Services 5 3 Operational Overview 6 4 Portfolio Overview 11 5 ESMAP Portfolio Highlights and Impacts 15 6 ESMAP Knowledge Dissemination 35 7 Governance and management 39 8 Financial Review 41 Annex 1 Summary Proceedings of the April 28-30, 2003 Joint Donors' Roundtable Meeting for Trust Funded Energy Programs Managed by the World Bank, Berlin, Germany 45 Annex 2 Activities Completed, Launched, and Ongoing in 2003 57 Annex 3 Reports Published in 2003 67 Annual Report 2003 BOXES Box 5.1 Brazil's National Rural Electrification Strategy 16 Box 5.2 Impact of Energy on Women's Lives 18 Box 5.3 Impact of Mining on Women 19 Box 5.4 GVEP: Exchanging Experiences and Building Networks 21 Box 5.5 Looking Ahead in South Asia 22 Box 5.6 The Role of Planning 26 Box 5.7 Electricity Pricing and the Poor 28 Box 5.8 Role of the Private Sector 31 FIGURES Figure 3.1 ESMAP Portfolio at a Glance: Breakdown by Geographic Area 7 Figure 3.2 ESMAP Portfolio at a Glance: Breakdown by Strategic Area 7 Figure 3.3 ESMAP Portfolio at a Glance: By Number of Projects ­ by Geographic Area 7 Figure 3.4 ESMAP Portfolio at a Glance: By Number of Projects - by Strategic Area 7 Figure 3.5 Evolution of ESMAP Portfolio 1998-2003: Strategic Area-- By Number of Projects. 8 Figure 3.6 Evolution of ESMAP Portfolio 1998-2003: Strategic Area-- By Value of ESMAP Funding 8 Figure 3.7 Regional Distribution of Portfolio by Number of Projects 9 Figure 3.8 Regional Distribution of Portfolio by Value of ESMAP Funding 9 Figure 4.1 Success Rates of Proposals by Region 12 Figure 4.2 ESMAP Proposal-to Allocation Cycle 13 Figure 8.1 ESMAP Receipts 2001-2003 42 Figure A.1 Diagram of ETFPs' Accountability to Sector Board 48 TABLES Table 4.1 Overview of Portfolio Changes in 2003 11 Table 8.1 ESMAP Receipts 2001-2003 41 Table 8.2 Core/Thematic ESMAP Donor Contributions 2001-2003 42 Table 8.3 Receipts by Type of Funding 42 Table 8.4 ESMAP Expenditures 2001-2003 43 Energy Sector Management Assistance Programme ESMAP promotes the role of energy in poverty reduction and economic growth in an environmentally responsible man- ner. Its work applies to low-income, emerging, and transition economies and contributes to the achievement of inter- nationally agreed development goals. ESMAP strives to expand the global knowledge base for addressing energy issues. Annual Report 2003 MISSION STATEMENT MISSION STATEMENT Energy Sector Management Assistance Programme The Energy Sector Management Assistance Programme The Energy Sector Management Assistance Pro- gramme (ESMAP) is a global technical assistance programme sponsored by a group of donors, in- cluding The World Bank and the United Nations Development Programme (UNDP), and managed by The World Bank. ESMAP provides policy advice and other techni- cal assistance to governments, public institutions, and private businesses. It focuses on three strate- gic areas: the development of energy markets; the promotion of environmentally sustainable energy production and uses; and increased access to reli- able, efficient and affordable energy services by un-served or underserved populations. ESMAP concentrates on energy related issues not yet mainstreamed in the operations of bilateral or multilateral development institutions, and on private sector energy issues. ESMAP is a global knowledge partnership that involves local and international public institutions, NGOs, and busi- nesses in the formulation and implementation of knowledge activities. Through studies, pilot projects, and training, ESMAP strives to expand the global knowledge base for addressing energy issues to the benefit of developing and transition economies. Annual Report 2003 iii FOREWORD FOREWORD Energy Sector Management Assistance Programme ESMAP is dedicated to helping policymakers, the private sector, nongovernmental organizations, donor partners, and others provide environmentally and socially sustainable energy services as a means to reduce poverty and increase economic growth. As explained in this 2003 Annual Report, ESMAP is in the midst of fulfilling a three-year business plan that focuses on three priority areas critical to meeting this goal: increased access to reliable, efficient, and affordable energy services by the un-served and under-served; promotion of environmentally sustainable energy production and uses; and development of efficient energy markets. ESMAP marked its 20th anniversary in 2003. Since it was established under the joint sponsorship of The World Bank and the United Nations Development Programme in 1983, it has operated in more than 100 different countries on energy-related issues ranging from strengthening market reform efforts to urban air quality to rural electrification. ESMAP's strategy and Business Plan fully supports the imple- mentation of the Infrastructure Action Plan adopted by the Board of Executive Directors of the World Bank Group in July 2003. The Plan highlights the linkages between infrastructure and the Millennium Development Goals. Through its studies, workshops, training, and technical assistance activities described in this report, ESMAP seeks to generate and share knowledge that will lead to investments in energy services, improved living conditions for people in rural, peri-urban, and urban communities in developing coun- tries and transition economies around the world. ESMAP has taken a leading role in increasing the visibility within the Bank and within the countries of the interrelationship between energy and poverty. For example, in 2003, a series of Energy-Poverty Workshops in Latin America, the Asian subcontinent, and in Africa, brought together policymakers from different countries and different sectors to discuss steps they can take to scale-up the delivery and availability of modern, cost-efficient, and environmentally sustainable energy services for their popu- lations, and to sustain economic growth. These events have also highlighted the critical role of energy in sustainable development and in achieving the delivery of better health care, education, and other services. This annual report provides an overview of ESMAP activities as well as spotlights representative pro- jects from the portfolio that support poverty alleviation, environmental sustainability, and strength- ened markets. It also explains the governance and management of ESMAP and provides a financial review of how donor funds have been disbursed in the past year. This annual report is a tribute to the dedication and hard work of those who have contributed to the program implementation and financing in 2003. We are also extremely grateful to the Technical Advi- sory Group members for their dedication, hard work, and useful suggestions, and in particular, to Mr. Andrew Barnett, who has assumed the responsibility during the year of Moderator to the Technical Advisory Group. Jamal Saghir Director, Energy and Water Chair, Energy and Mining Sector Board. Energy and Water Department Infrastructure Vice Presidency Annual Report 2003 v ACKNOWLEDGEMENTS ACKNOWLEDGEMENTS Energy Sector Management Assistance Programme This report was written by a team of World Bank Group professionals. We wish to thank the contributors for their time and expertise in preparing this report. They include Marjorie Araya, Amarquaye Armar, Robert Bacon, Douglas Barnes, Anna Bjerde, Anil Cabraal, Maureen Cuffley, Laurent Durix, Nyra Guice, Mudassar Imran, Sarah Keener, Ghislaine Kieffer, Ranjit Lamech, Takahashi Masaki, Luiz Maurer, Kilian Reiche, Kazim Saeed, Maria Shkaratan, Selina Shum, John Strongman, Gary Stuggins, Robert Taylor, Bernard Tenenbaum, Clemencia Torres, Vishweshwaran Ramanathan and Xiaodong Wang. We also wish to acknowledge the contribution of Paula Tarnapol Whitacre as chief editor for this report. Annual Report 2003 vii LIST OF ABBREVIATIONS AND ACRONYMS LIST OF ABBREVIATIONS AND ACRONYMS Energy Sector Management Assistance Programme AFFREI Africa Rural and Renewable Energy Initiative ADB Asian Development Bank AFR Sub-Saharan Africa Region AFREPEN African Energy Policy Research Network ALGAS Asia Least-cost Greenhouse Gas Abatement Strategy ALRI Acute Lower Respiratory Infection AP Andhra Pradesh (India) ARPEL Asistencia Recíproca Petrolera Empresarial Latinoamericana ASTAE Asia Alternative Energy Program BNPP Bank-Netherlands Partnership Program CAI-SSA Clean Air Initiative in Sub-Saharan Africa CEE Central and Eastern Europe CG Consultative Group CIDOB Confederation of Indigenous Peoples of Bolivia CIDA Canadian International Development Agency CNG Compressed Natural Gas COICA Coordinadora de Organizaciones Indígenas de la Cuenca Amazónica CONFENIAE Confederation of the Nationalities Indigenous to the Amazon of Ecuador CPTS Centro de Promoción de Tecnologías Sostenibles CRESP China Renewable Energy Scale-up Program DANIDA Danish International Development Assistance DFI Development Finance Institution DFID Department for International Development, UK E7 Organization of nine leading electric utilities from G7 countries EAP East Asia and Pacific Region ECA Europe and Central Asia Region EDF European Development Fund EER Energy and Environment Review ENDA Environment and Development Action ESMAP Energy Sector Management Assistance Programme ETFP Energy Trust Funded Programs FFEM Fonds Français pour l'Environnement Mondial FREE Romanian Energy Efficiency Fund FSU Former Soviet Union FUNDA-PRO La Fundación para la Producción GDP Gross Domestic Product GEF Global Environment Facility GVEP Global Village Energy Partnership IADB Inter-American Development Bank IAP Indoor Air Pollution ICT Information and Communication Technologies IFC International Finance Corporation ILO International Labour Organization IPCT Indigenous Peoples' Communical Territories IPEICA International Petroleum Industry Conservation Association IZDIHAR Association des Opérateurs Economiques de la Zone Industrielle de Sidi Bernoussi Zenata Annual Report 2003 ix KfW Kreditanstalt für Wiederaufbau (German Development Bank) KITE Kumasi Institute of Technology and Environment kW Kilowatt kWh Kilowatt-hour LCR Latin America and the Caribbean Region LG Leaded Gasoline LPG Liquefied Petroleum Gas M&T Monitoring and Targeting MDGs Millennium Development Goals MENA Middle East and North Africa Region NBP National Biomass Program NEPAD New Economic Partnership for Africa NFFO Non-Fossil Fuel Obligation NGOs Non-Governmental Organizations NOVACON Novo Conceito em Servico Publico NREL National Renewable Energy Laboratory (United States of America) NTF-PSI Norwegian Trust Fund for Private Sector and Infrastructure ODA Office of Development Assistance OED Operations Evaluation Department, The World Bank OLADE Organización Latinoamerica de Energía PERZA Proyecto de Electrificación Rural en Zonas Aisladas (Off-Grid Rural Electrification Project) PV Photovoltaic REACH Renewable Energy, Energy Efficiency and Climate Change REAP Renewable Energy Action Plan RIC Rural Information Center RPTES Regional Program for the Traditional Energy Sector SAR South Asia Region SANEATINS A joint Venture Water Utility for the state of Tocatins in Brazil SHS Solar Home System TAG Technical Advisory Group of ESMAP TCA Two Control Zone TFESSD Trust Fund for Environmentally and Socially Sustainable Development ULG Unleaded Gasoline UN United Nations UNF United Nations Foundation UNDP United Nations Development Programme UNEP United Nations Environment Programme US United States of America USAID United States Agency for International Development WEHAB Water, Energy, Health, Agriculture, and Biodiversity WHO World Health Organization WSSD World Summit on Sustainable Development x Energy Sector Management Assistance Programme Annual Report 2003 xi 2003 DONORS AND MEMBERS OF THE CONSULTATIVE GROUP, TECHNICAL ADVISORY GROUP, AND ESMAP TEAM IN 2003 Energy Sector Management Assistance Programme CONSULTATIVE GROUP CHAIR OF THE CONSULTATIVE GROUP Nemat Talat Shafik BELGIUM Jamal Saghir, Acting Chair General Administration for Development Cooperation CANADA MEMBERS AT LARGE OF THE Canadian International Development Agency CONSULTATIVE GROUP DENMARK Rufino Bomasang, Philippines Ministry of Foreign Affairs Ketane Sithole, Botswana FINLAND TECHNICAL ADVISORY GROUP Ministry of Foreign Affairs Alfredo Mirkin FRANCE Andrew Barnett Ministry of Foreign Affairs Jan Moen Jyoti Parikh GERMANY Youba Sokona Bundesministerium für Wirtschaftliche Zusammenarbeit und Entwicklung ESMAP MANAGEMENT AND ADMINISTRATIVE TEAM NORWAY Royal Ministry of Foreign Affairs Dominique Lallement, Manager Marjorie Araya SWEDEN Maureen Cuffley Swedish International Development Cooperation Laurent Durix Agency Matthew Gardner (left Dec. 1, 2003) Muthoni Gikonyo (joined Dec. 1, 2003) SWITZERLAND Nyra Guice State Secretariat for Economic Affairs Katharine Gratwick (left Nov. 19, 2003) Ghislaine Kieffer THE NETHERLANDS Josefina Regino-Suarez (left Dec. 15, 2003) Ministry of Foreign Affairs, Climate, Energy and Kazim Saeed Environment Technology Division (DML/KM) Xiaodong Wang UNITED KINGDOM REPRESENTATIVES FROM Department for International Development CO-SPONSORING ORGANIZATIONS UNITED NATIONS FOUNDATION Alvaro Umana (UNDP) Susan McDade (UNDP) CO-SPONSORING ORGANIZATIONS Minoru Takada (UNDP) THE WORLD BANK GROUP UNITED NATIONS DEVELOPMENT PROGRAMME Annual Report 2003 xiii 2003 ESMAP IN THE WORLD Energy Sector Management Assistance Programme Annual Report 2003 xv LEVERAGING THE INFRASTRUCTURE ACTION PLAN 1 LEVERAGING THE INFRASTRUCTURE ACTION PLAN Energy Sector Management Assistance Programme The year 2003 was the opportunity for ESMAP to client countries. This is for instance the case of support the development and early implementation Brazil, where ESMAP supported the preparation of the Infrastructure Action Plan (IAP), which the of an innovative rural electrification strategy Board of Directors of the World Bank Group aligned with the MDGs which has been adopted approved on July 8, 2003. The IAP evolved as the by the new government to develop investment logical implementation tool of the renewed call for programs for which the Government has now investments in infrastructure raised at the World requested significant financing from the World Summit on Sustainable Development (WSSD) in Bank and other financial institutions. With these 2002 as a result of which infrastructure services programs, Brazil aims to complete servicing the have been recognized as essential to achieving the 2.5 million un-electrified households by 2010, Millennium Development Goals. As stated in the including in remote areas, both through grid and document, there was "an increased consensus on off-grid based services. Another example is the the part of clients, the Board and Management that support provided to Yemen to identify the prior- the Bank Group needs to increase its engagement ity energy needs to be addressed through the in infrastructure in light of growing investment financing of a Social Fund. needs, withdrawal of private investors, and grow- ing recognition that the MDGs can only be met in In order to revitalize the scaling-up of energy ser- a multi-sectoral way". This was music to ESMAP's vices, through new multi-sector approaches and ears, as it has strived over the past five years, in private sector/community based delivery mech- particular, to analyze, document, and promote the anisms, ESMAP has continued providing signifi- clear linkages between the availability of energy cant support to the implementation of the Global services, poverty reduction, and economic growth. Village Energy Partnership, launched at WSSD. This is also fully consistent with the Energy Bus- Building up on the design of the Addis Ababa iness Renewal Strategy (EBRS) approved by the regional workshop on Energy and Poverty Reduc- Board in May 2001 which aims to promote energy tion: a multi-sectoral approach of October 2002 solutions for economic growth and poverty reduc- which reached out to 8 African countries, in 2003 tion. The challenge as always is in implementation. ESMAP partnered with UNDP and other multilat- ESMAP has therefore fully defined its priorities eral and bilateral agencies and NGOs to conduct with the orientations given by WSSD and the EBRS, 6 more workshops, both regional and national, while exercising selectivity for greater efficacy. In benefiting a total of 31 countries, in Africa, Latin line with its mandate, ESMAP has been well-placed America, and Asia. The merits of these workshops to respond to the demands of the Infrastructure include building-up first hand experience for Action Plan. More specifically, its 2002-2004 Busi- multi-sector multi-stakeholder country dele- ness Plan contained the essential components to gations to work together in identifying energy support two key elements of the IAP: 1) help the solutions and investment priorities in energy ser- Bank and other partners introduce innovation in vices in order to meet the Millennium Develop- their business activities to meet client coun-try ment Goals and to build a schematic action-plan demand for infrastructure service and 2) strengthen that can feed into the country PRSP. More than innovative approaches to develop sector knowl- 15 countries are today in the process of pursuing edge, including measuring results and impacts. the work initiated in these workshops, either through the implementation of new investment RESPONDING TO CLIENT COUNTRY programs (Bolivia, Mali), or the preparation of new DEMAND FOR INFRASTRUCTURE ones (e.g. Cameroon, Guatemala, Honduras, Mex- ico, Senegal, Zambia). In 2003, ESMAP was able to bring to fruition the results of country strategies or initiate new ones Broadening the menu of options for public and which have led to new major engagements with private sector infrastructure provision has also Annual Report 2003 1 been part of ESMAP achievements in 2003. In analysis of the affordability of energy service cooperation with the Global Partnership on Out- options and the design of subsidies. ESMAP has put Based Aid (GPOBA), ESMAP has undertaken now taken the lead in designing energy modules some innovative projects aiming at finding ways for cost effective base-line surveys--be they of benefiting from both the technical expertise implemented with World Bank support such as and financial resources from the private sector, the Living Standards Measurement Surveys particularly the local private sector. Technical (LSMS), Household Health Surveys by WHO, or Assistance was provided to the Philippines to other survey instruments. ESMAP's methodolog- analyze the regulatory framework for rural elec- ical work to monitor the results and measure the trification. As a result, new options have been impact of energy services on poverty reduction is designed in terms of regulatory methodology for increasingly mainstreamed through Bank lending rural electrification, Investment Management operations. It is also being disseminated to other Contracts, and Energy Services Contracts in order organizations such as the UNDP-Millennium to bring private investment and management into Development Goals Initiative, and the EUEI-GVEP electricity cooperatives and to provide electricity Monitoring and Evaluation Initiative. These are to areas outside their coverage. Under the um- essential tools for all development partners to be brella of the Global Village Energy Partnership, able to account for the results and impacts of their various consultations with private developers, activities. entrepreneurs, and operators were held to identify success stories as well as bottlenecks for them to BEYOND ESMAP'S 2002-2004 further expand their activities. The results of these BUSINESS PLAN consultations have been published and are now being used to design new solutions. One more year is left to complete the current ESMAP Business Plan. ESMAP will therefore be STRENGTHENING COUNTRY-LEVEL challenged, in 2004, to again look at the next SECTOR KNOWLEDGE AND 3-5 year horizon. Even though major efforts have MEASURING RESULTS AND IMPACTS been deployed since WSSD by governments and other development partners to re-engage very When ESMAP was first established, the Country proactively in energy, the energy world of devel- Energy Assessment was its main line of business oping countries continues to experience a serious and made its reputation. Although the overall crisis. The annual rate of increase in the avail- demand for this product has declined as the coun- ability of modern energy services is growing tries developed their own sector analytical capa- globally very slowly, even declining in the bilities, client countries continue to request regions subject to high demographic pressure. ESMAP for supporting the development of their Public sector funding is increasing minimally as knowledge base either at the sub-sector level, compared to needs and private sector funding such as the analysis of opportunities and options continues to be deterred by the high perceived for developing renewable energy, as was done for risks associated to emerging markets. The present Mexico, or to learn from the experience from geopolitical uncertainties and high costs in the other countries, such as the series of seminars in hydro-carbon markets are increasing the vulner- Gabon and Nigeria on Management of Revenue ability of countries presently relying on imports from hydrocarbons. for their primary energy resource needs. Further- more, industrialized countries and fast growing A key area for ESMAP has been to help document economies in Asia are in the front line to secure across a large number of countries the cost and primary resources, further increasing the risk of sources of energy for the poorest segments of the the poorest countries to be left behind. Against population, which has major implications in the this background of a significant energy crisis, 2 Energy Sector Management Assistance Programme four sets of issues are developed below to stimu- how can resources be `set aside' to enable coun- late the debate: tries presently lagging behind to have also their chance to develop their energy systems to · Energy security: How to secure that users ensure the growth of their economies and the "climb up" the energy ladder with positive improvement of their living standards? How social economic gains? How to secure more can developing countries learn more from the resilient and reliable energy, with a sufficiently experience of industrialized countries? In what diversified resource base, through a market- kind of R & D should they invest? How to based approach, including through power resolve the enormous disparities within coun- trade? Answers to these questions lead to tries, and provide services to the rural areas another set of questions, ranging from the under the mounting pressure of urbanization? potential for increasing regional power trade, to · Building up Human Capital: On the one hand, expanding the contribution of competitive human energy is the most important source of renewable energy, including medium to large energy in developing countries, on the other scale hydropower and biomass or substituting hand, few countries have invested systemati- biomass with liquid fuels. cally either in technologies which can increase · Financing: Resilience is also linked to financ- the basic productivity of their human energy, or ing availability, therefore leading to the ques- in building up their human capital for formu- tion of how to secure financing to sustain both lating policies, managing institutions, adapting higher levels of domestic investments and technologies, and providing services. What imports? How to mobilize effectively both pub- should be the priorities and implementation lic and private capital? How to build effective mechanisms to accelerate the development of public-private partnerships? How to create a human capital for a more performing energy competitive domestic private sector in develop- sector? ing countries, with commensurate strength to industrialized countries' private companies, in In preparing its next business plan, ESMAP pro- terms of both managerial, technical, and finan- poses to engage in wide consultations on these cial competence, including in the hydro-carbon and other issues both with developing country sectors? partners, donors, NGOs and other energy sector · Distributing Energy Resources and Services: stakeholders so that it will be better positioned to How to resolve the enormous disparities provide the intellectual leadership, innovation, amongst countries? Given the current con- knowledge, and operationalization support that is sumption trends in industrialized countries, in its mandate. Annual Report 2003 3 PRODUCTS AND SERVICES 2 PRODUCTS AND SERVICES Energy Sector Management Assistance Programme ESMAP's mandate has evolved over time to meet stream (pre-investment) on issues that have a the changing needs of its clients. ESMAP has clear potential for key policy formulation and operated in over 100 countries through over 520 innovative energy investment, and (2) down- activities covering a broad range of energy issues. stream (ex post) through the evaluation and dis- At ESMAP's inception in the early 1980s, these tillation of emerging best practice, followed by activities were almost exclusively Country Energy aggressive knowledge dissemination. Assessments that served to fill the knowledge gap on the energy demand-supply balance in specific countries, and provide options to address priority ESMAP's Knowledge Dissemination Instru- energy issues in an environment of high energy ments include: price volatility. · Printed publications, including activity final ESMAP provides technical assistance which helps reports and a Technical Paper series design and build consensus on policies for the · Two-pagers: Highlights from ESMAP Projects sustainable development of energy services. This · The ESMAP Annual Report technical assistance is directed to a wide-range of · Publications jointly published with other stakeholders: governments, NGOs, public and pri- organizations vate institutions in developing and transition · Electronic downloadable publications at economies. http://www.worldbank.org/esmap · Publications stored in searchable CD ROMs · International or regional conferences and ESMAP's Technical Assistance, Strategic roundtables Advice, Pre-investment Work, Lessons Learned, · Training: Regional or national workshops and Best Practice include: and seminars · Brown Bag Lunch seminar series in The · Specific Studies World Bank Group · Advisory Services · Pilot Projects ESMAP maintains these main categories of prod- ESMAP's interventions are positioned at two ucts and services in order to deliver its 2002-2004 points in the policy and project cycle: (1) up- Business Plan. Annual Report 2003 5 OPERATIONAL OVERVIEW 3 OPERATIONAL OVERVIEW Energy Sector Management Assistance Programme ESMAP PORTFOLIO AT A GLANCE AS OF DECEMBER 31, 2003 Figure 3.1 Breakdown by Geographic Area Figure 3.3 Number of Projects (as a % US$ Value) (by Geographic Area) 13.6% 13.8% East Asia and Pacific East Asia and Pacific 7.8% 73% Europe and Central Asia Europe and Central Asia 21.2% 21.1% Global Global 30.5% 22.0% Latin America and Caribbean Latin America and Caribbean 3.8% 4.1% Middle East and North Africa Middle East and North Africa 4.4% 7.3% South Asia South Asia 18.7% 24.4% Africa Africa Total Value: $30.3m Total Number: 124 Figure 3.2 Breakdown by Strategic Area Figure 3.4 Number of Projects (as a % US$ Value) (by Strategic Area) 53.4% 39.0% Energy and Environment Energy and Environment 23.1% 28.5% Market Development Market Development 4.2% 7.3% Cross-Cutting Cross-Cutting 19.2% 25.2% Energy Access Energy Access Total Value: $30.3m Total Number: 124 Annual Report 2003 7 Figure 3.5 Evolution of Portfolio by Strategic Area 1998-2003 By Number of Projects 140 120 100 Cross-Cutting 80 Environment Market 60 Access Projects 40 of 20 Number 0 End 1998 End 1999 End 2000 End 2001 End 2002 End 2003 90 Projects 107 Projects 116 Projects 114 Projects 110 Projects 124 Projects Figure 3.6 Evolution of Portfolio by Strategic Area 1998-2003 By Value of ESMAP Funding 35 30 25 Cross-Cutting Environment 20 Market 15 Access Dollars US 10 of 5 Millions 0 End 1998 End 1999 End 2000 End 2001 End 2002 End 2003 Total Value: Total Value: Total Value: Total Value: Total Value: Total Value: $21.7m $27.7m $28m $26.3m $28.3m $30.3m 8 Energy Sector Management Assistance Programme Figure 3.7 Regional Distribution of Portfolio 1998-2003 By Number of Projects 140 120 100 Latin America & Caribbean 80 Middle East & North Africa Europe & Central Asia 60 South Asia East Asia & Pacific Projects 40 of Africa 20 Global Number 0 End 1998 End 1999 End 2000 End 2001 End 2002 End 2003 90 Projects 107 Projects 114 Projects 110 Projects 110 Projects 124 Projects Figure 3.8 Regional Distribution of Portfolio 1998-2003 By Value of ESMAP Funding 35 30 25 Latin America & Caribbean 20 Middle East & North Africa Europe & Central Asia 15 South Asia East Asia & Pacific Dollars 10 of Africa 5 Global Millions 0 End 1998 End 1999 End 2000 End 2001 End 2002 End 2003 Total Value: Total Value: Total Value: Total Value: Total Value: Total Value: $21.7m $27.7m $28m $26.3m $28.3m $30.3m Annual Report 2003 9 PORTFOLIO OVERVIEW 4 PORTFOLIO OVERVIEW Energy Sector Management Assistance Programme During 2003, the ESMAP portfolio grew both by amount of funding and number of projects. Proj- dollar value and by number. The value of the ects in LAC continue to constitute a quarter of the portfolio rose from US$28.3 million at year-end portfolio by number of projects and a third by 2002 to US$30.3 million at the end of 2003, as value. It remained the largest proportion in the 44 new projects worth more than US$5.8 mil- portfolio. lion were launched. Twenty-two projects worth US$3.4 million left the portfolio as they were Africa went up by around 15% by both value and brought to financial closure during 2003. The number. The region represents 24.4 percent of the value of the portfolio at the end of 2003 includes total number of projects, and 18.7 percent of total two major projects in Bolivia (representing nearly funding. Projects in MENA also increased signif- US$3.9 million), which will leave the portfolio in icantly, reflecting that this region is beginning to early 2004 as their final reports are published. The leverage ESMAP resources. In 2002, MENA pro- resulting portfolio profile will represent an jects represented less than 2 percent of the total, increase in the number of the projects, but a and more than doubled to 4.1 percent in 2003. decrease in the overall value of the portfolio. The funding level of the average ESMAP activity will ESMAP's ECA portfolio went down by number be US$216,000, compared to US$257,000 at the and value. It now represents 7.3 percent of end of 2002. This is the result of more fast-track the total number of projects and 7.8 percent of activities (of less than US$50,000) introduced into funding. the portfolio during 2003 as ESMAP responded to clients' demand for funding available for just-in- Among the strategic priorities of ESMAP: time technical assistance activities. The table below provides an overview of changes · The environment portfolio grew the most in to the portfolio in 2003. 2003 although more in terms of value than by number of projects. It represents more than PORTFOLIO PROFILE 40 percent of the portfolio by number and more than half the portfolio by value. The renewable The graphs on the previous pages indicate, the energy, energy efficiency, and indoor air pollu- geographical distribution of the portfolio by tion business lines grew the most. While look- ing at this growth in ESMAP's environment portfolio, it is important to bear in mind that Table 4.1 Overview of Changes in two Bolivia projects worth US$3.9 million that Portfolio 2003 are near closure are included in these figures. Number As these projects close in early 2004, the Ongoing projects ESMAP portfolio will resume a balance among on January 1, 2003 110 its three strategic areas. Completed projects yet to be · ESMAP's activities in the access/energy poverty closed, as of January 1, 2003 28 portfolio reduced slightly by value and number. New projects launched But ESMAP's most high profile activities during during 2003 44 2003 were in this sub-portfolio, particularly Projects closed during 2003 (22) under the Global Village Energy Partnership Projects withdrawn during 2003 (1) (GVEP) business line. Completed projects yet to be · Market development represented 28.5 percent closed, as of December 31, 2003 (35) of total projects and 23.1 percent of total fund- Portfolio as of ing, which represents a decline in proportion December 31, 2003 124 from the previous year. Annual Report 2003 11 Figure 4.1 Success Rate of Proposals by Region 80 70 60 50 approved 40 Oct 1998 ­ Mar 2002 Oct 2002 & Mar 2003 30 proposals 20 of 10 Percent 0 ECA LCR EAP SAR GLB MNA AFR Total The increase in the portfolio from the end of 2002 between submission of a proposal, approval, and to 2003 (from US$28.3 million to US$30.3 mil- the first allocation of funds. That number has been lion) reflects a higher number of total proposals reduced to 10 weeks--less than half--with a further received, a higher success rate in these proposals reduction of between 8 and 10 weeks in the offing. qualifying for funding, and more efficient proce- dures in reviewing proposals. The ESMAP proposal-to-allocation cycle now lasts half as long because of: Interest in ESMAP collaboration has increased greatly. During the last three Call for Proposals, · Much closer follow-up of every proposal an average of 38 proposals were received per call · Strict adherence to announced schedule compared to 13 in the preceding three calls. · More systematic interface with donors · Introduction of a Fast-Track Window for proj- Since October 2002 the cycle time for processing ects <$50,000. Only a two-page concept note proposals has been reduced from 6 months to required and the entire procurement process is 10 weeks. quicker. In addition, as task managers became more The Fast-Track Window Progress was introduced engaged in the proposal process, more complete in 2002 and made use throughout 2003 on proposals--and higher approval rates--resulted. a rolling basis. Since announcement of the The increase in projects in Africa, MENA, and in Window, 29 fast-track activities have entered global projects, as shown in the chart below, illus- portfolio trates how this increase translates into a broader reaching portfolio. Most were just-in-time requests for knowledge transactions (such as, dissemination seminars and STREAMLINING THE ESMAP PROCESS workshops) or specific studies needed to help pol- icymakers with immediate decisions. Ten have ESMAP conducted an analysis of the 57 proposals already concluded, including a revenue manage- approved between 1998 and 2002. As the chart ment seminar in Chad and an analysis of Brazil's shows, an average of six months used to elapse power rationing system. 12 Energy Sector Management Assistance Programme Figure 4.2 ESMAP Proposal to Allocation Cycle P A S T Average: 197 days (6 months) Proposal Average Final approval Average ESMAP makes submission 137 by ESMAP 60 first allocation deadline C U R R E N T 10 weeks Proposal Final approval ESMAP makes submission 60 10 by ESMAP first allocation deadline Annual Report 2003 13 ESMAP PORTFOLIO HIGHLIGHTS AND IMPACTS 5 ESMAP PORTFOLIO HIGHLIGHTS AND IMPACTS Energy Sector Management Assistance Programme ESMAP funds contribute to developing energy · Rural Energy/Electrification: Providing services solutions on a country or regional level. Often to those without modern energy services part of a larger project or study, ESMAP activities · Gender: Empowering Women in Energy Practice in 2003 provided critical household-level data in · The Global Village Energy Partnership. Ghana and India; presented the implications of various environmental policy options in Turkey; Rural Energy/Electrification: Providing and brought together key stakeholders in Brazil, services to those without modern energy among other efforts. ESMAP targets its support in services three, overlapping areas: overcoming the chal- lenges of increasing access to modern energy ser- Although electricity and other services have vices, improving the environmental sustainability become more available in rural areas in the last of these services, and developing markets that decade, millions of households remain without it. can provide these services in a cost-effective and Often, the per-unit cost of obtaining energy equitable manner. Through studies, pilot projects, through batteries or liquefied petroleum gas rep- conference, and other activities described below, resents a disproportionately high burden to low- ESMAP has sought to enrich the global knowl- income households. In recent years, the need to edge base on these issues. extend access has occurred in many countries against a backdrop of sector reform. New models This section presents a sampling of ESMAP- have evolved to ensure that the private sector continue (or initiate) these services to locations funded activities that are at different stages of that are less commercially viable. New opportuni- completion. In many, if not most cases, work ties are emerging, particularly for smaller com- funded in a specific country or region has broader panies or locally based organizations, to fill an applicability. important need. ACCESS: HARNESSING MODERN In the projects described below, ESMAP support ENERGY TO REDUCE POVERTY has advanced knowledge on such issues as: The Millennium Development Goals, the 2002 · Making services available to remote communi- World Summit on Sustainable Development, and ties when these small-scale operations do not other international initiatives have helped crys- appear commercially attractive; tallize a global commitment to alleviate poverty. · Developing a national rural electrification strat- Access to modern energy services will signifi- egy that aims for universal access at a given cantly assist in meeting this commitment. Al- point in the future; though progress has been made, the needs remain · Understanding how off-grid services are great and still unfulfilled. At least 1.6 billion affected by different countries' regulatory people worldwide consume no electricity at all; in frameworks and how to keep these services Sub-Saharan Africa, less than 10 percent have operational. access to electricity. Cooking and heating with wood and other biomass materials requires up to In the Philippines, the Rural Electrification Regu- several hours each day to collect fuel. Because lation Framework project is designed to support that task falls disproportionately on women and the government's strategy to achieve full elec- children, time is taken away from income- trification as it opens the market to the private producing activities, education, or leisure. sector. The government has stated that it wants to achieve full electrification of the districts During 2003, ESMAP's efforts to increase access (Baranguay) by 2006 and full electrification of to modern energy services included three areas: households by 2017. About 30 million people live Annual Report 2003 15 in homes without a modern energy connection. menting output-based approaches to small-scale The Electricity Regulatory Commission had asked power system development. the Department of Energy to propose a regulatory framework and a means to make the electricity Likewise, the Brazil Rural Electrification Strategy cooperatives financially viable. Thus, the ESMAP provided recommendations to substantially ex- project is contributing toward developing a pand electric services to the poor in rural areas, framework for private sector participation in the using efficient technologies (such as off-grid management of electricity cooperatives as well as energy solutions for remote areas to meet local regulatory framework that incorporates some demand patterns in a more flexible way) and form of competitively awarded, output-based innovative public-private partnerships. An initial subsidies or tariffs, while also providing the pre- draft was discussed at a stakeholder workshop, dictability and transparency required by in- then revised and shared with the government, vestors. The proposed approach is to define donors, and a variety of key stakeholders (See outputs (such as connections and level of service Box 5.1). in the case of the new isolated systems) and a minimal tariff, commit subsidy funds payable on Building on the experience in Brazil in rural elec- achieving those outputs, and use that cash flow trification, as well as in Argentina, Bolivia, and component, backed by a credible regulatory Nicaragua, ESMAP is also funding a comparative framework, to leverage private sector invest- assessment of regulations for servicing the poor ments. Moreover, the framework is useful to other entitled Regulatory Issues of Off-Grid Energy Ser- countries that are considering or already imple- vice Delivery as Part of Rural Electrification Box 5.1 Brazil's National Rural Electrification Strategy The new Government of Brazil has recently declared universal access to electricity services as a key element of its poverty alleviation strategy. Although significant progress in rural electrifica- tion was made over the last decade (more than 600,000 users connected in the past three years), past efforts have largely focused on the relatively easier-to-reach users and on traditional grid extension. The ambitious new national program sets concrete targets for all distribution compa- nies, aiming at universal access well before 2010 by connectible about 2.5 million additional households. The ESMAP-funded Background Study for a National Rural Electrification Strategy analyzed rural electrification issues and made 15 recommendations that would facilitate the government meet- ing its goals in an efficient and sustainable way, several of which have been adopted. A stake- holder workshop brought together 60 high-level stakeholders to identify and discuss barriers to rural electrification and options to overcome them. The ESMAP study was coordinated closely with the Brazilian government during all stages. Draft versions of the study have been used by several donors for their rural electrification projects and the study has helped the Ministry of Mines and Energy define a series of follow-up activities, including a preliminiary energy-poverty reduc- tion action plan which will support the implementation of the Global Village Energy Partnership goal to scale-up energy solutions and two Project Concept Notes for World Bank financing of new rural energy projects. Contributed by Kilian Reiche 16 Energy Sector Management Assistance Programme Strategies. The intent is to learn whether existing However, there has been relatively little quantita- regulations on quality of service, pricing, and tive evidence to support these assumptions. The other issues meet the needs, particularly for off- Impact of Energy on Women's Lives in Rural India grid projects in rural areas. The assessment is also provides important quantitative support through identifying the various technologies in use in rural a survey of 5,000 households in six Indian states areas--from extension of the existing grid, to the (See Box 5.2). The bottom line: access to improved development of mini-grids, battery recharging energy services in the form of biomass stoves, centers, and single-user approaches--and how reg- petroleum fuels, and household electrification ulations are addressing each technology. Several makes a tremendous difference in how women are cross-cutting themes have been identified, such as able to organize their time. The survey also lowering costs of regulation in remote off-grid showed that in some instances, more modern ser- areas through user and provider participation; vices are locally available but households are synergies with output-based verification schemes, reluctant to spend the money to "move up" the and the use of ICT tools such as computers. energy ladder. Cultural perceptions that see wood and other biomass as cheap, if not free, combined with a lack of appreciation of the value of Gender: Empowering Women women's labor involved in collecting these mate- in Energy Practice rials, explain some of this reluctance. Energy, both modern and traditional, has a pro- found impact on the economic and social roles of At the same time, it is important to keep in mind women and men. In communities without modern the positive and negative implications of modern services, women and girls are tasked with collect- services on the fabric of a community. A partici- ing wood or other biomass materials, cooking, and pant questionnaire and subsequent discussions other daily responsibilities. The amount of time from the Women in Mining Conference, held in spent on these tasks--and thus not on income- Papua New Guinea in August 2003, confirmed producing, educational, or leisure pursuits--is con- some of the benefits that have accrued to women siderable. In addition, the impact of heavy load from modern mining operations, but, at the same and of indoor air pollution from inefficient bio- time, highlighted negative consequences that mass use on the health of women and children has require attention (See Box 5.3). ESMAP supported become a major public health issue in developing the participation of women from South Africa, countries. Nigeria, India, Fiji, and Romania to attend the conference to share their experiences and As described below, ESMAP-financed activities insights. A Vision Statement that emerged from focused on such issues as: the Conference articulated a "future of peace and prosperity" built on economic and social em- · The impact of current energy practices on powerment, a role for artisanal and small-scale women's lives; mining, and well-being in terms of health and · The positive and negative effects of mining education, as well as safety and security. operations on the social, environmental, and economic lives of women and men in local Integrating Gender in Energy Provision examined communities; energy projects in Bangladesh from a gender · The rationale for integrating gender into energy perspective to move from a conceptual acknowl- programs and ways to accomplish that. edgment of the importance of gender to on- the-ground ways to make that happen. The Energy has often been cited as having important team involved in the study makes three key consequences for women in developing countries. recommendations: Annual Report 2003 17 Box 5.2 Impact of Energy on Women's Lives When analyzed from a gender perspective, data from six Indian states produced originally for a Rural Energy Strategy Paper held useful insights on how energy use impacts women's lives. The fieldwork consisted of a household energy survey of more than 5,000 households in 180 villages, surveys of commercial and small-scale industrial establishments, a survey of renewable energy manufacturers, and an assessment of rural biomass resources. The study highlighted the tremendous difference that access to improved energy sources in the form of biomass stoves, petroleum fuels and household electrification makes in the lives of women. For example: · Women read more in households with electricity; conversely, in households without electricity, regardless of income and class, women rarely read. Given the connection between women's edu- cation and the education and health of their children, this difference holds significance for the well-being of the next generation. · Electricity frees up time for work and leisure. Time spent in fuel collection and food prepara- tion goes down, saving about an hour a day on average. Since electricity is not used directly for cooking in rural India, having electricity in the household must indirectly affect the time spent preparing food and cooking. For instance, with light in the evening hours, women may be able to use their time more efficiently in food preparation. · Regardless of income and class, biomass fuels and traditional stoves are mostly used in the areas surveyed. Thus, indoor air pollution remains a significant health concern, despite the increased availability of modern fuels. Fuel substitution, improved stoves, and other ways to mitigate bio- mass' polluting effects need to be encouraged. This study and a 2002 ESMAP-funded study on India Household Energy, Indoor Air Pollution, and Health have contributed to a Clean Energy Project to be undertaken in India. Contributed by Douglas Barnes and Mitali Sen · Enhance understanding of the direct benefits from addressing gender in energy programs through more sex-disaggregated data and analy- sis, gender-sensitive monitoring and evaluation, and targeting women for energy services. · Promote women's participation in energy activ- ities by raising policymakers and energy spe- cialists" awareness of these links and providing education on energy technologies with the needs of female and male energy end users in mind. · Provide women with opportunities to gain tech- nical and managerial knowledge and play key roles in commercial energy provision and pro- 18 Energy Sector Management Assistance Programme Box 5.3 Impact of Mining on Women The benefits of mining oil, gas, and other resources tend to accrue to men, who are usually the ones who earn wages and have access to specialized training, while women and children are more likely to bear the costs. Looking beyond financial benefits, a range of social and cultural impacts also accompany the introduction of mining operations into local communities. The Women in Mining Conference, in Papua New Guinea in August 2003, brought together approximately 180 participants, 90 percent of whom were women. Most were from PNG's mining communities, joined by government and industry representatives, as well as by about 30 atten- dees from other countries. A questionnaire was used to ask participants to identify the positive and negative aspects of min- ing on community life, and specifically on women. The most commonly cited negative impact was the increase in violence, alcoholism, prostitution and sexual abuse (reported by about 65 percent of those questioned), followed by social and fam- ily disruption. In contrast, between 60 and 80 percent of the respondents also noted that access to education, employment opportunities, and health and community services were positive impacts. Four main areas were identified: · Economic empowerment: Mining can empower women through sharing in the economic bene- fits, primarily through direct or indirect employment, infrastructure improvements, and various incentives, but too often the benefits flow largely to the men of the community. · Social empowerment: Mining can empower women by including them in key decision making and consultation bodies at all stages of mine life; however, history shows that all too often these groups are dominated or solely composed of men. · Health and education: In PNG, participants reported that mining's greatest benefits have been in the areas of improved health services and access to education. However, there are also neg- ative health impacts, such as damage from pollution and the inflow of modern foods. · Safety and security: Many communities report a significant increase in social strife, including a rise in domestic violence and alcoholism. They also report a breakdown in traditional com- munity structures. The conference led to the creation of a Coordinating Committee, a group of 20 women who built on the findings and suggested strategies to develop specific goals and objectives. Contributed by John Strongman mote more decentralized systems of energy ser- recognized as crucial to poverty reduction efforts vices provision to overcome entry barriers in and sustainable development. The case for gender the traditional energy sector. and energy as a nexus in poverty alleviation is less developed and has only recently gained substan- As the team noted, energy-related development tial attention. Increasing the visibility of this interventions and women's empowerment are both nexus to a level that can affect policy and pro- Annual Report 2003 19 grams will have far-reaching implications for · Capacity development for entrepreneurs, fi- development and the reduction of poverty. nancial institutions, consumer groups, and technicians. In 2003, GVEP funded a South The absence of a gender mainstreaming strategy Asia Practitioners Workshop, which brought to- in the energy sector is attributed to a number of gether practitioners to share experiences and factors, such as a focus on economic performance build networks. and production, the technical and male-dominated · Funding facilitation including registry of fund- nature of the energy sector, and the "invisibility" ing sources, training for financial intermedi- of benefits from energy. Nevertheless, a growing aries, and pre-investment facilities. body of networks, organizations, and researchers · Knowledge exchange encompassing models of has started to draw the attention of energy practi- actions plans, projects, and financial mecha- tioners and policymakers to the incorporation of nisms; lessons learned; toolkits; web site, radio gender concerns into energy work. and TV programs; paper information dissemi- nation; a network of trained and knowledge- able individuals; and a help/advisory desk. The Global Village Energy Partnership · Results and impact monitoring including pub- The Global Village Energy Partnership (GVEP) lic accountability for results, and assessment was successfully launched at the World Summit development impact. on Sustainable Development in 2002, with the goal of increasing availability and improving the As Part of the Country-Level Activities, ESMAP use of modern energy services for economic took the lead in designing and conducting with growth and poverty reduction, in rural, peri- UNDP and the World Bank two regional work- shops in Africa on Energy and Poverty Reduction urban, and urban areas. In addition to hosting the (Cameroon and Senegal)(see Box 5.4), and with Technical Scretariat, ESMAP's support to the UNDP, the World Bank, the Organization of implementation of the Partnership in 2003 con- American States, Germany and USAID, a GVEP- sisted country-level activities; leading the imple- LAC Conference, in Bolivia, followed by a re- mentation of the knowledge management and gional workshop for eight countries. These events monitoring and evaluation workprogram of the had two key objectives: Technical Secretariat; and implementing knowl- edge generation (Southern Africa) and pilot 1. Combining plenary presentations and sectoral projects (Bangladesh, Philippines). workgroup sessions to enable participants to build upon global knowledge, and exchange More than 250 organizations have committed to information on the best practices and lessons working collectively to increase modern energy learned in effective energy delivery and the inte- access by signing GVEP's Statement of Principles. gration of energy in other sectors for improving They include NGOs, private sector firms, govern- community services and productive uses. ment agencies, and multilateral organizations. 2. To serve as a working forum for official dele- gations from several GVEP partner countries, GVEP conducts activities under five service lines: to facilitate the preparation of National Action Plans. · Action plans that include goals for service delivery, policy framework, demand assessment ESMAP also took the lead with the World Bank and priorities, supply and investment options. and Winrock International in designing and con- Six regional activities took place, and in-coun- ducting the South Asia Practitioners' Workshop. try follow-up began in eight countries in Latin The workshop focused on ways to scale up and America and four in Africa. replicate off-grid and mini-grid service provision 20 Energy Sector Management Assistance Programme Box 5.4 GVEP: Exchanging Experiences, Building Networks and Preparing Action Programs Regional energy-poverty workshops offer the opportunity for representatives from diverse sectors to gain a better understanding of the linkages between energy services and poverty reduction in their countries, gain knowledge of methodologies to measure impacts of energy policy, and gain exposure to lessons learned from existing programs. After a successful initial workshop in Addis Ababa at the end of 2002, regional workshops in 2003 were held in Senegal, Cameroon, and Bolivia. Country level workshops were also held in India, Bolivia, Mexico, South Africa and Sri Lanka. Each country's delegation consisted of energy specialists and those from other sectors, including both government and civil society representatives. The energy specialists gained a better under- standing of how energy is used throughout the economy, while those in other sectors learned more about what modern energy services could contribute to reaching their goals. In addition to cross- pollination among representatives within each country, the workshop allowed time for sectoral focus or discussion across national boundaries. Each country delegation drafted an action plan to use for follow-up work. ESMAP published the proceeding of the regional workshops. One of the most positive aspects of the workshops, according the participants, was the opportu- nity to work across sectors, an activity often found difficult to undertake even at the country level due to the lack of communication among sectors on common objectives. Contributed by Laurent Durix and Ghislaine Kieffer in the region. Fifty-five energy practitioners came are being designed, including the introduction of together in Sri Lanka to exchange lessons learned output-based targets for the social sectors in the through many years of field experience and to design of rural electrification concessions. Similar assemble best practices in tackling the challenge action-planning projects are being designed for of scaling up rural energy services (See Box 5.5). Burkina Faso, Cameroon, Ghana, Niger, in Africa; Field visits to two community micro-hydro pro- Bolivia, Brazil, Guatemala, Honduras, Mexico and jects and a solar photovoltaic dealership in Sri other countries, in Latin America. This work is Lanka introduced the participants to how Sri being carried out in cooperation with the UNDP, Lanka is implementing off-grid renewable elec- the World Bank and other donors. tricity services using NGOs, the private sector with commercial financing, and how electricity access ENVIRONMENTAL SUSTAINABILITY: had improved people's lives. ENERGY WITHIN THE ECOSYSTEM Other country-level activities included an Action The connection between energy and environment Planning Project in Senegal, which is leading to a is a second essential component in the ESMAP demand-driven assessment of energy needs, in Business Plan for 2002-2004. ESMAP's overall particular for electricity, from the productive and objective is to address the energy and environ- social sectors. The results are being integrated into ment nexus at the local, regional, and global l the design of a rural electrification investment evels as related to energy production, transporta- program which will be submitted for financing to tion, and consumption. In 2003, ESMAP focused the World Bank. New implementation mechanism on the following areas: Annual Report 2003 21 Box 5.5 Looking Ahead in South Asia Looking Ahead in South Asia South Asia has emerged as a region where the private sector, NGOs, microfinance institutions, and commercial banks have taken a leading role in providing off-grid electricity services to rural cus- tomers. Hundreds of thousands of rural people in the region are now benefiting from off-grid elec- tricity services and tens of thousands are employed in providing such services. Despite these successes, few of the practitioners have had the opportunity to meet to exchange lessons that have learned over many years or to build relationships with each other. The South Asia Village Energy Practitioners Workshop permitted them, as well as colleagues from other regions, to meet in Colombo, Sri Lanka, in June 2003. Several months before the Workshop, an online consultation was held to identify topics of great- est relevance to participants. Participants also used this mechanism to submit project profiles showcasing good practices. Over a period of three days, the participants shared lessons and current best practices for renew- able energy and other technologies, and also built relationships. The participants also made a num- ber of recommendations, recognizing that no single model or approach would be applicable to all countries. Among the recommendations were the following: · Consumer Diversity: Poorer consumers must not be overlooked by projects and programs that see to increase energy access to rural areas. Appropriately sized and priced products, effective fee-for-service approaches, and associated risk mitigation measures for providers can encour- age service to this market. · Scale-up: A diversity of applications, particularly for productive uses and livelihood improve- ments, must be supported. Thus it is important to understand the structure of demand and respond to it--rather than have preconceived notions of what rural consumers need. · Capacity of service providers: To increase the capacity and number of service providers, pro- grams are needed to address entrepreneurship, as well as issues of investment and working cap- ital for service providers. · Donor Code of Conduct: Participants urged that donors avoid "technology dumping" projects in favor of broader programs that strengthen local capacity to deliver affordable and sustain- able services. · Financing: Financing for pre-investment activities, investments, working capital, and consumer financing is essential. Rural energy funds financed through tax revenues with specific provi- sions for subsidizing the poorest are also needed. Subsequent to the conference, GVEP is developing a Practitioners Compendium, a listserv, and otherwise facilitating knowledge sharing and dissemination. ESAMP also issued the Proceedings of the Workshop in November 2003 (ESMAP Formal Report 268/03). Contributed by Anil Cabraal 22 Energy Sector Management Assistance Programme · Renewable energy renewable energy policies and strategies, which · Energy efficiency provided key inputs into World Bank/GEF pro- · Energy and Environment Reviews jects in these two countries. ESMAP is also assist- · Urban air quality ing two cities in China in developing voluntary green electricity schemes, linked to the Beijing In addition, ESMAP continues to provide intellec- Olympics in 2008 and Shanghai 2010 World tual leadership in indoor air pollution, and work Expo. to mitigate environment and social impacts of fossil fuels. In Ecuador, pico-hydro turbines are being piloted as a low-cost source of electricity through a proj- ect entitled Stimulating the Market for Family- Renewable Energy Hydro for Low-Income Households in Ecuador. Solar photovoltaic systems, wind power, micro- These are turbines that are small and inexpensive hydro, biomass energy, and other renewable enough to be used by a single household. The technologies hold promise for meeting energy project has supported installation of 30 such tur- needs in an environmentally sustainable manner. bines (which were imported from Vietnam) in dif- ferent locations, as well as training engineers in In 2003, ESMAP support in the area of renewable how to install and maintain them. A Business energy focused on such issues as: Opportunities workshop will be held in 2004, and the benefits and impacts of the turbines will be · Assisting client country governments in devel- assessed. The ultimate objective is to create a mar- oping Renewable Energy Policies and Action ket serving tens of thousands of households in Plans; and Ecuador and elsewhere within five years. · Demonstrating innovative financing and insti- Furthermore, ESMAP continues to pilot productive tutional mechanisms to deliver renewable use applications in Honduras ­ solar power for ICT energy services through pilot activities. applications in schools, and the Philippines-- micro-hydro for ice-making businesses. Renewable energy, particularly hydro and solar power, holds great promise in Cambodia, where consumers in rural areas now pay exorbitant costs Energy Efficiency for diesel and battery power, if they have these Improving energy efficiency can often be services at all. Through the Cambodia Renewable achieved using low-cost, commercial technolo- Energy Action Plan (REAP), ESMAP funded an gies with a short payback period on the invest- activity to prepare and promote a three-phased, ment. Promoting energy efficiency is a highly ten-year plan that builds on an approach used in cost-effective measure and offers significant China and Vietnam and is designed to promote opportunities to reduce both urban air pollution renewable energy use. and greenhouse gas emissions. Improving energy efficiency also contributes to poverty reduction. Stakeholder consultations around the REAP iden- tified the need for the establishment of a Rural In 2003, ESMAP support toward increasing Electrification Fund, which has gained wide energy efficiency included: acceptance. IDA and GEF will support the Fund; this commitment leveraged significant additional · Developing a market-based pro-poor heating funding from the private sector. tariff regime to encourage energy conservation in urban heating; and In addition, ESMAP continues to assist the gov- · Exploring options to heat buildings in small cities ernment of Nicaragua and Mexico in developing and towns through distributed heating systems. Annual Report 2003 23 In China, energy efficiency is an issue in the heat- represent changes to the status quo. The objective ing of urban residential and commercial build- of the Heating Supply to Small Cities/Towns study ings, which consume 50 to 100 percent more is to provide consumers in eight Lithuanian towns energy than buildings in comparable climates in and cities access to more efficient and affordable Europe and North America. The current pricing heat through determining the least cost method of scheme does not provide the incentive to seek delivering heat to them, building on the work such efficiency enhancing measures such as bet- undertaken for larger cities; assessing the poten- ter insulation or conservation measures. tial to decrease fuel costs and environmental impacts of heating; determining the preferred ESMAP is funding a project in close partnership ownership arrangements for heating systems in with the Ministry of Construction and the Tianjin small cities and town; and preparing specific pilot Municipal Construction Commission on the schemes to test these hypotheses. While there are Development of Pro-poor National Heat Pricing many experiences and analyses from which to and Billing Policy. Knowledge transfer from sim- draw information, including a related ESMAP- ilar projects in Eastern Europe and Central Asia is financed activity in Armenia and Kazakhstan, the being used to demonstrate the applicability of a work in Lithuania fills a gap in the existing two-part tariff regime. knowledge base because of its emphasis on smaller population centers. Under the current system, heat is paid by employ- ers, not users, and payment is based on heated In addition, ESMAP started two new activities to floor area rather than on consumption. Only with demonstrate innovative financing mechanisms major integrated heat reforms will consumers that facilitate aggregating small-scale energy effi- have proper incentives to use heat wisely, as well ciency projects for financing in Mexico and as garner the benefits of more efficient use. At the Poland. same time, there is a need to enforce the existing building energy efficiency standards for all new residential buildings in the heating zones, and to EERs spur the development of new designs, building materials, and construction practices needed to Energy and Environment Reviews (EERs) provide a make a difference in energy efficiency. broad review of the environmental impacts of energy supply and use. Conducted jointly by spe- To address both of these needs, a pricing method- cialists in the energy and environment sectors in ology and billing option is being field-tested and specific countries, EERs examine the local, regional shaped into a reform plan in Tianjin City. The and global impacts of energy production and con- activity is part of a multi-year package of assis- sumption. Outputs of these reviews include (1) a tance from the World Bank/GEF. The Government diagnosis and analysis of issues related to the has placed a high priority on this issue, and the exploitation of fossil and other fuels; and (2) strate- partnerships with Chinese counterparts have been gies and options for addressing these issues. particularly strong. It is expected that the work in Tianjin will lead to national price reform strategies. Two EERs illustrate how policymakers can use the information to make policy and budgetary deci- An ESMAP-funded activity in Lithuania is focus- sions. The EERs help: ing on small cities and towns, where existing cen- tralized district heating systems are often not · Providing critical information on various pol- economically or environmentally attractive. In icy options and trade-offs at the national level; Lithuania, as in other countries, private sector and participation and new distributed technologies · Prioritizing budgets at the state level. 24 Energy Sector Management Assistance Programme In Turkey, a series of studies was carried out costs to optimizing refineries and concluded between December 2000 and June 2002 that pro- that desulfurization of fuel and heating oil vided policymakers with critical information to should be coupled with use of low sulfur crude evaluate energy issues and assess alternative pol- oil by refineries, substitution of fuel and heat- icy options. A synthesis of these separate studies ing oil by natural gas, and import of low-sulfur serves as tool for policymakers looking at the products. larger picture. In addition to initiating such · What are the costs and benefits of energy effi- reforms as privatization of the power sector and ciency programs? A program of DSM/energy con- the introduction of natural gas and other fuels, servation measures would have a major impact on Turkey's interest in becoming a member of the energy demand, imports, and emissions. European Union means that it must revise its envi- · What are the implications for the environment, ronmental regulations according to the EU's Fifth cost, and security of the energy supply if Turkey Environmental Action Plan. The EER laid out some constrains the use of natural gas? A "reference of the issues and decisions facing policymakers to scenario" assumed an increase in the use of nat- accomplish this. For example, an analysis of tech- ural gas, although the review acknowledged sit- nologies to combat emissions of SO2 spotlighted uations where this demand might not increase. how much it would cost to achieve certain emis- If Turkey sought to constrain use of natural gas, sion targets in different ways. This information an increase in greenhouse gas emission levels then helps decide on the best practices (such as and other pollutants would result, according to tighter emission standards, new technologies, or the review. emissions trading) to reach these targets. · What are cost-effective means to reduce green- house gas emissions and meet Kyoto targets? The EER used demand-focused energy models to The strategies analyzed as "win-win" (that is, conduct scenario analyses of various options, achieving reductions without a consequent in- such as greater use of natural gas, more efficient crease in cost) included wider use of natural and cleaner use of lignite (a local resource), or use gas, demand-side management, and cogenera- of imported coal. A workshop brought together all tion and improved technical efficiency of the the stakeholders to review the report and consider power sector. recommendations to policymakers. Some of the key questions addressed are: In India, EERs were conducted in two states cul- minating in Environmental Issue for the Power · What will be the costs and benefits if Turkey Sector: Long-Term Impacts and Policy Options for adopts EU legislation on emissions from large- Karnataka and Rajasthan. These studies built on combustion plants? Cogeneration and demand- an analytical tool first used in the mid-1990s in side management were both shown to Bihar and Andhra Pradesh. A capacity-building contributing to the meeting of an emissions tar- exercise was carried out on how to use the tool. get. Steering/advisory committees in each state were · Do clean-coal technologies offer a cost-effective responsible for guiding and coordinating the alternative to natural gas or renewable energy as efforts. With both generalizable and specific find- a way to achieve a cleaner environment and ings (see Box 5.6), the EER reinforced that prior reduce greenhouse gas emissions? The study planning for environmental compliance is much found that rehabilitation of existing plants is a less expensive than dealing with it after the fact. "win-win" option that should be pursued. Policymakers received specific and quantitative · Should EU legislation on the sulfur content of information that reform will benefit the environ- fuel oils be introduced, and what would be the ment, and could use that information to commu- consequences? The study was able to assign nicate with other stakeholders. Annual Report 2003 25 Box 5.6 5.5 Looking Ahead in South Asia The Role of Environment in Power Sector Planning The EERs conducted in Karnataka and Rajasthan made use of an analytical tool that helps deter- mine the least-cost configuration for any given scenario in the power sector, then estimates their environmental impact. Looking simultaneously at the Least Cost Plan and its quantified environ- mental impact allows policymakers to see a complete picture in considering various options. A baseline scenario is used, on which is layered various options such as demand-side manage- ment, renewable energy technologies, or developing a hydro program (issues in Rajasthan and Karnataka respectively). Major findings were: · Power sector reform is the single most important measure to take in the mitigation of the envi- ronmental impacts of the power sector. Once financially viable, utilities can increase their com- pliance with environmental regulations. · The difference in emissions (and damage costs) between reform and stalled reform far exceeds the differences between any other options. · Tariff reform is the second most important policy option for environmental sustainability. · Demand-side management is a win-win. · The imperative of meeting peaking power requirements will become the main issue over the long term. · Consumptive water use for thermal generation is a major issue in both states, giving a further advantage to gas combined cycle. Small hydro is win-win, while with adequate safeguards and careful citing, large hydro can also be win-win, especially in the case of adding powerhouses to existing irrigation projects (as in the upper Krishna scheme in Karnataka). · Concern that the open-access provisions of the 2003 Electricity Act will trigger a shift to indus- trial self-generation are not founded, as long as the government maintains its present policy of linking domestic diesel prices to world market prices. Contributed by Mudassar Imran and Peter Meiers Urban Air Quality air pollution remains a huge problem. ESMAP's strategy in Urban Air Quality focuses on the worst Urban air pollution has significant negative ambient air pollutants--fine particulates, lead, health impacts. Epidemiological studies have con- sulfur, and nitrogen oxides, particularly in the firmed a direct association between fine particu- transport sector. lates, one of the worst ambient air pollutants, and mortality. Lead content in blood has also been Through the Clean Air Initiative, the phase-out of correlated with children's behavior and IQ level. leaded gasoline has become a top priority as a Again, the poor are most vulnerable. Evidence way to improve urban air quality. In June 2001 shows that there is a direct link between urban air the Clean Air Initiative organized a pan-African quality and national income levels. In industrial- regional conference in Dakar, Senegal, where 25 ized countries, urban air quality has been signifi- countries signed a declaration setting the date of cantly improved over the past four decades due to 2005 for the complete elimination of lead from improved technologies and more stringent regu- gasoline in sub-Saharan Africa. Following the lations. In the developing world, however, urban successes of ESMAP projects in phasing out 26 Energy Sector Management Assistance Programme leaded gasoline in Asia, Central Asia, Latin Amer- rience and lessons learned in ESMAP indoor air ica and Caribbean, and the Middle East and North pollution projects in five countries (China, Africa regions, ESMAP and Africaclean have Guatemala, India, Mongolia, and Nicaragua). The focused on the Lead Phase-out Initiative in Africa, workshop generated a great deal of interests emphasizing four oil-importing countries: Ethi- among energy, environment, and health staff in opia, Mali, Mauritania, and Tanzania. indoor air pollution in developing countries. By the end of 2003, Ethiopia and Mauritania announced a ban on the import of leaded gasoline, MARKETS: DEVELOPING SUSTAINABLE while Tanzania was phasing in unleaded gasoline MARKETS IN AN ERA OF REFORM and Mali was exploring its options to reduce fuel adulteration while awaiting changes from refiner- Energy services must be accessible to all, and ies along the Atlantic coast that supply its market. must be provided in an environmentally sus- tainable manner. Another critical element in the The project also provided lessons learned valid for provision of modern energy services is market other SSA markets. It was confirmed that old cars development, and this is the third area that can use unleaded gasoline without problem, and ESMAP has identified as one in which its fund- that prices do not increase due to investments or ing and support can be pivotal. This includes pro- new costs in distribution and marketing when viding evidence about how and whether sector switching. reform is assisting in poverty reduction, strength- ening local private sector participation and In addition to above areas, ESMAP successfully public-private partnerships, as well as strength- organized an event at the Bank to share the expe- ening regulation and regulatory capacity. Annual Report 2003 27 Box 5.7 5.5 Looking Ahead in South Asia Electricity Pricing and the Poor in Ghana The pricing of electricity has repercussions at all levels: for the utilities that provide the service as well as the consumers who purchase it. The pricing of electricity has emerged as central to both the Ghana Poverty Reduction Strategy, to a Bank-supported PRSC, and to the political dialogue. A multi-stakeholder Steering Committee has focused on two key policy issues: the impact of recent tariff increases, including the recent approval of automatic increases, on the poor and the effec- tiveness of an existing lifeline subsidy in protecting them from tariff hikes. With regard to the implementation of the lifeline tariff, a key question concerned its effectiveness when many lived in compound houses with shared meters. For the automatic tariff increase, an increasing reliance on thermal energy meant that the utility needed tariffs to better reflect its dollar-driven cost struc- tures. For the regulator, existing rules pointed towards the need for public hearings prior to tariff increases and a desire to put pressure on the utility to improve its performance. The Ministry of Finance was interested in reducing the fiscal drain of subsidies to the utility. At the same time, electricity tariffs had been a hot topic in the press and there was concern among consumers that increasing tariffs were contributing to poverty. Thus, although automatic rate increases had been gazetted, in fact they have not been implemented because of underlying concerns about afford- ability, social impacts among some stakeholders, and already existing problems with nonpayment of electricity bills. The analysis was divided into two phases: a first phase, which was to inform the ongoing policy dialogue, consists of a stakeholder analysis, exploiting existing studies, utility data and national household level surveys data, and complementing this with qualitative and some limited quanti- tative research to assess existing evidence on the impact of increasing tariffs and the effective- ness of the existing lifeline subsidies (a subsidy for those consumer less than 50 kWh per month) on the poor. Preliminary findings point to the following: unless there have been changes in the structure of poverty since the last national level income survey (GLSS), lifeline subsidies are not well targeted in urban areas, with a minimum of 55% of the lifeline subsidy going to non-poor households under the best of circumstances, but a surprising number of households below the poverty line with electricity in rural areas have access to electricity (20%). Further, comparatively high levels of access to electricity in Ghana, with particular emphasis in recent years on expanded access in rural areas, poses challenges for maintaining affordable tar- iff levels. Qualitative research and key informant interviews revealed that one segment with the most resistance to the higher prices were small scale businesses, such as corn millers who would in turn raise their prices to farmers or turn towards illegal connections. In urban areas, increased prices did not always translate into revenue impacts as arrears were increasing over time. Further, financial analysis showed that a recent policy of allowing larger scale consumers to obtain elec- tricity directly from the state-owned generator, VRA, would threaten the financial sustainability of the utility, and in particular its ability to continue to provide service to low-income groups. Final analysis, and policy recommendations will be discussed with the stakeholder committee in early 2004 and will feed into the PRSC and the GPRS discussions. Contributed by Sarah Keener 28 Energy Sector Management Assistance Programme Impact of Reform on the Poor tricity led ESMAP to fund Poverty and Social Impact Analysis of Energy Sector Reform in On the one hand, there has been a push in many Ghana to clarify the policy dialogue on one of the countries to reduce government subsidies to the key sub-issues in the sector: electricity pricing energy sector by setting tariffs that more accu- and the poor. (See Box 5.7) The pricing of elec- rately reflect true costs. In many cases, despite the tricity has emerged as central to both the Ghana hope that low-income areas would benefit from Poverty Reduction Strategy, to a Bank-supported reform, these reforms have in fact focused on PRSC, and to the political dialogue. The high serving better-off users.1 On the other hand, profile of the issue led to the creation of a multi- poverty alleviation strategies call for extending stakeholder Steering Committee including repre- access of these services to those with very limited sentatives of both the energy sector (Minister of means to pay. For example, in Lesotho, tariffs had Energy, utilities, regulator) as well as those out- not been raised for over a decade and do not allow side of the sector but with a key interest in the for cost recovery, yet the government wants to policies to be addressed (the Ministry of Finance, increase the number of households with access to those monitoring the GPRS, NGOs, and a con- services from 30,000 to 500,000--thus requiring sumer group) to monitor the analysis (including thoughtful analysis of the sustainability and via- terms of reference, interim results, draft and final bility over time. In its 2002-2004 Business Plan, reports), inform cabinet, and develop policy rec- ESMAP recognized that there is limited informa- ommendations emerging from this work. tion to understand how reform affects the poor, and highlighted this topic as one needing further Electricity sector reform is also at the top of the analysis. Filling this knowledge gap represents a Government of Lesotho's economic agenda. The need that ESMAP can meet. Poverty and Social Impact of the Electricity Sector Reform is providing guidance on the expected In 2003, ESMAP built on theoretical work initi- social impact of the proposed electricity sector ated in previous years on the impact of reform on reform and on institutional considerations that the poor toward a focus on documenting these should be taken into account during reform concerns so that policymakers can use the analy- implementation. In 2003, questionnaires and other ses in decision making. ESMAP-funded activities survey instruments were developed and fine- included: tuned. The study focuses on the affordability and willingness to pay electricity charges at different · Gathering evidence-based information to set tariff levels, as well as connection fees with vari- tariffs in the electricity sector with the needs of ous options for subsidization for different types of the poor in mind; households, on usage of alternative sources of · Understanding how and where the poor pur- energy and its social implications, and on con- chase energy and how these supply points sumer perspectives on how to organize and might be affected by reform; and improves services. Decision makers will be able to · Developing case studies that shed light on the produce more precise estimates of demand projec- positive and negative impacts of reform in indi- tions and to reduce the risk resulting from planned vidual countries. network expansion. This will benefit residential consumers as risk reduction leads to lower tariffs. An effort in Ghana to improve functioning of the electricity sector to reduce fiscal drain of the sec- Energy Use, Energy Supply, Sector Reform, and tor on the state budget, while protecting the poor the Poor is being carried out in Ghana, as well as and meeting goals of expanding access to elec- in Honduras, Botswana, and Senegal to look at the supply side of energy use in a different way-- 1Energy Services for the World's Poor, Energy and Development Report 2000. in terms of how the poor buy energy. Through Annual Report 2003 29 small-scale household surveys conducted by local rent trends and strengthen their networking consultants in each of these countries, a fuller pic- opportunities. ture of how the poor use energy and the supply points where this energy is purchased will be pro- The Strategy to Expand Gas Distribution and Uti- duced. The local consultants are also producing lization in Turkey is looking at the possible studies on the energy supply chain in each of their expansion of natural gas usage. Most Turkish countries. Individual country stakeholder work- cities are heated with lignite briquettes, wood, and shops will be followed by a workshop to integrate high sulfur petroleum fuels, resulting in a high the major findings in the four countries in 2004. degree of air pollution and associated respiratory problems. In order to reduce this problem, Turkey Complementing this quantitative work is another developed gas distribution systems that cover study based on a series of case studies on Power parts of Ankara, Bursa, Eskisehir, Istanbul, and Sector Reform: Assessing the Impact on Poor Peo- Izmir. Although these only cover a small portion ple and Influencing Policy Decisions. In this activ- of the country, Turkey is importing more gas from ity, local researchers are looking at reform in their Russia, Iran, and other countries than these cities countries and determining the positive and nega- use, and the state gas company has constructed an tive impacts on the poor. They are preparing a extensive transmission network across the coun- series of case studies that are looking at such try. To make better use of this network, the areas as price and access to electricity, quality of government wants to offer gas distribution con- supply and service provision, improved social ser- cessions in 56 cities to the private sector. vices, stimulation of economic development, and Although some cities have been tendered to the public sector finances. private sector, the obligations of the investors are not clear and there are concerns about the sus- tainability of the current approach. The Strategy Strengthening Reform to Expand Gas Distribution and Utilization in In the 1990s, power sectors in both developed and Turkey project, aims to assist the government in developing countries have moved away from developing a strategy to determine the economic large public monopolies toward private owner- feasibility, refining their tendering framework to ship, with a range of options for the structure and attract private sector interest, and develop appro- ownership of the sector. However, since the late priate public-private ownership and institutional 1990s, private interest in the power sector has structures for concessioning city gas distribution declined, with investors particularly retreating systems. In fact, other countries in South Eastern from developing countries.2 ESMAP has provided Europe are also trying to increase gas utilization advisory services and training in dealing with in urban areas, and the work in Turkey can be current realities, such as in the projects described used elsewhere. below, where ESMAP support has focused on: Dealing with reduced supply, whether oil, hydro · Developing a strategy to make better use of nat- power, or other sources, can easily become a ural gas for household and industrial energy politicized issue. The reality is that cutting back use by involving the private sector; on services--for example, through rolling black- · Exploring alternative ways black-outs or brown- outs, is so unpopular that governments wait until outs to handle energy shortages; and necessity absolutely forces the issue. Yet, when · Enabling regulators from developing countries Brazil was faced with the need to ration energy and transition economies to learn about cur- because of dropping hydro levels in rivers, it chose a different route. An ESMAP study Rationing Energy in a Rational Way analyzed the 2Private Sector Development in the Electric Power Sector, World Bank Group, July 21, 2003. Brazilian case. A market-based scheme was devel- 30 Energy Sector Management Assistance Programme oped. Each customer had a quota or consumption reflected the needs of energy regulators in devel- baseline, and had to pay the equivalent of market oping countries. Three presentations were devel- price if it exceeded the quota, therefore building- oped of particular interest: one on regulatory in a disincentive to over-consume. Conversely, systems for mini-grid operators, a second on em- users saved money if they were able to reduce ploying "regulation by contract" as a transition for their usage below a given quota. Large customers establishing new regulatory systems, and a third had the option to exchange quotas in the market- on employing market mechanisms for dealing with place, which significantly improved the allocation capacity and energy shortages that are encoun- of a very scarce resource. Most people were skep- tered in many developing countries. In addition, tical that it would work, but the level of engage- ESMAP funded the participation of 25 energy reg- ment was very high and the market-based ulators from developing countries and transition solution proved to be very effective. Over the economies, 12 of whom were from Africa, as well eight months, usage decreased by 25 percent. In- as five presenters. Some key messages of particu- deed, when water levels returned to normal, peo- lar relevance to developing countries emerging ple kept conserving. The ESMAP study was able from the forum include the following: to review the Brazilian case and point out lessons learned for future application. For example, with · Support for regulators and their institutions is the benefit of hindsight, it seems that policymak- still needed. ers should have implemented the program earlier. · Alternatives to fully independent regulatory The study also compared and contrasted the institutions should be considered where elec- Brazilian strategy with those in other countries, tricity markets are sub-critical. This should including Chile and the United States. include further exploration of where regulation by contract is possible. At the Second World Forum on Energy Regulation · In both developed and developing countries, in October 2003, ESMAP and the World Bank clear, consistent, and predictable regulatory worked with organizers to ensure that the agenda environments are needed to attract investment. Box 5.8 5.5 Looking Ahead in South Asia Role of the Private Sector At the Roundtable on Opportunities and Challenges in Water, Sanitation and Power Sectors in the MENA Region, 150 public and private sector participants highlighted the following issues as important to attracting more investment to the area: · The region is energy-rich and access to power is high in most countries; however, there are important contrasts between countries, regional markets are very limited to date and cost recov- ery remains limited. · The region is lagging behind in reform, which is critical to improve the efficiency and meet the investment needs of the water and power sectors. · Appropriate regulation is a key element of the appropriate investment climate and can foster the participation of local and foreign investors to infrastructure financing. Mitigating political risk is of vital importance for attracting private sector partners. Issues of cost recovery, water and power losses and overstaffing are key management challenges that need to be addressed if the utilities are to become more efficient and effective. Annual Report 2003 31 · Coordinated reforms in the gas and oil markets, to discuss public-private partnerships in the and electricity markets are needed. Middle East and Northern Africa; and · Regulators need to communicate and explain · Studies on opportunities and challenges for decisions much more clearly, both to the gov- SMEs to become more involved in energy ser- ernment and to consumers. vices in Africa. The ESMAP-funded participants filled out ques- At the Roundtable on Opportunities and Chal- tionnaires to assess the usefulness of the forum to lenges in the Water, Sanitation and Power Sec- them. ESMAP will work with the organizers of the tors in the Middle East and North Africa Region, Third World Forum to ensure that it is of direct private investors and representatives from the benefit to regulators from developing and transi- two sectors came to discuss how they could work tion economies. together to develop water and energy services. Private investment has not been high in this Public-Private Partnerships region, and the roundtable was designed in part to understand why and how to change things While governments may wish to pursue or expand (See Box 5.8). In the water sector, it was re- decentralizing and privatizing services, private ported, the region only attracted 1 percent of investment in energy services cannot be taken as a total private investment in the sector worldwide. given. Private investment has fluctuated over the Because of the region's high population growth, past few years and remains uneven geographically. energy investment needs are estimated to reach ESMAP activities in this area in 2003 included: $300 billion between 2000 and 2010. The round- table participants discussed critical areas for · A conference that brought together govern- improving infrastructure, such as private sector ment, private sector, and donor representatives participation and regulation. The private sec- 32 Energy Sector Management Assistance Programme tor participants were able to articulate some capacity of these SME utility service providers of their needs before invesing, such as more (SME-USPs). During the filed testing phase of streamlined procedures for transactions and PUSOM, APDF intends not only to help SME- enhanced upstream involvement of the Bank in USPs to minimize their risks, but also to apply risk sharing. capacity building support both at the level of the SME-USPs and the incumbent utility companies. Two activities in Africa are focusing on the exist- The pilot in Ghana covers five SME-USPs that ing and potential roles for small and medium have secured concessions to provide services to enterprises (SMEs) as utility service providers, small towns. Ultimately, APDF intends to repli- leveraging outsourcing opportunities that are cate the model in other countries in the sub- unfolding with sector reform. region, such as The Gambia and Sierra Leone. ESMAP is collaborating with the IFC's Africa Under a related activity, Expanding SME Out- Project Development Facility (APDF) on the sourcing Opportunities from Utility Sector Reform, Design and Pilot Testing of Capacity Building ESMAP is collaborating with the African Energy Product Line for SME Utility Service Providers in Policy Research Network to determine the nature West Africa. This activity is exploring prospective and extent of opportunities for SMEs to pursue business opportunities for SMEs in the provision emerging business opportunities due to similar of utility services in peri-urban communities, utility sector reforms in Kenya, Tanzania, Uganda, such as the vending of prepayment metering ser- Zambia, and Zimbabwe. The preliminary results vices. A comprehensive field survey in Ghana to are very promising; incumbent utilities in Kenya, determine local practices and experiences of Tanzania, and Zimbabwe already outsource sig- SMEs concluded that while SMEs are pursuing nificant aspects of electrification tasks in rural outsourcing opportunities that are emerging from and/or per-urban communities to over 25 SMEs. ongoing utility sector reforms, they are taking The next steps are for ESMAP and AFREPREN to considerable financial and other risks to do so. develop a joint strategy with other stakeholders-- The activity developed a model, known as the such as APDF, COMESA, and the African Devel- Peri-Urban Utility Outsourcing Model (PUSOM), opment Foundation--to enhance the performance which can serve as a reference for ADPF to extend of the emerging SME-USPs in this sub-region of business development services to upgrade the Africa. Annual Report 2003 33 ESMAP KNOWLEDGE DISSEMINATION 6 ESMAP KNOWLEDGE DISSEMINATION Energy Sector Management Assistance Programme Consistent with its business plan, ESMAP contin- opinion exchange and facilitates the reaching of ued to place a high priority on the generation, consensus for follow-up action. capitalization, and dissemination of knowledge in 2003. ESMAP dissemination activities are de- SEMINARS signed to facilitate the scale-up of energy solution delivery by: In practical terms, ESMAP supports the creation and dissemination of a range of publications, both · Providing a knowledge management service to in print and online versions; informal information the broader energy and development commu- exchanges; capacity building and other training; nity; and and workshops and conferences. · Contributing to the timely delivery of specific knowledge products to those who have an im- ESMAP actively seeks opportunities to share the mediate need for them. results of its activities with colleagues in The World Bank Group and with others in the energy and ESMAP's dissemination mission is defined as development communities. For example, a seminar follows: to identify and evaluate both ESMAP- on Reducing Energy Costs in Water Utilities generated and external knowledge, with the aim through Energy Efficiency brought together ESMAP of both contributing to the build-up of the global project experiences in Brazil, China, and Central knowledge stock and to the timely delivery of Asia. ESMAP led a roundtable discussion on lessons specific knowledge products to those who will learned in hydropower investment, in which private directly benefit. ESMAP promotes information/ sector companies shared experiences. Informal Annual Report 2003 35 lunch meetings were held on topics that ranged expand and multiply the impact of resources and from small-scale rural gas projects in Bolivia, to expertise in the energy sector. rapid assessments of environmental policies in the power sector, to landfill gas capture in sub-Saharan This was most in evidence in workshops spon- Africa. ESMAP also successfully organized an event sored through GVEP. GVEP-sponsored workshops at the Bank to share the experience and lessons in 2003 included the following: learned in ESMAP indoor air pollution projects in five countries (China, Guatemala, India, Mongolia, · Two regional Energy-Poverty workshops in and Nicaragua). The workshop generated a great Africa that brought together government min- deal of interests among energy, environment, and isters, NGOs, private sector representatives and health staff in indoor air pollution in developing others from energy and from health, water, and countries. Summaries of brownbag presentations other sectors. This cross-sectoral focus was par- are on the ESMAP Web site as a way to further dis- ticularly well-received by the participants. Each seminate key findings and discussions. country's team created a preliminary action plan to integrate energy services in multisec- WORKSHOPS toral poverty reduction programs. · In April 2003, the GVEP Technical Secretariat As important as the dissemination of knowledge and Kreditanstalt fur Wiederaufbau sponsored through publications and seminars is, ESMAP a workshop in Berlin for input on the GVEP considers the interactive nature of workshops and financing facilitation line. conferences as a critical piece of its knowledge · In June 2003, the South Asia Practitioners' Work- dissemination mission. Convening partners to shop brought together energy practitioners to exchange information and experiences helps share lessons learned and develop best practices, 36 Energy Sector Management Assistance Programme and network for follow-up opportunities. These Second Form was more relevant to developing practitioners had many years of experience in country needs than the previous forum held in 2001. their own countries, but had never had the oppor- tunity to share experiences across borders. In Norway, ESMAP sponsored a workshop on · In July 2003, a major regional conference was Revenue management in the petroleum industry held in Santa Cruz, Bolivia, on the delivery of for a delegation from Chad. The objective was to energy services to rural areas in Latin America inform the delegation about the way Norway is and the Caribbean. More than 260 participants handling the income from the petroleum industry, from 21 countries attended. Eight countries have and create a forum for discussion about relevant since presented draft national action plans that issues concerning revenue management. they developed with support from the conference. Most presentations, publications, and other At the Second World Forum on Energy Regulation, ESMAP knowledge products are accessible via the held in Rome in October 2003, ESMAP had as an ESMAP Web site. Visitors can also request to be objective involving more developing country regu- put on an electronic mailing list to receive notifi- lators and ensuring that the forum agenda met their cation when new publications are available. needs. Feedback after the forum confirmed that the Annual Report 2003 37 GOVERNANCE AND MANAGEMENT 7 GOVERNANCE AND MANAGEMENT Energy Sector Management Assistance Programme THE CONSULTATIVE GROUP GVEP implementation. The strength of the partner- ships that have developed and the eventual transition The Governance structure of ESMAP includes a of the Secretariat from ESMAP were also discussed. Consultative Group (CG) composed of a chairper- son, representatives of donors, and members "at Overview of the Energy Trust-Funded Programs large" from countries receiving ESMAP assis- (ETFPs): Program Managers of the four ETFPs tance. During 2003, Ms. Nemat Shafik, the World presented updates of their programs and emerg- Bank's Vice President for Infrastructure, served as ing issues. New agenda items that ESMAP is chair of the CG and Mr. Jamal Saghir served as beginning to address include operationalizing acting chair. Mr. Rufino Boomasang, President the energy-poverty agenda, urbanization, public/ and CEO, PNOC Exploration Corporation, Phil- private partnerships, energy security, measuring ippines, and Mr. Ketane Sithole, Business De- results, and evaluating impact. velopment Manager, Grinaker-LTA, Botswana, continued as Members at Large. Annex 1 presents the Summary Proceedings of the April 2003 CG meeting. The annual meetings of the Energy Trust Funded Programs (ETFP) managed by the World Bank THE TECHNICAL ADVISORY GROUP were held April 28­30, 2003, in Berlin, Germany, chaired by Mr. Jamal Saghir, the World Bank's Technical Advisory Group (TAG) comprising of five Director for Energy and Water and Chair of the international independent energy and development World Bank's Energy and Mining Sector Board, experts reviews the Energy Trust-Funded Pro- on behalf of Ms. Shafik. grams, including ESMAP. It submits annual reports providing guidance to the CG and to ESMAP Man- The meeting, hosted at the Deutsche Gesellschaft agement and undertakes other reports and surveys. fuer Technische Zusammenarbeit (GTZ), was orga- The Technical Advisory Group (TAG) consisted of nized around the theme "Meeting Expectations: five members in 2003: Messrs. Alfredo Mirkin Post World Summit for Sustainable Development." (Moderator), Andrew Barnett, Youba Sokona, Jan Discussion included the following: Moen, and Ms. Jyoti Parikh. Post-WSSD and Changes in the Global Environ- In its report at the April 2003 CG meeting, the TAG ment: These discussions highlighted the fact that the noted that the ETFPs were in a strong position to WSSD put energy back on the agenda with empha- deliver on four essential tasks: innovation, intellec- sis on how energy services contribute to develop- tual leadership (promoting new ideas and new ways ment; the challenges in increasing private sector of thinking), knowledge management (institutional investments in developing country energy markets; learning), and specialized technical assistance. The and the continuing need to improve and maintain TAG suggested a consolidation of the four ETFPs. energy infrastructure to ensure a flow of services. While this was not accepted by the CG, it was decided to increase coherence among them through Accelerating the Implementation of the World the World Bank's Energy and Mining Sector Board. Bank Group's (WBG) Energy Business Renewal Strategy: Mr. Saghir outlined how the World Bank The TAG also held an informal meeting in Copen- Group is positioned to meet the challenges facing hagen, Denmark, in September 2003 to review its the global energy sector, outlined the priorities of work plan and progress on a series of client sur- the Bank's energy strategy: direct poverty reduc- veys and thematic reviews. tion, macro/fiscal stabilization, and environmen- In 2003, the TAG oversaw a review of ESMAP work tal sustainability. Discussion focused on the need on regional integration of energy markets. The for a strategic approach and selectivity in reform- review focuses on five ESMAP projects intended to related interventions in developing countries. engender regional integration in the Mekong River The Challenge of Scaling Up Energy Services: Global delta, the Nile Basin, South America, Southern Village Energy Partnership: Ms. Dominique Lalle- Africa, and West Africa. TAG also consulted with ment, ESMAP Program Manager and coordinator of European, North American and Indian partners on the GVEP Secretariat, presented a progress report on the value-added of the program. Annual Report 2003 39 FINANCIAL REVIEW 8 FINANCIAL REVIEW Energy Sector Management Assistance Programme CONTRIBUTIONS RECEIVED The World Bank's contribution (which is considered core) was $535,000 in 2003, a decrease of about 1.8 ESMAP receipts from its donors totaled US$9.5 percentage from its contribution of $545,000 in 2002. million in 2003 and US$7.8 million in 2002. The contribution in 2003 marks an increase of about The total contribution received for thematic fund- 21% from 2002. This increase is largely due to the ing in 2003 was US$5.8 million. The Netherlands funding received to support the activities under made a contribution of US$3.9 million, Norway the Global Village Energy Partnership. This year, US$1.1 million, and Germany of US$ 0.9 million. eight donors, in addition to the World Bank made cash transfers to the Programme through trust Project Funding funds. Donors have already made pledges for Project specific funding totaled US$1.4 million in 5 million for the calendar year 2004. 2003 compared to US$2.15 million in 2002. These contributions were provided by Canada, Sweden Table 1 shows actual receipts by individual donor and United Kingdom. for the period 2001-2003, also illustrated in Figure 8.1. Given the continuing gap between financing needs and core or thematic resources, additional funding will continue to be mobilized from donors CORE AND THEMATIC FUNDING for promising projects after they reached the nec- essary stage in the evaluation process. Core contributions totaled about US$1.65 million in 2003 or 17 percent of total contributions. Disbursements and Expenditures Sweden and United Kingdom provided core and project-specific funding, and Germany provided Table 8.4 shows that disbursements in 2003 to- core and thematic funding. taled US$7.6 million, an increase of US$1.5 mil- Table 8.1 ESMAP Receipts 2003 US$ (000) Of % of % of Pledges which, Total Total % of for Total Core Receipts Receipts Total US$ (000) 2001 2002 2003 2004 01-03 01-03 01-03 2003 Core (US$) (%) UNDP 0.0 100.0 100.0 50.0 200.0 200.0 0.8% 1.3% 2.4% World Bank 1,032.4 545.4 535.0 *225.0 2,112.8 2,192.3 8.3% 7.0% 26.2% Canada 255.9 737.8 277.6 193.0 1,271.3 0.0 5.0% 9.4% 0.0% Germany 72.4 899.5 892.3 524.0 1,864.2 473.0 7.3% 11.5% 5.6% Finland 168.7 82.8 0.0 0.0 251.5 251.5 1.0% 1.1% 3.0% Netherlands 4,468.8 3,097.0 3,964.3 1,110.0 11,530.1 0.0 45.2% 39.6% 0.0% Denmark 234.8 258.1 0.0 0.0 492.9 492.9 1.9% 3.3% 5.9% Norway 576.5 0.0 1,150.0 350.0 1,726.5 576.5 6.8% 0.0% 6.9% Sweden 487.4 636.4 1,023.2 384.0 2,147.0 1,663.6 8.4% 8.1% 19.8% United Kingdom 880.3 1,125.2 1,246.3 1,852.0 3,251.8 2,533.2 12.8% 14.4% 30.2% United Nations Foundation 0.0 335.0 300.0 300.0 635.0 0.0 2.5% 4.3% 0.0% Total 8,177.2 7,817.2 9,488.7 4,988.0 25,483.1 8,383.0 100.0% 100.0% 100.0% * Based on projected disbursements. Annual Report 2003 41 Figure 8.1 ESMAP Receipts 2001­2003 Denmark 2% Germany 7% Canada 5% UNF 3% Denmark 2% Canada 5% Finland 1% Germany 7% World Bank 8% Netherlands 45% Netherlands 45% UNDP 1% Norway 7% Norway 7% Sweden 8% UNDP 1% United Kingdom 13% Finland 1% Sweden 8% UNF 3% United Kingdom 13% World Bank 8% Table 8.2 Core/Thematic ESMAP Donor Contributions, 2001-2003 Core as % of Core plus Thematic Total Donor a/ Of which, Core Total Donor as % of Total Donor Contributions Of which, Core plus Thematic Contributions Contributions ($m) ($m) ($m) (%) (%) 2001 7.14 2.42 6.89 33.9% 96.5% 2002 7.17 1.92 5.02 26.8% 70.0% 2003 8.8 1.65 7.45 18.8% 84.7% Total 23.1 5.9 19.36 25.5% 83.8% a/Does not include world Bank and UNDP. lion from disbursements in 2002. Expenditures Funding New Projects and Cash Availability on work program development (time spent by During 2003 ESMAP launched 43 new projects ESMAP staff to help develop specific ESMAP pro- with a cumulative budget of US$6.7 million. There jects) increased from US$51,000 to US$75,000. was a clear increase both in terms of the number Program management costs increased marginally of projects and in the cumulative budget in com- from US$394,000 in 2002 to US$401,000 in parison to 2002 (29 projects with a cumulative 2003. budget of US$5.6 million). Out of this total cost, ESMAP allocated funding of US$5.3 million. The Table 8.3 Receipts by Type of Funding in 2003 difference of US$1.2 million is required to fund the subsequent tranches of projects. Amount (millions of US$) There are still ongoing projects prior 2003 that are WB Contribution 0.535 partially funded which require a total of US$3.5 UNDP 0.100 million to fully finance these ongoing projects. In Core 1.650 total, ESMAP requires US$4.7 million to finance Thematic 5.797 the launched projects and the partially funded Project 1.406 projects. The present cash balance of 5.5 million Country Program 0 puts ESMAP into a seriously constrained financial Total 9.488 situation. 42 Energy Sector Management Assistance Programme Table 8.4 ESMAP Disbursements and Expendi- tures, 2001-2003 (thousand US$) 2001 2002 2003 Project Costs 5,445 5,224 6,727 Work Program Development 1/ 40 51 75 Program Management 425 394 401 Knowledge Dissemination 82 170 165 Governance 321 172 212 Of which TAG 166 72 133 Of which CG 155 100 79 Total 6,313 6011 7,580 Of which funded by Donors 5,281 5,366 7,045 Of which funded from World Bank budget 1,032 545 535 1/Includes Review of Proposals Annual Report 2003 43 ANNEXES ANNEXES Energy Sector Management Assistance Programme ANNEX 1 SUMMARY PROCEEDINGS OF THE APRIL 28-30, 2003, JOINT DONORS' ROUNDTABLE MEETING FOR TRUST FUNDED ENERGY PROGRAMS MANAGED BY THE WORLD BANK, BERLIN, GERMANY "Meeting Expectations: Post World Summit for Sustainable Development" The Consultative Group (CG) for the Energy Trust-Funded Programs (ETFPs) managed by the World Bank met in Berlin, Germany, on April 28-30, 2003. Mr. Jamal Saghir, the World Bank's Director for Energy and Water and Chair of the World Bank's Energy and Mining Sector Board chaired the meet- ing on behalf of Ms. Nemat Shafik, the World Bank's Vice President for Infrastructure and Chair of the CG. This document presents a summary of the meeting's proceedings. After welcoming remarks by Mr. Manfred Konukiewitz, Head of the Infrastructure Division of the Bun- desministerium für Wirtschaftliche Zusammenarbeit und Entwicklung (BMZ) of the Federal Republic of Germany, Mr. Jamal Saghir outlined the objectives of the meeting: to discuss the concrete solutions needed to advance the implementation of the energy agenda following the World Summit for Sustain- able Development (WSSD) held in Johannesburg in August, 2002, to review the achievements of the ETFP's since the last CG and to establish how to further leverage them. Post-WSSD: What Has Changed in the Global Environment? The Honorable Daudi Migereko, Minister of State for Energy, Uganda, emphasized the importance of energy for meeting the commitments related to access which were articulated at WSSD. He reminded the CG members of the harsh constraints faced by such countries as Uganda: insufficient incomes, food insecurity, environmental degradation, insufficient flow of funds for energy including the lack of financing for the private sector. Based on Uganda's experience in working towards these goals, he high- lighted the importance of high-level and sustained political commitment to energy development includ- ing to establish the incentive framework to mobilize the participation of the private sector. He also high- lighted opportunities offered by the use of decentralized energy sources, smart subsidies, low cost technologies, and innovative marketing approaches. He recommended a focus on major areas of energy demand, particularly the industrial and service sectors in rural areas which can generate income, create employment as well as sustainable demand for energy services. In presenting the perspective of bilateral donors, Mr. Peter Davies of the United Kingdom's Department for International Development (DFID), stated that WSSD had put energy back on the agenda with emphasis on how energy services contribute to development and not simply on generation and trans- mission infrastructure. DFID takes the view that the Millennium Development Goals (MDGs) cannot be met without energy services and has tailored its thinking and programs to focus on achieving the MDGs. In addition, he also underscored the importance of increasing the role of domestic local private sectors in developing countries to deliver energy services. Voicing the view of the international private sector, Jean-Etiene Klimt of the E7 informed the meeting that the E7 signed onto 26 partnerships at WSSD. As conditions of success for energy investments, he Annual Report 2003 45 emphasized the importance of a sound regulatory and legal framework, financial viability so that the investments can at least be maintained, support of local institutions, and coordination among devel- opment partners. He also commented that the private sector is hard pressed to get a planned return on investment of at least 15% (knowing that actual returns are likely to slip to around 7%). Presenting the perspective of the multilateral institutions, Ms. Susan McDade of the UNDP emphasized that while energy has risen to the top of the development agenda, it is still not sufficiently recognized as an issue cutting across other sectors. She pointed to the need for an international body (not housed in the UN system or in the World Bank) to continue to push the energy agenda since the inter-governmental process has already achieved what it could. Among the MDGs she highlighted the importance of MDG 8, which calls for partnerships, without which the MDGs are in danger of being seen as new forms of con- ditionality. For the international community, the challenge will be to maintain the momentum for action developed at WSSD. Discussion. The ensuing discussion was dominated by two issues: · how to capitalize on the opportunity for energy on the development agenda; and · how to increase the participation of the private sector in developing country energy sectors. The shift from energy infrastructure to access to energy services was welcome but the risk that the pen- dulum may swing too far may also arise: conventional infrastructure remains needed. The tension between renewable energy targets versus energy services targets was recognized as well as the need to make conventional energy more sustainable since the latter will continue to provide at least 80% of the needs for years to come. Clearly, without energy infrastructure, it would be difficult to ensure a flow of services. For Africa, this is an issue that the New Partnership for Africa's Development (NEPAD) will attempt to address. It was pointed out that the energy sector can learn from the water sector, which has greater global clarity on what needs to be done, more visible linkages with the MDGs, a systematic data- base of MDG-related indicators, and better organized players (like the Council of African Water Min- isters). The Netherlands also tabled the idea of a small group of recognized energy practitioners headed by a high profile international figure. The decline in international private sector investments from developing country energy markets since the late 1990s was contrasted with the significant future needs for infrastructure investments (in East Asia, infrastructure investment needs are projected at US$300bn per year over the next 5 years com- pared to global annual private investment in infrastructure of less than US$40bn at its peak in 1997). The major utilities from OECD countries have faced financial pressures at home and losses in develop- ing countries and are therefore receding from developing countries. It was argued that the focus on shareholder value defined by financial markets in home countries significantly reduces the time hori- zons of major American and European energy corporations. This reduced horizon makes them unsuit- able as investors in developing countries where longer time horizons for investments are needed. How- ever, the corporate priorities of international energy companies are only one reason for investment failures in developing countries. India's experience with international investment in the power sector has highlighted weak corporate and sector governance as more significant issues than the short time horizons of international corporations. The global experience points to the need for better project prepa- ration and better mitigation of commercial, regulatory, and currency risks. There was consensus that more is needed to engage local and smaller-scale private players who can play a complementary role 46 Energy Sector Management Assistance Programme to that of large players in increasing access to modern energy services. There is a need to develop instru- ments (including the financial and institutional mechanisms) for supporting their participation. Finally, the need to mobilize public resources more effectively to support partnerships with the private sector was highlighted as a key challenge in particular for the provision of rural energy services. Report of the Technical Advisory Group As acting moderator, Mr. Andrew Barnett presented the report of the Technical Assistance Group (TAG) to the CG. Mr. Barnett outlined the TAG's activities over the past year and reported the induction of Ms. Jyoti Parikh to the TAG. The TAG argued that a mix of developments has produced an opportunity for change in the Energy Trust Funded Programs (ETFPs). Significant developments outside the World Bank Group include energy being placed back on the political agenda for poverty reduction at WSSD and the inclusion of energy-related targets in the NEPAD agenda. Internally, the impending end of funding cycles to the ETFPs, the ASTAE review and the OED report on global trust funds managed by the World Bank have created an opportunity for institutional change. To highlight the changing agenda of the energy sector, the TAG cited the concern about the lack of foreign and local private flows to the power sector of developing countries and the emerging need for "a new discourse on the future of energy". This new discourse would have to reach beyond policy reform and strategic investors and revisit some technology issues such as the role of hydropower. The TAG stated that, while the energy trust-funded programs are doing valuable work, they can bene- fit from greater coherence and continuity. The TAG therefore proposed four essential tasks that the ETFPs could deliver: innovation, intellectual leadership (that is, promoting new ideas and new ways of thinking), knowledge management (that is, institutional learning), and specialized technical assistance. To implement these four tasks, the TAG proposed that the four ETFPs be consolidated into a single Energy Trust-Funded Program with four "facilities" or funding windows. Discussion. The debate about the value that would be added by the proposed consolidation was dom- inated by five considerations: · leveraging additional resource mobilization, · gaining from the synergy among the programs, · the risk of losing the regional relevance and proximity to Bank operations, · the pros and cons from the donors' perspective in terms of their ability to influence the strategic pri- orities for World Bank activities; and · possible economies in overhead costs. Following a rich debate during the three days of the CG, this proposal of a consolidated trust-funded program was not accepted by the CG. Instead, the counter-proposal submitted by Mr. Jamal Saghir was retained (see diagram). Consensus emerged around increasing coherence among the ETFPs through the World Bank's Energy and Mining Sector Board. The ETFP will consist of ESMAP, a regional program for Asia, and a regional program for Africa. Day-to-day management of the latter two will remain with the region. All programs will report, like ESMAP, to the Energy and Mining Sector Board, which will bear accountability for overall implementation of results. Each program will submit a business plan to the Sector Board and each program manager will report to the Sector Board every six months. Annual Report 2003 47 Figure A.1 Diagram of ETFPs' Accountability to the Sector Board Chair of Energy & Mining Sector Board and Chair of the CG Innovation Energy & Mining Sector Board (Oversight, Strategy) Intellectual Leadership Asia regional Africa regional Energy sector sector anchor management management management Knowledge Management East Asia Africa Global Energy Energy Thematic Special Technical Advice ACCELERATING THE IMPLEMENTATION OF THE WORLD BANK'S ENERGY BUSINESS RENEWAL STRATEGY Mr. Jamal Saghir outlined the challenges facing the global energy sector and how the World Bank Group's strategy is positioned to meet these challenges. The backdrop to the WSSD energy agenda is the declining interest of private investors in developing-country energy sectors, a decreasing faith in markets among policymakers, and high global energy costs. Mr. Saghir informed that the market for privately financed projects is likely to be more challenging in the coming years even as the investment needs of developing countries will continue to increase. Global energy costs have also risen with insta- bility in the Middle East and Venezuela, high energy intensity in transition economies, issues of rent distribution among energy-exporting countries, environmental constraints, and lagging investments in production. However, private capital can be attracted even to the least developed countries with improved project preparation, reduced (commercial, regulatory, foreign exchange, and sovereign) risk, greater flexibility on project structures by the World Bank, greater use of risk mitigation instruments, and greater access, in general, to IFI instruments. Mr. Saghir pointed out that after the international development meetings in Monterrey (March 2002), Doha (November 2001), and Johannesburg (September 2002), a shared strategic thinking has emerged on what the development community is trying to achieve--poverty reduction and growth--and how to achieve it. This shared thinking recognizes that the key factors that lead to poverty reduction and growth are: 48 Energy Sector Management Assistance Programme · country commitment to good policies, institutions, and governance · an international environment that increases the return on reform · greater and more effective aid to support reform; and · focus on the growth agenda while increasing investment as well as ODA. The Bank's energy strategy (2001) employs a framework with four priorities: direct poverty reduction, macro/fiscal stabilization, governance/private sector development, and environmental sustainability (including renewable energy). Mr. Saghir outlined how each of these priorities is being addressed by the World Bank Group through a growing number of lending interventions with energy components, growing volumes of financing, and increased leveraging of a mix of non-lending products (e.g., guar- antees, PCF, GEF financing, etc). The Bank Group is contributing to the goal of sustainable energy service delivery by working at key interfaces such as institutions (governments, service enterprises, and communities), financing mechanisms and efficient markets across the range of technologies. The WSSD energy agenda reinforces the World Bank's energy strategy by calling for increased access to modern energy services by the poor, improved targeting of subsidies, improved efficiency of energy use, and increased use of renewable energy. He argued that partnerships with all players are key for the successful implementation of the Bank's energy strategy. Discussion. The discussion focused on the need for a strategic approach and selectivity in reform-related interventions in developing countries. Mr. Saghir explained that the World Bank's interventions range from seed funding and technical assistance to countries considering reform; capacity building and some investment lending to countries that have already embarked on reforms; to a mix of lending and other instruments for countries deep along the reform path. The targeting of subsidies for effective delivery of energy services to the poor was also discussed. To help client countries in delivering targeted subsi- dies, the donor community and the IFIs need to develop terms of engagement with the public sector and support the design of subsidy schemes and delivery mechanisms. In the context of lower interest in energy investments by international private investors and the restrictions of the public sector in developing countries, the participation of the local private sector in energy service delivery was also discussed. Mr. Saghir pointed out that the World Bank is exploring ways to deliver local currency financing and lending at the sub-sovereign level to support the local private sector and also buttress the efforts of a decentralizing public sector. THE CHALLENGE OF SCALING-UP ENERGY SERVICES: GLOBAL VILLAGE ENERGY PARTNERSHIP (GVEP) Ms. Dominique Lallement, Program Manager of ESMAP and coordinator of the GVEP Technical Secre- tariat, presented a progress report on the implementation of the Global Village Energy Partnership (GVEP) since it was officially launched at WSSD. GVEP seeks to put in place a 10-year implementation-based partnership to reduce poverty and enhance economic and social development through the accelerated provision of modern energy services to the unserved and underserved. It will provide support to the development and financing of action plans for energy-poverty reduction, develop capacity of local insti- tutions, entrepreneurs, consumers groups; it will provide financing facilitation, knowledge management, and monitoring and evaluation related to its mission. More than 150 partner organizations from 41 coun- tries representing NGOs, the private sector, governments and multilateral institutions have now joined the partnership. The main outputs delivered to date include: GVEP's workshops on energy and poverty reduction (in Addis Ababa and Dakar, engaging 13 countries and over 200 participants), which are being followed up with national action plans in participating countries. GVEP's consultation workshop (Berlin) Annual Report 2003 49 on the need for a pre-investment fund for scaling up energy service delivery found that there is a need for pre-investment funding facilitation (but not for a new fund) and for risk mitigation instruments for complete investment cycle from idea to operations. GVEP hopes to support scale-up through incremen- tal resources mobilized by the technical secretariat and by individual partners as well as through large- scale investment and financing resources for energy service development. In his commentary, Mr. Peter Davies commended GVEP's impressive progress, in particular, its partic- ipatory and cross-sectoral approach, and the delivery of concrete products to partner countries, espe- cially in Africa. He pointed out that moving governments towards GVEP's goals was key since they are the most significant movers of change in most developing countries, and that country action plans need support from all stakeholders including bilateral donors. Discussion. Susan McDade commended GVEP as one of the few partnerships that is working and cited GVEP as an example of harmonious cooperation between the UNDP and the World Bank Group. She pointed to the importance of pre-investment funding and for developing bankable business models for rural energy service delivery. Ms. McDade underscored the need to address the skepticism that prevails among NGOs about post-WSSD implementation despite the commitment of the UNDP and the World Bank Group. The GEF-GVEP link needs to be developed. She tabled the issue of how long GVEP should remain within ESMAP. Mr. Jamal Saghir commended the Technical Secretariat for its work and tabled two issues related to GVEP on behalf of the World Bank Group: (1) that the World Bank Group is accountable for GVEP's performance but is not represented on the board of GVEP; and (2) that the GVEP Technical Secretariat should move to a developing country within the next three months. These issues would be discussed at the meeting of the GVEP Board in May; the World Bank would remain open to considering a reason- able timeline for the transfer of the Technical Secretariat. Other comments included i) the need to keep engaging the political levels in support of the partnership, ii) the need to maintain the spirit of what has been launched in terms of transparency and accountability for results, iii) the need to find a host institution for the Technical Secretariat as well as Board members with the right clout, and (iv) the need to coordinate with other initiatives particularly with the European Union Rural Energy Initiative. OVERVIEW OF THE ENERGY TRUST-FUNDED PROGRAMS Africa Regional Program Mr. Ananda Covindassamy, the World Bank's Africa Energy Sector Manager, presented the Bank's Africa strategy for energy and poverty reduction. He stated that the Bank has mainstreamed biomass and rural/renewable energy into its Africa portfolio. He pointed to the increase in rural/renewable energy projects in the Africa portfolio and the quadrupling of staff allocation to rural energy since 1999. In biomass, the work has been in policy advice activities and the design of components in Bank lend- ing operations. The Bank's regional energy strategy will support high risk/high reward projects where the Bank can play a catalytic role; integration of regional energy systems will be given priority, and the Bank will support the formulation of energy strategies by client countries themselves. Mr. Covin- dassamy outlined annual outcome indicators for better delivery of energy services. While the Bank is allocating more of its own resources to expand investments in these areas, if these funds can be lever- aged with donors' contributions, there would a significant difference in outcomes. 50 Energy Sector Management Assistance Programme Mr. Praful Patel, the World Bank's Sector Director for Private Sector and Infrastructure in Africa, iden- tified three levels at which rural/renewable energy and biomass have been mainstreamed: coverage across the continent rather than in a few pilot countries, leverage for every World Bank dollar through co-financing, and the focus of measurements on outcomes. These agendas are being mainstreamed as they get systematically inserted into the Poverty Reduction Strategy Papers (PRSPs). The Africa energy team is closely working with NEPAD. He emphasized that the client need clearly exists, and with donor support, the Bank can do more. AFRICA RURAL AND RENEWABLE ENERGY INITIATIVE (AFRREI) Mr. Arun Sanghvi, Progam Manager for AFRREI, stated that AFRREI has helped bring a major change in thinking about rural electrificaton even though it has taken more time and resources than had been envisaged. The AFRREI paradigm is gaining acceptance by client countries in Africa as well as outside Africa. Mr. Sanghvi pointed out that, contrary to concerns raised earlier, the Uganda Energy for Rural Transformation project is not facing hurdles due to complexity because the Government of Uganda fully embraces and owns the project. After AFRREI's initial approach of large changes in a few pilot countries, a new approach is now needed to make incremental changes in many countries and donors can make a significant contribution towards consolidating and mainstreaming successful innovations in rural electrification. AFRREI has an exit strategy for FY03-FY05 during which new AFRREI projects will be undertaken. Any additional resources for introducing or mainstreaming innovation in rural elec- trification projects will be managed by the Africa energy unit. In his commentary, Mr. Jean-Paul Laude of DANIDA, Denmark, commended AFRREI for introducing a paradigm shift in rural/renewable energy and helping mainstream it into the World Bank's operations. This experience needs to be shared with the development community particularly on how risk can be shared and how the local banking sector can be leveraged. Even though the Uganda project took more time and resources than anticipated, DANIDA considers the work to be on the right track. The Uganda delegation recognized AFRREI's catalytic role in fertilizing Uganda's thinking about oper- ationalizing the rural electrification agenda which had been developed with ESMAP support in 1996. It acknowledged that pioneering the multi-faceted approach of the Energy for Rural Transformation project has not been easy but the experience has strengthened inter-ministerial coordination. The proj- ect is now beginning to move and Uganda needs donor support in capitalizing its rural electrification fund. The delegation urged the Bank to address with the IMF and others the issue of banking regula- tion, which constrains the ability of local banks to finance energy companies. It also expressed grati- tude on the part of Uganda to the World Bank, AFRREI, and ESMAP for their support. REGIONAL PROGRAM ON THE TRADITIONAL ENERGY SECTOR (RPTES) Mr. Boris Utria, Program Manager of RPTES, stated that the main achievement of RPTES over the past ten years is a revival and mainstreaming of the biomass energy agenda in Africa and within the World Bank and other donors. The World Bank's biomass energy portfolio has increased from $20m in 1996 to some $120m in 2003. The Millennium Gelfuel Initiative is one of RPTES' innovations for which three commercial plants are already operational in Zimbabwe, South Africa and Malawi with interest from 20 other countries. The strategic agenda for traditional biomass in Africa is already set while the mod- ern biomass agenda is still evolving and needs further work. Within this context, AFTEG will under- Annual Report 2003 51 take a work program of traditional and modern biomass activities that will include the following main five activities: (1) traditional energy sector: "Final Sustainability Demonstration" (2) national biomass energy inventory and sustainable development strategy (Senegal and Ethiopia, three countries per FY thereafter); (3) biomass energy investments for poverty alleviation (assistance to Bank operational task teams within PRSPs and CAS context); (4) knowledge management and capacity development on bio- mass energy, poverty alleviation and climate change nexus; and (5) RPTES Program exit strategy (selec- tive support to UEMOA and SADC organizations to accelerate the participation of African institutions in the delivery of program activities). Discussion. The ensuing discussion about the Africa energy strategy and regional program presenta- tions was dominated by the definition of "mainstreaming" of rural/renewable energy and biomass into the World Bank's operations. The Africa energy team clarified that mainstreaming implies that (i) a new approach to energy access in Africa has been developed, (ii) an analytical foundation has been estab- lished (iii) every new energy project in Africa explores how renewables and biomass can be included, and (iv) awareness about these agendas has been raised. Biomass and renewable energy are important pillars of the Minimum Infrastructure Platform as well. The discussion also touched upon the need to integrate forestry and land use policies with energy policies since biomass will remain a source of energy for decades to come and biomass can generate significant incomes for the poor. It was also pointed out that the focus of interventions in Africa has to be on rural energy rather than only rural electrification. ASIA ALTERNATIVE ENERGY PROGRAM (ASTAE) Mr. Noureddine Berrah, Lead Energy Specialist in the World Bank's East Asia energy team, presented ASTAE's ongoing projects particularly in Sri Lanka and China. He emphasized that ASTAE support goes beyond projects into building consensus and developing analytical methodologies. He outlined the Energy, Poverty and Gender (EnPoGen) study that has done case studies of ASTAE projects in China, Sri Lanka, and Indonesia to explore linkages between access to electricity, poverty alleviation, and gen- der equity. Its key finding is that electricity, even in small quantities, has significant impacts on qual- ity of life and gender equity that can be achieved through alternative energy technologies where they are least cost. Mr. Berrah also outlined ASTAE's Energy Efficiency and Water Supply Utilities project (Hubei province, China) which the Chinese government is asking the Bank to present to water utilities in other provinces. Mr. Christian Delvoie, Sector Director of the World Bank's East Asia Infrastructure Department, out- lined the East Asia energy strategy and ASTAE's place in it. Each segment of the East Asia energy mar- ket demands a different mix of World Bank business. The Bank is doing capacity building and institu- tion building in the IDA countries (Cambodia and Laos), supporting restructuring in the "crisis countries" (the Philippines and Indonesia), taking a programmatic approach in the fast-growing coun- tries (China and Vietnam), and providing top-notch technical advice to the "graduated countries'"(Thai- land and Malaysia). Policymakers in East Asia are demanding a coherent paradigm from the World Bank for addressing both growth and poverty. Alternative energy has to be seen within the perspective of this wider agenda. ASTAE has a strong track record for mainstreaming alternative energy in Asia, particularly influencing government strategies in the Philippines, China, and Vietnam with regard to renewables. East Asia is the biggest user of GEF funding today. The findings of the Management Review of ASTAE conducted over the past year sup- 52 Energy Sector Management Assistance Programme ports the broad impact of ASTAE. In addition, alternative energy is mainstreamed in the World Bank's East Asia operations but not yet in all client countries. Mr. Delvoie tabled three key issues related to the future focus and configuration of ASTAE for the con- sideration of the donors. First, on ASTAE's focus, he proposed that the definition of Alternative Energy should be broadened to include the poverty/access agenda. Second, on ASTAE's institutional location, he tabled ASTAE as a window in ESMAP or as a window in (East) Asia. The East Asia team has a pref- erence for the latter (South Asia would also be covered while the program management will remain located in East Asia). Finally, on management modalities, he proposed to shift from a unit with dedi- cated staff separate from the Asia Energy Practice to a "multi-donor program/partnership" to promote alternative energy which is now recognized as an important business segment within the Asia energy practice. A coordinator would be recruited on a "co-terminus" basis to manage the program with more autonomy to promote the program agenda and achieve optimal use of funds. Ms. Penelope Brook, the World Bank's Energy Sector Manager for South Asia, emphasized that sector reform and governance were at the center of the Bank's energy sector agenda in South Asia, given the high cost to the economy of tariff distortions and highly inefficient systems. The alternative energy agenda is deeply constrained by the slow progress on sector reform and governance. As a consequence, the South Asia team pulled back from the ASTAE program over the past year as it was unable to lever- age the contribution it was making to ASTAE. The South Asia team continues to make efforts to nest the alternative energy and access agenda in sector reform. In his commentary, Mr. Paul Hassing of DGIS, the Netherlands, expressed disappointment at the past year's miscommunications between the World Bank East Asia energy team and DGIS regarding ASTAE's management. He noted that the issues have since been resolved and a new ASTAE strategy for the next 4 to 5 years is now under development after time lost due to the miscommunications. The Bank team apologized for the miscommunication and expressed satisfaction that the outstanding issues have since been resolved. The definition of Alternative Energy was also debated with the ASTAE team stating that it has used the term to mean renewable energy and energy efficiency. A new definition could exploit the synergy between renewable energy and access. There was broad agreement that a wider definition of Alterna- tive Energy should be considered in developing a medium term strategy for ASTAE. The location of ASTAE in East Asia while covering both East Asia and South Asia was accepted. ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAM (ESMAP) The ESMAP team--Ms. Dominique Lallement, Program Manager of ESMAP, Ms. Xiaodong Wang, and Mr. Kazim Saeed--gave a strategic overview of implementation progress on ESMAP's Business Plan 2002-2004. During 2002, the energy-poverty portfolio grew 30% in value, and the Africa portfolio grew to 25% of the portfolio in number of projects. Highlights from the ESMAP portfolio ranged from inno- vative rural service delivery mechanisms developed in Bolivia, the multi-sectoral and multi-country approach that has led towards power trade in the Nile Basin, to technical assistance on energy effi- ciency to water utilities in Brazil. Efficiency and quality improvements in ESMAP's proposal process have included reducing the proposal cycle from six months to ten weeks and leveraging selected activ- ities closer to operations. Ms. Lallement pointed out that ESMAP has made downward adjustments in Annual Report 2003 53 its funding requirements given the gaps between the funding requirements listed in ESMAP's Business Plan 2002-2004 and the pledges from donors to date. She outlined the new agenda issues that ESMAP is beginning to address: operationalizing the energy-poverty agenda (in Africa and South Asia), the urbanization challenge, public/private partnerships, energy security, measuring results and evaluating impacts. In his commentary, Mr. Peter Davies of DFID, the United Kingdom, commended ESMAP for its unique convening power and reputation for intellectual leadership in the energy community. ESMAP has con- sistently been able to retain a strategic vision underlying its specialized assistance and has kept an eye on the development impact of each activity. Much of the Bank's evolving thinking in energy has emerged from ESMAP work. Currently, important issues that should draw ESMAP's attention are: the reduction in the interest of global markets in developing countries, international energy security, and regional energy cooperation. Mr. Davies expressed disappointment with the limited growth of the Africa portfolio given that it was expected to double in the past year. To increase ESMAP's efforts in generating its portfolio along its business plan, he pointed to the possibility of an even more pro-active approach to include more of client country concerns in particular. He also tabled the question of whether the cost of managing ESMAP (5% of annual contributions) was too low to allow the ESMAP management team to provide institutional leadership. During the general discussion, donors echoed satisfaction with ESMAP's intellectual leadership on key issues and reiterated the need for greater work on Africa. ESMAP's high level of administrative effi- ciency was identified as a possible constraint on the program's ability to deliver more. The donors urged ESMAP to increase its staffing in order to increase its ability to provide intellectual leadership. The Netherlands expressed concern about the stagnant number of donors at ESMAP (Netherlands con- tributes 41% of funding) and appealed to other donors to consider increasing their contributions to ESMAP. It was agreed that ESMAP's management and all donors would make additional efforts to broaden the donor base. Greater measurement of the impact of ESMAP activities, more accurate clas- sification of activities in the ESMAP portfolio, and reduction in the lag between the completion of each activity and the publication of its report were also pointed out as areas of further development. Donors also raised the need for new ideas, greater innovation, and for commissioning state-of-the-art activi- ties rather than relying so extensively on the call for proposals process. CONSOLIDATED BUSINESS PLAN OF ENERGY TRUST-FUNDED PROGRAMS Mr. Jamal Saghir presented a Consolidated Business Plan for 2004-2006 for the four ETFPs in response to the donors' request at the 2002 CG meeting for a coherent plan encompassing all the programs. Under a consolidated plan, the Africa energy group will continue to promote innovation and mainstreaming of access to modern energy, alternative energy, and biomass (traditional and modern) in order to expand its energy operations. The Asia group (both East Asia and South Asia) will continue to use the ETFP to support preparation and implementation of World Bank lending programs for the scaling up of alter- native energy in innovative projects with strong poverty alleviation impacts. ESMAP will continue to implement the strategy and business lines of its Business Plan 2002-2004. All programs will take into account the four dimensions proposed by the TAG: intellectual leadership, innovation, knowledge man- agement, and specialized technical assistance. 54 Energy Sector Management Assistance Programme A total funding requirement of US$72.1m for all four programs for 2004-2006 was tabled. Of this, the World Bank committed to provide US$19m. Against the US$53.1m sought from donors, pledges at this CG meeting totaled US$19.1m. Mr. Saghir emphasized that the World Bank is committed to providing its portion of the funding to the ETFPs but the targets set for these programs may not be achievable without the additional contributions sought from donors. Many donors expressed their need for more detailed workplans for Africa and Asia to be submitted well ahead of the donor meeting before greater commitments of funding could be made. Governance Ms. Anne-Charlotte Malm of SIDA, Sweden, presented the donors' views on the governance of the ETFPs and their expectations from the ETFPs as a whole. She stressed the importance of a clear, effi- cient and focused overall program which has the same objectives as the donors including what they are doing bilaterally. Through their involvement in the ETFPs, the donors would like to complement their own policy dialogues with developing countries and influence the World Bank's operations. The donors look to the World Bank for suggestions about how to improve the performance of each program. From the donors' perspective, it is crucial to receive a clear and complete picture of the World Bank's activ- ities, including regular evaluations. This, in turn, would make it easier for these programs to be mar- keted to other donors. The donors would also like to see greater involvement of client countries possi- bly through interviews by the TAG or members-at-large of the client country policymakers. Overall, donors consider the CG meetings a very useful forum to learn about the ideas, activities and experience of the World Bank Group and other donors. In the ensuing discussion, there was consensus that more client country representatives need to be invited to the CG meetings. Donors welcomed the participation of the Uganda delegation. The Uganda delegation expressed its appreciation for the opportunity to gain insight into the funding process so that they can develop more accurate expectations about funding. The Bank requested donors to sug- gest client country representatives who should be invited to subsequent CG meetings. While donors took the view that the CG has smoothly evolved from an ESMAP CG to a joint CG for all four ETFPs, there was broad agreement that more donors are needed in this CG. The need for a high- level forum to discuss energy issues and define the agenda (and play a role similar to the World Water Council in the water sector) was also reiterated. The World Bank's Energy Forum was mentioned as a possible platform for such a group to meet. Annual Report 2003 55 56 Energy Sector Management Assistance Programme ANNEX 2: Activities Completed, Launched and Ongoing in 2003 LAUNCHED PROJECTS IN 2003 Funds Funds Project Title Country/Region Task Manager Approved Allocated Status Exploring Opportunities for Improving Rural Energy Access Afghanistan Imran $50,000 $0 Under Implementation Enhancing Access and Rural Electrification--Costs and Pakistan Haider $50,000 $0 Under Implementation benefits, and Willingness to Pay Extending the Use of Gas to Inland Peruvian Provinces Peru Alba $10,000 $10,000 Under Implementation Resource Funds: A comparative Analysis (Revenue Global Tordo $148,300 $50,000 Under Implementation Management Proposal) Landfill Gas Utilization in Sub-Saharan Africa AFR Takahashi $5,000 $5,000 Under Implementation LCR Subsidy Review Study LCR Rysankova $50,000 $50,000 Under Implementation AFTEG Rural and Renewable Energy AFR Sanghvi $1,000,000 $383,583 Under Implementation Innovative Energy Efficiency Financing Mechanism Poland Lamech $300,000 $200,000 Under Implementation Alleviating Urban Energy Poverty in Latin America: Brazil Bacon $50,000 $50,000 Under Implementation The Brazilian Case Provision of Energy Services to the Poor Tajikistan Sharma $350,000 $300,000 Under Implementation Guidelines for Designing Energy Modules in Multi-Topic Global O'Sullivan $275,000 $100,000 Under Implementation Household Surveys Energy, Population and Environment Program LCR Alba $50,000 $50,000 Under Implementation GVEP Technical Secretariat Transition Global Lallement $82,600 $82,600 Under Implementation Annual Ghana Energy PSIA of Energy Sector Reforms Ghana Keener $50,000 $50,000 Under Implementation Infrastructure Services to the Rural Poor Mongolia Rivera $260,000 $260,000 Under Implementation Report Multisectoral Operational Plan to Maximize Poverty Senegal Gouvello $100,000 $100,000 Under Implementation 2003 Reduction Impact of Rural Electrification in Senegal Innovative Financing Mechanism for Energy Efficiency Mexico Feinstein $250,000 $250,000 Under Implementation Energy Sector Strategy for Poverty Reduction and Growth Djibouti Bjerde $198,674 $198,674 Under Implementation Diesel Pollution Reduction Strategies for Cities EAP/LCR Shah $250,000 $199,786 Under Implementation Promoting Productive Uses of Electricity in Rural Areas AFR Sanghvi $195,000 $195,000 Under Implementation Pakistan--Household Impact Analysis of the Energy Sector Pakistan Kojima $125,000 $125,000 Under Implementation Reform 57 Strategy to Expand Gas Distribution and Utilization Turkey Lamech $150,000 $150,000 Under Implementation Greater Mekong Sub-region Power Trade Strategy Meeting EAP Trembath $50,000 $50,000 Under Implementation Funds Funds 58 Project Title Country/Region Task Manager Approved Allocated Status Impact on the poor of the Electricity Sector Reform in the Lesotho Pawlowska $50,000 $50,000 Under Implementation Kingdom of Lesotho Second World Forum on Energy Regulation Global Tenenbaum $85,000 $85,000 Under Implementation Toolkit for Scaling up Rural Energy Access Global Cabraal $50,000 $50,000 Under Implementation Review of ESMAP's Energy Sector Reform and Market Global Saeed $20,000 $20,000 Under Implementation Energy Development Work Expanding SME Outsourcing Opportunities from Utility AFR Armar $45,000 $45,000 Under Implementation Sector Sector Reform--A Survey of Eastern and Southern Africa Management Knowledge Transaction: Reducing Energy Costs in Water Global Armar $50,000 $50,000 Under Implementation Supply Operations Women in Mining Voices for Change Conference Global Strongman $49,900 $49,900 Publication in Process Developing a Sectoral Energy Poverty Index Global Sanghvi $50,000 $50,000 Under Implementation Assistance Central Africa Energy and Poverty Workshop, Cameroon, Cameroon Lallement $200,000 $200,000 Publication in Process Chad, Congo, Cote d'Ivore, Madagascar, and Niger Programme Revenue Management Seminar Chad Tordo $15,000 $15,000 Publication in Process Regional Workshop At Sidi Bernoussi, Morocco Morocco Mendonca $95,710 $70,710 Under Implementation Dissemination of the Results of the ESMAP Sidi Bernoussi Industrial Park Study Conference to Promote Low-cost Electricity Distribution AFR Cosgrove-Davies $15,000 $15,000 To be Closed and Reticulation Networks in Peri-urban and Rural Africa Capacity Building for the Electricity Authority Cambodia Sekse $101,000 $101,000 Under Implementation Improved Heating Stoves and Health Impact on Low Mongolia Kaufmann $30,000 $30,000 Under Implementation Income Consumers Scoping Study for Voluntary Green Electricity Schemes in China Berrah $50,000 $50,000 Under Implementation Beijing and Shanghai Renewable Energy Practitioner Workshop in South Asia SAR Cabraal $100,000 $100,000 To be Closed Energy Sector Strategy Ghana Iyer $50,000 $50,000 Under Implementation Assessment of Power Sector Reform Priorities in Selected AFR Gaba $150,000 $150,000 Under Implementation Countries in Sub-Saharan Africa: A Survey of African Power Sector Decision-makers Rural Electrification Policy Development and Conceptual Papua New Guinea Pham $300,000 $300,000 Under Implementation Design of Energy Services Delivery Projects to Improve Rural Health and Education Service Delivery Africa Rural and Renewable Energy Initiative (AFRREI) AFR Sanghvi $200,000 $200,000 Under Implementation TOTAL $5,756,184 $4,541,253 COMPLETED PROJECTS IN 2003 Funds Funds Project Title Country/Region Task Manager Approved Allocated Status Economic Assessment of the Experience of Multi-Functional Platforms in Mali and design of an operational MFP program for the Senegal Rural Electrification Project Mali/Senegal Gouvello $50,000 $0 Withdrawn Energy Efficiency in Medium and Small Water Supply Utilities Brazil Armar $159,845 $159,845 Closed Removing Obstacles to Cross-Border Oil and Gas Pipelines Global Bacon $335,000 $314,772 Closed Oil Spills Occurrence Database, Modeling, Remediation and Prevention ECA Oduolowu $49,246 $49,246 Closed Petroleum Transportation Corridors AFR Alba $150,659 $150,659 Closed Solar Market Development Comoros Plas $168,120 $168,120 Closed Energy Efficiency Program Mongolia Rivera $58,625 $58,625 Closed Multilateral Energy Sector Assistance to the EU Accession Countries ECA Hamso $33,866 $33,866 Closed Reservoir Management Workshop and Upstream Fiscal Systems Vietnam Svensson $66,000 $66,000 Closed Ecuador--Indigenous people's Training Program on Oil Development Projects Ecuador Alba $298,636 $298,636 Closed Household Energy, Air Pollution and Health India Lvovsky $119,122 $119,122 Closed Power Sector Regulation and Electricity Law Vietnam Lamech $324,571 $324,571 Closed Energy Development Report 2001 Global Spencer $16,379 $16,379 Closed Evaluation of Bank Experience with Integrated Rural Electrification Projects--Seed Funding LCR Rysankova $5,276 $5,276 Closed Mitigation of Environmental and Social Impact of Oil and Gas Operations LCR Alba $170,159 $170,159 Closed Annual Reducing Emissions from Three Wheeler Two-Stroke Engine Taxis Bangladesh Brandon $88,016 $88,016 Closed Lead Phaseout Initiative Vietnam Johnson $92,673 $92,673 Closed Report Energy-Environment Strategy Bulgaria Zaheer $221,936 $221,936 Closed Refining Industry in LCR--Sector Reform and Fuel Quality 2003 Improvement LCR Alba $489,675 $489,675 Closed Global Financing of Decentralized Rural Electrification Global Floor $4,808 $4,808 Closed Clean Coal Technology (Phase I) China Takahashi $79,799 $79,799 Closed Dissemination on Environmental Issues in the Power Sector India Imran $396,289 $396,289 Closed TOTAL $3,378,700 $3,308,472 59 60 ONGOING PROJECTS IN 2003 (AS OF 2/10/04) Funds Funds Project Title Country/ Region Task Manager Approved Allocated Energy Publications in Process (36) Women in Mining Voices for Change Conference Global John E. Strongman $49,900 $49,900 Sector Central Africa Energy and Poverty Workshop (Cameroon, Chad, Congo, AFR Dominique M. Lallement $200,000 $200,000 Management Cote d'Ivore, Madagascar, Niger) Revenue Management Seminar Chad Silvana Tordo $15,000 $15,000 Water & Sanitation and Energy Public Private Partnership Operator MENA Anna Bjerde $60,000 $60,000 Assistance and Investor Workshop MENA Anna Bjerde $60,000 $60,000 Mainstreaming Gender into Energy Projects Global Waafas Ofosu-Amaah $7,000 $7,000 Energy and Poverty Workshop (Francophone) AFR Dominique M. Lallement $250,000 $250,000 Programme Clean Fuels Africa Project: Phasing Out Leaded Gasoline in AFR Eleodoro O. Mayorga Alba $256,997 $256,997 SSA Importing Countries Nigeria LPG Market Development and Access Expansion Nigeria Mourad Belguedj $345,756 $345,756 Capacity building for national and provincial socially and China Charles A. Husband $350,000 $350,000 environmentally sustainable management of coal resources in China Global Village Energy Partnership (GVEP) Global Dominique M. Lallement $686,441 $686,441 Petroleum Revenue Management Conference Global Charles P. McPherson $238,204 $238,204 Health Impacts of Traditional Fuel Use Guatemala Kulsum Ahmed $197,475 $197,475 Initiating the Bank's Peri-Urban/Rural and Renewable Energy Activities Nigeria Malcolm Cosgrove-Davies $45,000 $45,000 CDM-assist: A Collaborative Program to Build CDM Capacity in Africa AFR Mangesh Hoskote $49,987 $49,987 Energy Efficiency in Urban Water Utilities in Central Asia: Central Asia Ede Jorge Ijjasz-Vasquez $137,184 $137,184 The Uzbekistan Case. India--Environmental Policies for the State Power Sector-- India Mudassar Imran $222,750 $222,750 Rapid Assessment for Karnataka and Rajasthan Household Energy and Women's Lives: The Case of India India Douglas French Barnes $49,951 $49,951 Central America Gender in Sustainable Energy LCR Jean-Claude Balcet $225,000 $225,000 Heat Strategies in Low-Income Transition Countries ECA Sumter Lee Travers $293,291 $293,291 Armenia Key Aspects of Energy-Environment/GHG Strategy Macedonia James Sayle Moose $56,070 $56,070 Petroleum Sector Review Nigeria Charles P. McPherson $59,664 $59,664 Training Program for Key Group Representatives From Indigenous People Regional Organizations/Rural Energy Development, Phase II Bolivia Eleodoro O. Mayorga Alba 857616 857616 Global Efficiency in Sidi Bernoussi Industrial and Peri-Urban Area Morocco Rene G. Mendonca $340,000 $340,000 Energy Efficiency Operational Exchange Program Global Robert P. Taylor $299,907 $299,907 Opportunity for Women in Renewable Energy Technology Utilization Bangladesh Nilufar Ahmad $188,979 $188,979 (Phase I) Energy Sector Regulation (incl gas proj) Poland Rachid Benmessaoud $560,172 $560,172 Opportunities for International Power Trade in the Nile River Basin I AFR Mangesh Hoskote $515,089 $515,089 Energy Sector Reform--Phase I Mexico Charles M. Feinstein $402,000 $390,446 South Africa Workshop--People's Power Workshop South Africa Arun P. Sanghvi $35,000 $35,000 Coal Stove Improvement Program Mongolia Kazim M. Saeed $50,000 $50,000 Country Programme--Phase II Bolivia Philippe J-P. Durand $1,330,846 $1,330,846 National Biomass Programme Bolivia Philippe J-P. Durand $2,569,113 $2,569,113 Rural Electrification & Power Reform in Central America LCR Douglas French Barnes $302,000 $305,539 Malawi: Rural Energy Development Malawi Mangesh Hoskote $270,705 $270,705 Regional Electricity Demand Management TA--Phase II AFR Kazim M. Saeed $101,823 $101,823 Decentralized Rural Electrification Cameroon Kazim M. Saeed $249,999 $249,999 Under Implementation (88) Exploring Opportunities for Improving Rural Energy Access Afghanistan Mudassar Imran $50,000 $0 Enhancing Access and Rural Electrification--Costs and benefits, and Pakistan Waqar Haider $50,000 $0 Willingness to Pay Extending the Use of Gas to Inland Peruvian Provinces Peru Eleodoro O. Mayorga Alba $10,000 $10,000 Resource Funds: A comparative Analysis (Revenue Management Global Silvana Tordo $148,300 $50,000 Proposal) Annual Innovative Energy Efficiency Financing Mechanism Poland Ranjit J. Lamech $300,000 $200,000 Ghana Energy PSIA of Energy Sector Reforms Ghana Sarah Keener $50,000 $50,000 Report Alleviating Urban Energy Poverty in Latin America: The Brazilian Case Brazil Robert W. Bacon $50,000 $50,000 LCR Subsidy Review Study LCR Dana Rysankova $50,000 $50,000 2003 61 62 Energy Funds Funds Project Title Country/ Region Task Manager Approved Allocated Sector Infrastructure Services to the Rural Poor Mongolia Salvador Rivera $260,000 $260,000 Provision of energy services to the poor in Tajikistan Tajikistan Raghuveer Y. Sharma $350,000 $300,000 Management AFTEG Rural and Renewable Energy AFR Arun P. Sanghvi $1,000,000 $383,583 Multisectoral operational plan to maximize poverty reduction impact Senegal Christophe de Gouvello $100,000 $100,000 of rural electrification in Senegal Assistance Innovative Financing Mechanism for Energy Efficiency Mexico Charles M. Feinstein $250,000 $250,000 Guidelines for Designing Energy Modules in Multi-Topic Household Global Kyran O'Sullivan $275,000 $100,000 Programme Surveys Energy Sector Strategy for Poverty Reduction and Growth Djibouti Anna Bjerde $198,674 $198,674 Energy, Population and Environment Program LCR Eleodoro O. Mayorga Alba $50,000 $50,000 GVEP Technical Secretariat Transition Global Dominique M. Lallement $82,600 $82,600 Diesel Pollution Reduction Strategies for Cities EAP/LCR Jitendra J. Shah $250,000 $199,786 Promoting Productive Uses of Electricity in Rural Areas AFR Arun P. Sanghvi $195,000 $195,000 Pakistan--Household Impact Analysis of the Energy Sector Reform Pakistan Masami Kojima $125,000 $125,000 Strategy to Expand Gas Distribution and Utilization in Turkey Turkey Ranjit J. Lamech $150,000 $150,000 Greater Mekong Sub-region Power Trade Strategy Meeting EAP Barry Trembath $50,000 $50,000 Impact on the poor of the Electricity Sector Reform in the Kingdom of Lesotho Agata Pawlowska $50,000 $50,000 Lesotho Second World Forum on Energy Regulation Global Bernard W. Tenenbaum $85,000 $85,000 Toolkit for Scaling up Rural Energy Access Global R. Anil Cabraal $50,000 $50,000 Review of ESMAP's Energy Sector Reform & Market Development Work Global Kazim M. Saeed $20,000 $20,000 Expanding SME Outsourcing Opportunities from Utility Sector Reform-- AFR Amarquaye Armar $45,000 $45,000 A Survey of Eastern and Southern Africa Knowledge Transaction: Reducing Energy Costs in Water Supply Global Amarquaye Armar $50,000 $50,000 Operations Developing a Sectoral Energy Poverty Index Global Arun P. Sanghvi $50,000 $50,000 Regional Workshop At Sidi Bernoussi, Morocco Dissemination of the Morocco Rene G. Mendonca $95,710 $70,710 Results of the ESMAP Sidi Bernoussi Industrial Park Study Assessment of Power Sector Reform Priorities in Selected Countries in AFR Kwawu Mensan Gaba $150,000 $150,000 Sub-Saharan Africa: A Survey of African Power Sector Decision-makers Capacity Building for the Electricity Authority Cambodia Rebecca C. Sekse $101,000 $101,000 Landfill Gas Utilization in Sub-Saharan Africa AFR Masaki Takahashi $5,000 $5,000 Design and Pilot Testing of Capacity Building Product line for SME AFR Amarquaye Armar $150,000 $150,000 Utility Service Providers in West Africa Improved Heating Stoves and Health Impact on Low Income Consumers Mongolia Rachel Kaufmann $30,000 $30,000 Scoping Study for Voluntary Green Electricity Schemes in Beijing and China Noureddine Berrah $50,000 $50,000 Shanghai Energy Sector Strategy Ghana Subramaniam V. Iyer $50,000 $50,000 Rural Electrification Regulation Framework Philippines Selina Wai Sheung Shum $230,000 $230,000 Rural Electrification Policy Development and Conceptual Design of Papua New Guinea Anh Nguyet Pham $300,000 $300,000 Energy Services Delivery Projects to Improve Rural Health and Education Service Delivery Development of Pro-poor National Heat Pricing and Billing Policy China Robert P. Taylor $249,880 $249,880 Africa Rural and Renewable Energy Initiative (AFRREI) AFR Arun P. Sanghvi $200,000 $200,000 Rural Infrastructure in Chile: Improving Efficiency and Reaching LCR Jennifer J. Sara $15,000 $15,000 the Poor Governance of National Oil Companies Global Charles P. McPherson $10,000 $10,000 Rationing Energy in a "Rational" Way Global Luiz T. A. Maurer $50,000 $50,000 Expanding Rural Access to Infrastructure Nigeria Malcolm Cosgrove-Davies $48,000 $48,000 Power Sector Reform in Africa: Assessing the Impact on the Poor and AFR Robert W. Bacon $186,000 $186,000 Influencing Policy Decisions Energy Poverty and Access Yemen Kyran O'Sullivan $447,980 $320,000 Annual Sustainable and Efficient Energy Use to Alleviate Indoor Air Pollution China Enis Baris $1,110,000 $447,168 in Poor Rural China Report Stimulating the Market for Family-Hydro for Low-Income Households Ecuador Philippe J-P. Durand $141,000 $141,000 Source Apportionment of Fine Particulates in Developing Countries Global Todd M. Johnson $295,000 $295,000 2003 Village Power Partnership for Latin America and the Caribbean LCR Dana Rysankova $210,740 $210,740 (VPP-LAC) Policy and Strategy for the Promotion of Renewable Energy Resources Nicaragua Clemencia Torres $250,000 $250,000 63 64 Energy Funds Funds Project Title Country/ Region Task Manager Approved Allocated Sector Pioneering New World Bank Approaches in Support of Sustainability Global Jeffrey Davidson $210,000 $210,000 in the Extractive Sector Management Capacity Building and Policy Assessment in Indoor Air Pollution Global Todd M. Johnson $45,900 $45,900 Women's Energy Enterprise:Developing a Model for Mainstreaming Ghana Kofi-Boateng Agyen $70,000 $35,287 Gender Into Modern Energy Service Delivery Assistance Good Practice Case Study in Integrating Environment into Gas and Oil Bolivia/Brazil Juan D. Quintero $117,000 $117,000 Pipeline Projects: Experiences Based on the Bolivia-Brazil Gas Pipeline Programme Regional Approaches to Energy Sector Reform and Renewable Energy LCR Charles M. Feinstein $160,000 $60,000 Development in Small Island Economies Opportunity for Women in Renewable Energy Technology Utilization in Bangladesh M. Iqbal $220,000 $220,000 Bangladesh (Phase II) Energy From Landfill Gases for the LAC Region: Best Practice and LCR Horacio Terraza $694,664 $533,092 Social Issues Workshop on Rural Energy and Sustainable Development Cote d'Ivoire Koffi Ekouevi $10,000 $10,000 Azerbaijan--Natural Gas Sector Restructuring and Regulatory Reform Azerbaijan Alan F. Townsend $230,000 $230,000 Lessons on Offgrid Electricity, Business Development Services and Nicaragua Marialisa Motta $15,000 $15,000 Microcredit (Seed Funding) Energy Efficiency in Water Utilities--Seed Funding China Salvador Rivera $9,993 $9,993 Cambodia--Renewable Energy Action Plan Cambodia Rebecca C. Sekse $308,000 $308,000 Regulatory Issues of Off-Grid Energy Service Delivery as Part of LCR Clemencia Torres $150,000 $150,000 National Rural Rlectrification Strategies Access of the Poor to Cleaner Household Fuels in India India Kseniya Lvovsky $100,000 $100,000 Technical Assistance to Proposed Expansion of Solar-Net Village Honduras Clemencia Torres $197,000 $187,000 Program China: Policy Advice on Implementation of Clean Coal Technology China Masaki Takahashi $50,000 $50,000 projects. Phase II LCR--Low Income Energy Assistance LCR Quentin T. Wodon $150,000 $150,000 Brazil--Rural Electrification Strategy Brazil Jayme Porto Carreiro $250,000 $250,000 Assessing the Impacts of Energy Sector Reform on the Poor Global Robert W. Bacon $430,000 $285,915 Mexico--TA for Long-Term Program for Renewable Energy Development Mexico Charles M. Feinstein $100,000 $100,000 South Asia Urban Air Quality Management Strategy SAR Masami Kojima $195,000 $195,000 Lithuania--Heating Supply to Small Cities/Towns Lithuania Gary Stuggins $278,441 $278,441 Nicaragua--Pilot Commercialization of Improved Cookstoves Nicaragua Clemencia Torres $185,000 $185,000 Developing Regional Clean Air Networks Global Jian Xie $900,000 $900,000 Developing Financial Intermediation Mechanisms for Energy Efficiency Global Robert P. Taylor $1,525,904 $609,904 Projects in Brazil, China and India Alternative Energy Applications (Seed Funding) Global Patrick Labaste $8,027 $8,027 Vietnam--Policy Dialogue Seminar and New Mining Code Vietnam Paulo De Sa $150,000 $150,000 Towards Formulating a Rural Energy Strategy Bangladesh Douglas French Barnes $310,000 $228,542 Philippines--Village Power Fund and Incubator for Renewable Philippines Selina Wai Sheung Shum $371,500 $371,500 Rnergy Rnterprises Power Trade in Nile Basin Phase II AFR Mangesh Hoskote $504,000 $504,000 Advancing Modern Biomass Energy Opportunities and Challenges Global Boris Enrique Utria $232,640 $232,640 Clean Air Initiative in Sub-Saharan African Cities AFR Chantal Reliquet $210,000 $210,000 Development of a Regional Power Market in West Africa AFR Michel E. Layec $253,792 $253,792 Regional Electricity Market: Mekong Basin Power Pool Phase II EAP Barry Trembath $430,733 $430,733 Best Practices for Grid Electrification--Phase II Global Douglas French Barnes $279,860 $279,860 Gas Flaring Reduction Global Bent R. Svensson $86,408 $86,408 TOTAL $18,208,746 $14,755,175 Annual Report 2003 65 66 Energy Sector Management Assistance Programme Annex 3: Reports Published in 2003 FORMAL REPORTS Report Project Country/ Task No. No. Project Title Region Manager 262/03 PO63170 Sustainable Transport Options for Sri Lanka: Vol I; Greenhouse Gas Mitigation Options in the Sri Lanka Munasinghe Sri Lanke Power Sector: Vol II; Sri Lanke Electric Power Technology Assessment (SLEPTA): Vol. III 263/03 PO75756 India: Access of the Poor to Clean Household Fuels India Kojima/Lvovs 264/03 PO77689 Stakeholder Involvement in Options Assessment: Promoting Dialogue in Meeting Water and Global JR Davis Energy Needs: A Sourcebook. 265/03 PO75196 Reducing Energy Costs in Municipal Water Supply Operations. "Learning-while-doing" energy Brazil Armar M&T on the Brazilian frontlines (report was published jointly thus it does not carry ESMAP's cover) 266/03 PO77595 Energy and Poverty Reduction: Proceedings from a Multi-Sector and Multi-Stakeholder AFR Lallement/Durix Workshop. Addis Abata, Ethiopia, October 23-25, 2003. 267/03 PO68523 China: Air Pollution and Acid Rain Control. The Case of Shijazhuang City and the Changsha China T. Johnson Triangle Area. 268/03 PO82773 Energy and Poverty Reduction: Proceedings from South Asia Practitioners Workshop How Can SAR Cabraal Modern Energy Services Contribute to Poverty Reduction? Colombo, Sri Lanka, June 2-4, 2003 269/03 PO67826 Vietnam's Petroleum Sector: Technical Assistance for the Revision of the Existing Legal and Regulatory Framework for the Petroleum Sector Vietnam Svensson 270/03 PO69828 Why Liberalization May Stall in a Mature Power Market: A Review of the Technical and Political Thailand Albouy/Sae Economy Factors that Constrained the Electricity Sector Reform in Thailand 1998-2002 Annual 271/03 PO60433 A Review of ESMAP Energy Efficiency Portfolio GLB Wang 272/03 PO52260 Corporalization of Distribution Concessions Through Capitalization Ghana Hoskote Report 273/03 PO74557 Energy and Environment Review Turkey Moose/Takat 274/03 PO64743 Private Sector Participation in Market-Based Energy-Efficiency Financing Schemes. Lessons Romania Atur/Meyer 2003 Learned from Romania and International Experiences. 275/03 PO69992 Reducing Emissions from Motorcycles in Bangkok Thailand Shah 67 68 TECHNICAL REPORTS Report Project Country/ Task No. No. Project Title Region Manager 030/02 PO73842 Memoria Taller de Electrificacion Rural (CD Only) Nicaragua Terrado Energy 032/03 PO23879 Zambia--Power Sector Restructuring Program: Technical Assistance to ZESCO AFR Savary Sector 033/03 PO48500 Sub-Saharan Petroleum Products Transportation Corridor: Analysis and Case Studies AFR Bacon 034/03 PO4963 Russia Pipeline Oil Spill Study Russia Oduolowu Management 035/03 PO6531 Cross-Border Oil and Gas Pipelines: Problems and Prospects GLB Bacon 036/03 Special Guatemala: Household Fuel Use and Fuel Switching Guatemala Kojima Request Assistance 037/03 PO75883 Monitoring and Evaluation in Rural Electrification Projects: A Demand-Oriented Approach GLB Barnes 038/03 PO80210 Phase-Out of Leaded Gasoline in Oil Importing Countries of Sub-Saharan Africa: The Case of SSA Bultynck Ethiopia--Action Plan. (Clean Air Initiative/ESMAP) Programme 039/03 PO80210 Phase-Out of Leaded Gasoline in Oil Importing Countries of Sub-Saharan Africa: The Case of SSA Bultynck Tanzania--Action Plan. (Clean Air Initiative/ESMAP) 040/03 PO80210 Phase-Out of Leaded Gasoline in Oil Importing Countries of Sub-Saharan Africa: The Case of SSA Bultynck Mauritania--Action Plan. (Clean Air Initiative/ESMAP) Elimination du Plomb de `lEssence dans les Pays Importateurs de Pétrole de l'Afrique Sub-Saharienne: Le Cas de la Mauritanie--Plan d'Actions 041/03 PO80210 Phase-Out of Leaded Gasoline in Oil Importing Countries of Sub-Saharan Africa: The Case of SSA Bultynck Mali--Action Plan. (Clean Air Initiative/ESMAP) Elimination du Plomb de l'Essence dans les Pays Importateurs de Pétrole de l'Afrique Sub-Saharienne: Le Cas du Mali--Plan Actions 042/03 Special Household Enegy Use in Developing Countries: A Multi-country Study. (Printing/editing paid by Global Heltberg/Kojima/ Request ESMAP) Bacon 043/03 PO82773 Knowledge Exchange: Online Consultation and Project Profiles from South Asia Practitioners Global Cabraal/Gratwick Workshop. Colombo, Sri Lanka, June 2-4, 2003. 044/03 PO70684 Sub-Regional Conference on the Phase-out Leaded Gasoline in East Africa, June 5-7, 2002. SSA Reliquet/Bultynck Working Paper #9. (Clean Air Initiative/ESMAP) 045/03 PO70684 Second Steering Committee: The Road Ahead. Clean Air Initiative in Sub-Saharan African Cities. SSA Reliquet/Bultynck Paris, March 13-14, 2003. Working Paper #12. (Clean Air Initiative/ESMAP) 046/03 PO70684 Elimination du Plomb dans l'Essence en Afrique Sub-Saharienne. Conference Sous Régionales SSA Reliquet/Bultynck Du Groupe Afrique de l'Quest. Dakar, Senegal, March 26-27, 2002. Working Paper #8. (Clean Air Initiative/ESMAP). Annual Report 2003 The World Bank 1818 H Street, NW Washington, DC 20433 USA Tel 1.202.458.2321 Fax 1.202.522.3018 Internet: www.worldbank.org/esmap Email: esmap@worldbank.org