KfW Development Bank. Germany s Financial Assistance. for the Renewable Energy Sector Myanmar

Transcription

1 KfW Development Bank Germany s Financial Assistance for the Renewable Energy Sector Myanmar

2 Outline 1 Who We Are & How We Work 2 FC Myanmar: Energy Sector 3 Renewable Energy in South East Asia 2

3 Who We Are & How We Work

4 KfW Development Bank as part of the KfW Group Financial support of developing and emerging countries Domestic promotion International financing We promote Germany We support internationalisation We promote development SMEs Private clients Municipalities Export & project finance Developing & emerging countries Support for climate and environment and protection Financing volume (FV): 55.1 billion (2016, EUR) FV: 16.1 billion FV: 7.3 billion and 1.6 billion Financial Cooperation with Myanmar 4 4

5 German Financial Cooperation Our Tasks in the System of German Development Cooperation Implementation Development Bank Financial Cooperation Task: Promote public investment Provision of capital Complementary advisory services Cooperation with state and state-guaranteed private institutions Corporate Financing Task: Financing of private investment in developing and industrializing countries Provision of capital Establishment and expansion of private business structures Technical Cooperation and Personnel Support Task: Enhancing the capabilities of people and organizations Provision of expertise 5

6 Green financing activities of the KfW Group in 2015 KfW Group is a leading financier of global investments into environmental and climate protection: 29.5 billion EUR which equals ~ 37% of global commitments KfW Development Bank invested 3.9 billion EUR into environmental and climate protection which equals ~ 59% of its new commitments Instruments: concessional and commercial credits grants guarantees capital participations mezzanine capital accompanying TA measures KfW-Bildarchiv / photothek.net KfW-Bildarchiv / Florian Kopp KfW-Bildarchiv / Bernhard Schurian KfW-Bildarchiv / photothek.net KfW-Bildarchiv / G.J. Lopata KfW-Bildarchiv / Jens Steingässer KfW-Bildarchiv / Bernhard Schurian 7

7 Project Cycle Intergovernmental negotiations Mutual agreement on sectors and projects to be promoted Project/programme preparation Collective, based on what was agreed during the intergovernmental negotiations Project/programme appraisal Carried out in partner country by KfW Financing decision by BMZ Country/priority area strategy Drafted by BMZ, negotiated and ratified with partner country Basis: development potential of the partner country Outcome assessment, ex post evaluation Start-up of operation Carried out by partner country, final review by KfW Implementation Project-executing agency in partner country (supported by consultant), monitoring by KfW Financing agreement Between partner country and KfW 8

8 FC Myanmar: Energy Sector

9 The Rural Electrification Programme (REP) Background Only 34% of population has power connection National Electrification Plan (NEP) Aim to provide complete access to electricity in Myanmar by 2030 KfW Photo Archive/Bernhard Schurian KfW s Approach Focus on both grid extension and off-grid energy solutions (Solar Home Systems) KfW s Goal Grid connection and Solar Home Systems to at least 200,000 people 10

10 Investment: On- and Off-grid component Current state Current State Low grid coverage, especially in rural areas use of biomass energy, diesel generators, low quality Solar Home Systems Rural Electrification Programme Rural Electrification Programme Extension and Rehabilitation of medium voltage distribution network (66/33/11 kv, including On-Grid Off-Grid Electrification through high quality Solar Home Systems for rural areas 11/0.4 kv related transformers) Establish market structure for Connection of new households and enterprises to national grid environmental friendly electrification Promote demand on services like installation or recycling KfW: EUR million loan + EUR 6.54 million grant KfW: EUR 7 million grant + EUR 2.0 million grant Myanmar contribution: EUR 8.65 million Myanmar contribution: EUR 4 million 11

11 Project Cycle Current State Intergovernmental negotiations Mutual agreement on sectors and projects to be promoted Project/programme preparation Collective, based on what was agreed during the intergovernmental negotiations Project/programme appraisal Carried out in partner country by KfW Financing decision by BMZ Country/priority area strategy Drafted by BMZ, negotiated and ratified with partner country Basis: development potential of the partner country Outcome assessment, ex post evaluation Start-up of operation Carried out by partner country, final review by KfW Implementation Project-executing agency in partner country (supported by consultant), monitoring by KfW Financing agreement Between partner country and KfW

12 Bidding process Phase 1: Pre-Qualification Companies apply for the project Bidding visible at Germany Trade and Invest ( in local newspapers and on Ministry s webpage 30 days Phase 2: Qualification Short listed companies submit technical and financial proposal 45 days Phase 3: Signing Best bidding company signes contract with the responsible Ministry

13 Renewable Energy in East Asia

14 Financial Cooperation Energy Sector Commitments by Regions 15

15 Ongoing KfW projects in East Asia Wind farm in Phu Lak, Vietnam Vietnam is largest market for wind energy in South East Asia Construction of a wind farm on 400 hectare in Binh Thuan province Impact: Production of 50,680 MWh of energy will be enough to provide 150,000 people with electricity Quelle: KfW / G.J. Lopata Solar Home Systems in Nepal Increase energy access with decentral solutions by installing Solar Home Systems and Small Solar Home Systems, Installation of PV0-based drinking water pumps Impact: Installation of 607,467 SHS, 53,685 SSHS and 84 PV Community Drinking Water Systems, Annual reductions of 20,000 t CO2 16

16 Get in touch we are happy to advise you Eva Schneider Country Director, Office Yangon 45 Inya Myaing Road Yangon Su Wai Phyo Project Assistant Office Yangon 45 Inya Myaing Road Yangon Julian Schütz Project Manager Palmengartenstraße Frankfurt am Main Phone: +95 (0) Phone: +95 (0) Phone: +49 (0)