OBA on Program Level Performance Based Aid for Access Practical experiences from the Energising Development (EnDev) Programme 30 Million 10.02.2012
Energising Development in brief One of several Dutch and German funded energy access programmes Partnership Programme between Netherlands Minister for Foreign Affairs & German Federal Ministry for Economic Cooperation and Development (BMZ) Objective of phase 1: provide 3,1 Mio people with access to energy Objective of phase 2: provide 3 Mio people with access to modern energy in addition to outcome of phase 1 Implementing organization: GIZ (GTZ) in cooperation with Dutch NL Agency 10.02.2012 Division Water, Energy, Transport Division Water, Energy, Transport 10.02.2012 Seite Page 22
Who is benefiting from EnDev? EnDev provides access to modern energy services: - for households - for social institutions - for small and medium enterprises Predominantly in rural areas 10.02.2012 Seite Page 33
What kind of access is supported by EnDev? Solar Micro Hydro Power Biogas Stoves Grid extension/ densification 10.02.2012 Seite Page 44
Regional Distribution of EnDev Projects (Phase 1 + 2) 22 Projects in 21 Countries Solar Improved cook stoves Grid extension, densification Hydropower Biogas Honduras Nicaragua Bolivia Peru Benin Burkina Faso Mali Ghana Senegal Ethiopia Kenya Mozambique Rwanda Uganda SADC Malawi, Mozambique, Tanzania, Zambia Bangladesh Indonesia Mongolia 10.02.2012 Division Water, Energy, Transport
EnDev s Performance-Based Approach one clearly defined, quantitative global objective country objectives are closely linked to global objective country budgets depend on contribution to the global objective the average amount of funds available to provide sustainable energy access is around 19 per person Success indicators for all country activities are: number of people achieved in relation to the costs and impact of provided technologies and services global EnDev budget comprises: a) funding of promising basic country activities b) scaling up of successful projects 10.02.2012 Seite Page 66
Consequences of the Performance-Based Approach Benchmarking and competition regarding sustainable outcome, impact and cost efficiency between Countries Regions Technologies Approaches resulting in strong local commitment and significant contributions of partner organisations, private sector and customers High implementation speed Stimulation of cross border learning and knowledge exchange Stimulation and fast scale-up of innovations Development of a rigorous monitoring system 10.02.2012 Division Water, Energy, Transport 10.02.2012 Seite Page 77
Difference between EnDev s approach (PBA) and pure result based financing (RBF) EnDev does not only provide financial incentives against results ex post but also Capacity building of governmental and non governmental organisations Facilitating business to business contacts Technical and business training of importers, distributors, retailers, customers Quality testing Market studies and surveys Awareness raising, customer protection information (quality, warranty, after sales service) Page 8
Universal access will require changes on all levels Business Development Services Strong Entrepreneurship Finance Institutions Access to finance Access to human capital Education system Information and Advisory Services Innovation and knowledge diffusion Sustainable (pro poor) markets for modern energy (for all?) Favorable administrative and regulatory environment Interested & informed customers consumer organisation Public Media Government Policy
EnDev is working on all levels with focus on micro and meso level Macro level government, parlament Economic policy, taxation, education, employment, industrial relation, energy, science and technology policies etc. Meso level Support service and infrastructure Communities/regional governments business development services, financial services, financial support, information and knowledge services, awareness raising, vocational education Micro level Partner organisations (entrepreneurs etc.) capacity development, promotion of networks
What has EnDev achieved so far? January 2005 - June 2011 more than 8 Million people, 11 000 social institutions and 26 000 enterprises have been provided with sustainable access to modern energy services 10.02.2012 Division Water, Energy, Transport 10.02.2012 Seite Page 11 11
EnDev s Monitoring, Reporting and Verification System 5 Steps 1. Collection of basic data about individual beneficiaries (list of customers from partner firms) 2. Collection /bundling of data on village and or district level level 3. Data quality control through spot checks in the field and plausibility checks of gross figures 4. Transfer of data together with other data (economic, environmental) into EnDev data base system 5. Sustainability and attributability check Household/village data verification EnDev Country Project Management General progress, Impacts, lessons learnt Numbers of beneficiaries General EnDev Programme Management Adjusting figures evaluation results and impacts Progress Reporting
Check of outcomes Gross figures are adjusted by taking into account: a sustainability adjustment factor, which takes into consideration that the access provided to modern energy technologies is not sustainable in all cases a windfall gain factor considering that some households supported by EnDev would have gained access to modern energy services anyway even without support a double energy factor, which accounts for households and welfare institutions, which received an improved stove or other modern cooking energy technologies but already had access to electricity 10.02.2012
Thank you for your attention Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) EnDev- Energising Development carsten.hellpap@giz.de