Clean Technologies and Local Rural Development Its the Organization Presented at Experts Group Works

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Clean Technologies and Local Rural
DevelopmentIts the Organization Presented
at Experts Group Workshop onTechnology Transfer,
CTI, UNFCCCPatrick DAddarioFiorello H.
LaGuardia FoundationBangkok, ThailandJune 28,
2007
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DIRECTOR-GENERAL UNITED NATIONS RELIEF AND
REHABILITATION AGENCY (UNRRA), 1946
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THE FIORELLO H. LAGUARDIA FOUNDATION, FOUNDED 2001

• The Foundation focuses on three major areas
• US-Italian investment in community-based
  sustainable development projects in developing
  countries
• US investment in southern Italy in areas of
  sustainable agriculture, biotechnology, and
  renewable energy
• Academic exchange between Italy and the US
  with an emphasis on biotechnology, agriculture,
  and medicine

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MOSAICO Network
Global Environmental Institute Beijing, China
Environment, Energy, Enterprise Ventures New
Delhi, India
Instituto Eco-Engenho Maceio, Brazil
Fiorello H. LaGuardia Foundation, NY, USA Energy
Security Group, Washington, DC, USA
Mountain Institutes Peak Enterprise Program
(TMI), China
Small-Scale Infrastructure Development Fund
(S3IDF), India
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MOSAICO Overview

• What is MOSAICO?Mobilizing sustainable
  agriculture, infrastructure and capital, MOSAICO
  is a network of organizations in developing
  countries seeking to increase incomes, reduce
  poverty, protect the environment in rural
  communities.
• MOSAICO operates in Brazil, India, China.
• Our MissionMOSAICO links poor rural
  farmers/enterprises to national and international
  markets by providing financial, institutional,
  technical support usually only afforded to larger
  deals/players.
• MOSAICO does this by mobilizing resources
  human, financial, institutional in support of
  local sustainable agriculture and infrastructure
  projects.
• Our VisionProsperous communities with minimum
  negative environmental impacts.

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MOSAICO Approach

• What Do We Do?
• MOSAICO works with cooperatives, associations,
  self help groups, and private ventures to provide
  institutional/technical support, business
  planning, and training services to develop
  sustainable agriculture and infrastructure
  ventures.
• MOSAICO also works with local financial
  institutions (FIs) to evaluate risks/benefits,
  design appropriate products/services, and bring
  ventures to scale.
• In markets where required, MOSAICO supports the
  development of local financing facilities to
  provide seed capital and financial guarantees for
  small agriculture ventures and energy, water, and
  sanitation infrastructures.
• In parallel, MOSAICO uses its local project
  preparation capabilities and market knowledge to
  support the development of investment vehicles
  targeting larger-scale sustainable infrastructure
  projects and enterprises.

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MOSAICO Building Markets from the Ground Up
Identify Partners/Project Opportunities
Conduct Pilot Projects
Support Organizationall Development
Complete Commercial Financial Chains
Replication
Document Best Practices/ Procedures
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MOSAICO Partners
Local Banks and Financial Institutions
Tech Asst Business Incubation
Professional Technical Training
Financial Risk Mitigation
Basket 1A Renewable Energy Organic Agriculture
Enterprises
Basket 2 Fund Facilitation
Basket 1B Small Renewable Energy and
Energy Efficiency Infrastructures
Replication through partner-developed marketing
and technical assistance businesses,
cooperatives, producers associations, and other
multipler groups
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PROJECTS
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BRAZIL

• In Brazil, MOSAICO has brought a dignified life
  within the reach of subsistence farmers in
  drought-plagued Alagoas, in Northern Brazil.
• The project has demonstrated that with the proper
  organization, training, equipment, and financing,
  poor farmers can increase their incomes by 500,
  even with limited access to water.

Bottling the peppers for sale
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BRAZIL

• Also in Alagoas, the Team is conducting business
  planning for AMercSol, a distribution/marketing
  company representing small farmers in the region.
• AMercSol will assume responsibility for
  identifying interested farmers, organizing them
  into ventures, providing technical/commercial
  training to cultivate high-value products.
• Access to financing for agricultural inputs and
  irrigation systems, and for marketing their
  products is another key component.
• A lead product for AMercSol is the hydroponic
  production of pepper in vinegar a high demand,
  fashionable condiment in Maceio.
• Using locally developed structures, recycled PVC
  soft drink bottles, and otherwise toxic rice
  husks, the hydroponic systems have brought
  vitality to the community attracted local
  finance.

Hydroponic Harvest
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SMALL HYDRO FUND - 1

• LGF supported the development of a
  ground-breaking 200 million reals (ca. US 100 M)
  equity fund for development of small hydropower
  projects.
• Registered with CVM, the Brazilian Securities and
  Exchange Commission, the Fund is unique as it is
  the first Brazilian RE Fund of its size, and 80
  of its capital is subscribed by Brazilian pension
  funds.
• Fund developers also secured an added 700 million
  reais in debt financing from BNDES, the national
  development bank. The Funds first 13 projects,
  in the states of Mato Grosso (MT) and Minas
  Gerais (MG), total nearly 200 MW.
• Construction has begun on 5 MT plants, totaling
  93MW to be on-line in 2008. As run-of-river
  plants, they will have minimal environmental
  impact.
• Under this project, LGF supported an independent
  legal review of the PPAs fund share purchase
  agreements.
• Finally, LGF is assisting Globobank to identify
  investors from OECD countries interested in
  investing an additional 25 million reais (ca. US
  12 M) in the fund.
• The projected return is inflation 13.

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Small Hydro Fund (2)
Location Rio Juruena MT Power Purchase
Agreement (PPA 20 anos) ELETROBRÁS/PROINFA
(Brasilian Government) EPC Contracted, including
Insurance to reduce hydrologic and geologic
risks. The project fits the BNDES (Brazilian
Development Bank) funding criteria. Estimated
Investment R 485 million

• SHP Telegráfica 30 MW
• SHP Rondon 13 MW
• SHP Parecis 15,4 MW
• SHP Cidezal 17 MW
• SHP Sapezal 16 MW
• TOTAL 91,4 MW
• SHP Small Hydropower Plant

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BIO OILS - BACKGROUND I

• Castor Bean Oil is a raw material in the
  production of over 400 products, including
  paints, varnishes, plastics, and lubricants.
• The castor bean plant, grows in arid conditions.
  Its cultivation is minimally mechanized and does
  not require pesticides, fertilizers or irrigation
  to be viable.
• The castor bean can be cultivated along side
  traditional food crops.

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BIO OILS - BACKGROUND II

• In biodiesel program, centralized processing and
  purchasing have resulted in prices that are often
  not cost - covering.
• Delays in program start up created excess supply,
  further depressing prices.
• Small producers bear burden of delivery
• Loss of by-products fertilizer, animal feed
• Assisting a subsistence farmer to produce a
  commodity is not doing him/her a favor.

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BIO OILS THE ASSOCIATION

• Landless farmers were sold land by the state of
  Ceara
• The state agricultural extension service,
  EMATER-CE worked with the farmers on cultivation
  of castor bean plant
• With National Environmental Fund and Avina
  Foundation, LGF established APRAI

FARMERS VOTING TO ESTABLISH APRAI
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Bio Oils The financial analysis

• LGF performed financial analysis with purchasing
  beans from farmers at double what they receive
  from biofuels program
• The project has a 20 IRR
• ASJA, an Italian green generator is supporting
• Completion of business plan, will invest 30-40
• Of capital for plant.
• responding to anticipated restrictions on
  non-sustainable sources of biofuels

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BIO Oils Government Help

• Does the government help?
• Financing land purchase Ceara
• Donating land for the processing facility
  Itatira
• Donating Storage Building Ceara
• Debt financing Banco do Nordeste
• Technical Assistance EMATER - CE

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BIO Oils - Conclusion

• Sustainable livelihoods for farmers
• Creation of local jobs in processing
• Diversified output local, natl, intl mkts.
• At a minimum, a global-warming offset as a carbon
  sink
• Potential further CO2 offset as fuel for
  transportation, stationary motors, cooking, and
  potentially, biogas.