Peter N' Kinuthia

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EAC Regional Strategy on Scaling Up Access to
Modern Energy Services

• Peter N. Kinuthia
• Senior Energy Officer

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Outline

• Introduction
• The Strategy
• Steps taken so far
• Next Steps
• Conclusion

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• INTRODUCTION

Members Burundi, Kenya, Rwanda, Tanzania
Uganda The Vision a prosperous, competitive,
secure and politically united East Africa. The
Mission to widen and deepen economic, political,
social and cultural integration in order to
improve the quality of life of the people of East
Africa through increased competitiveness, value
added production, trade and investment.
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STRUCTURE OF THE COMMUNITY

• Three Organs
• The East African Legislative Assembly (EALA)
• The East African Court of Justice (EACJ)
• The East African Community Secretariat
• Decision making by consensus
• Summit of Heads of State
• Council of Ministers
• Sectoral Councils

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KEY ELEMENTS OF INTEGRATION
complete social, cultural and economic
integration of the people of East Africa with
common foreign and security policies
a single currency
free movement of people, capital, labour,
services and right of establishment and residence
negotiations ongoing Target to be fully
operational Jan10
fully implemented Customs Union
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Commenced staged implementation in
Jan-05 Scheduled to be fully operational Jan10
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EAC STRATEGY ON SCALING UP ACCESS TO MODERN
ENERGY SERVICES

• The Strategy seeks to engage EAC Partner States
  in an ambitious initiative to scale up access to
  modern energy services to support the achievement
  of the Millennium Development Goals and poverty
  reduction
• The Strategy aims at developing MDG-based energy
  access investments in the framework of High
  Impact Low Cost Scalable (HILCS) options
• Implementation of the Strategy will be at
  regional and national levels through clear
  results driven processes

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TARGETS OF THE STRATEGY

• Access to modern cooking practices for 50 of
  traditional biomass users
• Access to reliable electricity for all urban and
  peri-urban poor
• Access to modern energy services for all schools,
  clinics, hospitals and community centres
• Access to mechanical power within the community
  for productive use and heating for all communities

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ACCESS GAPS PER TARGET
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IDENTIFIED STRATEGIES

• Target 1
• initiate programmes to increase end-user demand
  for modern cooking practices
• scale up manufacture and marketing of ICS
• develop channels for reaching nomadic and
  conflict-affected areas
• develop environmentally sustainable municipal
  biomass management programmes
• Target 2
• introduce utility-led financing and cost
  reduction programmes for new connections
• innovate suitable programmes for slum connections

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IDENTIFIED STRATEGIES

• Target 3 and 4
• promote micro-hydro development
• accelerate rural electrification programmes
• introduce viable business models to provide
  energy services e.g community driven approaches
• National budget provisions for electrification of
  schools, clinics and hospitals

COST

• Total Capital expenditure is estimated to be USD
  2.7 billion
• Preparatory activities during the first two years
  are estimated to cost USD 5.41 million
• Programme support, loan guarantees and regional
  funding required to support capital expenditure
  is USD 556 million

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IMPLEMENTATION FRAMEWORK

• Areas identified as crucial to the success of the
  Strategy
• mainstream access to basic energy services
• comprehensive analysis of energy policies
• remove barriers to expansion of access to modern
  energy services
• build national capacity to support the role of
  private sector and communities in enhancing
  effective energy service delivery

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IMPLEMENTATION FRAMEWORK

• Four service lines to facilitate implementation
  of the Strategy and trigger scaled-up investments
  in energy access
• Policy harmonization
• Capacity building of public and private sectors
• Formulation of support formulas (e.g. soft loans,
  grants etc)
• Strategic coordination and project management
• A Project Coordination Unit (PCU) at EAC
  Secretariat to coordinate regional and national
  activities
• Focal Points at energy ministries to coordinate
  national level activities supported by
  multi-sectoral working groups

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OVERVIEW OF IMPLEMENTATION FRAMEWORK
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STEPS TAKEN SO FAR 1

• Consultancy Team with national representation
  from each EAC country was appointed to develop
• programmes and activities for the two-year
  preparation stage
• operational modalities and functions of PCU
• Funding Proposal to mobilise technical and
  financial support
• Achievements
• Baseline energy access information for each
  Partner State
• SWOT Analysis
• Establishment of multi-sector working groups
• National workplans developed through a
  consultative process including national
  validation workshops
• Regional Workshop to further refine the workplans
  and develop regional workplan

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Key Findings of SWOT and Baseline Analysis

• Inadequate Elaboration and Operationalisation of
  the Legal and Institutional Frameworks
• Limited Integrated Resource Planning
• Lack of adequate and updated data and information
• Limited Technical and Institutional Capacity
• need for capacity building in human, technical,
  organizational, and institutional and resource
  capabilities in meeting all the targets
• capacity building for all the players - public,
  private and consumers
• Limited Private Sector participation
• Inadequate/Inappropriate Financing Mechanisms
• inappropriate financing mechanisms to facilitate
  the development and promotion of modern energy
  access.
• inadequate mechanisms for consumer financing
• Underdeveloped Market for Modern Energy Services

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Key Features of the Workplans

• Based on findings of SWOT and Baseline Analysis,
  main focus areas of workplans are
• Mainstreaming energy access into National
  Development Planning and Budgeting
• Developing pro-poor energy policies and
  regulatory framework
• Strengthening national capacity to deliver energy
  services for the poor
• Identifying high potential business models
• The four areas reflect the four service lines
  identified in the Strategy
• Workplans developed through Log Frame Analysis
• Activities under the four focus areas were
  proposed for each target
• Each Partner State also identified activities to
  be covered at regional level
• All activities identified as regional were
  consolidated into regional workplan during the
  Regional Workshop
• Policy harmonisation
• Harmonisation of standards and codes
• Cross cutting issues

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STEPS TAKEN SO FAR 2

• Donor Mapping
• assess current funding and commitments for the
  Strategy
• identify funding gaps
• identify and consult funding organizations
• Development Banks
• Donor Consortiums
• Funds
• Philanthropic Foundations
• Private Sectors
• match potential donors to aspects of the Strategy
  that they are most likely to support
• develop a donor map
• address donor harmonization concerns

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NEXT STEPS

• Sectoral Council on Energy
• adopt recommendations of Workplans Study Donor
  Mapping
• adoption of Workplans as bona fide EAC programmes
  
• approve establishment of PCU within EAC Structure
• Donor Conference
• Presentation of Donor Map and Funding Document
• Discussions with donors
• Seek funding commitments for
• Workplans
• Programme Coordination Unit
• Pilot projects for each target and each Partner
  State
• Proposed dates 12-13 June 2008

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NEXT STEPS

• Programme Coordination Unit
• recruit PCU Staff according to recommended
  criteria
• PCU commences operationalization of workplans
• Implementation of national workplans
• Replication of selected Projects and Programmes
• replicate success stories under each target to
  all Partner States
• review and monitor
• Scaled up Investments realised

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CONCLUSION

• The Strategy is built on four simple and
  achievable targets
• The Strategy aims at developing High Impact Low
  Cost Scalable (HILCS) options of MDG-based energy
  access investments
• The Strategy has an initial two year preparation
  phase focusing on four service lines crucial for
  triggering investment in energy access projects
• Regional and national activities for first two
  years have been identified
• Donor mapping undertaken to mobilise support for
  the Strategy
• PCU to be set up within existing structure of EAC
  Secretariat

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• Thank you