Download NEROP - Papua New Guinea Advantage Investment Summit 2015

 Papua New Guinea Na,onal Electrifica,on Rollout Program (NEROP) Vision to Ac*on PNG Advantage Investment Summit 28 August 2015, Brisbane, Qld Department of Petroleum and Energy – Energy Wing Background to NEROP GoPNG Vision 2050 & Development Strategic Plan 2010-­‐2030 Ø The government recognised electricity as one of the key enablers in driving its socio-­‐economic development strategies. PNG Vision 2050. Ø Set a target for electricity access to at least 70% of PNG households by 2030. (15 Years) DSP 2010-­‐2030. Ø However, in 52 Years PNG has provided electricity access to only 13% of our popula,on. GoPNG approved the Electricity Industry Policy (EIP) in December 2011. The EIP is a public document. Ø Established the Electricity Management CommiFee (EMC) and membership includes Secretary for Petroleum & Energy (Chair), Secretaries for Treasury, NaIonal Planning & Monitoring, Managing Director for IPBC and the President of the Chamber of Commerce & Industry. Ø EMC, through the Minister for Petroleum and Energy, reports to the NaIonal ExecuIve Council. Ø One of the key funcIons & responsibiliIes of EMC, is the development of a Na,onal Electrifica,on Roll-­‐Out Plan (NEROP) which idenIfies the needs for urban and rural PNG. 2 Background to NEROP GoPNG, through Department of Petroleum and Energy (DPE), sought World Bank assistance: Ø Brought in internaIonal experts to develop a framework for implementaIon of NEROP. Ø DPE held a Public Stakeholders’ ConsultaIon Workshop in December 2013. Prime Minister O’Neill gave the keynote address. Ø Independent Consumer and Compe88on Commission (ICCC) and DPE launched the “rules for engagement” for private sector par8cipa8on in genera8on – (i) Third Party Access Code and (ii) the Grid Code. These documents can found at ICCC website: www.iccc.gov.pg Ø  Private Sector Par*cipants’ aMen*on is drawn to the “Power Purchase Reference Price” in the Third Party Access Code. Ø The EMC signed-­‐off a Closing Communique at the end of the 2013 Workshop – seWng out the required key acIons underpinning NEROP implementaIon. 3 Background to NEROP Closing Communique Opera,onal pillars for NEROP Implementa,on; Ø Invite Request For Proposals for Consultancy Services for PreparaIon of GeospaIal Least Cost NaIonal ElectrificaIon Roll-­‐Out Plan. Ø Develop a comprehensive and workable InsItuIonal Framework for effecIve implementaIon of NEROP. Ø PreparaIon of a Financing Framework and Plan – Prospectus. 4 NEROP – going forward PNG Na,onal Electrifica,on Roll-­‐Out Plan (NEROP) – It’s about modernising the country. •  2030 target: 70% access •  Vision >>>>> Ac*on Ø  How best to provide electricity access to the un-­‐electrified popula*on through grid, off-­‐grid, pre-­‐
electrifica*on programs. Ø  Ins*tu*onal Framework Ø  Sustainable Financing Framework 5 NEROP – going forward The challenge is daun*ng .... but achievable; v Provide electricity access to 6.4 million out of 7.3 million people (2011). v The “wheel” of good prac,ce interna,onal program implementa,on need not be re-­‐invented. v While the specifics of each country’s ins,tu,onal and financing framework for implementa,on are home grown, the core design principles driving their success, in essence, are the same. v Rwanda – populaIon 12m; 2013 GDP = $639/capita PPP; ELGZ new connecIon rate now 50,000/year (under 4,000/year prior to program). 2013 GDP = $2,088/capita PPP, current dollars. PNG’s Implementa*on rate to reach GoPNG target of 70% households by 2030 •  Clear backlog only 50,000/year •  With popula*on growth 60,000 /year •  Investment (2016-­‐2020) USD300 m (Distribu*on & LV only*) •  Genera*on & Transmission will be addi*onal * @1,000$/connec*on (Grid or Off-­‐Grid) 6 Strong ins*tu*ons with clear roles & mandate… held accountable for results Some examples from East Asia and Pacific region Vietnam En*ty (s) accountable EVN PCs/
DEGs/
CEGs Thailand Laos PEA and EdL for MEA grid areas Indonesia Cambodia PLN PNG No PPL Clear funding mechanisms Yes Yes Yes Yes No CSO Electrifica*on rate -­‐ Results 97+% 98+% 84% 80% 31% 13% 7 Building blocks for effec8ve NEROP implementa8on Road Map and Prospectus Vision Ac,ons Sector wide least cost rollout plan Many Partners One Team One Plan InsItuIonal Framework Sustainable Financing Package 70 percent access by 2030 8 SWAp organizing framework “Many Partners, One Team, One Plan” Ø 
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GoPNG-­‐owned & led, long-­‐
term sector-­‐wide development program Implementa,on = Genera,on, T, D, Grid, Off-­‐Grid and pre-­‐
electrifica,on Sustainable and
predictable funding
syndication
Development partners, Investors and other stakeholders working together Government Development Partners Consumers Private Stakeholders SWAp Stakeholders Sector Ministries U,lity Regulatory Authori,es Local Government Shin from a project-­‐by-­‐project and donor-­‐by-­‐donor approach towards a program and results-­‐focused implementa*on framework 9 NEROP – going forward NEROP
Implementation &
Operations Structure
POLICY REGULATIONS Government of PNG DNPM NEC DoT ETF DPE IPBC EMC Energy Sector Working Group: Development Partners PCCI ICCC -­‐ Economic DPE -­‐ Technical SAFEGUARDS NEROP OPERATIONS:IMPLEMENTATION MONITORING UNIT GIS/Planner M&E Engineer
Policy Economist IMPLEMENTATION ORGANISATIONS IMPLEMENTATION IPPs/PPPs PPL Special Purposes NEROP Unit/En,ty SHS & Portable Solar Products Dealers District Development Authori,es, SPAs in LLGs Village Co-­‐opera,ves Thank you NEROP 11