South Asia Regional Initiative for Energy Integration (SARI/EI) Theme Presentation Session -III Investments in Infrastructure for Cross Border Projects: Catalyzing Private Investments and Mitigating risks V.K.Kharbanda Regional Conference on Enhancing Energy Cooperation & Integration in South Asia 30th – 31st August’2018, Hotel Le Meridien, New Delhi 1 Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
Outline • Investment Requirement in Electricity in South Asia. • key risk and Challenges associated with Investment and Financing for CBET Projects and mitigation measures. • SARI/EI research study on Regional Investment Framework and Guidelines for promoting investment in South Asia Power Sector and in CBET Projects. • Suggested Investment Guidelines • Points for Discussions Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
Investment Requirement in Electricity in South Asia Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
Investment Requirement in Electricity in South Asia 2020 ✓ South Asia is one of the fastest growing regions Investment Requirement (Billion USD) in in the world. Electricity Infrastructure Development 2011- 2020 700 ✓ As per world bank estimates, SA countries needs 603 600 to invest in the range of USD 1.7 trillion to USD 2.5 trillion( 2011-2020) to bring its power grids, 500 468.8 roads, water supplies up to the stranded needed to serve the population. 400 300 ✓ Total investment of USD 603 billion is required for SAARC countries for Electricity Infrastructure 200 development. 96 100 16.5 9 7 ✓ Bangladesh, India, Nepal , Pakistan and Sri Lanka 0 are expected to invest around US$ 16.5 Billion, India Bangladesh Pakistan Nepal Sri Lanka SAARC , All 8 countries US$ 468.8 Billion, US$ 7billion, US$ 96 Billion and US $ 9 Billion respectively by 2020. 4 9/2/2018 Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
South Asian Power Sector- Investment Requirement for the 2015‐2040 Period Investment Requirement for the 2015‐2040 Period (Billion US$) ✓ South Asia is projected to Country Investment Investment require 1,390 billion US$ for (Generation) (Interconnection) expanding electricity Afghanistan 16.36 0.18 generation from 2015‐2040 Bangladesh 105.12 0.63 period (to increase to 750 GW Bhutan 32.08 0.54 of generation capacity). India 929.67 27.93 Nepal 10.75 0.00 ✓ Already committed and Pakistan 276.96 0.00 planned inter‐grid connection, Sri Lanka 18.67 0.00 especially within India would Total 1,390 29 require around 29 billion US$. Source : https://openknowledge.worldbank.org/handle/10986/22224 5
Investment Scenario in South Asia Foreign Direct Investments have been low in the region FDI, Net (BoP, current million USD) • The region witnessed mixed trends in net 35000 India FDI inflow across countries during the 25000 SAC except India period 2010-15 15000 ➢ Bangladesh (23%) had one of the highest growth in FDI inflows followed by India 2000 1000 0 • India has the highest share of FDI inflow Source: World Development Indicator, The World Bank 2010 2011 2012 2013 2014 2015 Afghanistan Bangladesh Bhutan Maldives in absolute terms followed by Bangladesh Nepal Pakistan Sri Lanka India FDI as % of GDP 2500 14% 12% 2048 12% • Remaining countries contribute less than 2000 10% GDP (USD Billion) FDI as % of GDP 10% to the net FDI inflows in the region 8% 1500 6% 1000 4% 2% 1% 1% • The FDI contribution to the overall GDP is 1% 2% 0% 0% 0% 500 244 173 0% 79 well below 2% for all the countries in the 20.04 20 2 3 0 -2% Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka region except for Maldives GDP (USD Billion) FDI Investments (% of GDP) Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
key Challenges and Risks associated with Investment and Financing for CBET Projects and Mitigation Measures 7 Regulatory Issues and Challenges in Cross Border Electricity Trade – Role of Regional Regulatory Guidelines/SARI/EI/Head-Technical/Rajiv/IRADe/21-22 September,2016/Islamabad/3rd SAARC Energy Regulators Meeting\
Key Challenges & risks for CBET 9/2/2018 8 Institutionalizing the Regulatory Process of Cross Border Electricity Trade and Regional Energy Cooperation in South Asia-A proposal-Rajiv/SARI/EI/IRADE
SARI/EI research study on Regional Investment Framework and Guidelines for promoting investment in South Asia Power Sector and in CBET Projects 9 Regulatory Issues and Challenges in Cross Border Electricity Trade – Role of Regional Regulatory Guidelines/SARI/EI/Head-Technical/Rajiv/IRADe/21-22 September,2016/Islamabad/3rd SAARC Energy Regulators Meeting\
SARI/EI study on Regional Investment Framework • To develop investment framework and policy guidelines for regional investment framework for South Asia power sector and CBET Review the current investment scenario and trends in South Asian Power Sector with focus on Cross Border Electricity Trade Projects Review the power sector investment related policies, guidelines, regulations and frameworks covering environment, Land Acquisition, Propose an investment FDI, R & R etc. prevailing in each South Asian Countries (SACs) country for impact on regional power & CBET Projects framework and policy Focus on energy resources development particularly relating to Hydro power guidelines for regional resource and associated transmission infrastructure (including Cross Border Transmission Links) investment framework and regional policy Analyze the international best practices on investment policies / guidelines/ regulations including innovative mechanisms guidelines Develop a regional investment framework and regional investment policy guidelines to promote investments in South Asian power sector 10 Regulatory Issues and Challenges in Cross Border Electricity Trade – Role of Regional Regulatory Guidelines/SARI/EI/Head-Technical/Rajiv/IRADE /21-22 September,2016/Islamabad/3rd SAARC Energy Regulators Meeting\
SARI/EI Suggested Investment Guidelines Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
SARI/EI Suggested Investment Guidelines Regional CBET • Designate or set up a regional CBET investment forum to act as a facilitator 1 investment • Project identification and prioritization, coordination of CBET investments facilitation • Mobilize MFIs for low interest financing options and facilitate financial closure. forum • Enactment of policies/laws for promoting investment in CBET. Promote policy, 2 regulatory and • Provision for Dispute resolution through regional framework market • Harmonize tax incentives and other benefits across the region instruments for • Harmonize regulations, grid operation, pricing, energy accounting, standards etc. mobilizing • To create forum association of electricity regulators for cross cutting of regulations investments Managing • To develop guidelines for mitigating political risks such as expropriation, war etc. 3 country risk & • Regional Investment guidelines, leveraging Instruments available with MFIs like MIGA project • Legal safeguards for contract enforcement development risks • Standard PPAs Fast track • To provide single window clearance for necessary approvals and licenses 4 project approvals and • Government to provide support for issue related to land, environment and R&R clearances etc . Presentation on Overview of SARI/EI Program-Progress, Achievement, Key Findings of Studies and Future Plan/SARI/EI/6th Project Steering Committee Meeting/Rajiv/Head-Technical/SARI-EI-IRADE
Recommend
More recommend
