Energy and Environment Partnership with the Mekong Region Dr. Ludovic LACROSSE EEP Mekong Chief Technical Advisor Vietnam-Finland Aid for Trade Forum Hanoi, March 17, 2010

Background Mekong region identified by MFA Finland as offering great scope for regional cooperation on sustainable development and climate change, especially in the energy sector. Approval by MFA Finland of an Engagement Plan with the Mekong Region from 2008 to 2012 with a thematic focus on energy, especially renewable energy, natural resources and rural development.

Energy and Environment Partnership (EEP) worldwide  First experience: EEP Central America from  Second EEP project: Mekong Region (Vietnam, Thailand, Cambodia, Lao PDR)  Upcoming projects: Indonesia; Southern and Eastern Africa; Andean Region (Colombia, Peru, Equador, Bolivia).

Overall objectives  Improved access to energy and energy services in the Mekong region  Reduction of greenhouse gas emissions As a result of the EEP activities rural households, livelihoods and SMEs will have better access to RE services and technology

Funding Ministry for Foreign Affairs of Finland Nordic Development Fund (NDF) Total: € 7.9 million for 3 years ( )

Programme Components (1) 1. Increased availability of and access to RE services and RET in rural areas, targeting especially rural poor, ethnic minorities and women. 2. Increased development of and investment in RE energy and energy technology 3. Project development for and investment in energy efficiency

Programme Components (2) 4. Improved knowledge base and tolls to support RE project development and policy and legislative framework development 5. Improved access to information and funding for development of RE and RET

Eligibility for funding (1)  NGOs  companies  public initiatives  private initiatives  universities, research centers  consulting companies To enhance technology transfer, cooperation between donor countries and local project developers is encouraged.

Focus areas  Renewable energy  Energy efficient technology development and use  Modern energy and clean technology  Waste-to-energy  Electricity from renewable energy sources

Activities eligible for funding (1)  Projects  Studies  Capacity development  Information sharing  National and regional studies on RE  Training on RE, energy efficiency and energy markets The programme will enhance business partnerships between Cambodia, Lao PDR, Thailand, Vietnam, donor countries and other partners joining the EEP

Activities eligible for funding (2)  development, dissemination and implementation of sustainable pilot projects demonstration projects  project pre-feasibility and feasibility studies

Research activities  Research and training to enhance access to RE services  Research and training to introduce sustainable financing mechanism for RE services  Studies and related support to develop markets for RE activities to improve access to technical and financial information  Research projects regarding on-grid renewable power  Research and capacity development on energy efficiency

Dissemination activities  Organizing forums and events to increase knowledge on RE as an investment opportunity  Capacity building for policy developers in RE  Developing strategies to disseminate suitable technologies for energy efficiency and waste-to-energy

Demand driven activities (1) ActivityPotential implementers Pilot and demonstration projects on rural RE Private companies and service providers, public sector initiatives, NGOs, cooperatives Pre-feasibility and feasibility studies for renewable power, energy efficiency and waste-to- energy Private companies, consultants, public sector initiatives, service providers

Demand driven activities (2) ActivityPotential implementers Pilot and demonstration projects on energy efficiency and waste- to energy Private companies and service providers, public sector initiatives, NGOs, cooperatives Strategic studies for RE and energy efficiency development Universities, research organisations

Other EEP Activities  Capacity building in RET design, construction, operation and maintenance and RE project development  Creating linkages between project developers and financial institutions and development of financing mechanisms for on-grid renewable power technology and/or power production funding

EEP Project Cycle Financing Window: Call for Proposals Project Proposal Document to the Technical Evaluation Team for approval Financing Contract + Statement of Non-fraudulent Practices SC decision, possible project adjustment request Implementation, monitoring and supervision (RCU + NCU) Submission of the Project Profile Formula Technical Evaluation Team recommendation NCU screening and comments Project completion / continuation with other funding

Organisational Structure Technical Evaluation Team National Technical Experts National Coordinator (SC Member) National Coordination Unit (NCU) Cambodia Regional Coordination Unit (RCU) Steering Committee Supervisory Board National Coordination Unit (NCU) Vietnam National Coordinator (SC Member) National Coordination through RCU Thailand National Coordination Unit (NCU) Lao PDR National Coordinator (SC Member) National Coordinator (SC Member)

First Call for Proposals (1)  Submission: October – December 2009  162 projects submitted: - Vietnam: 53 - Laos: 39 - Cambodia: 32 - Thailand: 17 - Regional: 21

First Call for Proposals (2)  Type of Projects - Renewable energy (biomass, biogas, biofuel, solar, wind, mini/micro-hydro, waste-to energy,...) - Energy Efficiency

First Call for Proposals (3)  Type of Activities - Sectoral studies, - Capacity building, - Feasibility studies - pilot/demonstration projects,...

First Call for Proposals (4)  January/February 2010: screening of proposals by RCU/NCUs  March/April 2010: evaluation of proposals by RCU, AIT and Finland-based experts  Late April/early May 2010: submission of selection results for Steering Committee Approval.

Future activities (1)  May/June 2010: Preparation of full project proposals  June/July 2010: signing of contracts with project proponents  July 2010 onwards: implementation of projects

Future activities (2)  May/June 2010: Regional workshop on project financing  June/July 2010: Launching of second call for project proposals  October/November 2010: Regional EEP Mekong Forum

For further information Regional Co-ordination Unit (RCU) Dr Ludovic LACROSSE, Chief Technical Advisor Tel: Mrs Divina Nidhiprabha, Financial Advisor Tel: National Co-ordination Unit (NCU) in Vietnam Mr Le Tuan Phong, Deputy Director General, Director of Project Management, Ministry of Industry and Trade (MOIT) Tel: