Arun P Sanghvi Naypyidaw May 31 – June 1, 2013 Myanmar National Electrification Program Strategy and Design Access scale up - key success factors Good practice international experience Arun P Sanghvi Naypyidaw May 31 – June 1, 2013

Key success factors across driving good practice national electrification programs Unwavering Government commitment driven by a long term vision and national development perspective linked to outcome targets for the electricity sector(access to schools, health facilities, administrative centers, HHs, water pumping Least cost grid rollout and coordinated off-grid investment program driven by outcome targets above Equity and inclusion - targeting disadvantaged groups with specific vulnerabilities such as women and the poor nationwide -- Getting the enabling policies and institutional framework right

Key success factors….continued Clarity of roles and accountability for sector performance and results to ensure efficient and effective management and operation of the sector No country has successfully implemented a NEP without a committed and professional national utility/dedicated institution driving the process Private sector participation is easier to “crowd in” for grid connected generation projects, especially mid-to larger sizes; far less so for the poles and wires business “cherry picking” pockets of opportunity for electrification undermines achieving national electrification for all in a timely, effective, and financially sustainable manner while alongside building institutional capacity for implementation

Key success factors … continued Establishing a stable and sustainable financing platform for ensuring financial viability of sector financing program and delivery agents on an ongoing basis over the program implementation life , as well as affordability of access to the poor --No country has accomplished the task without some form of public subsides, to maintain financial viability of service providers and affordability of access for the poor

Key success factors … continued Consultative process - Government led sector-wide framework bringing together “Many Partners, One team, One plan” piecemeal donor-driven project-by-project modus operandi does not add up

SWAp ”Prospectus” anchors joint engagement (“compact”) of all partners in a harmonized and aligned implementation program Government sponsors preparation, advised by a lead advisor/Development Partner(s) Government’s Prospectus presents credible, bankable implementation plan for access scale-up, over 5 year time-slice of program Government calls Donor Financing Round Table financing gap = sector revenues less investment and recurrent costs (“syndication”) Bankable Prospectus Government as ‘sponsor’’ Sector outcome targets, strategy, policies Investment The “sector syndication” approach is a vehicle to break the ‘chicken and egg’ problem and allow for a new partnership between donors and countries. It would entail use of ‘syndicated’ or pooled funding (from multilaterals, bilateral and host governments) that would be pledged to a long term expenditure program that would embrace multiple activities at the sector level – preferably along all 5 tracks. Sector syndication aims to build confidence on both sides. It will allow donors to see government commitment in terms of the detailed planning, their equity contributions through the budget, and the policy, regulatory and institutional measures that underpin the syndication plan. The approach is flexible: donors and the private sector can pick and finance what appeals to them (e.g. focusing on particular tracks or particular countries) and the lead syndicators (could be WB, ADB or bilaterals) will intermediate this process. It is thus important that the sector syndication prospectus is not a ‘shopping list’ of projects, but a strategic, sequentially planned and incremental set of concrete investments to be made over a 6-8 year time-frame. The prospectus will have three main sections: concrete and realistic targets for the energy sector, detailed costings for the required investments and a financing plan to meet them. An effective prospectus will demand close collaboration between sponsor and lead syndicator(s). Note that this is presented here as a country sector syndication, but the same approach can also be used for regional syndications. + Geospatial least cost investment plan + World Bank TA (ESMAP) Capacity-building/ TA Implementation framework, financing, and monitoring plan 6