ADB projects in Mongolian Energy sector

Purevbayar. D 

Senior Officer of Strategic Policy and Planning Department, Ministry of Energy

 

ContentsOverview of ADB Projects in Energy

sectorSome project details and current

statusChallenges and key issues in projectsConclusion on Energy sector projectsRecommendations and implications

for ADB

Overview of ADB Projects in Energy sector

Project Number

Project NameProject Type or Modality of Assistance

Status Approval Date

43079-012 Updating the Energy Sector Development Plan Technical Assistance Approved 19-Oct-10

43357-012Ulaanbaatar Low Carbon Energy Supply Project Using a Public-Private Partnership Model

Technical Assistance Approved 26-Feb-10

43177-012 Ulaanbaatar Clean Air Technical Assistance Approved 14-Dec-09

42534-012Demonstration Project for Improved Electricity Services to the Low-Income Communities in Rural Areas

Grant Approved 9-Sep-09

42059-012Energy Conservation and Emissions Reduction from Poor Household

Grant Approved 23-Sep-08

40277-012Community-Based Heating Supply in Rural Remote Areas

GrantClosed / Terminated

29-Jun-07

36255-012Renewable Energy Development in Small Towns and Rural Areas

Technical AssistanceClosed / Terminated

4-Nov-02

33349-012 Capacity Building for Energy Planning Technical AssistanceClosed / Terminated

17-Nov-99

32010-012Improving Energy Authority's Billing and Collection System

Technical AssistanceClosed / Terminated

10-Jun-98

31244-012 Energy Rehabilitation I Technical AssistanceClosed / Terminated

7-May-98

Overview of ADB Projects in Energy sector

Ongoing and most recently completed projectsEnergy Conservation and Emissions Reduction

from Poor HouseholdUlaanbaatar Low Carbon Energy Supply Project

Using a Public-Private Partnership Model Demonstration Project for Improved Electricity

Services to the Low-Income Communities in Rural Areas

Updating the Energy Sector Development Plan

The project detailsCompleted project

1. Project name: Ulaanbaatar Low Carbon Energy Supply Project Using a Public-Private Partnership Model

2. Project number: ADB TA7502

3. Type of financing: Technical Assistance

4. Source of funding: ADB, Japan Fund for Poverty Reduction

5.

6.

Project timeline:

Scope and project activities:

2010-2012 The conceptual technical design of the CHP5 plant; the identification of sector risks in constructing the CHP5 plant; the environmental impactassessment study; analysis of alternative project financing options; and dissemination ofknowledge in implementing the CHP5 project.

7. Financial amount 1,494,000 USD

Project details

H&J, Inc. (USA) in association with Mon-Energy Consult was selected by ADB to provide consulting services for implementation, management and progress monitoring of the Project.

Ministry of Mineral resources and Energy and Energy Authority are involved.Approval Signing Effectivity Closing

Original Revised Actual

28 February 2010

19 March 2010

19 March 2010

31 January, 2011

31 May 2012

-

Project milestone

Source: ADB

The project detailsCompleted project

1. Project name: Energy Conservation and Emissions Reduction from Poor Household

2. Project number: АDB-9127МОN

3. Type of financing: Grant

4. Source of funding: Mongolian Government, ADB, Japan Fund for Poverty Reduction

5.

6.

Project timeline:

Scope and project activities:

2009-20134000 poor families in UB area are targeted. Provided highly insulated ger blankets to the poor households in Ulaanbaatar (UB) to reduce consumption of fuel for space heating.

7. Financial amount US$2 Million from ADB (JFPR),The Government contributed US$ 0.15 million

Project details

H&J, Inc. (USA) in association with Mon-Energy Consult was selected by ADB to provide consulting services for implementation, management and progress monitoring of the Project.

The Ministry of Mineral Resources and Energy, Ulaanbaatar municipal government, and the private sector of Mongolia

Project milestone

Source: ADB

Approval Signing Effectivity Closing

Original Revised Actual

23 September 2008

10 January 2009

10 January, 2009

09 January, 2011

30 April, 2012

15 March, 2013

The project detailsCompleted project

1. Project name: Demonstration Project for Improved Electricity Services to the Low-Income Communities in Rural Areas

2. Project number: JFPR -9139

3. Type of financing: Grant

4. Source of funding: ADB, Japan Fund for Poverty Reduction

5.

6.

Project timeline:

Scope and project activities:

2009-2012Constructed electrical transmission and distribution networks for nine bag centres in Tuv, Bulgan, and Dundgobi aimags. Single-wire earth return (SWER) technology is introduced.

7. Financial amount 2,400,000 USD

Project details

300кm long SWER with substations have been constructed for 14 bag centres electrification. 3 elementary schools, 4 kindergartens, 5 commercial building and a tourist camp are supplied with electricity.

The Ministry of Mineral Resources and Energy (MoE), municipal governments, and the private sector of Mongolia

Project milestone

Source: ADB

Approval Signing Effectivity Closing

Original Revised Actual

09 September 2009

09 November 2009

09 November 2009

28 February, 2011

28 April, 2013

-

The project detailsCompleted project

1. Project name: Updating the Energy Sector Development Plan

2. Project number: ТA-7619(MON)

3. Type of financing: Technical Assistance

4. Source of funding: ADB, Japan Fund for Poverty Reduction

5.

6.

Project timeline:

Scope and project activities:

2010-2013

(i) comprehensively assessing the sector to identify investment gaps and the urgent reforms needed to create enabling environment for sustained sector development, (ii) formulating priority investments in energy sector, and (iii) enhancing capacity of the government in energy sector assessment and investment analysis.

7. Financial amount US$1 Million from ADB (JFPR),

Project details E-gen (Bangladesh)

in association with Mon-Energy Consult was selected by ADB to provide consulting services for implementation, management and progress monitoring of the Project.

The Ministry of Energy (MoE),

Project milestone

Source: ADB

Approval Signing Effectivity Closing

Original Revised Actual

19 October 2010

02 February 2010

02 February 2010

28 February, 2012

27 December 2012

-

Challenges and common key issues in projects

Energy Conservation and Emissions Reduction from Poor Household

Ulaanbaatar Low Carbon Energy Supply Project Using a Public-Private Partnership Model

Demonstration Project for Improved Electricity Services to the Low-Income Communities in Rural Areas

Updating the Energy Sector Development Plan

0 20 40 60 80 100 120 140

Planned

Revised

Actual

Project delays due to:Consultants or executers performancesData insufficiencyImmature technology ADB proceduresCommunication or contact frequency with ADB

Challenges and common key issues in projects

In case of “Updating the Energy Sector Development Plan” project. List of Firms submitted EOIs Flow chart of key activities

Firm Country

1 PDP Australia Pty Ltd Australia

2 SMEC International Pty Ltd Australia3 E. Gen Consultants Ltd Bangladesh4 HB Consultants Ltd Bangladesh5 Manitoba Hydro International Ltd Canada6 SOFRECO France7 Integration Environment & Energy Gmbh Germany8 MVV decon GmbH Germany9 CRISIL Infrastructure Advisory10 Power Research & Development Consultants Pvt Ltd India11 Vision RI Connexion Services Private Limited India12 Apriambiente Spa Italy13 Mercados Energy Markets International S.A. Spain14 Poyry Energy Ltd Switzerland15 IBS Research & Consultancy Turkey16 Economic Consulting Associates Ltd United Kingdom17 UNICON (UK) Limited United Kingdom18 Applied Technologies International, Inc United States

19 DH Infrastructure Economics & Finance United States20 H&J, Inc United States

Challenges and common key issues in projects

Work schedules of e-Gen Consulting company as of Sep 2011 and Sep 2012.

Challenges and common key issues in projects

Team Leader

Energy economist

Macro economist

Financial analyst

RE specialist Power engineer

Env. specialist

2011 02

Jinlong Ma Nguyen Anh Tuan

Kevin McCann

Nisha Menon Romeo Pacudan

Michael Emmerton

Na Won Kim

2011.09

Carlos Yemoli

Now Michael Emmerton

Sakari Oksanen

Hans Kremers

Alla Evdokimova Romeo Pacudan

Michael Emmerton

-

e-Gen

Project site

Energy economist

Team Leader

ADB

Macro economist

Financial analyst

RE specialist

Conclusion on Energy sector projects

ADB energy projects are comparatively smaller in size of financial amount and scope.

Some projects are introduced technical solution and progress: Ulaanbaatar clean air and SWER project. Consider scaling up.

More close cooperation between ADB and GoM to improve consultant’s performance.

End of 1990s:Capacity building, improvement and

rehabilitation

End of 2000s:New equipment and

technology, demonstration and FS

Next decade: Big size commercial or

development projects?

Recommendations and implications for ADB

Increase GoM involvement during the selection process of tenderer

Consider cancelation policy on Consultant at any stage of project

To be more careful on project Schedule planning

Thank you for your kind attention.