PROGRAM FOR SCALING UP RENEWABLE ENERGY IN MALI (SREP-MALI) AIDE MEMOIRE OF THE JOINT MISSION

La page est créée Serge Bigot
 
CONTINUER À LIRE
PROGRAM FOR SCALING UP RENEWABLE ENERGY IN MALI (SREP-MALI) AIDE MEMOIRE OF THE JOINT MISSION
PROGRAM FOR SCALING UP RENEWABLE ENERGY IN MALI

                   (SREP-MALI)

       AIDE MEMOIRE OF THE JOINT MISSION
               Bamako – 18 – 29 April 2011

                                                  1
PROGRAM FOR SCALING UP RENEWABLE ENERGY IN MALI (SREP-MALI) AIDE MEMOIRE OF THE JOINT MISSION
Aide Mémoire of the Joint Mission
                                              SREP Mali

                                                 18 – 29 April 2011

I. INTRODUCTION

    1.   The objective of the Scaling-up Renewable Energy in Low Income Countries Program (SREP) - one of
         the three programs under the Strategic Climate Fund (SCF) - is to test and implement low carbon
         strategies in the energy sector to address climate change. SREP is aimed at demonstrating the social,
         economic, and environmental viability of low carbon development pathways in the energy sector. It
         seeks to create new economic opportunities and increase energy access through the production
         and use of renewable energy. The SREP program will enable Mali to initiate the process to achieve a
         transformational change, that will lead the country towards a low GHG emission development. This
         will be made possible by harnessing the renewable energy potential of the country instead of
         developing the economy based on expensive and polluting fossil fuels, and on inefficient use of
         biomass.

    2.   In July 2010, Mali was selected as one of the pilot countries under the SREP. The Government of
         Mali (GoM) has confirmed its interest in participating in the program and sent a letter to that effect
         to the SREP Sub-Committee in August 2010. It is within this context that the African Development
         Bank (AfDB) has been designated to take leadership of the Multilateral Development Banks (MDBs)
         to support the GoM in consultation with all stakeholders - UN agencies, bilateral partners, private
         sector and civil society organizations - to define and implement the SREP Investment Plan.

    3.   In February 2011, the MDBs made a first mission (scoping mission) led by the GoM to discuss the
         aim of the SREP program, its benefits, the modalities of its implementation in the country and the
                                                1
         early results of the stocktaking report .

    4.   Following the first mission, the GoM invited the MDBs to participate in a second mission (joint
         mission) from 18 to 29 April 2011. The main objectives of the missionwere: (i) discuss the strategic
         axes for the investments proposed by the SREP National Commission; (ii) assist the said Commission
         in finalizing and validating the investment priorities; (iii) support the design of the concept notes of
         the projects that will be implemented during Phase 2; and (iv) initiate an environmental and social
         assessment of the investment plan and start developing the M&E framework.

    5.   The joint mission was led by the SREP national focal point, Mr. Sinalou Diawara, Director of the
         Direction Nationale de l’Energie (DNE). From the MDBs’ side, under the leadership of the AfDB, the
         team was led by Mr. Nigambaye N’Doundo, Power Engineer; the World Bank (WB) team led by Mrs.
         Peggy Mischke, Renewable energy Specialist; and the International Finance Corporation (IFC) team
         led by Mr. Paterne Koffi, Infrastructure Specialist, jointly supported the Government. The UN System
         (UNDP and UNEP) fully participated in the joint mission. The full list of participants to the mission
         (GoM, MDBs and UN) is presented in Annex 1.

    6.   The mission expresses its deep appreciation to the GoM and all parties involved (national
         institutions, civil society organizations, private sector representatives, Technical and Financial

1
 See Aide Memoire of the scoping mission for more information. The executive summary of the stocktaking report was finalized in
April 2011 and was presented in the context of the technical workshop of the joint mission.
                                                                                                                             2
PROGRAM FOR SCALING UP RENEWABLE ENERGY IN MALI (SREP-MALI) AIDE MEMOIRE OF THE JOINT MISSION
Partners (TFPs)) for their interest in the program and the quality and transparency of the
          discussions.

II. PROGRESS OF THE JOINT MISSION

    7.   According to the Terms of Reference of the joint mission (see Annex 2), the main activities
         undertaken during the mission were the following:

        Organization, between 19 and 21 of April 2011, of a national consultative workshop for the
         validation of strategic investment axes. The organization of the workshop was justified by the need
         for the GoM to develop its SREP Investment Plan through broad consultation and dialogue with key
         stakeholders. The opening ceremony was chaired by the Minister of Energy and Water, SEM Habib
         OUANE, who emphasized the importance of renewable energy in the development path of Mali. The
         Minister was accompanied by his Secretary General, the SREP National Focal Point (DNE’s Director),
         and representatives from the AfDB and the WB. The speeches focused on: (i) the need to diversify
         energy sources to ensure energy security in Mali through environmental friendly and sustainable
         economic growth; (ii) the need to anticipate future developments and improve predictability and
         efficiency of public policies in the energy sector; and (iii) the need to further promote the
         development of renewable energy in Mali for the benefit of the poor. The workshop brought
         together 85 participants representing national institutions, the Malian private sector, NGOs, TFPs,
              2
         etc.

         Five working groups were organized to address the following topics (see the results of group work in
         the next section):
             • Group 1: Institutional, legislative and regulatory framework in the field of renewable energy;
             • Group 2: Information, training and strengthening of the institutional, organizational and
                        technical capacities of the players involved in the renewable energy sector;
             • Group 3: Studies, research, as well as information and knowledge sharing;
             • Group 4: Investments in technologies and regions with high potential for the social and
                        economic development of the country;
             • Group 5: Environmental and Social Assessment of the Investment Plan.

         In the context of the joint mission, the workshop was valuable to obtain comments and inputs from
         relevant stakeholders involved in the renewable energy sector, to fine tune and validate the main
         strategic investment axes. This workshop has contributed to the development of the Investment
         Plan and to the definition and prioritization of project ideas. It has been a key element of the
         consultative process as all relevant players in the Malian energy sector were involved. The Terms of
         Reference of the workshop are available in Annex 3. The minutes of the workshop are available in
         Annex 4.

        Consultation meetings with key stakeholders. The consultationsheld during the second week of the
         mission with the main stakeholders, were key to deepen the work done as part of the workshop
         (including definition of project ideas, and identification of potential co-financing opportunities) and

2
    See annex 4.

                                                                                                              3
PROGRAM FOR SCALING UP RENEWABLE ENERGY IN MALI (SREP-MALI) AIDE MEMOIRE OF THE JOINT MISSION
ensuring proper consideration of the contributions of each stakeholders group in the drafting of the
       Investment Plan.

       Four consultations have been held with representatives of various institutions in Mali regarding the
       Energy Policy, particularly with: (i) national institutions; (ii) civil society; (iii) private sector; and (iv)
       TFPs. Terms of reference for the consultations are available in Annex 5. The minutes of the meetings
       are available in Annex 6.

      Mini-workshop between MDBs / UN and the SREP National Commission. The goal of the mini-
       workshop was to deepen the thinking on the investment projects based on the priorities and
       suggestions that emerged from the various consultations.

8.     In addition to the aforementioned events, the joint mission also conducted the following activities:

      Visit of the Hybrid Power Plant of Ouéléssébougou. On 22 April, the joint mission visited the hybrid
       power plant (diesel / solar photovoltaic) – installed in an isolated center managed by Energie du Mali
       S.A. (EDM) in the City of Ouéléssébougou, located 80 km away from Bamako. The participants
       included representatives of the MDBs, the SREP National Commission (DNE, Agence Malienne pour le
       Développement de l’Énergie Domestique et de l’Electrification Rurale (AMADER) and CNESOLER), the
       Ministry of Energy and Water, and the Ministry of Environment. The visit allowed all the participants
       to inquire about the use of integrated technologies, namely diesel and solar photovoltaic, in isolated
       centers managed by EDM as well as to understand the strengths and weaknesses of such systems. For
       more information, see Annex 8.

                                                                   3
      Meeting with the management of Energie du Mali S.A . The MDB’s team held a meeting with EDM,
       Mali’s national utility. The management stated that it had been mandated by the Board of Directors
       to pursue opportunities in the sector of renewable energy with a view to diversify the sources of
       generation and to be less exposed to the rise of fossil fuel prices. Even though the key strategic
       decisions are made at the Ministry of Energy and Water level, EDM confirmed that they are willing to
       sign long-term Power Purchase Agreements and thereby sell electricity generated by Independent
       Power Producers, depending on the affordability of tariffs proposed. EDM sees solar and hydro
       energy as technologies with the highest potential to be implemented in the country. For this purpose,
       EDM has identified a number of locations alongside the existing grid that gather all the requirements
       to make a project economically viable.

      Meeting with TFPs to deepen the discussion on synergies with existing projects / initiatives. In
                                                                 th
       addition to the consultations held with the TFPs on the 26 of May (paragraph 30), the MDB’s team a
       working session with Agence Française de Développement (AFD). AFD gave an update on their
       involvement in the field of renewable energy in Mali, primarily biofuels. AFD has also indicated its
       interest in the SREP and noted that resources would be available to the renewable energy sector in
       Mali from 2013 onwards.

3
    See Annex 7.
                                                                                                                    4
4
       In addition, a team member of the WB, working on the program "Lighting Africa" , took part in the
       mission to explore synergies between the SREP and the Lighting Africa program. As part of the
       mission, the WB discussed the program activities with AMADER, which is the implementing agency
       and is also involved in development of the SREP Investment Plan. A discussion was held about the
       opportunity to leverage extra funding from Nordic Funds allocated to Mali. A proposal has been
       prepared to receive funds from the Global Environment Fund as well. These represent opportunities
       and synergies to be explored with the SREP, particularly for rural electrification activities to be carried
       out in solar photovoltaic. The Lighting Africa activities are expected to begin shortly.

9. The mission took place in a positive atmosphere, with a dynamic and significant commitment of the
   GoM, which is keen to successfully implement the SREP, and with a commitment from the
   development partners in supporting the GoM in developing and implementing the SREP-Mali.

10. The Minister of Energy and Water, SEM. Habib OUANE, granted on 28 April, a hearing to the
    delegation of the MDBs and the UN, with the SREP National Commission. The delegation presented to
    the Minister the progress and interim results of the work jointly carried out by the mission. It was
    reported that guidance provided by the Minister during the workshop opening speech guided the
    work done by the workshop and consultants participants. The main points raised during the meeting
    are as follows:

      • Submission of the Investment Plan: Given the state of completion, the submission of the
      investment plan is postponed until the second half of 2011 in order to ensure the quality of the
      document delivered. However, it was decided that the SREP National Commission will make a
      presentation on the status of the investment plan activities during the SREP Sub-Committee meeting
      in Cape Town in June.

      • Investment Projects: A first draft of the Investment Plan has been developed, giving priority to (i)
      two solar PV projects (including a solar PV project to be structured as an IPP with EDM as the off taker
      and a second solar PV for rural electrification carried by the national agencies), (ii) a bioenergy project,
      (iii) a mini-hydro project, and finally the strategic coordination of the SREP program.

      • Funds mobilization: The delegation noted the financial difficulties faced by the SREP National
      Commission pending the approval and disbursement of the Investment Plan Preparation Grant. The
      consultations made in the different regions of the country during the preparatory phase of the SREP
      program remain to be done. The join mission delegation informed the Minister that the mobilization
      of various sources of funding for the priority projects identified will continue in the coming weeks.

      In response to the presentation, the Minister thanked the MDBs and the UN for the quality of the
      work and for their support to the SREP National Commission. He reiterated the commitment of the
      Ministry of Energy and Water in particular and the GoM in general in strengthening the pioneering
      role of Mali in the development of renewable energies in the region, hoping that the development of
      such technologies will act as a gateway to improve the energy mix of the country, while providing
      opportunities for job creation for Malian youth, which represents nearly 50% of the population.

4
    The "Lighting Africa" program was launched in Mali in October 2010 as an initiative from the World Bank, which aims to allow
access by the population to modern off-grid lighting products in Sub-Saharan Africa. The major objective of this program is to
mobilize but also to support the private sector in the sustainable supply of modern off-grid lighting to about 2.5 million people. In
October 2010, following a workshop with stakeholders, the team of "Lighting Africa" has signed a Memorandum of Understanding
with AMADER. Further information is available on www.lightingafrica.org.

                                                                                                                                   5
Finally, the Minister stressed that a quick execution of the Investment Plan and reduction of
   associated transaction costs, in accordance with the Paris and Accra Declaration, must be integrated
   into the implementation of the SREP.

III. MAIN OUTCOMES OF THE MISSION

III.1 Workshop

11. Overall, the workshop advanced well and the objectives set have been met. The presence of
    participants from various structures, have led to interesting and fruitful discussions in the working
    groups. Each group identified the strengths, weaknesses and opportunities related to the various
    themes under discussion. The five priority axes proposed by the SREP National Commission have
    been validated. These are:
        (i) Review the legislative, regulatory and institutional and financial framework in the energy
        sector;
        (ii) Complete diagnostics, impact studies, surveys and research on renewable energy
        technologies;
        (iii) Raise awareness and disseminate information on renewable energy, and ensure the
        strengthening of all stakeholders;
        (iv) make priority investments in renewable energy equipments/ infrastructure and;
        (v) develop an efficient system of information sharing and knowledge management as well as
        monitoring-evaluation of all program activities under SREP.

12. Suggestions of activities within the context of each working group were very rich and have
    subsequently been analyzed by the SREP National Commission, the MDBs and the UN. These
    suggestions have helped fuel the preparation of projects ideas to feed into the Investment Plan. The
    following should be highlighted:

        • the need to strengthen the legislative, regulatory and institutional framework to establish an
          environment more conducive to the development of renewable energy, including investment
          from the private sector;
        • the need to strengthen the capacities of different players on RE technologies but also on other
          aspects related to the implementation of renewable energy projects, as well as the need to
          support investment projects through proper analytical work and specific research;
        • the interest of the Malian and international private sector for the SREP and their desire to
          participate in the development of renewable energy projects;
        • the willingness of the stakeholders to focus on the following investment projects and
          technologies: (i) solar PV; (ii) mini / micro hydro; and (iii) biofuels / biomass. Proposals for
          several projects and investment initiatives have been submitted. During the second week of
          the mission, a number of working groups composed of the SREP National Commission and
          MDBs were created to discuss and analyze the proposed projects ideas in order to ensure their
          eligibility under the SREP, on the basis of technical and quality criteria and with an adequate
          institutional set up.

                                                                                                        6
13. Group 1: Institutional, legislative and regulatory framework in the renewable energy sector. Group
    1 was composed of about ten people from national institutions. Discussions in Group 1 focused on
    the key strengths and weaknesses/constraints identified in the stocktaking report. Members of the
    group have validated the results and have worked on both a prioritization of key strengths and
    constraints, as well as activities to be implemented under the SREP to address these constraints. The
    example of development of renewable energy in Germany was discussed, including the mechanism of
    "feed-in tariff" and its effect on electricity prices for end users. The legal process for rereading the
    existing texts in force was also discussed. Regarding the activity "establishment of a banking facility",
    the example of the Rural Electrification Fund (FER) which provides three types of instruments (grants,
    lines of credit, guarantees) was discussed with a view to maximize synergies within the context of
    rural electrification. Following these discussions, the group then tried to determine the budget
    needed for these activities and came up with a global investment amount of USD 8.8 million. See
    Annex 4 for more information.

14. Group 2: Information, training and reinforcement of the institutional, organizational and technical
    capacities of the stakeholders involved in the renewable energy sector. The group consisted of
    about twenty participants from different areas: (i) GoM; (ii) private sector; (iii) NGOs; (iv) producers
    and sellers of electricity; (v) research structures; (vi) regional bodies; (vii) and financial and technical
    partners. Discussions in Group 2 focused on better informing, raising awareness and strengthening
    the capacity of main players involved in the renewable energy sector in Mali. The great variety of
    stakeholders in the group has enriched the discussions and the proposals that emerged
    consequently benefited from it. The group first identified the key players in the renewables sector
    and grouped them into seven categories: (1) central and local GoM institutions; (2) Educational
    Institutions; (3) private operators; (4) NGOs; (5) Commercial Banks and Microfinance Institutions; (6)
    Energy Consumers; and (7) business enterprises involved in the generation and supply of electricity.
    The participants then identified the strengths, limitations and needs of each category. Following
    these discussions, the group estimated a total investment amount of USD 10 million for this
    component. See Annex 4 for more information.

15. On the basis of identified needs, the group proposed activities that could be included within the
    SREP Investment Projects - as a component / sub-project component or activity - to strengthen the
    stakeholders’ capacities. Examples of proposed activities are:
        • Information: (i) revamping of the DNE’s website to serve as an official source of relevant
          information regarding renewable energies in Mali; (ii) capitalize and disseminate lessons
          learned within projects, studies and research on renewable energies; and (iii) inform
          consumers of standards, quality and costs of renewable energy solutions/products available;
        • Awareness raising: (i) sensitizing local authorities about the benefits of renewable energy
          technologies and the need to assist private developers in their promotion activities; (ii)
          collaboration with the Industry National Directorate to establish standards for renewable
          energy equipments; and (iii) raising awareness among the GoM institutions on the need to
          develop appropriate financing mechanisms (guarantees) with commercial banks in order to
          stimulate the development of renewable energy projects;
        • Training: (i) strengthening the capacity of the CREE and EDM to develop a feed-in tariff system
          by type of technology; (ii) look into experiences from other countries; (iii) provide support for
          the preparation of renewable energy projects that may benefit from carbon credits; and (iv)
                                                                                                              7
train analysts in commercial banks and micro finance institutions for them to be able to better
              assess and support renewable energy projects.

    16. Group 3: Studies, research, lessons sharing and knowledge management. The group consisted of
        about ten national players and experts from technical and financial partners of Mali. Discussions on
        Group 3 focused on conducting a research program upstream and downstream of main investments,
        to generate and share the technological knowledge acquired. The group relied on findings from the
        stocktaking study to identify opportunities and bottlenecks of the current arrangements for research
        and knowledge sharing in the field of renewable energies. The discussion highlighted the following
        points:
            • The availability of studies on (i) overcoming the identified barriers in order to lead to the
              adoption of renewable energy and (ii) renewable energy potential and resources in Mali. The
              major barrier identified by participants regarding RE research is the lack of financial resources
              and human capacity to conduct further studies for the development of projects.
            • Regarding scientific research on RE, the country has taken actions that will lead to the creation
              of research laboratories, which main purpose is to create and use knowledge for biofuels, and
              to complete the mapping of RE resources in the country. The lack of financial resources
              allocated to applied research and qualified research staff are important obstacles to the
              development of RE in Mali.
            • A number of players currently publish reviews and magazines in the field of renewable
              energies. However, these publications are irregular and are not sufficiently disseminated to
              really inform the public and generate interest in the adoption of renewable energies on a large
              scale. Among the limitations that hinder the development of renewable energy knowledge, it
              was stressed that renewable energies are not considered as a priority in the Strategic
                                                                     5
              Framework for Growth and Poverty Reduction in Mali.

    17. To consolidate the corpus of resources and data on renewable energies, improve the existing
        arrangements and develop new and more efficient systems to stimulate knowledge management,
        the following activities are proposed:
            • Support the completion of the mapping and inventory of renewable energy assets in the
              country;
            • Create a network SREP / Renewable Energies for supporting the existing information systems
              (EIS, ENR newsletter, ELCOM, GIZ ...);
            • Enhance the dissemination of renewable energy facilities/equipments through outreach and
              increase in communication;
            • Provide training to relevant players involved in the maintenance of renewable energy
              technologies and ensure that applied research is done in the context of the use of renewable
              energy equipments by the Malians;
            • Provide equipment to existing laboratories or create new laboratories if needed;
            • Strengthen the development of quality standards / create a technical and methodological
              standard for the production of Jatropha (study on seed quality, standard oils, etc.)

5
 It is important to note that renewable energies should be incorporated in the forthcoming Strategic Framework for Growth and
Poverty Reduction, currently under development.
                                                                                                                                8
Following these discussions, the group tried to work on an estimated budget for the proposed
        activities and they suggested about USD 10 million. See Annex 4 for more information.

    18. Group 4: Investments in technologies and regions with high potential for the social and economic
        development of the country. The group consisted of twenty five participants from different sectors:
        (i) national agencies; (ii) commercial banks; (iii) NGOs; (iv) local private sector companies in the field
        of renewable energy; and (v) MDBs. The objective of Group 4 was to discuss and identify sustainable
        investments opportunities in the renewable energy sector, and to identify the technologies and
        regions with the highest potential. The group first discussed the principles and mechanics of SREP
        and how the amounts allocated to Mali could be leveraged to a target that meets the SREP request.

    19. The Malian private sector companies identified the expensive financing provided by local
        commercial banks as a huge constraint in the development of the sector, stating that without public
        support, their impact on the transformation of the sector would be insignificant. MDBs stated that
        the agency/partner in charge of implementing SREP resources, allocated under the Investment Plan,
        may be either a private sector company or a national agency (e.g. AMADER, CNESOLER). It was
        highlighted that the SREP Sub-Committee – that allocates the funds – expects the Investment Plan to
        show a strong mobilization of the private sector. The national agencies have a strong desire to
        directly execute the funds. This explains why most of the projects presented initially under Group 4
        were to be executed by national agencies. Following the discussions, the group estimated a total
        investment amount of USD 152 million for a pipeline of 20 projects. See Annex 4 for more
        information.

    20. In the end, the group divided the projects proposed initially in two categories. The first category,
        with a total cost estimated at USD 68.75 million, included ten projects considered as a priority by the
        GoM. The second category included a number of projects considered as an alternative to those
        mentioned previously. It is important to note that these projects were part of the national agencies’
        pipelines, even before Mali has been chosen as SREP pilot country and were linked to the National
        Strategy for the Development of Renewable Energies. Therefore, after the workshop, these projects
        were discussed in more detail by the SREP National Commission and the MDBs to identify projects
        that had the potential to remove the identified barriers and to meet the criteria of SREP design
        principles. The work continued throughout the mission to improve the projects ideas and will
        continue for a few weeks after the joint mission.

    21. Group 5: Environmental and Social Assessment. The group was composed of representatives from
        the SREP National Commission (DNACPN, DNE), MDBs (AfDB) and NGOs. The group's objective was
                                                                 6
        to initiate work on the environmental and social analysis . This initial work provided some interesting
        results and contributed to the identification and selection of priority investments. The group's
        activities have helped to:
            • analyze the SREP objectives and the proposed investments priorities with regards to
               environmental and social concerns;
            • prioritize proposed investments, from a sustainable development perspective; for instance
               address the impacts of greenhouse gas emissions from biomass to convert it into clean

6
    See annex 10.
                                                                                                                9
biomass (i.e. recycling GHG emissions through biogas for example). In addition to the
         electricity sector, SREP could have an incremental positive impact on agriculture that would
         benefit fully from the SREP transformational impacts;
       • To do this, an innovative and programmatic financing could be proposed: a fund that would
         finance mitigation measures arising from the environmental and social impact studies of the
         investment projects, as well as mitigation projects presented by NGOs and communities. The
         capital of this fund could amount to USD 10 million. The preliminary results of the
         environmental and social analysis will confirm whether such fund is relevant and what could be
         its modalities.

22. The discussions of the working group led to the identification of ideas for community projects
    including some related to jatropha, sweet sorghum, biogas, mini hydro, landfill structured promoting
    biogas and compost, and renewable energy laboratories in the UNESCO Associated Schools in Mali.
    In brief, the logic of the environmental and social analysis has served as a first filter in the
    investment decision process, from the perspective of maximizing SREP positive impacts. See Annex 4
    for more information.

III.2 CONSULTATIONS

23. As part of the workshop, consultations were made according to specific themes. During the second
    week of the mission, additional consultations were held with different types of stakeholders, this
    time to better take into consideration the contributions of the various stakeholder groups. See
    Annex 6 for full reports of the consultation meetings.

      National Institutions

24. The consultations with the national institutions involved in the sector of renewable energy were
                    th
    held on April 26 . A dozen of representatives from diverse ministries were represented - Ministry of
    Territorial Administration and Local Governments, Ministry of Water and Sanitation – a number of
    National Directorates - National Directorate of Energy Management, National Directorate of
    Industry, National Directorate of Water and Forests, and other national institutions such as
    AMADER, ANADEB and CNESOLER. The consultations focused on the coordination mechanisms of
    sectoral policies, the strategic outcomes of the SREP and risks related to the formulation and
    implementation of the SREP.

25. In terms of coordination mechanisms, participants stressed the need to review the institutional and
    legal texts to refine the roles and functions of relevant institutions and to establish a mechanism to
    coordinate their activities. Afterwards, participants cited a number of strategic outcomes that SREP
    should attain: (i) the existence of a legal, regulatory and institutional framework to better promote
    renewable energy, and (ii) reduction on fossil fuels dependence through the increase of installed
    capacity from renewable energy sources.

26. In terms of risks associated with the formulation and implementation of the SREP, the participants
    highlighted the volatility of renewable energy technologies’ cost, and the fact that this could
    increase project costs between the design and implementation phase. Furthermore, it has been
    mentioned that private sector involvement would be put at risk in case of an unsuccessful
    international tender process linked to the lack of capacity by the government bodies in
    implementing and overseeing a proper, competitive and efficient procurement process for the

                                                                                                       10
choice of a Project Developer. Still, both IFC and AfDB Private Sector Department will be open to
    different procurement modalities, including Direct and Competitive Procurement, whichever the
    most appropriate and bearing in mind each MDB’s rules and guidelines. It should be noted that
    participants did not identify any comparative advantages in having their institutions implementing
    SREP projects since these are not yet designed. Finally, the participants did not identify any critical
    assumption worth being mentioned for SREP implementation.

       Private Sector

27. The meeting with private sector organization took place in the National Directorate of Energy. It was
    chaired by the Associate National Director of Energy. Participants to the meeting were: (i) national
    agencies, (ii) local private sector companies in the field of renewable energy, and (v) MDBs
    (including the AfDB and IFC).

28. Discussions evolved around a number of issues which, according to the Malian private sector, are
    obstacles to their greater involvement in the renewable energy sector. Among other things, private
    sector representatives indicated that: (i) supporting mechanisms for small operators should be
    developed, particularly for those operating in rural areas; (ii) it is essential to define and establish a
    sustainable funding mechanism for renewable energy (access to bank financing, implementation of a
    guarantee fund and promotion of equity between rural and urban areas); (iii) rural producers of
    electricity should enjoy benefits similar to those received by EDM; (iv) a broader discussion on the
    development of legislation affecting the private sector in Mali in the field of renewable energies is
    vital; (v) it should be developed new forms of partnership between public and private sectors to
    stimulate new investments; (vi) it is essential to develop a good policy of cooperation /
    communication / information between different players; (vii) the legislation must evolve to facilitate
    access to land for the implementation of renewable energy projects in general, and solar energy
    projects in particular; and (viii) an information sharing mechanism should be established to
    showcase the private sector initiatives in the field of renewable energies.

29. Given the strong momentum of the Malian private sector and the large number of projects
    proposed by them, the SREP National Commission recommended that any project proposal should
    be submitted to them in the format defined by the SREP guidelines and should meet the SREP
    criteria. In addition, it was explained to the national private sector that many opportunities would
    emerge during the implementation of SREP projects, according to the defined projects.

       Civil Society

30. The consultative meeting with civil society took place at the National Directorate of Energy. It was
    chaired by Mr. Alhousseini - CNESOLER. The participants were: (i) representatives of NGOs working
    in the energy sector; (ii) a few consumers associations, (iii) CNESOLER, (iv) MDBs and (v) the UN.

31. The discussions evolved around issues such as the adequacy and relevance of current arrangements
    in the energy sector in general and in the field of renewable energies in particular. In this regard,
    participants agreed on: (i) the need to review the laws and regulations in the energy sector and
    especially in the sub-sector of renewable energies in order to make the sector more attractive to
    different players; and (ii) the need to define criteria for sustainable production of biofuels, focusing
    primarily on local channels (small farms run by small producers). According to participants, the most
    important activities that SREP should primarily engage in Mali are: (i) the promotion and use of solar
    energy in simple systems or hybrid systems, together with other sources of energy to improve the
    overall performance of decentralized solutions; (ii) the promotion and use of other renewable
    energy sources available in Mali that stimulate the creation of new jobs and generate revenues such
                                                                                                           11
as using agricultural residues for cogeneration, biofuel and its derivatives for power generation; (iii)
    the creation of incubation centers to facilitate the creation of new private companies; (iv) the
    creation of alternative domestic energy sources; (v) the establishment of appropriate financing
    mechanisms for renewable energy in order to facilitate its acquisition and widespread use; and (vi)
    the development of private forests dedicated to meet the needs of fuelwood. Finally, the civil
    society has expressed interest in being involved in the implementation and monitoring of SREP
    activities to maximize a natural comparative advantage given their proximity with the populations.

      Technical and Financial Partners

                                                                                                          th
32. The MDBs involved in the implementation of SREP-Mali held a consultation meeting on the April 26
    with the TFPs involved in the sectors of energy and environment. The objective of this consultation
    was to strengthen the understanding of the TFPs on the SREP objectives and the progress achieved
    in the development of the Investment Plan, as well as to discuss possible synergies between current
    and proposed initiatives with a view to attract the interest of the TFPs via co-financing
    opportunities. The TFPs attending the meeting were the GIZ, Norway Embassy, the Delegation of the
    European Union, UNDP, UNEP and the Embassy of Denmark.

33. A debate was initiated with the participants after a series of presentations was made by the AfDB. It
    appears that the contribution of TFPs is subject to a better definition of the SREP projects, prior to
    the identification of synergies between the SREP and projects / initiatives already being
    implemented or in the pipeline. Thus, specific discussions will occur over the coming weeks with
    donors involved in the renewable energy field. The participants noted the necessity to move
    towards proven technologies (solar PV, mini-hydro and biomass / biofuels) and to call for co-
    financing (private sector included) for leveraging additional resources, taking into account the
    limited SREP contribution. On projects / initiatives underway or planned, a detailed table is available
    in Annex 10. It is clear from the discussion that there are a significant number of projects and
    initiatives underway or planned in the RE area and that those projects / initiatives will strengthen
    the framework within which the SREP is developed.

34. At the end of the meeting, it was noted that:
        • The join mission team was at the disposal of the TFPs to engage in bilateral meetings to further
          explore synergies between the SREP and their projects/initiatives;
        • The TFPs would be invited to participate in the development of investment projects where
          synergies have been identified regarding their current and future projects;
        • The TFPs would be invited to comment on the draft Investment Plan when it is ready for
          consultation.

III.3 MINI-WORKSHOP BETWEEN MDBs/UN AND THE SREP NATIONAL COMMISSION

35. Initially, two mini-workshops were planned, one focusing on project proposals and the other one on
    the M&E framework and the environmental and social analysis. Given the status of projects
    development, the joint mission decided to focus on further defining projects ideas on the basis of
    what was jointly identified during the joint mission.

36. Investment Projects under SREP Mali: The diagram below was the result of the first day of this mini
    workshop on proposed projects; it was based on the stocktaking report, the results of the mission
    workshop, the working groups and the various consultations and discussions held during the
    mission. The diagram should be considered as a draft proposal to be refined and submitted for
    review to the MDBs. The diagram includes: (i) a solar PV project implemented by the private sector -
                                                                                                         12
SREP amount would be about USD 12 million [30% of the SREP envelop] (ii) a second solar PV project
    for rural electrification executed by national agencies and local private sector companies - SREP
    amount would be about USD 12 million [30% of the SREP envelop] (iii) a bioenergy project
    implemented by national institutions - SREP amount would be about USD 6 million [15% of the SREP
    envelop], (iv) a mini / micro hydropower project implemented by national agencies - SREP amount
    would be about USD 6 million [15% of the SREP envelop], and finally (v) the strategic coordination of
    the SREP program - SREP amount would be about USD 4 million [10% of the SREP envelop]. The
    initial allocation of funds for these projects is not final. It is expected that the amounts and
    instruments will be refined and proposed in due time, depending on the identification and validation
    of appropriate partnerships and co-financing opportunities.

37. The proposed projects were presented and discussed during the last meeting of the mission. Initial
    summaries of proposed projects are available in the next paragraphs. Concept notes for investment
    projects through which the activities of SREP Mali will be implemented need to be developed further
    in the coming weeks (see calendar) and incorporated in the investment plan.

38. The strategic coordination of the program aims to ensure that monitoring and evaluation of the
    program, cross-sectoral capacity building of the key stakeholders, knowledge management, and
    revision of the legislative, regulatory and institutional frameworks are well managed. All of this must
    be done in coordination with the four identified projects in order to improve their overall
    implementation. In addition to the activities proposed for this strategic coordination, it was

                                                                                                        13
suggested that an activity identified as "fundraising" be added to ensure that further co-financing
    can be raised for the benefit of the program. A proposal was also made to explore the idea of
    establishing lines of credit in commercial banks with a view to support local private sector
    development and potential buyers of renewable energy equipment. Finally, it was proposed that,
    based on identified needs, the coordination unit would conduct some cross-sectoral analytical
    studies that support the four projects.

39. Project 1 is a Solar PV to be implemented by the private sector as an IPP. The objective is to
    contribute to social and economic development and to fight against poverty in Mali, demonstrating
    the feasibility of an integrated energy model. Through the use of solar PV technology, the project
    would produce nearly 20 MW (to be determined) of additional electricity. Further to the increase in
    generation capacity, the project aims at preparing the path for future development of private sector
    initiatives and public-private partnerships, while doting the responsible national agencies with the
    capacities needed and ensuring that the procedures and legal agreements (e.g. Concessions and
    Power Purchase Agreements) are conducted according to international standards and taking into
    account MDBs guidelines. It was stressed that the SREP contribution would be paid directly to the
    project company and that the MDBs would provide the “minimum concessionality to catalyze
    investment” as per SREP Guidelines. In addition, the national ministries will be part of discussions to
    establish proper sovereign guarantee mechanisms to improve the credit risk profile of a transaction
    of this type. During the meeting, the discussions focused particularly on the timing of the project
    and the modalities for selecting the private developer. Other questions were raised, particularly in
    terms of carbon credits and how the project could benefit of such credits. For the time being, it is
    difficult to estimate the amount of revenue associated with these credits but it is important that
    these funds be used to stimulate overall viability of the project.

40. Project 2 is a Solar PV for Rural Electrification: Energy issues have forced Mali to develop adequate
    tools to provide people, especially in rural areas, with access to modern energy solutions. In addition
    to regulatory texts, rural electrification is governed in Mali by the reference framework for the
    development of rural electrification. The main objective of the proposed project is to contribute to
    the social and economic development and fight against poverty in Mali through the integration of
    renewable energies in production and distribution systems of electricity in rural areas. This will
    allow: (i) enhancing the implementation of Solar PV solutions in a number of locations currently
    using diesel generators; and (ii) providing Solar PV kits to villages not electrified in a number of
    regions in Mali. A pre-feasibility study was conducted on the identification of several localities. The
    proposed project will also include activities to promote income-generating activities in rural areas,
    the productive use of energy and job creation. Furthermore, technical assistance, training,
    reinforcement of partnerships, and monitoring and evaluation at project level will be ensured, while
    incorporating synergies with partners, and other development initiatives in Mali. The project
    beneficiaries are the rural areas populations identified throughout the territory. It was proposed
    that the execution of the project is assigned to AMADER in partnership with CNESOLER, and with the
    active participation of the Malian private sector in implementing the needed infrastructures
    (including operators of rural electrification services).

41. Regarding Project 3, a Mini-Hydro, it is important to mention that Mali has a remarkable hydro
    potential which is being underused. The potential lies mainly in the regions of Sikasso, Kayes and
    Mopti. Pre-feasibility studies exist for some locations and successful implementation would greatly
    contribute to the energy mix of the country while reducing its dependence on fossil fuels and
    achieving an electrification program that would improve the access of populations to modern and
    clean energy solution. The project will use part of SREP resources to showcase the improvement in
    the living conditions of populations through the development of mini/micro hydro projects. The
    project will address the sectoral constraints and weaknesses related to: i) lack of access to electricity

                                                                                                          14
by rural populations at affordable prices and with a view to save forestry/wood resources; (ii) the
    enhancement and streamlining of the use of renewable energy resources in the country; and iii) the
    weak involvement of private investors in the development of renewable energy solutions. The
    project components identified are: (i) hard investments, (ii) establishment of an institutional and
    capacity building / monitoring / evaluation and knowledge sharing framework. The project will be
    implemented by the DNE with support from the MDBs.

42. Regarding project 4 – bio-energy and considering the increasing needs in electricity and energy for
    cooking, and considering the increasing prices of fossil fuels and the deforestation issues, it was
    suggested to design a SREP project dedicated to bioenergy. The main goal of the project is to
    increase electricity access and the production of clean cooking fuels for households, small and
    medium enterprises and local communities through greater generation of electricity and biofuels
    derived from biomass. The project will finance investments, improve the legal and regulatory
    framework and strengthen the capacities of key stakeholders in the biofuel, biogas and woodfuel
    sub-sectors. The proposed investments include amongst others, the purchase and installation of
    biofuel production units, and multifunctional platforms. Measures will be put in place to encourage
    the creation of small and medium enterprises (SMEs) to enable the development of improved stoves
    at a large-scale. It was proposed that activities in the biofuel sub-sector will be implemented by the
    Agence Nationale de Développement des Biocarburants (ANADEB) while those related to biogas and
    woodfuel will be implemented by AMADER).

III.4 ADDITIONAL ACTIVITES THAT CONTRIBUTE TO THE DEVELOPMENT OF THE INVESTMENT PLAN

43. The joint mission also discussed the status of some preparatory activities, including the
    environmental and social analysis of the program, the approval schedule of the Investment Plan
    Preparation Grant by the responsible MDB and the status of development of the public website on
    which the Investment Plan will be consulted.

44. Framework for monitoring and evaluation SREP Mali: Preparatory work was undertaken by the
    SREP National Commission and MDBs ahead of the Joint Mission, to support the process of
    developing the framework for measuring SREP results at program level. The national consultant
    hired to support the development of the Investment Plan is currently completing the matrix of
    indicators with baseline data. The development of the M&E framework will be intensified in the
    coming weeks, as the investment projects will be developed.

45. The Environmental and Social Analysis of the SREP Program: The environmental and social analysis,
    undertaken by the international expert, began just before the joint mission and was further
    developed during the mission through specific meetings. The work is conducted in two phases: (i) an
    environmental and social analysis and (ii) the development of a framework for environmental and
    social management (ESMF). The analytical work was started and discussed during the joint mission.
    It has yielded analytical elements supporting the definition of the investment projects. The
    framework for environmental and social management will be developed in the coming weeks. See
    Annex 9 for more information.

46. The SREP Mali website is being developed as part of a broader participatory approach. The objective
    is to make available elements that will ensure an effective participation by all involved stakeholders.
    The website of the DNE is currently being revamped and therefore a temporary website was
    established. The website is http://srep.x10.mx/srep/. The information contained will be made
    available on the DNE’s website as soon as it becomes operational.

                                                                                                        15
47. Investment Plan Preparation Grant: The SREP National Commission in cooperation with the MDBs
        has prepared an application to benefit from an Investment Plan Preparation Grant. It has been
        approved by the CIF Administrative Unit in March 2011. The preparatory activities included the
        support for the technical workshops and meetings, the support for regional consultations, the
        support for the development of the investment plan and the environmental and social assessment
        for the SREP Program. The grant resources will be transferred to a special account opened by
        AMADER, acting as the executing agency. The use of these funds shall be done in accordance with
        the responsible MDB procedures and guidelines (AfDB). The approval process to channel the funds is
        ongoing at AfDB.

III.5 INVESTMENT PLAN

    48. As mentioned earlier, it was acknowledged that the Investment Plan was not ready to be submitted
        for approval to the Sub-Committee in June 2011. Consequently, it has been agreed that work would
        continue in the weeks following the joint mission, to refine and consolidate the project briefs and
        the Investment Plan.

    49. During the joint mission, it appeared that the proposed priority and strategic areas of intervention
        were confirmed by the majority of stakeholders and the SREP National Commission (see paragraph
        11). The diagram below shows the priority areas of intervention, transversal measures and the main
                                    7
        strategic intervention axes . From these strategic axes are extracted the project ideas presented in
        the previous section.

7
 The five priority intervention axes mentioned in paragraph 11 have been revised following discussions which main outcome was to
keep three priority areas of intervention and two transversal measures of support (see green part of the diagram).
                                                                                                                            16
50. In terms of institutional set up, it was proposed that the strategic coordination of the program is
    delegated to the DNE. Discussions on the institutional framework of the program should be refined
    in the upcoming weeks but a first draft is presented in the diagram below.

                                                                                                    17
51. A draft version of the Investment Plan was outlined during the mission and will be improved in the
    coming weeks (see road map below). Meetings are planned between the SREP National Commission
    and the MDBs to work on the Investment Plan.

IV. FINDINGS AND RECOMMENDATIONS

52. Under the leadership of the GoM and more specifically the SREP National Focal Point, the mission
    worked in good cohesion and roles were well shared among members of the MDBs and the UN
    System. The SREP National Commission benefited from the expertise of the MDB and UN teams to
    support the various consultations, prepare the Investment Plan and project ideas, and conduct
    discussions on the environmental and social analysis. The joint mission conveyed a meaningful
    dialogue between the key players in the renewable energy sector. A roadmap for the next steps has
    been established to continue the work on projects and finalize the Investment Plan for submission
    to the SREP Sub-Committee in the second half of 2011.

53. Based on the evidence presented in the previous pages, the joint mission recommends:
       • developing and harmonizing the five project briefs in accordance with SREP guidelines.
       • Pre-finalizing the Investment Plan for presentation at the CIF Forum in June 2011 in Cape Town,
         Republic of South Africa.
       • Organizing the regional consultative meetings post joint mission.
       • Engaging (the SREP National Commission) in bilateral consultations with TFPs to identify co-
         financing opportunities within the context of SREP.

V. NEXT STEPS

54. Given that the formal submission of the Investment Plan to the Sub-Committee has been postponed
    to a later date (second half of 2011), and considering the willingness of the GoM to make a
                                                                                                     18
presentation of the progress of its activities at the next CIF Forum, the following roadmap has been
     put in place:

                        ACTIVITIES                              DEADLINE            RESPONSABILITIES
Discussion/validation meeting for the first report of the        5th May        DNE/DNACPN/consultants
environmental and social analysis
Finalization of the Aide-Mémoire / translation in English /     27th May        DNE / AfDB
submission to CIF Admin Unit – National Commission and
MDB/UN
Pre-finalization of the PI and meeting to discuss the           27th May        SREP National
content with the National Commission                                            Commission/
                                                                                AfDB/Consultants
Preparation of the Poster for Cape Town                         3rd June        DNE/AfDB
Preparation of the presentation for Cape Town                   10th June       DNE/AfDB/Consultants
Finalization of the environmental and social analysis –         17th June       DNACPN/AEDD/DNEF/
National Commission                                                             Consultants
Continuation of the technical work to define the projects       17th June       All parties – with the
and availability of the concepts in the guidelines format                       support of the consultants
Discussion with the TFP and other partners to ensure            17th June       National Agencies
cofinancing of the projects                                                     proposed to implement
                                                                                projects
Translation of the first sections of the PI to ensure quality   End June        AfDB
review by MDBs
Meetings in Cape Town                                           End June        Two members of
                                                                                GoM/MDBs
Regional consultations to refine/validate the projects +          July          DNE/CNESOLER
consultations with other stakeholders according to the
needs
Finalization of the IP for validation by MDBs and the             July          BMD/DNE/Consultants
Government
Independent evaluation of the IP + consultations on the          August         Evaluator/CIF Admin Unit/
DNE website                                                                     DNE
Revision of the IP including recommendations from GoM            August/        DNE/AfDB/Consultants
+ external reviewer + MDBs + public consultations               September
Finalization and Submission to SREP Sub-Committee               September       DNE/AfDB
Procedures
Processing and Approval of the Preparation Grant                 27 May         AfDB
Special Account opened by AMADER                                 27 May         AMADER

                                                                                                      19
ANNEXES
Note: Annexes are available in French only (except annex 7)

Annex 1
List of Joint Mission participants

Annex 2
Terms of Reference of the Joint Mission

Annex 3
Terms of Reference of the Workshop

Annex 4
Workshop Report and list of participants

Annex 5
Terms of Reference of the technical consultations

Annex 6
Minutes of the technical consultations

Annex 7
Meeting with EDM management

Annex 8
Visit of the Ouelessebougou solar plant

Annex 9
Environmental and social analysis

Annex 10
Table of the RE projects supported by development partners

                                                              20
Annex 1 : List of Joint Mission participants

1.1 Liste des membres de la Commission Nationale de Préparation

          Nom &
N°                                  Fonction              Structure      Tél.                    mail
         prénoms
     Sinalou            Directeur National de                          20237396    directionenergie@energie.gouv.ml
1                                                         DNE
     DIAWARA            l’Energie – point focal SREP                   66748422    diasinalou@yahoo.fr
     Cheick A.          Directeur National Adjoint                     20224538    directionenergie@energie.gouv.ml
2                                                         DNE
     SANOGO             de l’Energie                                   66989940    nosa_159@yahoo.fr
     Birama             Chef Division Etudes
3                                                         DNE                      diourteb@yahoo.fr
     DIOURTE            Générales & Plan.
     Ismael O.                                                                     amader@amadermali.ml
4                       PDG AMADER                        AMADER
     TOURE                                                             66751308    itoure@amadermali.net
     Alassane           Directeur Electrification                                  amader@amadermali.ml
5                                                         AMADER
     AGALASSOU          Rurale                                         75113305    agalassou@amadermali.net
     Hamata Ag                                                         20207598    anadeb@mmee.gov.ml
6                       Directeur Général                 ANADEB
     HANTAFAYE                                                         66722044    hmtafro@yahoo.fr
     THERA Aminata                                                     20207598    anadeb@mmee.gov.ml
7                       Directeur Général Adjoint         ANADEB
     FOFANA                                                            66696799    batomath@yahoo.fr
     Sékou O.                                                          20226803    cnesoler@yahoo.fr
8                       Directeur                         CNESOLER
     TRAORE                                                            66944094    sotraore7@yahoo.fr
     Alhousseini I.                                                    20226803    cnesoler@yahoo.fr
9                       Chef section PV                   CNESOLER
     MAIGA                                                             76465004    maiga_alhousseini@yahoo.com
                        Responsable Cellule                            20231074    aedd@environnement.gov.ml
10   Sékou KONE                                           AEDD
                        Carbone                                        66762961    sekou_kone1000@yahoo.fr
                        Chef Section Contrôle des                      20292410    dnacpn@sotelma.net.ml
11   Béchir SIMPARA                                       DNACPN
                        Pollutions et des Nuisances                    76374668    symparabechir@yahoo.fr
     Tidiani            Chef Division Aménagement
12                                                        DNEF         66768335    ticoul@yahoo.fr
     COULIBALY          et Exploitation des Forêts

Deux consultants faisaient partie de l’équipe nationale :
        Arona Coulibaly – Consultant Local - Expert Energie – Appui au plan d’investissement
        Hany Shalaby – Consultant International – Expert environnement - Analyse environnementale et sociale

1.2 Liste des participants des BMDs

N°   Nom & prénoms      Fonction                           Structure    Tél.           mail
     Nigambaye          Ingénieur Principal Electricité
1                                                          BAD          76921419       n.ndoundo@afdb.org
     NDOUNDO            – Task Manager
     Florence
2                       Consultante SREP                   BAD          69 63 54 08    f.quintanilha@afdb.org
     RICHARD
     Richard
3    ANTHONY            Spécialiste Secteur Privé          BAD                         r.claudet@afdb.org
     CLAUDET
     Leandro
4                       Spécialiste Secteur Privé          BAD          71152569       l.azevedo@afdb.org
     AZEVEDO
                        Consultant international
     Angelo
5                       développement social et            BAD          70522558       angelo.bonfi@gmail.com
     BONFIGLIOLI
                        suivi/évaluation
                        Spécialiste Energies                            +(1) 202 458
6    Peggy MISCHKE                                         BM                          pmischke@worldbank.org
                        Renouvelables                                   5935
7    Alain Ouedraogo    Spécialiste Energie - ESMAP        BM                          Aouedraogo2@worldbank.org
                                                                                                                 21
Vous pouvez aussi lire