Studies
Rural electrification. N/A N/A
Feasibility study for the setting-up of a Sovereign Loan and an associated Technical Assistance and Capacity Building Program to support mini-grids development in rural areas of Myanmar
| Country : | Myanmar |
| Client : | AFD (French Development Agency ) |
| Start Date : | 12-2019 |
| Completion Date : | 03-2021 |
| Value of services : | 120 000 EUROS |
| Funder : | AFD (French Development Agency ) |
| Associate/Partner : | GERES |
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| Description : |
The objective of the assignment is to assess the feasibility of providing a sovereign loan to the Government of Myanmar (GMM) to support the mini-grid sector in the country. The sovereign loan is deployed to the market through (i) a 2-step-loan facility involving the Ministry of Planning, Finance and Industry (MoPFI), the Myanmar Economic Bank (MEB) and commercial banks (Participating Financial Institutions, PFIs) and (ii) a grant contribution to the DRD subsidy scheme. The soft loan is coupled with an EU delegated grant, allocated to set up an associated Technical Assistance programme to support mini-grids’ development in rural zones in Myanmar. |
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| Description of the Actual Services Provided | - Draft feasibility study report and final feasibility study report encompassing the following : - Description of the electricity sector in Myanmar, political commitment on the sector (NEP and its revision, current status of regulation related to mini-grids) and how the contemplated project fits within / answer to Government’s priorities (strategies, policies and plans); - Justification for the development of mini-grids in rural zones with : (i) description of on-going actions/programs and their results; (ii) micro-economic rationale for subsidizing certain categories of mini-grid investments; (iii) regulatory constraints - Description of structure and mandate of the main actors : DRD; MEB; MoEE; MONREC; overview of the banking and financial sector; - Eligibility criteria for participating financial institutions; eligibility criteria for mini-grid investments to be considered as “eligible investments”; - Proposals with regards to the contribution to DRD subsidy program (with proposals on innovations to be introduced as pilot); - Technical assistance program: detailed activities and related budget over 4 years; this chapter should follow the EU template of an application form to the AIF - Economic and financial analysis (Return on investment) of the loan for Myanmar - Climate impact analysis in terms of emissions reductions achieved by the different elegibility criteria alternatives. These estimation should apply the same methodological principles, tools and data used by the AFD. - Gender impact analysis - Risk analysis and proposed mitigation measures - Project log-frame - Proposed conditions precedent and special undertakings to the loan - Detailed budget / cost estimates for the whole project duration and year by year and component per component (excel sheet) – in EUR |