Feasibility Study project for GCF / CTCN

Transcription

1 FY2016 Report Feasibility Study project for GCF / CTCN Development of Geothermal power plant using GCF in Papua New Guinea & other Pacific Islands Summary Report March, 2017 ERM Japan Ltd.

2 Table of Contents Abbreviations Abstract Project Overview Background and objectives Points of investigation Feasibility of business Potential site, size and schedule of geothermal power plant Possibility of developing GCF project Study about requirement from GCF Identification of requirements of GCF Discussion with Stakeholders Consideration of response to requests from stakeholders Issues for GCF project development and possible measures Future prospects Challenges for realizing GCF project... 15

3 Abbreviations Abbreviation AE Accredited Entity ADB Asian Development Bank CCDA Climate Change and Development Authority (PNG) CDB Caribbean Development Bank CEPA Conservation and Environment Protection Authority CTF Clean Technology Fund DNPM Department of National Planning and Monitoring (PNG) DPE Department of Public Enterprises (PNG) DP&E Department of Petroleum and Energy (PNG) EIA Environmental Impact Assessment EPC Engineering, Procurement, and Construction GCF Green Climate Fund GEF Global Environmental Facility ICCC Independent Consumer and Competition Commission (PNG) IDB Inter-American Development Bank JICA Japan International Cooperation Agency KCH Kumul Consolidated Holdings LDCs Least Developed Countries MRA Mineral Resources Authority (PNG) NDA National Designated Authority PPL PNG Power Limited SIDS Small Island Developing States SPC Secretariat of the Pacific Community

4 Abstract Pacific countries such as Papua New Guinea (hereinafter PNG ) and Fiji located in the Pacific Ring of Fire holds rich geothermal resources, and high potential for Geothermal power development. This study investigated the potential of geothermal power plant development using GCF funds in PNG. Specifically, we investigated the possibility of utilization of GCF funds at the stage of relatively high pre-construction risk such as preliminary survey and exploratory drilling, and the possibility of utilization of GCF funds from construction to commissioning. We also clarified the requirements by GCF. At the same time, discussions were held with various key stakeholders for developing geothermal power, such as PNG government, Secretariat of the Pacific Community (hereinafter SPC ), Asian Development Bank (hereinafter ADB ) as accredited entity (AE), and GCF Secretariat, etc., in aim of proposing possible financial scheme. As a result of these surveys, in spite of the relatively high risks at the stage of preliminary survey and exploration drilling, the capacity of the geothermal power plant currently expected in PNG is small to medium scale, approximately 5 MW and it is not so large project size compared with the development risk. Even if it succeeds in development, the profit scale will remain at a small amount, thus have little incentive to develop by taking the risks. Therefore, it became clear that it is difficult for a special purpose vehicle (SPV) owned by private companies or a private company itself to become the executing entity, and the PNG government-related organization is suitable for the executing entity at present. So further consultation with such organizations was necessary. For the financial scheme, grant from the government and development donor agencies, and contingent grant or concessional loan from AE and GCF for the initial stage of investigation and exploration were considered to reduce the development risk which was introduced within the approved East Caribbean geothermal development GCF programme. Based on the above, we will furtherly continue to discuss with the PNG government officials, AEs such as ADB, and the GCF Secretariat which we strengthened/built our relationships through this survey, toward future geothermal power business development. 1

5 1. Project Overview 1.1. Background and objectives At the 21st session of the Conference of the Parties (COP) of the United Nations Framework Convention (UNFCCC) on Climate Change (hereinafter COP 21 ) in 2015, the Paris Agreement, which is a framework since 2020 with all nations participation tackling for global climate change was adopted. As a operating entity of the Financial Mechanism of the UNFCCC, the Green Climate Fund (GCF) is expected. So far the Green Climate Fund has raised USD 10.3 billion equivalent in pledges, in which USD 1.5 billion contributed from Japan. Although, there are still no projects that Japanese companies are participating in, and it is expected to promote Japan s leading environmental and enerygy related technoliges to developing countries by utilizing this financial mechanism. Based on the above background, this survey investigated the needs of utilization of GCF for emission reduction projects in Papua New Guinea (PNG) etc., examined the possibility and tasks for Japanese companies' contribution, and aims to contribute to developing countries through utilizing this mechanism by Japanese companies in the future Points of investigation This survey will investigate and examine the following items for developing a geothermal power plant project in island countries such as Papua New Guinea, Vaunatu and Fiji as a GCF funded project. (1)Feasibility of business Investigate the following two possibilities and clarify the feasibility of the GCF project. 1Applicability of GCF for Exploration drilling and FS of geothermal plants 2Applicability of GCF for Production drilling and construction (2)Study about requirement from GCF 1Identification of requirements of GCF List the requirements of GCF and consider to the specific potential project of this study. 2Discussion with Stakeholders Consultation with relevant GCF stakeholders carried out to clarify the necessary conditions and items for developing the potential project. 2. Feasibility of business 2.1 Potential site, size and schedule of geothermal power plant 2

6 Based on discussion with the PNG's Mineral Resources Authority ( hereinafter MRA ), which has been studying geothermal power generation development, and the Secretariat of the Pacific Community (hereinafter SPC ), an international development organization for the Pacific island countries based in Fiji, the potential sites were identified for geothermal power generation, which are Rabaul (East New Britain Province, Gazelle system) and the region around Hoskins (West New Britain Province, Kimbe and Bialla power system). Figure 2-1 Rabaul and Hoskins area Based on discussion with MRA and SPC, and hearing from the East New Britain Provincial Government and West New Britain Provincial Government, the potential scale of geothermal power generation was considered feasible by starting from approximately 5 MW and gradually increase. The development of geothermal power plant can be broadly divided into phase 1 and phase 2. Phase 1:Pre-survey (Geological survey, gravity survey, electromagnetic exploration..etc.), Exploration drilling (slim hole exploration, test drilling, Analysis of geothermal sources, confirmation of steam ejection volume) Phase 2:Drilling, Construction and Operation. 2.2 Possibility of developing GCF project Barriers to develop geothermal plant and possible financial scheme Barriers of the geothermal power generation plant development in PNG include the following items 1 No experience of geothermal development and operation. 2 Insufficient laws of geothermal development from exploration drilling to operation. 3

7 3 High resource development risk for exploration drilling (Although hundred millions USD of budget are required for exploration drilling, heat sources are not always certain to be identified.) For barrier 1 and 2, it is necessary to provide technical assistance including legal development through capacity building and expert dispatch etc. These items could be addressed by using subsidies of development assistance organization such as technical cooperation project of JICA or GCF. On the other hand, about the barrier 3, financial support for risk is necessary as well as technical support. Especially concerning exploration drilling risk, it is difficult to develop secure funds as like other geothermal power projects Possible financial scheme for GCF funds: Phase 1 (Pre-survey, Exploration drilling, environmental assessment etc.) The main activity of phase 1 is to investigate the basic situation of the potential geothermal resource, specifically to investigate and analyze the geological structure, and to understand the area and scale of the geothermal reservoir. However, it is not certain that steam or hot spring suitable for geothermal power can be discovered through phase 1 and then the phase 1 include high development risk. On the other hand, the current capacity of the geothermal power plant expected in PNG is small or medium scale as of 5 MW and the profit scale remains to small amount even if the development succeeds. Considering its high risk and profit scale, the incentive for private enterprises to take these risks and develop is relatively small. Therefore, public institutions are expected to be the executing entity for phase 1 considering its development risk. 1 PNG government agencies to become executing entity In this case, PNG's government related organizations will be the executing entity, which conducts on-site investigations and exploration drilling by using subsidies including GCF funds. Based on the results of phase 1, drilling and construction and operation- phase 2 will be conducted. However, the technical advisors from an experienced organization such as Japanese companies are necessary as PNG government in itself does not have experience of the geothermal development. As for the executing entity candidate from the PNG government related organizations, KCH ( Kumul Consolidate Holdings Ltd)could be considered, which is wholly owned by the independent state of PNG and are holding company for eleven majority State Owned Enterprise (SOE) operating such as Petromina, Air Nuigini, PNG Telecom and PNG Ports..etc. 4

8 Development GCF Banks Grant Japanese Company Advisor Contingent Grant Loan PNG government organization (Executing entity) Accredited Entity (AE) Grant Survey, permission of test drilling Pre-survey, Exploration drilling PNG government Survey and Drilling Company Figure 2-2 Case of PNG government body to be Executing entity for pre-survey and exploration drilling For the financial scheme, grant from the government and development donor agencies, and contingent grant or concessional loan from AE and GCF for the initial stage of investigation and exploration were considered to reduce the development risk which was introduced within the approved East Caribbean geothermal development GCF programme. One issue is the point that the executing entity changes when shifting from Phase 1 to Phase 2. For example, a government organization is the executing entity in phase1, which receive contingent grant and will be the borrower of concessional loan, but Phase 2 does not assume that the same government organization will be the executing entity. Government organization will never receive electricity revenues directly from project implementation at Phase 2, which means there will be no repayment resource for borrowing. In this case, borrowing itself by government agencies in Phase 1 may become difficult. Therefore, it is necessary to arrange the power sale revenue of Phase 2 as repayment resource of Phase 1 borrowing. For example, if the government organization and a Phase 2 operating company meet a specific condition (assuming the same condition as Grant becomes loan), the operating company could agree in advance with the government organization to buy the right of geothermal energy development. Government organizations could repay borrowings with the proceeds of rights. Other considerable scheme is to implement Phase 1 and Phase 2 by the same operating company, which the company will be able to repay for Phase 1 and Phase 2 borrowings by project sales proceeds. This scheme should be considered also for further discussion. Additionally, the access to concessional financing from the GCF and other co-financiers of the East Caribbean geothermal GCF programme were crowded in private sector capital to develop and implement GE initiatives, which were limited to 4 countries within the total 5 countries. Within the 4 5

9 countries, GCF provided concessional funding for drilling exploration and production drilling in Saint Lucia and Saint Kitts & Nevis where no other funding sources with the required risk profile (i.e. contingent grants) have been identified yet. Therefore, future consideration including the requirements from the AE is necessary, due to the fact that access to contingent grants or concessional loans may not be possible depending on the implementation entity. 2 International organization as executing entity, and conduct as a pacific regional programme with several countries for pre-survey and exploration drilling. This scheme is based on the approved East Caribbean geothermal development programme as GCF project. Phase 1 which includes pre-survey and exploration drilling will be conducted in several pacific countries and an international or regional organization as an executing entity. Potential candidate for the executing entity will be SPC. The Pacific Community (SPC) is the regional organization which supports the Pacific regions development in aim of effective application of science and knowledge since Currently owned and governed by 26 countries and territory members, including major countries such as Australia, New Zealand, Unites States of America, France etc (Headquarter located in Fiji). SPC has established a working group to promote geothermal development in the Pacific region, conducts resource research and promotion to each country. Considering the situation, SPC could be considered as an executing entity for geothermal pre-survey on the geothermal resource including exploration drilling. The target countries include six countries (PacGeo 6), PNG, Fiji, Vanuatu, Solomon Islands, Samoa and Tonga, which are rich in geothermal sources in the Pacific region. This programme aims to realize geothermal development fund combined for 6 countries which all has rich geothermal resource enabling renewable energy development, operated by the international organization as the secretariat to be an executing entity. Therefore, implementing funds including GCF fund will be collected once in the executing entity, then the executing entity will implement phase 1 survey considering target countries demand/ potential and government policy. 6

10 Development Banks Japanese Company Grant Advisor GCF Contingent Grant Loan International organization (Executing entity) Survey and Drilling Company Accredited Entity(AE) Grant Survey, permission of test drilling Pre-survey, Exploration drilling Government (PacGeo 6) Figure 2-3 Case of International organization to be Executing entity for pre-survey and exploration drilling In aim of reducing the risk of the operating organization and promoting further geothermal development in the region, financial scheme are considered as Grant from the government in the high development risk stage for the preliminary survey and exploration drill cost, and contingent grant and concessional loans from the AE, GCF and/or other development organizations (such as JICA). On the other hand, this scheme assumed that international organization will conduct surveys and explorations throughout PacGeo 6. But the candidate international organization SPC and PacGeo 6 themselves have no experience on geothermal power generation so far, thus it is important to appoint a technical advisor such as an expert from Japanese company with abundant experiences and achievements in geothermal field. As a result of discussion with SPC, this scheme was very welcomed and also is a possible project structure to further arrange with each 6 countries. However, it is expected that not only human resources for preparing for the startup but also sufficient time and money will be necessary for Phase 1 in order to make SPC the executing entity and to build this programme structure including the participating government and development donor agencies. The Caribbean geothermal development, which has already been approved as a GCF programme, had financial scheme structured beforehand, thus it could be imagined that arrangement of GCF project structure was relatively not so difficult. This PacGeo6 programme has no other base structure to develop the programme, and it is necessary to undertake enough examination of securing time, funds and human resources until implementation, such as making a simpler and more efficient mechanism. In addition, if SPC will only implement as an executing entity for Phase 1 and not Phase 2, the implementing entity will shift through the whole development stage, so consideration regarding the same issue mentioned in 1 is required. 7

11 Possible financial scheme for GCF funds :Phase 2 (Drilling, power plant construction, trial operation) After Phase 1 is successfully completed and geothermal resource confirmed and it is clear that the geothermal power plant construction is advantageous, general power plant development scheme will be possible. In this case, the following two methods are conceivable. 1 SPV to be the executing entity The Japanese developers and the PNG government will fund to establish Special Purpose Vehicle (SPV) and conduct geothermal power generation project. In this phase, project finance can be considered as one of methods of financing when SPV borrows a loan from a financial institution. This is a financing based on the project cash flow and its repayment source is limited to the cash flow of the specific project itself. Financial Institution GCF Accredited Entity(AE) Development Company Equity Loan Concessional loan Japanese Company EPC Advisor SPV EPC contract Equity PNG Power PNG Government organization(such as KCH) Power Purchase Agreement(PPA) Figure 2-4 Case of establishing SPV for construction and operation The advantage of project finance for geothermal projects is that the project management will not be effected by the difference in creditworthiness of the development entity, compared to the general finance method based on the creditworthiness of the sponsor, which is the development company. Additionally, given the repayment fund depends only on the cash flow generated by the project, and the project support from the sponsor will be limited, project development could be implemented without much difficulty. On the other hand, as a disadvantage point, finance costs are relatively high because each finance will be designed dependent on each project, and various complicated analyzes, contracts and 8

12 procedures are necessary. For small-scale projects with a scale of about 2 billion yen as in this case, financing costs will increase for loans, making it difficult to secure economic efficiency. Therefore, project finance is considered difficult to apply in this case. Hence, when SPV borrows a loan from a financial institution, (a) sovereign finance that relies on the creditworthiness of the PNG government as investors, or (b) corporate finance that relies on the creditworthiness of development companies or off-takers, or other (c) structured finance incorporating above two elements are considered. PNG government agencies, development companies or off-takers needs to provide guarantees and collateral to the SPV. In corporate finance, the creditworthiness of the borrower serves as the repayment base, and all the risks of the project are attributable to the borrower. In selecting corporate finance, since the analyzation of the borrower is extremely important, it is necessary to additonally confirm the creditworthiness of the development company. 2 PNG electric power company to be the executing entity In this case, PNG s electric power company (PNG Power Limited, PPL) will be the borrower from the AE, GCF, and financial institutions. Corporate finance is considered as the possible financial scheme. GCF Accredited Entity(AE) Financial Institute Loan Japanese Company Advisor EPC Contract Power Company (PPL) Equity O&M Concessional loan PNG Government organization(such as KCH) EPC Company O&M Enterprise Figure 2-5 Case of National electric power company for construction and operation As explained in 1, the creditworthiness of the borrower becomes primary repayment base in the corporate finance and all the risks of the project are attributable to the borrower. Therefore the borrower will be asked to repay the loans regardless of the success or failure of the project. In addition, the use of funds and business plan of the company are also important factors in consideration of corporate finance. This is due to the fact that financial institutions and other lenders decides the loans after scrutinizing the business plan, including the competency of the business 9

13 operator themselves to appropriately execute the business as the corporate finance is a borrowing to be repaid regardless of the success or failure of the project. Additionally, since PNG government has no experience in geothermal development, it is important to appoint technical advisers such as Japanese companies with abundant experiences and achievements in the geothermal field. Also the selection of reliable equipment manufacturers, EPC company and O&M companies will be also important. 3. Study about requirement from GCF 3.1 Identification of requirements of GCF (1) Investment criteria GCF has set six investment criteria for deciding financial support to programme and project, and the potential to achieve the criteria will be evaluated. Although there are few points for further consideration, but as a whole, we concluded that the possibility of developing GCF funds for PNG geothermal power generation project is sufficient. Table 3-1 Consistency with GCF investment criteria Criterion Definition and Coverage area Geothermal Power Project Impact Potential of the programme/project to GHG emissions reduction by displacing the potential contribute to the achievement of the Fund s grid. objectives and result areas. Mitigation and Adaptation impacts. Paradigm Degree to which the proposed activity can Since one of the barrier no experience by shift catalyse impact beyond a one-off project or the government of development and potential programme investment Potential for scaling up and replication, and its operation for geothermal - will be improved, contributions of GCF fund could be a overall contribution to global low-carbon detonator leading further geothermal development pathways Potential for knowledge and learning Contribution to the creation of an enabling environment Contribution to the regulatory framework and policies Overall contribution to climate-resilient development promotion for many potential sites within the country. Also, scaling up to other pacific island countries which also have potential sites are expected. Contribution to establishment of the regulatory framework and policies about geothermal plant, as the development will development pathways consistent with a become the first government related 10

14 Sustainable development potential Needs of the recipient Country ownership country s climate change adaptation strategies and plans Wider benefits and priorities Environmental co-benefits Social co-benefits Economic co-benefits Gender-sensitive development impact Vulnerability and financing needs of the beneficiary country and population Vulnerability of the country Vulnerable groups and gender aspects Economic and social development level of the country and the affected population Absence of alternative sources of financing Need for strengthening institutions and implementation capacity Beneficiary country ownership of, and capacity to implement, a funded project or programme (policies, climate strategies and institutions) Existence of a national climate strategy Coherence with existing policies Capacity of accredited entities or executing entities to deliver geothermal development project in PNG, where legal and regulatory framework development for geothermal development has not been established. Wider benefits will be provided such as below. Job Creation Electricity price reduction Promotion of investment by the electrification rate improved Geological tourism promotion, in which MRA are currently proposing. PNG is one of the small island developing countries (SIDS), which is considered to be particularly vulnerable to climate change and is a priority country of the GCF. By improving the electrification rate of the country currently low as 13%, there is a possibility of becoming a promoter for socioeconomic growth. Realize the financing of geothermal development investment which has high risk and also lack in experience. At the same time realize organization strengthening of the government. Improvement of vulnerability to international market due to imported diesel dependent power generation form. Diversification of energy matrix is realized. Contribution to PNG s target of 100% renewable energy by 2050 It is one of renewable energy development resources (hydro, geothermal, biomass, sunlight presented) described in INDC. Subjects to consider Further discussion is necessary for 11

15 Efficiency and effectiveness Engagement with civil society organizations and other relevant stakeholders Economic and, if appropriate, financial soundness of the programme/project Cost-effectiveness and efficiency regarding financial and non-financial aspects Amount of co-financing Programme/project financial viability and other financial indicators Industry best practices positioning geothermal development in the GCF country program. Subjects to consider Investigation of co-investor (AE or other donors), investment amount and financial scheme Consideration of investor within PNG Examination of financial plan for the project by site basic survey etc. (2)Application for GCF project finance support The application method are concluded as international access rather than direct access, due to the lack of executing accredited entities (AE) in PNG In order to apply by international access, it is necessary to define the accredited entity (AE) for application. From discussion with the PNG National Designated Authority(NDA) - Climate Change and Development Authority (CCDA) and JICA Papua New Guinea Office, ADB were considered for AE within PNG as it has the strongest influence on GCF and energy sector, Considering the recommendation from the PNG government relatives, we decided to consult with the Asian Development Bank (ADB). 3.2 Discussion with Stakeholders In aim of realizing the geothermal development project using GCF funds, this study visited three countries, Papua New Guinea, Fiji, and South Korea, and also held telephone conference with the concerned parties to investigate the possibility of obtaining GCF funds for geothermal power generation development in Papua New Guinea. Table 3-2 Discussions with the government and related organizations Period Organization Content November and December 2016 Mineral Resources Authority(MRA) Department of Petroleum and Energy (DP&E) Department of Public Enterprises(DPE) Kumul Consolidated Holdings (KCH) East New Britain Provincial government(enbpa) West New Britain Provincial government (WNBPA) Climate Change and 12 Feasibility Study outline Implementation framework for obtaining GCF funds of geothermal power generation in PNG Confirmation of policy and regulatory situation Potential site visit Feasibility of funded by GCF

16 Development Authority(CCDA) JICA Papua New Guinea, Asian Development Bank(ADB)PNG Conservation and Environment Protection Authority(CEPA) PNG Power Limited Secretariat of the Pacific Community (SPC) Others January 2017 ADB Headquarters(Telephone conference) Feasibility Study outline Feasibility of GCF fund for geothermal in PNG ADB s potential of participating February 2017 as AE GCF Secretariat Feasibility Study outline Feasibility of GCF fund for geothermal project in PNG Table 3-3 summarizes future subjects/ issues to consider that were identified through the result of discussions with the government and related organizations. 3.3 Consideration of response to requests from stakeholders As a result of consultation with the PNG government, the major three challenges for realizing geothermal development are: (1) the specific development attitude of the PNG government to geothermal power generation, (2) Identification of project executing agencies, (3) Discussion with AE candidates for Phase 1 investment. The correspondence to these tasks is shown in the table below. 13

17 Table 3-3 Remaining Tasks and future countermeasures No. Key Barriers Contents Future measures 1 Specific development attitude of the PNG government to geothermal power generation 2 Identification of project executing agencies Although the potential of geothermal power generation is high and the demand for energy is expected to increase and in 2050 there is a government policy that 100% of electricity is covered by renewable energy, due to the lack in experience of geothermal power generation and the high risk to Phase 1, it has not reached the specific examination of geothermal development. Meanwhile, in order to implement project support as AE to be ADB, consistency with the development strategy by Department of National Planning and Monitoring (DNPM), which is the contact point of the PNG government, is required. From PNG power, due to the high risk of developing geothermal, the development was shown as difficult. Waiting reply from KCH(Kumul Consolidated Holdings). Since MRA and SPC are active for geothermal power generation development, continue discussion to PNG government through both organizations. 1. Possibility of executing entity for phase 1 2. Consider geothermal development within the development strategy policy of DNPM The provincial government is also expecting geothermal power generation development. Continue discussion and consider the possibility to discuss with central government through province. Capacity building to PNG government is necessary for geothermal development. Asked consideration of project structure as MCH to be executing entity for phase 1 (exploration drilling). Further discussion is necessary, 3 Discussion with AE candidates for Phase 1 investment. 4 Implementation with PacGeo6 Formal request from PNG government is necessary. ADB s grant support in phase 1 was considered difficult. Received expectations from SPC and GCF for implementation of PacGeo 6 (PNG, Fiji, Vanuatu, Solomon, Samoa and Tonga) programme including 6 Pacific island countries. After discussion with the PNG government (DNPM), discussion with ADB is needed. Consideration of other development donor organizations. There is no basic structure for building the programme of PacGeo6 currently, therefore additional time, fund and manpower will be necessary. Considering these concerns, further discussion within the project member is necessary whether this structure is worth for further consideration. 14

18 4. Issues for GCF project development and possible measures 4.1 Future prospects The development of geothermal power plant in Papua New Guinea was considered, and identified the issues to furtherly develop GCF funded project. Despite the rapid increase in energy demand, the electrification rate is as low as 10-20%, which is an obstacle for further economic development. On the other hand, the study found that the expectation for introducing Japanese geothermal power generation technology is high, since PNG has its rich geothermal resource. Several sites were identified as possible candidate sites for developing geothermal power plant through the survey. Specifically Rabaul, famous as a tourist spot, and the area around Hoskins were identified as the potential sites. On the other hand, as PNG lacks in geothermal development experience and high developing risk of geothermal such as exploration drilling, several challenges for further consideration were necesarry such as selection of a executing entity and design of a financial scheme in aim of mitigating the risk. Therefore, further discussion with the PNG government officials and stakeholders are necessary including capacity building, such as below; 1. Discussion with the PNG government for financial scheme and especially executing entity. 2. Discussion with the DNPM which develop the countries development outline. 3. Further consideration on the financial scheme support for geothermal development in PNG, through discussion with AE canditate ADB and other development organizations. 4. Further discussion within relatives about the PacGeo6 scheme 4.2 Challenges for realizing GCF project 1. Fund resources as Grant from other resources than GCF is necessary for obtaining financial support (Grant) from GCF, which is important especially in the exploration stage for geothermal development. Therefore, the development barrier that is difficult to obtaining fund in phase 1 remains. 2. In order to prepare funding proposals, it is necessary to conduct detailed feasibility study including further discussion with AEs such as ADB, the government of the target country, and design of financing schemes in detail. 15