Community based biomass energy [ Dendro] promotion initiative through public private partnership process -Sri Lanka

Transcription

1 Community based biomass energy [ Dendro] promotion initiative through public private partnership process -Sri Lanka 1. Project Background Sri Lanka s current economic development policy framework (Mahinda Chintana) is a consolidation of Pro-poor growth strategies based on private and public sector participation in economic and social development. The policy framework is developed on a market friendly, export oriented and competitiveness basis to sustain eight (8) percent economic growth in the GDP during the medium term. The Millennium Development Goals are also incorporated in the economic development policy framework. Energy security has become an important factor in achieving the objectives articulated in the economic policy framework. Supply of reliable, affordable and clean energy during the medium term for industries, individuals and other sectors are extremely important in this regard. The industry sector has contributed 27 percent to the GDP in 2005 while the Services sector contributed 59 percent. The agriculture sector contribution was 14percent showing a declining trend compare to previous years. Of the industry sector manufacturing, factory, industries, and construction are the major contributing areas. With regards to the services sector trade, hotels, restaurant and transport are the major ones. Energy is a key input in all of these sectors. Biomass, hydropower, and thermal power (fossil fuels), are the conventional energy sources in supplying energy. The utilization of renewable resources such as solar, wind, dendro, and mini-hydro are relatively small. The transport sector entirely utilizes energy sources such as gasoline and the diesel. The steep rise in the oil prices in the recent past has resulted a great burden to the economy in supplying of these conventional energy sources without fluctuations. The absence of petroleum resources deposits in the country has aggravated the situation. This has created to explore avenues immediately to ease the energy problem. The available options are the utilization of renewable energy sources and efficiency improvement in the current use. The renewable resources are also important in reducing air pollution, mitigating adverse climate effects and the provision of clean energy. The improvement in efficiency in energy resource is also useful to ease the problem. Several measures

2 such as reducing system losses, use of low energy consuming equipment, saving energy through changing behaviors, etc. have been introduced and used at present. In the field of energy policy, there are two global sustainability challenges facing the world. The first is the challenge of ensuring Goals In September 2000 Sri Lanka, as one of the 191 United Nation Member States, Committed it self to achieve a set of time bound and measurable goals for combating poverty, huger, disease, illiteracy, environmental degradation, and discrimination against women. EXECUTOVE SUMMERY This project will provide the stage of for complete financing and technical development of an environmentally friendly, biomass power program in Sri Lanka based on a pioneering public-private partnership. Approximately 40% of Sri Lankan homes still do not have electricity. The country had historically focused on large scale hydro power, but since the last decade most of the installed hydro generators have been operating at low capacity, due to the unprecedented degrees of droughts and other natural calamities that has dwindled the natural supply of the hydro resource. This has compelled the Sri Lanka government to import oil for power generation that has in turn created a very serious balance of payment situation. The Sri Lanka Government, against this backdrop, has provided incentives to induce private and non-governmental sectors to enter the power generation sector, and supply electricity to the national electric grid using local resources. This in turn enabled about 100 megawatt of small hydro power plants being be set up in the last decade. Quite unfortunately however, the saturation point for the small hydro power industry seems to have been reached, in terms of the available hydro power sites. While there is a restriction on the number of small hydro power sites in Sri Lanka, what is currently available in a gigantic scale as a resource is the number of arid land blocks that total about 1.5 million hectares, that makes an ideal ground for the development of biomass power, using the concept of energy plantations, practiced in the number of countries. It is an irony still that only one megawatt of biomass power has so far been developed Sri Lanka, in spite of this land available and the main reason seems to be ignorance and the lack of awareness among the private and developmental sector, the local banks and some government departments that must essentially come on board to effect a larger scale application of biomass power for Sri Lanka. In the energy plantation concept, trees are planted in rotation and there is no pollution, as the wood-growing rate equals or exceeds the consumption rate.

3 Hence the net carbon dioxide load is neutral but this replaces the need for petroleum-based generators on the country scale. Hence dendro biomass power is carbon negative or lets say, environmentally friendly and its in-country carbon reduction potential qualifies it for incentives under the Kyoto Protocol that aims to reduce Global Warming. Cultivation of 2500 Acers of Gliricidia plants in 41 GN divisions in uncultivated land belongs to 2500 families living in Thirppene Divisional Secretariat area. It is planned to formation of Community Company in order to establish private sector partnership. It was plan to grow coconut and cinnamon while growing Gliricidia plant.1.5mw thermal power plant will be established in Kattamutitchan in collaboration with private sector. This project will have tow main purposes; one is to install an optimally sized (1 1.4 megawatt) biomass program in the Sri Lanka country side on grid connected mode that will enhance many economic and national benefits for the country; and the second is, to by so setting up of a demonstrable biomass power program from which renewable energy proponents, funding agencies and policy makes can take example. In the energy plantation concept, trees are planted in rotation and there is no pollution, as the wood-growing rate equals or exceeds the consumption rate. Hence the net carbon dioxide load is neutral but this replaces the need for petroleum-based generators on the country scale. Hence dendro biomass power is carbon negative or lets say, environmentally friendly and its in-country carbon reduction potential qualifies it for incentives under the Kyoto Protocol that aims to reduce Global Warming. 3.Project Rational Our organization has conducted Participatory Rural Appraisal [PRA summery is attached] program in the project area and conducted several community participatory workshop for project initiative process since last year.[vdo is attached] According to base line data, out of acres in the project area, acres are not cultivated or not utilized. 70% of the families in the project are sumurdhi recipients and bellow the poverty level. Most of the people are not fortunate to have basic need of the society such as education, home, health, cloths, food etc and depend on dry faming and chana cultivation. Based on our available data, the natural forest and its biological species have seen unprecedented rate of forest loss and soil erosion was seriously high during the last 20 years in the project area comparatively with national rate. One of the main causes of deforestation and forest degradation in the area is the poverty that is often associated with landlessness, poor land tenure system, continues drought effect, security level and the poor irrigation facilities. Shifting cultivation, excessive harvesting of forest products

4 and the lack of awareness on correlation of natural forests with their lives are the other significant factors that have influenced the unprecedented deforestation. As a result of these trends, forest area has declined to critical level. The remaining natural forests are placed under increasing pressure as the population keeps on growing and the market and profit oriented living pattern. The most serious outcomes of deforestation and forest degradation are: Less ran fall, dropping of agricultural output, loose of soil fertilizer, and dropping water table, siltation of irrigation tanks, and reduction in biodiversity due to destruction of habitats of fauna and flora and drying up of natural springs and water sources. Finally it can concluded that the overall impact of forest degradation and deforestation will result in the reduce well being of the present and future generation. It is also clear that the close interdependence between community and the forest many of whom have become the victims of its decline. Therefore urgent remedial measures to be adopted in order to minimize such behaviors of irregulars in our society through multi sect oral approach, It is our development strategy to establish a community level mechanism to tackle problems that are contributing to forest destruction and degradation while promotion of forest services and goods through participation and partnership. This project is mainly concern about energy crisis in Sri Lanka and it is highly Needed to community initiate energy conservation process to meet future demand of energy. This project mainly address to energy crisis in rural sector while increasing income Source of rural poor. Uses of biomass in dendro thermal plants have attracted widespread interest as a primary energy source for electricity generation, due to its potential as an indigenous source of energy. In addition to this there are other benefits mainly resulting from reduced soil erosion, restoration of degraded lands, creation of local employment and various potential environmental benefits. Multi Sectoral approaches Environment: To arrest the degradation of forest resources and other land use systems, through sustainable patterns of natural resource management and utilization, and to contribute to efforts to reduce greenhouse gas emissions; Energy: To develop renewable, indigenous sources of energy to contribute to diversification of the energy mix and self sufficiency in energy supply; Poverty Alleviation: To improve the livelihoods of rural people and those working in informal-sector activities by, for example, generating income and employment; National Economic Considerations To make more productive uses of local (wood fuel) resources and provide an additional energy supply option for economic growth and development;

5 Forestry: To improve the management of tree and forest resources by villagers, including increasing the value added on-site through processing and marketing support Women: To create the opportunity for women to play an important role in planning and implementation of project activities 4.Development Goal/Vision Conservation of renewable energy sources towards rural economic growth and environmental sustainability 5.Immediate objectives / Mission Promotion of Dendro option for energy security to deduce rural poverty and increase forest coverage 6.Output/ Results 1. Rural community was empowered 2. Uncultivated lands and barer lands were effectively utilized 3. Alternative income sources of rural poor were improved. 4. Fuel wood requirement for bio electricity generation achieved. 5. Strong public- private partnership was established. 6. Organic farming process was expanded MW electricity added to national grid 8. Increasing of Replication of Renewable energy projects 9. The barriers to increase use of renewable energy were minimized. 10. Renewable energy (dendro) Policies and strategies were enforced. 11. Rural unemployment was minimized. 12. Access for alternative energy sources were explored 7.Main project activities 1. Conducting of social mobilization program. 2. Formation of people based company and public private partnership. 3. Conducting of microfinance environmental lending program.

6 4. Formation of community initiative Dendro power generation action plan. 5. Cultivation of 1000 hectare of gliricidia sepium (albecia) plant in bare land belong to farmers in the project area. 6. Cultivation of gliricidia in100 hectares for buffer stock. 7. Introduction of land use policies including organic farming 8. Rural infra structure development process. 9. Technology and project initiative promotion through consultant partner. 10. Installation of 1.5 MV thermal bio energy power plants. 11. Transmission line and grid connection works. 12. Organic fertilizer production process by using gliricidia leaves. 13. Project expanding and replication process. 14. Community participatory monitoring and evaluation program. 15. Conducting of feasibility study for second phase 8.Funding and Investment Sources 1. Government Fund/Equity 2. Private Investment 3. Local and International Donor Fund 4. Co financing from Local and International Institutions. 5. NGO Fund/Equity 6. Community Fund/Equity 9.Sponsoring and Supporting Organizations 1. Science and Technology Ministry. 2. North Central Provincial Council. 3. Coconut Development Board 4. United Nation Development Program 5. Ceylon Electricity Board. 6. Sustainable Energy Authority 7. Agrarians Service Centers 8. International Labor Organization 9. International Finance Corporation 10. Sri Lanka Bio Energy Association 11. South Asia Energy Council 12. RERED.

7 B-IMPLEMETING TRATERGY 1. Public Private Partnership Initiative HCDY promotes public-private partnership on an experimental basis among farmer groups, village based institutes, private organizations, business community, NGOs and community-based organizations including local government authority to coordinate and link the resources available in the private and public sectors and to strengthen the community level institutions by harnessing the potentials existing in the divisions. These partnerships focus on promoting rural investment and economic opportunities by tapping into the production capabilities of the rural communities, linking them to existing capital resources of the private sector and by exploiting existing market potentials. Partnership Building Public -Private Partnership Committees (PPPC) works at initiating partnership building with NGO/Private sector leadership. Public -Private Partnership Committees (PPPC) with representation from both public and private sectors facilitates coordination amongst various district-level development agencies and create an enabling environment for the partnership. Feasibility of Partnership Projects The PPPC select partnership projects after assessing the priority development need and market potential, availability of resources, the investment required, possibility of establishing people company as well as the economic impact on the rural community and the involvement of women.

8 2. Groups Organization and Community Company The Program aims at promoting self-governance core groups at the community level through the formation of people company as partners in economic development.

9 3. PPPI Model Partnership Project Implementation The Support Organization mobilizes the business and rural communities to form institutions and cooperative organizations for the formation of social capital and partnership as per the project plan. It also assists the partnership with the management of necessary technical support and credit; enhance coordination among partners as well as establishing business linkage with various market forces. ABOUT PPPC PPPC builds on the achievements of project goal and consolidates, improves and institutionalizes participatory planning and management of development activities starting at the community level to promote decentralized local development and sustainable human development. PPPC seeks to empower people to take increasingly greater control over their own development and to enhance their capacities to mobilize and channel the resources required for poverty alleviation. PPPC works simultaneously at the local and central levels to achieve its twin objectives. At the community level: PPPC provides support for improving the governance system and social empowerment process at the village level through the development of self-governing community institutions. At the divisional level: PPPC provides support for the strengthening of development programming and management capabilities of the Divisional Development Committees (DDCs). At the District level: PPPC supports the National Planning Commission and the Ministry of Science and Information to formulate policies that reflect and support locallevel development initiatives. 4. INSTITUTIONAL ARRANGEMENT The Director Board with representatives from Community, Community Organization, NGO, Private Partners and Local Government Authority based on investment shares, funds, equity and services. The Project Director with Project Managers and Project Coordinators are responsible for implementing program activities. The Project Staff with Project officers and Field Mobilizes are responsible for implementing program activities in village level

10 5. Model Shareholding Structure

11 10% 20% 10% 60% Private Partners Local Authority CBO/NGO Community

12 Director Board Representations Private Partner Local Authotity NGO/CBO Community 6. KEY ROLE OF PARTNERS

13 Public sector: Providing of resources and services for project development, Land Requirement including infrastructure Building facilities, Fund Raising, Encouraging planting process, Promotion field activities, Direct and link with government services an facilities. Private sector: Proving of resources, skills and the expertise to commercialize the potential in the project sustainability, Conducting Feasibility study, Preparing Technical Report, Investment and Fund Raising, Business Promotion, Technology Application, Project Management, Project Operation and Maintenance, Power Generation and Distribution NGO/CBO: Initiate PPP model, Establishing of PPPC, Preparing project concept and project proposal for funding process, Fund Raising, Social Mobilization, Formation Community Company, Conducting PRA, Land allocation, Conducting Environmental Lending program, Promotion organic farming, fuel wood planting and Coordinating with all relevant parties including rural development activities Communities/Community Company: Planting fuel wood, Establishing of collection centers, Fuel wood transportation, Quality Assurance, Field Promotion and Coordinating with growers at the community level. 7. Monitoring and Evaluation The whole programme will be closely monitored throughout the implementing period. The effectiveness of the programme will be evaluated while project implementation is going on. Monthly and quarterly group discussions and progress review meetings could be arranged with project participants to review the progress, so that deficiencies and remedial action could be identified and introduced at the correct time. It is also planned to adopt sound monitoring mechanism and required intensive training in measuring of effectiveness and efficiency of implementation. Special emphasis will be placed to maintain monitoring quality and make it to reach a joint decision on how to improve accountability and transparency. HCDYO in collaboration with other partners will adopt a Community Based Participatory Monitoring and Evaluation methodology to assess the impacts of the projects implemented through them. The objective of this monitoring and evaluation system is to empower the communities to monitor the impacts of the activities implemented by them in their own localities. Participatory monitoring and evaluation is a community-based process that will determine, assess and judge systematically and as objectively as possible of the impacts and effectiveness of the programme interventions against the baseline as well as the inputs provided under the project. In view of the above, the proponents are expected to furnish baseline survey findings obtained by them at the time of preparation of the project proposals. It is expected that the proposals will reflect the general status of socio-economic and ecological parameters of the proposed locations. The HCDYO will be provided with

14 technical know how on application of various participatory data collection methodologies such as PRA techniques. This exercise will provide an opportunity for the local community to enhance their capacities on problem identification, problem analysis, finding of solutions to the local problems and designing of activities, work-plans and financial proposals. The project monitoring activities will be carried out jointly with the all parties and the community representatives. The Project Monitoring and Evaluation strategy will be followed in Community Based Participatory Monitoring and Evaluation Exercises of the projects. Evaluation process will be strengthened by getting involvement of Kalaniya University Socio-Economic Department, Divisional Secrete rite and School Environmental Task Forces C- Project Implementing Agencies 1. Lanka Biogen Pvt Ltd 2. Human and Community Development Youth Organization 3. Rajarata Community Bio energy Ltd 4. Thirappenene Divisional Secretariat D-The Way Forward to Ministry of Science and Technology Renewable energy sources can be viewed as the most appropriate solution to mitigate the energy problem. The operation and maintenance cost are very low with compared to the conventional energy plants. To accelerate and utilize renewable energy sources following measures are envisaged. 1. Transferring technology to Sri Lanka by developed countries in improving the utilization of renewable energy sources. 2. Providing assistance in research and development in the renewable resources area to improve the quality and output. 3. Providing financial assistance or surety to purchase machinery and equipment and to develop Co-financing mechanism in the renewable energy sources sector 4. Encouraging private sector for investments in the renewable energy sector. 5. Removing institutional, legal and other constraints with regards to the development o renewable energy sector and incentives to develop the renewable energy market.

15 6. Popularizing the use of renewable energy use through awareness campaigns.