Supportive Policies: Bangladesh

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Mohammad Alauddin Joint Secretary Power Division Ministry of Power, Energy & Mineral Resources Government of the People’s Republic of Bangladesh 14 June 2015 SE4ALL Consultation Workshop 2015

Transcript of Supportive Policies: Bangladesh

Mohammad AlauddinJoint SecretaryPower Division

Ministry of Power, Energy & Mineral ResourcesGovernment of the People’s Republic of

Bangladesh

14 June 2015

SE4ALL Consultation Workshop 2015

Access to Electricity

Envision to provide access to affordable and

reliable electricity to all by 2021.

Access to Electricity is 70% including 10% RE

Access to electricity enhancement through

BREB in rural area & IDCOL in off-grid area.

Of late SREDA is promoting RE & EE

activities.

Solar Home System (SHS)

Woman Technician Installing Solar Home Systems

IDCOL’s SHS Program

Supply Equipment

Pay for Equipment

Seeks grant & loan

Provide grant & loanIDCO

L

Technical Standards Committe

e

Suppliers Seeks approval

Provides approval

Household

Sells SHS & provide

service

Pay down-payment & installment

Operations

Committee

Seek operatio

n

related so

lutions

Provid

es Solutio

ns

NGO/POPO Selection

Committee Select POs

Applies

Dev. Partner

Grant & soft term

credit

Fund Flow & Role of Partners

• Provides grant and soft loan to IDCOL

• Provides policy support

• Maintain system

• Repay loan in monthly installments

Mode of Financing: An Example

Quality Control Mechanisms

Informs PO

Lodges complain

Takes remedial measure

IDCOL’s SHS Program

Program Target : 6 million SHS by 2018

Program Achievement : 3.64 million SHS by April 2015

Number of Beneficiaries : 16.4 million people (10% population)

Power Generation : 142 MW

Fossil Fuel Saving : 200,000 ton/year

Job Creation : 70,000 people

IDCOL Investment : About USD 600 million

Source: Infrastructure Development Company Limited

Challenges & Mitigations

Success Factors

Innovative financing structure - Ownership model

Financial contribution of all parties

Sustainable business model

Cost-efficient standardized technical design

Quality control and after sales service

Development of local support industries

Bangladesh’s micro-finance experience

Support from the Government, the World Bank & other development partners

Replicability Potential : Prerequisites

Micro-credit experience of the private sector agencies

Adequate financial support from the donor agencies

Availability of concessionary credit facility to the executing agencies

An agency to ensure collaboration among all parties

Development of local support industry

Strong quality control mechanism

Active support from the government i.e. fiscal benefits

Ensuring customer ownership in SHS

Women Engagement

IDCOL started preserving information on

female beneficiaries since 2012. Of all

beneficiaries under IDCOL’s SHS Program 27 %

are women.

IDCOL has been providing customer training

since 2007 & a total of 912,479 customers had

been trained.

SHS Program: Women Engagement

• Increase mobility of &

entrepreneurial

ambitions among

women.

• Provide women with

extended working

hour.

• Longer period for

children's study.

• Encourage women to

start small business .

Women Engagement

Awareness Trust Capabilities

Empowerment

Women Engagement

Since January 2013, around 433,271 customers had been trained covering 6.5% women.Currently 45 POs are working under SHS Program & have a total of 33500 staff at different levels.Around 370 staff are women & 99 staff are working in MIS/IT/Technical department. About 3000 women technicians have been trained by Grameen Shakti(PO).

Gender Gap: Region’s Best Performer

Source : Bangladesh Bank (April’15)