Local Integration of MHP for Sustainable Livelihoods: Investor Perspectives on IFRERA

1. Contribution ETC Energy in IFRERA Local Integration Issues seen from perspective of potential Investors as users of: “Ready to Implement” Financial Package & ESCO Implementation Modality IFRERA KICK OFF JULY 2004

2. Sustainable Livelihoods (SL) Activities: How do people make their living? Assets: On what do people base their living ? Entitlements: What rights do people have? IFRERA KICK OFF JULY 2004

3. Impact of MHP on SL Activities:How does MHP change the people’s way of life? Domestic consumption: tv, study, refrigeration, security, cleanness, home-based Production: income generation, agricultural practices, business development (SME) Public Services: schools, health service, recreation, public lighting Assets:How does MHP affect the people’s base of living ? Natural/biological: changed water availability, different agricultural conditions, Social/political: Changed community institutions, beneficiaries vs. non-beneficiaries, changed family cohesion, more dynamic traditional social networks Economical: Monetisized economy, credit facilities, savings Human: Widening personal & organisational knowledge and skills Physical: Construction of roads, lightening of markets, clinics, and schools Entitlements:How does MHP affect political, social & economic rights? Who has access to electricity: public bodies, business, households Possible shifts in decision-making in commune: Governance plant, tariffs & delivery regulations IFRERA KICK OFF JULY 2004

4. Impact of MHP on Environment Negative Local: • potential water conflicts • disruption in agriculture/grazing activities (e.g. due to civil structures, access road), • visual and acoustic disturbances (e.g. due to civil structures, construction works), • occurrence of endangered species in the project area, • other potentially negative impacts originating from the implementation and operation • pollution by increasing productive activities IFRERA KICK OFF JULY 2004

5. Impact of MHP on Environment Positive Global: • Reduction greenhouse gas emissions Local: • Saving hydrocarbon fuels resources • Decrease of air pollution IFRERA KICK OFF JULY 2004

6. Community participation Planning: • Needs assessment and awareness raising at community • Promote business development (enlarge commercial demand) • Real representation in decision making (before project start) • Training of local labour and technicians (maintenance) Building: • Mobilise local labour (traditions/structures in place?) • Information provision Management: • Several models possible. Crucial factor: involve community in one way or the other (cooperatives, representation in board, etc.) IFRERA KICK OFF JULY 2004

7. Integration with Local Development On Policy Level Before pilot • Involvement of local (provincial) authorities in discussions on objectives MHP pilot and possible advantages for commune/province During pilot: • Regular consultations with local (provincial) authorities on activities of MHP pilot After pilot: • Consolidation of pilot results with local (provincial) authorities IFRERA KICK OFF JULY 2004

8. Integration with Local Development On Economical Level • Inventory possible positive economic impacts of MHP for SME • Determination of positive effects on purchasing power of local community • Determination of possible increased local investment capacity • Support accommodating business development IFRERA KICK OFF JULY 2004

9. Site Selection Possible criteria (non-technical) • Availability human inputs for MHP • Non existence cheaper sources for electricity generation • Existence local institutions for management MHP • Available purchasing power community • Possible need for resettlement • Priorities stemming from national policy on poverty alleviation (Comprehensive Poverty Reduction and Growth Strategy –CPRGS-) • Support local authorities investment in MHP IFRERA KICK OFF JULY 2004

10. Approach Local Survey PARTICIPATORY ENERGY DEMAND ASSESSMENT PLANNING (PEDAP) developed by ETC Energy • Implementation research possibly in co-operation with resource persons / organisations in Vietnam • Number of techniques will be used for comparative analysis / demand identification / identification site selection criteria / identification institutional set-up stemming from Participatory Rural Appraisal (PRA) and related approaches IFRERA KICK OFF JULY 2004

11. Approach Local Survey IFRERA KICK OFF JULY 2004

12. Identification of Activities Domestic / Production / Public Services • Semi structured interviews with domestic / production / public service units • Community priority rankings (in groups) • Calendar of activities / Identification of electricity demand (in groups) • Direct observation (in each interview) • Profile of activities (in groups) • Historical profile (in groups) IFRERA KICK OFF JULY 2004

13. Identification of Assets Natural / Biological / Physical • Direct observation (during interview) • Resource mapping (with key informants) • Landscape analysis (in groups) • Mapping (with key informants) • Historical Profile (in groups) IFRERA KICK OFF JULY 2004

14. Identification of Assets Social / Political / Economical / Human • Self stratification (with key informants) • Semi structured interviews (with key informants) • Individual interview (case studies) • Relational Map (in groups) • Venn diagram (in groups) IFRERA KICK OFF JULY 2004

15. Identification of Entitlements Access to electricity / shifts in decision-making • Research primary sources regulatory framework • Interviews with key informants (representatives of organisations or institutions) • Relational Map (in groups) IFRERA KICK OFF JULY 2004

16. Final: common areas • National framework poverty alleviation (CPRGS) • Policy framework on energy planning • Institutional organisation mini-hydro sector • Rules & regulations energy production & delivery • Implementation models ESCO • Financial basis for electricity demand • Involvement of communes IFRERA KICK OFF JULY 2004