results-based financing in endev...sub-region (cambodia, laos and vietnam) • duration: 4 years -...
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Results-basedfinancinginEnDevRBCFDialogue,ParisElinaWeber,2June2016
Results-basedfinancinginEnDev
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• Concept&keyprinciples“Overcome(financial)marketbarriersthroughcontractualagreementswithprivatecompaniestopayincen;vesa<erverifica;onofpre-agreedresults”1. PaymentstoarecipientaremadeconDngentonachievementofpre-
agreedresults2. Recipientisgivenfreedomastohowresultsareachieved3. IndependentverificaDonofresultsfuncDonsastriggerfordisbursement
• RBFintheenergyaccesssector:- TargeDngbarriersormarketfailuresthatconstrainprivatesectordelivery
ofmodernenergyservicestothepoorwiththeaimtodevelopdecentralisedrenewableenergymarkets
RBFpor:olio
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• AMC(2)• AucDons(2)
• (Marketdevelopment)OBA(10)• CCT(1)
• Voucher(2)• CreditOBA(3)
• Inducementprize(2)
• Africa:Benin,Ethiopia,Kenya,Malawi,Mozambique,
Rwanda,Tanzania,Uganda• Asia:Banglades,,Cambodia,
Laos,Nepal,Vietnam• SouthAmerica:Peru
• GIZ/EnDev(10)• SNV(4)• HIVOS(1)• PracDcalAcDon(1)• CLASP(1)
• Solar(6)• Cookstoves(6)• Mini-grids(2)• Streetlights(1)• Gasifierstoves(1)• DomesDcbiogas(2)• SolarWaterHeaters(1)• SolarWaterPumping(1)• GridconnecDons(1)
Tech-nologies
Organiza-Dons
RBFtypesand
approachesCountries
• TotalbudgetcommibedinRBFfacility:GBP40,000,000• Timeframeforprojectset-up&implementaDon:4years
RBFprojectsinthecookingsector
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Country ObjecCve BoDleneck RBFdesignEthiopia Connecturban
producContoruraldistribuConviacooperaDves
TransportanddistribuDoncostsandriskstoohigh
IncenDvesperstovetocooperaDvestoinvestinprofitabledistribuDonchain->marketdevelopmentOBA
Peru DesignandmarketintroducDonofportablestoves
NoportablestovesavailableinthePeruvianmarket
InnovaDoncontestfordesignofportablestoves.Winningstovesbroughttomarket->inducementprize
Kenya StrengtheningmarketforCer2andhigherstoves
Consumerfinancingconstraints,absenceofaffordablecreditmechanisms
IncenDvesforFI/MFIperloanextendedtohouseholdpurchasingstove,securingstovesloanproductinMFI/FIstandardporgolio->creditOBA
Mekong(Cambodia,Lao,Vietnam)
IntroducDonofhigherCerstovestotheregion
Manufacturershesitanttoenternewmarket,noconnecDonwithlocaldistribuDonmarket
StoveaucDonwithincreasingmin.priceandconnecDngmanufacturerstonaDonaldistribuDonagents->aucCon
StoveAucConMekong–Snapshot
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• TITLE:MarketAcceleraDonofAdvancedCleanCookstovesintheGreaterMekongSub-region(Cambodia,LaosandVietnam)
• DURATION:4years-March2015toMarch2019• BUDGET:EUR3,839,704- ManagementandTA=EUR767,704(cannotexceed20%oftotalbudget)- RBFincenDves=EUR3,072,000(80%oftotalbudget)
• OBJECTIVE:AcceleratemarketforadvancedbiomassstoveswhicharecleanerandsaferthanotherbiomassstovealternaDves
- Increasenumberofactorsinthemarket- Improveaccesstocleanerandmoreefficientenergyservicesforend-users
StoveAucConMekong-Concept
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HOWITWORKS
§ LikeineveryaucDonthereareSellersandBuyers.§ TheSellersinTheStoveAuc;onarestoveproducersortheiragentsandtheBuyersarelocally
basedstovedistributorsandretailers.§ SellersconsigntheirstovestoTheStoveAuc,onlocatedinPhnomPenh,VienDaneandHanoito
selltoBuyers.
BENEFITSFORSELLERS§ GuaranteedpricesbackedbyanRBFmechanismforstovesthatareaucDoned§ Early,lowcostentryintonewmarketsinSoutheastAsia§ AccesstoincenDviseddistribuDonchannelsfacilitatedbyTheStoveAucDon
§ AucDonbypassopDonwhereSellerscanselldirectlytoBuyersatthefullwholesalevalueprice
BENEFITSFORBUYERS
§ AccesstohighqualityproductsatcompeDDveprices
§ CanpurchaseinaffordablequanDDes§ ReceiveacashincenCveforeachsaletoanendcustomer
DynamicmarketvaluaConofRBFincenCvetoseller
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Nosales
AucConpriceforthedistributer
Reserveprice(minimumacceptableoffer)
Guaranteepricetothesupplierofstoves
LowerRBFIncenCve
Economyofscales=lessprofit/unit&lowerlandingcostsallowstobringdownguaranteeprice
Increasingdemand=compeDDon=higherbids
EnDev/SNVIncreasingthereservepriceoverDme
Buyer‘sincenCvevaluaCon
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• BasedontheperformanceofthestoveandcategorizedintoStandardandPremiumlevelcategoriesaccordingtothestoveselecDoncriteria.
• Standardcategoryincludesstovesthatachieve10-19%fuelsavingsaccordingtolocalCCTsandIWATier2orhigherintotalemissions,andwitha“Best”orhighersafetyraDng.
• Premiumcategoryincludesstovesthatachieve20%fuelsavingsorhigheraccordingtolocalCCTsandIWATier3orhigherintotalemissions,andwitha“Good”safetyraDng.
• EachperformancefactoristhenmulDpliedbydifferentweightfactors,resulDnginanoverallscoreforeachperformancefactor.Thehighestweightisgivento‘totalemissions’topushinnovaDononcleanerstoves.
• EachpointintheoverallscoreisthenpricedatEUR1.00inyear1andisphaseddownwardby20%peryear.
VerificaCon
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• RBFpaymentstoSellers:paidoncetheirstovesaresoldataucDonandthetransacDonhasbeenindependentlyverified.ThepricepaidbythewinningbidderplusRBFamountminusfeeswillbetransferredtotheSellersbankaccount.
• RBFpaymentstoBuyers:paidoncetheirstoveshavebeensoldtoend-userandthattransacDonhasbeenverifiedthroughphonecallsandphysicalinspecDonsbytheIVA.Frequency:oneDmepermonththatverificaDonandpaymentwouldtakeplace.
• TransacDonrecordsthatBuyerswouldneedtosubmittoclaimRBFare:- Fullcustomercontactinfo- Serialnumbersarerecorded- AllregistraDoncardsareincluded- RBFClaimcalculaDonsarecorrect
• RBFclaimsbyBuyerswillbedeemedtohavefailedverificaDonprocesswhengreaterthan20%ofconsumerclaimsasinspectedbothonsiteandviaphoneprovefalse.
ThankyouforyouraDenCon.
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Fundedby:
Implementedby:
EnDevRBFGlobalProgrammeElinaWeber:[email protected](SNV)JasonSteele,RegionalProgrammeManager:[email protected]
Pilotphase
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• SNVhasbeenpiloCngTheStoveAuc,onfirstinCambodiapriortothird-partyimplementaDon
• ThefirstaucDonwasMarch31,andsubsequentaucDonsonApril21,May11andMay26.TwoaucDonsperweekarescheduled.
• CurrentlytherearetwostovemodelsaucConedsofar(ACE1andPrimeFuelwood),withotherswaiDngtobeshippedadothersinthepipelineundergoingapproval.
• WiththefirstfouraucDons,980stoveshavebeensold.Theclearingpricehasalreadyslowlybeengoingupaswellhashighestbids.
• SNViscurrentlymobilisingBuyerstoregisterforTheStoveAuc;on,withatargetofatleast15bySeptember2016inCambodia.Currentlythereare8registeredbiddersintheCambodiaaucDon.
Keyperformanceindicators
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