Rikard Liden, World Bank

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Regional Leadership Forum
Advancing Sustainable Hydropower in Latin America and the Caribbean

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Rikard Liden, World Bank

  1. 1. World Bank MEASURING SUSTAINABILITY IN HYDROPOWER DEVELOPMENTRikard LidenSenior Hydropower SpecialistThe World BankRegional Leadership ForumRio de JaneiroNovember 13, 2012
  2. 2. Sustainable Energy for All Universal energy access (electricity and modern cooking fuels) Double the global Double the rate of renewable energy improvement in share in global energy efficiency energy mix Advisory group co-chaired by Jim Yung Kim, President of the World Bank 1
  3. 3. Hydropower in the World Bank 2002-2012• The Bank’s strategic support has gone from being inactive in 2002 to one of active promotion of sustainable hydro in global forums in 2012 2000 1800 • IBRD/IDA supported 1600 Hydropower Commitments hydro with a total 1400 IBRD/IDA (US $Million) 1200 lending of $5.75 billion 1000 and a total installed or 800 600 rehabilitated capacity 400 of 8.75 GW 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2
  4. 4. Hydropower constitutes an opportunity for development, livelihoodimprovement, poverty alleviation and environmental protection Market access Job creation Agriculture Aquaculture Energy Conservation Public health & Education 3
  5. 5. Focus on sustainable hydropower• Facilitation: Fostering a productive dialogue between the various actors involved in complex multipurpose projects, especially on international waters• Promoting Sustainability: Setting up economic, financial, technical, environmental and social arrangements in a way that deliver long-term sustainable benefits at both the national and local levels• Flexible Financing: Providing long-term predictable resources in low-income and high risk places to the public and private sectors, as well as partial risk guarantees• Measuring Results: Providing support for monitoring and implementation to help countries actually achieve their objectives and get value for money from their investments 4
  6. 6. Focus on sustainable hydropower • Facilitation: Fostering a productive dialogue between the various actors involved in complex multipurpose projects, especially on international waters • Promoting Sustainability: Setting up economic, financial, technical, environmental and social arrangements in a way that deliver long-term sustainable benefits at both the national and local levels • Flexible Financing: Providing long-term predictable resources in low-income and highResults: Providing support for and private sectors, as risk places to the public monitoring well as partial risk guaranteesand implementation to help Providing support for • Measuring Results: countriesactually achieve theirand implementation to help monitoring objectives and getvalue for money from theirachieve their objectives and countries actually investments get value for money from their investments 5
  7. 7. Measuring SustainabilityMonitoring and evaluation becomes more complex• Power production and transmission• Revenue management and poverty alleviation• Resettler welfare and livelihood• Ancillary infrastructure• Watershed and environmental management 6
  8. 8. How do we ensure sustainability? ▪ Technical design review ▪ Safeguards proceduresPreparation ▪ Panel of experts ▪ Thorough economic assessment ▪ Supervision visitsImplementation ▪ Monitoring & Evaluation for a limited time 7
  9. 9. Experience from WB projects Complicated to judge sustainability on short-term measurementsMeasuring level of livelihood is easy;measuring sustainability of livelihooddepends on what you mean bysustainability (inter-generational?)• Is current consumption of resettlers drawing down savings?• Are physical resource bases for resettlers (fish, forest, agri) being managed in a relatively long-term Rural way? Are there systems in place to Poverty Line manage them? (Target)• Will roads continue to provide access to markets?• Will health care continue to help households stay productive? 8
  10. 10. Experience from WB projects Sustainability requires commitment from multiple sectors Sustainability means most often to establish new norms and institutions outside of the developer’s control• Are there resources to maintain ancillary infrastructures once handed over (roads, clinics, schools, etc.)?• Are Govt revenues allocated to agreed eligible sectors (e.g. primary education, basic health, rural roads, environment)• Will auditing requirements be enforced?• Will water and environmental management be enforced? 9
  11. 11. Measuring SustainabilityMain recommended approach • Define outcome based targets that are measurable • Define the period over which they should be measured (must be medium to long-term) • Measure them at the right time • Judge sustainability based on a) consumption trend (must be level or climbing) b) net assets (assets minus debt) steady or rising, c) sources of income (not based on subsidies or project hand-outs; preferably based on a diversity of sources) 10
  12. 12. Current areas WB explores to ensure sustainability in HydroIHA Hydropower Sustainability Assessment ProtocolIntegration of ICT in monitoring and evaluationImproved adaptive contract management 11

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