The "in between" space - Can investments that combine public purpose and business-like behavior produce results?

  • 355 views
Uploaded on

Presentation by Christine Eibs Singer, Deputy Executive Director - E+co - USA.

Presentation by Christine Eibs Singer, Deputy Executive Director - E+co - USA.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
355
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
4
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. The “In Between" Space Can Investments that Combine Public Purpose and Business-Like Behavior Produce Results? TBLI Conference, November 2005 Christine Eibs Singer Deputy Executive Director [email_address] www.energyhouse.com
  • 2. E+Co E+Co, a public purpose investment company established in1994, delivers services to and invests in developing country small and medium energy enterprises that deliver modern energy to households, businesses and communities, creating: -economic opportunity; -quality of life improvements and -positive environmental impacts Triple Bottom Line Returns on Investment E+Co operates in 20+ countries through locally based staff in Costa Rica, Brazil, Bolivia, South Africa, China and Thailand, with support offices in The Netherlands and US.
  • 3. E+Co Overview
    • Business Development Services are provided Pre- and Post Investment to support market and technology validation, financial analysis and structuring, business plan development, implementation and growth.
    • Investments (equity and debt) at the early stage and structured based on local market conditions and enterprise needs.
    • E+Co is technology neutral – the technology must be appropriate, available and affordable to its end-users.
    • E+Co blends public and private resources.
    • Sponsors include social investors, charitable foundations, financial institutions, multilateral banks and development organizations, bi-lateral agencies and multi-national corporations.
  • 4. The E+Co Enterprise Centered Model Local Partners Energy Services result in micro enterprises, productive uses and income generation Tools & Training Enterprise Development Services Seed Capital Enterprise Growth Services Growth Capital E+Co services and financing Energy Services Energy Entrepreneurs Local Partners
  • 5. E+Co Portfolio Performance Summary January 1998-June 2005
    • 112 investments $10.7 million in 35 countries
    • Modern Energy Services 2.1 million people
    • 17 Enterprises Written Off $1.1 million
    • 19 Loans Repaid in Full $2.3 million; ROI 10.2%*
    • Projected Weighted Average IRR on Total Portfolio, after write-offs 8.4%
    • * ROI excludes enterprise development costs and a portion of operating costs, which are funded separately through contracts and grants
  • 6. Enterprise Investment Profiles
    • Tecnosol, Rural Energy Services Company, Nicaragua
    • Clean Thai, Waste to Energy Solution Provider, Thailand
    • LaEsperanza, Hydro-Electric Power Plant, Honduras
  • 7. Nicaraguan-based Clean Energy Company Solutions to lighting and water needs
    • Nicaragua: 50% of population has no access to any type of electricity services and 75% of the rural areas are still un-electrified.
    • TecnoSol , promotes solar, wind and hydroelectric and provides energy alternatives for the lighting, refrigeration, water pumping and irrigation needs of businesses and communities.
    • TecnoSol has installed almost 3000 systems, primarily on a cash basis. Over next 2-year period, plan to install >6400 systems.
    • The company has experienced accelerated growth and it forecasts a 100% increase in sales in the coming years.
    • Tecnosol Highlights
    • E+Co Financing: US$300,000
    • Term : 6 years
    • Jobs Created : 13
    • Impact : PV systems replace use of kerosene and candles.
  • 8. Thailand enterprise uses waste to displace oil usage
    • Clean Thai and KWTE Highlights
    • E+Co Financing: US$ 197,500
    • Co-Financing: US$3,400,000
    • Jobs Created : 20
    • Environmental Impact :
    • 8 million liters of fuel oil displaced annually, emissions reduced by 250,000 tons CO 2 per year
    • Clean Thai uses proven anaerobic digestion technologies to recover and convert organic waste into biogas.
    • Thailand’s largest cassava producer uses the biogas to power its production boilers and to generate electricity to be used by the factory.
    • The factory is displacing 8 million liters of heavy fuel oil, generating 30,000 MWh of electricity each year.
    • The result is multimillion dollars of savings in operating costs , significant annual carbon emission reductions and energy self-sufficiency .
  • 9. Honduran Hydro Enterprises produces Triple Bottom Line Impact
    • La Esperanza is a 12.8 MW run-of-river hydro-electric project utilizing an abandoned powerhouse foundation.
    • La Esperanza produces triple bottom line benefits: financial, social and environmental. Permanent jobs, improved roads, reforestation, potable water and displacement of environmentally negative greenhouse gases.
    La Esperanza Highlights: E+Co Financing: US$450,000 Term : 4 years Co-Financing : $12.6 million Jobs Created : 40 direct, 120 indirect Environmental Impact : -Planting of more than 18 hectares of new forests. -Displacing 35,000 tons of greenhouse gases annually that would result from the traditional use of fossil fuels.
  • 10. La Esperanza Hydro Facility
    • E+Co’s Value Added
    • EDS for business plan preparation
    • Catalytic Seed Capital for construction of the first powerhouse
    • Follow-on investment to assist in securing financing for full construction
    • Assessing and quantifying its carbon offset potential; packaging, selling and registering the FIRST small scale CDM project, which should close in 2004.
  • 11. Triple Bottom Line Reporting
    • E+Co implements a Monitoring and Evaluation (M&E) Program that tracks the impact of modern energy delivered by E+Co investee companies along 30 social, environmental and financial indicators.
    • Highlights:
      • 2.1 million people now have access to modern energy services
      • $120 million in co-financing leveraged
      • 480,000 tonnes of CO 2 Offset Annually
      • 44.5 million liters of clean water pumped
      • 46,000 tones of firewood displaced
      • 6 million liters of kerosene displaced
      • >1,800 jobs sustained
  • 12. 5-Year Business Plan
    • $84 million invested in 200+ clean energy enterprises
    • Leverage >$900 million of co-financing
    • Establishment of Local Funds and Affiliates
      • Central America - Complete
      • Cameroon – In Progress
      • Ghana – In Progress
  • 13. CAREC
    • Central American Renewable Energy and Cleaner Production Facility
    • Innovative Mezzanine and Debt Facility
    • E+Co Capital Latin America – Fund Manager
    • First closing reached at $15 million; $20 million target
      • Leveraged fund – 60% equity, 40% debt
      • USAID-DCA Principal Guarantee for Private Sector Debt
    • 25-30 SME Investments
    • Market:: 20 million people lack clean energy in Central America
      • 5000-5700 MW of new capacity over next 10 years, 50-60% in renewable energy; = ~$4 billion of
      • investment
    • ~10% Return to Investors
  • 14. For Further Information… Contact: Christine Eibs Singer Deputy Executive Director [email_address] Tel: 1.973.868.6321 www.energyhouse.com