How JICA mobilizes private sector finance and
investments for affordable and clean energy
Megumi MUTO,Vice President
Japan International Cooperation Agency (JICA)
Outline
1. Introduction
2. Case Studies
Mongolia : (1)Tsetsii Wind Farm Project (Project Finance)
(2)Project for Ensuring and Improving the Power
System Stability (Technical Cooperation)
(3) Capacity Development Project forAir Pollution
Control in Ulaanbaatar City (Technical Cooperation)
Indonesia: Legok NangkaWasteTreatment PPP Project
(Technical Cooperation)
3. Way forward
1
Introduction
2
JPY 1.8 trillion
JFY2021 Initial Budget
Three Main Arms of Operations
During FY2019(1);
(1) Source: JICA Annual Report 2020 (https://www.jica.go.jp/english/publications/reports/annual/2020/c8h0vm0000fc7q2b-att/2020_all.pdf)
 Support for human resources
development, R&D, technology
dissemination and the improvement of
institutional frameworks required to
advance economic and social development
Technical Cooperation 501 Projects
Assistance in agricultural production in
Uganda
 Assistance in the form of grants with
no repayment obligations to provide
the goods and services necessary for
economic and social development
Grant Aid 147 New Projects
Rural water supply in
Ethiopia
Delhi Mass Rapid Transport
System Project in India
 ODA Loans
Sovereign-based lending with
concessional conditions
 Private-sector Investment
Finance
Lending or equity investment to
private-sector entities
Finance and Investment 51 New Projects
83%
8%
9%
Financial and investment JPY 1,500bn (USD 13.6bn)
Technical Cooperation JPY 153bn (USD 1.4bn)
Grant Aid JPY 163bn (USD 1.5 bn)
Introduction
3
Operational Strategy Aligned with SDGs
Maldives
 Enhancement of
resiliency against climate
change and coastal
disaster
Kenya
 Building renewable
power generation
Ethiopia
 Financing support to
women entrepreneurs
“Leave no one behind”
“End poverty, improve health and
education, reduce inequality, and spur
economic growth”
“Human Security”
Lead to ensure the
development of leaving no one
behind
“Quality Growth”
Realize inclusive, sustainable,
and resilient growth
Uganda
 Capacity development
for South Sudanese
refugees
 Hosted communities
Kenya
 Implementation of the
Free Maternity Services
and the Health
Insurance Subsidy
Program
Peacebuilding
Human Security
Universal Health Coverage
(UHC)
Inclusive
Quality Growth
Sustainabl
e
Resilient
Introduction
4
2019
JPY 1.52 trillion
150 developing countries and regions received JICA’s assistance during JFY2019
Achievement
Source: JICA Annual Report 2020 (https://www.jica.go.jp/english/publications/reports/annual/2020/c8h0vm0000fc7q2b-att/2020_all.pdf)
(1) Expected contribution to SDGs under new finance and investment projects is identified through ex-ante evaluation conducted by JICA. For projects
identified as contributive to more than one SDGs, commitment amount is divided equally across the identified SDGs by the number of Goals.
Support for People’s Lives
1,059 health care facilities
were developed with financial aid
during JFY2008-2019
Access to Safe Water
80.5 million people
gained access to safe water with
JICA’s aid for water supply facilities
during FY1999-2019
Stable Power Supply
9.4 million households
are expected gain better access to power in
Africa under projects committed in CY2016-
2018
Development of Industrial Human
Resources
40,576 people
were provided professional and occupational
training in Asia during FY 2018-2019
Rebuilding Nepal
83,000 homes
were rebuilt during FY2015-2019 after a large
earthquake hit Nepal
Diversified
Contribution to SDGs(1)
3%2%
13%
17%
6%
44%
1%
8%
3%
1 No Poverty
2 Zero Hunger
3 Health
4 Education
5 Gender Equality
6 Water and Sanitation
7 Energy
8 Economic Growth
9 Infractructure and Industry
10 Reduced Inequalities
11 Sustainable Cities
12 Sustainable production
13 Climate Actions
14 Oceans
15 Forests and Biodiversity
Afforestation
1,860,000 ha
of land were regenerated with a contribution to
reduce poverty during JFY2014-2018
Mongolia: Tsetsii Wind Farm (Project Finance)
5
Outline
The Project aims to help supply Mongolia's power demand with clean, eco-efficient electricity by harnessing the country’s vast and
inexhaustible wind resources through construction and operation of 50MW wind at Tsogttsetsii soum, Umnugobi aimag, Mongolia
by Clean Energy Asia, thereby contributing to sustainable economic development and mitigation of climate change impact in
Mongolia.
Project Structure
Impact & Importance
1. Promoting the renewable energy development through Feed-in-Tariff system in Mongolia.
2. “Quality Infrastructure” being promoted by the Japanese government with due consideration on life cycle costs, environmental
and social sustainability, and contribution to the local society and economy.
3. First co-financed project between JICA and EBRD. (IJGlobal Award 2016)
4. First USD-denominated project finance debt transaction.
6
Mongolia: Project for Ensuring and Improving the Power System Stability in
Mongolia (2022- 2024, Technical Cooperation)
Project purpose
Improve planning and operational ability of NDC, NPTGC and UBEDN on grid connection
procedure to expand the introduction of renewable energy in Mongolia
Candidate Counterpart
• NDC (National Dispatching Center)
• NPTGC (National Power Transmission Grid State Own Stock Company), and
• UBEDN (Ulaanbaatar Electricity Distribution Network Joint Stock Company)
Prospected outcomes (tentative)
1. Capacity of system planning, operation and analysis to expand introduction of renewable
energy is strengthened
2. Diagnosis capacity on substation operation and relay setting is strengthened
3. Operational capacity of smart power transmission technology is strengthened
4. Review the power distribution sector's renewable energy connection requirements and
review procedures are standardized
5. Operational capacity of smart meters and automation of power distribution is promoted
*Data collection survey for low carbonization/de-carbonization and stabilization of power
system is carried out since Oct. 2020 to Mar. 2022. The project framework is discussed
through this survey.
7
Demonstration Experiment of improved fuel for
home use
Purpose
To develop and suggest better coal fuel for home
use.
Outline of demonstration experiment
Compare the air pollutant and gas emission
between existing fuel (produced by TTT Company,
which is widely used in U) and suggested fuel
(middling briquette, whiBch is mixed by biomass and
desulfurizing agent)
Methodology
Burn the existing fuel and suggested fuel for 3 weeks
and compare the emitted value of PM10, PM2.5 and
SO2.
Mongolia: Capacity Development Project for Air Pollution Control
in Ulaanbaatar City Phase 3 (2018-2024, Technical Cooperation)
Output
1. Capabilities of emission monitoring for
the major pollution sources and of air
quality monitoring are strengthened.
2. Capabilities to analyze and evaluate
pollution structure of PM, SO2 and NOx
throughout the year are strengthened.
3. Capabilities of technical evaluation and
preparation of air pollution control
measures for implementation are
strengthened.
4. Decision making process for air pollution
control is improved by utilizing the
professional agencies, including APRD,
National Agency for Meteorology and
Environment Monitoring (NAMEM) and
the relevant agencies.
5. Air pollution control measures are
enhanced for PM, SO2 and NOX
emission reduction at major sources.
6. Legal framework, resource allocation and
coordinating mechanism as a Platform
for the Air Quality Management Cycle are
strengthened for the Outputs 1 to 5.
Indonesia: Legok Nangka Waste Treatment PPP Project
8
 The project will be implemented by West Java Provincial Government as the GCA under
Presidential Regulation 38/2015 on PPP.
Capacity 1,853 – 2,131 ton/day
Waste Supply
From 6 Municipalities
(BandungCity, Cimahi City, Bandung Regency,
Sumedang Regency,West Bandung Regency,
Garut Regency)
Funding Scheme
PPP (Build-Operate-Transfer for 20 years
operation period after COD)
Revenue Source
• Tipping Fee (IDR/ton) from West Java
Province and 6 Municipalities
• Off-taking revenue from the sales of by-
products generated from the waste
treatment process
Procurement OpenTechnology PPP procurement
o Sarimukti landfill is reaching
its capacity limit in 2023/2024;
o West Java Province is
committed to reduce and stop
open dumping practices, and
planning to develop an
environmentally-friendly
modern waste treatment
facility.
Project Profile
Project Background
Way forward
• Collective impact: In the era of SDGs, there is
increased recognition that JapaneseODA
alone cannot lead to sustainable impact at
scale.
• JICA’s historical core strength isTA to the
public sector. How to leverageTA to mobilize
1) JICA finance and 2) other finance for scale
are keys to our motivation.
9
Thank you
10
Japan International CooperationAgency (JICA)

How JICA mobilizes private sector finance and investments for affordable and clean energy - Megumi Muto, JICA

  • 1.
    How JICA mobilizesprivate sector finance and investments for affordable and clean energy Megumi MUTO,Vice President Japan International Cooperation Agency (JICA)
  • 2.
    Outline 1. Introduction 2. CaseStudies Mongolia : (1)Tsetsii Wind Farm Project (Project Finance) (2)Project for Ensuring and Improving the Power System Stability (Technical Cooperation) (3) Capacity Development Project forAir Pollution Control in Ulaanbaatar City (Technical Cooperation) Indonesia: Legok NangkaWasteTreatment PPP Project (Technical Cooperation) 3. Way forward 1
  • 3.
    Introduction 2 JPY 1.8 trillion JFY2021Initial Budget Three Main Arms of Operations During FY2019(1); (1) Source: JICA Annual Report 2020 (https://www.jica.go.jp/english/publications/reports/annual/2020/c8h0vm0000fc7q2b-att/2020_all.pdf)  Support for human resources development, R&D, technology dissemination and the improvement of institutional frameworks required to advance economic and social development Technical Cooperation 501 Projects Assistance in agricultural production in Uganda  Assistance in the form of grants with no repayment obligations to provide the goods and services necessary for economic and social development Grant Aid 147 New Projects Rural water supply in Ethiopia Delhi Mass Rapid Transport System Project in India  ODA Loans Sovereign-based lending with concessional conditions  Private-sector Investment Finance Lending or equity investment to private-sector entities Finance and Investment 51 New Projects 83% 8% 9% Financial and investment JPY 1,500bn (USD 13.6bn) Technical Cooperation JPY 153bn (USD 1.4bn) Grant Aid JPY 163bn (USD 1.5 bn)
  • 4.
    Introduction 3 Operational Strategy Alignedwith SDGs Maldives  Enhancement of resiliency against climate change and coastal disaster Kenya  Building renewable power generation Ethiopia  Financing support to women entrepreneurs “Leave no one behind” “End poverty, improve health and education, reduce inequality, and spur economic growth” “Human Security” Lead to ensure the development of leaving no one behind “Quality Growth” Realize inclusive, sustainable, and resilient growth Uganda  Capacity development for South Sudanese refugees  Hosted communities Kenya  Implementation of the Free Maternity Services and the Health Insurance Subsidy Program Peacebuilding Human Security Universal Health Coverage (UHC) Inclusive Quality Growth Sustainabl e Resilient
  • 5.
    Introduction 4 2019 JPY 1.52 trillion 150developing countries and regions received JICA’s assistance during JFY2019 Achievement Source: JICA Annual Report 2020 (https://www.jica.go.jp/english/publications/reports/annual/2020/c8h0vm0000fc7q2b-att/2020_all.pdf) (1) Expected contribution to SDGs under new finance and investment projects is identified through ex-ante evaluation conducted by JICA. For projects identified as contributive to more than one SDGs, commitment amount is divided equally across the identified SDGs by the number of Goals. Support for People’s Lives 1,059 health care facilities were developed with financial aid during JFY2008-2019 Access to Safe Water 80.5 million people gained access to safe water with JICA’s aid for water supply facilities during FY1999-2019 Stable Power Supply 9.4 million households are expected gain better access to power in Africa under projects committed in CY2016- 2018 Development of Industrial Human Resources 40,576 people were provided professional and occupational training in Asia during FY 2018-2019 Rebuilding Nepal 83,000 homes were rebuilt during FY2015-2019 after a large earthquake hit Nepal Diversified Contribution to SDGs(1) 3%2% 13% 17% 6% 44% 1% 8% 3% 1 No Poverty 2 Zero Hunger 3 Health 4 Education 5 Gender Equality 6 Water and Sanitation 7 Energy 8 Economic Growth 9 Infractructure and Industry 10 Reduced Inequalities 11 Sustainable Cities 12 Sustainable production 13 Climate Actions 14 Oceans 15 Forests and Biodiversity Afforestation 1,860,000 ha of land were regenerated with a contribution to reduce poverty during JFY2014-2018
  • 6.
    Mongolia: Tsetsii WindFarm (Project Finance) 5 Outline The Project aims to help supply Mongolia's power demand with clean, eco-efficient electricity by harnessing the country’s vast and inexhaustible wind resources through construction and operation of 50MW wind at Tsogttsetsii soum, Umnugobi aimag, Mongolia by Clean Energy Asia, thereby contributing to sustainable economic development and mitigation of climate change impact in Mongolia. Project Structure Impact & Importance 1. Promoting the renewable energy development through Feed-in-Tariff system in Mongolia. 2. “Quality Infrastructure” being promoted by the Japanese government with due consideration on life cycle costs, environmental and social sustainability, and contribution to the local society and economy. 3. First co-financed project between JICA and EBRD. (IJGlobal Award 2016) 4. First USD-denominated project finance debt transaction.
  • 7.
    6 Mongolia: Project forEnsuring and Improving the Power System Stability in Mongolia (2022- 2024, Technical Cooperation) Project purpose Improve planning and operational ability of NDC, NPTGC and UBEDN on grid connection procedure to expand the introduction of renewable energy in Mongolia Candidate Counterpart • NDC (National Dispatching Center) • NPTGC (National Power Transmission Grid State Own Stock Company), and • UBEDN (Ulaanbaatar Electricity Distribution Network Joint Stock Company) Prospected outcomes (tentative) 1. Capacity of system planning, operation and analysis to expand introduction of renewable energy is strengthened 2. Diagnosis capacity on substation operation and relay setting is strengthened 3. Operational capacity of smart power transmission technology is strengthened 4. Review the power distribution sector's renewable energy connection requirements and review procedures are standardized 5. Operational capacity of smart meters and automation of power distribution is promoted *Data collection survey for low carbonization/de-carbonization and stabilization of power system is carried out since Oct. 2020 to Mar. 2022. The project framework is discussed through this survey.
  • 8.
    7 Demonstration Experiment ofimproved fuel for home use Purpose To develop and suggest better coal fuel for home use. Outline of demonstration experiment Compare the air pollutant and gas emission between existing fuel (produced by TTT Company, which is widely used in U) and suggested fuel (middling briquette, whiBch is mixed by biomass and desulfurizing agent) Methodology Burn the existing fuel and suggested fuel for 3 weeks and compare the emitted value of PM10, PM2.5 and SO2. Mongolia: Capacity Development Project for Air Pollution Control in Ulaanbaatar City Phase 3 (2018-2024, Technical Cooperation) Output 1. Capabilities of emission monitoring for the major pollution sources and of air quality monitoring are strengthened. 2. Capabilities to analyze and evaluate pollution structure of PM, SO2 and NOx throughout the year are strengthened. 3. Capabilities of technical evaluation and preparation of air pollution control measures for implementation are strengthened. 4. Decision making process for air pollution control is improved by utilizing the professional agencies, including APRD, National Agency for Meteorology and Environment Monitoring (NAMEM) and the relevant agencies. 5. Air pollution control measures are enhanced for PM, SO2 and NOX emission reduction at major sources. 6. Legal framework, resource allocation and coordinating mechanism as a Platform for the Air Quality Management Cycle are strengthened for the Outputs 1 to 5.
  • 9.
    Indonesia: Legok NangkaWaste Treatment PPP Project 8  The project will be implemented by West Java Provincial Government as the GCA under Presidential Regulation 38/2015 on PPP. Capacity 1,853 – 2,131 ton/day Waste Supply From 6 Municipalities (BandungCity, Cimahi City, Bandung Regency, Sumedang Regency,West Bandung Regency, Garut Regency) Funding Scheme PPP (Build-Operate-Transfer for 20 years operation period after COD) Revenue Source • Tipping Fee (IDR/ton) from West Java Province and 6 Municipalities • Off-taking revenue from the sales of by- products generated from the waste treatment process Procurement OpenTechnology PPP procurement o Sarimukti landfill is reaching its capacity limit in 2023/2024; o West Java Province is committed to reduce and stop open dumping practices, and planning to develop an environmentally-friendly modern waste treatment facility. Project Profile Project Background
  • 10.
    Way forward • Collectiveimpact: In the era of SDGs, there is increased recognition that JapaneseODA alone cannot lead to sustainable impact at scale. • JICA’s historical core strength isTA to the public sector. How to leverageTA to mobilize 1) JICA finance and 2) other finance for scale are keys to our motivation. 9
  • 11.
    Thank you 10 Japan InternationalCooperationAgency (JICA)