MIDDLE EAST / RECENT PROJECTS INCLUDE >

ECA provided expert witness advice in an international arbitration case on the potential of gas export volumes and pricing levels in a country in the Middle East. Issues of particular relevance were the assessments of offtake markets, price levels and damage claim valuations, export licencing conditions, export and domestic infrastructure assessments and reviews of existing long term gas masterplans.

Study on behalf of the Ministry of Energy and Electricite du Liban (EDL) to help identify the tariff levels necessary to recover EDL’s costs and lower the levels of support needed from the Government, and to advise on tariff designs. The focus was particularly on a path of cost efficiency improvements and improved supply reliability so that tariff reforms would be more acceptable to electricity users.

Advisory support was provided to the Natural Gas Authority to regulate and develop the transmission and distribution of natural gas in Israel.

ECA acted as commercial advisor to a national utility in negotiations over a power purchase agreement with a proposed 450 MW combined-cycle power plant.

Recommendations on electricity network wheeling charges suitable to a competitive electricity market when such a market is created and, before then, to allow renewable energy generators to transport electricity to contracted consumers.

Developed an Energy Strategy for Lebanon covering power generation, gas sector development, energy efficiency and renewable energy strategy. Combining existing Government commitments, the ECA team provided a summarised policy highlighting and addressing the key challenges faced by the energy sector in Lebanon.

Israel’s Natural Gas Authority requested advice on the methodology for the Israeli transmission tariff model, taking into account that INGL must maintain certain coverage ratios in relation to its debentures and credit rating. This included a review of international methodologies and a calculation of the appropriate return for Israel’s TSO.

ECA was assigned to develop a high level regulatory framework and clear guidelines to guide the Saudi Government (KSA) all players and related entities in creating gas networks to supply residential consumers and in opening up the LPG distribution market to competition. The developed regulation was to clearly identify roles, responsibilities and functions of the entities and to specify regulations and other rules governing geographical coverage, obligations, licensing arrangements, tariffs, tendering, standards, etc.

As part of a framework contract for renewable energy and energy efficiency projects in the SEMED region, ECA developed a national plan for the integration of solar water heaters (SWH) in Jordan. The team recommended on the financial viability of SWH development and the level of subsidy requirements, on the economic viability of SWH dissemination and on a viable business model for the greater integration of SWH and the role for EBRD credit guarantees. The recommendations were used to develop a national SWH programme and to clarify the role of EBRD in the SWH market in Jordan.

Private investment is being supported by out-based grants from the Global Partnership for Output Based Aid (GPOBA). ECA was responsible for overall project design and preparation of OBA Commitment Paper.