ECA SERVICES / INVESTMENT PLANNING
Infrastructure sectors require continuous investments leaving policymakers and utilities with the difficult task of prioritising projects and objectives within a budget constraint. ECA offers services in developing policy toolkits, comparing investments and identifying project financeability to support in the investment decision process. Our experts have extensive experience in developing long term sector investment and policy strategies like masterplans, integrated resources plans and network development plans.
In the implementation of these plans, private investment often proves a key success factor requiring private sector participation models, PPP frameworks and financing facilities.
The scope of ECA services allows us to appreciate the totality of the requirements for private sector participation, understanding the interactions between high-level policy design, project development and implementation outcomes.
Our focus areas include:
- Designing least cost infrastructure development plans
- Advising on investment strategies and prioritisation tools
- Forecasting electricity loads
- Developing energy and water sector masterplans
- Recommending PPP policy and regulation frameworks
SELECTED PROJECTS INCLUDE >
SELECTED PROJECTS INCLUDE >
The objective of the assignment was to prepare a new Regional Generation and Transmission Expansion Plan (the so-called ‘Pool Plan’) for the SAPP region covering the period up to 2040. ECA led the project and provided inputs and expertise covering demand forecasting, economic aspects of power system planning, cost-benefit analysis and real-options analysis of major interconnection corridors and their associated generation projects.
This project involved developing web-based toolkits to assist PPP practitioners with all aspects of the PPP development, structuring, transactions negotiation and implementation. The toolkits covered five infrastructure sectors: water and sanitation, solid waste management, urban transport, ports and highways.
ECA advised on the design, structure and ownership of a consortium of public as well as private investors for midstream gas and power generation projects in the West Balkans (Albania, Bosnia-Herzegovina, Croatia, FYROM, Kosovo, Montenegro, Serbia).
ECA was engaged to develop the Access to Finance business line of the Green Minigrid (GMG) Market development Programme from AfDB. Activities under this business line included the design of a financing facility in support of GMG rural consumer connections, a commercial financiers’ capacity needs assessment and subsequently design of a training program linked to envisaged green credit lines and a study of potential supplier and export credit arrangements and the promotion of local manufacturing in view of potentially developing a matchmaking function within the Programme.
ECA developed different business and contractual models for the introduction of LNG for power generation to six Central American countries. The objective of this World Bank project was to advise on an economically and technically feasible option for regasification projects and onwards gas and electricity trade.
The Facility had been designed in an earlier ECA study – the subsequent project was to assist in implementing the sector financing strategy through consensus-building within government and working closely with the chosen host agency, PIP (Indonesia Investment Agency), to develop the operational manual and procedures for PIP, the water utilities (PDAMs) and local governments.
The Mekong River Commission is responsible for basin-wide planning for the Lower Mekong riprarian countries (Cambodia, Lao PDR, Thailand and Vietnam). The Sustainable Hydropower Development Strategy was a key input to the planning process, identifying guidelines on optimal development which trade-off water, food and energy needs and which enhances basin-wide benefits of hydropower through greater regional power sector integration.
Preparation of a power development plan for Malawi taking account of both supply side investments and demand-side measures. Malawi’s power system is dominated by hydropower and it has the potential to trade electricity with neighbouring countries in the Southern African Power Pool (SAPP).
ECA provided support to EBRD’s energy strategy in the West Balkans by assessing the economic value of different power generation development scenarios. The work included a region-wide dispatch analysis with ECA’s inhouse dispatch model Wairoa to assess the security of supply implications of different power sector decarbonisation scenarios.
ECA consulted stakeholders extensively and, following completion of the rapid review, prepared an action plan for grid expansion, which included a prospectus of future investments.
ECA was responsible for developing the terms and conditions of the management contract under which responsibility for the implementation of a scaled-up rural electrification programme will be contracted out to the private sector.
ECA reviewed investment in the water sector and developed an investment planning model to rank projects by economic returns ranked to identify projects which will have the greatest impact for the funding available. Funding options were identified to match the expected risk-financial return profiles of the projects.
ECA worked with the International Finance Corporation to determine the key drivers of and barriers in developing countries to the expansion of “Alternative Private Supply” of electricity which do not require coordination through centralised grids and to assess whether electricity had the potential to expand as quickly as mobile telephony.
ECA developed a Diagnostic Tool for Institutional Development in the water sector to assist World Bank staff in isolating problems, identifying solutions and entry points, and designing and implementing water sector reforms, capacity building and institutional strengthening programmes.
Advice to KOSTT on wind power integration covered: network reinforcement planning and investment analysis, network security analysis, ancillary service provision and balancing, network operation with intermittent generation sources and forecasting techniques with wind.
In preparation of the first licensing round of offshore petroleum licences, ECA supported the Lebanese Petroleum Administration in its development of a gas masterplan. Our team reviewed existing gas demand projections, calculated netback prices, proposed a feasible infrastructure development plan on the basis of economic analyses of pipelines and LNG options, assessed a suitable gas market and sector structure, recommended gas pricing arrangements and associated regulatory frameworks.
ECA reviewed the existing transmission investment plans, assessed options for financing new investments, and identified options for private sector participation (PSP) in the electricity transmission network.
ECA is leading in an international study to provide operating procedures and guidance to developing countries and World Bank task teams on how to support public institutions in effectively engaging the local private sector to deliver water and sanitation services, especially to the poor in rural growth centres and small towns. Case study focus countries are Philippines, Bangladesh, Uganda and Colombia.
The work involved a review of the readiness of the institutions to implement the proposed electrification roll-out; an assessment of the enabling framework for electrification; recommendations on targeted subsidies in support of the programme; and drafting of the financing prospectus.
The objective of the project was to assess the commercial, technical and economic feasibility of the proposed gas transmission expansion in North Macedonia. The results of the study was used by the EBRD to make a final investment decision on the gas transmission expansion project.