|
|
|
|
|
|
|
|
|
|
  |
 |
  |
ANE Regional Activities
>> Regional Overview >> ANE Regional Activities Overview ACTIVITY DATA SHEET
PROGRAM: Asia and the Near East Regional
TITLE AND NUMBER: South Asia Regional Initiative/Energy Program (SARI/Energy), 498-031
STATUS: Continuing
PLANNED FY 2001 OBLIGATION AND FUNDING SOURCE: None.
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: None.
INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2001Summary: The SARI/Energy program rests on the fundamental energy dynamics in the South Asia region, which provide opportunities to promote cooperation among the region's countries. India, a large and expanding market for energy, relies on poor quality domestic coal for over half of its energy needs, while Sri Lanka needs to import more energy or power. On the supply side, Bangladesh possesses significant natural gas reserves while Nepal and Bhutan have enormous hydropower export capacity. SARI/Energy seeks to-
- Promote sustainable economic growth through greater development, trade and usage of clean energy resources in the region while minimizing greenhouse gas emissions and harm to human health;
- Increase the supply and efficient delivery of clean, reliable, affordable and market-based energy in South Asia in a manner that opens markets to U.S. goods and services, fosters cooperative partnerships within the region and between the U.S. and regional energy firms, and enhances international economic and political security; and
- Foster more open political, legal and institutional structures in South Asia so as to encourage regional and international energy trade and investment.
The South Asia Regional Initiative/Energy Program (SARI/Energy) encourages regional cooperation in energy development and the eventual trade in clean energy resources among the South Asian countries of Bangladesh, Bhutan, India, Nepal, the Maldives and Sri Lanka. Also, it will support sustained economic growth while minimizing greenhouse gas emissions and harm to human health. SARI/Energy will bring together energy sector players from public and private sectors across the region to discuss and resolve issues that impede trade and investment in energy development. For example, the program will support a regional partnership among chambers of commerce in the region to advocate for more open policy, legal, regulatory, trade, tax, financial, and institutional frameworks in South Asia. This will encourage regional and international energy trade and investment, open markets to United States goods and services, and enhance international economic and political security. SARI/Energy will also support partnerships between regulatory agencies, transmission companies, and utilities in the region, exposing them to best practices in the region, the U.S., and internationally. The program will build capacity in target countries to use analytical tools to undertake energy, economic, trade, investment, and environmental analyses necessary for energy policy-making and planning. The program also supports the regional adaptation of best practices and standards that lead to improved energy efficiency and rural energy services.
Taken together, these measures will help achieve the dual objectives of promoting sustainable economic development and market-driven energy sectors in South Asia, and a greater opening of markets to U.S. and regional firms. Furthermore, by promoting cooperation that builds on mutual economic interest, the program can help ease political tensions in the region and build trust and confidence among countries.
Key Results: SARI/Energy was approved in January 2000. Baseline sector information has been collected from Bangladesh, Bhutan, India, Nepal, and Sri Lanka during fact-finding visits, and incorporated into contractor and grantee integrated work plans. A SARI/Energy web site has been designed and will be on the Internet by May 2001. South Asian officials have traveled to the United States under the transmission and regulatory partnerships sponsored by the United States Energy Association (USEA), and a utility partnership has been launched with its first meeting in Mumbai, India. The regulatory partnership has prioritized the drafting of a regional grid code and the sharing of tariff-setting mechanisms for regional energy exchange. Preparations are underway to link 18 Chambers of Commerce in the region with the U.S. Chamber of Commerce. The first training event, a course on marketing energy efficiency, was held in Sri Lanka in February. Capacity-building in regional infrastructure regulation and finance has been supported. The first technical assistance event was held in Nepal in March, and led to the formation of a technical level contact and advocacy group that has prioritized six key policy and technical issues to focus on in 2001. Partnership, training and technical assistance efforts will be linked in ways designed to reinforce the capabilities of key actors and to support policy and regulatory changes required for increased regional energy trade and cooperation. Interest in participation in SARI-E among public and private sector energy officials, as well as support from U.S. energy firms working in the region, has been strong. Anticipated results in FY 2001 include:
- Development of private sector plans and investments in infrastructure that facilitate regional energy exchange;
- Establishment or modification of policies, laws and regulations with private sector and civil society concurrence, to facilitate regional energy trade and cooperation;
- Broadened capacity of national regulatory agencies to support energy exchange among countries;
- Regional adaptation of best practices and standards that promote energy efficiency and improved commercial practices;
- Regional adaptation of best practices and standards that lead to improved rural energy services; and
- Increased participation of the private sector and civil society in sustainable regional energy development.
Performance and Prospects: South Asian governments and private sectors have responded positively to the SARI/Energy program. Representatives from both the public and private sectors agree that the time is opportune to approach energy development and trade from a regional perspective, in order to benefit from shared information, knowledge and experience. In linking SARI/Energy activities to ongoing USAID bilateral activities, as well as to other donor energy assistance, USAID expects the program to have a significant impact. The initial activities that launched regional energy transmission and energy regulatory body partnerships have already created forums where key technical people are learning from each other and from other regions of the world in order to construct the unique building blocks for regional energy cooperation and trade in South Asia.
Possible Adjustments to Plans: Starting in FY 2001, funds will be obligated and activities will be reported under the new regional objective "Encourage Economic Growth" (498-023).
Other Donor Programs: The World Bank, Asian Development Bank, and several bilateral donors are active in the energy sector in South Asia. However, their assistance is almost entirely bilateral in nature, assisting countries in areas ranging from technical assistance in regulatory and pricing issues to providing loans for upgrading and rehabilitation of domestic distribution and transmission systems. Although this bilateral assistance is essential to encourage domestic energy sector reform, it does not provide a forum for countries to discuss and resolve cross-border issues necessary to rationalize energy supply and distribution across the region. SARI/Energy is uniquely positioned to fill this gap. The SARI/Energy program will provide forums for energy sector actors to discuss policy and systems harmonization issues that need to be resolved, and to promote relationships and networks that foster the trust and confidence needed in the region to make decisions on energy trade. Thus the program's regional mechanisms complement other donors' efforts and USAID's own bilateral programs. Moreover, SARI/Energy moves energy development further toward trade that will have both economic growth and reduced greenhouse gas emissions benefits.
Principal Contractors, Grantees, or Agencies: Principal contractors and cooperators are the U.S. Energy Association (USEA), Nexant Consulting (a Bechtel subsidiary), Deloitte Touche Tohmatsu, Academy for Educational Development, Core International, Institute of International Education, and the National Association of State Development Agencies. Other expected partners will include the U.S. Chamber of Commerce and the Energy Information Administration of the U.S. Department of Energy.
Selected Performance Measures: The performance measures are still being developed. Preliminary measures include:
- Number of commercial documents drafted and regional gas assessments completed to facilitate infrastructure investment;
- Number of fora held and recommendations made to develop/modify laws, regulations and agreements to facilitate regional energy trade and private sector project development;
- Number of initiatives developed/adopted by regulatory bodies that support regional energy trade and development of projects with private sector participation;
- Number of processes/initiatives identified and addressed to facilitate harmonization of regional energy efficiency standards and practices;
- Number of best practices in rural energy delivery adapted to and implemented in more than one country;
- Cost of poor quality of service to economy and end-use sectors;
- Number of local/regional entities that promote energy sector reform;
- Number of cases where participants have utilized knowledge or skills gained from training towards advocacy of energy sector reform and adoption of best practices.
U.S. Financing
(In thousands of dollars)
Obligations Expenditures Unliquidated Through September 30, 1999 0 DA 0 DA 0 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 0 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Fiscal Year 2000 6,765 DA 58 DA 0 CSD 0 CSD 2,550 ESF 0 ESF 0 SEED 0 SEED 0 FSA 0 FSA 0 DFA 0 DFA Through September 30, 2000 6,765 DA 58 DA 6,707 DA 0 CSD 0 CSD 0 CSD 2,550 ESF 0 ESF 2,550 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA Prior Year Unobligated Funds 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Planned Fiscal Year 2001 NOA 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Total Planned Fiscal Year 2001 0 DA 0 CSD 0 ESF 0 SEED 0 FSA 0 DFA Future Obligations Est. Total Cost Proposed Fiscal Year 2002 NOA 0 DA 0 DA 6,765 DA 0 CSD 0 CSD 0 CSD 0 ESF 0 ESF 2,550 ESF 0 SEED 0 SEED 0 SEED 0 FSA 0 FSA 0 FSA 0 DFA 0 DFA 0 DFA The FY 2001 and future activities and funding related to this SO have been moved to SO 498-023.
 |
|||
Last Updated on: May 29, 2002 |
