1. Lessons Drawing from Evaluations Relating to PPPs
IEG and DAC Network
Private Sector Evaluations Workshop
Evaluation Support to Private Sector Development
18 June 2013 • OECD Conference Center Paris
Lessons Drawing from Evaluations Relating to PPPs
Lauren Hauck
Senior Evaluations Specialist
Independent Evaluation Department
Asian Development Bank
The views expressed here are those of the author and do not necessarily reflect the views or policies of the Asian Development Bank or its Board of Governors or the governments they represent.

2. Successful PPPs Require
Situation Analysis
Public and Private Sector Engagement
Clearly Documented Agreements
SUCCESS is about the result for the intended project beneficiaries
Outline:
Events and disasters in Asia
Climate and Disaster Trends Worldwide
Increasing Incidence/ Severity
Temperature and Precipitation anomalies
2012 significant climate /weather events
Increasing Risks for Asia
Disaster-risk reduction and management
Mitigation and Adaptation
Shifting to low-carbon path
Reverse increasing trend
Effective DRR management
Role of development banks: ADB

3. Case Study: (Cambodia) Power Transmission Lines Co., Ltd. (CPTL)
Photo credit: L. Hauck 2013

4. Situation Analysis: 2006
18% of total households in Cambodia have access to electricity
95% of electric power is from diesel power plant, isolated systems, not interconnected
Electricity prices are highest in the region
Power losses average 32% in rural areas
GOAL: start construction of the skeleton transmission system and finally to expand this system to cover the whole country with a sustainable supply at lower prices and reduced rate of losses
Source: EAC, Report on Power Sector of the Kingdom of Cambodia For The Year 2006, Phnom Penh, July 2007

5. Situation Analysis: 2006 Key Power Sector Agencies in Cambodia
MIME: Ministry of Industry Mines and Energy (est. 1992)
EDC: Electricité du Cambodge (became autonomous state utility 1996)
EAC: Electricity Authority of Cambodia (est as independent sector regulator)
PPP ENVIRONMENT: Clearly defined roles and goals, limited experience and resources, private sector resources required to meet stated goals

6. Situation Analysis: 2006
PPA signed by governments of Thailand and Cambodia to supply Banteay Meanchey, Battambang and Siem Reap through kV transmission system
EDC: Implementor for Cambodia
CPTL: 115kV transmission line and 115/22kV sub-stations under construction
CPTL is the first privately-owned power transmission line in Cambodia
Source: EAC, Report on Power Sector For the Year 2006

7. Map of Line Key Features
221 kilometer single circuit 115 kV transmission line
3x 115 kV/22 kV substations
Banteay Meanchey
Siem Reap
Battambang
1x 115 kV/22kV substation
Source: EAC, Report on Power Sector For The Year 2006
The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.

8. Public and Private Sector
EAC: issues licenses, sets operating standards, approves tariffs, offers support to licensees, monitors and reports results
EDC: generating, transmitting, distributing electricity in compliance with license throughout the Kingdom of Cambodia
CPTL: build-own-operate-transfer transmission line and substation to provide continuous power to northwest provinces
ALL THREE entities must perform for PPP to ) connect power to the end user; ) deliver tariff rates and quality; ) deliver scheduled payments
Source: EAC Report on Power Sector For The Year 2006; EDC Annual Report 2010

9. Licensee Illustration
Source: EAC Website, updated by EAC for Year The boundaries, colors, denominations, and any other information shown on this map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information.

10. GOAL: Reduce Losses
Source: EAC, Report on Power Sector For The Year 2006; EAC, Report on Power Sector For The Year 2011

11. GOAL: Reduce Prices - Prices shown for smallest- volume customers
2006
2011
- Prices shown for smallest volume customers
- Approximately Rls4000/US$1
Source: EAC, Report on Power Sector For The Year 2006; EAC, Report on Power Sector For The Year 2011

12. GOAL: Increase Coverage
Coverage also includes service levels: intermittent supply has become nearly continuous while serving more customers
Source: EAC, Report On Power Sector For The Year 2006; EAC, Report On Power Sector For The Year 2011

13. Above: Local Market; Below: ‘Old Market’
Photo Credit: L. Hauck, 2013

14. Interviews with End-Users
General public quite well-informed about the electricity supply. ‘It comes from Thailand;’ and all were able to state the rates paid per kWh
‘Electricity helps business to grow. [If it is] hot, dark, nobody come[s] in.’
The Grid ‘saves some money. It is cheaper than fuel for generation. Also quieter.’
Outages now are often scheduled; ‘they announce it by radio’ and ‘usually only 1-4 hours at a time.’
Source: L Hauck, Site Visit interviews, March 2013

15. Lessons From PPP Case Study
Situation and Risks Must be Understood by all parties
Clear Rationale for PPP Needed
Project has to be Part of Long Term Sector Development Plans
Clear Contracts and Deliverables Required
Appropriate Sharing of Tasks and Risks Among Parties Required
Long-term commitment to the PPP is Required

16. Conclusion
SUCCESS includes capacity building for the public sector, sustainable operations for the public and private sector, and quality services for the end-user
PPPs require many elements to align and the entire program of agencies and activities must be considered

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