Regional Leadership Forum Advancing Sustainable Hydropower in Latin America and the Caribbean

1. World Bank
MEASURING
SUSTAINABILITY IN
HYDROPOWER
DEVELOPMENT
Rikard Liden
Senior Hydropower Specialist
The World Bank
Regional Leadership Forum
Rio de Janeiro
November 13, 2012

2. Sustainable Energy for All
Universal energy
access (electricity
and modern
cooking fuels)
Double the global Double the
rate of renewable energy
improvement in share in global
energy efficiency energy mix
Advisory group co-chaired
by Jim Yung Kim, President
of the World Bank
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3. Hydropower in the World Bank 2002-2012
• The Bank’s strategic support has gone from being
inactive in 2002 to one of active promotion of
sustainable hydro in global forums in 2012
2000
1800
• IBRD/IDA supported 1600 Hydropower Commitments
hydro with a total 1400
IBRD/IDA (US $Million)
1200
lending of $5.75 billion 1000
and a total installed or 800
600
rehabilitated capacity 400
of 8.75 GW 200
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
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4. Hydropower constitutes an opportunity for development, livelihood
improvement, poverty alleviation and environmental protection
Market access Job creation
Agriculture Aquaculture
Energy
Conservation Public health
& Education
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5. Focus on sustainable hydropower
• Facilitation: Fostering a productive dialogue
between the various actors involved in complex
multipurpose projects, especially on
international waters
• Promoting Sustainability: Setting up
economic, financial, technical, environmental
and social arrangements in a way that deliver
long-term sustainable benefits at both the
national and local levels
• Flexible Financing: Providing long-term
predictable resources in low-income and high
risk places to the public and private sectors, as
well as partial risk guarantees
• Measuring Results: Providing support for
monitoring and implementation to help
countries actually achieve their objectives and
get value for money from their investments
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6. Focus on sustainable hydropower
• Facilitation: Fostering a productive dialogue
between the various actors involved in complex
multipurpose projects, especially on
international waters
• Promoting Sustainability: Setting up
economic, financial, technical, environmental
and social arrangements in a way that deliver
long-term sustainable benefits at both the
national and local levels
• Flexible Financing: Providing long-term
predictable resources in low-income and high
Results: Providing support for and private sectors, as
risk places to the public monitoring
well as partial risk guarantees
and implementation to help Providing support for
• Measuring Results: countries
actually achieve theirand implementation to help
monitoring objectives and get
value for money from theirachieve their objectives and
countries actually investments
get value for money from their investments
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7. Measuring Sustainability
Monitoring and evaluation becomes more complex
• Power production and transmission
• Revenue management and poverty
alleviation
• Resettler welfare and livelihood
• Ancillary infrastructure
• Watershed and environmental
management
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8. How do we ensure sustainability?
▪ Technical design review
▪ Safeguards procedures
Preparation
▪ Panel of experts
▪ Thorough economic assessment
▪ Supervision visits
Implementation
▪ Monitoring & Evaluation for a limited time
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9. Experience from WB projects
Complicated to judge sustainability on short-term measurements
Measuring level of livelihood is easy;
measuring sustainability of livelihood
depends on what you mean by
sustainability (inter-generational?)
• Is current consumption of resettlers
drawing down savings?
• Are physical resource bases for
resettlers (fish, forest, agri) being
managed in a relatively long-term
Rural
way? Are there systems in place to Poverty
Line
manage them? (Target)
• Will roads continue to provide
access to markets?
• Will health care continue to help
households stay productive? 8

10. Experience from WB projects
Sustainability requires commitment from multiple sectors
Sustainability means most often to establish new norms and
institutions outside of the developer’s control
• Are there resources to maintain
ancillary infrastructures once
handed over
(roads, clinics, schools, etc.)?
• Are Govt revenues allocated to
agreed eligible sectors (e.g. primary
education, basic health, rural
roads, environment)
• Will auditing requirements be
enforced?
• Will water and environmental
management be enforced?
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11. Measuring Sustainability
Main recommended approach
• Define outcome based targets that are measurable
• Define the period over which they should be measured (must
be medium to long-term)
• Measure them at the right time
• Judge sustainability based on
a) consumption trend (must be level or climbing)
b) net assets (assets minus debt) steady or rising,
c) sources of income (not based on subsidies or project
hand-outs; preferably based on a diversity of sources)
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12. Current areas WB explores to ensure sustainability in Hydro
IHA Hydropower Sustainability Assessment Protocol
Integration of ICT in monitoring and evaluation
Improved adaptive contract management
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