EAEF Brief update 21/07/06, Pekka Skytta

EC contribution starts unwinding financing joint energy projects in ASEAN region under the EC-ASEAN ENERGY FACILITY (EAEF) Programme

EC Programme to co-finance energy projects is unwinding after four and half years of implementation. The Programme ends 28 February 2007, but all projects under EAEF, however, have to conclude by 12 December 2006. EAEF inventory includes 67 projects under four facilities and ten projects for Instituional Strengthening. Out of them 32 projects under facilities and 4 institutional projects continue to October – December 2006. EC contribution value was endorsed at EUR 16.5 million for facilities and EUR 2 million for institutional strengthening. The total number of received project proposals amount 180. The total number of companies involved in EU and ASEAN is more than 500.
 
15 contracts for projects from the 1st Call for Proposals (CfP) in 2002 were signed by ASEAN Centre for Energy (ACE) and endorsed by the EU Delegation in Jakarta by November 2003. The implementation of the first projects started in May 2003. The funding for the projects started in June 2003. The value of EC co-financing for the first batch of 15 projects is EUR 2.88 million. The list and schedule of projects is on ACE/EAEF web-site. All projects have concluded, but the clearance of final reporting is ongoing.

16 projects from the 2nd CfP were endorsed by the EC Delegation in Jakarta for co-financing by EAEF. This second Call for Proposals was launched on 12 July and closed 16 October 2003. It resulted in 32 proposals. The selection process started immediately on 17 October 2003 and was finalised in February 2004. The endorsement for 16 projects, EC contribution value EUR 3.62 million was received from the EU Delegation in Jakarta on 13 February 2004. The contracting process started immediately. One project dropped out in the contracting phase. Thus 15 projects are contracted from this CfP, EC contribution value EUR 3.2 million. Thirteen projects have ended and two continue towards the last year of EAEF.

20 projects from the 3rd CfP were endorsed late November 2004 by the EC Delegation in Jakarta for co-financing by EAEF. The call was launched 15 June and closed 21 September 2004. 49 proposals were received. In the selection process finally 20 projects were endorsed by the EC Delegation on 17 November 2004. The EC contribution value is EUR 6.43 million. All projects were contracted by end August 2005. 7 projects have concluded technically and 13 projects continue towards October - December 2006.

EC and ASEAN Secretariat amended in December 2004 the existing Financing Agreement for EAEF allocating EUR 3.5 million more for projects under facilities, facilitating EAEF to take care of some Follow up activities from Cogen III Programme beyond 2004 and extending the validity period of the Financing Agreement.
The Amendment facilitated EAEF to launch the 4th Call for Proposals 28 March 2005 to 27 June 2005. Maximum EC contribution value was EUR 4.1 million for up to 25 projects. At the closing date 50 proposals were received. EC-ASEAN joint Selection Committee worked 28 June to 11 July 2005 to recommend a new set of projects for EC co-financing. EC endorsed in August 2005 19 new projects, EC contribution value EUR 4,061,899.52 from the 4th CfP for implementation. At the end of February 2006 the final contracted EC contribution value is EUR 3,583,751.54 for 17 projects, when two projects dropped out in contracting phase.

The EC-ASEAN Energy Facility (EAEF) is a programme of cooperation between the European Communities (EC) and the Association of Southeast Asian Nations (ASEAN) to facilitate partnerships between ASEAN and European organisations in developing specific joint projects in the energy sector. The objectives are: 1) to increase the security of energy supply of ASEAN countries and indirectly of Europe; 2) to increase economic cooperation between European Union and ASEAN countries; 3) to improve environment of local and global levels; and 4) to facilitate the implementation of the ASEAN Plan of Action for Energy Cooperation 1999-2004, and subsequently its continuation for 2004-2009. EAEF was launched in March 2002 with duration of five years until February 2007.

Four different categories of projects called “facility” are available. This includes: market awareness; institutional frameworks; feasibility studies and demonstration projects. Consistent with the ASEAN Plan of Action for Energy Cooperation, the Programme focuses on electricity interconnection, gas pipeline interconnection, clean coal technology, energy efficiency, and renewable energy.

The ACE, based in Jakarta, facilitates the implementation of the programme. A Project Management Unit (PMU) contracted by the EC with Dansk Energy Management A/S (DEM) and  housed in the Centre manages the overall implementation and serves as the Secretariat for a Programme Steering Committee (PSC) and a Selection Committee.

The total value of the Programme is estimated to be 38.5 million EUR including the estimated individual project partner contributions in the amount of 16.5 million EUR. The commitment of the EC is fixed at 21.5 million EUR as grant. ACE makes in-kind contributions to the Programme at a counter value of 0.51 million EUR.

A project must be formulated by a group of at least three partners (two from the EU member countries and one ASEAN public or private entities, list of eligible countries will be on the Call for Proposals documents) to be submitted to PMU. A group of independent experts forms the Selection Committee, which objectively assesses each project and gives then a recommendation of the projects to be awarded a grant to the PSC. The PSC gives the approval or disapproval for each project that is further endorsed by EC. Contract for each project is signed between ACE and the project proponent. 67 energy projects are covered by the facility during five years.

Previous years EAEF worked in close co-operation with another EC financed programme, the EC-ASEAN Cogen Programme Phase 3 (Cogen 3), which promoted the use of cogeneration from biomass, coal or gas as fuel. This was achieved through partnerships between industries in ASEAN countries and European suppliers. This programme ended in 2004, and EAEF included activities in 2005 to monitor, follow-up and disseminate the results of eight projects which were implemented under Cogen 3 Programme with the assistance of existing institutions and networks. This was to ensure the sustainability and replicability of results achieved under the EC-ASEAN Cogen 3 programme. Four Country Coordinating Offices (Malaysia, Philippines, Singapore and Thailand), Framework Contractor to coordinate this work were assigned to complete these Cogen 3 Follow-up Activities by 15 January 2006.

Under Institutional Development component one contract has been implemented and another is ongoing under 2004 budget. Three more tenders were launched early March 2006 and contracted in June-July 2006. This component financed also the above mentioned Cogen 3 Follow up activities besides six planned specific projects, of which one has ended, four ongoing.

Thus all in all EAEF will cover in five years implementation time 67 contracts under facilities and ten under Institutional component.