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Lesson
A rational tariff policy is essential for improving the financial viability of a distribution utility. Two tariff revisions (in 2016 and 2021) helped improve the financial viability of Azerishiq's distribution-strengthening projects. Although the upgrade of distribution systems is still not fully financially viable, an improving financial internal rate of return (into positive territory) illustrates the benefits of lifting tariffs toward full cost recovery.

Project Number: 42401-014
Project Name: Power Distribution Enhancement Investment Program (Multitranche Financing Facility)
Report Date:
Lesson
The cost categories required to be reported in the audited program financial statements (APFS) need to align with the categorization at appraisal so as not to cause problems in reporting. PLN faced difficulty in estimating the financing charges during implementation at appraisal stage. In addition, PLN raised a concern on the disclosure provision regarding APFS due to confidentiality requirements. The cost categories reported in the APFS were not aligned with the categorization used at appraisal, due to which changes to reporting formats were needed.

Project Number: 50016-001
Project Name: Sustainable Energy Access in Eastern Indonesia—Electricity Grid Development Program
Report Date:
Lesson
Shifts in the types of projects can affect the financing products that may be supported under the clean energy financing (CEFP) platform. At project design, the CEFP was planned to provide three types of financing products: entrusted loans, guarantee funds, and lease financing facilities. During implementation, only entrusted loans were utilized. The other two financing products were not used because of shifts in the types of projects which did not require guarantees and lease financing.

Project Number: 48452-004
Project Name: Shaanxi Accelerated Energy Efficiency and Environment Improvement Financing Project
Report Date:
Lesson
Stakeholder expectations and reliance on concessional financing have a negative effect on the market upon completion of the project. Until the loan is fully used up, the market seldom finds innovative methods to improve viability without such concessional conditions. Therefore, by design, the project shall encourage the market to evolve and innovate to sustain without any concessional financing.

Project Number: 50373-002
Project Name: Rooftop Solar Power Generation Project
Report Date:
Lesson
Despite the market already being available to cater to the project, the TA intervention resulted in a much smoother implementation that may have been difficult without a TA. Such TA components could improve project effectiveness and the good practices introduced would better the overall market. Thus, similar TA projects are encouraged for greenfield projects of this nature.

Project Number: 50373-002
Project Name: Rooftop Solar Power Generation Project
Report Date: