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EAP Gender Workshop, Nha Trang Vietnam, February 2010

SHINING A LIGT ON WOMEN Results from the Power to the Poor Rural Electrification Pilot in Lao PDR . EAP Gender Workshop, Nha Trang Vietnam, February 2010 by Helene Carlsson Rex & Jie Tang World Bank. Outline. Context – Rural Electrification In Laos Power to the Poor (P2P) Pilot

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EAP Gender Workshop, Nha Trang Vietnam, February 2010

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  1. SHINING A LIGT ON WOMENResults from the Power to the Poor Rural Electrification Pilot in Lao PDR EAP Gender Workshop, NhaTrangVietnam, February 2010 by Helene Carlsson Rex & Jie Tang World Bank

  2. Outline • Context – Rural Electrification In Laos • Power to the Poor (P2P) Pilot • Gender Sensitive Approach • Scaling-up

  3. Two Development Stories from Lao PDR Strong economic growth and rapid integration with regional trading partners… • Real GDP growth: Above 6% p.a. since 2000 • Reduced Poverty incidence • 1992/93: 46% • 2002/03: 33.5% But uneven distribution of growth • Large urban-rural disparities • Low school enrolment rate in rural areas • Gender disparities, particularly in remote areas and among ethnic groups: • Maternal mortality 405:100,000 • Female literacy rate: 61% (vs. male: 77%) • Gender Development Ranking: 130 (out of 177)

  4. Lao PDR – Rural Electrification The electrification rate in Lao PDR: • 19% of all households in 1995 • 58% in 2007 Urban and Rural Difference: • Urban: close to 100% • Rural Areas: remains scarce (approx 35%) especially among poorer and female headed households

  5. Lao PDR – Rural Electrification • However, only 60-80% of households in villages with access to the network choose to connect. • Who are the 20-40% of households not connected to the EdL network? • The poorest households in the village • Female Headed Households • Households below the poverty line • Some families just above the poverty line • Households in temporary houses

  6. Why are households not connecting to the grid? # 1 barrier is ability to pay up-front connection costs: around $100-150 Financial assistance to the poor is needed

  7. Key Gender Issues The majority of female headed households are poorer than average and as a result have few (if any) available resources to pay the connection fee. Without support they are unlikely to be able to access electricity when the opportunity comes. Yet, the benefits of improved access to electricity particularly to women are significant, in terms of: • Reduction in tedious tasks such as water • Evening activities made possible • Flexibility in organizing household activities • Income-generating potential • Greater security

  8. Female headed households are poorer on average, according to survey 2007 Source: Lao PDR House Wiring Program: Final Report

  9. Case: Power to the Poor Eye openers: • Many households cannot afford to connect (US$100 connection fee) • Female-headed households: 8% of households but 43% of “poor households” • Non-electrified households spend US$ 3-5 per month on alternative fuels • Average electricity bill rural household US$ 1-1.5 per month

  10. Power to the Poor (P2P) Basics • Objective:To increase household connection rates in villages under the REP from some 60% to 85% to meet GOL objective of 90% electrification in 2020 • Instrument: Customer credit 700,000 kip (about $80) to help finance installation costs, to be paid back during 2-3 years, interest free • Original Pilot: In 25 villages in Champasak Province, finalized in Jan 2009, since then scaled-up • Gender Focus: Gender informed design, participatory methods & gender sensitive eligibility criteria

  11. Power to the Poor • Initial design was funded by Gender Action Plan • REP/AusAID to Provide Financial Resources to the selected poor households for the up-front connection charges: • providing about $80 as interest-free credit for the up-front charges, • allowing households to pay back EdL the $80 in monthly installments (about $2-3 per month for 36 months), • The repayment terms have been calculated on to ensure a positive cash flow from day one of electrification. • establishing an revolving fund at EdL with the paybacks to support more poor households

  12. P2P – Gender Sensitive Eligibility Criteria & outreach materials Eligibility criteria: Power to the Poor pilot will target villages that are already electrified • Among non-electrified households, all female headed- and single parent households will be automatically eligible for support • For other households poverty criteria applies • A household is eligible for support if it has housing that is safe to electrify AND meets at least ONE of the poverty criteria OR is female / single parent headed AND safe to electrify Information materials: All information and dissemination materials for the pilot has been done in a gender sensitive fashion, such as: • Highlighting the benefits of electricity for women • Making the consultative process gender inclusive, by for example scheduling meetings at times when women are available

  13. Process of Implementation

  14. Outreach materials

  15. P2P Field Work in Champasak Province, Sept. 2009

  16. Villagers sign up for P2P

  17. P2P implementers and program participants posing for a photo at the end of the day in Kenghuakhongvillage

  18. Results in pilot villages, from rapid assessment (May 2009) • 537 newly electrified households of which 68 WERE FEMALE HEADED • An overall increase in the connection rate from 78 PERCENT TO 95 PERCENT • Among female headed households the connection rate increased even more, from 63 TO 90 PERCENT • The marginal cost to provide access to electricity was about $80 PER HOUSEHOLD with the P2P compared to about $600 PER HOUSEHOLD WITH NEW GRID EXTENSION PROJECTS • P2P is very cost effective

  19. P2P: Roll-out & Scale-up • First phase: P2P Project in Laos was piloted in Champasak (November 2008 to February 16, 2009) 20 Villages, 537 poor households. • Second phase: • March 2009 covers 3 Provinces Khammouane, Savannakhet and Champasak • Progress as on October 2009, the installation wiring house had been completed on 2629 households (out of 2806 eligible hholds) in 132 villages. • Electrified before P2P= 80.91% Electrified after P2P = 97.38% • Third phase: • Replicating in two additional provinces (Attapeu & Saravan) • Two Workshops to plan for national scale-up

  20. P2P: Roll-out & scale-up • As part of REP2, AusAID has agreed to contribute $600,000 to scale up the P2P pilot • EdL is already scaling-up, but TA will be needed to ensure sustainability • The pilot is being rolled out in five other provinces and targets 1,800 more connections by the end of 2009 and 8,000 by the end of 2010 • Assuming an average of 5.2 members per family, this program has the potential to reach 50,000 direct beneficiaries by the end of 2010.

  21. Some initial lessons: • There are several entry points to addressing gender issues in energy projects • Addressing gender issues requires a slightly different focus and approach - but it is not “rocket science” • Commitment from the WB team and counterparts to “go the extra mile” is essential • Additional resources are needed, but a small amount of money can go a long way - GAP funds played a catalytic role • In the end, addressing gender issues constitutes a smart way of making a project more effective and its impact more inclusive.

  22. Thank You!

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