1 / 9

NATURAL GAS DISTRIBUTION FOR LOW INCOME FAMILIES

NATURAL GAS DISTRIBUTION FOR LOW INCOME FAMILIES. Ballena. Riohacha. Sta. Marta. Barranquilla. Cartagena. Valledupar. Sincelejo. Ayacucho. Montería. Cerromatoso. Bucaramanga. Medellín. Cusiana. Bogotá. Cali. Apiay. PROFILE OF PROMIGAS.

masao
Download Presentation

NATURAL GAS DISTRIBUTION FOR LOW INCOME FAMILIES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. NATURAL GAS DISTRIBUTION FOR LOW INCOME FAMILIES

  2. Ballena Riohacha Sta. Marta Barranquilla Cartagena Valledupar Sincelejo Ayacucho Montería Cerromatoso Bucaramanga Medellín Cusiana Bogotá Cali Apiay PROFILE OF PROMIGAS • 40 years of experience in the transport and distribution of natural gas • Transports 51% of natural gas consumed in Colombia • Ownership interest in 5 transmission and 5 distribution companies 1,300,000 connected users 2,200,000+ connected users

  3. THE TARGET SECTOR • Target Sector: • Strata 1 & 2 • 80,000 households yet to be connected • Caribbean Coast • Highest poverty levels in Colombia • 5 to 7 member households • Monthly income <US$168 min. wage • The Problem: • Gas mains exist near 48% of 80,000 homes • Gas is affordable, but high switching costs Households cannot afford US$370 connection fee, 220% of monthly income

  4. THE GPOBA PROJECT • US $5 million to provide grants to connect 35,000 households • Provides Colombian government with a platform for replication • Builds upon a €1 million PPP project with Dutch Government • Output Definition • Strata 1 or 2 household (at least 50% in Strata 1) • New connection • Service used at the connection for at least 3 months • Sufficient for operation of kitchen gas stove • Stove provided to household at no cost Focus on access vs. consumption subsidies (new in Colombia) Expands scope of “output” beyond connections to use of gas for cooking

  5. PROJECT PROPOSAL Figures in dollars are based on a tax exchange of $2,300 pesos per dollar.

  6. KEY BENEFITS • Financial • Annual savings of 50% of one monthly income (incl. connection payments) • Once connection is paid, annual savings of 80% of one monthly income • LPG and Electricity prices are 1.4x and 4x the price of gas, respectively • Environmental • 34 hectares of forest or mangrove swamp preserved • Natural gas reduces polluting emissions • Health: Reduction of fire hazards and smoke-induced respiratory diseases

  7. SUPERVISION: KEY INDICATORS • Level of defined “output” achieved, e.g. number of connections made • Breakdown of beneficiary households by strata • Breakdown of total households in service area by strata • Annual reports on service quality • Average monthly consumption per household • Average household expenditures on alternative fuels prior to gas connection • Average residential tariff for households • Total project costs and average cost per household Measuring impact will facilitate scaling up and replication

More Related