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This section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.

 

 

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PPP Models for ERP

Introduction to the Models - Appendix C

In addition to the Project Guidelines developed, this Appendix lays out the different models for potential public-private partnerships (or PPPs) to generate emissions reduction credits (ERCs) from deploying technologies that reduce or remove emissions. These could also include activities that are part of larger infrastructure-type investments. ERCs in these models are expected to enable these projects to incorporate emission reduction or removal activities in the larger package while allowing them to either maintain their financial viability or recover their invest-ability, through the additional revenue streams from the sale of the credits.

The 12 models, as summarized in Table 1, are based on case studies across different sectors. They cover both existing and ongoing projects that have incorporated emissions reduction or removal activities into larger infrastructure projects, largely to improve their financial viability.

Table 1: PPP Models Detailed

#
Model
Applicable Methodology
Proposed PPP model
1MRT Energy Efficiency DeploymentMass Rapid Transit ProjectsExisting-Refurbish-User-Tariffs
2Rural ElectrificationElectrification of communities through grid extension or construction of new mini gridsNew-User-Tariffs
3LED Streetlight DeploymentDemand-side activities for efficient outdoor and street lighting technologiesExisting-Refurbish-Finance-Bulk-Fees
4Rooftop Solar InstallationRenewable electricity generation for captive use and mini-gridNew-Build-Bulk-Fees
5LED Lighting DeploymentDemand-side energy efficiency activities for specific technologiesExisting-Refurbish-Finance-Bulk-Fees
6E-Bus DeploymentBus rapid transit projectsNew-Refurbish-Finance-Bulk-Fees
7EV Charging Systems InstallationMethodology for Electric Vehicle Charging SystemsNew-Build-Finance-User-Tariffs
8Biodigester DeploymentReduced Emissions From Cooking And Heating – Technologies And Practices To Displace Decentralized Thermal Energy ConsumptionNew-Build-Finance-User-Fees
9Waste-to-PowerAvoidance of landfill gas emissions by in-situ aeration of landfillsNew-Build-Finance-Bulk-Tariffs
10Waste Treatment Facility InstallationAvoided emissions from organic waste through alternative waste treatment processesExisting-Build-Finance-Bulk-Tariffs
11Climate Smart Farming DeploymentAdoption of Sustainable Agricultural Land ManagementExisting-Bulk-Tariffs
12Reforestation ProgramAfforestation and reforestation of lands except wetlandsNew-Finance-Bulk-Tariffs

The models will start by identifying the infrastructure project and the potential ERC-generating activities to be deployed along with it. This will then lead to a proposed PPP model based on the dimensions in Table 2, based on the learnings from the case studies and the specific considerations for this permutation of ERC activity and wider infrastructure project. It will then describe the case study, including how it was structured and the impact achieved or targeted, before going into the summary business plan. The business plan will feature a reconstructed version of the basic forecasts of revenues and costs for both the ERC and non-ERC component of the project, based on the information available from the case study and additional desktop research.

Table 2: Public-Private Partnership Model Dimensions

Dimension
Attribute
Description
BusinessNewThe PPP can either result to the creation of a new entity or the take-over of and existing business
Existing
ConstructionBuildThe project company may be obliged to undertake all activities relating to the construction of a new asset which will differ from refurbishing already existing assets
Refurbish
Private FundingFinanceThe private-led project company may carry the obligation to raise financing for the project
ServiceBulkThe project company may be delivering services to a single entity in the case of “Bulk” or delivering directly to the consumers of the service in the case of “User”
User
RevenuesFeesThe revenue streams in a project may stem from fees paid by a single or limited number of off-takers or from tariffs paid by a large number of consumers
Tariffs

Models

MRT Energy Efficiencies Model for ERP Model 1 in the ERP Project Guidelines: MRT Energy Efficiency Deployment leveraging an Existing-Refurbish- User-Tariffs… more
Rural Electrification Model for ERP Model 2 in the ERP Project Guidelines: Rural Electrification leveraging a New-User-Tariff model.
LED Streetlight Deployment Model for ERP - for… Model 3 in the ERP Project Guidelines: LED Streetlight Deployment for efficient outdoor and street lighting… more
Rooftop Solar Installation Model for ERP Model 4 in the ERP Project Guidelines: Rooftop Solar Installation leveraging a New-Build-Bulk-Fees model.
LED Streetlight Deployment Model for ERP - for… Model 5 in the ERP Project Guidelines: LED Streetlight Deployment for Specific Technologies leveraging an Existing-… more
E-bus Deployment Model for ERP Model 6 in the ERP Project Guidelines: E-Bus Deployment leveraging a New-Refurbish-Finance-Bulk-Fees model.
EV Charging Systems Installation Model for ERP Model 7 in the ERP Project Guidelines: EV Charging Systems Installation leveraging a New-Build-Finance-User-Tariff… more
Biodigesters Deployment Model for ERP Model 8 in the ERP Project Guidelines: Biodigesters Deployment leveraging a New-Build-Finance-User-Fees model.
Waste-to-Power Model for ERP Model 9 in the ERP Project Guidelines: Waste-to-Power leveraging a New-Build-Finance-Bulk-Tariffs model.
Waste Treatment Facility Model for ERP Model 10 in the ERP Project Guidelines: Waste Treatment Facility leveraging a Existing-Build-Finance-Bulk-Tariffs model…
Climate Smart Farming Deployment Model for ERP Model 11 in the ERP Project Guidelines: Climate-Smart Farming Deployment leveraging a Existing-Bulk-Tariffs model.
Reforestation Program Model for ERP Model 12 in the ERP Project Guidelines: Reforestation Program leveraging a New-Finance-Bulk-Tariffs model.
Note/s:

This section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.