Transcript Clean Technologies and Local Rural Development “It’s the Organization…” Presented at Experts Group Workshop on Technology Transfer, CTI, UNFCCC Patrick D’Addario Fiorello H.

Clean Technologies and Local Rural Development
“It’s the Organization…”
Presented at Experts Group Workshop on
Technology Transfer, CTI, UNFCCC
Patrick D’Addario
Fiorello H. LaGuardia Foundation
Bangkok, Thailand
June 28, 2007
DIRECTOR-GENERAL UNITED NATIONS RELIEF AND REHABILITATION
AGENCY (UNRRA), 1946
COPYRIGHT: LAGUARDIA & WAGNER ARCHIVES
THE FIORELLO H. LAGUARDIA FOUNDATION,
FOUNDED 2001
The Foundation focuses on three major areas:
US-Italian investment in community-based sustainable
development projects in developing countries
US investment in southern Italy in areas of sustainable
agriculture, biotechnology, and renewable energy
Academic exchange between Italy and the US with an
emphasis on biotechnology, agriculture, and medicine
MOSAICO Network
Global Environmental Institute
Beijing, China
Environment, Energy, & Enterprise Ventures
New Delhi, India
Instituto Eco-Engenho
Maceio, Brazil
Fiorello H. LaGuardia Foundation, NY, USA
Energy & Security Group, Washington, DC, USA
Mountain Institute’s Peak
Enterprise Program (TMI), China
Small-Scale Infrastructure
Development Fund (S3IDF), India
MOSAICO Overview
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What is MOSAICO?
Mobilizing sustainable agriculture, infrastructure and capital, MOSAICO is a
network of organizations in developing countries seeking to increase
incomes, reduce poverty, & protect the environment in rural communities.
MOSAICO operates in Brazil, India, China.
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Our Mission:
MOSAICO links poor rural farmers/enterprises to national and international
markets by providing financial, institutional, & technical support usually only
afforded to larger deals/players.
MOSAICO does this by mobilizing resources– human, financial, institutional–
in support of local sustainable agriculture and infrastructure projects.
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Our Vision:
Prosperous communities with minimum negative environmental impacts.
MOSAICO Approach
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What Do We Do?
MOSAICO works with cooperatives, associations, self help groups, and
private ventures to provide institutional/technical support, business
planning, and training services to develop sustainable agriculture and
infrastructure ventures.
MOSAICO also works with local financial institutions (FIs) to evaluate
risks/benefits, design appropriate products/services, and bring ventures
to scale.
In markets where required, MOSAICO supports the development of local
financing facilities to provide seed capital and financial guarantees for
small agriculture ventures and energy, water, and sanitation
infrastructures.
In parallel, MOSAICO uses its local project preparation capabilities and
market knowledge to support the development of investment vehicles
targeting larger-scale sustainable infrastructure projects and enterprises.
MOSAICO: Building Markets from
the Ground Up
Identify
Partners/Project
Opportunities
Support
Organizationall
Development
Conduct Pilot
Projects
Complete
Commercial &
Financial
Chains
Replication
Document
Best Practices/
Procedures
MOSAICO Partners
Tech Asst &
Business
Incubation
Professional &
Technical
Training
Basket 1A
Renewable Energy
& Organic
Agriculture
Enterprises
Local Banks
and
Financial
Institutions
Financial Risk
Mitigation
Basket 1B
Small Renewable
Energy
and Energy
Efficiency
Infrastructures
Basket 2
Fund Facilitation
Replication through partner-developed marketing and technical assistance businesses,
cooperatives, producers associations, and other multipler groups
S U S T A
I
N A B L E
E N T E R P R
I
S E S
PROJECTS
BRAZIL
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Bottling the peppers for sale
In Brazil, MOSAICO has
brought a dignified life within
the reach of subsistence
farmers in drought-plagued
Alagoas, in Northern Brazil.
The project has
demonstrated that with the
proper organization, training,
equipment, and financing,
poor farmers can increase
their incomes by 500%, even
with limited access to water.
BRAZIL
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Hydroponic Harvest
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Also in Alagoas, the Team is conducting
business planning for AMercSol, a
distribution/marketing company representing
small farmers in the region.
AMercSol will assume responsibility for
identifying interested farmers, organizing
them into ventures, & providing
technical/commercial training to cultivate
high-value products.
Access to financing for agricultural inputs and
irrigation systems, and for marketing their
products is another key component.
A lead product for AMercSol is the hydroponic
production of pepper in vinegar –a high
demand, fashionable condiment in Maceio.
Using locally developed structures, recycled
PVC soft drink bottles, and otherwise toxic
rice husks, the hydroponic systems have
brought vitality to the community & attracted
local finance.
SMALL HYDRO FUND - 1
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LGF supported the development of a groundbreaking 200 million reals (ca. US $100 M) equity
fund for development of small hydropower
projects.
Registered with CVM, the Brazilian Securities and
Exchange Commission, the Fund is unique as it is
the first Brazilian RE Fund of its size, and 80% of
its capital is subscribed by Brazilian pension funds.
Fund developers also secured an added 700 million
reais in debt financing from BNDES, the national
development bank. The Fund’s first 13 projects, in
the states of Mato Grosso (MT) and Minas Gerais
(MG), total nearly 200 MW.
Construction has begun on 5 MT plants, totaling
93MW to be on-line in 2008. As run-of-river plants,
they will have minimal environmental impact.
Under this project, LGF supported an independent
legal review of the PPAs & fund share purchase
agreements.
Finally, LGF is assisting Globobank to identify
investors from OECD countries interested in
investing an additional 25 million reais (ca. US $12
M) in the fund.
The projected return is inflation + 13%.
Small Hydro Fund (2)
Location: Rio Juruena – MT
Power Purchase Agreement (PPA 20 anos):
ELETROBRÁS/PROINFA (Brasilian Government)
EPC Contracted, including Insurance to reduce hydrologic and geologic risks.
The project fits the BNDES (Brazilian Development Bank) funding criteria.
Estimated Investment: R$ 485 million
AM
― SHP* Telegráfica 30 MW
― SHP Rondon
13 MW
― SHP Parecis
15,4 MW
― SHP Cidezal
17 MW
― SHP Sapezal
16 MW
― TOTAL
91,4 MW
*SHP Small Hydropower Plant
PA
Telegráfica
Rondon
Parecis
Cidezal
Sapezal
TO
68 kms.
GO
RO
MS
BIO OILS - BACKGROUND I
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Castor Bean Oil is a raw material in
the production of over 400 products,
including paints, varnishes, plastics,
and lubricants.
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The castor bean plant, grows in arid
conditions. Its cultivation is minimally
mechanized and does not require
pesticides, fertilizers or irrigation to be
viable.
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The castor bean can be cultivated
along side traditional food crops.
BIO OILS - BACKGROUND II
► In
biodiesel program, centralized processing
and purchasing have resulted in prices that
are often not cost - covering.
► Delays in program start up created excess
supply, further depressing prices.
► Small producers bear burden of delivery
► Loss of by-products: fertilizer, animal feed
► Assisting a subsistence farmer to produce a
commodity is not doing him/her a favor.
BIO OILS – THE ASSOCIATION
► Landless
FARMERS VOTING TO ESTABLISH APRAI
farmers were
sold land by the state of
Ceara
► The state agricultural
extension service,
EMATER-CE worked with
the farmers on cultivation
of castor bean plant
► With National
Environmental Fund and
Avina Foundation, LGF
established APRAI
Bio Oils – The financial analysis
► LGF
performed financial analysis with
purchasing beans from farmers at double
what they receive from biofuels program
The project has a 20% IRR
ASJA, an Italian green generator is supporting
Completion of business plan, will invest 30-40%
Of capital for plant.
responding to anticipated restrictions on nonsustainable sources of biofuels
BIO Oils – Government Help
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Does the government help?
1.
Financing land purchase – Ceara
Donating land for the processing facility –
Itatira
Donating Storage Building – Ceara
Debt financing – Banco do Nordeste
Technical Assistance – EMATER - CE
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3.
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BIO Oils - Conclusion
► Sustainable
livelihoods for farmers
► Creation of local jobs in processing
► Diversified output: local, nat’l, int’l mkts.
► At a minimum, a global-warming offset as a
carbon sink
► Potential further CO2 offset as fuel for
transportation, stationary motors, cooking,
and potentially, biogas.