World Bank Group Focuses on Sustainability at 2015 World Hydropower Congress in Beijing
“Affordable hydropower is critical as we work toward increasing access to electricity for the 1.3 billion people who live without it,” IFC Executive Vice President and CEO Jin-Yong Cai said at the opening session of the 2015 World Hydropower Congress held in May in Beijing.
About 1,000 participants attended the congress, where 15 representatives of the World Bank Group presented and contributed to discussions on the future of hydropower—including new financing options, regional cooperation, and environmental and social sustainability.
“We want to see more sustainable hydropower development in Lao PDR and will continue to use the private sector to grow our hydropower industry,” said Viraphonh Viravong, Vice Minister of Lao’s Ministry of Energy and Mines.
Viravong was one of more than 20 World Bank Group-sponsored delegates to give a presentation at the congress, along with others from Nepal, Pakistan and Vietnam, and other countries. Sponsored delegates shared experiences from their respective countries on the opportunities and risks of hydropower development.
Charles Feinstein, Director of the Bank Group’s Energy and Extractives Global Practice, delivered a talk on the critical link between water and energy, where hydropower plays a central role. Other experts also contributed to sessions on environmental sustainability. Rikard Liden, Senior Hydropower Specialist in the Bank Group’s Global Water Practice, talked about identifying and managing climate risks in hydropower development. Pravin Karki, Senior Hydropower Specialist, discussed the importance of sediment management, and Garo Batmanian, Lead Environment Specialist, spoke about integrating conservation into hydropower development.
“Passion, perseverance, and patience are needed to achieve sustainability,” said Raghuveer Sharma, Chief Investment Officer for IFC. “Private sector involvement in hydropower development builds confidence and shortens project development periods.”
Morgan Landy, Director of Transaction Risk Solutions at IFC, led a panel on new financing options for hydropower development and introduced InfraVentures – IFC’s $150 million global infrastructure project development fund. Jessica Farmer, IFC Principal Investment Officer based in New Delhi, elaborated on the fund in a later session.
Boosting environmental and social standards is key to the World Bank Group’s objective of improving the sustainability of hydropower development. With a wide range of assessment tools and standards on the market—from IFC’s Performance Standards to the World Bank’s safeguards and the Hydropower Sustainability Assessment Protocol—developers have many options to consider for increasing the potential of their projects.
“A project that doesn’t take into account environmental and social standards cannot be successful,” said Pablo Cardinale, Principal Environment Specialist. “We would like to see more clients use the tools available to them.”
Kate Lazarus, Senior Operations Officer for IFC’s Mekong Hydro Program, led a session demonstrating the importance of regional cooperation and sharing benefits and costs. As financiers invest in hydropower development in countries outside their own, regional drivers need to be balanced with local needs to ensure that communities and the environment benefit.
Going forward, Cai said, IFC will focus on supporting cross-border hydropower projects—where the electricity generated is sold across borders for both national and regional benefits.
