THE FASTEST PRACTICAL SOLUTION TO ONE OF THE WORLD’S TOP PROBLEMS OUR MISSION: The Global LPG Partnership (“GLPGP”) assists developing countries to plan, finance and implement national-scale availability and use of liquefied petroleum gas (“LPG”)1, to help prevent the 4 million annual deaths, severe forest loss, and vast impact on women’s and children’s time caused by societal dependence on solid fuels for cooking. 1. THE GOAL 2. Enable the transition of one billion people to clean LPG use for household cooking by 2030. Accomplishing this is a top priority of the United Nations (“UN”) system and many developing country governments. 3. THE PROBLEM Over 2.8 billion people cook with solid fuels, with enormous negative consequences: 3.1. Household Air Pollution (“HAP”) from cooking with solid fuels like charcoal and firewood kills over 4 million people annually2—more than malaria, AIDS and tuberculosis combined. 3.2. Harvesting wood for cooking fuel is a leading cause of forest degradation and deforestation in Africa and Asia. Governments in countries like Uganda, Ghana and Nigeria predict that vital forest areas have only 8-10 years of trees remaining. 3.3. The search for fuel wastes human capital. Rural women and children spend up to 6 hours a day gathering fuel wood3. 4. THE FASTEST SCALABLE SOLUTION TO THE PROBLEM: LPG 4.1. The evidence shows that LPG is the fastest, most scalable solution to this problem. Alternative clean cooking solutions like natural gas, biofuels and electrification are too costly and too slow to implement to have a significant impact quickly and at large enough scale. Efficient biomass cookstoves, while an improvement over traditional stoves and fires, can neither deliver the health and environmental impacts that can be achieved with LPG nor realize the desired vision of modern energy. Fuel subsidies and international aid are well recognized as unsustainable for the long term. 4.2. In recognition of these realities, developing countries are actively developing policies and strategies for increasing access to, and use of, LPG, a goal that is aligned with Sustainable Development Goal 7 and UN Sustainable Energy for All (“SEforAll”) Goal 1, to achieve universal energy access by 20304. For example, Prime Minister Modi of India in 2016 launched his government’s ambitious program to spend over US$ 1 billion to expand LPG use to at least 90% of the population—about 1.17 billion people—by 2019. 5. THE SOLUTION CATALYST: THE GLOBAL LPG PARTNERSHIP 5.1. GLPGP is a PPP formed in 2012 under the UN SEforAll and announced by the UN SecretaryGeneral at the Rio+20 Conference. 5.2. GLPGP was formed to aggregate and deploy the global resources required to help developing countries transition large populations rapidly to LPG on a commercially sustainable basis. 5.3. GLPGP’s growing list of collaborating partners includes public sector institutions such as the 1 LPG,

a by-product of oil and gas production and refining, comprises propane and/or butane gas, which liquefy under moderate pressure. Bio-LPG is becoming increasingly available. 2 World Health Organisation 2014, burden of disease from Household Air Pollution for 2012. 3 World Bank ESMAP and GACC, 2015. The State of the Global Clean and Improved Cooking Sector. 4 International Energy Agency, World Energy Outlook 2012

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European Union (EU), the World Bank and the German development bank, KfW, and UN agencies such as UNDP; NGOs and foundations such as the UN Foundation; and leading international private sector LPG organizations such as Total (France), Kosan Crisplant (Denmark) and Energy Transportation Group (USA) (see Annex 1 for full list). 6. What We Do 6.1. GLPGP partners with host country governments and relevant stakeholders to create national LPG plans for rapid, sustainable scale-up of, LPG infrastructure, distribution and demand. GLPGP also will finance and implement key elements of those scale-ups, to transition the maximum viable populations to LPG for cooking. 6.2. The top priority of GLPGP and its partner countries is to define the policy and regulatory reforms necessary to create the enabling environment for development of a viable, scalable, sustainable LPG ecosystem. 6.3. Where enabling environments are created, GLPGP then aggregates and invests blended capital from the public and private sectors in a coordinated manner to: 6.3.1. Build necessary large-scale LPG infrastructure that neither the public sector nor private sector in developing countries have been able to build alone; 6.3.2. Facilitate local distribution business expansions in support of LPG market growth; 6.3.3. Unlock consumer demand for LPG through financial support for consumer acquisition of LPG equipment via microfinance institutions (MFIs) and other local consumer credit intermediaries; and 6.3.4. Aggregate and coordinate national and regional LPG investment projects, to improve their economies of scale, financing efficiency and implementation risk. 7. Why We Are Unique 7.1. GLPGP aggregates the scarce expertise and global capital needed to help countries plan, implement and finance major scale-up of LPG availability and usage. 7.2. The GLPGP leadership is the only group of experts with deep and broad experience in partnering with governments to create national LPG plans. KfW and the EU determined that GLPGP senior staff were the key persons uniquely qualified to lead this LPG initiative. 7.3. GLPGP’s founding principles foster the trust between host country governments and GLPGP. These principles include: (i) focus on domestic social benefit and engaging local stakeholders; (ii) GLPGP governance balancing public sector and private sector interests as well as donor and host-country interests; (iii) competition neutrality; (iv) evidence-based and market-driven solutions; and (v) transparency. To date, 18 countries have requested GLPGP to partner in creating large-scale transition to LPG for their populations. 8. Why Countries Request GLPGP Assistance Developing countries formally request GLPGP assistance to achieve the three main prerequisites for making LPG widely available and affordable: 8.1. Planning and implementation of adequate governmental policies, regulations and regulatory enforcement; 8.2. Implementation knowledge and expansion capital that create a critical mass of LPG supply, infrastructure and distribution systems quickly and sustainably; and 8.3. Knowledge and capital to empower developing country consumers, who cannot otherwise afford LPG fuel, to pay the upfront cost of appliances to use LPG. 9. Current Scope of GLPGP Activities 9.1. GLPGP has engaged with the governments of eight developing countries (Kenya, Uganda, Tanzania, Ghana, Cameroon, Rwanda, South Africa, Nigeria) for planning of policy and 9 March 2017

2

9.2.

9.3. 9.4. 9.5. 9.6.

9.7.

9.8.

9.9.

regulatory reforms and investments. In Ghana, Cameroon and Kenya, new national LPG policies, laws and regulations have been completed and submitted for cabinet or parliamentary approval. These governments’ goals are to increase LPG use to 50-60% of their populations from 10-15% today. In Cameroon, GLPGP and the Government completed that country’s LPG master plan and are commencing the implementation and financing of the plan. In Kenya, GLPGP is partnering the state-owned National Oil Corporation to plan, implement and finance large-scale LPG expansion to meet the government’s national LPG usage goal. GLPGP is assisting India to create enabling environments and pilot programmes for major rural expansion of the national LPG system. GLPGP is collaborating with the Economic Community of West African States (ECOWAS) to develop a regional LPG initiative, whose reforms and investment projects will serve all of West Africa. GLPGP is evaluating the timing and needed scale of assistance to ten additional countries (Bangladesh, Benin, China, Cote D’Ivoire, Guatemala, Guinea, Kashmir, Niger, Peru, and Senegal) where GLPGP assistance has been requested, but not yet prioritized or resourced by GLPGP. To date, GLPGP has identified and defined approximately US $1 billion of potential LPG scaleup investments concentrated in three first-mover African countries, and approximately US $1 billion of potential LPG scale-up investments in the additional active countries. A detailed chart of GLPGP country-level status is shown in Annex 2.

10. GLPGP Impact Schedule 10.1. Overall schedule: Transition 1 billion persons from traditional fuels and kerosene to LPG by 2030,5 to avert approximately 1.3 million HAP-related annual deaths and 6 million hectares of annual forest loss (about 40% of today’s global total). 10.2. Near term schedule (2017-2020): Carry out effective, quantifiably impactful investments and interventions to scale up the LPG ecosystems in an initial 5-8 pilot countries and transition an initial minimum 75 million people to LPG (approximately US$ 1-2 billion in aggregate investment), and to perform preparations in an additional 5-10 countries. 10.3. Medium term schedule (2021-2023): Based on replicable learnings from successes in initial focus countries, expand activities to approximately 20-25 additional countries, with an estimated US$ 8-10 billion of cumulative investment. 10.4. Long term schedule (2024-2030): Expand global activities to achieve the self-sustaining transition of 1 billion persons to LPG (and/or successor fuels like bio-LPG), with an estimated US$ 15-20 billion of cumulative investment.

5 LPG is a long-term transition solution until greener/more efficient energies for household cooking, such

become sufficiently viable, cost-effective and scalable to serve large, energy-poor populations.

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as bio-LPG or piped natural gas,

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Annex 1. Key GLPGP Collaborating Partners Public Sector Organizations · Governments of Ghana, Cameroon, Kenya, Uganda, Tanzania (initial pilot country partners) · European Union – Infrastructure Trust Fund* · Danish Industrialization Fund for Developing Countries* · KfW (German government development bank)* · The World Bank* · African Development Bank · UN Sustainable Energy for All (SEforAll) · UNDP · ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE) · Netherlands SNV (Ghana) · Clean Air Asia Academic / Research Institutions · US Centers for Disease Control and Prevention · US National Institutes of Health · University of Pennsylvania, Wharton Business School · University of British Columbia · University of Liverpool · Emory University · London School of Hygiene and Tropical Medicine · Sri Ramachandra University, Chennai · University del Valle de Guatemala · Johns Hopkins University · Duke University · Douala General Hospital (Ghana) · Centre for International Climate and Environmental Research (CICERO) NGOs / Social Impact Organizations · UN Foundation · Global Alliance for Clean Cookstoves (GACC) · OPEC Fund for International Development* · African Alliance for Clean Cooking · The New Venture Fund · Total Impact Advisors · Self-Employed Women’s Association (SEWA) Private Sector Organizations (including State-Owned Enterprises) · Total* · Kosan Crisplant* · Energy Transportation Group*6 · Petroleum Institute of East Africa · National Oil Company of Kenya · Dalberg Global Development Advisors · E+Co / Persistent Energy Partners*7 · Bernard Schulte Ship Management · Friedrich Scharr KG* · World LPG Association 6 7

Operates the GLPGP secretariat. * Provider of financial support.

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Annex 2. Status of GLPGP activities by country Country*

2. LPG Ecosystem 3. LPG Investment Comments Reform / Preparation Remediation Bangladesh GLPGP and World Bank developing terms of reference for co-funded reform process partnership with the government Cameroon Underway Rural/peri-urban National LPG Policy • National LPG • Rapid pace of LPG MFI pilot and Regulatory • Subnational LPG Master Plan GLPGP-governmental Roadmap coordinated completed and evaluation study by Univ. prepared for Q1 planning from July of Liverpool commenced 2017 in partnership by GLPGP completed approved by the 2015 onward with Afriland First and approved by the Q2 2016 with CDC Government in • MFI pilot will be Bank Government in funding October 2016 independently (see Comments) October 2016 • Value-chain study • Detailed investment evaluated by Univ. of completed 2016 planning starting Q1 Liverpool 2017 • USD 491 mm of valuechain investments • GLPGP aiding estimated Government in SEforAll investment planning China National Development and Rural/mountain NDRC requested Reform Commission LPG distribution GLPGP to partner to (NDRC), Institute of pilots established by develop a national International Energy local operating LPG policy and requested GLPGP to partner companies; roadmap to study LPG expansion partnerships with feasibility in three provinces GLPGP under discussion Economic ECOWAS Regional Concept note on regional Community of Centre for Renewable LPG initiative being West African Energy and Energy prepared by GLPGP and States Efficiency (ECREEE) ECREEE (ECOWAS) working with GLPGP to prepare (see Comments) Ghana Completed Expected Q2 2017 • New LPG policy • Joint SEforAll Action • Preliminary study and accepted by Cabinet Plan development for report Q3 2016 LPG completed 20112012 • Main demand study draft • Reform process report expected to resume • Governmental delays Underway following national since Feb. 2015, from: elections of Dec.  Deregulation of • Value-chain study 2016 and resulting petroleum sector commenced Q3 2015 (see Cabinet changes, per  Split of Energy Comments) Ministry of Ministry into Power • USD 257mm of value Petroleum (see and Petroleum chain investments Comments) Ministries (MoP) estimated  MoP personnel changes re: LPG • Innovation prize programme for unsafe LPG cylinder repurposing completed Nov. 2015 India Revised national rural Discussion on women’s • Input into Indian federal GLPGP-SEWA pilot programme to LPG distribution cooperatives for LPG government rural LPG promote, educate scheme publicized by distribution underway study using national and distribute LPG Government (May with MoPNG to support consultants (Q4 2015) in rural villages 2016), with GLPGP pilot programme • GLPGP and SEWA under the PMUY recommendations expansion in Gujarat, and completed feasibility provided to Minister scale-up in multiple states studies in Gujarat (2015) national scheme of Petroleum and invited Univ. of

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1A. LPG Market Assessment / Feasibility Study GLPGP and World Bank developing terms of reference for co-funded studies

1B. LPG Pilot Programmes

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Country*

Kenya

Nigeria

Rwanda

South Africa

Tanzania

Uganda

1A. LPG Market 1B. LPG Pilot Assessment / Feasibility Programmes Study British Columbia and launched in CDC/PHI to partner in September 2016. pilot project evaluation Completed • Initial USD 341mm of value-chain (supply and demand side) investments identified • Government/National Oil Company of Kenya (NOCK) goal set to transition 45% of population to LPG over 3 years (2017-19) • GLPGP and World Bank developing Terms of Reference for joint LPG projects

2. LPG Ecosystem Reform / Remediation

Underway • Major new enforcement initiative • New LPG policy • New LPG law before parliament • New regulations expected mid 2017

3. LPG Investment Preparation

Comments

Partnering NOCK and others to plan, prepare and finance USD 341mm of supply and demand side investments

• Findings of high black market activity (an investment and sustainability barrier) from initial assessment study led to Kenya undertaking major regulatory and enforcement reforms that GLPGP recommended • Positive effects from reforms started end2015, enabling GLPGPgovernment/industry investment preparation work to resume Studies performed by In discussion as National LPG Nigeria Minister of • National LPG Nigerian private LPG sector part of major expansion programme Environment (MoE) expansion to be reviewed by GLPGP Intended Nationally programme to to be planned and requested GLPGP serve and federal Energy Advisory Determined financed in as LPG leader on become a major Group (see Comments) Contribution partnership with national Energy Advisory INDC under (INDC) initiative to UNFCCC, with GLPGP; aggregate Group re (i) an LPG UN Framework GLPGP as planning investment estimated INDC and (ii) MoEConvention on at USD 500 million Ministry of Petroleumand financing Climate Change GLPGP joint planning partner (UNFCCC) (see of a major new national • Subject to Nigerian Comments) LPG expansion Government programme securing co-funding for joint activities In preparation Main planning group Rwanda requested pre-formed by GLPGP to partner; GLPGP and awaiting government government; presigning of formal kickoff workshop protocol held Q3 2015 GLPGP strategic Government requested advice requested by GLPGP to provide Ministry of Energy MOU for joint planning (2015 and 2016), now of LPG sector reforms implementing; MOU and investment projects in discussion Detailed project development in 2017 subject to government establishment of new quasi-parastatal LPG importation entity USD 12mm of potential LPG microfinance Uganda has prioritized LPG production investment pilot in discussion reforms of its biomass identified fuel ecosystem

All activities led/facilitated and supported by GLPGP except where otherwise noted. A blank box indicates that the corresponding activity has not yet commenced. *Additional countries where GLPGP assistance has been sought, but not yet prioritized or resourced by GLPGP: Benin, Cote D’Ivoire, Guatemala, Guinea, Kashmir (Pakistan side), Niger, Peru, Senegal.

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