UNIDO enlists top global financier GEF in pioneering alt-power push

The UNIDO focal point office in Colombo has successfully marshalled a US based top tier global fund for its pioneering bamboo initiative leading to large scale bio-mass alternative energy material growth in Sri Lanka. “We are highly encouraged by the strong co-financing support of the Global Environment Fund (GEF) headed by Jeffrey Leonard, whose firm now has $1 billion invested in dozens of energy-related projects across the globe.

The fact that GEF is one of the most experienced and successful private equity firms dedicated exclusively to investments in the energy and environment sectors gives Sri Lanka’s first ever bamboo processing initiative by UNIDO a strong head-start,” said UNIDO Head Nawaz Rajabdeen.

Rajabdeen announced this with regard to next Wednesday 19 September launch of Bamboo Processing Initiative, a UNIDO Country Program which aims at developing a bamboo supply chain and product industry in the country, for the first time in history of Sri Lanka’s informal bamboo sector. Minister of Industry and Commerce Rishad Bathiudeen is scheduled to launch the event in which Delhi based Antonios Levissianos, UNIDO Deputy Representative for South Asia, and Kentaro Aoki (UNIDO associate Expert in agricultural engineering), will take to the speaker’s podium.

“The initial support funds for this project was billed at US $ 20 million but it has now been boosted to $ 24 million due to the promise and expanded duration of the project. “There are no large scale bamboo plantations in Sri Lanka either by the public or private sectors and currently bamboo cultivation is done in the country by informal sectors in small scale, except the cultivations under the Riverine Bamboo Project of Mahaweli Authority of Sri Lanka. The Sri Lanka Forestry Master Plan of 1995 identified that protection of bamboos of the country ‘to be a priority.’ This reinforces the opportunity to develop this industry, and gives an additional benefit,” Rajabdeen said.  

“We are looking at seven year-long project to upgrade this sector to make it internationally competitive and to be a provider for alternative biomass energy. Among the beneficiaries are rural households which harvest bamboo from the countryside and river banks. More importantly, we believe that bamboo can strongly generate biomass which will help to reduce our energy costs. We can also be able to address fuel wood demand for the industrial sectors which has shown a steady increase during the last few years” Rajabdeen added.

As an emerging source of biomass energy, bamboo is rapidly gaining ground. On 15 February this year, the Verified Carbon Standard, a global benchmark for carbon, in a historic decision, issued carbon credits for planting bamboo to “The Bamboo for Africa program.” VCS is the most highly regarded international certification standard for carbon reduction projects. Estimates show that the requirement for biomass energy in Sri Lanka is expected to increase to 9.7 million tonnes by 2020.

Delhi based Antonios Levissianos, UNIDO Deputy Representative for South Asia, with such experts as Kentaro Aoki (UNIDO associate Expert in agricultural engineering), Sujit Das (UNDIO’s Indian Technical Officer), will be arriving in Colombo for the project launch scheduled on 19 September. The public sector co-financers of the Project are the Ministry of Industry and Commerce, the Mahaweli Authority of Sri Lanka, the Forest Department of Sri Lanka, UNIDO, and from private sector are Touchwood Investments PLC and Bamboo Resources Development (Pvt.) Ltd.

The bamboo plant sends out 35 per cent more oxygen than all other plants into atmosphere. About 14 varieties of bamboo are grown in the country across all climatic zones of Sri Lanka, including in the arid areas. Kalutara is the region with highest bamboo growth. Sri Lanka’s current bamboo cultivation could be valued at Rs. 220 mil (US $ 1.99 mil) with an estimated coverage extent of 5166 Ha of which 2500 Ha are grown by the Mahaweli Authority. The Authority cultivates them in marginal tea lands and river banks of the Mahaweli zone.