Alfonso Blanco Bonilla EXECUTIVE SECRETARY

Ministerial Mandate XLVI / D / 514Meeting No. 1FOLADE's Working Group

Virtual mode May 2017

Financial management body for the implementation of OLADE's projects

Agenda

No. Meeting No. 1FOLADE's Working Group

1 Opening Remarks

Executive Secretary of OLADE

2 Purpose of the meeting:

3 Presentation on reformulation of FOLADE's proposal

4 Presentation and brief explanation of perspectives on the initiative to create a financial organization for OLADE

FOLADE's WorkingGroup

5 Presentation, analysis and approval of activities' plan

OLADE- FOLADE's Working Group

6 Conclusions and commitments OLADE- FOLADE's Working Group

CHAPTER III: OBJECTIVES AND FUNCTIONS

Article 3.-

i) The Organization will have the following objectives and

functions: To promote the creation of a financial body to carry out energy and energy-

related projects in the Region.

CHAPTER VIII GENERAL PROVISIONS

Article 33.- OLADE will use the cooperation of agencies

whether existing or to be created, specialized in any

energy field within the Latin American area."

Mandate of the Lima Agreement

1973-77

Latin American Energy Bank

- Additionals remarks to the quotas.

2009 ( Havana)

- Financial Mechanis of OLADE

-Account member of OLADE's budget.

2015 (Tarija)

- MM Commitment in support of the management of

the SP before Cooperation

Agenciesns and International

Banking.

2016 (Quito)

- Latin American Energy Fund

-Conforming Working Group.

- Analyze feasibility.

Background and progress to 2017

Mandate of Meeting of Ministers

Ministerial Decision XLVI/D/514

Quito, 11/25/2016

REITERATES

• Its need to comply with the provisions of the Lima Agreement with regard to the creation of an intergovernmental financial body for the realization of energy projects in the region.

APPROVES

• The Formation of a working group to promote a legal, technical and financial feasibility study in relation to the creation of this body.

• Presentation to the next Counci of Experts of the report of the study by the Working Group.

• Delivery to the XLVII Meeting of Ministers of diagnosis and proposal of roadmap.

INSTRUCTS

• Implementation of efforts by the Permanent Secretariat to assist in the activities and efforts that lead the members of the Working Group.

Reformulation of proposal presented

at XLVI Meeting of Ministers

Project implementation agency attached to OLADE

- It raises funds

- It manages resources

-It maintains budgetary autonomy.

- It assures independent heritage.

Take advantage of OLADE's organizational structure and human

resources

- It does not imply establishment of parallel governance to that existing in OLADE.

- It does not duplicate efforts of the Member Countries.

Simplification of entity creation process

- It Analyzes feasibility and national procedures for the creation of the entity.

- It provides approval by the most expeditious routes possible.

- It values the realization of a lobby that expedites the creation process.

Conformation FOLADE's Working Group

Argentina

Chile

Mexico

Panama

Dominican Republic

Uruguay

Venezuela

Feasibility diagnosis

Roadmap

Report Meeting of Ministers

Legal, technical and financial feasibility

analysis

Legal

Identification of type of intergovernmental legal

personality with membership to OLADE.

Feasibility analysis and legal bases for the

creation of a fundraising and fund management

agency for project implementation.

Technical

Type of projects subject to financing.

Administrative support procedures.

Parameters for allocating resources by projects.

Modalities of analysis of needs and priorities by

project.

Budgetary

Capitalization options.

Mechanisms for attracting and managing

financial resources.

Exclusive funds for implementation of

energy projects.

Budget autonomy.

Sequence of roadmap actions

Analysis of real possibilities of creation of an entity with its own legal status, attached to OLADE and its action under the current conditions of international financial cooperation.

Research of ways and procedures required under the national legislation of OLADE's MC for the materialization of the proposal

Preparation of a Report and draft Ministerial Decision with concrete actions to create the ideal entity for the purposes envisaged.

Feasibility diagnosis

Management and

validation

Presentatio of the

diagnostic and

roadmap to the MC

WORK GROUP FOLADE Permanent

Secretariat of OLADE

Results and commitments Meeting No.

1 FOLADE's Working Group

Research of ways and procedures required under the national legislation of OLADE's MC for the materialization of the proposal

1• Distribution of topics by country.

2• Definition of activities and deadlines until

the Meeting of Ministers (December 2017).

3• Guidelines for presentation by the Working

Group on the of Experts (June 2017).

www.olade.org