The Imperative of Overcoming Energy Poverty in Africa: an Action Plan eParliament Energy Hearings Ke

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The Imperative of Overcoming Energy Poverty in
Africaan Action Plane-Parliament Energy
HearingsKenya, 18-19 November, 2006Paivi
Koljonen, World Bank
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Africa lags behind on energy access because of
country and donor constraints

• 500 million in sub-Saharan Africa lack access to
  electricity
• Governments limited will and capacity to roll
  out access programs
• Sub-optimal policies, regulation and planning
• Operational limitations weak capacity
• Inadequate donor response
• Ad hoc interventions, driven by donor priorities
• Financing inadequate and unpredictable

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The near-term crisis compounds the challenge

• Electricity supply shortages reducing GDP growth
  by up to 4 p.a.
• Natural causes such as drought
• High oil prices
• Degraded systems emerging from conflict
• In parallel with long-term response, a package of
  measures over 3-4 year timeline needed
• Emergency generation measures
• Rehabilitate systems improve management
  efficiency

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An Action Plan for Energy Access in Africa
Objectives
5 Implementation Tracks

• Increase coverage for enterprises households
  via electrification programs
• Enhance generation capacity, including via
  regional projects
• Provision of energy services for key public
  facilities such as schools and clinics
• Equip unconnected households with affordable,
  modern lighting
• Push for cleaner, sustainable cooking heating
  technologies

Electricity for Growth
Powering the MDGs
Meet Basic Needs
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Success will require effective partnerships

• Country Ownership
• Costed, realistic scale-up plans
• Credible self-financing commitments
• A strategic - not prescriptive - approach that
  enables a range of outcomes

• Donor Commitment
• Programmatic, co-ordinated sector-wide approach
• Champion regional approach
• Scaled up, more predictable funding 2 billion
  to 4 billion p.a.
• Build client capacity to achieve results

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realized via a flexible sector syndication
approach
Government sponsors preparation, advised by a
lead syndicator
Prospectus presents credible investment plan for
scale-up, over 6-8 year time-frame
Syndicator works with donors private sector to
fill financing gap
Prospectus
Government as syndication sponsor
Targets



Investment Requirements
Lead syndicator
Capacity-building
Financing Plan
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We now need to move forward on several fronts

• Build donor support for the new approach
• Demonstrate country ownership commitment
• Address the near-term crisis
• Start work on the sector syndications,
  emphasising regional integration

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Summary

• Business-as-usual ? Africa will continue to lag
  behind in energy access
• A higher level of commitment from donors and
  countries, working together, is needed
• Sector syndication a flexible approach to
  scaling up, building on rigorous sector plans
• Need to contain the near-term crisis in parallel

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The Imperative of Overcoming Energy Poverty in
Africaan Action Plane-Parliament Energy
HearingsKenya, 18-19 November, 2006Paivi
Koljonen, World Bank