Transcript Paivi Koljonen

The Imperative of Overcoming
Energy Poverty in Africa:
an Action Plan
e-Parliament Energy Hearings
Kenya, 18-19 November, 2006
Paivi Koljonen, World Bank
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
2
The near-term crisis
compounds the challenge
Electricity supply shortages reducing GDP growth by
up to 4% p.a.
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–
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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
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–
Emergency generation measures
Rehabilitate systems & improve management efficiency
3
An Action Plan for Energy
Access in Africa
Objectives
Electricity for
Growth
Powering the
MDGs
Meet Basic
Needs
5 Implementation Tracks
1)
Increase coverage for enterprises & households
via electrification programs
2)
Enhance generation capacity, including via
regional projects
3)
Provision of energy services for key public
facilities such as schools and clinics
4)
Equip unconnected households with affordable,
modern lighting
5)
Push for cleaner, sustainable cooking & heating
technologies
4
Success will require effective
partnerships…
Country Ownership
Donor Commitment
Costed, realistic
scale-up plans
Programmatic, coordinated & sectorwide approach
Credible selffinancing
commitments
Champion regional
approach
A strategic - not
prescriptive approach that
enables a range of
outcomes
Scaled up, more
predictable funding:
~$2 billion to ~$4
billion p.a.
Build client capacity
to achieve results
5
… 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
+
Capacitybuilding
Financing Plan
6
We now need to move
forward on several fronts
1) Build donor support for the new approach
2) Demonstrate country ownership & commitment
3) Address the near-term crisis
4) Start work on the sector syndications, emphasising
regional integration
7
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
8
The Imperative of Overcoming
Energy Poverty in Africa:
an Action Plan
e-Parliament Energy Hearings
Kenya, 18-19 November, 2006
Paivi Koljonen, World Bank