WASHINGTON, May 31, 2012 – The Board of Executive Directors of the World Bank today approved an International Development Association (IDA*) grant in the amount of US$18.3 million to assist the electricity sector in Guinea (Conakry).
This assistance to a sector considered to be a priority by the Guinean Government represents additional financing that will bring the budget of the Electricity Sector Efficiency Improvement Project (PAESE) to US$30 million, taking into account initial World Bank financing in the amount of US$7.2 million and a grant of US$4.5 million from the Global Environment Facility.
According to Moëz Cherif, a Senior Energy Economist at the World Bank, “the electricity sector in Guinea faces serious challenges stemming mainly from the wide gap between supply and demand resulting from a lack of maintenance and investment in the electricity infrastructure over many years.”
This additional grant will be used mainly to purchase distribution equipment and meters for the Kaloum area (downtown Conakry) and spare parts for the Garafiri hydroelectric plant. It will also allow the Guinean Electricity Company (EDG) to benefit from technical assistance to improve its commercial management and support the energy savings pilot program.
The PAESE is one component of a strategy aimed at the recovery of the Guinean electricity sector over the next three years, approved last January and supported by Guinea’s technical and financial partners.
“The aim of the PAESE is to support the efforts of the Guinean Government to improve the technical, commercial, and operational efficiency of the electricity sector through the funding of critical investments as well as capacity building. This should have an impact on the financial viability of the sector and the quality of services provided by the Guinean Electricity Company,” added Mr. Cherif.