Tackling key institutional bottlenecks
WASHINGTON, June 30, 2017— The World Bank approved today a Euro 54.9 million ($60 million equivalent) credit to support Senegal’s efforts in strengthening the governance and management of the energy sector and enhancing the legal and regulatory framework of the Information and Communication Technology (ICT) sector to promote competition, investment and equitable access.
This First Multi-Sectoral Structural Reform Development Policy Operation (DPO), out of a series of three, will focus on reforms in the energy and ICT sectors, which the Senegal Emerging Plan (PSE) identifies as foundational blocks of competitiveness and inclusive growth in Senegal.
“In both sectors, the ultimate objective of the reforms is to expand supply and lower cost for improved and more equitable access to the services, through key reforms to address some of the key policy and institutional bottlenecks, and setting the sector on a path to significant improvements in the medium term,” said Louise Cord, World Bank Country Director for Senegal.
“In the energy sector, the series of the DPO will support Senegal on addressing long standing issues related to SENELEC corporate governance, and the sector financial arrangements and regulation, with a view of transforming SENELEC into a well-run and financially viable utility company within a well-regulated sector,” said Paolo Zacchia, World Bank Lead Economist for Senegal.
It will also support institutional and policy reforms in electricity generation, for more efficient and more transparent planning and implementation of generation expansion, with a view to ending the sector’s chronic exposure to oil price shocks, and – over time – significantly reducing the cost of power generation and reducing the carbon intensity of power generation. Regarding the rural areas, the DPO aims to promote rural access to electricity by ensuring enhanced affordability and availability of modern electricity services in rural areas of the country that are today only partially served.
The World Bank will support reforms boosting the ICT and facilitating access to users and Internet service provider (ISP) by improving governance of the ICT sector, more specifically the overall sector strategic and legal framework, and sector regulation.
The budget support will also assist the Government of Senegal and stakeholders to removing barriers to investment and creating competition in the internet broadband market across all segments of the broadband infrastructure (access, backbone, and international connectivity). Finally, the series will be focused on facilitating equitable access to ICT services by reforming and implementing effectively the universal access policy.
For more information, please visit: https://www.worldbank.org/en/country/senegal
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