WASHINGTON, December 14, 2017 — The World Bank today approved an International Development Association (IDA)* credit of $50 million equivalent and IDA grant of $25 million equivalent to improve the financial sustainability of the energy sector in Burkina Faso, enable private sector participation in the energy sector and diversify the energy mix, and strengthen tax collection and public procurement processes.
Today only one out of five households is connected to the national grid in Burkina Faso. This second and final operation in a programmatic series of two Development Policy Financing operations will help increase access to electricity and enhance household living conditions over time.
It will also strengthen tax collection and public procurement processes. Concurrently, the ability of Government to collect additional revenue will help fund more infrastructure and services. “The efficiency gains achieved through faster and more transparent procurement procedures will increase the value for money of public spending and improve the expected benefits for the population,” said Cheick Kante, World Bank Country Manager in Burkina Faso. “This operation will also help Burkina Faso to gradually shift the energy mix towards renewable electricity sources, notably solar. These sources are cheaper than current biomass and fuels.”
Burkina Faso has an ambitious investment and reform plan aimed at accelerating economic growth and reducing poverty, Plan National de Développement Economique et Social, 2016-2020 (PNDES). The proposed operation will support Burkina Faso’s efforts by reducing the fiscal burden of the power sector, enabling private sector participation in least cost energy supply options and diversifying the energy mix towards renewables, and creating the fiscal space necessary to finance its ambitious investment program and improving the efficiency of its spending.
In this context, the proposed operation supports the first and second pillars of the Country Partnership Strategy for FY13-FY16, focusing on accelerating inclusive and sustained economic growth, and enhancing governance to deliver social services more efficiently. The proposed operation is also an integral part of the Country Partnership Framework under preparation for FY17-FY21.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.5 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $18 billion over the last three years, with about 54 percent going to Africa.