The Imperative of Overcoming Energy Poverty in Africa: an Action Plan e-Parliament Energy Hearings Kenya, November, 2006 Paivi Koljonen, World Bank

2 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

3 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 The near-term crisis compounds the challenge

4 An Action Plan for Energy Access in Africa 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 Electricity for Growth Powering the MDGs Meet Basic Needs Objectives5 Implementation Tracks

5 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

6 Prospectus Targets Investment Requirements Financing Plan Government as syndication ‘sponsor’ Lead syndicator + $ Capacity- building … 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 +

7 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

8 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

The Imperative of Overcoming Energy Poverty in Africa: an Action Plan e-Parliament Energy Hearings Kenya, November, 2006 Paivi Koljonen, World Bank