WASHINGTON, November 26, 2013/African Press Organization (APO)/ – IFC, a member of the World Bank Group, signed an advisory agreement with the government of Guinea to structure and implement a public private partnership for Electricité de Guinée, the national power distribution company. The mandate will be implemented in parallel with the World Bank’s power sector recovery project, providing a huge boost to Guinea’s efforts to improve EDG’s performance and attract significant new investment in the country’s power sector.
Guinea has identified the challenges in the power sector as a key impediment to the country’s economic growth. Access to electricity is very low: 17 percent in urban areas and 3 percent in rural areas. The challenges in the power sector are mainly as a result of poor performance of electricity distribution under EDG, which suffers from a range of problems including infrastructure, maintenance of assets, blackouts, theft and losses, billing and collection rates, and poor financial performance.
Guinea’s Ministry of Energy is working closely with the World Bank Group to structure and implement a management contract whereby a private operator will improve EDG’s performance. Today’s agreement confirms that IFC’s PPP Advisory Services will be the advisor on the operator selection process. IFC will assist the Government of Guinea in identifying qualified companies and awarding the management contract for EDG.
Kerfalla Yansané, Minister of State for Economy and Finance of the Republic of Guinea said, “We have signed important agreements including an advisory services contract with IFC, which is ready to help us develop public private partnerships, including the national electricity utility Electricité de Guinée.” His remarks were made at the end of a two-day development partner and investor conference under the theme: Guinea is Back.
Jean Philippe Prosper, IFC Vice President for Sub-Saharan Africa, Latin America and the Caribbean, said “An efficient power sector with increased investment and improved management in distribution is a critical building block for a revitalized Guinean economy that attract new investment and create jobs. IFC is absolutely committed to maintaining a leading role in the country to ensure that private investors make a difference.”
Since 1989, IFC has been at the forefront of advisory services in all infrastructure sectors including power, water, agribusiness, transport, irrigation, health and education. IFC has worked on more than 300 private-sector participation transactions worldwide, many in challenging regions or countries which have difficulty attracting investors.
International Finance Corporation (IFC) – The World Bank