Burkina Faso - Energy Sector Reform Support Programme (PARSE)

Project Summary

Approval Date	18 Jul 2018
Signature Date	28 Aug 2018
Planned Completion Date	30 Dec 2021
Last Disbursement Planned Date	30 Dec 2021
Sovereign / Non-Sovereign	Sovereign
Sector	Multi-Sector
DAC Sector Code	11330
Commitment	U.A 10,000,000
Status	Completion

Project General Description

The Energy Sector Reform Support Programme (PARSE) in Burkina Faso is a continuation of the Energy Sector Support Programme (PASE) financed by the Bank in 2015 through an energy crisis response budget support (CRBS) to the country. PARSE’s main objective is to create conditions for inclusive access to energy in Burkina Faso. PARSE will be implemented in the form of a multi-tranche sector budget support (SBS) programme covering the 2018 and 2019 financial years. It will be financed by a UA 15 million ADF loan. In keeping with the Bank’s policy on programme-based support operations (PSOs), disbursement will be made in two respective tranches of UA 10 million and UA 5 million, subject to fulfilment of a number of conditions precedent. The programme comprises two complementary components: (i) Improve the Energy Sector Regulatory and Investment Management Framework; and (ii) Support the Enhancement of Energy Sector Financial Governance and Promote Energy Inclusion. The measures contained in the two components will contribute to creating the conditions needed to increase public and private investments in the sector, which are essential for inclusive access to energy.

Project Objectives

PARSE’s main objective is to create conditions for inclusive access to energy by establishing a sector regulatory and management framework that is attractive to private investors and increasing investments in energy in rural areas. More specifically, the programme will contribute to: (i) improving the sector legal and institutional framework; (ii) strengthening the governance of key sector entities; (iii) establishing a framework conducive to public and private investment; and (iv) increasing energy investments in rural areas.

Beneficiaries

The direct programme beneficiaries are the reform implementation entities, i.e. the Ministry of Energy, the Ministry of Finance and Development, the Ministry of Industry and Trade, SONABEL, SONABHY, ARSE and ABER. The indirect beneficiaries are private sector operators, especially micro-, small-, and medium-sized enterprises whose activities heavily depend on energy, and operators wishing to invest in the energy sector. The programme will enable them to improve the competitiveness and productivity of SMEs, and facilitate private sector involvement in energy generation and distribution. The programme end-beneficiaries are the country’s population, 6% of whom will have regular access to electricity, especially rural dwellers.

Participating Organization

Funding

African Development Fund

Implementing

Ministère de l’Economie, des Finances et du Développement

Information

IATI identifier	46002-P-BF-KZ0-001
Last Update	29 Jan 2023

Export

Contact Details

Name	EKPO Alain Fabrice
Email	a.ekpo@afdb.org

Geographic Location

Country	Burkina Faso

Coordinates	Location Name
12.5 -1.66667	Burkina Faso
12.3657 -1.53388	Ouagadougou

Project Classification

Finance Type	Aid Loan Excluding Debt Reorganisation
Flow Type	ODA
Aid Type	Sector Budget Support

Commitments

U.A 10,000,000

African Development Fund

U.A 10,000,000

Disbursements

Repayments (Interest & Loan)

Document Type	Language	Document
Appraisal report	en	BURKINA FASO - Energy Sector Reform Support Program EN
Appraisal report	fr	BURKINA FASO Programme d appui aux re?formes energie FR
Expression of interest	fr	viewer
Expression of interest	fr	viewer
Project Completion Report	en	viewer
Evaluation Report	fr	viewer
Evaluation Report	fr	viewer
Evaluation Report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Installed capacity by independent producers	MW	2018	208,5	2022	76,05
Rate of total loss (technical and non-technical losses) during distribution	%	2018	13,25	2022	11,63
National rural electrification rate	%	2018	6	2022	5,9
Adoption of the application texts of the law N°014-2017/AN relating to the general regulation of the energy sector - to operationalize the reform of the energy sector	None	2018	At least 3 Decrees adopted before the end of June 2018 and 3 other Decrees before May 2019	2022	Achieved. The instruments have been adopted
Implementation of the instruments on energy tariffs to ensure the financial autonomy of the Energy Sector Regulatory Authority (ARSE)	None	2018	Implementation of the Electricity Sub-sector Regulatory Agency (ARSE) financing mechanism through the energy levy in 2018 and 2019	2022	Partially achieved.
Instruments laying down the organisation of the Ministry of Energy and redefining the duties of energy sector entities	None	2018	Finalisation of the diagnostic study in 2018 and adoption of a Decree laying down the organisation of the Ministry of Energy in 2019	2022	Achieved late in 2021
Updated electricity sub-sector strategy and action plan	None	2018	Strategy and action plan adopted in 2018 including an update of public and private investment projects	2022	Achieved in 2018
Preparation of the Investment Project Maturation Guide and Project Ex-ante Evaluation Guide	None	2018	Maturation guide and ex-ante evaluation guide for projects adopted in 2019	2022	Achieved in 2019
Draft law laying down the revised public-private partnership (PPP) management framework	None	2018	Draft law adopted in 2019	2022	Achieved in 2021
Gender-sensitive Budget Circular at the Ministry of Energy	None	2018	Gender mainstreaming in the 2019 budget circular	2022	Achieved in 2020
Adoption of new investment code providing in particular for incentives for the production of renewable energy	None	2018	Draft investment code adopted by the Council of Ministers in 2019 and submitted to the National Assembly	2022	Achieved in 2018
Implementation of the State - SONABEL contract plan on the financial situation of the SONABEL and the decline in overall distribution losses	None	2018	Validated implementation report for the years 2017 and 2018	2022	Achieved
Independent audit of the Société nationale burkinabè d'hydrocarbures (SONABHY) on its financial situation and internal governance	None	2018	Finalisation of the audit report and adoption of a recommendations implementation plan in 2019	2022	Not achieved: auditor’s recruitment completed. Audit in progress
Instrument establishing n the Burkina Faso Rural Electrification Agency (ABER) to improve investments in rural areas	None	2018	Instrument defining ABER’s status and duties and validation of ABER's strategic plan in 2019	2022	Achieved in 2019
Public investment in the energy sector (commitment basis as % of GDP)	%	2018	0,6	2022	0,2
Solar energy	MW	2018	108,5	2022	25,5
State subsidies to SONABHY and SONABEL as percentage of budgetary expenditures	%	2018	2	2022	2
Energy sector gender audit to assess the gender dimensions of energy planning, budgeting and institutional capacity	None	2018	Audit carried out in 2019	2022	Not achieved
Design of an electricity subsector financial model to better manage the sector’s financial balance	None	2018	Financial model completed in 2019	2022	Not achieved