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 15,000,000
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	28 Jan 2022

Export

Contact Details

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

Geographic Location

Country	Burkina Faso

Project Classification

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

Commitments

U.A 15,000,000

African Development Fund

U.A 15,000,000

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
	en	General Conditions 2009
Evaluation Report	fr	viewer
Evaluation Report	fr	viewer

Indicator	Indicator Measure	Target Year	Target Value	Actual Year	Actual Value
Power capacity installed	MW	2018	208,5	2019	50
Average electric power total losses	%	2018	13,25	2019	13,62
Rural areas electricity access	%	2018	6	2019	3,18
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	2019	At the end of April 2019, 12 decrees and 4 orders had been adopted, the - Decree on the specifications applicable to electricity distribution concessionaires - Decree on the methods for determining and revising tariff conditions - Decree on the conditions for purchasing surplus electricity produced by solar photovoltaic self-production facilities
Financial autonomy of the Energy Regulatory Authority (ARSE) to make it more operational in the regulation of the sector	None	2018	Implementation of the Electricity Sub-sector Regulatory Agency (ARSE) financing mechanism through the energy levy in 2018 and 2019	2019	Decisions of the Energy Regulatory Council on the application in 2018 and 2019 of the mechanism for financing the ARSE through the energy levy. Report on the implementation of the mechanism in 2018
Revision of the institutional and organisational framework of the Ministry of Energy to adapt it to the new directions of reform	None	2018	Finalization of the diagnostic study in 2018 and adoption of a Decree organizing the Ministry of Energy in 2019	2019	The diagnostic study took place in 2018 and the texts bearing the statutes of ABER and SONABEL were adopted in 2018. The organizational text of the Ministry of Energy has not been adopted. A draft text relating to the status of ANEREE is in progress
Validation of the updated electricity sub-sector strategy and action plan	None	2018	Strategy and action plan adopted in 2018 including an update of projects with public and private funding	2019	The Strategy and action plan were adopted in 2018
Elaboration of the maturation guide for investment projects and the ex-ante project evaluation guide	None	2018	Maturation guide and guide for ex-ante evaluation of projects adopted in 2019	2019	The Guide to project maturation and ex-ante evaluation was adopted in December 2019
Adoption of a new investment code specifying, in particular, the incentive provisions for renewable energy production	None	2018	Preliminary Draft Investment Code adopted by the Council of Ministers in 2019 and submitted to the National Assembly	2019	The Investment Code was adopted by the National Assembly in October 2018
Adoption of a new public-private partnership management framework	None	2018	Bill passed in 2019	2019	Public-Private Partnership (PPP) strategy being updated. Draft text not yet completed
Development by ARSE of a financial model for the electricity sub-sector for better management of the sector's financial equilibrium	None	2018	Financial model realized in 2019	2019	The financial model is not yet realized. The TORs for recruiting technical assistance have been completed. Funding is provided by the WB PASEL
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	2019	The Implementation Reports for the year 2017 and the first half of 2018 have been validated by the Interministerial Committee. The report for the end of 2018 is being finalized
Independent audit of the Société nationale burkinabè d'hydrocarbures (SONABHY) on its financial situation and internal governance	None	2018	Finalization of the audit report and adoption of an implementation plan for the recommendations in 2019	2019	The audit has not yet started. Recruitment of the auditor is at the stage of evaluation of financial offers
Creation of the Burkina Faso Rural Electrification Agency (ABER) to improve investment in rural areas	None	2018	Text on the status and attribution of the ABER and validation of the strategic plan of the ABER in 2019	2019	Texts establishing and statute of the ABER adopted in December 2018. Strategic plan being developed with EU-funded technical assistance
Gender dimension mainstreamed in the 2019 budget circular	None	2018	Gender mainstreaming in the 2019 budget circular	2019	The 2019 budget circular providing for gender mainstreaming in the 2020 energy sector budget is being prepared and in the process of adoption