West Africa: Multinational Electric Power Grids Study: ADF Supports Energy Integration in Western Africa

26 January 2005
African Development Bank (Abidjan)
press release

Tunis — The African Development Bank (ADB) Group has decided to support the development of integrated hydro-electric power in West Africa. River basins in the sub-region offer an opportunity for the development of the largely unexploited energy potential. Hydropower would help end the persistent problems of power shortage and the heavy dependence on imported petroleum products for the production of electricity through the inter-connection of the sub-regional power grids.

In this perspective, the Board of Directors of the African Development Fund (ADF), the concessional window of the Bank Group approved in Tunis on Wednesday, a grant of 3.45 million Units of Account (UA*) equivalent to US$ 5.35 million, to finance a hydro-electric study for the benefit of the Gambia River Basin Development Organization (OMVG) countries. Specifically, the project involves detailed studies and the preparation of bidding documents for the Sambangalou and Kaléta Hydro-Electric power schemes as well as the interconnection of the power grids of the countries concerned.

The main objective of the project is to strengthen cooperation and regional integration of OMVG member countries in the energy sector, and more particularly in the electricity sub-sector.

The project will promote:

Electric power trade between the countries through the pool that will be created;

The reliability of energy supply;

Reduction in production costs and prices, through sharing of the reserve and economies of scale, and consequently, increased competitiveness of the enterprises and economies of OMVG countries;

The opportunity for pooling energy resources, in particular the abundant but unequally distributed hydro-electric power among the member countries.

Furthermore, the realization of these projects will help improve the living conditions of the population of the four countries by significantly improving access to electric power in urban areas as a result of an increase in supply and extension of networks, and in rural areas as a result of the use of sky wires for the electrification of localities along its corridor.

The OMVG, comprising The Gambia, Guinea, Guinea-Bissau and Senegal, was established in 1978. The organization executes integrated development programmes of the member countries with regard to the rational and appropriate exploitation of the common resources of the Gambia, Kayanga-Géba and Koliba-Corubal river basins.

Project Information Sheet

· Sources of financing: ADF & Government

· Location : Gambia, Guinea, Guinea-Bissau, Sénégal

· Estimated start-up date and duration: June. 2005, 16 months

Executing Agency: OMVG, 13, Passage Leblanc, B.P. 2353 Dakar, République du Sénégal. Tél. (221) 822.31.59 - Fax : (221) 822.59.26, E-mail : omvg@omvg.sn

· Procurement of Goods and Services: The Consultant will be recruited through competition on the basis of a shortlist in accordance with Bank Group Rules of Procedure.

*1 UA =1.55301 US$ as at 01/01/2005

The full text of the appraisal report is available in the bank's website, in line with the Bank Group's new policy on disclosure of information.

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