IFC Advisory Powers Guinea in World Bank Group Effort

Guinea’s signs management contract for Electricité de Guinée with the Veolia Africa-Seureca consortium.

In a transaction structured by IFC and a contract funded through the World Bank, the consortium brings together two experienced operators charged with enhancing the management, operation, and commercial viability of the electricity sector in an economy focused on continued response to the Ebola epidemic and subsequent recovery. 

The management contract coincides with the commissioning in coming months of the Kaléta hydropower plant with an installed capacity of 240 MW. The new contracto will also open the door for future increased private sector participation in the energy sector, providing a more attractive investment climate and a more viable national power utility.   

“The management contract will lay a solid foundation for expanding electricity services in Guinea, providing more people and more businesses with more power,” said Ibrahima Sory Soumah, IFC Resident Representative in Guinea. “It will also significantly benefit the almost 227,000 existing EDG customers by providing them with improved and more reliable electricity supply.” 

EDG has a history of poor performance and an inability to deliver adequate levels of service required to support economic growth and social development. Access to electricity remains at an average low of about 15 percent. 

“The management contract is the first step towards improving the technical and commercial performance of the national power utility, Electricité de Guinée,’’ said World Bank Senior Energy Economist Moëz Cherif. “It is part of a multi-donor supported power sector priority investment plan of over $700 million.” The management contract will be funded under World Bank’s Power Sector Recovery Project.

As the country continues to battle the Ebola virus, a reliable supply of electricity to power everything from treatment centers to hospitals will also be crucial to saving lives. 

Guinea’s economy is dominated by the mining sector, which relies on power for growth. Guinea has significant reserves of iron ore, bauxite, gold, uranium and diamonds, providing opportunities for greater coordination on power resources development between the national utility and mining companies.  Guinea’s hydropower capacity is estimated at more than 6,000 MW. 

For more information contact Geoffrey Keele, gkeele@ifc.org.

First Published: 06/23/2015