Engaging the Private Sector in Liberia's Electricity Future

With the assistance of the International Finance Corporation (IFC), the Government of Liberia awarded a five-year management contract for the Liberia Electricity Corporation (LEC) to Manitoba Hydro International (MHI) of Canada in 2010. With the support of donors, including USAID, Norway, the World Bank and the European Union, the contract aims to rebuild the electricity system in Monrovia and significantly expand access to electricity while improving the operational and financial performance of LEC.

Multi-Utilities and Access: Can Private Multi-Utilities Help Expand Service to Rural Areas?

In 1997 Gabon awarded the first real concession in Africa , under a contract that introduced coverage targets for expanding service to previously unconnected rural areas. SEEG, the new concessionaire, offers both water and electricity service, with the electricity business cross-subsidizing the less developed water business. Five years on, the concessionaire has performed well in established service areas, often exceeding targets, but has made less progress in more isolated areas.

Gabon: Société d’Energie et d’Eau

In 1997, Gabon privatized its electricity and water utility, Société d’Energie et d’Eau du Gabon (SEEG). The transaction was the continent’s first privatization of a water and elec- tricity utility involving full commitment for future investment, and the first full concession in Sub-Saharan Africa under a contract that introduced coverage targets for expanding service to previously unconnected rural areas. IFC was the lead advisor to the government in this transaction.

Lessons from the Independent Private Power Experience in Pakistan

Pakistan’s first private power project, the Hub Power Project, and its subsequent 1994 private power policy – both supported by the World Bank – were lauded by the international investment community. Pakistan succeeded in attracting over $5 billion in investment and contracting about 4,500 megawatts of private generation in record time. However, macroeconomic instability in the country and financial problems in the power utility revealed some of the shortcomings in the policy and its implementation.

Partnerships IQ: Rooftop Solar PPPs - Lessons from Gujarat Solar

A visitor to gandhinagar, capital of the Indian state of gujarat, is likely to notice the glint of the sun reflecting off solar panels on the city’s rooftops. some of these solar panels sit atop schools, others on hospitals. Many are perched on residential buildings. altogether, the panels generate about 5 megawatts (MW) of electricity, providing better access to power for an estimated 10,000 people.

Afghanistan: DABS Kandahar

Afghanistan’s national power utility, Da Afghanistan Breshna Sherkat (DABS), is responsible for providing power generation, transmission, and distribution services across the coun- try. Following its incorporation in 2008, DABS struggled to provide sustainable service, particularly in the south of Afghanistan. To help address this, DABS hired IFC as the lead advisor on a performance-based public-private partnership (PPP) for one of its regional divisions. The PPP agreement was signed in August 2014.

Peru: Electrolima

In 1992, the newly elected government inherited a bankrupt economy and embarked on an aggressive economic development program. Power sector reform was an integral part of the agenda. Given it’s inefficiency and financial losses, state-owned Electrolima, Peru’s second largest electricity generator and Lima’s largest distributor, was an obvious candidate for privatization. IFC acted as adviser to the government for the transaction and Electrolima was successfully privatized in two transactions in 1994 and 1995.

Panama: IRHE

IFC advised the government of Panama on the privatization of its electricity genera- tion and distribution companies created from the restructuring of its vertically-inte- grated utility, IRHE. The privatization resulted in an immediate private capital inflow of $600 million and 10 percent reduction in retail tariffs, as well as more than $1 billion in private investment in the privatized companies. The transaction was com- pleted in 1999.

International Gas Trade-The Bolivia-Brazil Gas Pipeline

Many prospective international gas pipeline projects are under consideration-projects in Central and South Asia, and projects proposing pipelines from Russia to China and from Turkey to Eastern Europe. Given the large investments required, the main challenge is to design financing schemes that work. There are few blueprints to draw on. The World Bank can play a key transitional role in such projects. But there needs to be demonstrable commitment to opening the natural gas industry to competition and private investment and estab- lishing sound regulatory and pricing policies.