CM-Energy Sector Development SIL (FY08)

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The overall Energy Sector Development Project for Cameroon development objective is to increase access to modern energy in targeted rural areas and improve the planning and management of sector resources by all energy sector institutions. Through its intervention, the project is expected to contribute to improved reliability of electricity supply. Increased access to and reliability of electricity are key factors in the realization of the Government of Cameroon's (GOC) growth and poverty reduction strategy. There are three components to the project. The first component of the project is Rural Energy Fund (REF). This component will help set up a rural energy fund as foreseen under National Energy Plan for Poverty Reduction (PANERP) and the decree establishing Agence d 'Electrification Rurale (AER). A financing mechanism based on best practice examples from countries such as Mali and Burkina Faso will streamline interventions and increase the effectiveness of investments in rural energy. The second component of the project is capacity building. This component will provide technical assistance to Ministere de I'Energie et de I'Eau (MINEE) to (i) improve the planning of least cost investments; (ii) finalize the legal and institutional framework of the energy sector; (iii) communication; and (iv) complementary studies and provide necessary training and equipment. The third component of the project is project preparation including Lom Pangar Project (LPHP) preparation. This component will assist Electricity Development Corporation (EDC) with the preparation of LPHP and AER with the preparation of rural energy projects.