Guinea Electricity Sector Efficiency Improvement

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The Electricity Sector Efficiency Improvement Project of Guinea seeks to improve the electricity sector's commercial and operational efficiency. These results will be achieved through critical investment support and capacity building, impacting the financial viability of the sector and quality of service delivery. The project contributes to reduction of carbon dioxide (CO2) emissions by addressing the large inefficiencies in the distribution sector and reducing energy losses. The project will support investments that aim at improving (i) distribution networks and generation capacity for reliable supply (ii) commercial character and (iii) customer interface of the electricity sector. Implementation o f the Project will be structured along the following three components: Component 1: CREST - Distribution efficiency improvement: The efficiency improvement program referred to as the Commercial Reorientation of the Electricity Sector Toolkit (CREST), comprising a set of best practice interventions, is designed and implemented by the Guinea Electricity Company (EDG) with active support from the Bank team. The program reengineers core business processes (with a pronounced focus on the retail metering, billing and collection (MBC) functions) and deploys innovative technology solutions in order to improve service delivery to reduce technical and commercial losses; Component 2: Rehabilitation (Repair and Maintenance) of Critical Generation: Investment support would be provided to EDG, through this Project to improve the reliability and efficiency of the existing Garafiri hydroelectric plant and the Tombo thermal power plant. This will be in the form of assistance for critically required equipment and spare parts and tchnical assistance for operations. Component 2 will also nvolve technical studies to better analyze and understand the current condition of the generation facilities; and required upgrades to improve generation capacity; Component 3: Institutional Strengthening through Technical Assistance: A strong institutional base is fundamental to the sustained financial success of the power sector in Guinea. There is a clear and urgent need to develop a robust and modern technical, financial and accounting infrastructure base to support the efforts of EDG to improve its managerial, financial and operational performance. Further, opportunities for efficiency enhancements from private sector partnerships and demand side management (DSM) will be identified and explored.