Economic Community Communauté Economique Of West African States Des Etats de l’Afrique de l’Ouest

General Secretariat / Secrétariat Général

« Lighting Up West Africa »

Presentation by Engr. Amadou Diallo WAPP Secretary General Vision, Mission and Establishment of WAPP

 Establishment: WAPP was created in 1999 by Decision A/DEC. 5/12/99 and established in 2006 through Decisions A/DEC. 18/01/06 by the Authority of ECOWAS Heads of State and Government.

 Vision: The WAPP was created to integrate the national power systems into an unified regional electricity market – with the expectation that such mechanism would, over the medium to long-term, ensure the citizens of ECOWAS Member States with a stable and reliable electricity supply at affordable costs

 Mission: To promote and develop infrastructure for power generation and transmission, as well as, to assure the coordination of electric power exchanges between ECOWAS Member States Member Utilities in 2012 (24#)

VRA

CEB ECG NIGELEC

LEC EDG CONTOUR GLOBAL Framework of Cooperation – ECOWAS Energy Protocol

 Adopted by the ECOWAS Heads of State and Government on January 31, 2003 through Decision A/DEC. 17/01/03 and binding on all ECOWAS Member States.

 Establishes a legal framework to promote long-term cooperation in the ECOWAS energy sector, based on complemntarities and mutual benefits, with a view to achieving increased investment in the energy sector and increased energy trade in West Africa. Organisational Structure

GENERAL ASSEMBLY MDs of WAPP Member utilities – Supreme decisional organ

Responsible for execution of WAPP policies and decisions EXECUTIVE BOARD 12 Members - eight (8) permanent members, three (3) rotating members, 1 observing member

•EOC •SPEC ORGANISATIONAL •FC COMMITTEES •HRGC WAPP Donors’ GENERAL SECRETARIAT •DCC Coordination Committee

Planning, Investment Information & Administration & Finance Programming & Environmental Department Coordination Centre Safeguards Department What does WAPP represent for its Membership? • Enhanced sub-regional collaboration and integration • Access to low cost energy resources • Overall reduction in infrastructure development costs due to economies of scale • Rapid project development – Large scale projects are more justified due to larger markets – Financing of regional projects by Development Partners is from separate concessional instruments that are different from national envelopes • Harmonised operation of interconnected networks contribute to increased reliability • Opportunities for trade West African Power Pool

WAPP PROGRAMME & IMPLEMENTATION STRATEGY  Total energy demand 50,000 GWh (85% accounted for by , Cote d’Ivoire, and )

 Maximum Demand projected to reach 31,870 MW by 2025. Population estimated to reach 448 million.

 Average growth rate of electricity demand 5-7%

 Primary energy resources available for electricity generation:  Hydropower  Oil,  Natural gas and coal  Renewables

2012 - 2015 WAPP Business Plan Status of Power Supply in ECOWAS: Supply Sources

Import + Others 5% Hydro Thermal GWh 31% 64%

40,000

30,000

20,000 Thermal Import + Others Hydro 10,000

-

Mali Ghana Gambia Nigeria Senegal

Burkina FasoCote d'Ivoire Guinea Bissau 9 Status of Power Supply in ECOWAS: Demand-Supply Balance

GWh Met Unmet 54% 46% 50,000

40,000

30,000

20,000 Met 38,370 Unmet 10,000 7,773 3,004 1,800 - 661 688 170 860 16 16 841 56 674

Mali Togo Benin Ghana Liberia Gambia Guinea Nigeria Senegal

Burkina FasoCote d'Ivoire Sierra Leone Guinea Bissau 10 UPDATE OF THE REVISED ECOWAS MASTER PLAN

. WAPP updated its Master Plan in 2011, which was adopted by ECOWAS Heads of State and Government on February 17, 2012 through Supplementary Act A/SA.12/02/12

. Objectives of the Study: – Elaborate an optimal development plan for a regional generation and transmission of electrical energy. – Propose a list of regional priority project that will assure energy security and the achieve the of interconnection of all the West African countries by 2018. – Elaborate a strategy for implementing the regional priority projects. UPDATE OF THE REVISED ECOWAS MASTER PLAN Outcome of Study

For the period 2012 – 2025:

No. Cost (US$ million) Hydropower Projects (7,092 MW) 24 13,803 Thermal Power Projects (2,375 MW) 5 4,263 Renewable Energy Projects (800 MW) 4 1,893 Transmission Line Projects (16,000 km) 26 6,457

 Total Investment Cost is US$ 26.416 Billion

12 27/08/11 13 27/08/11 14 UPDATE OF THE ECOWAS REVISED MASTER PLAN : ENERGY MIX WITH 10% OF RENEWABLE ENERGY BY 2025

15 Implementation Strategy Inter Zonal Hub

North Corridor

OMVG-OMVS MALI

SENEGAL

GAMBIE GUINEE BISSAU

GUINEE NIGERIA BENIN SIERRA GHANA TOGO LEONE CÔTE D’IVOIRE

CLSG LIBERIA Coastal Backbone 16 Summary – Implementation Schedule

Interconnection in service

MALI NIGER

SENEGAL BURKINA FASO GUINEA GUINEA BISSAU BENIN NIGERIA SIERRA TOGO CÔTE LEONE GHANA D’IVOIRE LIBERIA Summary – Implementation Schedule

Interconnection in service

MALI NIGER

SENEGAL THE GAMBIA BURKINA FASO GUINEA GUINEA BISSAU BENIN NIGERIA SIERRA TOGO CÔTE LEONE GHANA D’IVOIRE LIBERIA

18 STATUS OF DELIVERY OF WAPP PROJECTS Summary – Implementation Schedule

Interconnection in service

MALI NIGER

SENEGAL THE GAMBIA BURKINA FASO GUINEA GUINEA BISSAU BENIN NIGERIA SIERRA TOGO CÔTE LEONE GHANA D’IVOIRE LIBERIA

19 STATUS OF DELIVERY OF WAPP PROJECTS WAPP Medium Voltage Cross Border Projects

BURKINA FASO

BENIN

GHANA CÔTE TOGO D’IVOIRE LIBERIA

 Ghana - Togo  Ghana - Burkina Faso:

 Cote d'Ivoire - Liberia: In progress, commissioning expected mid 2013  Ghana - Southern Togo: In progress, commissioning expected in 2014  Benin - Northern Togo: In progress, commissioning expected in 2014

20 STATUS OF DELIVERY OF WAPP PROJECTS West African Power Pool

CONCLUSION Challenges to be Overcome

• Demand continues to outgrow production capacity implying load shedding is becoming more prominent; • The energy crisis in the sub-region has led to ECOWAS Member states adopting non-optimal solutions that have deviated from the ECOWAS vision for a sustainable and vibrant electricity market in West Africa; • The energy crisis has also had negative impacts on the treasuries of utilities, which has in turn eroded the capacity of WAPP Members to actively participate in the development of the WAPP; • Institutional frameworks of national electricity sub-sectors and the technical, financial and operational performances of utilities need to be strengthened; • The global financial crises will constrain further funding sources and render difficult the securing of financing for WAPP projects.

22 Way Forward

• Continue to leverage the low cost energy resources (hydropower, natural gas) for the benefit of the sub-region; • Expand sources of funding for transmission and generation projects by aggressively pursuing public private partnerships and accelerate their implementation; • Promote electricity sector reforms and restructuring to render them more efficient; • Adopt common approaches to network operation, trading and expansion; • Enhance communication and dialogue among players in the electricity sub-sector – possible cross-transfer of Best Practices; • Encourage, in close collaboration with ECREEE, a rapid but structured integration of renewable energy development into regional and national strategies for addressing power supply deficits; • Reinforce the capacities of ECOWAS Ministries in charge of energy and WAPP Member utilities.

23 WAPP: Lighting Up West Africa

THANK YOU FOR YOUR ATTENTION

WAPP Secretariat 06 BP 2907 – République du Bénin Tel : + (229) 21 37 41 95 / 21 37 71 44 Fax : + (229) 21 37 41 96 / 21 37 71 43 Email: [email protected] Site: www.ecowapp.org 24