World Bank Document

C) l '~'-joint UNDP/Wo'rld Bank Public Disclosure Authorized -EnergySectr aagement- Ass'istanceProgram- C ntry SUDAN - Activity Comp etsss Report N R 1984o. 2 '3 '>-, r A. 3 Public Disclosure Authorized Coutr: UNf Om S M - 5 C',, ~ ~ N Activit: ENRG ASSSMESS ~STATUSiS,1; -. , NOVMBR 1984 .o' Public Disclosure Authorized .! \ .~~~~~~~" N,, - f ,,+ ~~~~atoiain frmteGvrmn, th UND or th olak -3~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Public Disclosure Authorized a1hrzto frmteGvrmn, the)UOP oi th ''rdBak URRY SBCTORW1NUGO T ASSISTWCEPROCRAR-' ,Act ivitie8s ikipleted. '3 s .,E Date Completed EnerEy,AssessmentStatus Report Papus New Guinea July, 1983 -. Maurltius2 October,1983 Sri Lanka: January,1984 Malawi January,1984 Burundi February, 1984 Bangladesh April, 1984 'Kenya- May, 1984 . Rwanda May, 1984 zimbabwe August,1984 Uganda ' August, 1984 Indonesia September,1984 Senegal October,1984' .; ProjectFormulation and Justification Pahuma Power Loss Reduction Study June, 1983 Zimbabwe PowerLoss ReductionStudy June, 1983 Sri Lanka PowerLoss ReductionStudy July, 1983 Malawi TechnicalAssistance to Improve the Efficiencyof -Fuelwood Use in TobaccoIndustry November,1983 Kenya PowerLoss ReductionStudy March, 1984 Sudan Power loss Reduction Study June, 1984 Seychelles Power aossReduction Study August,.984 --.) Institutionalahd PolicySupgort Su4an M.NnagementAssistance to the Ministryof Energy& Mining May, 1983 Burundi PetroleumSupply Management Study December,19S3 Papua New Proposalsfor Strengtheningthe Guinea Departmentof Mineralsand Ener_gy October,1984 Papua New Guinea Power TariffStudy October,1984 . ) . - ' 5a _i 5 * ,..5 '-S~~~~~~~~~~~~~~~~~' SUDAN ENERGYASSESSMENT STATUS REPORT NOVEMBER1984 ACRONYMS AND ABBREVIATIONS BNG Blue Nile Grid CFA Central Forest Administration CIDA Canadian International Development Agency DANIDA Danish International Development Agency EDI Energy Development International EPM Energy Planning and Management Project (USAID) FAO Food and Agricultural Organization of the United Nations FY Fiscal Year GMRD Geology and Mineral Resources Directorate GOS Government of Sudan GPC General Petroleum Corporation GTZ Gesellschaft fur Technische Zusammenarbeit IDA International Development Association ILO International Labor Organization INF International Monetary Fund KfW Kreditanstalt fur Wiederaufbau LPG Liquified Petroleum Gas MEM Ministry of Energy and Mining MIS Management Information System NEA National Energy Administration NEC National Electricity Corporation PPF Project Preparation Facility PSR Port Sudan Refinery RERI Renewable Energy Research Institute RTC River Transport Corporation SRC Sudan Railways Corporation SREP Sudan Renewable Energy Project (USAID) SWECO Swedish Consultants TA Technical Assistance UNDP United Nations Development Program UNFSTD United Nations Fund for Science Technology and Development UNIDO United Nations Industrial Development Organization UNSO United Nations Sudano-Sahelian Office USAID United States Agency for International Development bpd barrels per day Btu British thermal unit GWh gigawatt-hour Ig imperial gallon m meter mt metric ton MW megawatt MWh megawatt-hour TOE tons of oil equivalent W watt ENERGYCONVERSION FACTORS TOE per physical unit Million kcal per unit Petrcleumproduct (mt) LPG 1.06 10.8 gasoline 1.03 10.5 kerosene/jetfuel 1.01 10.3 gasoil 1.00 10.2 fuel oil 0,96 9.8 Electricity(MWh) 4.00 86.0 x 10i2 Biomass(mt) charcoal 0.68 6.9 fuelwood 0.32 3.3 other 0.26 2.t 1 TOE = 10.2 million kcal = 40.5 million BTU = 42.7 GJ 1 kcal = 3.968 BTU 6 1 kcal - 4.19 x 10 GJ 1 MWh = 860,000 kcal 0.248 TOE at 34% generationefficiency FISCAL YEAR July 1 - June 30 TABLEOF CONTET Pa8e r.* BACKGROUND...............,.........-...................,1 II. RECENT tiEVELOPMENTSIN THE ENERGY SECTOR.................. 4 III. STATUS OF ENERGY ASSESSMENTRECOMMENDATIO'IS............... 10 Petroleum.. ........... ... * * * * * * * * * *.. ... 10 Power ..... j * ~~~~~~~~~14 F uee. , . * * * ~ * **loow * **.. * . *o ....... od.~.~... 16 OtherRenewable Energy Sources ........................ , 19 Energy Conservation 21 Ttansport.. ~ 9~9~~99~ 999999999... *999~99~999 99999 21 Powerwer..............................................22 F ue l w o o d ~~~~~~~~~~~~23 Energy Prcn... 25 InstitutionalStrengthening........... ... .. 27 IV. OVERVIEW OF ONGOING AND PLANNED TECHNICALASSISTANCE...... 32 tWorld Bak32 UN Agencies............. ........ ... 33 Governmentof Sudan 33 Unitedst a t e s 34 Germany ~~~~~~~~........ ..36 999999999999999999 36 Cnoman.................. 36 5anata ~~~~~~~~~~~~~36 Qomania ~~~~~~~~~~~~~36 V. PRIORITIESFOR FURTHER TECHNICALASSISTANCE.............. 37 Energy Efficiency 37 Energy ConservationPublic Awareness Campaign ig.9 n.9 37 StrengtheningNEC System Planning Capability...... 38 Energy Conservationin Public Buildingsldings......... 38 PreliminaryEnergy Audit in Industrytustry**.,#** 38 EfficiencyImproveme 1its in the Transport Sector**#*#.* 39 Solar Water Heating 39 Fuelwood Productionand Management......................40 Peri-urbanFuelwood Plantations..................... 41 Upgrading Fuelwood Productionon Arid and Semi-arid Land ........... 42 InstitutionalReview of Forest Administration 42 Page MNEXES 1. Economic Indicators.................................. 44 2. EnergyBalance, FY83...................... 45 3. FinalConsumption of PetroleumProducts, 1978-83.....,........ 46 4. Trade in CrudePetroleum and PetroleumProducts, 1978-83...... 47 5. Power Generationof PublicSystems, FY78-83.................... 48 6. OfficialPrices of PetroleumProducts, Khartoum............... 49 7. PowerTarif NEA..............................50 8. OrganizationalStructure of NE ................v*51 I. %ICKOUND 1.1 In November 1982, a World Bank mission visited Sudan to identify issues and options in the country's energy sector. The mission'sfindings and recommendationsare outlinedin a jointUNDP/World Baak EnergyAssessment Report. 1/ The followingissues were identified as being the most significantin the energy sector, the resolutionof which would contributesubstantially to the recoveryof the economy: (a) supply disruptionsof petroleumproducts, mainly due to financial constraints;(b) the urgent need for policy decisionson a number of options on the developmentand utilizationof indigenouscrude oil resources;(c) low efficiencyof utilizationof petroleumproducts and woodfuels; (d) serious over-cuttingof Sudan's fuelwood resources; (e) inadequatereliability and shortageof power supplyas well as high system losses; (f) shortcomingsin petroleumproduct prices and power tariffs;(g) the need to develop renewableenergy sourcesother than fuelwood;and (h) lack of sector-wideplanning and coordination. 1.2 Over the last year and a half, the Governmenthas been success- ful in initiatinga numberof impo!tantpolicy measures, studies and developmentprograms in the energysector. However,progress in some areas has been hampereddue to the overalleconomic conditions prevailing in Sudanwhich have had a continuingimpact on the abilityof the Government to implementenergy developmentprograms. Hence, althoughthe initi- atives taken by the Governmenthave resultedin notable progresswith respectto the implementationof the recommendationsof the Assessment Report, continuedprogress largely depends upon the ability of the Governmentto mobtlizeadequate financial and other resourcesrequired to sustainthe energydevelopment program. 1.3 The economyof Sudanis characterizedby a numberof imbalances whichthe Governmentis attemptingto correct. A recentreview 2/ indi- cates that the imbalancebetween consumption and savingsis among the most significant.Since the middleof the last decade,Sudan has relied heavilyon domesticborrowing and foreignresources rather than on its own taxationand savingsto finance investment. By doing this, the Governmentwas unable to curb privatesector demand sufficiently.The results have been reduced availabilityof goods for export, soaring imports,rapid inflationand debt servicingcrises. However,during the past two years, the Governmenthas taken a seriesof measuressuch as increasingexport productivity,reducing the budgetary deiicit and restructuringexternal debt to reverse the declining trend and to initiatea recoveryof the economy. Annex I givRs a brief outlineof 1/ Sudan:Issues and Optionsin the EnergySector, July 1983. 2/ Sudan: Pricing Policies and StructuralBalances, November 1983, World Bank. - 2 - economic indicators for the last few years. Real GDP growth rates were recorded at 4.6X in the early years of the 1980s after a seriousdecline at the end of the last decade. However, due to adverse weather conditions, transport problems, and shortages of energy supply to both the agriculturaland industrialsector, GDP declined again in FY83. In 1982, the annual rate of inflation was estimated at about 27%. Since FY82, exports as a percentage of GDP have increased&gain, while imports have remained at twice the level of exports, leading to increasingannual cur- rent account deficits of up to about 16% of GDP in FY82 and dropping again to 12% of GDP in the following year. While in the early 1970s domestic savings of 9-10% of GDP financed a major proportion of the country's investuent, domestic resource mobilizationdecreased relative to GDP in the late seventies and early eighties, turning negative in ?Y82. As a result, annual increasesin foreign borrowingwere excessive. 1.4 This status report 3/ briefly outlines the significantdevel- opments that have occurred in the energy sector since end-1982, and in particular,the actious taken by

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