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World Bank Document |LI t!]LILIE []LJiFJLflLiLLiLL!1 H 1i I LI LiLIiIIJ[l]lJ]L]I I I 1-1HII II 171 I' (C- \ "\ 11L- l1-ofl 1lllsU.jU11 J0L LI LI. fU IS1Jr 11 . 11'- >/t?)11 9< | Public Disclosure Authorized MICROFICHE COPY Report No. 9215-BU Type: (SEC) MR. MICHAE/ X34009 / J10205/ AF3 Public Disclosure Authorized Burundi Rommas md optogo$ A th Energ Sector Report No. 9215-BU Public Disclosure Authorized Public Disclosure Authorized JOINT UNDP / WORLDBANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) PURPOSE The Joint UNDP/World Bank Energy Sector ManagementAssistance Programme (ESMAP) was launched in 1983 to complementthe Energy AssessmentProgramme, tstablished three years earlier. ESMAP's original purpose was to implementkey recommendationsof the Energy Assessmentreports and ensure that proposed investmentsin the energy sector representedthe most efficientuse of scarce domesticand external resources. In 1990, an internationalCommission addressed ESMAP's role for the 1990sand, noting the vital role of adequateand affordableenergy in economicgrowth, concluded that the Programme should intensify its efforts to assist developingcountries to manage their energy sectors more effectively. The Commissionalso recommendedthat ESMAP concentrate on making long-term efforts in a smaller number of countries. the Commission's report was endorsed at ESMAP's November1990 AnnualMeeting and promptedan extensivereorganization and reorientation of the Programme. Today, ESMAP is conductingEnergy Assessments,performing preinvestment and prefeasibilitywork, and providing institutionaland policy advice in selected developing countries. Through these efforts, ESMAP aims to assist governments, donors, and potential investors in identifying,funding, and implcmentingeconomically and environmentallysound energy strategies. GOVERNANCE AND OPERATIONS ESMAPis governedby a ConsultativeGroup (ESMAPCG), composedof representativesof the UNDP and World Bank, the govemmentsand institutionsproviding financialsupport, and representativesof the recipientsof ESMAP's assistance. The ESMAPCG is chairedby the World Bank's Vice President, Operationsand Sector Policy, and advised by a Technical Advisory Group (TAG) of independent energyexperts that reviewsthe Programme'sstrategic agenda, its work program, and other issues. The Managerof ESMAP, who reports to the World Bank's Vice President, Operationsand Sector Policy, administers the Programme. The Manager is assisted by a Secretariat, headed by an Executive Secretary,which supportsthe ESMAP CG and the TAG and is responsiblefor relations with the donors and for securingfunding for the Programme'sactivities. The Managerdirects ESMAP's two Divisions: The Strategyand ProgramsDivision advises on selectionof countriesfor assistance, carries out Energy Assessments,prepares relevantprograms of technicalassistance, and supportsthe Secretariaton funding issues. The OperationsDivision is responsiblefor formulationof subsectoralstrategies, preinvestment work, institutionalstudies, technicalassistance, and trainingwithin the frameworkof ESMAP's country assistanceprograms. FUNDING ESMAP is a cooperative effort supported by the World Bank, UNDP and other United Nations agencies, the EuropeanCommunity, Organization of AmericanStates (OAS), Latin AmericanEnergy Organization(OLADE), and countries including Australia, Belgium, Canada, Denmark, Germany, Finland, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland,the United Kingdom,and the United States. FURTHER INFORMATION For further informationor copies of completedESMAP reports, contact: The Manager or The Executive Secretary ESMAP ESMAP ConsultativeGroup The World Bank The World Bank 1818 H Street N.W. 1818 H Street, N.W. Washington,D.C. 20433 Washington,D.C. 20433 U.S.A. U.S.A. FOR OFFICIALUSE Report No. 9215-BU BURUNDI ISSUES AND OPTIONS IN THE ENERGY SECTOR January 1992 This is one of a series of reports of the Joint UNDP/WorldBank Energy Sector ManagementAssistance Programme. Finance for this work has been provided, in part, by the UNDP, and the Governmentof the Netherlands, and the work has been carried out by the World Bank. This report has a restricted distribution. Its contents may not be discussedwithout authorizationfrom the Government,the UNDP, or the World Bank. ABSTRACT Burundi has a certain endowmentof energy resources in the form of wood, hydropower and peat but with the present demand characteristics, population density and increase, as well as settlementpattern, the resources are either under pressure of potential depletion(wood) or are relatively costly to produce and supply (hydro resources and peat). In addition, the country's landlockedposition makes petroleumproducts, for which it is entirelydependent on import, very costly. A dominantshare of energy consumption (90%) is coi,eredby biomass (woodfuelsand crop residues) and households are #e main consumer categoryof energy (more than 90%). Some 85% of commercialenergy is imported, preempting 25-30% of the country's foreign exchangeearnings. Given the above profile, the principal direction of the country's efforts in the energy sector should be towards improving the efficiency of utilization and production of energy, increasingthe supply of woodfuels and lowering the supply costs of petroleum products, and strengtheninginstitutions in the energy sector to enable them to improve planning, implementationand operations. The main recommendationsof the present report are to: (i) improve demand managementwith respect to the different types of fuels, by introducing more efficient nricing policies for woodfuels and petroleum products and by fully implementingalready initiatedtariff reforms regarding electricity; (ii) more systematicallyfollow up the potential for increasing efficiency of production and consumptionof energy by non-pricemeasures, in particular with respect to charcoaland electricity, and to pursue the possibilityof substitutingpeat for fuel oil in industry; (iii) increase the supply of wood by further focussing on agro-forestry and improving managementof existing wood resources, to improve reliabilityof electricity supply, and to pursue the means of loweringpetroleum import costs and increasingthe reliabilityof supply; and (iv) further develop the capacity for overall energy planning as well as for preparing and implementingsubsector plans, by extending technical assistance and other support, by clarifying areas of responsibility,and by establishingand followingclear proceduresand planning methodologies. An Energy Sector RehabilitationProject is being prepared and will complementthe Energy Assessment. ACRONYMSAND ABBREVIATIONS AMOCO American Oil Company BPE Bureau des Projets d'Education BRB Banque de la RepubliqueBurundaise CEBEA Centre d'Etudes Burundaisdes Energies Alternatives CEPGL CommunauteEconomique des Pays des Grands Lacs CIDA CanadianInternational Development Agency CRAES Centre Regional Africain pour l'Energie Solaire DF Departementdes Forets DGC Direction Generaledu Commerce DGE Direction Gdnerale de l'Energie DGHER Direction Gdndralede I'Hydrauliqueet des Energies Rurales DP DNpartementdes Projets DRS Departementdes Rechercheset Statistiques DUB DeveloppementUrbain de Bujumbura EGL Energie des Grands Lacs FAC Fonds d'Aide et de Cooperation FED Fonds Europeen de Developpement ICO InternationalCoffee Organization INCN Institut Nationalpour la Conservationde la Nature MATE Ministere de l'Amenagement,du Tourisme et de l'Environnement MCI Ministere du Commerce et de l'Industrie MCIA Minist4redu Commerce, de l'Industrie et de l'Artisanat MDRA Ministeredu DeveloppementRural et de I'Artisanat MEM Ministbrede l'Energie et des Mines NES National EnvironmentalStrategy ONATOUR Office Nationalde la Tourbe PIP Public InvestmentProgram PSE Programme Spdcial d'Energie SCEP Service Charge des Entreprises Publiques SEP Societe d'Entreposage du Petrole SINELAC Societe Internationalede I'electricite des Pays des Grands Lacs SPPF Special Project PreparationFacility TRC Tanzania Railway Corporation CURRENCY EQUIVALENTS 1 Burundian!7anc (FBU) = US$0.0063(Oct. 1989) 160 FBU = US$1.00 MEASUREME-NTS GWh Gigawatt-hour 1,000 MWh = 1,000,000 kWh GJ gigajoule 1000MJ = 1,000,0OOkJ kcal 3.968 British Termal Unit (BTU) 4.19 x 103 MJ kV kilovolt 1,000 volts MVA megavolt ampere 1,000 kilowatt amperes MW megawatt 1,000 kilowatt; 1000 kW MWh megawatthour 1,000 kilowatt hours = 860,000 kcal= 0.248 TOE at 34% efficiency in thermal (oil) generation TOE Tons of Oi Equivalent 10.2 million kcal 42.5 GJ MT metric tons 1,000 kilograms lb pound stbre eucalyptuswood 450 kg n pine wood 300 kg Im3 solid eucalyptus 900 kg solid pine 7.0 kg HV High voltage MV Mediumvoltage LV Low voltage ENERGYCONVERSION FACTORS Fuel GJ-i 3 MJ/unit Physical Units/TOE Liquid fuels (tons): Crude oi! 42.7 1.00 LPG 45.2 0.94 Kerosene 43.1 0.99 Jet fuel 43.5 0.98 Gasoline 44.0 0.97 Gasoil 42.7 1.00 Iustrial diesel oil 42.3 1.01 Fuel oil 41.0 1.04 Electricity (MWh) 3.6 (per def.) 4.0 Fuelwood (ton) 16W4/ 2.91 Charcoal (ton) 301a/ 1.46 4/ Air-dried wood, 15% moisture contentwet basis (m.c.w.b.). FISCAL YEAR January 1 - December 31 This report is based on the findingsof an energy assessmentmission which visited Burundi in October 1989. rhe mission comprisedT. Holtedahl(Mission Leader), P. Millan (Power Planner/Economist),R. van der Plas (Energy Planner),J.H. Neuteboom(Consultant, Forestry Specialist),C. Oudin (Consultant, Power Engineer), P.V. Pinheiro (Consultant, Petroleum Specialist), V. Hveding (Consultant, Energy
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