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    PPPs in power transmission in Africa to be addressed at Future Energy Central Africa

    According to Samuel Oguah, an energy specialist with the Energy and Extractives Global Practice at the World Bank, “The Linking up: Public-Private Partnerships in Power Transmission in Africa report has a very simple message: the private sector is already actively involved in power generation in Africa, and the same could happen in the transmission sector as has happened in other parts of the world under what we are calling the independent power transmission (IPT) model.”
    PPPs in power transmission in Africa to be addressed at Future Energy Central Africa
    © gui junpeng – 123RF.com

    Oguah is a co-author of the report which will be discussed during the upcoming Future Energy Central Africa, taking place from 2-3 October in Yaoundé, Cameroon. The event will also feature a ministerial opening session with the energy ministers from Cameroon, Equatorial Guinea and Central African Republic. The Cameroon Ministry of Energy and Water will also announce that it is looking for project developers for new, upcoming projects with a capacity of 150MW by 2019.

    Scaling up private sector participation

    Oguah says the World Bank report “provides practical guidelines for government officials and industry practitioners in Africa on how to scale up private sector participation in the power transmission sector. These include developing clear policies, crafting legal and regulatory frameworks, testing various models, ensuring adequate revenue and credit enhancements as needed, amongst others. We are looking forward to an interesting panel discussion”.

    Given the examples of failed concessions in utilities, why does the World Bank energy specialist think IPTs will work? He replies: “Concessions typically have a much wider scope and often require a stronger regulatory environment. While there is always going to be the need for sector-wide regulatory reform, the IPT is better insulated from overall sector reforms because it is project specific. A private company can successfully participate in a long-term contract to build, operate, maintain and finance transmission lines. This is why we see a higher chance of success with this model. This is not to say it can be applied in all cases or under all conditions. There are pre-requisites as outlined in our report but we see potential for its application.”

    Regional strategic gathering

    Future Energy Central Africa, formerly known as iPAD Cameroon Energy Infrastructure Forum, has evolved into a regional strategic gathering that will allow neighbouring Angola, Cameroon, Central African Republic, Chad, Democratic Republic of the Congo, Republic of Congo, Equatorial Guinea, Gabon, Sao Tome and Principe to share their expertise, project developments and plans in order to facilitate regional grid integration.

    Read the full interview with Samuel Oguah here. For more information on Future Energy Central Africa, click here.

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