Global Insight
November 3, 2008
AfDB Grants Guinea $18US.7 mil. for Electricity Project
BYLINE: Ama Egyaba Baidu-Forson
SECTION: In Brief
LENGTH: 261 words
The African Development Bank (AfDB) will provide $18US.7 million to finance an electricity project in Guinea's capital city, Conakry. According to a press release, the Conakry Electrical Networks Rehabilitation and Extension Project (PREREC) will start in 2009 and be completed over three years. It will focus primarily on "the development of distribution facilities, capacity building and project management" in Guinea's electricity sector. AfDB estimates that more than 132,000 households and 2,500 economic operators stand to benefit from the project. Overall, the AfDB will provide 62.4% of the total financing, with the remainder covered by a loan from the Islamic Development Bank (IsDB).
Significance:Guinea's electricity sector is wholly insufficient to counter the growing demand for power in the country. According to the AfDB and other sources, the national average rate of electricity access stands somewhere between 12% and 17%. The Bank's support to upgrade facilities for electricity generation, transmission and distribution is key to resolving the chronic power shortages facing Guinea. It will also strengthen the capacity of the Electricity Corporation of Guinea (EDG) and allow it to operate more efficiently and profitably. The successful completion of the project should help the Guinean authorities to address a major point of social cohesion by improving living standards for the bulk of the urban population, as well as improving the domestic business climate, which in turn will support stronger economic growth over the medium to long term.
LOAD-DATE: November 3, 2008
LANGUAGE: ENGLISH
PUBLICATION-TYPE: Web Publication
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