Engage decisively and intensely on countries with low electricity access (most of which are in Sub-Saharan Africa). This evaluation highlights large gaps in country coverage and weak engagement in low-access countries. In line with the Country Partnership Frameworks, the Bank Group should broaden and deepen its engagement in low-access countries to help them address the huge shortfalls in investment, capacity building and knowledge resources needed to move towards universal access in 15 years.
The Bank Group's engagement has been shallow and sporadic in the electricity sectors of the majority of low-access countries. During FY2000 - 2014, in the 51 low-access countries (including 22 fragile and conflict-affected states, or FCS), the Bank Group approved no projects in 14 countries, one project each in 10 countries, and two projects each in 7 countries. IFC was absent in 29 of the 51 low-access countries, and had only one or two operations each in 15 countries. MIGA operated in only 8 of the 51 low-access countries. Low-access countries received only 22 percent of World Bank lending commitments and 6 percent of IFC investment commitments for the electricity sector over the past 15 years.
WB: Agree. Management wishes to emphasize the critical role of government's ownership and commitment for successful programs. The WBG engagements in electricity access are determined based on multiple factors, taking account of competing priorities for limited development resources, opportunity for impact, and selectivity.
The WBG will duly consider and support energy access needs of low-access countries, as identified in the country engagement process.
Energy access is one of the priority areas acknowledged by the WBG. To operationalize its commitment, the Bank has recently created an Energy Access Global Solutions Group and an Energy Access Global Lead role. This Group will provide expertise, advice and additional technical inputs to low-access countries that have identified energy access as a priority.
IFC Management has already placed a priority on electricity access as a central part of IFC's overall business strategy. This strategy involves efforts in FCS countries as well as many countries that are part of the "low access country" list introduced in the evaluation. If population is factored into the calculation, IFC has portfolio or new business engagements that will potentially serve more than fifty percent of the people in the low access country list within Sub-Saharan Africa. Lastly, while IFC Management thanks IEG for the low access country list and will continue to ensure that focus is placed on countries that have low access as part of its efforts, it is important to note that a focusing of our priorities on such a list could lead to sub-optimal outcomes, such as a lack of prioritization on key countries like Nepal and Bangladesh that are classified as high and medium access respectively, based on the methodology used to prepare the list.
Action 1: Energy Access Global Solutions Group (GSG) develops a business plan with an emphasis on increasing engagement in low access countries
Indicators: GSG Business Plan endorsed by GEEDR Leadership Team, covering Quality Enhancement, Talent management, Knowledge and learning, and Partnership and Outreach. The business plan will identify country-specific high impact opportunities where the WBG has a realistic potential for making significant impacts. Specific attention will be placed on low electricity access countries and business models ripe for scale-up, as well as opportunities for crowding in development partners and private sector.
Baseline: IEG estimate: WBG engagement in 75% of low electricity access countries
Target: Energy issues fully considered in all SCDs prepared for low electricity access countries. WBG Energy sector engagement in 100% of low electricity access countries which prioritize energy in the Bank engagement document (CPF, CAS, etc.) over the FY15-20 period. Engagement to be defined as described in the relevant engagement document and/or as agreed with country management.
Timeline: FY15-20
IEG notes the incremental progress under this Action through initiating re-engagement with Chad.
Regarding the Energy Access Business Plan presented to the Leadership Team in FY2016 (and referred to in the management's update for FY2016), the management is requested to provide an update regarding progress with respect to Low Access countries.
As noted in the 2016 update, of the 44 'low access' countries actively engaged with the Bank, only three did not have power sector programs: Cambodia, Timor-Leste, Chad. The current status of these is given below:Cambodia: Status unchanged. Energy not prioritized in Bank engagement document. No active power sector engagement.Timor-Leste: Energy not prioritized in Bank engagement document. No active power sector engagement.Chad: Reengagement initiated. Energy Sector Note expected to be completed in FY18. Future lending engagement to be guided by country dialog around this note.
IEG notes the Energy Access Business Plan which has been endorsed by the EEX GP's Leadership Team. As per the presentation provided by the management, IEG is pleased to note that the GP intends to deploy its efforts for rapid scale-up in several low access countries (Liberia, Central Africa Republic, Burkina Faso, Niger, Tanzania, Congo, Dem Rep. Rwanda, Papua New Guinea, Uganda, Mozambique, Mauritania, and Zambia), and deepening engagement in Kenya, Mali, Guinea, Ethiopia, Angola, Benin and Haiti, and Tuvalu. The presentation also proposes an "accelerated path to energy access in using new approaches and partnerships in 3+ countries as its vision for FY18 and to identify immediate opportunities for scaling up in the existing portfolio and pipeline, particularly in low-access countries. Collaboration is to be launched with non-traditional EA partners. Elements of a talent management plan are proposed.
At the same time, it is noted that EEX continues to monitor the situation in respect of low access countries, and that EEX is hopeful that a constructive engagement opportunity will emerge. There are few details on the time line or targets.
Overall, IEG looks forward to reviewing the incremental progress in respect of the above plans in the current year, in the next MAR.
The GSG presented an Energy Access Business Plan to the Leadership Team and secured its endorsement in FY16. An update was presented and endorsed in FY17. This plan presents four scale-up strategies: Densification, Slum Electrification, Off-Grid, and Clean Cooking (slide 28). Specific countries were identified as promising targets for these strategies (slide 29). The first strategy is already mainstreamed and simply requires additional emphasis. The other three are supported by specific ESMAP programs (Urban Energy, Clean Mini-Grids, and Clean Cooking).
The IEG review identified 50 'low access' countries. Of these, 6 are not actively borrowing from the Bank (Republic of Korea [non-member], Somalia, Sudan, Eritrea [non-accrual status], Namibia, and Equatorial Guinea [not actively borrowing]). Hence among the 50 countries, only 44 have active engagements described in engagement documents (CPFs, etc). Two of the remaining countries did not prioritize energy in their CPF (Cambodia, Timor-Leste). Energy is expected to be fully considered in their respective upcoming SCDs. Of the remaining 42 countries, which are those which prioritize energy in their Bank engagement documents, the Bank has an active energy engagement in 41 (i.e. 98%). The only exception is Chad, which has shown extremely weak willingness to engage substantively with the Bank in the power sector. EEX continues to monitor the situation, and is hopeful that a constructive engagement opportunity will arise within the reporting period.