Design an engagement strategy to enable low-access countries to mobilize sector level investment financing on the scale required, and sustained over the next 15 years, 2015&ndash 2030. Specifically, design an investment financing platform led by the government to crowd-in necessary financial resources from both public and private sources well beyond what would be possible with the Bank Group's own contributions under conventional project and transaction modes of operation. In this effort, IBRD, IDA, IFC, and MIGA should draw upon their strengths and expertise in generation and in T&D, respectively, and tailor syndication mechanisms, differentiated as appropriate for generation investments financing, and otherwise for transmission and distribution investments.
The Bank's sector-wide programs in Rwanda and Kenya show the scope for syndicating financial resources far beyond a project-by-project approach. In both these countries, development partners (multilateral banks, donors, and private sector) have made significant financing commitments that go far beyond what might have been achieved by a project by-project approach. In this context, Bank Group cooperation needs to go beyond joint projects, and involves equal engagement by WB, IFC and MIGA from the beginning, particularly in supporting low-access countries in raising more resources to move towards universal access within 15 years. Several strengths and promising trends can be built upon. Among them are IFC's experience and strength in building electricity generation capacity and its potential for promoting public-private partnerships. The World Bank, meanwhile, has been contributed extensively in T&D over the past 15 years. MIGA has built valuable experience in providing critical risk mitigation comfort through its
guarantees, particularly in low-access and low-income countries.
WB: Partially Agree. Following the dialogue on programmatic and sector-wide engagements, the Bank will support implementation of the resulting energy access programs, including through mobilization of additional (public and private) resources, where feasible. The Bank will closely collaborate with IFC and MIGA, where applicable, to draw on WBG's respective strengths and comparative advantages. However, depending on the country priorities, starting conditions, and capacities, the focus may be on the overall sector or on specific sub-sectors.
Action 3: Financing is mobilized for the Investment Prospectuses developed with the WB support
Indicators: Percentage of the new Country Investment Prospectuses that had been developed with the WBG support, which have secured financial commitments from public and/or private sources for at least one identified subproject.
Baseline: 0%
Target: 80% of Country Investment Prospectuses
Timeline: FY19
IEG notes the
prospect of private sector financing for off-grid electrifcation in the Nigeria
Electrification Project (P161885).
As indicated above, one more prospectus has been completed. In Nigeria, the Bank is following up with preparation of the Nigeria Electrification Project (P161885), which would finance off-grid electrification activities by the private sector. The Bank is also preparing the Electricity Transmission Project (P146330), which would increase the power transfer capacity of Nigeria's transmission network.
IEG notes that the IDA Myanmar National Electrification Project is supporting investments identified in the prospectus, all of which were already in place by FY2015. IFC's role in Myanmar is also noted.
The information provided for Rwanda dates back at least to FY2015 and has been acknowledged in IEG's evaluation on electricity access (FY2015).
It will be useful to provide information on WB's support to client countries with investments prospectuses, on syndicating finance from WBG and other sources.
IEG looks forward to reviewing the WBG's support for and progress made in mobilizing finance from non-WBG sources against existing, and in-process investment prospectuses, in next year's MAR
Among the completed prospectuses (Rwanda, Myanmar, and Guinea) the IDA Myanmar National Electrification Project is supporting investments identified in the prospectus including grid extension as well as off grid (solar PV systems for households, institutions, and streetlights, and mini grid systems). IFC is also active in Myanmar, including advisory services and Lighting Global support. In Guinea, a proposed $20 million Additional Finance to the $22.6 million Power Sector Recovery Project will include MV and LV network refurbishment and improvement investments identified in the prospectus. The Rwanda Investment Prospectus attracted the following investment pledges: African Development Bank: $30 million Arab Bank for Economic Development in Africa (BADEA): $10 million Government of the Netherlands: $45 million JICA: $25 million OPEC Fund for International Development (OFID): $10 million Saudi Fund: $10 million World Bank GEF/ESMAP/ CEIF: $8.3 million World Bank IDA: $70 million