Abu Dhabi, November 25, 2013—IFC,
a member of the World Bank Group, signed an advisory agreement with the
government of Guinea to structure and implement a public private partnership
for Electricité de Guinée, the national power distribution company. The
mandate will be implemented in parallel with the World Bank's power sector
recovery project, providing a huge boost to Guinea's efforts to improve
EDG’s performance and attract significant new investment in the country's
Guinea has identified the challenges in the power sector as a key impediment
to the country’s economic growth. Access to electricity is very low: 17
percent in urban areas and 3 percent in rural areas. The challenges in
the power sector are mainly as a result of poor performance of electricity
distribution under EDG, which suffers from a range of problems including
infrastructure, maintenance of assets, blackouts, theft and losses, billing
and collection rates, and poor financial performance.
Guinea's Ministry of Energy is working closely with the World Bank Group
to structure and implement a management contract whereby a private operator
will improve EDG’s performance. Today's agreement confirms that IFC’s
PPP Advisory Services will be the advisor on the operator selection process.
IFC will assist the Government of Guinea in identifying qualified companies
and awarding the management contract for EDG.
Kerfalla Yansané, Minister of State for Economy and Finance of the Republic
of Guinea said, "We have signed important agreements including an
advisory services contract with IFC, which is ready to help us develop
public private partnerships, including the national electricity utility
Electricité de Guinée." His remarks were made at the end of a two-day
development partner and investor conference under the theme: Guinea is
Jean Philippe Prosper, IFC Vice President for Sub-Saharan Africa, Latin
America and the Caribbean, said "An efficient power sector with increased
investment and improved management in distribution is a critical building
block for a revitalized Guinean economy that attract new investment and
create jobs. IFC is absolutely committed to maintaining a leading role
in the country to ensure that private investors make a difference."
Since 1989, IFC has been at the forefront of advisory services in all infrastructure
sectors including power, water, agribusiness, transport, irrigation, health
and education. IFC has worked on more than 300 private-sector participation
transactions worldwide, many in challenging regions or countries which
have difficulty attracting investors.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit