The overall objective is to supply energy in adequate quality and quantity to the WAEMU populations and industries by reducing power generation cost, increasing access to electricity, reducing power shortage through increased power generation and promotion of regional interconnections; and improved performance of the different economic sectors in the member countries of the Union.
The Bank’s financial support has made it possible not only to increase power generating capacities in the member countries, but also to erect more than 3,527 km of interconnection lines among them, and to reinforce as well power generation, transmission and distribution facilities on the interstate grids for a nominal power of over 1,350 MW.
As at 30 September 2016, the aggregate amount of funding provided by the Bank in the energy sector stood at FCFA863.9 billion excluding the Energy Development Fund (see below).
Beside its own actions, BOAD is a major player in the energy policy set out at the WAEMU level.
The Regional Initiative for Sustainable Energy (IRED)
In order to better overcome recurrent energy crises in many of the WAEMU member countries, the Conference of Heads of State and Government decided in January 2008 to set up a committee tasked with proposing a strategy called “Regional Initiative for Sustainable Energy (IRED)”.
The initiative aims to provide, by 2030, 100% access to electricity in the WAEMU region at lower cost and as part of a large integrated and harmonized power pool market in West Africa. This regional market will be based on a dynamic public-private partnership. It also targets an increase by 82% of renewable and sustainable energies in the WAEMU’s power generation base.
The financial and institutional mechanism for the implementation of the initiative includes a concessional Energy Development Fund (FDE), and an investment fund operating as a private infrastructure development facility.
The Energy Development Fund (FDE)
Established on 25 September 2009, the Fund aims to contribute to improved access to energy in the WAEMU member countries and promote the development of sustainable energy under concessional conditions in order to finance projects eligible for IRED initiative. It is managed by BOAD.
The Fund started its operations in the first quarter of 2010. As at30 September 2016, 14projects were financed in the form of loans involving a total amount of FCFA229.7 billion.
The Infrastructure Development Fund
It is dedicated to private investments. It is a profit-making fund meant for financing access to electricity in the WAEMU region according to market terms and conditions. In addition, it aims to support the restructuring of electricity companies, the emergency programme and the medium and long-term projects. It will be a lever for public-private partnerships in the energy sector in the WAEMU region. The due diligence towards its implementation is underway at the level of BOAD.
The Bank participated in the implementation of major projects including:
- Mali-Côte d’Ivoire electric power interconnection of by Energie du Mali (EDM);
- Electrification of the townships of Bakel, Selibaly and Goureye in Senegal by Société de Gestion de l’Energie de Manantali (SOGEM);
- Expansion of CIPREL SA’s power plant capacities in Côte d’Ivoire (CIPREL IV A);
- Expansion in combined cycle of the generation capacities of AZITO power plant by SOCIETE AZITO ENERGIE SA in Côte d’Ivoire.