As part of its second compact with the Millennium Challenge Account, Burkina Faso is preparing for an in-depth reform of its electricity sector in general. These changes will affect, among others, the National Electricity Company (Sonabel).
The latter will have to review its accounting system and allow the state institutions responsible for monitoring and combating corruption to exercise their prerogatives in this regard. Its accounts will have to be separated according to the main activities of the company which are: the production, the transport and the electrical distribution mainly. The company will also have to make arrangements to dispense with the state subsidy which will ultimately be suspended for better competition with the private sector.
The MCC is also expecting Sonabel to set up high-speed electricity storage units that meet international standards in order to be able to integrate other energy sources such as solar energy into its electricity network.
It is also expected that the electricity sector will be open to private players, particularly in the electricity generation segment.
The second compact in preparation involves obtaining funding of $ 832 million to support projects to increase efficiency in the electricity sector (PREDEL), to increase the supply of electricity less costly (PADOEL) and networks and access to electricity (PRAEL).
Source: Agence Ecofin