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Burkina Faso - Energy Sector Reform Support Programme (PARSE) - Appraisal Report

16-Aug-2018

PARSE is a continuation of the Energy Sector Support Programme (PASE) financed by the Bank in 2015 through an energy crisis response budget support (CRBS) to Burkina Faso. PASE1 was the Bank’s rapid response to enable the country to mitigate the effects of the crisis that had seriously disrupted its petroleum product and power supplies. The Programme enabled Société Nationale Burkinabè d’Hydrocarbures (SONABHY, the national oil company) to replenish its petroleum products safety stock, thus ensuring the regular supply of fuel to the thermal power generation units of the national power utility, SONABEL. It also supported the signing and implementation of performance contracts between these two corporations and the Government in order to improve the sector’s financial situation by clearing crossed-debts, among other things. To strengthen the financial balance and increase investments in the sector, the Government initiated a comprehensive reform in 2016 that led to the adoption of Law No. 14-2017/AN laying down the general regulations of the energy sector in April 2017. An “industrial and handicraft processing” sector policy paper was also adopted to set the country’s major energy targets for the next decade. Following a request submitted to the Bank by the Government, there are plans to support the implementation of this major reform through this operation.

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