Ghana - Industrial energy efficiency activity, phase 1 (Vol. 1 of 2) : Main report

| @2 gJ S S E N @ N g E mX |i EEnergy Sector Management Assistmice Programme Activity Completion Report Industrial Energy Efficiency Activity, Phase I Volume I: Main Report Report No. 148A/92  JOINT VNDP / WORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (EMAP) PURPOSE Tne Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP) was launched in 1983 to complement the Energy Assssment Progmme, establishcd three years earlier. ESMAP's original pwpose was to implement key recommendations of the Energy Asement report and ensure that proposed investments in the energy sector rprested the most efficient use of scarce domestic and external resources. In 1990, an intematiotal Commission addressed BSMAP's role for the 1990s and, noting the vital role of adequate and affordable energy in economic growth, concluded that the Progrmme should intensify its efforts to assist developing countries to manage their energy sectors more effecttvely. The Comnsusion also tecommended that ESMAP concentate on making long-term efforts in a smaUer number of countries. The Commission's report was endorsed at ESMAP's November 1990 Annual Meeting and prompted an extensive reorganiation and reorientaion of the Programme. Today, ESMAP is conducting Energy A_nts, performing preinveshtmnt and prefeasibility work, and providing insttutional and policy advice in selected developing countries. Through these efforts, ::SMAP aims to assist governments, donors, and potential investors in identifying, funding, and implementing ecoomically and enviromealy sound energy strategies. GOVERNANCE AND OPERATIONS ESMAP is governed by a Consultative Group (ESMAP CO), composed of representatives of the UNDP and World Bank, the govenments and institutions providing financial support, and representatives of the recipients of ESMAP's assistance. The ESMAP CO is chaired by the World Bank's Vice President, Opetdions and Sector Policy, and advised by a Techimcal Advisory Group (TAG) of idependent energy experts that reviews the Progmme's straegic agenda, its work program, and other issues. The Manager of ESMAP, who reports to the World BanRs Vice President, Operations and Sector Policy, adiminister the Programme. The Manager is assisted by a Secrtanat, headed by an Executive Secretary, which supports the ESMAP CG and the TAG and is responsible for relations with the donors and for securing fimding for the Programme's activities. The Manager directs ESMAP's two Divisions: The Strategy and Programs Division advises on selection of countries for assistance, auries out Energy Assessments, prepares relevant programs of technical assistance, and supports the Secretariat on funding issues. The Operations Division is responsible for formulation of subsectoral strategies, preinvestment work, institutional studies, technical assistance, and trainig within the framework of ESMAP's country assistance program. FUNDING ESMAP is a coopetive effort supported by the World Bank, UNDP and odher United Nations agencies, the European Community, Organization of American States (OAS), Latin American Energy Organizaion (OLADE), and countries including Austrlia, Belgium, Canada, Denmark, Germany, Fiand, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom, and the United States. FURTHER INFORMATION For further information or copies of completed ESMAP reports, contact: The Managr or The Executive Secretary ESMAP ESMAP Consultative Group The World Bank The World Bank 1818 H Street N.W. 1818 H Sreet, N.W. Washington, D.C. 20433 Washington D.C. 20433 U.S.A. U.S.A.  ACTIVITY COMPLETION REPORT GHANA INDUSTR1AL ENERGY EFFICIENCY ACTI VJTPHASE I Volume I: Main Repowt November 1992 This documet has resticted distrbution and may be used by recipieats only in tho perfomance of their official duties. Its contens may not otherwise be disclosed widthut UNDP or World Bank authointon.  ABEU VI4IONS o cedI OWh giw hour 1.0. meal galn kg kiogam ltW klowat kWh ki tt out L liter LPG liOfied petrolewn gs MT mutria ton MW megPwatt MWh megawatt hour too ton of oil equivalent tpd tonperday tpy to per yos ACRONMS ATP Aue Tsbu ad Parte, a Ghna consulting fim CEB Communat Ebetiue du Beni CDA Canadian Inte Ina Deeopment Ageoy (CIDA) CPC coa Proesing Compay BCG Bbectrioy Corporan of Gha BEC Boag Eedtiqu de Ia C8tI 4'Ivoiro ESMAP Ene r Secor Managemet Assistance Proramm GDP Gross Domestic Prduct UAMP Ghanaian Italian Petolm Corpotion GIHOC Ghana Indutrial Holding Company NPC Gha Natonal Perlem Corpoation GOIL Ghman Oil Corpoation GTMC Ghana Textil Msnuftg Company muP Indwusl Eneg Reaario Program IPF IiveP Planning F*ue ISAC Industrial Sector Ajustmt Credit MWp Miisty of Fud NW Power MIST mistry of bIdur, Soience d Technolog NEB National Energy Board SOE S lw Enterris TFCC Tawa Food Complex Corporation UNDP United Na Deveopment Progrm UNDTCD United Nation Deveopvmt Tehical Cooperation D _atmet VALCO Volta Aminum Company VRA Voks River Authoriy OFFICIAL FISCAL YEAL Jnuary 1 - Decembwe31 CULNCY Q WIVAIZNT Cunacy Unit Cedi (o). TI avra exchang rate when de ueavity was impkmtd was US$i - Cedis 31S. ERGY CONVERSION FACTORS: 1 kWh - 3.6 Ml; I L jL oil = 40 Mi  PREFACE 1. BachgrewaL In 1986, the Energy Asessment Report on Ghana identified energy ratiolization I the Idustria sector as an importavt factor In managing energy demand and Ipwovig the geera viability of the energy setor.? In response, the Govement of Ghana reuesed technical assistce of the joint World BanWUNDP Energy Sector Managemt Asnce Programme (ESMAP) in preparing and imple an action program to promote higher efficieny in the industrial sector. 2. ESMAP Mt lYMa. Following the Ghana!an request, ESMAP completed an Industri enegy rationalizaio sdy in 198748.2 That report concluded that a government-supported ergy efficiency program In the industra sector was feasible and necesay, and suggested that the program include policy and Institutional measures as well as demosa, training, an dissnin iaves witiin the Instries. In 1989, the Government of Ghana and ESMAP agreed to start the demonstration and tralg phase of the progm. Ihe Govement of Cmada, which had already funded th pDrmiay ESMAP study thtrough thi Canadia Inteational Development Agency (CIDA), agreed to fund the demo on and training phase, entided bdusti Energy Effidency Program: Phase I 3. The Indast,l kewV Wdew PoVwg Phase L Thi activity began in eary 1989 and was completed In 1990. It was digned to (a) illustrate exisig poibilties for er conservation and otons for realizing them; (b) dieminate rel and lesson leaned from pilot btraing progrms; and (c) train Ghanaian profesionals to implement Improvements over the long term. ESMAP contracted witi an consulting firm, ACRES Ltd., to perform most of the field technical work, suevised the activity, assessed the preliminary results of the activity, and deignd the next phase of the program 4. Reports. Two types of report have been prepared in connection with the executo n of the actvity: a Vau w. ThL present downet, whkh Is an AeU* Compudon Repor prepred by ESIAP.' This report summarz the resut of the Phase I atvity and oudines the issues and activities for a possible continuon. The ESMAP report has been desiged not to overa with the consultants' reports but to 1. am. lea wd Opou h tx Euu' Sector, kba Woral Ba/URP E, Sedor Asltac FWagr.uue Report No. 6234.I Noeb 986. 2. Mme Ewe Rafti&a hx du ladt Secor, ESMA?, RepN. 8O4/88, e 1988. 3. De tMA oWer jbr th ac* ww Djmu lusdaai eaiaL Th AcJ*l v Cc. Id d, o Rpot *w preaed by Djwal M^J wfth th use of Sar Soarouu  al WtSIRL ENERYEFIlNY GHANA complemt them maly on dhe lessons larned from Phe I, and on how to build an hose lessons to design and Implemeat a frtiher phase of the progm. b. Vokn Il - _ iatne 6bsVant* boewd