Angola - Power rehabilitation and technical assistance

||ggE1g1ffiXEEl121i1i EnergyS 8ector Management A&istanceProgramme Power Rehabilitation ad Techn ica Asoistance Report No. 142/91  JOINT UNDP/WORLD BANK ENERGY SECTOR MANAGEMENT ASSISTANCE PROGRAMME (ESMAP) PURPOS-E The Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP) was launched in 1983 to complement the Energy Assessment Programme which had been established three years earlier. An international Commission was convened in 1990 to address the creation of ESMAP's role in the Nineties. It concluded that the Programme had a crucial part to play over the next decade in assisting the de'eloping countries to better manage their energy sectors given that the supply of energy at reasonable prices is a critical determinant of the pace and magnitude of the growth process. The Commission's recommendations received broad endorsement at the November 1990 ESMAP Annual Meeting. Today, ESMAP is carrying out energy asses;ments, preinvestment and prefeasibility activities and is providing institutional and policy advice. The program aims to strengthen the impact of bilateral and multilateral resources and prvate sector investment through providing technical assistance to the energy sector of developing countries. The fndings and recommendations emerging from ESMAP activities provide govermuents, dorors, and potential investors with the information needed to identify economically and environmentally sound energy projects and to accelerate their preparatton and implementation. ESMAP's operational activities are managed by two Divisions within the Industry and Energy Department at the World Bank and an ESMAP Secretariat. * The Programme's activities are governed by the ESMAP Consultative Group which consists of its co- sponsors, the UNDP and the World Bank, the govermments which provide financial support and representatives of the recipients of its assistance. The Chairman of the Group is the World Bank's Vice President, Sector Policy and Research. HA is assisted by a Secretariat headed by the Group's Executive Secretary who is also responsible for relations with the donors and securing funding for the Programme's activities. The Secretariat also gives support and advice to a Technical Advisory Group of independent energy experts which meets periodically to review and scrutinize the Programme's strategic agenda, its work program and other issues related to ESMAP's functioning. 0 The ESMAP Strategy and Programs Division is responsible for advising on which countries should receive ESMAP assistance, preparing relevant ESMAP programs of technical assistance to these countries and supports the Secretariat on funding issues. It also carries out uroadly based studies such as energy assessments. e The ESMAP Operations Division is responsible for the detailed design and implementation of tasks consisting mainly of sub-sectoral strategy formulation, preinvestment work, institutional studies, technical assistance and training within the framework of overall ESMAP country assistance programs. The ESMAP represents a cooperative international effort supported by the World Bank, the U-dted Nations Development Programme and other United Nations agencies, the European Community, Organization of American States (OAS), Latin American Energy Organization (OLADE), and a number of countries including Australia, Belgium, Canada, Denmark, Germany, Finland, France, Iceland, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Sweden, Switzerland, the United Kingdom and the United States. FURERE INFORMATION For fiuther information or copies of completed ESMAP reports, contact: Office of the Director QR The Executive Secretary Industry and Energy Department ESMAP Consultative Group The World Bank The World Bank 1818 H Street N.W. 1818 H Street, N.W. Washington, D.C. 20433 Washington, D.C. 20433 U.S.A. U.S.A.  ANGOLA POWZR ALITATION AND TENICAL ASSSfTANCE PRIORTIESFOR INVESTNMNT AND TECHIMCAL ASSITANCE IN THE ELECTIC POWER SECTOR October 1991 To Word Bank Wa ton, D. C. 20433 MThdcisa has retrcted dlsutuludon and may be use by recIpIent only In do pedommp of th* offical dati. oo may no otenws be didn wkotUD oodBn  ABSTRACT Economic and political dislocations since 1975 have left the country with virtaly no compete maagerial, technical, or skilled staff. Although Angolan electic utilities are striving to maintin sevioe, the power sector has suffered more than a decade of neglect. This has been mainly caused by the economic crisis ad damage to physical assets as a result of sabotage and the ravages of the civil war as well as shortages of skilled personnel at all levels and lack of adequate sector management. The Declaration of Peace signed on May 31, 1991, has focussed attention on the task of reconstruction, which will include economic reforms, rehabilitation of the physical infrastructure as well as training in the efficient operation and maintence of the electric power system after rabilitation. The proposals made in this report are designed to: increase the effectiveness of the power sector by resablishing electricity supply to eonomicaSly key areas; improve local capacity to rehabilitate and expand the electric networks; and lay the foundation for more efficient use of energy resources, sector reorganization and greater atention to the environmental impact of energy resource use. The proposals include rehabilitation of the physical facilities including hydro and thermal plants, the distition networks of Luada, Lobito and Benpela and Huambo, as well as the main transmission ln in the Northern, Central and Southern Systems. The report recommends dth the highest priority in t rehabiitation program should be given to transmission lines. The areas of activities that are proposed as the core of the technical assistance component to the electric utilities are: accounting, stock management, instiution strengthening - particularly in manpower trahing, and in the coordination and management of ongoing and future rehabilitaion projects. A twinning arTgemenut with an operating utility or consortium is proposed for the management of the rehabilitaton program. Such an arrngement would facilitate the transition from rehabilitation to opion and maance of the rehabilitated system and practical training of technicians. Although the Capanda hydroelectric project did not represent the least-cost investment when hie project was begun, it now hs reached a stage of completion where it is no longer economically feasible to abandon k. he recommended total investment in direct rehabilitation eeses as well as technical astance amounts to US$ 343 million, adjusted to Januay 1990 price levels. At present France, Portugal, haly, Spain, Sweden, Norway, and the Affican Developmet Bank have approved or are negotiating finani for rehabil of the Angola power system, in an amount close to US$ 145 million. A finacing gp of about US$ 198 million therefore remains tO be closed if aU rom ons for equipme and servces are to be Implemented.  z S ]ng g XI lMI 1 > ~~jSl } stl | tS |1i,|11t