Contacts: In Washington: Herbert Boh (202) 473-3548 hboh@worldbank.org  In Conakry: Tabara Barry Sakho (224) 41-50-61 41-27-70 tbarry@worldbank.org  WASHINGTON, May 15, 2008 – The World Bank Board of Executive Directors endorsed the management by the International Bank for Reconstruction and Development (the World Bank), acting as implementing agency, of a US$4.5 million grant approved by the Global Environment Facility (GEF) to fund a Guinea Electricity Sector Efficiency Improvement Project.  This project will be cofinanced by an International Development Association (IDA) credit, approved on June 26, 2006.  The objective of the project is to improve the commercial and operational efficiency of the electricity sector in the country. The project will also contribute to environmental protection by reducing carbon dioxide emissions created by energy losses.  The GEF funding will contribute to the overall project objectives through: (i) co-financing distribution efficiency improvements, including investments in upgrading distribution network, implementation support and training, (ii) design of energy efficiency and demand side management programs and implementation of pilot initiatives in this area (distribution of efficient light bulbs, energy audits), and (iii) other technical assistance to Electricité de Guinée (EDG) related to improving energy efficiency.  Designed as a pilot project of the Guinean Government supported by the World Bank, this project seeks to improve, on an urgent basis, electricity distribution and the institutional framework, with a view to enhancing the technical and commercial performance of the Guinean Electricity Company. For the most part, implementation will target Kaloum commune in Conakry, the capital, with specific interventions in other communes, as opportunities arise. The outcome of this pilot project will serve as the basis for the ongoing improvement of electricity service in other areas of Conakry and in the rest of the country.  In the long run, the project should ease the financial burden placed by this sector on the Guinean economy.  "I am confident that this additional financing, which supplements efforts already underway, will make a significant contribution to improving the quality of electricity, one of the key elements of the Government's Minimum Emergency Program [Programme Minimum d’urgence du Gouvernement]â€, said Siaka Bakayoko, the World Bank's Country Manager for Guinea.  Project execution will revolve around three components: (1) enhancing the effectiveness of the distribution network; (2) rehabilitating and maintaining existing facilities; and (3) institutional strengthening through targeted technical assistance.  Specifically, the project will contribute to bolstering efforts underway by the EDG to improve its performance in the area of management, to curb fraud, and to develop and support the implementation of an electricity pricing policy that takes inflation into account as well as the projected improvement in the overall efficiency of the sector. It will also help with the implementation of the necessary support measures which, together with the abovementioned efforts, will lay the groundwork for appropriate partnerships with the private sector by assisting the Government of Guinea with the formulation of a suitable policy for the sector.  The duration of project execution will be three years. Â
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