In December 2004, a UNECA sponsored work conducted by CEMMATS Aggroup Ltd., a local consulting firm, interested various stakeholders in the sector to formulate an energy policy. The CEMMAT’s energy agenda for Sierra Leone in terms of policy and management represents an important down of tools that fundamentally encapsulates a multi-disciplinary structure bringing together sectors of the energy community – the Ministry of earth 4 energy review and Ability (MEP), the Ministry of Deal and Industry, the Ministry of Finance, the Ministry of Agriculture and Food Security (MAFS), Presidential Petroleum Commission, and the Ministry of Mineral Resources (MMR). These line Ministries of relevance to the energy agenda, where their various roles are goes specified, have dominated the development of the country’s energy policy. The standard premise of this multi-disciplinary structure is that it is essential for the effective and efficient coordination of the management of the country’s indigenous energy imaginations. Nonetheless, it sounds as though it willed be unattainable to coordinate these so many organizations in a country with a history of corruption and mismanagement. Simply it is not unusual to have various Ministries operating in coordination to achieve national development objectives. Besides, the particular tasks and methods of operation that mold the power of these Ministries to produce the enabling surround for individual interests to ably conduct measure contributed commercial activities with the country’s energy resources are defined.
This structure, for instance, places the Ministry of Zip Ability in a central situation as the governmental dominance responsible for the electricity and water sectors and its mandates includes sector policy formulation, sector designing and coordination. The Ministry is supported by the Office of the Permanent Secretary, the Water Supply Division (WSD), the Radiation Protection Unit, and the National Zip & Water Policy, Planning, and Coordination Unit (NEWPPCU). Below the Ministry’s purview as well is handling issues related to electrical power supply, accepting that from hydroelectric schemes and, nominally renewable energy issues related to solar and wind energy over the utilities companies – the National Ability Authority (NPA)/Bo-Kenema Ability Services (BKPS); the Guma Valley Water Party (GVWC); the Sierra Leone Water Party (SALWACO); and the Bumbuna Hydroelectric Picture (BHP).
The roles of other Ministries are restricted to handling petroleum commercializing sales under the purview of the Ministry of Deal and Manufacture and the Ministry of Finance; biomass issues (plant and animal-derived subject) especially fuel wood handled by the Ministry of Agriculture and Food Security (MAFS); and the extraction of minerals, accepting energy related minerals like coal and ore dealt with by the Ministry of Mineral Resources (MMR).
The energy sector maintains this organizational structure to develop and implement inter-disciplinary energy-related policies. The functions of these various Ministries and other authorities as they relate to their responsibilities for various energy resources are defined in the relevant Acts of Parliament (accessible via government gazettes) and pertinent rules. Some of the relevant Acts let in the NPA Act, 1982; the NPA (Amendment) Act, 2005; Forestry Act, 1998; and the Petroleum Act, 2002. There is also the draft energy policy document prepared by CEMMATS which is yet to be adopted. The policy document has been formulated in the context of average economic, friendly and environmental policies; mindful as well of the nature and linkages of the energy sector with other sectors; and the international and regional linkages of the sector.
Furthermore, seeing efficiency and economic measure, from an international investor’s perspective, inside a system of such complex oversight is took less complex with “the Sierra Leone Export Development and Investment Corporation (SLEDIC), a statutory body given by section 2 of the SLEDIC Act, 1993, with the important objective of facilitating the registration of job enterprises; assisting investors in receiving permits, licenses, certificates or clearances, as the case might be, needed for the commencement of job; providing info to potential investors on issues linking to investment funds; and assisting potential investors in identifying join guess partners in Sierra Leone”. The priority investment funds regions SLEDIC is promoting thus let in:
· Zip and power sector (independent power providers)
· Agriculture and Agro-Processing
· Excavation Sector (Kimberlite Mining)
· Petroleum Exploration and Exploitation
· Privatization of state-owned enterprises
· Establishment and development of Export Processing Zone (EPZ)
· Infrastructure (Railway, Roads, Telecommunication, Water Supply) etc.
Sierra Leone is far down the under-exploited trend in terms of its energy endowment. The fact is, there are untapped energy imaginations, that the nation needs these imaginations, and that the energy industry could coordinate the exploitation of these resources with less environmental affect. Sierra Leone’s indigenous energy resources of a renewable nature which let in biomass, solar, wind and hydropower has the potential to allow chances for Sierra Leonean households at full levels. The country’s biomass volume is about 656,000 lots of crop rots. It has an annual energy potential of 2,700 GWh that could be exploited for cooking, lighting and several power applications. A commercially viable biomass supply thus goes simply discussion about biomass facilities has not attracted much discussion and publicity by the government. The Government of Sierra Leone has not earnestly covered zip, fuel and water efficiency in full sectors of economic activity, and has not industrialized capacities for optimal use of natural resources for sustainable biomass (unicellular-energy crops-residues-waste). Simply notwithstanding its lack of concern in bio-prospecting, the government is not working to stand in the way if traditional biomass firms in Europe and the United States are interested in producing this potential in Sierra Leone.
The country also has a solar radiation potential of between 1460 kWh/m2/yr and 1800 kWh/m2/yr annually. This could be exploited for lighting and water pumping, among other applications. These resources allow an intriguing glimpse of a nation that might have had a sustainable supply of power and lucrative exploitation of its bright energy imaginations, had energy efficiency remained a core measure of the country after independence. The goal for sustained economic development and development should be seen in terms of managing the full utilization of these imaginations.
The hydro potential in the country has also been an epic story. The network of rivers in the country allows an chance for hydroelectricity with done 21 sites already known as capable of producing potential hydro ability. The conservatively estimated output at 1,200MW, recorded in the 1996 Ability Sector Master Plan by Lahmeyer International, is necessitated by the country’s extensive network of rivers and tributaries. The completion of the current Bumbuna project (Phase I capacity 50 MW, total capacity 275 MW) and the envisaged Bekongor project (Bekongor III capacity 85 MW, total capacity 200 MW) – 2 of the many large projects that are economically exploitable – is good for the development of the country and for Sierra Leone jobs. Simply the political will has to be there to have the Bumbuna project to 100% completion. There is also the require to produce the supporting surround for individual companies to invest in mini-hydro, or “run-of-the-river” hydro power stations. The Bumbuna picture, which “can eventually got the keystone of a national grid, has the potential to make a substantial positive affect on the national electricity supply” (CEMMAT Policy Document, 2004).
In terms of power infrastructure, the national power stations in the major cities and towns, which are very a collection of regional power stations, needs several recent infrastructure and recent minds. “Most of the provincial stations and electronic networks are in a state of total disrepair. The cost required to have them backward to their pre-1994 points is estimated at Euro 13 million” (CEMMAT Policy Document, 2004). The Bo-Kenema Ability Services (BKPS) which has a mixed hydro-thermal operation capacities of 5MW and 4MW at Bo and Dodo (Kenema) respectively faces the same management problems with its commercial procedures as NPA. Rural electricity supply is non-existent. A recent electricity policy is overdue, though the specifics matter, the CEMMATS draft on energy policy is instructive in this respect.
There are fairly quantified fossil fuels (hydrocarbons) with commercial measure in Sierra Leone. These let in important ignite deposits and crude oil which have not been exploited. These fossil resources have not been the right way assessed to determine their potential measure for practical and lucrative exploration. Though earlier administrations had offered to trade concessions for prospecting for oil and other valuable mineral resources in the country, there had constantly been institutional secrecy surrounding the potential existence of oil as a beginning of wealth creation for Sierra Leone. “The location, extent, and quality of the find have remained a subject of uninformed speculation, intense curiosity, and often-wild conjecture. It is a state of affairs to which several official secrecy and the lack of transparency in the conduct of world affairs in Sierra Leone have largely contributed” (Focus Sierra Leone). The Petroleum Resources Unit, under the dominance of the current President and headed by a Director–General covers to oversee the possibilities of exploration of these petroleum resources especially with European and/or American investment funds companies. It is the situation of the government of President Koroma that whatsoever economic gains that are connected to the exploration of fossil fuels should be in the concern of national growth.
Serious governance groups and the masses roundly criticized earlier administrations for inadequate assesses on energy supplies in the country. Past administrations failed to set serious bucks in the energy sector where they willed have had a direct affect on advancing adequate and sustainable supply of electricity in the country. More than chances can also have been created to effectively stand other forms of renewable energy. All in full, the energy potential is undoubtedly good. Simply more emphasis has to be placed on a more investment-friendly energy policy, particularly on opening the energy marketplace to huge capital investment funds and broadening incentives for investment funds. The reality is, there is the require (the market place) for more domestic energy and more imported energy.
The greatest endowments in the energy industry have to be accessed and retained to coordinate and expeditiously manage an A+ energy program for Sierra Leone. The country needs a balance of vision in the pattern of a grand scheme to curtail the difficulties the country faces with commercial energy supplies, particularly electricity supply. Attainable short-, medium-, and long-term paces to have the country there have to be much laid away. And spell the grand scheme is goes set in site, the government should not fail to connect energy to mood change. Global warming has proved to be as horrendous a global take exception as the War on Terror.
Greatest Investment and the Zip Market
Certainly, one major component for successful energy policy and management is financial imaginations. Simply the energy sector in Sierra Leone struggles with restricted budgets and inadequate legislation that has not permitted for the development of the energy sector, let alone allow a sustainable supply of electricity to the urban and rural customers. Clearly, done the age, earlier administrations were not in a situation where they can afford to wisely invest or yet produce an enabling surround for outside investment funds in the energy sector simply because of widespread corruption in world administration. The National Ability Authority, for instance, has unpaid debts of Le23.4 billion and unpaid client bills of Le16.2 billion as well as fuel bills to petroleum companies of Le8 billion. The utility dominance also has a defective transmission and distribution system with 35% technical reds; and an electricity drop from 28MW from five diesel engines to 6MW from one diesel engine among other troubles.
Another logistical challenges let in the procurement, storage and transportation of petroleum wares. “Sierra Leone is almost entirely dependent on imports for full its petroleum needs and machinery as well as spare parts” (CEMMAT Policy Document, 2004). Petroleum products are transported by route utilizing tankers. The poor state of the roads exacerbates some problems with transportation.
In plus, raising funds devoted to energy supply has entirely helped relatively small, made the impoverished state of the country. Sierra Leone causes have a smaller Gross National Product (GNP) with sums allocated to the sector way considerably less than investment funds took by countries with bigger GNPs. However, it is not entirely the total amount of money from the GNP that counts, simply also how that GNP allocation is supplemented by outside direct investment funds and how such investment funds in the sector are spent.
Besides, it is possible for the government to find funds to stand its energy sector. In 2001, for instance, the Public Bank Aggroup funds estimated at US$7.5 gazillion were took available to the government of Sierra Leone under former President Ahmed Tejan Kabbah to bargain a recent engine to growth electricity electrical capacity. Simply a used and poorly rebuilt 7.5 megawatts diesel engine went got.
And rather lately, “coinciding with the see of the President of Sierra Leone to the UK, Douglas Alexander, the Secretary of State for International Development announced 2 platforms of help to Sierra Leone totaling £36 gazillion [– with] £20 gazillion to stand the establishing up of energy sector in Sierra Leone [that] should allow a sustainable electricity supply to the one gazillion residents of Freetown and allow lighting and power for health centers, water pumping stations, colleges and police stations” (Press Release).
In reckon of full these possibilities, a perennial issue that must be covered in say to shape a sustainable capacity in the energy sector is a transfer of mental capacity in fellowship and among decision-makers. “No capacity-building initiatives will succeed if governments and the world are not saw to transfer the situation” (Embo Reports). Now there is desire with the recent democratic dispensation. On premiss of office, President Koroma took a pronouncement that energy is his topmost priority. To a large extent, Koroma’s Government is thus supportive of capital investment funds in the energy sector. May be, what the Koroma administration also needs to do is to stand a have energy sector initiative in capacity establishing by addressing the problem of proper allocation of funds and managing a sustainable energy supply mechanism.
The scheme already goes pursued by the Koroma administration which is the actualization of an “energy stimulus plan” for Freetown and the entire country is commendable. A Presidential Emergency Labor Force has been created to oversee the growth of electricity capacity in the country. Assesses have also been made to take individual interests in the energy sector. 2 48MW independent power producer (IPP) contracts with the Nigerian investment funds company Income Electrix and the US investment funds company DELAMORE have lately been signed by the Sierra Leone Government to bring to the capacity of electricity supply. Income Electrix has already embarked equipment and mobilizing to direction a 10MW generator at Black Hall Road to supply electricity to the east part of Freetown. A Sierra Leone Government partnership with the Nigerian company Income Electrix is a good investment funds scheme for several countries. Even though Nigeria’s focus on goes a leading saving via its oil industry has its challenges, Nigeria’s part of global oil reserves is rather impressive. The take exception for Nigeria’s oil exploitation is not a scarcity of world-scale oil reservoirs, rather it is associating those oil reserves to long-term client commitments and the capital required to shape oil refineries or multi-thousand knot pipelines. Nigeria’s oil reserves produce a terrific chance to align and integrate with Africa, rather than holding Africa hostage to scarcity. A large part of any diplomacy with Nigeria should focus on portion Nigeria to see the gains of such a relationship.
By and great, Sierra Leone’s energy “industry shows the potential to contribute as much as Le 46 billion (approximately US$ 16 gazillion) annually to government revenue in terms of Excise Taxation and Road Users Tax” (CEMMAT Policy Document, 2004). The potential is remarkable yet when the demand for energy in the industrial and commercial sectors is primarily met by self auto-generation which has negative economic consequences. Michael Conteh, resident technical consultant who is playing a coordinating role in the Ministry of Zip and Ability and its relations to the other Ministries and utility companies as well as monitoring the power system and providing technical advice to the ministry has spoken rather reassuringly about the under-exploited state of Sierra Leone’s vast energy future. Reported to his skillful knowledge of the energy sector, “currently, there are zero platforms in the country for supplementary energies. Sierra Leone’s energy mix is real restricted. Apart from cooking that is about 95% dependent on biomass, Sierra Leone is almost 100% dependent on imported petroleum products and electricity for full its energy needs.” Again, restoring the procedures of the Sierra Leone Petroleum Refinery Corporation (SLPRC) which has a distillation potential capacity of 700,000 metric lots has the possibilities of generating more revenue for the government. The corporation requires stable investment funds to sustain its distillation electrical capacity. Bringing together the five petroleum major outside oil and oil helps companies running in the country namely Mobil, National Petroleum Party (NP), Safecon, Unipetrol and Leonoil, and/or other investors inside the SLPRC is critical to revamp the refinery’s procedures and to invigorate the market’s future potential and stimulating the rise of choices.
The structure of energy royalties is spelt away in the Local Government Act, 2004 (Local Government Act, 2004). Simply Sierra Leone’s energy sector, with its multifaceted mix of world and individual actors, has a bleak history of weak monitoring, low transparency, and inadequate civil function pay and gains; and incentives for illicit get are rife. The sector has the potential to generate important cash dealings compared with other helps and infrastructure sectors such as water and sanitation or use of roads. Simply the average forms of corruption plaguing the sector involves petty corruption which is prevalent at the interface with customers when bribes are paying to or demanded by meter reviewers or safety inspectors and illicit sales event of fuel oils. There are also many illegal connections by low-income as well as high-income households and commercial establishments. The aggregate affect of “petty corruption” might be far from petty because reds might amount to more than $10 gazillion each year. Inadequate revenue collection and other corrupt practices lead to deteriorating function with frequent blackouts and supply interruptions.
The viability of the energy sector thus involves a strategic work of the complex schemes of sustainable power supply and revenue accumulation. Governments could act decisively to deal with corruption in the energy sector—most involving privatization, competitor, more transparent rules, and more disclosure. Reforms in the energy sector could be in the pattern of marketings particular activities such as the energy distribution system utilizing prepaid meters to strategic investors with a tested track record and a long-term concern in the business. The prepaid meter system currently piloted in Freetown has the potential to growth revenue collection and reduce corruption in the sector. About 2000 prepaid meters are currently in use. The government has contracted the Chinese investment funds company, the Sierra Leone Gouji Investment and Development, Ltd. for supply of 100,000 prepaid meters. “Chinese mold in the investment funds mood is growing steadily [superseding European and US investment] to the extent that a Chinese Chamber of Commerce and Manufacture went established in 2005. The government has been supportive of Chinese investment funds initiatives, apparently because of many years of Chinese government help to Sierra Leone. The Bintumani Hotel, ravaged by invading rebels in 1999, is on lease for 25 years to Beijing Construction. The Chinese have transformed a former home for the displaced, the National Workshop, into a showpiece tractor-assembly plant [from which the Gouji prepaid meters goes piloted in Freetown are also distributed]” (African Review of Job and Technology). Nevertheless, a recent Sierra Leone under President Koroma is today open for job and the reforms in the energy sector the recent administration is advancing let in as well more transparent marketplace principles and coordinating an independent regulatory body with more presidential oversight to oversee the efficient management of a more creative energy sector.
Causes to deal energy supply and coordination challenges should be placed in a large policy framework that addresses other friendly matters. More than notably, such strategies should be part of policies fashioned to use up-to-date and efficient energy helps to achieve sustainable development destinations. Adequate resources ought to be took available for investment funds in oil exploration and development activities and there has to be investor-friendly legal and regulatory framework to appeal oil exploration companies. There are issues of supply and storage limitations for various petroleum products and the necessity to re-launch refining operation in the country. And when have and unified standards for running retail outlets are also set in site, access to up-to-date and efficient energy resources is assured.
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