Somalia plans on lowering electricity costs as recovery project launched

THE GIANT AFRICA NEWS|MOGADISHU: Somalia has started a programme to rebuild its electricity grid, signalling a further step to emerge from years of violence in which most state institutions and agencies were destroyed.

Prime Minister Hamza Abdi Barre officially launched the Somali Electricity Sector Recovery Project (SESRP) on Wednesday, aiming at increasing access to affordable and reliable electricity to the Somali people, as well as re-establishing the electricity supply industry across Somalia.

The Ministry of Energy and Water Resources will implement the project in partnership with the World Bank Group.

The energy portfolio’s Director-General Abdirizack Mohamed Muhumed, while explaining the strategic importance of the energy sector to the socio-economic development of the country, said Somalia wants to rebuild the economy by making power supply certain and affordable, he said.

Lower cost of electricity

Mr Ahmed Hussein Baraki, the Minister for Energy and Water Resources in the Jubaland State of Somalia, lauded the SESRP project and highlighted the need to lower the costs of electricity in Somalia so as to increase access and resiliency for the underprivileged communities throughout the country. He spoke on behalf of the energy ministers of all the five Federal Member States (FMS).

Since the collapse of the military-led central government of the late General Mohamed Siad Barre in 1991, all public services had fallen into the hands of the private sector.

Mr Abdifatah Mohamed Ali, the CEO of the National Energy Corporation of Somalia (NECSOM), underlined the private sector’s preparedness to support and cooperate with the Somali government on the development of the energy sector. He spoke on behalf of Somali electricity service providers.

With the help of the World Bank Group, SESRP is seen as a major contributor to a reformed energy sector in the Horn of Africa country where consumers pay some of the world’s highest prices for electricity.

According to Power Africa, a continental scheme by the US government, electricity providers in Somalia charge up to $0.65 per kilowatt-hour, mainly delivered through isolated diesel-powered grids. In many parts of the world, consumers pay less than half of that.

Have great impact

“The project (SESRP) will have great impact on the Somali people by improving the reliability of electricity supply, which will hopefully stimulate the productivity of the private sector,” said Ms Kristina Svensson, the World Bank Group country manager.

She praised the project’s contribution towards increasing public service delivery through electrification of public health and education facilities.

The European Union Somalia delegation endorsed Ms Svensson’s view.

EU Chargé d’affaires Hadrien Maillard expressed support for the leadership of the Ministry of Energy and Water Resources and the creation of an enabling environment in the sector, underlining the project’s importance to the realisation of the objectives of Somalia’s Power Master Plan.

At the event, Somalia Prime Minister Hamza Barre said the private sector will be key in rebuilding the country’s power supply lines.

“As we are grateful to the private sector who invested their wealth in the country’s electricity supply industry in difficult times, we call upon them to strengthen their cooperation with the government to the end of realising lasting prosperity for our nation,” Mr Barre said.

Failed dams projects

The most daring attempts to electrify Somalia were by projects initiated by the military-led government in the 1970s and 1980s via the Faanoole and Baardheere dams, both planned and partly constructed on River Jubba, one of the two permanent watercourses in Somalia.

But the projects failed, partly due to mismanagement or destruction following the collapse of the Siad Barre government.

Mr Jama Taqal Abbas, the Minister of Energy and Water Resources, expressed optimism that the sector will grow.

“The Ministry of Energy and Water Resources [is committed] to pioneer efforts aimed at expediting the sector reform agenda, through public sector institutional capacity building, sector infrastructure upgrade and robust business development support for the private sector,” he said