The President of the Republic has signed a decree creation, organisation and functioning of the Electricity Sector Development Fund. The decree was signed on Wednesday August 19, 2020.
The Electricity Sector Development Fund is a special allocation account outside the Treasury dedicated to the development of the electricity sector.
The decree also stipulates that the budgetary envelope of the Fund is subject to prior registration annually in line with the framework of the finance law.
The Fund is placed with the Ministry in charge of electricity and The Minister in charge of electricity is the authorizing officer of the Fund.
According to the decree, Fund will be destined for the financing of the development of the electricity sector; which includes the elaboration of policies and strategies in matters of electrical energy and the putting in place of infrastructure.
Missions Of The Electricity Sector Development Fund
According to the decree, the Fund’s missions are to finance:
Public policies and strategies for the development of the electricity sector; activities relating to the development and implementation of policies and strategies in the sector of electricity studies relating to the planning and development of activities in the electricity sector
Promoting investments in the electricity sector;
– Feasibility studies and investments necessary for the realization of electricity sector infrastructure;
– Operations relating to the preparation and organization of calls for tenders with a view to selecting the operators of the power plants, as well as the operators of the management activities of the transmission, transmission and distribution network of electricity
– The participation and contribution of the State for the legal, technical and financial structuring of projects in the electricity sector
– The State’s contribution in real expenditure within the framework of jointly financed projects.
It also ensures monitoring, regulation and control of activities in the electricity sector; which include monitoring and control operations of water storage activities for the production of electricity, production, transport, distribution, import, export and sale of electricity amongst others.
Resources for the Fund
The decree also indicated that resources will be from the State budget in respect of its contribution or participation in legal and financial structuring operations for projects in the electricity sector
– A share of State dividends in respect of its acquisitions participation in companies in the electricity sector as determined by the state finance law;
The decree also makes it clear that depending on the economic conditions, the rate of the annual contributions of operators holding a concession and / or license title in the electricity sector may be revised by joint order of the Minister in charge of electricity and the Minister in charge of finance.
The Fund’s resources are collected by the Electricity Sector Regulatory Agency and deposited in a special non-Treasury account, opened at the Central Bank by the Minister in charge of electricity.
The Electricity Sector Regulatory Agency ensures the effectiveness of the payment of contributions from the operators concerned in the electricity sector.
The operators of the electricity sector are required to make the payment of their contributions for the past year by March 31 of the following year at the latest.
Projects And Activities Committee
The decree also created a Committee to validate the priority projects and activities of the Fund. The Committee assists the Minister responsible for electricity in the validation, monitoring and evaluation of priority projects and activities to be financed by the Fund, within the framework of carrying out the missions assigned to it. It also defines the criteria for appraising the services within the framework of the missions allocated to the Fund.
The Committee validates and submits to the Minister responsible for electricity, no later than June 30 of the fiscal year, the list of priority projects and activities likely to be financed by the Fund for the following financial year.
Membership of the Committee
The Committee is composed of a President; a personality appointed by the Prime Minister – Head of Government, on the proposal of the Minister responsible for electricity.
The Members include one representative each from the Ministries in charge of electricity; in charge of finance; regional planning, the Directors General of the Regulatory Agency for the Electricity Sector; National Electricity Transport Company; Electricity Development Corporation; the General Manager of the Rural Electrification Agency; – a representative of private operators in the electricity sector.
It also stipulates that the Chairman of the Committee is appointed for a term of three years, renewable once and the Chairman of the Committee cannot continue to sit at the end of his term of office.
The members of the Committee are also appointed by the administrations and organizations they represent, for a term of three years, renewable once.
It also adds that when a member loses the capacity for which he sits on the Committee, he immediately ceases to be a member. In this case, the structure it represents proceeds with a replacement.