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CASE STUDY 19: BURKINA FASO – RURAL ELECTRIFICATION PROGRAMME

 Barriers              Lack of willingness from local banks to invest in rural electrification projects

 Instrument            Grants and long term credit facilities

 Application           n/a

 Amount                n/a


PROJECT BACKGROUND AND OBJECTIVES                          OUTCOMES
In Burkina Faso, rural electrification and expansion       By administering the grants and loan, the rural
is the responsibility of a single national distribution    banks will become familiar with the types of
company, while isolated grid projects are done by          projects and will built relationships with electricity
local communities through cooperatives. The Rural          cooperatives. After proving that electricity
Electrification Fund (REF) aims to provide                 cooperatives are able to pay back the loan from
investments required for rural electrification             REF, if there is a need for more investment, the
projects and to administer trust between electricity       rural banks will be more likely to provide a
cooperatives and rural banks.                              commercial loan for rural electrification projects.
INSTRUMENTS USED
The REF provides 75-80% grants to rural
investment projects; with the remaining 20-25%
investment is provided in the form of 10 year loan
on concession terms.
INSTITUTIONAL ARRANGEMENTS
The grant and loan are to be administered by a
rural bank on behalf of REF.




1 | R E F I N e www.worldbank.org/energy/refine