In December 2004, a UNECA sponsored study conducted by CEMMATS Aggroup Ltd., a localized consulting firm, involved varying 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 set of tools that fundamentally encapsulates a multi-disciplinary structure bringing together sectors of the energy community – the Ministry of earth 4 energy scam and Power (MEP), the Ministry of Deal and Industry, the Ministry of Finance, the Ministry of Agriculture and Food Certificate (MAFS), Presidential Petroleum Commission, and the Ministry of Mineral Imaginations (MMR). These line Ministries of relevance to the energy agenda, where their varying roles are goes specified, get ruled the growth of the country’s energy policy. The basic premise of this multi-disciplinary structure is that it is essential for the efficient and efficient coordination of the management of the country’s indigenous energy resources. Nonetheless, it voices as though it willed be unimaginable to coordinate these so some establishments in a country with a history of corruption and mismanagement. But it is not unusual to get varying Ministries workings in coordination to achieve national growth targets. Besides, the special tasks and methods of operation that mold the ability of these Ministries to create the enabling surround for individual concerns to ably deal measure contributed commercialized actions with the country’s energy resources are defined.

This structure, for example, places the Ministry of Energy Power in a central situation as the governmental authority responsible for the electricity and water sectors and its mandates accepts 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 Energy & Water Policy, Planning, and Coordination Unit (NEWPPCU). Under the Ministry’s purview as best is handling issues associated to electrical ability supply, accepting that from hydroelectric schemes and, nominally renewable energy issues associated to solar and wind energy through the utilities companies - the National Power Authority (NPA)/Bo-Kenema Power Helps (BKPS); the Guma Valley Water Company (GVWC); the Sierra Leone Water Company (SALWACO); and the Bumbuna Hydroelectric Project (BHP).

The roles of another Ministries are limited to handling petroleum selling gross sales under the purview of the Ministry of Deal and Industry and the Ministry of Finance; biomass matters (plant and animal-derived matter) particularly fuel wood handled by the Ministry of Agriculture and Food Certificate (MAFS); and the extraction of minerals, accepting energy associated minerals like coal and ore dealt with by the Ministry of Mineral Imaginations (MMR).

The energy sector maintains this organizational structure to produce and implement inter-disciplinary energy-related policies. The functions of these varying Ministries and another authorities as they relate to their responsibilities for varying energy resources are outlined in the relevant Acts of Parliament (accessible via government gazettes) and pertinent regulations. Some of the relevant Acts include the NPA Act, 1982; the NPA (Amendment) Act, 2005; Forestry Act, 1998; and the Petroleum Act, 2002. There is besides the draft energy policy document prepared by CEMMATS which is yet to be adopted. The policy document has been formulated in the context of regular economic, friendly and environmental policies; mindful as best of the nature and linkages of the energy sector with another sectors; and the international and regional linkages of the sector.

Furthermore, finding efficiency and economic value, from an international investor’s perspective, inside a scheme of such complex oversight is made less complex with “the Sierra Leone Export Development and Investment Corporation (SLEDIC), a statutory body established by section two of the SLEDIC Act, 1993, with the primary objective of facilitating the registration of job enterprises; assisting investors in acquiring permits, licenses, certificates or clearances, as the subject might be, required for the commencement of job; leaving information to future investors on issues linking to investment; and assisting future investors in identifying joint venture partners in Sierra Leone”. The priority investment regions SLEDIC is promoting hence include:

· Energy and ability sector (independent ability providers)

· Agriculture and Agro-Processing

· Mining Sector (Kimberlite Mining)

· Petroleum Exploration and Exploitation

· Privatization of state-owned enterprises

· Establishment and growth 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 requires these imaginations, and that the energy industry can coordinate the exploitation of these resources with less environmental impact. Sierra Leone’s indigenous energy resources of a renewable nature which include biomass, solar, wind and hydropower has the future to allow chances for Sierra Leonean households at full points. The country’s biomass volume is about 656,000 lots of crop wastes. It has an annual energy future of 2,700 GWh that can be exploited for cooking, passing and some ability applications. A commercially vital biomass supply therefore goes but discussion about biomass facilities has not attracted lots discussion and publicity by the government. The Government of Sierra Leone has not seriously covered energy, fuel and water efficiency in full sectors of economic activity, and has not industrialized capacities for optimal function of average resources for sustainable biomass (unicellular-energy crops-residues-waste). But notwithstanding its lack of interest in bio-prospecting, the government is not working to stand in the way if traditional biomass firms in Europe and the United States are involved in formulating this future in Sierra Leone.

The country besides has a solar radiation future of betwixt 1460 kWh/m2/yr and 1800 kWh/m2/yr annually. This can be exploited for passing and water pumping, among another applications. These resources allow an intriguing glimpse of a nation that mightiness get got a sustainable supply of ability and profitable exploitation of its bright energy imaginations, got energy efficiency remained a heart measure of the country after independence. The destination for sustained economic growing and growth should be saw in terms of supervising the filled utilization of these resources.

The hydro future in the country has besides been an epic chronicle. The network of rivers in the country allows an opportunity for hydroelectricity with done 21 internet sites already known as capable of making future hydro power. The conservatively estimated output at 1,200MW, recorded in the 1996 Power Sector Master Program by Lahmeyer International, is necessitated by the country’s extensive network of rivers and tributaries. The completion of the current Bumbuna picture (Phase I electrical capacity 50 MW, total electrical capacity 275 MW) and the envisaged Bekongor picture (Bekongor III electrical capacity 85 MW, total electrical capacity 200 MW) – two of the some great projects that are economically exploitable – is good for the growth of the country and for Sierra Leone businesses. But the political will has to be there to have the Bumbuna picture to 100% completion. There is besides the need to create the supporting surround for individual companies to invest in mini-hydro, or “run-of-the-river” hydro ability stations. The Bumbuna picture, which “can eventually become the backbone of a national grid, has the future to make a strong confident impact on the national electricity supply” (CEMMAT Policy Document, 2004).

In terms of ability infrastructure, the national ability stations in the major cities and towns, which are really a collection of regional ability stations, requires both recent infrastructure and recent ideas. “Most of the provincial stations and networks are in a state of total disrepair. The cost took to have them back to their pre-1994 levels is estimated at Euro 13 million” (CEMMAT Policy Document, 2004). The Bo-Kenema Power Helps (BKPS) which has a mixed hydro-thermal operation capacities of 5MW and 4MW at Bo and Dodo (Kenema) respectively faces the said management troubles with its commercialized 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 regard.

There are fairly quantified fossil fuels (hydrocarbons) with commercialized measure in Sierra Leone. These include substantial ignite deposits and crude oil which get not been exploited. These fossil resources get not been properly assessed to determine their future measure for practical and profitable exploration. Though earlier administrations got proposed to sell concessions for prospecting for oil and another valuable mineral resources in the country, there got always been institutional secrecy surrounding the future existence of oil as a origin of riches creation for Sierra Leone. “The location, extent, and choice of the observe get remained a subject of uninformed speculation, intense curiosity, and often-wild conjecture. It is a state of affairs to which both official secrecy and the lack of transparency in the deal of world affairs in Sierra Leone get largely contributed” (Focus Sierra Leone). The Petroleum Imaginations Unit, under the authority of the current President and headed by a Director–General continues to oversee the possibilities of exploration of these petroleum resources particularly with European and/or American investment companies. It is the situation of the government of President Koroma that whatever economic profits that are attached to the exploration of fossil fuels should be in the interest of national growth.

Serious governance groups and the peoples roundly criticized earlier administrations for inadequate measures on energy supplies in the country. Past administrations failed to place real dollars in the energy sector where they willed get got a take impact on advancing enough and sustainable supply of electricity in the country. More chances could besides get been made to efficaciously support another kinds of renewable zip. All in full, the energy future is undoubtedly solid. But more than emphasis has to be placed on a more than investment-friendly energy policy, particularly on opening the energy marketplace to big capital investments and broadening incentives for investment. The reality is, there is the need (the market) for more than domestic energy and more than imported zip.

The best talents in the energy industry get to be accessed and retained to coordinate and expeditiously manage an A+ energy program for Sierra Leone. The country requires a residual of vision in the form of a grand strategy to curtail the difficulties the country faces with commercialized energy supplies, particularly electricity supply. Attainable short-, medium-, and long-term steps to have the country there get to be practically laid away. And while the grand strategy is goes place in site, the government should not fail to connect energy to climate change. Global warming has proved to be as horrendous a global challenge as the War on Terror.

Greatest Investment and the Energy Market

Certainly, one major factor for winning energy policy and management is financial resources. But the energy sector in Sierra Leone struggles with limited budgets and inadequate legislation that has not allowed for the growing of the energy sector, let one allow a sustainable supply of electricity to the urban and rural consumers. Clearly, done the age, earlier administrations were not in a situation where they could open to sagely invest or even create an enabling surround for overseas investments in the energy sector merely because of widespread corruption in world administration. The National Power Authority, for example, has unpaid debts of Le23.4 billion and unpaid client bills of Le16.2 billion as best as fuel bills to petroleum companies of Le8 billion. The utility authority besides has a defective transmission and distribution scheme with 35% technical losses; and an electricity drop from 28MW from 5 diesel engines to 6MW from one diesel engine among another troubles.

Other logistical challenges include the procurement, storage and transportation of petroleum products. “Sierra Leone is almost totally dependent on imports for full its petroleum requires and machinery as best as spare parts” (CEMMAT Policy Document, 2004). Petroleum wares are transported by route utilizing tankers. The poor state of the roads exacerbates some troubles with transportation.

In plus, increasing funds devoted to energy supply has only availed relatively little, given the impoverished state of the country. Sierra Leone causes get a younger Gross National Product (GNP) with sums allocated to the sector way considerably less than investments made by countries with larger GNPs. However, it is not only the total come of money from the GNP that counts, but besides how that GNP allocation is supplemented by overseas take investments and how such investments in the sector are spent.

Besides, it is viable for the government to observe funds to support its energy sector. In 2001, for example, the World Bank Aggroup funds estimated at US$7.5 gazillion were made available to the government of Sierra Leone under former President Ahmed Tejan Kabbah to bargain a recent engine to increase electricity capacity. But a used and poorly rebuilt 7.5 megawatts diesel engine went acquired.

And rather lately, “coinciding with the visit of the President of Sierra Leone to the UK, Douglas Alexander, the Secretary of State for International Development announced two tools of aid to Sierra Leone totaling £36 gazillion [– with] £20 gazillion to support the building up of energy sector in Sierra Leone [that] should allow a sustainable electricity supply to the one gazillion residents of Freetown and allow passing and ability for health centers, water pumping stations, colleges and police stations” (Press Release).

In reckon of full these possibilities, a perennial subject that must be covered in say to build a sustainable electrical capacity in the energy sector is a change of mental capacity in society and among decision-makers. “No capacity-building initiatives will deliver the goods if governments and the world are not determined to change the situation” (Embo Reports). Now there is hope with the recent democratic dispensation. On assumption of office, President Koroma made a pronouncement that energy is his topmost priority. To a great extent, Koroma’s Government is therefore supportive of capital investment in the energy sector. May be, what the Koroma administration besides requires to do is to support a have energy sector initiative in electrical capacity building by calling the problem of proper allocation of funds and supervising a sustainable energy supply mechanism.

The strategy 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 made to oversee the increase of electricity electrical capacity in the country. Values get besides been made to require individual concerns in the energy sector. 2 48MW individual ability producer (IPP) contracts with the Nigerian investment company Income Electrix and the US investment company DELAMORE get recently been signed by the Sierra Leone Government to add to the electrical capacity of electricity supply. Income Electrix has already transported equipment and mobilizing to direction a 10MW generator at Black Hall Route to supply electricity to the east part of Freetown. A Sierra Leone Government partnership with the Nigerian company Income Electrix is a good investment strategy for both countries. Even though Nigeria’s concentrate on goes a leading saving via its oil industry has its challenges, Nigeria’s part of global oil reserves is rather impressive. The challenge for Nigeria’s oil exploitation is not a scarcity of world-scale oil reservoirs, rather it is linking those oil reserves to long-term client commitments and the capital took to build oil refineries or multi-thousand knot pipelines. Nigeria’s oil reserves create a special opportunity to align and integrate with Africa, rather than holding Africa hostage to scarcity. A great part of any diplomacy with Nigeria should concentrate on helping Nigeria to look the profits of such a relationship.

By and large, Sierra Leone’s energy “industry shows the future to contribute as lots as Le 46 billion (approximately US$ 16 gazillion) annually to government profit in terms of Excise Taxation and Route Users Tax” (CEMMAT Policy Document, 2004). The future is remarkable even when the demand for energy in the industrial and commercialized sectors is mainly 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 Energy and Power and its relations to the another Ministries and utility companies as best as monitoring the ability scheme and leaving technical advice to the ministry has spoken rather reassuringly about the under-exploited state of Sierra Leone’s vast energy potential. According to his masterful cognition of the energy sector, “currently, there are no tools in the country for alternative energies. Sierra Leone’s energy mix is very restricted. Apart from cooking that is about 95% dependent on biomass, Sierra Leone is almost 100% dependent on imported petroleum wares and electricity for full its energy needs.” Again, restoring the procedures of the Sierra Leone Petroleum Refinery Corporation (SLPRC) which has a distillation future electrical capacity of 700,000 metric lots has the possibilities of generating more than profit for the government. The corporation requires healthy investment to sustain its distillation capacity. Bringing together the 5 petroleum major overseas oil and oil helps companies operating in the country namely Mobil, National Petroleum Company (NP), Safecon, Unipetrol and Leonoil, and/or another investors inside the SLPRC is critical to revamp the refinery’s procedures and to invigorate the market’s potential future and stimulating the raise of alternatives.

The structure of energy royalties is spelt away in the Local Government Act, 2004 (Local Government Act, 2004). But 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 profits; and incentives for illicit gain are rife. The sector has the future to generate substantial cash dealings compared with another helps and infrastructure sectors such as water and sanitation or function of roads. But the common kinds of corruption plaguing the sector takes petty corruption which is prevalent at the interface with clients when bribes are paid to or demanded by meter reviewers or safety inspectors and illicit sales event of fuel oils. There are besides some illegal connections by low-income as best as high-income households and commercialized establishments. The aggregate impact of “petty corruption” might be far from petty because reds might come to more than than $10 gazillion all year. Inadequate profit collection and another corrupt practices lead to deteriorating function with frequent blackouts and supply interruptions.

The viability of the energy sector hence takes a strategic study of the intricate systems of sustainable ability supply and profit collection. Governments can act decisively to deal with corruption in the energy sector—most involving privatization, competitor, more than transparent principles, and more than disclosure. Reforms in the energy sector can be in the form of selling special actions such as the energy distribution scheme utilizing prepaid meters to strategic investors with a proven track record and a long-term interest in the business. The prepaid meter scheme presently piloted in Freetown has the future to increase profit collection and concentrate corruption in the sector. About 2000 prepaid meters are presently in function. The government has contracted the Chinese investment company, the Sierra Leone Gouji Investment and Development, Ltd. for supply of 100,000 prepaid meters. “Chinese mold in the investment climate is growing steadily [superseding European and US investment] to the extent that a Chinese Chamber of Commerce and Industry went established in 2005. The government has been supportive of Chinese investment initiatives, apparently because of some age of Chinese government aid to Sierra Leone. The Bintumani Hotel, ravaged by invading rebels in 1999, is on lease for 25 age to Beijing Construction. The Chinese get transformed a former house for the displaced, the National Workshop, into a showpiece tractor-assembly plant [from which the Gouji prepaid meters goes piloted in Freetown are besides distributed]” (African Review of Job and Technology). Nevertheless, a recent Sierra Leone under President Koroma is now open for job and the reforms in the energy sector the recent administration is advancing include as best more than transparent marketplace rules and coordinating an individual regulatory body with more than presidential oversight to oversee the efficient management of a more than imaginative energy sector.

Efforts to address energy supply and coordination challenges should be placed in a great policy framework that addresses another friendly issues. More notably, such strategies should be part of policies designed to function advanced and efficient energy helps to achieve sustainable growth goals. Adequate resources ought to be made available for investment in oil exploration and growth actions and there has to be investor-friendly legal and regulatory framework to attract oil exploration companies. There are matters of supply and storage limitations for varying petroleum wares and the necessity to re-launch refining operation in the country. And when have and unified standards for operating retail issues are besides place in site, get at to advanced and efficient energy resources is assured.