IPPs in Sub-Saharan Africa: Determinants of success

Publication year: 2011
Source: Energy Policy, In Press, Corrected Proof, Available online 14 June 2011

Anton, Eberhard , Katharine Nawaal, Gratwick

This study analyses the outcomes of independent power projects (IPPs) across Sub-Saharan Africa. Approximately 20 such projects1 have taken root to date, concentrated mainly in 8 countries. A suite of country level and project level factors play a critical role in determining project success, chief among them: the manner in which planning, procurement and contracting are coherently linked, the role of development finance institutions along with the development origins of firms and credit enhancements.

 Highlights: ► We analyse the outcomes of independent power projects (IPPs) across Sub-Saharan Africa. ► Approximately 20 IPPs have taken root to date, concentrated mainly in 8 countries. ► A suite of country level and project level factors play a critical role in determining project success. ► Key success factors are the coherence of planning, procurement and contracting. ► Also important is the role of DFIs, the development origins of firms, and credit enhancements.