The European Commission says in a press release on Thursday it has adopted a proposal to set up a 250 million euro Energy Facility to increase access to modern energy services for people in Africa, the Caribbean and the Pacific (ACP). This is to be a contribution to the EU Energy Initiative that was launched at the World Summit for Social Development in Johannesburg in 2002. The proposed facility is designed to have a catalytic effect in generating additional funds for energy. The intention is to promote energy initiatives, provide information and build research and management capacity in ACP countries and finance sustainable energy projects and activities.
President of the European Commission, Romano Prodi stated: At the World Summit in Johannesburg the European Union launched the EU Energy Initiative. Much useful work has been done since then. With the current proposal we hope to take our work even further and considerably boost the provision of energy services to the poor. I call on member states to share in on our efforts and take an urgent decision on the mobilisation of the proposed fund.
European Commissioner for Development and Humanitarian Aid Poul Nielson said: Access to modern energy services is an important tool in fostering social and economic development. Its a tool we cannot afford to ignore in our fight against poverty. With the Energy Facility we will be forcefully addressing the financing gap that is currently hampering any decisive improvements in this area.
The proposed 250 million euro Energy Facility is a funding mechanism that shall make it possible to use the leverage effect of development aid resources to attract funding from other financial sources. The 250 million euro Energy Facility is intended to promote (i) Governance by helping ACP countries that display real commitment to the development of sound national energy policies. Funds will be invested in measures to build or strengthen institutional and regulatory frameworks; (ii) Ownership: The facility will be demand driven. It will be an instrument to support and deepen the involvement of actors in ACP countries in the design and implementation of Energy policies and projects; (iii) Access to flexible sources of funding. A maximum impact will be sought by offering creative combinations of grants with other sources of financing. The facility will be open to joint financing with Member States, other international financing institutions such as the European Investment Bank and private sector investments via public-private partnerships; (iv) Innovative answers to the challenges of delivering sustainable energy to the poor. Projects could include electrification in rural areas, the improvement of the efficiency of home-cooking and the promotion of sustainable energy generation through bio-mass, small hydroplants or wind-power.
The proposal will be submitted for approval by EU Council of Ministers and ACP governing bodies. The Facility should become operational in the course of 2005.
Kilde: EU-kommissionen.
