Recovery Plan for the Electricity Sector of Chad and SNE
ICEA has been mandated by the French Development Agency to carry out a diagnosis of the institutional, organizational, commercial and financial situation of the sector and the SNE and to draft a recovery plan.
With an electricity access rate of about 4% nationwide and 80% of the consumption concentrated in N'Djamena, Chad is one of the most underserved countries in the sub-region.
The National Electricity Company (SNE), created in 2011, is subject to serious constraints: generation, consisting of diesel thermal power plants, is expensive and obsolete and less than 70% of the installed capacity is available; the distribution network covers only one third of the capital area and the technical losses are significant; marketing is inefficient and billing and collection rates are low. The financial situation of the company is worrying.
While SNE remains the sole transmission and distribution company, private sector intervention is encouraged in the generation segment.
In this context, the Government of Chad and SNE have requested the support of international technical and financial partners in defining and implementing a strategy and a recovery plan for the sector and SNE.
In light of the diagnosis, ICEA identified five areas of recovery:
Improve governance of the sector
Improve the governance of the SNE
Develop the management tools of the SNE
Restore SNE's financial balance
Strengthen the capacities of the SNE
These five areas of recovery are broken down into 32 specific actions to be carried out over a period of 3 to 5 years, for an overall budget estimated at € 31 million. Among these actions, ten are considered as priorities to be implemented from 2018 for an amount of nearly € 2 million.
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