BURUNDI: REGIDESO Financial Recovery Plan

In 2020, the government of Burundi requested support from PPIAF to conduct an assessment aimed at defining policy actions to improve the financial sustainability of the power sector and attract more private investments, specifically for REGIDESO, the national utility. PPIAF's support facilitated a review and update of REGIDESO's financial model, which now serves as a decision-making tool for financial management and planning. The model includes five-year projections, taking into account demand forecasts and expansion plans for REGIDESO's network, and was developed in close collaboration with REGIDESO staff. The model will be used by REGIDESO to decide on a second phase activity, which is likely to include a tariff study for electricity and drinking water services. The model will also inform the Burundian authorities on the impact of different financial and tariff scenarios, forming the basis of a socio-economic study of the willingness and ability to pay by households and economic actors for different levels of water and electricity tariffs. Despite some delays due to changes in government administration and the COVID-19 pandemic, this activity is an important step towards improving the financial viability of the power sector in Burundi and attracting more private investments.