BURUNDI: Strengthening the regulatory framework for competitive procurement of renewable energy generation capacity

The PPIAF-supported engagement enabled AREEM and the Ministry of Finance to prepare a complete, functioning regulatory framework for renewable energy auctions to enable private sector investment in generation infrastructure, in particular in solar. Key support components included:

1. A comprehensive review of recent energy legislation and remaining gaps
2. Advisory to the government on key additions and amendments to legislation
3. Development of capacity-building material for key government agencies, including AREEM and the newly established PPP agency, to ensure effective and sustainable implementation of recommendations and communication of outcomes

The needs assessment report concluded that the basic principles of PPPs seem to have been acquired by various stakeholders, the knowledge of the public actors encountered nevertheless seems varied, whether in terms of public-private partnership in general and in terms of Independent Electricity Production in particular.

However, the presence of a precise and shared conceptual framework is key to conducting clear and in-depth discussions between institutions when adjusting and clarifying a regulatory framework that itself suffers from certain risks of confusion.

Consequently, the consultant developed material and proposed training activities aimed above all at establishing this common conceptual framework as well as to give, on this basis, stakeholders the best tools to plan, select, contract, and monitor optimized Independent Power Generation projects, both in terms of cost and performance.

The review of the energy sector legislation on IPPs established that in order to respect the principle of hierarchy of standards according to which the special laws deviate from the general laws, it would be appropriate to revise law 1/13 of April 23, 2015 on the reorganization of the electricity sector to refer to specific selection procedures set by the PPP regulation.