ABU-BAKAR .S. MASSAQUOI USAID/USFS-IP STEWARD PROGRAM

1. ENERGY & BIODIVERSITY STEWARD Sustainable & Thriving Environments for West African Regional Develop ABU-BAKAR .S. MASSAQUOIUSAID/USFS-IPSTEWARD PROGRAM

2. . developments in the last years in Sierra Leone STEWARD Sustainable & Thriving Environments for West African Regional Development

3. OUTLINE OF TALK • Concepts • The energy services • Sector (overview) • The energy & forestry sectors: the nexus • Addressing the issues & challenges (the economics & politics) • GoSL- the action • Future supply (sustainability) • Risks and opportunities • Recommendations

4. CONCEPTS • RENEWABLE ENERGY Energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable (naturally replenished) • BIODIVERSITY Various life forms of plants and animals within a given ecosystem, or for the entire Earth, are integrally known as Biodiversity.

5. ENERGY SERVICESreflect on… • poverty reduction • food security, shelter, clothing, water, sanitation, medical care, schooling • access to information in Sierra Leone. • population growth, urbanization and opportunities for women. • basic human needs (food consumption, clean water supply, shelter, health, education, employment etc) • economic growth.

6. THE ENERGY SECTORoverview • key in the S/L economy (source of govt. revenue (e.g. fuel taxes, license fees and royalties). Accounts for a significant percentage of imports (fuel imports account for 26% of total imports). • The Ministry of Energy and Power (MEP): • Custodian of the Electricity and Water Sectors • Responsible for sector policy and coordination

7. Overview • The MAFFS handles biomass issues especially fuel wood • Petroleum marketing and sales are handled by the Ministry of Trade and Industry (MTI). • Petroleum exploration and extraction is now within the purview of a Presidential Petroleum Commission. • The Ministry of Mineral Resources (MMR) deals with extraction of minerals, including energy related minerals.

8. THE ELECTRICITY SUB-SECTOR • The National Power Authority (NPA): • Monopoly supplier of electricity in the W/Area. • Responsible for the operation of electricity supply in the provinces (BKPS-The Bo-Kenema Power Services). • The National Commission for Privatization (NCP) • The NPA Act of 1982 & the 1993 NPA (Amendment) Act. • The SALWACO (Guma Valley Water Company)

9. THE ELECTRICITY SUB-SECTORperformance • Access • Consumers • Loss recorded • Consumption pattern

10. Energy consumption pattern

11. Energy demand/supply line graph

12. Energy sector- challenges • supply and service. • Installed capacity. • Load shedding/leveling and valley filling. • Tariff • High technical and commercial losses. • Poor revenue collection • The customer base is small at 35,000 to 40,000.

13. Major projects • Bumbuna Hydroelectric Project • Bo-Kenema Power Services (BKPS) • ADDAX Biofuels project

14. RESTRUCTURING THE SECTOR

15. The forestry sector • 86% of Sierra Leone’s land area (7.3 million hectares) is covered with natural forest. Only 5% of the land area is closed high forest (365,000 ha) located largely in the eastern and north-eastern part of the country.

16. The forestry sector • About 52% of the total land area (60% of natural forest) is forest regrowth, which is derived from closed high forests.It represents the fallow phase of the bush fallow cultivation system and amounts to 3.7 million hectares. Secondary forest amounts to 261,000 hectares, Savannah woodland 1.6 million hectares and mangrove and swamp forests 286,000 hectares.

17. The forestry sector • Out of the 365,000 hectares of closed high forest, 219,000 hectares are productive closed forests of which 100,000 hectares remain unlogged. Fuel wood supplies in Sierra Leone are obtained mainly from closed high forests and Savannah wood lands. • Mangrove swamp forests

18. Energy & forestry sectorsThe nexus • Dependence on renewable resources like plentiful woody and non-woody biomass, solar, wind, and hydrological resources. • Fuel wood and charcoal burning. • All mangrove species in Sierra Leone are used as firewood for smoking fish and salt manufacturing. • Fuel wood is used in crop and food processing and preservation, for heating houses during the wet season, and also extensively in cooking, for artisanal activities, and to provide lighting on social occasions.

19. The nexus • Both sectors are seriously challenged by: • The natural resource “curse” (dead end sector) • Common property issues • Vulnerability to “boom” and “bust” cycles • Vulnerability to the “Dutch disease” • Low growth potential • Policy coherence issues

20. Response area graph

21. The rules (resource economics): • HARTWICK’S RULE: The amount of investment in produced capital (buildings, roads, knowledge stocks etc) that is needed to exactly offset declining stocks of non-renewable resources, should be undertaken so that the standards of living do not fall as society moves to the indefinite future. • HOTELLING’S RULE: The optimal profile of resource extraction should be given a “value adding” time preference.

22. The Economics • Income, employment and fiscal revenue • Livelihoods • Safety net in terms of crisis • Positive externalities at national & global levels • Minimizing boom & bust cycles • Avoiding the Dutch disease • Tackling the “absent market” challenge

23. The Politics • Governance issues • Feasibility of exclusion • Rivalry in consumption To consider: • Private goods (private lands, forests, mines etc) • Common pool resources • Club goods (joint ownership) • Public goods

24. The Politics • Policies and measures • Market based measures • Regulation and deregulation • Cooperation • information • Managing the policy process • the operational, process and organizational level • Time lag between action and reaction

25. Government of Sierra LeoneAction Economic Framework • liberalization of trade and exchange rate, price deregulation, strengthening fiscal management and domestic resource mobilization, elimination of subsidies etc Social Framework • Poverty reduction • private sector participation • decentralization.

26. GoSL-Action Environmental Framework • National Environmental Action plan. • The Environmental Protection Act (National Environmental Protection ACT, 2000) • The Energy Policy (2004) • The draft policies- FD/MAFFS

27. ENERGY RISKS TO BIODIVERSITY The agriculture sector: • Intensification of grassland use: • Earlier harvesting times • High loss of ground breeding birds and small game • Endangered arable plants can’t reproduce

28. ENERGY RISKS TO BIODIVERSITY • Conversion of grassland into arable land: • Narrowing of crop-rotation • Landscape changes • Competition between food security, energy production and nature conservation

29. ENERGY RISKS TO BIODIVERSITY Other renewables: “… solar panels are a strong new source of polarized light pollution that creates ecological traps for many types of insect…” • Wind farms and bird species

30. ENERGY RISKS TO BIODIVERSITY Oil & gas sector: • habitat conversion, degradation and fragmentation; wildlife disturbance and loss of species; air, water and soil pollution; deforestation; soil erosion and sedimentation of waterways; soil compaction; contamination from improper waste disposal or oil spills; and loss of productive capacity and degradation of ecosystem functions.

31. ENERGY RISKS TO BIODIVERSITY The Diamond mining sector: • Energy use and emissions • Waste and recycling • Use of water • Impact on Biodiversity (land disturbances, habitat destruction etc)

32. ENERGY RISKS TO BIODIVERSITY Others: • Noise

33. OPPORTUNITIES Agriculture & Forestry: • Potential for varied crop-rotation • Less use of pesticides (and fertilizer) • use of a greater number of species and varieties • Mixed cultivation • Planting of structural elements in the landscape (i.e. Agroforestry-systems) enriches the landscape

34. OPPORTUNITIES Socio-economic, technical & political: • Job creation • Income generation • Policy formulation • Financing mechanisms • Decentralization • Reduced power outages • Sustainability (economic & environmental)

35. RECOMMENDATIONS