# BENIN’S INFRASTRUCTURE: A CONTINENTAL PERSPECTIVE

their primary energy source. Traditional fuels such as firewood and charcoal are the most frequently used. Around 97 percent of rural households rely on firewood for cooking. The unsustainable use of biomass in Benin has contributed to a serious decline in forest cover (World Bank 2009a). The geographical shape of Benin makes rural electrification easier, as the country presents good low-cost options for the extension of the electric grid. In 2005 a rural electrification program was launched, aiming at increasing rural access to electricity to 36 percent by 2015 and 65 percent by 2025 (Helio International 2009).

Limited and unreliable power supply hobbles business in Benin. In 2005, 63 percent of firms reported that power was a major constraint to doing business, and around 68 percent of firms reported losses due to limited power supply (ICA 2005). In 2009, firms indicated that around 7.5 percent of value was lost because of to power outages that totaled, on average, 24 days per year (table 11). Power consumption per capita in Benin, at 72 KWh/capita per year, is below the average consumption in low-income countries in Africa and only a hundredth of the average for middle-income countries (table 11).

Long delays in obtaining power and high costs associated with power connections further constrain business activity in Benin. In 2010 it took businesses almost 6 months to obtain a permanent power connection, more than double the average in Togo. Beninese firms spend 150 times per capita income to secure a power connection. In Africa firms spend on average around 61 times per capita income to obtain a power connection.<sup>5</sup> By these standards, costs to obtain a power connection in Benin are more than double those in other African countries.

Low electrification rates in Benin are linked to the insufficient and unreliable supply of power. CEB, (the power generation and transmission company owned by Benin and Togo, with headquarters in Togo) sells power to SBEE (Benin’s distribution company). CEB’s own production capacity is limited to the Nangbeto hydroelectric power plant (66W) and 40 MW gas turbines in Togo and Benin. As CEB has not made the required investments in its generation capacity, it has been unable to meet growing power demand, depending instead on imports of electricity from neighboring countries such as Ghana, Côte d'Ivoire, and Nigeria. It is estimated that as much as 60 percent of the power consumed in Benin in 2007 was imported by CEB. Between 2005 and 2007, CEB’s energy production declined, and available imports from Côte d’Ivoire dipped by more than 30 percent. As these arrangements do not cover fully Benin’s needs and supply of hydroelectricity is regularly interrupted by drought, SBEE imports electricity directly from neighboring countries such as Ghana and Côte d'Ivoire, and engages in own energy production using rented and owned diesel generation (around 15 percent of total demand). In 2007, 579 GWh, or 76 percent percent of Benin's energy demand, were met through supplies from CEB, and 180 GWh, or 24 percent, were provided by SBEE mainly from its own diesel generation (World Bank 2009a). To meet the supply gap Benin is undertaking investments in an 80 MW thermal power plant. Also being prepared is a 400 MW regional gas-fired power plant spearheaded by the West African Power Pool to be constructed in Benin. In addition, Benin and Togo are now pursuing the completion of the proposed 147 MW Adjarala

> 5 Cost to obtain a connection is recorded as a percentage of the economy’s income per capita. Costs are recorded exclusive of value added tax. All the fees and costs associated with completing the procedures to connect a warehouse to electricity are recorded, including those related to obtaining clearances from government agencies, applying for the connection, receiving inspections of both the site and the internal wiring, purchasing material, getting the actual connection, and paying a security deposit. Information from local experts and specific regulations and fee schedules are used as sources for costs. If several local partners provide different estimates, the median reported value is used. In all cases the cost excludes bribes.

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