GuineaGUINEA,
from Rags to Riches
LATEST REPORT
September 28th, 2000



The Republic of Guinea
No case for mistaken identity.

Introduction - Democracy - Free market - Social issues - Multinational companies - Finance - Infrastructure - Telecommunications - Transportations - Mineral resources - Bauxite - Metallurgy - Environment - Energy - Agriculture - Fishing - Tourism


ENERGY

INNER FIGHTS WITHIN THE ENERGY SECTOR



Restructuring of the water sector has been a noticeable success. The same does not apply to the energy sector. A few advances have been done, but still a lot remains to be done. Mining and industry depend heavily on the supply of reliable energy to be able to expand. But the lack of understanding between the two main actors of this sector has hindered its development. During 1996 and 1997 a few investment failures were highly publicized, and according to the minister of energy, Mr. Fassiné Fofana , one or both of the energy companies (Enelgui and SOGEL) will have to disappear, leaving room for private operators.
BUILDING DAMS AGAINST UNPAID BILLS

Due to the extremely rich water resources Guinea possesses (rivers Gambia, Senegal and Niger are born here, and yearly rainfall is 4 meters), the construction of dams to obtain hydroelectric energy have been Enelgui’s priority, according to Mr. Daounda Camara, General Manager of Enelgui. Even though Guinea’s electricity potential is 600,000 MW, only 1% is used. Garafiri, the largest dam under construction and the country’s biggest energy dream is being built by Canadian company Hydroquebec . When finished in 1999, it will add 75 MW to the existing capacity. Thermal energy centrals (Tombo III and IV) will increase it to 160 MW. Other projects include the construction of dams up country along the Fomi, Kaleta and Cogon river (120 MW). The problem? Citizens who are still reminiscent of good all socialist days when big brother looked after them tend to forget to pay the electricity bill, leaving the state without revenues to pay its debts.

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© World INvestment NEws, 2002.
This is the electronic edition of the special country report on Guinea published in Forbes and Far Eastern Economic REVIEW.
February 4th, 2002 Issue. Developed by AgenciaE.Tv