The Minister of Water and Energy, Michael Ngako Tomdio yesterday, November 16, 2011, defended the bill governing the electricity sector in Cameroon in the Production and Trade Committee of the National Assembly, chaired by Hon. Lekene Donfack. This was in the presence of the Minister Delegate at the Presidency in charge of Relations with the Assemblies, Gregoire Owona.
The bill came to the National Assembly for the second reading, following its adoption during the extraordinary session of the House from April 6 to 9, 2011. The enactment of the law passed by the National Assembly was stalled following discussions between government and the World Bank. Government and the World Bank then had negotiations in August 2011 on certain adjustments. The bill re-examined by Parliament therefore contains adjustments in eight sections. It makes provisions for the introduction of optimisation obligation for holders of concessions to store and supply water to users, transmission concession to be concluded between the State and the transmission operator for a transmission network over a given area after appropriate studies. Following discussions, the World Bank agreed with government’s position to institute a transmission network manager in the form of a public liability company. Government also agreed with the World Bank on need to strengthen the institutional arrangements relating to Electricity Sector Regulatory Agency (ARSEL). The bill suggested a 12-month transitional period for updating valid concessions, licences and authorisations.
The revision of the April bill is based on the need to foster the development of a real heavy industry in the electricity sector, ensuring better legal security as well as an appropriate regulatory system. Government states that the bill containing adjustments, is intended to radically revamp Law n° 98/22 of 24 December 1998 governing the electricity sector, which contains many shortcomings in the face of high demand. “The current legal framework does not encourage or attract concrete investment opportunities,” the explanatory statement disclosed. Government further explains that some requirements relating to the scale of industrial projects and their strategic importance to the national economy warrant some adjustments to the laws in force.
