I - History and Objective

1- In 1980 African countries have realized the seriousness and the preoccupying situation of the African economy in general and the energy sector in particular. Consequently, the Extraordinary Economic Summit of AUO heads of states and government held in Lagos (Nigeria) in 1980 adopted the Lagos Plan of Action (L.P.A) which contains, among others, short, medium and long term actions aimed at solving the severe energy problems facing our continent.

For the adequate implementation of the recommendations of the LPA in energy sector, the Lagos Conference has perceived a urgent necessity to establish an appropriate institutional framework. In this connection, the creation of an African Energy Commission was specifically recommended.

The African Energy Commission would be a Continental African structure with a given responsibility to ensure, co-ordinate and harmonize the protection, preservation, development and the national exploitation, marketing and integration of the energy resources of the African continent.

Besides, the importance and the main role of energy and its important contribution to industrialization, poverty eradication and rural development, global and sustainable development, as well as co-operation and regional and sub-regional integration, are not to be proved anymore.

2- Following the relevant decision of the Lagos Summit Conference, the UNDP in collaboration with AUO and ECA has undertaken in 1984/85 a study which recommended the creation of the African Energy Commission in order to promote common initiatives likely to support decisively the efforts made to resolve the African Energetic Problems.

The recommendations of the AUO Summit Conference and Governments and the UNDP has not been immediately implemented. Subsequently, the African high authorities have reaffirmed and have pleaded for the creation, without any delay, of a strategic organization to deal with inter-African co-operation in the energetic field.

The following are among the most important recommendations :

• The Treaty establishing the African Economic Community, (Abuja, June 1991);
• The first Pan African Conference of Energy Ministers (Tunis, May 1995).
• The Cairo Program of Action (June 1995).
• The first and second regional conferences of Ministers responsible for the development and utilization of mineral and energy resources in Africa (Accra, 1995, Durban November 1997).
• The African Energy Program of the African Development Bank (Abidjan 1995)

3- The 63^rd Ordinary Session of the AUO Council of Ministers held in Addis Ababa February 1996 and the 2^nd regional conference on the development of mines and energy (Durban 1997), have in turn earnestly requested AUO in collaboration with ADB, ECE and RECs to undertake and accelerate up the pre-feasibility studies related to the creation of the African Energy Commission, emphasising the mandate, the structure and the financial resources of such structure.

The AUO has spared no effort in fulfilling this high and challenging responsibility.

4- The General Secretariat of the AUO implemented the pre-feasibility study after having thoroughly consulted its partners, the Regional Economic Communities, the African Development Bank, the World Energy Council, UPEDEA and other institutions dealing with Energy such as UNEP, UNDP, UNDESA, UNIDO, FAO and UNESCO.

5- Following the consultation of these institutions, the AUO organized an inter Agency meeting and adopted a report entitled "Proposal of the AUO general Secretariat on the Creation of the African Energy Commission".

6- Following the implementation of the above work the AUO in close collaboration with the Egyptian Government, organized "The African Energy Experts Meeting" on the creation of the African Energy Commission, Cairo, 22 - 25 May, 2000.

This Expert meeting recommended the immediate creation of the African Energy Commission. It elaborated and adopted "the Draft Convention" of the African Energy commission.

7- After taking notes of the progress made in the establishment of the AFREC, the AUO Council of Ministers meeting in Tripoli in February 2001 has requested the AUO to organize a Conference of African Ministers Energy for the creation of AFREC.

8- Upon the invitation of the Algerian Government, the Conference of African Ministers of Energy on the creation of AFREC was held in Algiers on 23 - 24 April 2001 under the auspices of the AUO.

The Constitutive Conference of African Ministers of Energy held in Algiers adopted the following main recommendations to be submitted for ratification to the 37^th AUO Summit Conference, Lusaka (Zambia) on 9-11 July, 2001:

• The Convention of the AFREC is adopted.
• The Headquarters of AFREC is established in Algiers (Algeria).
• The AUO General Secretariat in close co-operation and consultation with Algeria will take the necessary measures to put in place and to recruit the required staff for the speedy establishment of the Commission.
• The AUO General Secretariat will contribute partially to the annual budget of the interim structure of AFREC during the first four years.
• The AUO Member States are also requested to give voluntary contribution to finance the functioning of AFREC.

9- The 37^th summit Conference of AUO consequently ratified all the recommendations submitted by the conference of the African Ministers of Energy (Algiers 23^rd -24th April, 2001) and adopted by them to that effect (Decision AHD/Dec 167 (XXXVII) concerning the creation of the African Energy Commission (AFREC)).

II. Functions of the African Energy Commission

The AFREC will carry out the following main functions :

• Elaborate Policies, Strategies and Development Energy plans based on sub-regional, regional and continental development priorities as well as identification of the means for their implementation;
• Conception, elaboration and up-dating of continental data base in energy sector as well as promotion of rapid transfer and exchange of information between members states and regional economic communities. There is a need of putting in place an active information system for preservation, processing and spreading data on energy and related sectors;
• Identification, elaboration and launching big inter-African energy projects of co-operation, promoting sub-regional, regional and continental integration. Concomitantly, mobilization of financial resources in order to provide the member states with the necessary assistance to develop and implement integrated energy projects;
• Elaboration of policies, plans and projects of inter African co-operation in the field of human resources development, particularly through programs of staff training and education in the energy sector;
• Establishment of a network of technical assistance between member states and promotion of partnerships between African countries in the energy sector, development of commercial, transit and exchanges of energy products and services between member states. In order to promote the inter-African trade of energy products. It is essential to encourage the use of technical standards, procedures and practices in the energy sector.

III. Initial Activities of the AFREC

The Following four main activities have been identified in order to establish the interim structure of AFREC:

1. Establish an energy information system and African data base.
2. Identify and promote inter-African energy projects of co-operation and elaboration of financial mechanisms for their implementation.
3. Establish and promote programs of human resources development and training; strengthen the institutional and management capacities in the energy field.
4. Elaborate Energy policies, strategies, development plans and programs in Africa on sub-regional, regional and continental level.

IV. Initial Structure of the AFREC

Considering the initial activities above mentioned, the following structure is necessary for the transition period of the AFREC :

• Manager for the transit period;
• Expert in Energy Information System and Energy Database;
• Expert in planning and economic studies;
• Expert in project appraisal and monitoring;
• Administrative personnel.

V. Budget and Financing

The AHG/Dec 67 (XXXVII) decision, relative to the creation of the AFREC detailed below, provides financing and contribution to the operating budget of the interim structure:

• The general secretariat of AUO has been requested to grant the operating budget of AFREC interim structure. The AUO Advisory Committee on administrative, budgetary and financial matters is requested to give AFREC financial contribution to annual budget during the first four years of operating;

• The AUO member states are earnestly requested to give voluntarily contribution to AFREC interim structure;
  
• Algeria has been thanked and congratulated for its accepted proposal to host the Headquarters of AFREC as well as its commitment to give it the necessary support in terms of offices, equipment, …etc.

• The President of the African Development Bank is requested to cooperate closely with AFREC in order to transfer the African Energy program of ADB to AFREC and give her the necessary technical and financial support.

• The International specialized Agencies and organizations of the United Nations system and other international Institution such as the World Energy Council (WEC) and UPEDEA are requested to provide technical, financial and material assistance to AFREC.

For that purpose, and right from the establishment of the interim structure, the manager for AFREC will prepare a working program and detailed projects and apply for extra budgetary resources.

Terms of reference of concrete and detailed projects will be elaborated in order to seek for technical and financial support from organization such as UNDP, UNDESA, ADB, UNEP, UNIDO, UNESCO, FAO, WEC, OPEC, OLADE …etc.

If needed AFREC will use services of external consultant.

VI. Other Important factors in AFREC Identity

• The AFREC has to be an efficient, autonomous, and independent organization. In this respect, it will grow while benefiting the political support of AUO.
  
• Considering globalization challenges, AFREC should defend the strategic energy interests of Africa.
  
• While membership to AFREC is normally reserved to member states, it is considered that public and private energy entities have an important role to play and should therefore closely be associated with AFREC services.

VII. Conclusion

The AFREC was created by the 37^th Summit Conference of AUO Heads of State and Government in Lusaka (Zambia) in July 2001.

It is the successful result of 2 decades of efforts to achieve a strategic objective aimed at making the energy development one of the driving factors of a global and sustainable development likely to strengthen the African Union and facilitate the entry of Africa in the world economy.

Africa has now filled an institutional lack by establishing an appropriate framework of co-operation to develop collectively its huge energy resources and defend its interests in such a strategic sector as energy.

Now, all the African countries are invited to show their will by transcending their national interests in order to build and consolidate AFREC.

Summary

> History
> Main Functions of the AFREC
> Budget and Operation of the AFREC
> Remarks and comments

History

1. Meeting of African Experts in energy on the creation of the African Energy Commission, in Cairo on 22-25 May 2000.

2. Adoption of the main recommendations of the AFREC during the Conference of African Ministers of Energy held on 23-24 April 2001, in Algiers.

3. Adoption by the 37^th Summit Conference of the Heads of States and Governments of AUO in Lusaka (Zambia) of Decision AHD (Dec 167 (XXXVII)) on the Creation of the African Energy Commission (AFREC).

Main Functions of the AFREC

1. Policies, strategies and plans of Energy development.
2. Data bank and exchange of energy information between the African Countries and the RECs.
3. Big inter-African energy projects, which contribute to African integration.
4. Human Resources development, particularly by personnel training and education programs.
5. Promotion of inter-African trade of energy products.

Budget and Operation of the AFREC

Decision AHG/Dec 67 (XXXVII) on the creation of the AFREC:

1. A contribution of the AUO to the interim structure of AFREC budget during the first four years of operation;

2. Voluntary contributions of the AUO member states to the financing of the interim structure of AFREC;

3. Commitment of Algeria in the support of the interim structure of AFREC;

4. Technical and financial support from the ADB (Transfer energy data base to AFREC from ADB);

5.Technical and financial support from the specialized Agencies and organizations of the United Nations system and other international organizations.

Remarks and comments :

1.The AFREC should be an autonomous and independent organization benefiting of political support of the AUO.

2.The AFREC should be able to defend and protect energy strategic interests of Africa in the world.

3.The energy public and private companies and entities have an important role to play and should be closely associated to AFREC functioning.

http://afrec.mem-algeria.org

AFREC
2 rue Chenoua, BP. 265
- Hydra - 16035 Algiers, Algeria

Tel: +213 (0) 21 694868

Fax: +213 (0) 21 692083