Energy Development Sector

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Energy Development Sector

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Dates of existence


Functional responsibility for Energy Development Sector activities, began in 1965 within a lower division of the Projects Department. The Projects Department was responsible for the identification, appraisal and supervision of projects, as well as policy formulation, research and advice in support of the operational activities of the area departments. The Projects Department itself has its roots in the Technical Operations Department (September 1952 to 18 January 1965) and in the Economic Department prior to that (19 April 1948 to September 1952), both of which had similar responsibilities in the area of operational and sector work, providing expertise and assistance for projects and studies.

The Projects Department (PRJ) was established on January 18th 1965 and the following divisions were subordinate to it: Agriculture Division (PRJAG); Education Division (PRJED); Transportation Division (PRJTP); Public Utilities Division (PRJPU), and Industry Division (PRJIN). Responsibility for energy sector issues wasfound within the Public Utilities Division, and on January 1st, 1967 water sector functions were transferred into the Division.

On November 1st, 1968, the Projects Departments was terminated and the subordinate divisions were upgraded to the department level. One of these departments was the Public Utilities Department, which maintained responsibility for the energy sector from the prior division. Specifically, the Department was responsible for:

  • providing advice, conducting research, and monitoring developments in sector issues;

  • carrying out sector studies with the objective of identifying projects and determining priorities within sectors;

  • preparing policy papers outlining the basic principles and approaches of the Bank relating to project and sector work;

  • preparing guidelines and standards;

  • appraising proposed projects and supervising projects in execution;

  • assisting in the identification and preparation of projects;

  • providing operational support in the negotiation and administration of loans and credits;

  • cooperating with other international agencies on programs of common interest.

In the October 1972 reorganization, most of the Public Utilities Department staff were dispersed to regional projects departments in newly established regional vice presidencies to more effectively fuse country knowledge and sector skills. This left the Public Utilities Department with a core staff of advisors responsible for operational and development policy, research, operational support and qualitycontrol of project and sector work. The Public Utilities Department was contained within the Central Projects Staff Vice-Presidency and it was composed of the following divisions: Power Division I (PBPP1); Power Division II (PBPP2); Power Division III (PBPP3); Water Supply Division I (PBPW1); and the Telecommunications Division (PBPTE). Possibly in January 1970, another Water Supply Division II (PBPW2) was established in the Department.

  • The primary responsibility of the Public Utilities Department's Central Projects staff was to improve and maintain the quality of Bank lending and related operations through formulating policies, methodology and guidelines; providing operational support and advice; and through related programs of recruitment assistance, staff development and education. They were also responsible for: reviewing operational documents and providing guidance and advice to Regional offices; developing systems to monitor the project cycle; developing analytical tools such as appraisal and forecasting models; and liaising with relevant external organizations. Their role was to advise, guide, cross-fertilize among Regions, train, evaluate, and provide intellectual leadership.

On April 1, 1976, the Public Utilities Department was renamed Energy, Water and Telecommunications Department (EWT) to clarify its functional responsibilities. No structural changes accompanied the renaming of the department. Then, on November 1st 1977, a Petroleum Projects Division (EWTPP) was established in the Department to implement the Bank's program of expansion of gas and petroleum production in developing countries.

On July 1, 1979, the Energy, Water and Telecommunications Department was terminated. Its energy functions were upgraded to an independent Energy Department (EGY), and the water supply and telecommunications functions were transferred to the Transportation Department to form the new Transportation, Water and Telecommunications Department (TWT).

The Energy Department was established to provide unified, full-time leadership to implement the Bank's rapidly expanding program to accelerate petroleum production in developing countries. Functioning as a central operating projects department (COPD), it had operational responsibilities with regard to oil and gas, electric power, including technical assistance in national energy planning and petroleum legislation, and assessing and helping develop renewable and non-conventional energy sources. In addition, it would be responsible for policy and research, as well as operational advice and support for all energy sector and project work. The Energy Department was composed of the following subordinate units: Petroleum Projects Division (EGYPP); Energy Policy Advisory Staff (EGYEP); and Operations Advisory Staff (EGYOP).

Less than a year later in May 1980, the Energy Department was restructured to absorb staff increases and carry out its increased work program. The former Petroleum Projects Division (EGYPP) was split into the Petroleum Projects Divisions I (EGYD1) andII (EGYD2), and a new Petroleum Projects Exploration Staff (EGYES) was established. The Operations Advisory Staff (EGYOP) was renamed Energy Operations and Review Staff (EGYOP).

In July 1981, the Energy Department was again restructured, accommodating further staff increases and the Bank's progressing energy program. The staff were organized into three complexes:

  • 1. The first complex was led by the Assistant Director, Petroleum, who was responsible for the two operational Petroleum Projects Divisions (EGYD1) and (EGYD2), a small Petroleum Advisory Staff, and a Petroleum Adviser;

  • 2. The second complex was led by the Assistant Director, Energy Policy and Assessment who was responsible for the Energy Assessments Division (EGYEA), a small Economic Advisory Staff (EGYEC), and the Economic Adviser;

  • 3. The third complex was led by the Senior Adviser, Energy Operations and Review (EGYOP) who was responsible for a staff of advisers delivering operational support and advice to the regions, and for the New and Renewable Energies Unit (EGYNR).

In September 1985, the Department was reorganized to strengthen the policy and review activities along the lines of sector departments and divide the workload of the Energy Assessment Division (EGYEA). With the exception of the Petroleum Projects Division I (EGYD1) and II (EGYD2), all subordinate units of the Energy Department were terminated. The new Energy Policy and Advisory Division (EGYPA) absorbed most of the advisory staffs, and centralized the formulation, dissemination and monitoring of energy policy. The new Energy Strategy and Pre-investment Divisions I (EGYS1) and II (EGYS2) absorbed most of the staff of the former Energy Assessments Division (EGYEA), and took on responsibility for: all joint Bank/UNDP technical assistance, known as ESMAP (Energy Sector Management Assistance Program); all energy sector work; and the preparation and supervision of Bank energy projects.

On July 1st 1987, a Bank-wide reorganization resulted in the termination of almostall organizational units. The Energy Department found itself within the newly created Sector Policy and Research Vice-Presidency (PRE, then PRS). As a result of the reorganization, PRE had no responsibility for managing operational activities. The Vice-Presidency focused on operational support, the formulation of Bankwide sector policies, and overseeing the ex post evaluation of Bankwide sector work and lending. The units within the Vice-Presidency concentrated on policy creation and analysis, support for operations, and sectoral research for emerging priority areas of the Bank. Within the PRE Vice-Presidency, the energy and industry sectors were merged into the Industry and Energy Department (IEN).

On December 1, 1991, as part of President Lewis Preston's first reorganization, which abolished all Senior Vice-Presidencies, the new Sector and Operations Vice-Presidency (OSP) was created, and adopted functions previously supervised by Senior Vice-Presidents. From the reorganization, the Energy Sector Management Assistance Program (ESMAP) was removed from the Industry and Energy Department (IEN) and established as its own department. Industry and Energy Department was responsible for:

  • formulating policies in the energy and industry sectors;

  • developing research priorities and conducting background research necessary to support policy development;

  • strengthening the Bank's intellectual leadership in the sector;

  • providing advice to the Regions for the design of country strategies and sector operations;

  • disseminating research results;

  • conducting an annual review of Bank operations in the sector;

  • developing and maintaining contact with the external community.

On December 31, 1992, as part of a larger initiative to align the Bank's organization with the priority areas of its poverty reduction effort, the Sector and Operations Policy Vice Presidency was terminated. OSP was replaced by three new thematic vice presidencies: Human Resources Development and Operations Policy (HRO), Finance and Private Sector Development (FPD); and Environmentally Sustainable Development (ESD). At the time of its establishment Finance and Private Sector Development (FPD) had three subordinate departments:

  • 1. Financial Sector Development Department (FSD);

  • 2. Private Sector Development Department (PSD); and

  • 3. Industry and Energy Department (IEN)

Each Sector Department was responsible for the following:

  • prepare policies, guidelines, standards, handbooks and analytical tools relevant to the sector;

  • identify, codify and disseminate best practices and lessons of experience, and evaluate weaknesses;

  • provide advice to the Regions as needed;

  • monitor and track work in the sectors assigned in order to identify generic issues and identify, evaluate and influence trends and patterns;

  • perform surveys of experience and practice within the Bank and elsewhere, and develop innovative approaches;

  • participate in Bankwide efforts to assess skill requirements, and to upgrade skills through recruitment, training, orientation, seminars, newsletters, etc.

  • represent the Bank to external communities of interest;

  • maintain an awareness of relevant external practices and viewpoints.

Five years later, in 1997, the thematic Vice-Presidencies were reorganized to strike a better balance between country focus and sectoral excellence. To facilitate sharing of expertise and knowledge, the Bank established Networks that linked Bank-wide communities of staff working in the same field across organizational boundaries and with external partners. The networks formed a virtual overlay on the existing Bank organization, and were intended to link staff working in the same sectors throughout the Bank, whether the staff was located in the Regions, in the Central Vice-Presidencies' Sectoral Departments, and other vice-presidencies.

Each of the three thematic Central Vice-Presidencies was transformed into the central units, or anchors, of each Network and were embodied in the existing Sector Departments. On a Bank-wide basis, sectorspecialists were grouped into regional sector units or into central Sector Departments which worked with country departments in a matrix relationship.

Each Network Anchor had a Network Council to oversee the entire network, and sector boards covering the individual sectors within a network. The Network Council was composed of the top network managers from each region, and was responsible for setting the overall agenda for the network and for promoting the effective deployment of skills across network units. Sector Boards brought together the sector leaders from each region and from the central vice presidencies. Staff from the central sector departments could become part of the regional operational teams when their sectoral expertise was required. The work programs of Network staff focused on:

  • global knowledge - putting the best development knowledge in the hands of Bank task teams; ensuring that the knowledge base was accessible to external clients; and contributing to the growth of the knowledge base;

  • enhanced skills - developing and providing content to training courses; establishing professional and technical standards for professional development;

  • shared strategies - assisting regional and central units to develop a common sector agenda, and ensuring that skills are effectively deployed across the entire network. Network leadership assumed responsibility for global programs, sector strategy development and evaluation, strategic partnerships, and learning and dissemination;

  • best teams and best practices - improving the Bank's flexibility and mobility by building stronger task teams and delivering higher quality products;

  • institutional initiatives - providing substantial support for new Bank-wide initiatives, such as Social Development, Rural Development, Financial Sector, Anti-corruption, Human Resources, and Knowledge Partnerships.

Following the 1997 reorganization, energy sector functions were found within the Energy, Mining and Telecommunications Department (IEN) of the Finance, Private Sector Development, and Infrastructure Network (FPD), which was re-named at some point in fiscal year 2000, with little effect on the energy sector portfolio, to Private Sector Development and Infrastructure Network.


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