World Bank Approves US$26.5 Million to Electrify Rural Areas of Zambia

LUSAKA, June 30, 2017 – The World Bank has approved $26.5 million International Development Association (IDA)* credit to increase electricity access in 36 rural areas in nine provinces of Zambia; (Northern, North Western, Luapula, Muchinga, Copperbelt, Eastern, Western, Southern, and Central).

The Electricity Service Access Project will provide connections to the national grid for about 22,000 low-income households and about 1,000 MSEs in the selected rural areas.

“The majority of the beneficiaries will receive electricity services for the first time. Access to electricity in rural areas is important because it helps replace consumption of kerosene, diesel, dry cell batteries, and alternative fuels such as firewood that contributes to deforestation,” said Ina Ruthenberg, World Bank Country Manager for Zambia.

Overall national electricity access currently stands at 31 percent. While this figure is low in itself, it masks the significant disparity that exists between access in urban areas that stands at 67% and that in rural areas which is only 4%.

“This project therefore supports the Government of the Republic of Zambia priority of increasing electricity access in rural areas, and is aligned with two of the strategies that relate to energy in the recently launched Seventh National Development Plan (2017 – 2021), namely “Promotion of renewable and alternative energy” and “Improved access to Rural and Peri-Urban areas,” said Joseph Kapika, World Bank Senior Energy Specialist.

The project shall also support the Government in the development of a National Electrification Strategy that will provide a firm basis for further expansion of electricity access in the country.

The total cost of the proposed project is estimated at US$36.8 million, of which US$26.5 million will be financed by the International Development Association (IDA). An estimated in-kind contribution valued at US$2.7 million equivalent will be provided by the Rural Electrification Authority (REA) and ZESCO Limited, and an estimated US$0.6 million will be co-financed by households and micro and small enterprises (MSE) for on-grid connections. In addition, the Government of Sweden has in principle agreed to finance the project through the Global Partnership on Output Based Aid (GPOBA) in the amount of US$7million equivalent.

Contacts: In Lusaka: Carlyn Hambuba, (260) 211-373218 chambuba@worldbank.org

 For more information about the World Bank’s work in Zambia visit:www.worldbank.org/en/ZambiaFor more information about IDA, please visit: www.worldbank.org/ida Friend us on Facebook: http://www.facebook.com/worldbankafrica Follow us on Twitter: https://twitter.com/WorldBankAfrica Watch our videos on YouTube: http://www.worldbank.org/africa/youtube

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