World Bank supports Ethiopia efforts to increase electricity access
October 30, 2008 (ADDIS ABABA) — The World Bank agreed today to provide eight million USD to the Ethiopian government to increase electricity access in rural areas and boost energy efficiency.
Ethiopia has one of the lowest electrification rates in Sub-Saharan Africa and less than 2 percent of people in rural areas, where 85 percent of the population lives, have access to electricity.
In a statement issued today the World Bank said it signed the eight million grant with the Ethiopian Electric Power Corporation (EEPCo) within the context of the Universal Electricity Access Program (UEAP) in Ethiopia.
The project is funded by the UK and Swedish international cooperation agencies.
The World Bank was acting as administrator for the Global Partnership on Output-Based Aid (GPOBA). The project aims to help government efforts to provide electricity connexion to the poorest Ethiopians.
Up to 228,571 low-income households will benefit from the scheme through a new or regularized electricity connection and the provision of two energy-efficient Compact Fluorescent Lamps (CFLs). The lamps will reduce their electricity consumption by 55 percent and make their bills more affordable.
“Among the benefits for rural households, better quality lighting will reduce indoor air pollution from kerosene lamps, help children to study at night, and enable families to increase their income by additional home-based economic activity.” said Carmen Nonay, Senior Infrastructure Specialist and task manager for the project for the World Bank and GPOBA.
Under the GPOBA scheme, GPOBA will provide a subsidy of US$35 for each new eligible rural household, as EEPCo will bear all the construction and commercial risks.
(ST)