REA wins $26m WB loan
By LINDA SOKO TEMBO THE World Bank has approved a credit facility of US$26.5 million aimed at increasing electricity access in targeted rural areas of Zambia.
The Rural Electrification Authority (REA) through the government has negotiated for a credit facility from the World Bank to accelerate electricity access for rural areas in the country.
Speaking during a press briefing in Lusaka yesterday, REA chief executive officer, Geoffrey Musonda, said they have formulated a five-year project which was a credit facility called Electricity Services Access Project (ESAP).
Mr. Musonda explained that the funds would go towards scaling up the Rural Electrification Programme (REP) in Northern, Luapula, Copperbelt, North-western, Eastern, Southern, Muchinga Central, and Western provinces.
He said that the project would also provide ‘last mile’ connections to the national grid to about 22,000 lowincome households and about 1,000 medium and smallscale enterprise (MSES) in rural areas.
“This generally translate over an estimated 115,000 beneficiaries,” he said.
Mr. Musonda said that the project would be launched and will be implemented between 2017 and 2022 and will benefit households, business communities, public facilities and farmers located in rural areas of the country.
“The beneficiaries will be connected to electricity through the main grid at a subsidised rate of K250,” he said. Mr. Musonda explained that the ESAP project had three components which was to provide subsidies for consumer connects and finance network reinforcements and extensions for on –grid will into electrification.
“The project will also address existing regulatory impediments for private sector participation in offgrid electrification build the needed capacity at key institution and design and potentially pilot financial.
“Financial mechanism supporting private sector led electrification through renewable energy mini-grids and stand-alone solar system, he said.
Mr. Musonda also said the third project would be to help fund the development of a comprehensive national electrification strategy as well as timely and efficient project implementation.