Additional Financing for Energy Access operates in Ethiopia.
The objectives of the Additional Financing for Energy Access Project are to: (i) establish a sustainable program for expansion of access to electricity and for improvement of the quality and adequacy of the electricity supply in the Borrower's territory; (ii) reduce environmental degradation, and improve the supply and efficient use of energy; (iii) reduce the barrier to the wide spread use of renewable energy technologies; and (iv) provide technical support to the Borrower for the institutional and capacity building of key sector agencies, and for regulatory, fiscal and institutional reforms in the mining sector to attract private investment. The additional financing credit will help finance the costs associated with scaling-up certain components of the project: (a) The urban distribution and load dispatch component will receive US$l37 million to upgrade the distribution network and associated substations in seven additional cities along with Addis Ababa. This will increase the reliability, efficiency and capacity of those urban networks, allowing new consumers to be connected in these cities; (b) the grid based rural electrification component will receive US$30 million to increase the population's access to electricity in rural areas. This component will electrify about 50 new villages and connect more than 70,000 consumers in those villages; (c) the Renewable Energy component will receive US$10 million to evaluate and appraise the geothermal resource base of Ethiopia and to assess whether its energy production capacity can be diversified using this renewable energy resource base; and (d) the institutional capacity building component will receive US$3 million to update the power sector master plan of Ethiopian Electric Power Corporation (EEPCo), finance training cost of EEPCo, and strengthen the planning and procurement capacity of EEPCo. Under this project a total of about 700,000 consumers are expected to be connected through intensification of connections in urban and rural areas. EEPCo will finance the cost of connection from the project and shall recover it from consumers over a period of time.