The World Bank has sanctioned a $375 million International Development Association credit to support Ethiopia’s goal of achieving universal electricity access by 2025.
In November 2017, Ethiopia, with support from the World Bank, launched its National Electrification Programme (NEP) to strategically shift from infrastructure development to the delivery of adequate, reliable and affordable electricity services.
The NEP is a sustainable, transparent, and locally grounded electrification roadmap – driven by a customer-centric approach. The programme has the potential to leverage additional multi-donor financing and involvement in the sector.
The Ethiopia Electrification Programme approved last week will directly support the NEP, which requires an estimated investment of $1.5 billion over the first five years, and will provide one million last-mile household connections.
“Through this programme, we hope to facilitate the provision of electricity services to all Ethiopians nationwide by 2025. This means that children will be able to study at night, health facilities will be able to provide life-saving services and businesses will be able to operate optimally,” said Carolyn Turk, World Bank country director for Ethiopia.
National electrification programme
Specifically, the programme supports the three pillars of the NEP: grid electrification, off-grid services, and sector capacity and institutional reform. This holistic approach is intended to optimise electrification efforts to maximise the development impact of electricity services, irrespective of where someone happens to live.
“While the immediate focus will be on financing new connections, the programme will also help Ethiopia strengthen its energy institutions and the overall sector so that the benefits of expanded electricity services can continue for years to come,” said Riccardo Puliti, senior director for energy and extractives at the World Bank.
The programme will be implemented by the Ministry of Water, Irrigation, and Electricity as well as the Ethiopia Electric Utility and disbursement of funds are linked to the achievement of tangible and specific results.