Ethiopia: World Bank supports rural electrification

Washington, United States of America – The World Bank’s Board of Executive Directors approved today a US$133.42 million International Development Association credit* which will help expand access to rural electricity In Ethiopia.

The Ethiopia Electricity Access (Rural) Expansion Project will support efforts to establish a sustainable program for expanding access to electricity, notably in small and medium-sized communities located in rural areas, thus supporting the country’s economic development and helping in the fight against poverty.

The project also aims to create a dynamic learning environment that will enable the Universal Electricity Access Program office to improve the effectiveness of electrification activities, build on the lessons learned, and insure that the benefits of electricity access reach the affected population, particularly the poor.

Increasing access to energy is one of the overall objectives of the Bank’s Interim Country Assistance Strategy for Ethiopia. Electrification is widely viewed as a pre-requisite to foster economic development and social equity in both rural and urban areas. The project is also aligned with the country’s plan to expand the electric system to both support the high demand growth and to extend access to the rural population at an accelerated pace.

* The credit is provided on standard International Development Association (IDA) terms, with a commitment fee of 0.35 percent, a service charge of 0.75 percent over a 40 year period of maturity which includes a 10-year grace period.

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For more information on the World Bank’s work in Ethiopia

Auteur: Redactie Infrasite

Bron: The World Bank