The $75.5 million agreement will also help strengthen reforms to increase the efficiency of the country's energy sector.
World Bank country manager, Kapil Kapoor, signed on behalf of the bank while Derek Fee signed for the EC. Dr Kapoor said access to electricity was important and called for team
work to raise the levels of access to electricity from the current
three per cent.
He said rural electrification did not only bring opportunities for
economic development but also had social benefits for child education,
health and nutrition.
Together with the EU, the World Bank is building on its long history
of support and assisting Government to meet targets for rural
electrification by the year 2030 estimated to cost US$50 million a
year, he said.
He explained that the agreement was under the Joint Assistance Strategy
for Zambia (JASZ) aimed at supporting the initiative, which was
intended to increase access to electricity for a five-year period.
Dr Fee said that access to affordable, reliable and sustainable energy
was essential for sustainable development and for meeting the
Millennium Development Goals.
Dr Fee said the signing of the agreement was a clear demonstration that
the World Bank and EC were reliable partners for Zambia to achieve her
development goals.
The project will also support the reinforcement of Zesco's existing distribution networks in selected areas.
This will reduce distribution losses, improve the quality of supply and increase new connections.
This co-financed project is a good example of harmonisation and
coordination between cooperating partners as it mainly disburses into a
specific trust fund managed by the World Bank,he said.
He said Zambia had been a major beneficiary of the energy facility and
the EC was happy to be part of the development of the energy sector.
The total cost is estimated at $75.5 million with the International
Development Association of the World Bank contributing $33 million, the
European Development Fund $15 million, Zambian Government $12 million
and the Global Environment Facility putting in $4.5 million.
Times of Zambia
Post published in: Zimbabwe News