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Sustainable Access to Electricity in Southern Division - Access Component

Region
Southern Africa
Sector
Energy
Scope
IG
Grant Amount
EUR 10,400,000
Total project cost
EUR 87,400,000
Status
Approved
PFG Lead Financier
KfW
PFG co-Financier
AFD

The Objective of the Project is to sustainably improve the electricity supply of the population as well as of SMEs in the Southern Division (Southern, Central, Eastern and Western Province) in Zambia. This will be achieved through investments into the rehablitation and reinforcement of the existing distribution infrastructure in the Southern Division in order to reduce losses and to increase capacity available for distribution. By replacing overaged distribution and switchgear and by rehabilitation / building of substations, technical losses can be reduced significantly. Due to the size of the Southern Division (four provinces: Southern, Eastern, Central and Western Provinces), the project will focus on reducing the main bottlenecks in the power distribution network in this region. While having a positive impact on energy efficiency, this measure will also raise the client’s supply reliability. Currently, the consulting services to support ZESCO during the implementation of the project (coordination, procurement and construction supervision) are being tendered.

The basic principle is that in all areas reinforced by investment measures under the main project financed ky AFD and KfW, additional ITF-grant financed access components will be implemented, allowing additional population to immediately benefit from the project. The high access costs for electricity pose an entry barrier to the electricity consumption market. The access component consists of enabling works, connection subsidy and the supply of prepaid meters and ready boards for each new connection. Given the project set-up the ITF-grant funded activities can only start after the implementation of the investment measures of the main project have been (partially) completed.

06/2017