Liberia: 16,806 low-income households in Monrovia to benefit from electricity connections

News Release No:2011/03/GPOBA.MONROVIA, December 21, 2011. The World Bank, acting as administrator for the Global Partnership on Output-Based Aid (GPOBA), has approved a grant of US$10 million to connect about 80,000 people to Monrovia’s electricity grid, raising the electricity access rate in Liberia’s capital from 0.6 percent to 8 percent. GPOBA funding will supplement capital allocations from various donors to install connections, initially targeting 21 priority low-income neighborhoods. The scheme will be implemented by the Liberia Electricity Corporation (LEC), the sole power company in the country.

Liberia is one of the poorest countries in Sub-Saharan Africa, with 64 percent of the population living below the national poverty line.  A decade and a half of successive armed conflicts devastated the nation’s infrastructure and institutions, reducing access to key services like electricity to practically zero. Most households depend on expensive and polluting energy alternatives including kerosene, dry cell batteries and diesel generators for lighting and electricity needs. Households without access to grid electricity are estimated to spend up to 50 percent of their disposable income on energy-related expenditures. 

“This innovative output-based aid scheme will help the Government of Liberia’s urgent goal to increase and improve access to electricity for its citizens,” said Ohene Nyanin, World Bank Country Manager for Liberia.  “The project will help make access to electricity more affordable by subsidizing the cost of connection and more inclusive by explicitly targeting the poor.”

GPOBA will pay LEC a capital subsidy of US$595 for each connection installed. The connections made through the output-based aid (OBA) scheme will help LEC increase its customer base and secure resources for further investments in access programs. Also, the utility will be able to speed up its goal to reduce tariffs and subsequently energy expenditure for Liberian households. LEC estimates that for every 10,000 new customers it acquires, tariffs will reduce by US$0.03-0.04. Ultimately, the savings made by households will help make more spending available for other commodities and education. LEC will receive the subsidy payment in two phases and in accordance with the OBA approach, only after independent verification of household connections. 80 percent will be paid after a connection in a priority neighborhood is made and verified; and the remaining 20 percent will be paid upon verification of proof of three months satisfactory service delivery to target households.

“We hope that by using this innovative and results-based approach--as part of a wider effort to expand distribution and power generation capacity in Monrovia—we can make affordable electricity connections a reality for all and help to improve living conditions among the poor,” said Shahid Mohammad, CEO of Liberia Electricity Corporation (LEC).

The GPOBA project is part of the Liberia Electricity System Enhancement Project (LESEP).  The scheme will be financed jointly by GPOBA (US$10 million), the Government of Norway (US$5.8 million), and user contributions (US$0.8 million).  LESEP is funded through a US$29 million grant from the Government of Norway, a US$10 million IDA credit from the World Bank and US$2 million grant from the World Bank’s Africa Renewable Energy Access (AFREA) program.

Contacts: In Washington: Jacqueline Sibanda, tel. (+1) 202 458 2974, jsibanda@worldbank.org.In Monrovia: Michael Sahr, tel. (+231) 88 6514 321, msahr@worldbank.org

For more information about Projects in Liberia see Africa Projects

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Power tariffs:caught between cost recovery and affordability

This is the first paper to build a comprehensive empirical picture of power pricing practices across Sub-Saharan Africa, based on a new database of tariff structures in 27 countries for the years 2004-2008. Using a variety of quantitative indicators, the paper evaluates the performance of electricity tariffs against four key policy objectives: recovery of historic power production costs, efficient signaling of future power production costs, affordability to low income households, and distributional equity. As regards cost recovery, 80 percent of the countries in the sample fully recover operating costs, while only around 30 percent of the countries are practicing full recovery of capital costs.

However, due to the fact that future power development may be based on a shift toward more economic technologies than those available in the past, existing tariffs look as though they would be consistent with Long Run Marginal Costs in nearly 40 percent of countries and hence provide efficient pricing signals. As regards affordability, today's average effective tariffs are affordable for 90 percent of today's customers. However, they would only be affordable for 25 percent of households that remain unconnected to the grid. Tariffs consistent with full recovery of economic costs would be affordable for 70 percent of the population. As regards equity, the highly regressive patterns of access to power services, ensure that subsidies delivered through electricity tariffs are without exception also highly regressive in distributional incidence.

The conclusion is that achieving all four of these policy objectives simultaneously is almost impossible in the context of the high-cost low-income environment that characterizes much of SSA today. Hence most countries find themselves caught between cost recovery and affordability.

World Bank.Author:Briceno-Garmendia, Cecilia;Shkaratan,Maria.Document Date:2011/12/01.Document Type:Policy Research Working Paper.Report Number: WPS5904.Volume No:1 of 1

Power tariffs: caught between cost recovery and affordability

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Ethiopia.Second Electricity Access Rural Expansion Project

Ethiopian Electric Power Corporation

World Bank.Document Date: 2011/11/01.Document Type:  Procurement Plan.Report Number:65873.Volume No: 1 of 1

Ethiopia - Second Electricity Access Rural Expansion Project : procurement plan

Ethiopia Electricity Access Rural Expansion Project.GPOBA

The main objective of the GPOBA project is to increase access to electricity in rural towns and villages with grid-access, by assisting EEPCo in its connection fee financing program, extending loan tenors of five years to poor household customers. In addition, the GPOBA grant will finance two energy efficient Compact Fluorescent Lamps (CFLs) for poor households (hhs). Those CFLs will be delivered as part of the connection package to both ensure an affordable bill for hhs and promote energy efficiency. The increased access to electricity will improve the quality of life, enhance educational services, and provide incomegenerating opportunities.

World Bank.Author: Golumbeanu,Raluca Georgiana.Document Date:  2011/12/03.Document Type: Implementation Status and Results Report.Report Number: ISR4865

Ethiopia - Ethiopia Electricity Access Rural Expansion Project, Phase II - GPOBA : P105651 - Implementation Status Results Report : Sequence 05

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Liberia.Additional Financing Electricity System Enhancement Project

Approval Date N/A.Closing Date N/A.Total Project Cost** 23.45.Region Africa.Major Sector (Sector) (%) Energy and mining (Thermal Power Generation) (90%)Energy and mining (General energy sector) (10%).Themes (%) Urban services and housing for the poor (100%).Environmental Category B.Bank Team Lead Missfeldt-Ringius, Fanny Kathinka.Borrower/Recipient REPUBLIC OF LIBERIA.Implementing Agency LIBERIA ELECTRICITY CORPORATION LEC

Liberia. Additional Financing Electricity System Enhancement Project

World Bank.Document Date:2011/11/10.Document Type: Project Information Document.Report Number:AB6868.Volume No:1

Liberia.Additional Financing for the Liberia Electricity System Enhancement ProjectDocument Date: 2011/12/02.Document Type: Integrated Safeguards Data Sheet.Report Number:AC6597.Volume No: 1 of 1
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Nepal.Electricity Transmission Expansion and Supply Improvement Project

The project will improve the reliability of energy supply in Nepal and strengthen the transmission infrastructure needed to promote Nepal s capacity for cross-border energy trade. It will provide support in three critical areas in the electricity supply industry, which has experienced severe underinvestment: (i) electricity transmission capacity expansion, (ii) strengthening of distribution systems including those along the Tamakoshi (Khimti) Kathmandu transmission line, and (iii) rehabilitation of selected small hydropower plants.

Asian Development Bank.Project Number

41155- 07

41155- 06

41155- 04

41155- 02

41155- 01

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Zambia.Increased Access to Electricity

The objective of this project is to increase access to electricity services and improve efficiency and quality of the electricity distribution system in targeted areas.

World Bank.Author:Rezaian,Abdolreza B.Document Date:2011/12/03.Document Type: Implementation Status and Results Report.Report Number:ISR4046

Zambia - Zm: Increased Access to Electricity : P077452 - Implementation Status Results Report : Sequence 06

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West Bank and Gaza.Gaza Electricity Network Rehabilitation Project

The objective of the Gaza Electricity Network Rehabilitation Project is to improve the reliability of the electricity networks in Gaza and Gaza Electricity Distribution Corporation (GEDCO's) capacity in system operations and management. Negative measures include: dust, noise pollution, water pollution, waste management, and soil erosion.

Mitigation measures include: a) the vehicles used for transporting the materials will be covered and water will be sprayed during windy or stormy weather; during the excavation the contactor shall undertake works during the daytime so as to cause least disruption and inconvenience to the local population. In the event that there are any complaints, then measurement will be taken (55db during day and 45db during night); b) all vehicles in the work location shall be licensed and insured and be exposed to check regarding emission of exhausts from environment authority, and to be sure that emission rates are not over the permitted limit; c) to prevent soil erosion during the digging process for the bases of the poles or to bury the underground cable, the soil will be compacted.

Also work will be stopped during heavy rains to reduce soil erosion and accidents; and d) the contractor shall get rid of remnants of excavation in safe places that have been previously selected by the concerned municipality. However, excavated soil or dirt will be used to refill once cables are laid.

World Bank.Document Date: 2011/11/01.Document Type:Environmental Assessment.Report Number:E2899

West Bank and Gaza.Gaza Electricity Network Rehabilitation Project

Environmental and Social Impact Assessment

Executive Summary.

India.Fourth Power System Development Project:procurement plan

PROCUREMENT PLAN UNDER PSDP-IV LOAN [AS ON 30.09.2011].2500 MW HVDC BIPOLE ALONGWITH BIPOLE CONVERTOR STATIONS AT BALIA & BHIWADI.NORTH-WEST TRANSMISSION CORRIDOR STRENGTHENING SCHEME.WESTERN REGION SYSTEM STRENGTHENING SCHEME-II (SET-B).WESTERN REGION SYSTEM STRENGTHENING SCHEME-II (SET-D).EAST - WEST TRANSMISSION CORRIDOR STRENGTHENING SCHEME.EASTERN REGION STRENGTHENING SCHEME-I.SYSTEM STRENGTHENING - XIII IN SOUTHERN REGION.

Document Date:  2011/09/30.Document Type:  Procurement Plan.Report Number: 65855.Volume No:1 of 1

India.Fourth Power System Development Project:procurement plan

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Bolivia.Cochabamba.La Paz Transmission Line

The operation will finance the construction of a new 230 kV transmission line between Cochabamba and La Paz. This line will improve the security of supply in the north of the National Interconnected System, particularly in the cities of La Paz, el Alto and Trinidad.

IDB.BO-L1072 : Cochabamba - La Paz Transmission Linef

Nigeria Electricity and Gas Improvement Project

The development objectives of the Project are to: (i) improve the availability and reliability of gas supply to increase power generation in existing public sector power plants; and (ii) improve the power network#s capacity and efficiency to transmit and distribute quality electricity to the consumers.

World Bank.Author: Fernstrom,Erik Magnus.Document Date: 2011/12/01.Document Type:  Implementation Status and Results Report.Report Number:ISR4948

Nigeria Electricity and Gas Improvement Project (NEGIP) : P106172 - Implementation Status Results Report : Sequence 04

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Nigeria National Energy Development Project

To continue support for the Borrower#s energy sector reform and key regulatory and policy institutions; II. To increase efficiency in the power sector and to improve the supply of electricity and service delivery; III. To demonstrate possible models to scale-up electricity access; and IV. To continue support for the Borrower#s gas sector reform to improve gas supply for power generation.

World Bank.Author Fernstrom,Erik Magnus .Document Date:  2011/12/01.Document Type:  Implementation Status and Results Report.Report Number:  ISR4945

Nigeria - Nigeria National Energy Development Project : P090104 - Implementation Status Results Report : Sequence 13s

IDB provides $200 million to make Dominican electricity sector more efficient and reliable

The Inter-American Development Bank (IDB) approved a loan of $200 million to support the Dominican Republic’s efforts to improve the efficiency, financial management, supply and service quality of the electricity sector.

The program, approved by the IDB Board of Executive Directors on Wednesday, seeks to reduce generation costs and extend coverage of targeted electricity subsidies for poor families. It also aims to improve the managerial, operational and financial sustainability of power distribution companies, as well as to increase the reliability of services and to make them more affordable for the country’s low-income population.

The Dominican Republic’s three regional distribution companies (EdeNorte, EdeSur and EdeEste) have made progress in the last two years. The number of invoiced clients rose 53 percent from last year while the number of circuits without blackouts – a measure of service quality – rose 42 percent.

To cement this progress, indicators have been established to maximize operational and financial efficiency, including increasing the number of registered customers and customers with 24-hour service, and setting specific targets to reduce electricity losses.

To this end, the finances of the distribution companies must be strengthened in order to reduce government transfers to the electricity sector. In turn, this will benefit the country’s fiscal accounts, which are vulnerable to changes in international oil prices, and will free up resources for social investment and other priorities.

"Thanks to the progress achieved in the electricity sector, the quality of the management teams at the CDEEE (the Dominican power utility holding company) and the distribution companies, and the implementation of changes proposed by the IDB program, the outlook for the Dominican electricity sector is improving,” said IDB energy specialist Jorge Mercado, the project’s team leader. “We are starting out on a path that will lead to better financial and operational results.”

This is a policy-based programmatic operation, based on the achievement of policy and institutional improvements. The loan is for 20 years, with a five-year grace period and an interest rate based on LIBOR. The executing agency is the Ministry of Finance.

The new program complements the IDB's previous support of the Dominican Republic energy sector, including the development of the Electric Sector Modernization Plan, improvements in power transmission and the promotion of technical and operational reforms that this new program will continue. The IDB is currently executing the Electricity Distribution Networks Rehabilitation Project and studies to improve energy efficiency. At the same time, the Bank is financing private sector projects to diversify the energy matrix through wind power generation

IDB. News Releases.Nov 3, 2011

Ecuador to improve access to electricity in rural and marginal urban areas

The Inter-American Development Bank (IDB) has approved a $40 million loan with which Ecuador will increase and improve access to electricity in rural and marginal urban communities.

"The loan will finance projects that will connect 30,000 households in rural and marginal urban areas to electrical power and improve the service that 210,000 other homes have today," said IDB project team leader Arnaldo Vieira de Carvalho.

To ensure economically viable, sustainable, reliable, and high-quality access to electricity, the project includes institutional strengthening and training in the formulation, implementation, monitoring, and economic and financial evaluation of rural electrification projects.

Bringing electricity to a community typically allows for a longer workday in the home and the use of tools that increase domestic productivity. By the project’s completion in 2013, the reading time available to children and adults in dwellings receiving electricity for the first time will increase 50 percent; the sense of security and quality of life in benefited communities is expected to rise 40 percent; and the projected number of economically active persons per household and of businesses per community will double.

In 2009, an estimated 92.6 percent of Ecuadoreans had electricity (95.7 percent in urban areas and 84.7 percent in rural areas). Preliminary data from the 2010 census indicate that approximately one million people had no electricity. The government is targeting 97 percent national coverage by 2013.

The IDB has supported the development of Ecuador’s electricity sector for more than 40 years.

The loan is for 25 years, with a two-year grace period and an interest rate based on LIBOR. The Ministry of Electricity and Renewable Energy, supported by the National Electricity Board, is responsible for the project, which is part of Ecuador’s Program for Rural and Marginal-Urban Electrification (FERUM).

IDB. News Releases.Nov 3, 2011