Angola receives US$250m from World Bank to enhance electricity access

ANGOLA – The government of Angola has received US$250 million from the World Bank to improve the operational performance of the electricity sector utilities and increase electricity access in selected cities of Angola.

The  Electricity Sector Improvement and Access Project will finance electrification investments in the provinces of Luanda, Benguela, Huila, and Huambo, delivering 196,500 new electricity connections that will benefit close to one million people and 93,857 public lights.

The project will focus on electricity access expansion and improvement of revenue collection, electricity service improvement, capacity improvement of the public electricity producer (PRODEL, Empresa Pública de Produção de Electricidade), and strengthening sustainable management of generation plants.

The project also aims to increase the commercial performance of the national electricity distribution company (Empresa Nacional de Distribuição de Electricidade, ENDE) as well as provide financing to the national transport network Rede Nacional de Transporte, RNT) for targeted interventions to improve and optimize the dispatch of electricity supply and the overall management of the national transmission network.

“Quality access to electricity services will have a spill over effect in many other sectors, including agribusiness, health, education, just to name a few”

Jean Christophe Carret – World Bank Country Director, Angola

Further, the Project will also finance immediate measures to raise the operational, commercial, and technical capacity  of  the three national power utilities, leading to significant electricity service improvement.

“Investment in infrastructure, especially in energy, is key to  economic development, ” said Jean-Christophe Carret, World Bank Country Director to Angola 

Angola’s power generation capacity, largely based on hydropower, has developed at a fast pace with the national installed generation capacity quadrupling in just one decade, but transport, distribution and cost recovery remains a challenge.

Less than 40 percent of Angolans have access to electricity, with inadequate electricity services impacting poverty, productivity, and regional disparities.

The project, therefore, aims to deliver the most critical actions needed to help expand electricity access, improve the operational and commercial performance of utilities, and ultimately boost their creditworthiness.

That will in turn contribute to reducing extreme poverty, improving the resilience of communities to impacts arising from Covid-19, and increasing shared prosperity.

The total project cost is US$417 million, financed with a US$250 million loan from the World Bank and a credit of US$167 million from Agence Française de Développement.

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