In an effort to support Angola’s electricity sector, the World Bank has approved funding of $250 million through its Electricity Sector Improvement and Access Project.
The funds will be directed at increasing electricity access in the cities of Luanda, Benguela, Huila and Huambo. Approximately 196,500 new electricity connections will be installed, benefitting close to one million people.
The project will also assist state-owned electricity company Empresa Pública de Produção de Electricidade with improving electricity expansion and service. Additionally, the project will enhance the commercial performance of Empresa Nacional de Distribuição de Electricidade, the national electricity distribution company.
“Investment in infrastructure, especially in energy, is key to economic development,” said Jean-Christophe Carret, Country Director for Angola, World Bank. “Quality access to electricity services will have a spillover effect in many other sectors, including agribusiness, health and education, just to name a few.”
The funds will also be used to finance the national transport network – Rede Nacional de Transporte – to improve and optimize the distribution of electricity and overall management of the national transmission network.
The total project cost is estimated at $417 million, with a $250-million loan from the World Bank and a credit of $167 million from Agence Française de Développement.
Angola’s hydropower-based power generation capacity has grown at a rapid rate, with domestic installed generation capacity quadrupling in the last decade, but transport, distribution and cost recovery are areas that remain a challenge.