Page 5 - AfrElec Week 50 2021
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AfrElec                                       INVESTMENT                                             AfrElec




       World Bank to fund $150mn power





       recovery plan for Somalia





        SOMALIA          THE World Bank is to lend $150mn to boost  the provision of adequate health and education
                         electricity access across Somalia by funding off-  services, and for responding effectively to the
                         gird green power initiatives in a bid to alleviate  COVID-19 pandemic and future shocks. The
                         poverty and to boost post-coronavirus (COVID-  project is set to enhance health and education
                         19) economic recovery.               services by providing electricity access to 205
                           The Somalia Electricity Recovery Project is  health facilities and 380 schools.
                         set to increase access to cleaner, lower cost elec-  90% of Somalia’s electricity is supplied
                         tricity for 1.1mn households, or approximately  through isolated diesel‐based mini-grids oper-
                         7mn people, of which 3.5mn are women. The  ated by private energy service providers (ESPs).
                         project also aims to re-establish a stable electric-  The combination of a highly fragmented private
                         ity supply and support regional integration, the  electricity sector along with an installed capac-
                         World Bank said.                     ity that is inadequate to serve current and future
                           Out of a population of about 15mn, 9mn  demand has resulted in an inefficient and expen-
                         Somalis lack access to electricity services, and  sive supply given the lack of economies of scale.
                         the cost of power is among the highest in the   Somalia also has significant potential for
                         world. In addition, almost nine out of 10 Somali  using renewable energy for electricity genera-
                         households are deprived in at least one dimen-  tion, particularly solar and wind energy, as iden-
                         sion of poverty – monetary, energy, education,  tified by numerous assessments by the World
                         or water and sanitation, according to the World  Bank.
                         Bank’s 2019 Somalia Poverty and Vulnerability   “The project’s design builds on the World
                         Assessment.                          Bank’s experience of supporting local insti-
                           The combined impacts of the COVID‐19  tutions in fragility, conflict & violence (FCV)
                         pandemic, devastating flooding, droughts and  affected countries, with the goal of enhancing
                         a desert locust infestation further undermine  local knowledge and capacity to improve service
                         economic recovery and efforts to reduce poverty.  delivery and build back better using green and
                           “Access to affordable electricity is critical for  resilient solutions,” said Erik Fernstrom, World
                         reducing poverty, as it helps increase household  Bank Practice Manager for infrastructure in
                         income, improve the business climate and create  Southern and Eastern Africa.
                         jobs,” said Kristina Svensson, World Bank Coun-  The Federal Government of Somalia (FGS),
                         try Manager for Somalia.             as an active member of the Horn of Africa Initia-
                           “This project complements and leverages  tive (HoAI), can also leverage the opportunities
                         programmes by the World Bank Group and  offered by regional integration to leapfrog the
                         those of international partners in Somalia by  establishment of backbone transmission infra-
                         scaling up investments to improve service  structure and have access to diverse and low‐cost
                         delivery.”                           electricity supply from regional neighbours.™
                           Access to electricity is also a pre‐requisite for





























       Week 50   16•December•2021               www. NEWSBASE .com                                              P5
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