The World Bank has given ZESCO a 100 million U.S Dollar grant to improve the utility's financial performance and operational reliability.
The grant will also partly support the Rural Electrification Authority -REA- with strengthening the implementation of the Rural Electrification Fund.
World Bank Country Director NATHAN BELETE says the support will further enhance Zambia's procurement processes for non-hydropower renewable energy projects.
Mr. BELETE says the support, which is under the National Energy Advancement and Transformation -NEAT- Programme, is part of the 10-year 700-million U.S Dollar facility aimed at increasing the financial sustainability, operational reliability, and resilience of the electricity sector in Zambia.
He said this when he and Finance and National Planning Minister SITUMBEKO MUSOKOTWANE signed the programme's first phase, which will be implemented from 2024 to 2026.
Speaking at the same event, Dr. MUSOKOTWANE said the key activities of the project include supporting ZESCO to manage its debt and arrears, optimising operational costs and reducing the upfront cost of connecting new customers through a grid connection subsidy.
Dr. MUSOKOTWANE said the support will also help the establishment of the Rural Electrification Fund -REF- which will catalyse the electrification of rural communities.
At the same event, Mr. BELETE and Dr. MUSOKOTWANE also signed a 150 million U.S Dollar financing agreement for the Girls' Education and Women's Empowerment and Livelihoods for Human Capital Project -GEWEL 2.
GEWEL -2 aims to deepen human capital growth and promote the productivity of the poorest and most vulnerable Zambians for longer-term development outcomes.
ZNBC