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Mali energy sector boosted with $120 M of World Bank support to increase access and efficiency

The World Bank’s Executive Board today approved an International Development Association (IDA) credit in the amount of US$120 million for the Mali Energy Support Project to improve access and efficiency of electricity services in Bamako, the capital city, and in targeted rural areas.
This financing aims mainly to upgrade transmission and distribution networks of Energie du Mali Société Anonyme (EDM SA), the water and electricity utility.  Such upgrades will enable Mali to fully utilize additional thermal capacity under construction and expected gas generated power from Côte d’Ivoire and Ghana. “The project will advance the Government of Mali’s effort to expand access, as electricity services will be provided to growth centers that currently receive inadequate or no grid supply. The ultimate objective is to support the country’s shared-growth and competitiveness agenda.” explained Koffi Ekouevi, the Project’s Task Team Leader.

 

The project has three components: 

 

Component 1: Transmission and distribution reinforcement and extension (US$107.0 million). This component is mainly intended to finance:

  • the rehabilitation of the 150 kV transmission line between Ségou (central part of the Country) and Bamako to allow a reliable transit of high voltage power to the capital city;
  •  the construction of a 150 kV loop around Bamako to improve reliability of electricity supply to the Bamako area ;
  • the rehabilitation and extension of the distribution networks in Bamako to provide electricity access to growing quarters of the city;
  •  the expansion of grid access in main secondary towns (Kayes, Sikasso, Koutiala, Kati, and Mopti) and in the Niger River Irrigation Office area particularly in the localities of Siribala, Dougabougou, Sansanding, Molodo and Dioro; 
  • the connection to the main grid of the localities of  Ouléssébougou and Kangaba, currently supplied by isolated diesel units.

Component 2: Energy efficiency and demand side management (US$ 5.0 million).  The key objective of this component is to address the country’s energy security needs through the implementation of energy efficiency measures across various supply and demand side sectors.  The implementation of this initiative is expected to  reduce energy consumption and peak load demand, bringing direct benefits to households and  other consumers (through lowered electricity bills) and the government (through deferred investment in electricity generation for new capacity and enhanced energy security). Furthermore, actions implemented under this initiative are expected to reduce local pollution and global GHG emissions.

 

Component 3: Capacity and institutional strengthening of key sector institutions (US$8.0 million). Experience in the area of energy sector reform over the last five years indicates that more work is needed to strengthen the institutional, legal and regulatory environment and governance to foster an open and predictable business environment attractive to private investors and operators. This component is intended mainly to help restructuring efforts of EDM SA by setting a minimum platform of technical and financial performance targets with monitoring indicators.


Additional information: World Bank in Mali
News date: 18/06/2009


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