Government and the World Bank has signed a financing agreement worth 100 million United States dollars that will see power utility company ZESCO’s operations.
The agreement dubbed National Energy Advancement Transformation (NEAT) program which will be implemented in various phases over a 10-year duration that will cost US $ 700 million is expected to result in the Utility firm’s financial performance and operational reliability improving.
The deal will also support the Rural Electrification Authority (REA) in strengthening the implementation of the rural electrification fund.
During the signing , World Bank Country Director Nathan Belete explained that the NEAT program illustrates the institution’s commitment to supporting Zambia’s energy policies in alignment with the 8th National Development Plan (8NDP), Vision 2030, and National Energy Policy (NEP), respectively.
“By enabling access to reliable and sustainable energy sources, the program supports the foundation of a private sector driven and inclusive economic growth and therefore fully aligns with the World Bank’s goals of ending extreme poverty and boosting shared prosperity on a livable planet,” Mr. Belete said.
And Minister of Finance and National Planning, Situmbeko Musokotwane said the deal will also result in supporting the implementation of measures identified in the ZESCO strategy for management of debt and arrears.
Dr Musokotwane said the agreement will further optimize operational costs, enhancing revenues, and reducing the impact of the upfront cost of connecting new customers through the grid-connection subsidy program.
He further said the financing will see the development of guidelines for the establishment of the Rural Electrification Fund (REF).
“The proceeds from the fund will help catalyse electrification of our rural areas,” Dr Musokotwane said.
And the parties also signed another financing deal to the tune of US $ 150-million for the second phase of the Girls’ Education and Women’s Empowerment and Livelihoods for Human Capital Project (GEWEL).
Dr Musokotwane said Government will promote human capital development and productivity among poor and vulnerable girls and women, while strengthening adaptive social protection delivery systems.
Meanwhile, the World Bank has launched new Country Economic Monitor (CEM) report showing pathways that can support the country’s productivity to enhance economic transformation, create better jobs, and deliver sustained and inclusive growth.
The new CEM, launched today, titled: Unlocking Productivity and Economic Transformation for Better Jobs, shows that structural issues persist in the Zambian economy despite remarkable economic growth in the 2000s decade, as growth has not been inclusive enough to significantly reduce poverty and create enough good jobs.
