BACKGROUND

ing wood for fuel has also led to increased deforestation in Ethiopia.
Under the Ethiopia Energy Access Project (FY03, US$132.7 million equivalent),
the World Bank financed the purchase, distribution, and installation of 1 million energy-
efficient stoves to Ethiopian families whose prior source of cooking energy was wood.
In addition to providing electricity for the first time to some 3.5 million people
(700,000 households), ongoing projects have addressed issues such as energy efficiency,
electricity affordability for people in rural areas, ways of providing modern energy to
remote areas, and ways to ensure that grid-access increases productivity and wealth.
For households already electrified, the World Bank is financing the replacement
of incandescent light bulbs with the more energy-efficient Compact Fluorescent Light
bulbs, reducing at least 55% of poor customers' electric utility bill as well as drastically
reducing their carbon footprint.
The WB is supporting Ethiopia in mini-hydropower and solar photovoltaic power
systems for off-grid public institutions, social services, and residents, as well as in the
"Lighting Africa" program for those in remote areas, which seeks to replace lanterns and
other fuel-based lighting with modern, safer products such as hand-cranked, or solar
powered, portable light products.
With support from Global Program on Output-Based Aid, the World Bank is
reducing the cost of individual house connections to electric utility poles, which had been
a major barrier for the poor to have metered electricity, even once the power grid had
reached the village.
Furthermore, a joint energy and agriculture team is working on piloting post-
harvest agriculture productivity in areas where grid access becomes available to assure
that electricity is not only used for lighting, but also for other productive uses.
Guinea

In Guinea, electricity service is available almost exclusively in the capital and
even there it is at best sporadic. In an attempt to improve sector performance, the electric
utility, EDG was concessioned in 1994, but the concession collapsed in 2001 and has
been in the Governments hands since then. The sectors condition was at a crisis level
for years, and was recently approaching a state of collapse, especially given the utilitys
inability to collect revenues for sold power.
The World Bank in partnership with the Government of Guinea undertook urgent
efforts to address the crisis. The Guinea Decentralization and Rural Electrification
Project (FY03, US$5 million equivalent IDA, US$2 million GEF) has seen promising
developments in Guineas power sector with respect to fostering rural electrification.
The project has also enabled 4000 rural households to have electricity for the first time,
with another 15,000 currently in the planning stages.
Other results from the project so far include:
14 consulting firms have been trained
The decentralized electrification financing mechanism is operational and has a
sustainable source of government financing and financial support from donors,
including 14 loans awarded so far, 16 projects in the pipeline
About 800 million Guinean Francs mobilized from the private sector for rural
electrification
2 solar projects and 2 mini hydropower projects under development
The project has already facilitated 9 sub-projects currently in operation, 5 sub-
projects under construction, and an additional pipeline of 16 sub-projects with confirmed
private sector sponsors, under an innovative low-cost Small & Medium Enterprise (SME)
approach. The projects have been implemented in all 4 regions of Guinea in varying
demographics and socio-economic conditions from small villages to larger rural towns.
Substantial interest has been generated from the local SMEs for the participation in the
program, even surpassing available financing.

Guinea-Bissau

The Guinea-Bissau Multi-sector Infrastructure Rehab (FY06, US$15 million) project
provided emergency power to Guinea-Bissau in January 2008 at a time when the
countrys only 1.2 Megawatts of power generation had failed. The project provided a
short-term alternative to total darkness while adding another 2.3 Megawatts from leased
power generators in February and another interim 5 Megawatts slated for May 2008 until
the broader regional power project is commissioned. In a country where only 2.6% of the
population, mostly in the capital, Bissau, can access electricity, the emergency thermal
power generators provided the stepping stone needed to improve economic and overall
conditions.

Kenya

The Kenya Energy Sector Recovery Project (FY05, US$80 million equivalent)
provided for the upgrade, reinforcement, and extension of Kenyas electricity distribution system, while providing energy meters to connect 400,000 new customers. In 2007,
electric utility company, KPLC, connected 122,000 new customers to power supply. The
number of electricity consumers has increased from 600,000 to 1,000,000 as of January
2008 and system losses have come down from about 18.7 percent in 2004 to about 17.6
percent as of June 2007. The European Investment Bank, the Agence Française de
Développement, and the Nordic Development Fund are co-financing the project.
Kenya is also taking advantage of the projects resources to create a Geothermal
Development company to take over geothermal exploration from KenGen and sell
geothermal steam to private and public generators. This would add to Kenyas current
128 Megawatts of geothermal power already installed. The project is also financing an
extension of the Olkaria II geothermal power plant with a third, 35 Megawattt generator.
The Olkaria II extension also qualifies for carbon financing because of geothermal
powers renewable characteristics. Meanwhile, the private sector is also expanding its
geothermal power plant with a 35 Megwatt generator with the help of a MIGA guarantee.

Mali

In Mali, barely 8 percent of the rural population has access to electricity. Most
rural households meet their lighting and small power needs with kerosene, dry cell and
car batteries. About half of the 5700 villages of Mali have a school or health center clinic
or both; however, most are without any form of energy for lighting or for operating
equipment.
Under the Household Energy and Universal Rural Access Project, the newly
created rural electrification agency, called AMADER, has approved roughly 40 rural
electrification business plans that will allow a cumulative number of 30,000 household
connections by December 2008. Local private operators are the driving force of this
project. They have provided an average matching co-financing of 25% of the financed
programs.
AMADER has innovated in adding a public lighting network to the
multifunctional platforms. A total number of 3,400 public lighting points and cumulative
number of 690 public and community institutions and centers are connected including 82
schools and 45 health centers. These multifunctional platforms are managed by womens
associations who receive training in basic accounting in local language provided by the
project. By moving from open fires and candles to higher energy services, children are
able to do their homework at night, nighttime motherhood is safer, people can generate
income in new ways, such as through ice-making, food-processing, and rural telephony,
and markets are open at night for business. Recreational activities such as weddings,
traditional ceremonies as well prayer sessions can now be extended after daylight to the
delight of villagers.
The household energy component of the project funded the distribution of
421,000 improved wood and charcoal stoves, and 30,000 Compact Fluorescent Lights
which use less energy and emit less carbon. Access to better cooking equipment reduces
health risks associated with indoor air pollution, such as acute respiratory diseases, lung
cancer, and low birth weight.

Rwanda
Rwandas electric grid was all but decimated in the 1994 civil war, and had not
been maintained since. Power service was unreliable, unsafe, or was lost to technical
losses or theft. Under the Rwanda Urgent Electricity Rehabilitation Project (FY05,
US$29.9 million), the World Bank has helped Rwanda to begin the repair of its electric
grid, and helped Rwandas electric utility to reestablish operations and financial well
being.
To manage heavy peak electricity demand, the Bank financed the distribution of
Compact Fluorescent Light bulbs, which use less power, emit less carbon, and last longer
than traditional lights, to 50,000 households. The program will distribute 400,000 CFLs
by the projects end and is Rwandas first carbon finance project.
Although Rwanda is still using costlier emergency diesel fuel generators while
other power sources are developed, these steps will help provide the foundation for the
countrys electricity access expansion program, which aims to connect 200,000
households in the next several years, compared to 85,000 currently.

Senegal

Under the Senegal Electricity Services for Rural Areas (FY05, US$29.9 million
equivalent IDA and US$5 million GEF) project, 20,000 families, businesses, and social
services in rural areas now have access to electricity, whereas before they had none. This
project enabled the private sector to bid on the development of new connections for rural
customers to increase their access to modern energy services.

Tanzania