Mozambique Energy: World Bank approves $150M funding for Eletricidade de Moçambique

The World Bank has approved funding worth $150 million for public company Eletricidade de Moçambique (EdM), the company announced in a statement. The amount will be delivered through the International Development Association (IDA) and is intended to “improve EDM’s grid operating capacity as well as operational efficiency.”According to the World Bank, Mozambique has made “significant progress in expanding access to electricity in recent years,” extending coverage to 26% of the population as against 6% in 2006.

As the network grows, EDM “faces increasing challenges of efficiency and reliability”, with total system losses estimated to be higher than the average in sub-Saharan Africa, the World Bank adds.

A 78% share of the support will finance the reinforcement of transmission and distribution lines, the installation of transformers to increase network capacity and the application of other equipment in the cities of Maputo, Matola, Nacala, Pemba and Lichinga.

The remaining amount will be used in the operational and commercial component of EDM, institutional capacity, support in the implementation of the project and training for the Ministry of Mineral Resources and Energy.