The World Bank has approved US$85 million of funding to help the government of Senegal and the Senegal National Power Utility (SENELEC) to improve electricity services in the country.
The financing will be used over a five-year period to upgrade and modernise electricity transmission and distribution components; create more transparency and accountability within the energy sector; develop a medium and long term strategy for the energy sector; and upgrade SENELEC billing systems to reduce high collection costs and losses related to fraud.
The project cost of US$93.5 million will be financed by the US$85 million credit from the International Development Association (IDA), the Bank’s fund for the world’s poorest countries, and US$ 8.5 million from the government of Senegal.
SENELEC’s commercial performance will be enhanced by installing pre-pay modular meters and electronic smart meters capable of being read remotely. The project includes support for the introduction of energy efficient lamps, and price incentives for consumers to reduce energy consumption.
The project is supportive of the government’s new push to improve efficiency of the energy sector and increase energy supply.
Commenting on the announcement, Jamal Saghir, the World Bank’s director for Sustainable Development, Africa Region, said: “The development of energy infrastructure is a key component of the World Bank’s strategy to support economic development in Senegal and across the African continent. Senegal is facing an energy crisis and this funding will help the national utility, SENELEC to provide reliable electricity supply for economic growth and improve human well-being.”
Vera Songwe, the World Bank’s country director for Senegal, added: “The project’s aim is to increase the energy sector’s efficiency and accountability. The Senegalese people are demanding greater, better and reliable services from their elected leaders and better governance in all productive sectors of the economy; in order to restore growth.”
