A $35 million credit is approved to help improve institutional environment and financial sustainability to reinforce and expand electricity network and facilitate private sector investment in power generation
WASHINGTON, December 20, 2017--The World Bank today approved a $35 million (about FCFA20 billion) International Development Association (IDA)* credit to support the country’s investments in the energy sector.
The newly approved Togo Energy Sector Support and Investment Project (TESSIP) will help improve the operational performance of the power sector and increase access to electricity in the capital city, Lomé. It will benefit over 80,000 people and small businesses in the urban and peri-urban areas of Lomé who will receive additional daily hours of electricity and a better voltage of electrical current that will enable adequate running of their electrical equipment.
“TESSIP will help Togo in reaching its goals of increasing access to reliable and competitively priced electricity, which is essential for business development, job creation, income generation and international competitiveness. Moreover, it will help create an environment likely to ensure the financial viability of the energy sector so that the private sector can engage in power generation and along the entire value chain,” said Pierre Laporte, World Bank Country Director for Togo.
Although Togo’s performance is improving in terms of energy access, the power system is still facing major issues on security of supply, reliability and efficiency. The main challenge of the sector is maintaining improved access and promoting national autonomy in supplying energy at reasonable cost, while diversifying sources, including in clean and renewable forms.
Most specifically, TESSIP will finance the rehabilitation and reinforcement of the medium and low voltage systems in Lomé, and the expansion of the network with new connections. In addition, the new project will help reduce technical and commercial losses and promote improvements in the management of the national power utility, the Compagnie d’énergie électrique du Togo (CEET), while increasing its cash flow and financial performance by improving billing collection.
“TESSIP will help Togo in reaching its goals of increasing access to reliable and competitively priced electricity, which is essential for business development, job creation, income generation and international competitiveness. Moreover, it will help create an environment likely to ensure the financial viability of the energy sector so that the private sector can engage in power generation and along the entire value chain”, said Pierre Laporte, Country Director for Togo.
The new project supports government’s power sector reform and represents the World Bank’s first investment in Togo’s energy sector since the 1990s. It is in line with the World Bank Group’s Country Partnership Framework for Togo and will contribute to the institution’s twin goals for poverty reduction and shared prosperity. It is also aligned with Togo’s Strategy for Accelerated Growth and Employment Promotion and the 2018-22 National Development Plan currently under preparation.
* The World Bank’s International Development Association (IDA), established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives. IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa. Resources from IDA bring positive change to the 1.5 billion people who live in IDA countries. Since 1960, IDA has supported development work in 113 countries. Annual commitments have averaged about $18 billion over the last three years, with about 54 percent going to Africa.