World Bank Funds Mali’s RE Shift with Financing worth $22.7 Million

The World Bank has announced that its Board of Executive Directors has permitted a $22.7 million financing to back Mali’s efforts to develop access to modern services and encourage the deployment of renewable energy in rural areas.

The financing package is composed of a $20 million equivalent credit from the International Development Association (IDA) and a $2.7 million grant from the Japan Policy and Human Resources Development Fund. This signifies an additional financing to the Mali Rural Electrification Hybrid System Project, which was sanctioned by the Board on December 2013.

The complete project (original and additional financing) is projected to benefit around 760.000 people, which includes households, businesses, and community service facilities that are connected to the mini-grids, and the consumers that have access to electricity through solar home systems and portable solar lanterns.

Soukeyna Kane, World Bank Country Director for Mali, said that access to basic infrastructure is critical for the eradication of extreme poverty in the region and low-cost renewables could help by reducing costs in a d

“Access to basic infrastructure services is critical for the creation of economic opportunities and the eradication of extreme poverty. By introducing lower-cost renewable energy generation in diesel mini-grids, the project contributes to reducing operating costs. It also addresses the gender gap by strengthening ongoing actions to ensure that women, including female-headed households, are trained, have access to information and can benefit from electricity services and income-generating activities,” Kane said.

The IDA credit will consolidate the activities of the original project. The grant will also support the installation of solar home systems in households not living within the vicinity of a mini-grid, the deployment of solar lanterns, and the delivery of communication and awareness-raising campaigns in targeted areas.

It is delivered as part of Japan’s technical assistance program to increase the delivery of off-grid electricity and other energy services in rural areas of brittle and conflict-affected states in African Countries.

This financing accompaniments equivalent efforts arranged by the World Bank Group and the government of Mali to generate the enabling conditions for the reform of the electricity sector and assist the shift towards low-cost electricity supply in both urban and rural areas.