Mozambique Ligthing and Grid Access Project (Moz-LIGA) (WB-P165453)

Countries
  • Mozambique
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 16, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Mozambique
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 80.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 27, 2019

Disclosed by Bank Mar 16, 2018


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Project Description

According to bank documents, the project objective is to increase access to electricity for households and enterprises in Mozambique.

The proposed Project will support the expansion of access to peri-urban and rural areas by harnessing and extending existing grid network in OEA and Non-OEA areas and by piloting mini-grids in Non-OEA areas. The Project will support three components that aims at connecting on-grid and off-grid households based on a sustainable approach to electrification that incorporates proven international experience, technical assistance and capacity building support.

  1. On-grid electrification (US67 million IDA). The on-grid electrification component will finance the design, materials and construction works required to connect all households in high population density peri-urban areas located close to existing electricity networks (both in OEA and non-OEA areas). This component will be implemented by EDM and it is expected to provide connections to about 150,000 households (approximately 900,000 beneficiaries). This component will pilot the introduction of new implementation arrangements (e.g., clearer responsibilities for each implementing agency and enhanced supervision arrangements) and new procurement arrangements (e.g., procurement of main equipment in bulk and independent contracts for construction and installation) to maximize the resources available and efficiently implement the Project with the expectation to reduce cost and reach more customers.
  2. Off-grid electrification through mini-grids (US$10 million IDA). This component will be implemented by FUNAE and will support the implementation of mini-grids, on a pilot basis, whose connection to the national grid is not viable in the short- and medium-term. The component will pilot the implementation of the off-grid business model proposed in the NES, where Solar PV mini-grids (with battery storage) are clustered on geographical basis and developed using a PPP model where FUNAE invests in land, distribution network and basic support infrastructure, and the private sector invests in, operates and maintains the generation facilities, and sells power to EDM under a Power Purchase Agreement. EDM would be responsible for retail distribution of electricity and billing collection, reducing collection risks
    from the private operator’s side. Typically, the schemes will be implemented in areas of 150-400 prospective users and approximate demand of 250-500kVA.
  3. Technical Assistance and Implementation Support (US$3 million IDA). This component will finance various technical assistance, capacity building activities and implementation support to MIREME, EDM, FUNAE and ARENE to ensure project sustainability and the monitoring of the impact of the interventions devised and implemented within the other components. The team will explore in detail the activities to be carried out by other DP, particularly those for the newly created ARENE, to ensure complementarity on the activities to be supported under this component. While these activities will be determined during Project preparation, some preliminary areas of support could include:
Investment Description
  • World Bank (WB)
Contact Information

World Bank:
Zayra Luz Gabriela Romo Mercado, Mariano Salto
Senior Energy Specialist

Borrower:
Ministry of Economy and Finance

Ministry of Mineral Resources and Energy
Antonio Manda
Director of Planning and Cooperation
mandamueda@gmail.com

Implementing Agencies:
Fundo de Energia (FUNAE)
Antonio Saide
CEO
aosaide2008@gmail.com


Electricidade de Moçambique (EdM)
Mateus Magala
CEO
mateus.magala@edm.co.mz 

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.