Sustainable Energy and Broadband Access in Rural Mozambique Project (WB-P175295)

Countries
  • Mozambique
Geographic location 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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 6, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Mozambique
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 205.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 26, 2021

Disclosed by Bank Dec 11, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided information, the project development objective is to increase access to energy and broadband services and strengthen the financial performance of the power sector.

The project has four components:

  1. Component 1: Peri-urban and Rural Electrification (US $85 million). Building on the ongoing activities under the WB-financed Mozambique Energy for All (ProEnergia) Project (P165453), this component will provide access to electricity to over 1,000,000 beneficiaries primarily through grid densification and expansion. This component will finance the design, procurement of materials and construction works required to electrify all participating households, businesses and public facilities in the project target areas with high population density (in peri-urban and rural areas). 

  2. Component 2: Improvement of EDM financial performance (US $60 million). This component will improve financial performance of EDM and strengthen structural and institutional framework of the sector. This component will comprise the following two pillars: a) improve electricity sector financial sustainability through measures to enhance EDM’s financial and operational performance; and b) enhance sector governance and institutional capacity by supporting the government’s policy positions being proposed through a revision of the Electricity Law. It will also aim to capture opportunities to better leverage EDM’s fiber-optic network and utilize its transmission infrastructure to support broadband market development while generating additional revenue.

  3. Component 3: Off-grid energy and broadband service delivery (US $45 million). This component will support electrification of areas in Mozambique where off-grid solutions are the least-cost or most-viable solutions due to (i) high costs of the infrastructure required to reach customers through the grid, or (ii) difficulty to provide grid solutions due to risks related to the escalating conflict.
    1. Sub-component 3a: Off-Grid solutions for electricity access (US $25 million)
    2. Sub-component 3b: Broadband Access for Underserved Areas and Target Groups (US $15 million)
    3. Sub-component 3c: Clean Cooking Solutions (US $5 million and US$5 million from Clean Cooking Fund)

  4. Component 4: Technical Assistance and Implementation Support (US $10 million). This component will finance capacity building, sector studies, implementation support for the implementing agencies (expected to be EDM, MIREME, FUNAE, and MCT), and verification of PBCs. The capacity of FUNAE will need to be substantially strengthened for implementation as its track record has been uneven.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

World Bank:
Zayra Luz Gabriela Romo Mercado, Casey Torgusson, Samuel Kwesi Ewuah Oguah
Senior Energy Specialist

Borrower:
Ministry of Economy and Finance
Adriano Ubisse
National Director of Treasury
adriano.ubisse@mef.gov.mz

Implementing Agencies
Ministry of Mineral Resources and Energy (MIREME)
Pascoal Bacela
National Director of Energy
pbacela1@gmail.com

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

Ministry of Transport and Communications (MTC)
Horácio Parquínio
Director General of ICT
horacio.parquinio@mtc.gov.mz

Electricidade de Moçambique (EdM)
Marcelino Gildo Alberto
CEO
marcelino.gildo@edm.co.mz 

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission 

ACCOUNTABILITY MECHANISM OF THE 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. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint 

How it works

How it works