According to the Bank’s website, the project development objective is to increase energy access in Lesotho. The proposed project will finance grid extensions and last mile connections to electrify households in selected villages throughout Lesotho, a distributed renewable energy pilot program to electrify households that are beyond the reach of the national grid, and include the provision of technical assistance and project management support.

The project complements and builds on the ongoing LREEAP, following an integrated approach to electrification in line with the National Energy Compact (2025). Totaling IDA US$50 million across three components, the project will focus on expanding the grid network in peri-urban, rural, and highland areas, a pilot program to increase off grid solar access for those beyond the reach of the grid, and the implementation of technical assistance and capacity building activities.

Component 1: Increasing Access to On-Grid Electrification (IDA US$40 million).
Component 2: Off-Grid Energy Access Pilot (IDA US$5 million).
Component 3: Technical Assistance and Project Management (IDA US$5 million).

The Environmental risk is classified as Moderate. The risks and impacts associated with the activities under the Project are considered site specific, predictable and can be managed through known mitigation measures and systems already in place. The specific activities which will be financed under component 1 include the construction of new Medium Voltage (MV) and Low Voltage (LV) distribution lines, the installation of transformers, and service drops to customers and prepaid meters. These construction activities will largely take place in undeveloped green field. Anticipated impacts associated with the project activities and based on the LREEAP experience include; i) health and safety risks such as working at heights, electricution, slips trips and falls, hand injuries, ii) community health and safety risks such as traffic related incidences, iii) soil and water pollution associated with construction vehicles and use of potential polluting substances, iii) soil pollution related to generation of hazardous and non-hazardous waste, iv) dust and noise pollution and v) vegetation loss. These impacts can be mitigated through the implementation of mitigation measures to be provided in the site specific ESMP. Component 2 focuses on off-grid solar energy solutions pilot, targeting remote households and communities beyond the reach of the current national grid of which the exact locations have not yet been defined. The risks and impacts will therefore only be fully known after project approval. Potential impacts are anticipated to be similar than those associated with Component 1 in addition to soil and water pollution associated with improper disposal of end-of-life solar panels and batteries. Component 3 will support Type 2 and type 3 Technical Assistance (TA). The TA activities are not likely to have any downstream adverse environmental impacts and risk but can rather be used to strengthen environmental and occupational health and safety aspects related to ASCENT activities in Lesotho.

The Social risk rating is classified as Moderate. Financing under Component 1 will support construction of new MV and LV distribution lines, installation of transformers, and deployment of service drops and prepaid meters. To mitigate affordability barriers to household connections, the Project will additionally provide ready boards for customers lacking the resources to undertake internal wiring. Anticipated risks and impacts associated with these activities include: (i) community health and safety risks, particularly those arising from small-scale construction works, including potential accidents involving nearby residents, increased traffic-related hazards, and the spread of communicable diseases;ii) temporary land-related impacts associated with short-term land acquisition and restrictions on land use, which may result in temporary loss of access to land, disruption of livelihoods, or localized impacts on crops and other assets during construction of new MV and LV distribution lines, installation of transformers; iii) moderate SEA/SH risks, particularly related to interactions between project workers and local communities, as well as the potential for sexual harassment within the working environment; iv) Stakeholder engagement risks restakeholder ulting from the project area that spans multiple districts characterized by rural settlements that are predominantly scattered across ugged rmountainous terrain, especially in Thaba Tseka, Mokhotlong, and Qacha’s Nek, resulting in difficult access to services, markets, and modern energy infrastructure.

Total Project Cost: US$ 50.00 million
IDA Credit: US$ 50.00 million

CONTACT POINT - World Bank

Task Team Leader: Renee Berthome
Title: Energy Specialist
Email: rberthome@worldbank.org

TTL Contact: Leesle Hong
Job Title: Energy Specialist
Email: lhong1@worldbank.org

ACCESS TO INFORMATION

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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