The World Bank has approved US$85 million in funding to help the government of Senegal and the Senegal National Power Utility (SENELEC) to improve electricity services in the country.
The total project cost of US$93.5 million will be financed by the US$85 million credit from the International Development Association (IDA), the World Bank’s concessionary lending arm, while the balance of US$8.5 million will be provided by the government of Senegal.
The funds will be used over a five-year period to upgrade and modernize electricity transmission and distribution components; create more transparency and accountability within the energy sector; develop a medium and long term strategy for the energy sector; and upgrade SENELEC billing systems to reduce high collection costs and losses related to fraud, the bank said in a statement.
Under the project, SENELEC’s performance will also be enhanced by the installation of pre-paid metres and electronic smart metres capable of being read remotely.
The project also includes support for the introduction of energy efficient bulbs, and price incentives for consumers to reduce energy consumption.