By Mubanga Mubanga
The World Bank has approved an immediate disbursement of US$100 million grant for phase one of the Zambia National Energy Advancement and Transformation (NEAT) programme.
In a statement released by the office of the Secretary to the Treasury, Finance Minister Dr Situmbeko Musokotwane explained that NEAT programme is designed to increase financial sustainability, operational reliability and resilience of the electricity sector in Zambia.
According to the statement, the programme, whose total resource envelope over a period of 10 years is US $ 700 million, is the World Bank’s first energy project in Zambia since 2018.
It stated that under phase one of the NEAT programme, a grant of US $ million has been approved for disbursement from the pledged total of US $ 700 million, scheduled for disbursement between 2024 and 2026.
It stated that the provision of funds under phase one was also a clear demonstration of the confidence that the World Bank has in Zambia’s home grown strategic reforms.
” The US $100 Millon grant comes barely s month after the World Bank approved another grant of US$ 270 million under the Transport Corridors for Economic Resilience (TRACER) project. The government of the Republic of Zambia conveys a special appreciation to the World Bank president Ajay Banga and his tenants at Headquarters, in the region and the country office, for the exptional generosity,” read the statement in part.
The government stated that the World Bank’s approval of the NEAT programme was timely because it would deliver immediate financial boost to ZESCO and support the procurement process for non-hydropower renewables at this critical time when Zambia was experiencing an extensive drought.
It stated that the NEAT programme, will not only support the implementation of the ZESCO’s and Rural Electrification Authority’ s strategic plan but also cater for the energy sector integrated resource plan.
The NEAT would further augment the government’s efforts enhancing reliability and climate resilience of the electricity sector by supporting implementation of the ZESCO strategy for improved customer management, reliability of supply and system resilience to climate change.
