World Bank, recognizing the pivotal role of energy in Zambia’s development trajectory, has taken decisive steps to bolster the nation’s energy sector. With a commitment to fostering sustainability, the World Bank has earmarked a significant $100 million grant. This funding injection is specifically designed to enhance the operational efficiency and financial stability of Zambia’s national power utility, ZESCO.
In a bid to bolster Zambia’s energy sector and pave the way for a sustainable future, the World Bank has allocated a $100 million grant to enhance the operational efficiency and financial stability of the country’s national power utility, ZESCO.
This grant is part of the larger National Energy Advancement and Transformation Program (NEAT), a comprehensive initiative aimed at transforming Zambia’s electricity landscape by 2033. With an overall budget of $700 million, NEAT is poised to revolutionize Zambia’s energy infrastructure, ensuring financial sustainability, reliability, and resilience in the face of climate change challenges.
Achim Fock, the World Bank Country Manager for Zambia, emphasized the significance of this grant in addressing Zambia’s immediate energy needs while laying the groundwork for long-term growth. “This International Development Association grant represents an important step towards supporting Zambia to secure a sustainable and resilient energy future for its people,” Fock stated.
The first phase of the NEAT program, spanning from 2024 to 2026, will focus on enhancing ZESCO’s financial performance and operational reliability. Additionally, it will bolster electrification financing mechanisms through support for the Rural Electrification Authority (REA). Notably, the program will streamline Zambia’s procurement process for non-hydropower renewable energy projects, aligning with the country’s commitment to diversify its energy sources.
Yadviga Semikolenova, World Bank Practice Manager for Energy in Eastern and Southern Africa, underscored the importance of increasing renewable energy capacity to enhance climate resilience. “The deliberate focus on increasing renewable energy capacity by a substantial 1,458 megawatts demonstrates the World Bank’s commitment to supporting Zambia to diversify its energy sources and enhance climate resilience,” Semikolenova stated.
The NEAT program not only supports Zambia’s energy policies outlined in the 8th National Development Plan (8NDP), Vision 2030, and National Energy Policy (NEP) but also aligns with the World Bank’s broader mission of eradicating poverty and promoting sustainable development.
With the infusion of this grant, Zambia is poised to embark on a transformative journey towards a more reliable, sustainable, and resilient energy future, ensuring access to affordable and clean energy for all its citizens.
Early this month President Hakainde Hichilema officially declared the prolonged dry spells in Zambia as a National Disaster and Emergency, citing the devastating impact of the El Niño weather phenomenon on the country’s agriculture, water availability, and energy supply.
The declaration, made in accordance with the disaster management act, underscored the severity of the situation, with millions of Zambians at risk of food insecurity and livelihood disruption. President Hichilema has outlined short-term measures including humanitarian relief efforts, importing food and electricity, and promoting alternative energy sources, alongside long-term strategies focusing on water harvesting and irrigation development to stimulate agricultural production. President Hichilema indicated that the government would realign the 2024 national budget to achieve the targeted measures.
Meanwhile Zambia’s power utility, ZESCO, is navigating negotiations with Mozambique to secure an additional 120 Mega Watts of power in response to the nation’s electricity deficit. Energy Minister Peter Kapala revealed this initiative during a parliamentary session addressing Zambia’s energy challenges.
ZESCO plans to withdraw 120 Mega Watts from the export market, aligning with existing bilateral contracts, to bolster domestic supply amidst the crisis. Additionally, ongoing negotiations between ZESCO and Ndola Energy Company Limited aim to resume operations at a 105 Mega Watt power plant by April 2024.
The government emphasized strategic institutions’ uninterrupted operation during load shedding, prioritizing entities like health facilities, water utilities, and industries. While ZESCO initiates load shedding to mitigate reservoir depletion, it anticipates monthly revenue losses of approximately $35 million. Long-term strategies outlined include renewable energy expansion projects and the completion of the Integrated Resource Plan (IRP) to sustainably address Zambia’s energy needs.
ZESCO commenced 8-hour daily load shedding on Monday, March 11, 2024. The decision followed a meticulous assessment of water levels in the Kafue and Zambezi basins.
Source: World Bank
Here we go again…..and before you it ZESCO will be owned by Foreigners….when are we going to learn to be independent and fend for ourselves…. begger mentality is killing African Economies
Looks like ZESCO is now on the chopping board…..ready to be auctioned…and next to be auctioned is Victoria falls and the entire Zambezi river
Am doing my construction project in Zambia with my own resources and am in total control of my project…no one is dictating what i should do and am building at my own pace….no Bank…No loan…No Nothing and am happy because I know that the project belongs to me 100%
Welcome to hh world of privatisation
b> Flies always exhibit erratic flight patterns, unidirectional, darting and changing direction suddenly !!! .
1. First, you decide to export electricity, killing the very economy that needs growth, just to please your foreign friends, by frustrating our local small-scale businesses. Then announce that – the days of load shedding are over. Before, the nation could comprehend your assurance, comes the proclamation of 8hrs a day without electricity. Now you are withdrawing from the export market. { We told you it was a wrong move }. You are now going to borrow to sustain ZESCO, when while in opposition, you said you would run Zesco effectively without external funding or borrowing.
2. Over the past 35 years, ZESCO has failed to deliver because it has been run by “Political Appointees” who have no visions or desire to make it a 21st century. One of the reasons ZESCO has been bleeding is because Government Ministries present and past don’t pay on time.
At present and in the past – we have had both GRZ Ministries & Private Businesses that have not paid their bills for 6 months because these businesses are; or were owned by people who are connected to MMD, PF & UPND. Surely, how can a profit-making company run in such an environment? ZESCO needs to be stringent & rigorous at bill collections regardless of who is the clientele.
@ Independent Observer……
I can attest to your statement. I worked for ZNBC / Zambia National Broadcasting Corporation during Levy Mwanawasa and it had not paid Zesco for 8 months. Zesco could not disconnect the power because it was a National Broadcasting TV & Radio Station. The excuse was that there was not enough revenue coming from advertisements, but we knew funds had been misused by senior management who made unnecessary expensive foreign trips to USA, Japan & UK, to attend useless workshops.
We should know the pattern by now. Create chaos and then unleash the lending. The lending is compounded and then turns into life time theft with a legally binding contract. It like having an affair with a drunk person and suggesting that both parties agreed to the affair.
Let them utilise the funds properly so they can
Pull us out of this load shedding and create
Extra electricity generation projects.
Poor mother Zambia has been reduced to a common beggar
We need Zambian solutions please! The World Bank is part of the deception of enslaving us. Lets work with the Chinese to build a coal powered power plant in Maamba. The leaders must also experience load-shedding and should not be allowed to use generators. Why export electricity when citizens have none?
We are now exactly where world bank and IMF needs us. On our knees sucking it. The situation we are in now with a puppet president, we will sign every loan, every grant without even reading. The incompetent government has put us in a situation where we can not bargain but just agree on terms dictated to us because we have no food, no fuel, no electricity and no control over the mines. IMF asked HH to remove subsidies, remove FISP, sale the maize and give tax holidays to the mines before we give you the crumbs of bread.
“ZESCO plans to withdraw 120 Mega Watts from the export market”. This 120 MW should come immediately. What is the economic cost of exporting this power? Zesco may be earning some dollars but the damage to our economy is even higher, perhaps 10 times more. At the end of the day the govt will want taxes to be paid by people while it is serving foreigners. This is an illegitimate govt of liars
Its like eating breadcrumbs is part of our Genes….US$100 has to come from Washington DC when we have trillions of dollars worth of Minerals within Zambia….HH is just serving his colonial masters
Govt depts, parliament, State House, Zesco Headquarters, High Court, UPND head quarters, should all be included in the load shedding program. They should also not be allowed to use generators! That way they will know how important energy security is for the country and will get the right people to work in our energy sectors. They need to stop those electricity exports immediately and prioritize the citizens that voted for them in 2021
……….
It’s shocking, sobering and sad that billions was spent on hydro power projects when we have abundant solar power potential……….while trees are being chopped for malasha like there is no tomorrow, exacerbating the agony
For some reason , we are not strategic in planning and don’t think far……..
For one we know ZESCO owes billions and is in a bind.
It is time to break ZESCO up into 3 or 4 GRZ companies to make them more accountable………
We can have Generation and transmission, domestic supply, business supply , renewable
There was nothing wrong with building hydroelectricity plants!! It is the national energy policy that is foul due to poor leadership. The energy mix is supposed to include coal, hydro, bio-energy, wind, solar and perhaps energy storage (pump storage schemes, batteries, etc). You have charlatans ruling you, that is the problem.
Another Debt, wowwwwww!!!! Africa… kaya mwandini. So this must make us so happy, how can you be so proud of debts? Ufimbenuma!!!! World Bank, IMF and all the lending institutions are all devil tools to hook Africa in an ending poverty coz of everlasting debts.