DRC Electricity Access & Services Expansion (EASE)

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The objective of the Electricity Access and Service Expansion Project for Congo, Democratic Republic of is to expand access to electricity in target areas. There are three components to the project, the first component being network upgrades and access expansion in selected SNEL service areas. Component one is aimed at increasing and improving access by addressing critical rehabilitation needs in the SNEL-operated distribution network zones where power is either available from high voltage/medium voltage (MV) substations or can be restored in generation plants. It will target investments identified as ‘priority’ by SNEL in its recovery plan and aligned with the GoDRC’s drive to electrify provincial capitals. This component includes three subcomponents: investments in Kinshasa; Mobayi hydropower plant and Gbadolite distribution network; and technical assistance for SNEL investments. The second component is the private sector based access expansion. This component will promote private sector access expansion. It was conceptualized based on recommendations from a study funded by the Energy Sector Management Assistance Program (ESMAP) that was carried out during project preparation. The study assessed over 30 electricity access subprojects from various developers, identified the most advanced subproject developers, analyzed selected developers’ business plans, and highlighted the financial barriers faced by the private sector to be able to expand electricity access. To address the financing constraints, the component will provide debt and grant support to implement qualifying access subprojects. Early investments are expected to include subprojects under active development by experienced private developers12 that have been identified under the study. The component comprises two subcomponents. The first will develop, and potentially pilot the implementation of a Credit Support Facility (CSF) to provide commercial term financing for commercial investments. The second will set up an Electrification Fund, which will provide connection cost subsidies and grants to address consumer affordability and fill the ‘viability gap’ for near-commercial investments. Further assistance from ESMAP is envisioned to support the development of this component during implementation. Finally, the third component is the sector development and implementation support. The component will contribute to the implementation of key institutional provisions of the 2014 electricity law, critical to expanding private participation in electricity access outside of SNEL’s current service area. It will also serve as a platform for developing follow-on investments, through comprehensive planning and feasibility studies, and provide needed resources for project implementation and monitoring. The component comprises four subcomponents. institutional strengthening, planning and investment development, mid-size hydro feasibility, and project management.