Ethiopia Electricity Access Rural Expansion Project, Phase II - GPOBA

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The objective of the Electricity Access Rural Expansion Project in Ethiopia is to increase access to electricity in rural towns and villages with grid access, by assisting Ethiopian Electric Power Corporation (EEPCo) in its connection fee financing program, extending loan tenors of five years. There are three components to the project. The first component of the project is subsidy. The Global Partnership Output-Based Aid (GPOBA) subsidy is a three year program consisting of a payment of US$35 per connected households (hh) to EEPCo in order to help the utility defray its working capital costs of providing a five year loan to the customer. The second component of the project is output monitoring and verification (M&V)/auditing. This component will finance the monitoring and verification of outputs and auditing over the three year period. In addition, the project will be subject to an external audit. An independent credible organization, yet to be identified, will be contracted. The third component of the project is the World Bank (WB) supervision to be performed over the three years of the GPOBA project. The project supervision covers the work of the task team leader, the technical specialists, and the fiduciary and safeguards staff for the supervision of GPOBA subsidies. Supervision will take place in conjunction with the other three energy access projects currently financed by the WB, which will enable a reduction in costs and better synergy among the multiple electrification efforts.