Ethiopia Electrification Program (ELEAP)

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The development objective of Electrification Program Project is to increase access to electricity in Ethiopia and to enhance institutional capacity for planning and implementation of the government’s electrification program. The National Electrification Program (NEP) aims to achieve universal electrification by 2025. The NEP will be carried out in phases, with the immediate focus being on the early years of the Program (2018–2023). The NEP is organized into three pillars addressing the dominant challenges of the sector: (a) Pillar 1: Ongrid electrification; (b) Pillar 2: Off-grid service provisioning; and (c) Pillar 3: Sector capacity and institutional reform. Each of the pillars provides a specific menu of activities to be carried out to reach universal electrification. The phased focus under the NEP also allows for enhanced technical planning and coordinated fund mobilization. The PforR instrument is well suited to support the NEP. The PforR instrument allows the establishment of high-level, programmatic targets, compared with the traditional investment approach, with focus on project-based implementation. As such, the PforR instrument provides a unique opportunity to influence system wide improvements by supporting the GoE’s flagship engagement in the electricity sector, that is, the NEP. The PforR allows the GoE to use and strengthen its own systems, which not only ensures longer-term sustainability of the NEP but also provides a unique window of dialogue on core issues.