Utilities Sector Reform Project

closed

The Utilities Sector Reform Project will seek to improve business infrastructure, particularly in electricity, and telecommunications services, including provisions for internet connections, to foster private foreign, and domestic capital development. The components will: 1) upgrade the electricity sector, through new technology, and management practices. Private capital inflows will foster improvements, and access to reliable electricity services, and, technical assistance (TA) will be provided by an Interim Management Task force, to manage the Lesotho Electricity Corporation (LEC); a sales advisory group will develop a divestiture strategy for LEC, providing expertise in banking, international law, and technical issues. LEC streamlining involve retrenchment payments, which includes training for retrenched employees, and for retained employees regarding implementation of restructuring/downsizing programs; 2) support regulatory reforms, to enforce appropriate regulations in the utilities sectors, ensure fair treatment of sector operators, and encourage transfer of technologies, and private investments; 3) finance a study to recommend options regarding the hydroelectric power, and export potential; and, assess the feasibility of electricity access to areas not commercially viable; 4) establish an Investment Fund/Unit Trust, and, provide TA to support regional integration, through income generating activities in the sectors; 5) provide advisory services, and capacity building; and, 6) provide financial, auditing, and legal support during implementation, in addition to Project Preparation Facility refinancing options.