ZAMBIA NEAT PROGRAMME LAUNCH: US$100 MILLION GRANT FROM WORLD BANK

The Government of Zambia is pleased to announce the approval of a US$100 million grant from the World Bank for Phase 1 of the Zambia National Energy Advancement and Transformation (NEAT) Programme, covering the period from 2023 to 2033. This programme, with a total funding envelope of US$700 million over ten years, aims to enhance the financial sustainability, operational reliability, and resilience of Zambia's electricity sector.

Finance and National Planning Minister Dr. Situmbeko Musokotwane highlighted the significance of this grant, which is part of the World Bank's first energy project in Zambia since 2018. The initial US$100 million, to be disbursed between 2024 and 2026, reflects the World Bank's confidence in Zambia's strategic reforms and strengthened public financial governance.

The NEAT Programme will focus on supporting ZESCO's operational and financial improvements, including the implementation of a 10-year turnaround strategy. It will also fund the Rural Electrification Authority's initiatives to increase energy access in outlying areas through the Rural Electrification Fund.

Additionally, the programme aims to support Zambia in enhancing the reliability and climate resilience of its electricity sector, addressing challenges posed by the ongoing drought. This initiative follows closely after a US$270 million grant for the Transport Corridors for Economic Resilience (TRACER) Project, further underlining the World Bank's commitment to Zambia's development.