The Board of Executives of the World Bank approved 200 million US dollars in credit from the International Development 
Association to invest in the electric power projects in Ethiopia.
The funds will be used by the government to enhance electric coverage in rural areas and to supply modern, affordable and cost effective electricity services in Ethiopia.
The Electricity Network Reinforcement and Expansion Project is designed to support the efforts to upgrade and extend the national grid and to enhance the overall quality of delivery as well as to increase the level of connection in areas already on the grid and to extend connection to areas outside of the gird.
It is also expected that the project will develop the market for renewable energy for poor households which cannot afford to be connected to the grid said Guang Z. Chen World Bank, Country Director for Ethiopia.The project aims to provide comprehensive technical support and capacity building for the Ethiopian Electric and Power Corporation, the Ministry of Water and Energy and the Development Bank of Ethiopia in the efforts to reinforce transmission and distribution infrastructure, assist with off grid market development activities and to extend access to finance private sector and micro finance enterprises.
The Ethiopian private sector will receive financial support to import, supply and distribute renewable energy and energy efficient products in rural areas through this project noted Raihan Elahi Team Leader for the Project.
It is expected that the project will create a vibrant demand driven market to promote off the grid renewable energy as well as enhancing the conventional grid network according to Elahi.
Source: World Bank
