WASHINGTON D.C., November 20, 2023 – The World Bank Board of Directors approved US$125 million in financing to support the Plurinational State of Bolivia in expanding and improving access to sustainable electric service for rural homes and communities. With this operation, more than 141,000 people will have new or improved access to electric power for domestic and productive use through grid extension, construction of mini-grids and installation of individual solar energy (photovoltaic) systems.
These technological solutions will benefit homes and public institutions such as schools and healthcare centers, among others, as well as small-scale production units in the agricultural, trade and industrial sectors.
The financing is a major achievement. This effort aims to reach every home in rural areas, ensuring that the expansion of electric services is inclusive and covers all communities. Active collaboration at the different levels of government and community participation are key for providing electricity to every corner of the country and improving the quality of life of its inhabitants," said Franklin Molina, minister of Hydrocarbons and Energy, referring to the importance of the project, which seeks to increase electricity coverage from 84% to 95% in the country.
The project includes the strengthening of the national electricity sector by reinforcing the electricity distribution area. It will also support public policies for a fair energy transition, in other words, by replacing fossil fuels - such as diesel or kerosene - with renewable sources such as solar or wind power, among others, which will help reduce pollution. Additionally, the project will provide training to users for the sustainable use of electricity and energy efficiency. The National Electricity Company (ENDE) and the Electricity Program for Living with Dignity (PEVD) of the Ministry of Hydrocarbons and Energy (MHE) will implement the six-year project.
Although the project has a national scope, it will first be implemented in the rural municipalities of Beni, Pando, Potosí, Santa Cruz, and Tarija. The project has planned the installation of 25,500 household connections to electric grids, 300 connections in production units, more than 9,000 individual household solar power systems, 350 solar power systems in public institutions and nearly 1,100 household connections through mini-grids or hybrid systems powered by renewable energy.
The expansion of electric grids will contribute to the sector's resilience in the event of extreme climate events, applying rigorous design standards in construction, including infrastructure for user connections. Likewise, the implementation of solar power systems and mini-grids with renewable energies will help mitigate and adapt to climate change since it will increase the use of low-carbon electricity.
“Increased access to energy will benefit residents of rural areas where investments in electricity are limited. It will have a positive impact on the quality of life, well-being and productivity of women, reducing the time they dedicate to domestic tasks and thereby enabling them to engage in paid employment and educational or training activities. It will also facilitate their economic and microenterprise opportunities,” said Camille Nuamah, resident representative of the World Bank in Bolivia.
With this financing and the experience gained in the World Bank-financed Decentralized Infrastructure for Rural Transformation (IDTR I and II) and Global Alliance for Results-Based Aid (GPOBA) projects, the World Bank seeks to support Bolivia in achieving the objective of universal access to electricity by 2030. The loan is from the International Bank for Reconstruction and Development (IBRD) and has a maturity period of 24 years and an 11-year grace period.
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