-
The funds are part of the ZESTA project that aims to expand clean energy access.
- The financing comprises $117m credit from IDA, a $22m loan and a $3m grant from the CTF
The World Bank has approved an International Development Association (IDA) financing for the island of Zanzibar under the Zanzibar Energy Sector Transformation and Access Project (ZESTA). The financing will enable the provision of access to new or improved electricity services for about 400,000 Zanzibaris. It will also reduce the frequency of annual unplanned system outages and associated losses.
The $142 million financing for the ZESTA project will help to expand access to reliable and efficient electricity services and to scale up renewable energy generation in the archipelago. The financing comprises a $117 million credit from IDA, a $22 million loan from the Clean Technology Fund (CTF), and a $3 million CTF grant.
ZESTA, the first engagement by the World Bank in the Zanzibar energy sector, will be implemented by the Ministry of Water, Energy and Minerals, the Zanzibar Electricity Corporation (ZECO) and the Zanzibar Utilities Regulatory Authority, and is structured in three components:
- Renewable energy and storage infrastructure development which will develop the island’s first grid-scale renewable energy power generation plant and battery storage infrastructure.
- Grid modernization and access scale-up will address key constraints in the electricity grid in Unguja and will finance investments that are in line with the latest ZECO Electrification Master Plan.
- Institutional strengthening and project implementation support will help build capacity for sector modernization and growth, and also ensure that the implementing agencies have adequate capacity to facilitate the successful and sustainable operation of the investments.