Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
Mozambique's first privately operated concession to generate, distribute, and sell electricity is now up and running in a rural area of Inhambane Province isolated from the country's main transmission grid. The contract was won through co...
| Main Authors: | , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/01/5742383/output-based-aid-mozambique-private-electricity-operator-connects-rural-households http://hdl.handle.net/10986/11047 |
| Summary: | Mozambique's first privately
operated concession to generate, distribute, and sell
electricity is now up and running in a rural area of
Inhambane Province isolated from the country's main
transmission grid. The contract was won through competitive
bidding by a Mozambican and South African consortium and
leaves the private operator free to develop the power system
in the concession area in the way most cost-effective.
Designed to tackle the extremely low levels of connectivity,
the concession uses output-based aid subsidies to close the
gap between what new infrastructure costs and what
households are willing and able to contribute. Payment of
the subsidies, made available through an International
Development Association credit, is contingent on physical
verification of households being connected. Encouraged by
early success with the concession arrangement, the
government is identifying areas for similar schemes. |
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