SOMALIA - Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions (ESPSEI)

The proposed project represents the Bank’s second infrastructure investment project in Somalia in the power sector. It addresses constraints in electricity access that were identified through the Energy Sector Needs Assessment (ESNA) completed in 2016. It is expected to address the population’s current limited access to modern energy services, which affects the quality of life of Somalis, and constrains productive activities, thereby restricting the country’s economic growth and ability to create jobs. The Bank is poised to intervene and make a positive contribution to the country’s development by helping to finance infrastructure projects, especially renewable energy generation (solar), and by expanding the distribution network and dissemination of improved cook stoves. The Bank’s support to the electricity sector in Somalia through this operation will help address sector issues identified in the previous section. In particular, it will support the Government of Somalia in addressing the acute shortage of quality and sustainable infrastructure, a critical step towards the achievement of inclusive growth and economic resilience, while building on the gains from the previous interventions the Bank has made. The total cost of the project is estimated at UA 18.021 million, inclusive of contingencies but exclusive of taxes and duties. The Bank will finance 94.33 percent of the total Project cost, amounting to UA 17.0 million, through a combination of ADF-16 grant (UA 7.0 million) and TSF-I grant (UA 10.0 million).