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Comoros - Energy Sector Support Project - Supplementary grant memorandum and recommendation

24-May-2019

In September 2013, the African Development Bank approved a grant from the African Development Fund (ADF) and another from the Transition Support Facility(TSF) for a total USD 13.38 million to restore and improve the operation of hydropower plants, thermalpower plantsand the distribution network,and prepare the development of renewable energy within the framework of the Comoros EnergySector Support Project (PASEC).In 2014, the project was restructured to acquire three diesel units and supply MAM-WE with fuel for three months. Due to rapid growth in demand and service quality degradation (load shedding), SONELEC realised the need for supplementaryresources to complete the planned works to ensure efficiency, while satisfying consumers. The rehabilitation of the 20 kV distribution networks was estimated at EUR 8130 000 while the available budget was around EUR 4 900 000.
Similarly, for the rehabilitation of thermal power plants, the resource requirements were estimated at EUR 8660000 compared to a budget allocation of approximately EUR 2763 000. TheComoros Government then requested the Bank to provide supplementaryfunding for the PASEC project. The UA 6.96million supplementaryfinancing will mainly allow for the rehabilitation of the 20 kV distribution networks, the rehabilitation of diesel thermal power plants and the installation of hydropowergeneration facilitieson the Domoni (Anjouan)water supply system.The total revised project amount,including the World Bank contribution, is UA 23.676 million. The project will contribute towards:(i) improving energy access through infrastructure rehabilitation for greater reliability, (ii) restoring energy production capacity through the rehabilitation of 4 diesel plants, the rehabilitation of 3 hydropower plantsand the installation of hydropowergeneration facilities, and (iii) reducing network losses currently averaging 40% to 25%.

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