10/13/2009 1

INNOVATIVE FINANCING OF GRID CONNECTIONS BY ETHIOPIAN

ELECTRIC POWER CORPORATION

SHIFERAW TELILAEXECUTIVE OFFICER

Ethiopian Electric power Corporation, UEAP

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 2

TOPICS TO BE DISCUSSED

• Overview of the Power Sector in Ethiopia• The Universal Electricity Access program• Delivering better results• Nature of the GPOBA intervention• Expected benefits• Final remarks

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 3

Overview of Power in Ethiopia• Ethiopia is endowed with huge power

potential;- hydro 45GW- wind 10GW- Geothermal 5GW etc

• Currently only about 1.4% of this potential is exploited by the country.

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 4

Overview con’d

• The current installed capacity of the country is about 1503MW( including Tekeze & GG II Power plants which is currently under commissioning)

• 2550MW is under construction( to be commissioned with in 1-3 yrs

• Current electricity access is about 32%• 1.85 million customers –for a population of

73 million. • One national, integrated utility - EEPCo Debre

Zeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 5

Universal Electricity Access program

• Launched in 2005 with objective of increase of electricity access from 17-50% with in 5yrs

• The program is mainly financed by Ethiopian government and multiple donors like IDA, ADB,BADEA, OPEC, Kuwait fund, Line of credit from Indian Govn’t, etc

• Electrification moving at an impressive pace

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 6

Delivering better results

• Despite the fast pace of electrification …• Connections lag behind – “last mile” missing• Cost of connection ranging from US$50 to

100/hh• Some can afford, some not – GDP=US$500/ hh• First year, 20% hh connected, gradually growing

at 10% p.a.• Some indirectly connected (not fraud), but ..

– Sub-standard service – a few hours per day– High cost charged by neighbor (on a per lamp basis)– Not metered – no lifeline tariffs to the poorest

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 7

Paradox of the ‘last mile’• People have willingness to pay• People have ability to pay – vis-à-vis kerosene• Initial modest consumption can fit into the lifeline

tarrif block (50 kWh per month)• Utility spends US$ million upstream• Poles and wires are “in front of houses” …• …But 60% of hh in the dark at the outset• How to break this cycle?

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 8

Any solution?• Cost of connection seems to be a barrier• More so if credit unavailable • We are now testing willingness to pay (see

cover)• Some experiences by EEPCo – 2-5 year

loan did accelerate pace of connection• But very expensive cost of working capital• Any ideas to deal with the problem?• Some utility reluctance to use IDA funds• Discussions with GPOBA …

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 9

GPOBA Engineering (I)• EEPCo provides 5 year loans to cover 80% of

connection costs – customer to pay 20% upfront• GPOBA compensates the utility for the cost of working

capital –assumed 19% p.a.• Equivalent to a payment of US$35 for a US$75

connection• Paid to EEPCo in two tranches – first upon physical

connection, second after three billing cycles• EEPCo has to deliver 2 CFLs -- “connection package”• Customer repays the loan in 60 installment• Amortization and interest rolled into the electricity bill

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 10

GPOBA ENGINEERING (II)

• EEPCo provides 5 year loans to cover 80% of connection costs – customer to pay 20% upfront

• GPOBA compensates the utility for the cost of working capital –assumed 19% p.a.

• Equivalent to a payment of US$35 for a US$75 connection

• Paid to EEPCo in two tranches – first upon physical connection, second after three billing cycles

• EEPCo has to deliver 2 CFLs -- “connection package”• Customer repays the loan in 60 installment• Amortization and interest rolled into the electricity bill

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 11

Some issues and features

• Targeting the poor – one year lag feature – is there a better, simple way?

• A credible monitoring and verification system• Sharing monitoring efforts with other

interventions• Risk and performance allocation• Make it as simple as possible• Limited procurement to deal with• Therefore, low transaction costs

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 12

Expected benefits I faster connection

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7With OBA 40 50 60 70 80 80 80W/OBA 20 30 40 50 60 60 60Net 20 20 20 20 20 20 20

Household Connection (%)

10/13/2009 13

Energy efficiency – reduces bill by 55%

Appliance kW Installed # of Units %

frequencyHours per

day

Monthly consumption

(Wh)

% Usage without CFLs

With CLFs Savings

Lighting 40 2.6 0.97 3.5 10920 73.51% 18.38% 40.95%

Torch 10 1.2 0.53 0.1 36 0.24% 0.24%Radio Cassette 20 1 0.37 1 600 4.04% 4.04%TV 80 1 0.02 1 2400 16.16% 16.16%Small Radio 10 1 0.41 3 900 6.06% 6.06%

14856 100.00% 44.87% 55.13%

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 14

Win-win for the user and Utility and for lifeline tariff increase

Without CFLs

kWh/month Price/Cost (US$/kWh) Months

Total (US$ per

year)

With Tariff increase (20%)

and Cost Increase (10%)

Revenues 15 0.032 12 5.71 6.86Cost to Serve 15 0.046 12 8.28 9.11Service Charge 15 1.95 2.34Mark-Up -0.61 0.09

With CFLs

Revenues 15 0.032 12 2.57 3.09Cost to Serve 15 0.046 12 3.73 4.10Service Charge 15 1.95 2.34Mark-Up 0.80 1.33

Lifeline Tariff Sustainability (Per customer, 15 kWh per month)

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 15

Scaling up GPOBA intervention

• Currently a revolving fund– EEPCo to ring fence proceeds from amortization and

interest– About US$2.7 million per year being recycled– To be used to finance new connections

• If business model proves successful, other funds may be injected into this “pot” to cope with the needs of a higher pace of connections

• Including IDA funds (performance based), as part of the design of the next EAREP

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos

10/13/2009 16

Final Remarks• Scheme about to start – Operations Manual being finalized• Promising mechanism for the “last mile”• Performance based – seems to be a good approach• Energy efficiency is a win-win – for the customer and utility• We are carrying out further surveys to determine

– Willingness to pay for CFLs and connection– Preferred ways to deliver – voucher, financing, terms

• Next intervention – possibly funding internal wiring• Expectations on sustainability with the revolving fund • Model can be replicated in other countries, where cost of “last mile”

is comparable• Taking into account specifics of Ethiopia – “rural” is rural towns and

villages

DebreZeit 1&2

ModjoNazereth

ElalaGeda

Dukem

Amibara

Mesobo Wukro

Gedja

BosetiKoneFantale

Dofan

TulluMoye

Gedemsa

Kemise

Aba

KOKA(HEPP)

AWASH III (HEPP)

2

2

Gashen

Asosa

Mota

NefasMewcha

Aksta

Sawla

Lake Afrra

WERABESA(HEPP)

GENALE2&3

(HEPP)

GEBA 1&2(HEPP)

BARO 1&2(HEPP)

NERI(SHPP)

DEMBI(SHPP)

YADOT(SHPP)

Nuraera

Mendi

AWASH II (HEPP)

3 2

S U

D

A

N

K E N Y A

S O

M

A L

I

A

S O M A L I A

S U

D

A N

GULF OF ADEN

RED SEA

Adigrat

Mekele

EndaSilassie

Adwa

Alamata

Tendaho Graben

Lake Abehe

Danab

Teo

Meteka

CORBETTI

AbayaGOJEB(HEPP)

DelbiMoye

(COAL)

Bonga

Tepi

Mizan

GilgelGibe

Wolkite

AddisAlem

Butajira

Woldiya

Semera

Sekota

Lalibela

Maychew

Tekeze(HEPP)

PaweBitchena

ToPK-12

(Dijbouti)

ToRoseries(Sudan)

Injibara TIS ABAY II(HEPP)

ANDA

E R I T R E A

AddisAbaba

DebreBerhan

Shoa Robit

Fitche

Com

bolc

ha

Dessie

DJIB

OUTI

Muger

ALELTU(HEPP)

2

2

CALUB

Metu

Gambela

DembiDolo SOR

(HEPP)

CHEMOGAYEDA

(HEPP)

BELES(HEPP)

HALELE(HEPP)

ALUTO GEOTHERMAL

Dallol

Dabat

Gonder

BahirDar TIS ABAY I

(HEPP)Dangla

FinoteSelam

FINCHAA(HEPP)

GhimbiNekemte

Gehedo

Woliso

Guder

ABASAMUEL

(Retired)

BunoBedele

Agaro

Jimma

GILGELGIBE

(HEPP)

ARBAMINCH

WelaitaSodo

Shakiso

Dilla

Yirgalem

Hosaina

Alaba

Robe

MELKAWAKANA(HEPP)

Shashamene

ADAMITULU

Asela

Awash 7kilo

Met

eh

ara

Bedessa

Asebe Teferi

Alemaya

DireDawa

Chelenko

HararBabile

Jijiga

NegeleBorena

AgereMariam

Gobesa

Awasa

Wereta

DebreMarkos