World Bank loans $54 m for electricity, water

The World bank has approved a loan of US $54.8 million to the Chadian government to alleviate shortages in the energy and water supply sectors, the World Bank reported on Thursday. The current crisis in energy and water supply was crippling economic activity and hindering the delivery of social services in Chad, the Bank added. The loan would reduce costs, promote private sector participation in these sectors and support extension and rehabilitation of electricity and water supply facilities in the capital N'Djamena and the towns of Moundou, Sahr and Abeche. It would also finance the purchase of spare parts and water-purifying chemicals, the Bank said. According to the Bank electricity and water-supply services in Chad are provided by Societe Tchadienne d'Eau et d'Electricite (STEE), which depends on thermal generation for electricity with petroleum products imported over long distances from Cameroon and Nigeria. There are about 7,500 electricity customers in a country of 7 million, implying that only 1.5% of the population benefits from electricity. Of these 6,000 are located in the capital N'Djamena. "While substantial progress has been made on institutional reform, there has hardly been any new investment in the sectors. Black-outs are the rule rather than the exception, thermal units have burnt down and water-borne diseases have spread, because the water-supply system depends on electricity," the Bank added. The Critical Electricity and Water Services Rehabilitation Project will in the short-term ward off the financial and technical collapse of the sectors and in the longer-term lower costs and increase access to electricity and safe drinking water. Chad has also prepared a 5-year investment program to expand the electricity and water-supply facilities in N'Djamena and other towns; expand electricity and water-supply distribution systems; complete construction of the oil pipeline from Sedigi oil field (near Lake Chad) to N'Djamena and construct a gas pipeline from Sedigi to N'Djamena, the Bank said. Details of the project