US$200m to Improve Iraq’s Electricity Supply

World Bank - 13/05/2019

A new US$200 million World Bank project will provide increased and more reliable supply of electricity to about 2.5 million Iraqis and productive enterprises in the governorates of Basra, Al-Muthanna, Thi Qar, and Missan who currently suffer from frequent and long power cuts and rely on private or shared generators to cover the shortages within the public network.

The Electricity Services Reconstruction and Enhancement Project, approved today by the World Bank Group’s Board of Executive Directors, will support the Government of Iraq’s efforts to improve the quality and reliability of electricity supply by reducing the capacity limitations in the electricity distribution and transmission network.

The project aims to support increased efficiency of electricity operations and management which is key to reducing the fiscal burden levied by the sector on Iraq’s budget, drawing resources away from other public sector needs such as reconstruction, health and education. Saroj Kumar Jha, World Bank Mashreq Regional Director, said:

“The lack of access to reliable power has a significant impact on household well-being, business growth, and the capacity of the enterprise sector to create sustainable jobs for the growing numbers of youth entering the job market. Improved electricity supply will support job creation, including enhancing women’s ability to engage in income generating activities. It will also promote economic diversification and allow enterprises to increase their productivity, thus fostering inclusive economic growth and shared prosperity for the population of Iraq South region”.

The project will support the reconstruction and rehabilitation of the electricity transmission and distribution grid including installation of new lines and power substations. In addition, the project will include installation of an Integrated Management Information Systems and customer call centers.

These activities will not only increase the network capacity to deliver electricity to the consumer premises, but will also support improvements in network operations efficiency and customer care such as reducing the duration of electricity outages, improving the accuracy in meter reading and billing records and fast response to electricity consumer concerns. Paul Baringanire, World Bank Senior Energy Specialist and Project Team Leader, said:

“Improved efficiency, transparency, and accountability of operations will not only improve the sector’s performance but also enhance the image and credibility of the sector institutions namely the Ministry of Electricity, the South Electricity Transmission Company, and the South Electricity Distribution Company with shareholders and electricity customers thus contributing to restoring citizen confidence and gaining support for sustained operations.”

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