The Project aims at reinforcing and rehabilitating the electricity transmission networks of Togo and Benin. It involves wider transmission network reinforcements and therefore will deliver overall country benefits that do not target a specific group of beneficiaries. This project consists of three components aimed at refurbishing and extending the transmission networks of Togo and Benin. It involves the construction of 308 km of 161 kV lines, 5 km of 63 kV underground cables and 1 substation, the refurbishment of 289 km of 161 kV lines, and the refurbishment/enlargement of 8 substations.
The Project is expected to sensibly improve the reliability of supply, to avoid the use of low-efficiency local generators and to decrease network losses. In particular, the replacement of local supply from diesel generators with hydroelectric or more efficient power bulk sources will enable to reduce generation costs and negative environmental impacts. The improved reliability of supply and the lower generation costs will have a direct impact on businesses and individuals at country level, and also increase private sector investment and growth, which in turn will lead to poverty alleviation.
The elaboration of a clear procurement plan followed by a revision of the Environmental Audit on the rehabilitated sections conducted to important project implementation delays. The situation improved in the course of July 2015 where disbursement activities could resume for the EIB. In November 2015, the rehabilitation works (Component 3 of the project) in Benin and Togo were completed.
The EU-AITF grant is being used to subsidise the interest rate of the EIB’s EUR 32m loan to the Republic of Benin and EUR 3m loan to the Republic of Togo. The grant amount of EUR 12.25m was necessary to reach the concessionality levels required for the two HIPC countries. The Project facing important implementation delays, only EUR 23m have been disbursed to the Project so far implying the use of EUR 1.2m from the subsidy. A further EUR 10m disbursement of the loan is expected to take place in September 2016 for the Republic of Benin.