The Federal Democratic Republic of Ethiopia (FDRE) is planning to implement the proposed Power Sector Reform, Investment and Modernization in Ethiopia (PRIME-1) (P176731). The Ethiopian Electric Power (EEP) and Ethiopian Electric Utility (EEU) are responsible for implementing the PRIME-1 Project activities. The International Development Association (World Bank) has agreed to finance activities (the “Activities”) that are essential for robust preparation and timely implementation of the Project activities.
The PRIME is a Multiphase Programmatic Approach (MPA) program that will support a medium-term transition of the electricity sector towards universal access, reliable supply, utility financial sustainability, increased private investments, and a climate resilient diversified generation mix. This transition will be underpinned by structural reforms that will encompass a gradual segregation of the competitive segments of the sector from the monopolistic segments to enable increased private participation under a competitive market regime. In parallel, the program will pursue operational reforms that will enhance utility financial sustainability through timely adjustment of tariffs, greater energy accountability, efficient investment planning, improved collections, reduced losses, and modernization of systems. This medium-term reform transition will be achieved through upfront adoption of a reform mandate by the Government, time-bound reform actions intertwined with investment support, and institutional capacity building to support the preparation and implementation of specific reform actions.