Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households

Mozambique's first privately operated concession to generate, distribute, and sell electricity is now up and running in a rural area of Inhambane Province isolated from the country's main transmission grid. The contract was won through co...

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Bibliographic Details
Main Authors: Cockburn, Mark, Low, Caroline
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2005/01/5742383/output-based-aid-mozambique-private-electricity-operator-connects-rural-households
http://hdl.handle.net/10986/11047
id okr-10986-11047
recordtype oai_dc
spelling okr-10986-110472021-04-23T14:02:53Z Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households Cockburn, Mark Low, Caroline ASSETS BID BIDDERS BIDDING ECONOMIC ACTIVITY ECONOMIC GROWTH ECONOMICS ELECTRICITY EXCHANGE RATES FINANCIAL VIABILITY INCOME INDEXATION INFRASTRUCTURE COSTS INTERNATIONAL DEVELOPMENT INVESTMENT RISKS LOCAL AUTHORITIES MUNICIPALITIES NEGOTIATIONS PENALTIES POVERTY LINE PRIVATE INVESTORS PRIVATE SECTOR PROVISIONS SHARE CAPITAL SOCIAL DEVELOPMENT TELECOMMUNICATIONS TRANSACTION COSTS Mozambique's first privately operated concession to generate, distribute, and sell electricity is now up and running in a rural area of Inhambane Province isolated from the country's main transmission grid. The contract was won through competitive bidding by a Mozambican and South African consortium and leaves the private operator free to develop the power system in the concession area in the way most cost-effective. Designed to tackle the extremely low levels of connectivity, the concession uses output-based aid subsidies to close the gap between what new infrastructure costs and what households are willing and able to contribute. Payment of the subsidies, made available through an International Development Association credit, is contingent on physical verification of households being connected. Encouraged by early success with the concession arrangement, the government is identifying areas for similar schemes. 2012-08-13T13:59:14Z 2012-08-13T13:59:14Z 2005-01 http://documents.worldbank.org/curated/en/2005/01/5742383/output-based-aid-mozambique-private-electricity-operator-connects-rural-households http://hdl.handle.net/10986/11047 English OBApproaches; Note No. 3 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Africa Mozambique
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ASSETS
BID
BIDDERS
BIDDING
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMICS
ELECTRICITY
EXCHANGE RATES
FINANCIAL VIABILITY
INCOME
INDEXATION
INFRASTRUCTURE COSTS
INTERNATIONAL DEVELOPMENT
INVESTMENT RISKS
LOCAL AUTHORITIES
MUNICIPALITIES
NEGOTIATIONS
PENALTIES
POVERTY LINE
PRIVATE INVESTORS
PRIVATE SECTOR
PROVISIONS
SHARE CAPITAL
SOCIAL DEVELOPMENT
TELECOMMUNICATIONS
TRANSACTION COSTS
spellingShingle ASSETS
BID
BIDDERS
BIDDING
ECONOMIC ACTIVITY
ECONOMIC GROWTH
ECONOMICS
ELECTRICITY
EXCHANGE RATES
FINANCIAL VIABILITY
INCOME
INDEXATION
INFRASTRUCTURE COSTS
INTERNATIONAL DEVELOPMENT
INVESTMENT RISKS
LOCAL AUTHORITIES
MUNICIPALITIES
NEGOTIATIONS
PENALTIES
POVERTY LINE
PRIVATE INVESTORS
PRIVATE SECTOR
PROVISIONS
SHARE CAPITAL
SOCIAL DEVELOPMENT
TELECOMMUNICATIONS
TRANSACTION COSTS
Cockburn, Mark
Low, Caroline
Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
geographic_facet Africa
Mozambique
relation OBApproaches; Note No. 3
description Mozambique's first privately operated concession to generate, distribute, and sell electricity is now up and running in a rural area of Inhambane Province isolated from the country's main transmission grid. The contract was won through competitive bidding by a Mozambican and South African consortium and leaves the private operator free to develop the power system in the concession area in the way most cost-effective. Designed to tackle the extremely low levels of connectivity, the concession uses output-based aid subsidies to close the gap between what new infrastructure costs and what households are willing and able to contribute. Payment of the subsidies, made available through an International Development Association credit, is contingent on physical verification of households being connected. Encouraged by early success with the concession arrangement, the government is identifying areas for similar schemes.
format Publications & Research :: Brief
author Cockburn, Mark
Low, Caroline
author_facet Cockburn, Mark
Low, Caroline
author_sort Cockburn, Mark
title Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
title_short Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
title_full Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
title_fullStr Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
title_full_unstemmed Output-Based Aid in Mozambique : Private Electricity Operator Connects Rural Households
title_sort output-based aid in mozambique : private electricity operator connects rural households
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2005/01/5742383/output-based-aid-mozambique-private-electricity-operator-connects-rural-households
http://hdl.handle.net/10986/11047
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