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Burkina Faso gets $37m IDB loan to revamp electricity sector

Burkina Faso will begin implementing its electricity expansion project (PERREL) with finding of $37 million from the Islamic Development Bank (IDB), APA learns from the ministry of Energy.The IDB’s financing is as follows: one loan of $ 10 million and another of $ 27 million through an Istisna’a operation, either manufacturing or construction contract whereby the seller agrees to provide the buyer, within a specified time and price, with the specified goods after their manufacture, in accordance with a specification.

The Government’s compensation is estimated at 1 million dollar, or 3 percent of the overall cost of the project.

The overall objective of this project is to improve the living conditions of the populations in the cities of Ouagadougou, Bobo-Dioulasso and Koudougou, as well as in the Central Plateau, Central North and Sahel regions, through access to reliable power through the extension and strengthening of transport and distribution networks.

The four-year project will increase the national access rate by 2 percent through the connection of 70 000 households and the increasing the transit capacity of the network in the regions concerned from 20 MW to 100 MW by 2020.

The electrification rate in Burkina Faso is minus 20 percent.

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