REA requires $300m for rural public institutions

Business Reporter
THE Rural Electrification Agency (REA) needs $300 million to electrify about 3,700 rural public institutions that have not been electrified since the establishment of the agency in 2002. Since its formation, REA has electrified over 8,000 rural public institutions that include chiefs’ homesteads, clinics, primary and secondary schools, government extension offices, farms and business centres.

“About 3,700 rural public institutions remain un-electrified to date. It’s estimated that between $250 and $300 million is required to provide some form of energy source to these outstanding rural public institutions,” according to a Ministry of Energy and Power Development report tabled before Parliament last week.

“Of the 3,700 institutions, about 3,000 are within 20 kilometres of the existing grid network while the remainder are beyond 20km from the existing grid network.”

Deputy Minister of Foreign Affairs Edgar Mbwembwe presented the report on behalf of Energy and Power Development Minister Samuel Undenge on Wednesday.

In an effort to meet Zim-Asset targets, the ministry said the Rural Electrification Fund plans to extend the grid to all institutions within 20km of the existing grid network while providing those beyond 20km with renewable energy sources by 2018.

“Achievement of this target is subject to availability of resources. In the outlook, in line with the government’s vision, it’s envisaged that all rural communities will have access to modern energy services by 2030.

“The REF is expected to play a pivotal role in this government effort,” it said.

Mbwembwe said for the government to achieve its vision of universal access to modern energy services by 2030, it was necessary to continue charging consumers the rural electrification levy.

He said the levy would only be scrapped when other alternative sources of funding have been identified. The first Rural Electrification Master Plan (REMP) whose main focus was on rural business centres was reviewed between 2001 and 2002 giving birth to the Expanded Rural Electrification Programme (EREP).

The EREP entailed extending the grid infrastructure to all the beneficiaries starting with centres within five kilometre radius of the existing grid in all the eight rural provinces of Zimbabwe.