Impact Assessment of Rural Electrification

Norway has for many years supported Mozambique’s efforts to increase the level of access to electricity  in rural areas. The primary justifications for these interventions has been to; a) create substantial net  socio-economic benefits, including direct poverty reduction, b) stimulate business activity and job  creation, and c) provide sustainable and valuable assets to the utility.

The following three electrification projects in Mozambique (the Projects), financed or co-financed by the  Government of Norway (GoN) were completed between 2005 and 2008:

• Assistance to the Gurué-Cuamba-Lichinga Transmission Line Project” (MOZ 0012)
• “Namacurra Electrification Project” (MOZ 2016) (distribution)
• “Namacurra Electrification Project - Extension to Pebane” (MOZ 2016) (distribution)

Because it is expected that mid- to long-term effects of electrification have started to materialize, Norplan  AS was contracted by the Norwegian Directorate for Development Cooperation (Norad) in May of 2013 to  conduct a study of the impacts of the Projects. The study has aimed to (i) evaluate the impact on  development of business activities and income generation; (ii) evaluate the financial and operational  impacts on the energy utility (EdM) and (iii) review to what extent the projects have achieved the planned  results, thus provide insight into the direct effect projects for rural electrification have on the living  conditions as well as lessons learned with regard to prioritization and design of rural electrification  projects.