Results of Norwegian development assistance for central and distribution grids
76 Document 3:12 2013–2014 Report
One main reason for the low connection percentage is that it is too expensive for indi- vidual households to connect to the power grid. The cost of actual power consumption
comes in addition. According to the inal evaluations, preferential loans that can inance connection fees for low-income residents were only available in some of the
electriied villages. It is therefore primarily the wealthiest households in villages that beneit from access to electricity in their own homes. Fans, radios and televisions are
the most common purchases following connection to power supply, while very few people buy electric stoves. Food is still prepared with wood and charcoal.
88
The evaluations show that the projects have had a positive efect on citizens in terms of improved welfare services, especially in health and education. Access to electricity
has also had a positive efect on sole proprietorships. Increased access to electricity has improved the productivity and turnover of sawmills and enterprises that produce
furniture. The evaluations show that access to electricity has had positive efects on tourism on the island of Unguja, where several hotels have been established in areas
surrounding the electriied villages. At the same time, the hotels have not employed locals to any great extent.
89
The evaluations do not show that other new businesses have been established as a result of the access to electricity.
The expansion of the grid was completed in accordance with the schedule and, thanks to budget savings, it was possible to electrify more villages than planned.
90
However, the inal evaluation points out weaknesses in the sustainability of the projects, because
ZECO is not able to maintain the infrastructure. Furthermore, it points out that the infrastructure built with Norwegian support in the 80s and 90s, is starting to rot.
91
The Norwegian-supported projects were implemented by a project unit with a Norwegian project manager, who worked independently of ZECO’s daily operations.
According to the inal evaluation, the objective of capacity building in ZECO was set aside as a result.
Box 3 Corruption charges against Zanzibar’s power company ZECO
In January 2013, the Control Committee in Zanzibar’s parliament submitted a report that revealed widespread corruption in ZECO. Among other things, it was revealed that while many electricity custo-
mers paid exorbitant amounts to connect to the power grid, most of this money never reached the company. At a parliamentary hearing, the opposition stated that donors must be made aware that
their money is being misused. While the charges do not directly apply to the use of Norwegian aid funds, they do involve the fees ZECO collects for new connections to the grid. The audit of the
Norwegian project support in Zanzibar had no serious remarks.
Source: http:allafrica.comstories201310230215.html, Ministry of Foreign Affairs
In an interview, the embassy in Tanzania stated that it is aware of the shortcomings of the projects. The embassy noted that this is the rationale for the commencement of a
new joint project on capacity building in ZECO. The start-up phase of the project has been challenging because of the basic lack of expertise and capacity in ZECO.
The auditing irm PWC has been engaged by the embassy to recommend control measures for the use of Norwegian aid funds in the project.
88 Ibid, p. 11, 33, 36, 41; Norad 2006 End Review of Phase IV Electrification Programme Zanzibar, p. 16; Winther, T. 2006 Social Impact Evaluation Study of the Rural Electrification Project in Zanzibar, phase IV 2003–2006, p. 25. See also Section
4.4.2. 89 Norad 2010 End review of Tanga-Pemba subsea cable, p. 32; Norad 2009 End-review of Phase IV and Extension of the
Zanzibar Rural Electrification Project, pp. 33–34; Winther, T. 2006 Social Impact Evaluation Study of the Rural Electrification Project in Zanzibar, phase IV 2003–2006, p. 25.
90 Norad 2009 End-review of Phase IV and Extension of the Zanzibar Rural Electrification Project, p. 15. 91 Norad 2009 End-review of Phase IV and Extension of the Zanzibar Rural Electrification Project, pp. 9 and 15.
77 Document 3:12 2013–2014 Report
An evaluation of the efect of the Norwegian support shows that the completion of the subsea power cable to the island of Pemba in the Zanzibar Archipelago, has led to a
more stable supply of power on the island. The Norwegian contribution to the cable was NOK 300 million, while the Tanzanian government funded NOK 100 million.
The evaluation shows that the cable can be expected to meet the demand for electricity on Pemba for the next 20 years.
92