Lesotho Electricity Sector Tender

Project ID P166936Region AfricaCommitment Amount US 10.00 millionTotal Project Cost US 52.90 millionProject DescriptionThis component to be implemented by LEC will finance the design procurement of materials and construction works required to electrify select industrial and commercial loads in peri-urban areas of Lesotho as well as provide connections to residential customers nearby. This component will create roughly 6 new connections to large economic development zones with the potential of providing electricity to 252 companies along with approximately 1400 residential customers nearby. 15. The component will contribute towards construction of MV and LV distribution lines 33kV11kV as well as the upgrading of existing or construction of new substations. Grid connections to the selected areas will cater to agriculture productive use such as in Butha-Buthe industrial loads such as in Mokhotlong and Berea and electrification in the highlands such as Qachas Nek which all have high potential for economic development. 16. The model envisioned is particularly viable for LEC as the electrical corridors built under the project to connect large new customers will be also utilized by the utility to develop its low voltage network to underserved residential customers accelerating the achievement of LECs and GoLs electricity access expansion targets. Site identification will be conducted in consultation with LNDC and will be aligned with LNDCs Strategic Plan 2018-2022 DoE and LEC based on the potential for job creation and maximizing socio-economic development in the peri-urban and industrial parts of Lesotho. The final selection of the sites will be confirmed and validated by the geospatial electrification analysis based on a least cost approach. 17. This component will fund the connection of residential customers living within 600m of existing and proposed distribution transformers at each site which according to LEC will range in cost from US300 to US1000 per connection. The number of connections realized will depend on the sites finally selected for development by DoE in collaboration with LEC and LNDC.