Tanzania - Energizing Rural Transformation Project

Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB1008 Project Name Energizing Rural Transformation Region AFRICA Sector General energy sector (100%) Project ID P078090 Global Supplemental ID P078092 GEF Focal Area C- Climate change Bor rower(s) GOVERNMENT OF TANZANIA Implementing Agency Ministry of Energy and Minerals Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Safeguard Classification [ ] S 1 [ ] S 2 [ ] S 3 [X] S F [ ] TBD (to be determine d) Date PID Prepared July 1, 2004 Estimated Date of Appraisal Authorization April 25, 2005 Estimated Date of Board Approval December 15, 2005 1. Key development issues and rationale for Bank involvement Low electricity and ICT access rates are serious constraints in rural areas . Despite healthy real economic growth (above 5% p.a. since 2001), low inflation and adequate foreign exchange reserves, access rates remain low for electricity and modern Information and Communications Technologies (ICTs): less than 10% of the overall population and only about 1% of the rural population have access to these services. These low rates are a major constraint to higher rural non - farm incomes and an improved quality of life that can be gained not just from improved ho usehold lighting and communications, but also from improved service delivery in rural health, education and water facilities. (i) Bringing recognized