The European Commission is providing a €65 million (£55.92m) grant to improve access to energy in Zambia.
The project will include the rehabilitation and expansion of the low voltage distribution network in selected low income areas of Lusaka City.
It is expected to help provide access to reliable, clean and affordable electricity services to at least 63,000 households or 300,000 people, social and public infrastructure and to micro businesses.
The programme also includes a subsidy scheme to encourage new household connections as well as measures to promote productive uses of electricity by women and micro and small enterprises.
“These will include facilitated access to micro credit lines and training in business management and entrepreneurship,” the Commission stated.
Currently Lusaka faces challenges because its electricity network infrastructure results in significant energy losses, it added.
The project is co-financed with the European Investment Bank (EIB), which is providing additional loans amounting to €15 million (12.9m).