A new grant agreement has been signed with the aim of bringing clean energy to more than 450,000 people in rural Myanmar..
The $3.45 million (£2.7m) Results-Based Financing (RBF) for Off-grid Solar has been inked between the World Bank Group and the Government of Myanmar and will provide sub-grants to the private sector to develop supply chains for solar products.
Around half the population of Myanmar currently lack access to grid electricity and more than two-thirds of households in rural areas rely on candles, kerosene, low-quality batteries and diesel generators to meet their power needs.
The RBF pilot aims to demonstrate a new private sector-led business model for off-grid solar development and the partnership will support the government’s universal energy access goal by 2030.
The funding will enable the poor to access end user finance and post-sale services, helped by the pay-as-you-go mechanism that is being developed in the Southeast Asian country.
Mariam Sherman, World Bank Country Director for Myanmar, Cambodia and Lao PDR said: “Energy access through off-grid solar technologies can play a key role in improving livelihoods and living conditions of people in rural areas.
“The new grant will not only help deliver economic and social benefits for rural families, it will also contribute to social inclusion by providing affordable, quality solar products and by creating jobs through the expansion of supply chains in rural and remote areas.”