The project has three components: 

Component 1: Transmission and distribution reinforcement and extension (US$107.0 million). This component is mainly intended to finance:

• the rehabilitation of the 150 kV transmission line between Ségou (central part of the Country) and Bamako to allow a reliable transit of high voltage power to the capital city;
•  the construction of a 150 kV loop around Bamako to improve reliability of electricity supply to the Bamako area ;
• the rehabilitation and extension of the distribution networks in Bamako to provide electricity access to growing quarters of the city;
•  the expansion of grid access in main secondary towns (Kayes, Sikasso, Koutiala, Kati, and Mopti) and in the Niger River Irrigation Office area particularly in the localities of Siribala, Dougabougou, Sansanding, Molodo and Dioro; 
• the connection to the main grid of the localities of  Ouléssébougou and Kangaba, currently supplied by isolated diesel units.

Component 2: Energy efficiency and demand side management (US$ 5.0 million).  The key objective of this component is to address the country’s energy security needs through the implementation of energy efficiency measures across various supply and demand side sectors.  The implementation of this initiative is expected to  reduce energy consumption and peak load demand, bringing direct benefits to households and  other consumers (through lowered electricity bills) and the government (through deferred investment in electricity generation for new capacity and enhanced energy security). Furthermore, actions implemented under this initiative are expected to reduce local pollution and global GHG emissions.