Implemented by the African Development Bank (AfDB), this is a Public Private Partnership (PPP) Program under the GEF-5 Revised Strategy for Enhancing Engagement with the Private Sector (GEF C.41.09.Rev1).
This program will promote scaling up of renewable energy technologies on the African continent and contribute to the delivery of universal power supply in the region. Through the support for renewable energy projects, the program will contribute to reducing greenhouse gas (GHG) emissions from the energy supply and their negative effects on global warming and climate change. This program addressed the climate change focal area.
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Hydro Power Plant Solar Panel Rows
The requested GEF grant of $20,000,000 will be co-financed with $240,000,000, a co-financing ratio of 1:12. The agency fee will be $1,600,000.
The program employs a unique partnership with the Sustainable Energy Fund for Africa (SEFA) which will perform all necessary technical assistance and project preparation. The AfDB has identified a pipeline of renewable energy investments in West, Central, and East Africa. Each of these projects has attracted significant private sector investment interest, but has not closed due to gaps in financing. The GEF funding will be used as concessional financing to help projects get to close and begin implementation. GEF funding will be offered at the minimum concessionality needed for each project to ensure no crowding out of private sector investment. The GEF principal and any investment returns will reflow back to the GEF Trust Fund.
Renewable energy projects will deliver an expansion of 65 MW of capacity and enable the reduction of 220,000 tonnes of CO2 equivalent annually, or at least 4.4 million tonnes CO2 equivalent over a twenty year project life-time.
As one of the first PPP Programs to access the GEF-5 Private Sector set-aside, this program will enhance private sector engagement in Africa while generating reflows to the GEF Trust Fund and contributing to sustainable use of the private sector set-aside.
For more information, contact Sebastien Delahaye, AfDB, at S.DELAHAYE@AFDB.ORG
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