Bankable Projects in Energy in Africa

NEPAD-IPPF I www.nepadippf.com

Bankable Projects in

Energy in Africa

By Karine M’BENGUE-MAINGE,

Partnership Specialist

NEPAD-IPPF

Business Opportunities Seminar with MDBSeptember 2017 I Montreal & Halifax - Canada

CONTENT

I | Light up and power Africa

II | Different Funds to Support Energy Projects

III | Energy Projects

IV | Working with AfDB as Partner


I. Light up and power Africa

SOURCE: AFDB, 2017 Financial Presentation , Ahmedabad

Light up and power Africa: Realizing Africa's energy potential will bridge the continent's energy deficit


BOLD ACTIONS TO LIGHT UP AND POWER AFRICA


BOLD ACTIONS TO LIGHT UP AND POWER AFRICA

2016 Approved projects spread across 22 countries


II. Different Funds to support Energy Projects


TRUST FUNDS HOTED BY AFDB AVAILABLE TO SUPPORT ENERGY AND CLIMATE CHANGE

TRUST FUNDS SECTORS ACTIVITES

NEPAD-Infrastructre Project Preparation Facility (NEPAD-IPPF)

• ICT• Transport• Energy• Water

• Regional Project identification• Feasability studies• Socio-environmental impact ’s studies• Transaction advisory

Sustainable Energy Fund For Africa(SEFA)

• Renewable Energy• Energy Efficiency

• Project preparation• Contribution of equity to a Private equity

fund• Creation of an enabling environment for

private investments in sustainable energy

Clim-dev Fund • Climate change

• Generation, Wide dissemination and use ofhigh quality climate information fordevelopment in Africa;

• Capacity enhancement of policy makers andpolicy support institution through thegeneration for quality analysis and evidence onclimate change and its implications for Africa;

Africa Climate Change Fund (ACCF)

• Climate finance readiness

• Climate change• Green growth

mainstreaming

• Capacity building, Technical assistance,• Co-financing climate resilient and low carbon

projects and programs; • Knowledge management and information

sharing, analytical work related to green growth and advocacy.

NEPAD-IPPF

• NEPAD-IPPF provides expertise and grants to transform earlystage projects into bankable projects and viable investmentopportunities.

• NEPAD-IPPF supports the development of regional andcontinental infrastructure projects with grants to Africangovernments, Regional Economic Communities (RECs) andAfrican infrastructure-related institutions (Power Pools, etc)to prepare high-quality bankable regional projects in thefollowing sectors:

Energy,

Transboundary water resources,

Transport and

ICT.

Contact: Shem SIMUYEMBA – NEPAD-IPPF Coordinator –[email protected]

mailto:[email protected]

NEPAD-IPPF

Projects IPPF Grant (USD) Financing Raised (USD) Downstream Financiers

Benin-Togo-Ghana Electricity Interconnection

$500,000 $127,100,000 AfDB, KfW, World Bank/IDA, IsDB, BOAD (Banque Ouest Africaine de Developpement), Volta River Authority, Communite Electrique du Benin, KfW

Zambia-Tanzania-Kenya Electricity Interconnection

$500,000 $309,260,000 AfDB, JICA, Governments of Kenya and Tanzania

Gambia River Basin Organization (OMVG) Electricity (Kaleta)

$500,000 $711,000,000 AfDB, World Bank/IDA,EIB, AFD & French MOFA, IsDB, KfW, West African, Development Bank, Kuwait Fund, OMVG

Ethiopia-Kenya Power I Ethiopia Kenya Power II

$500,000 $1,260,000,000

AfDB, World Bank, AFD, Governments of Ethiopia and Kenya

$990,000

Ghana-Burkina Faso Power Interconnection

$488,690 $100,700,000 World Bank, EIB, AFD, Governments of Ghana and Burkina Faso

Kariba North Bank Hydropower Generation

$600,000 $430,000,000 China ExIm Bank, DBSA, ZESCO

Ithezi-Thezi Hydropower Generation

$462,765 $350,210,000 AfDB, EIB, DBSA, FMO, AFD, Proparco, India ExIm, ZESCO, TATA

Ethiopia GIBE III Hydropower $300,808 $1,621,000,000 Industrial & Commercial Bank of China,Government of Ethiopia

Ruzizi III Regional Hydro $1,416,980 $625,190,000 AfDB ($138 M public sector window, $50.22 M private sector window), other financiers to be confirmed

Total energy project $6,259,243 $5,534,460,000

Sustainable Energy Fund For Africa (SEFA)

• Objective: to support sustainableprivate-sector led economic growth inAfrican countries through theefficient utilization of presentlyuntapped clean energy resources.

• Three financing windows: projectpreparation, equity investments andenabling environment support.

Contact: João Duarte Cunha - SEFACoordinator - [email protected]

Clim-dev Fund

• Objective of the CDSF is to strengthen the institutional capacities of national and sub-regional bodies to formulate and implement effective climate-sensitive policies.

• Areas of Focus / Sub-SectorsThe ClimDev-Africa Programme Special Fund (CDSF) supports operations in the following three main areas: Generation and wide dissemination of reliable and high quality climate information in

Africa; Capacity enhancement of policy makers and policy support institutions to integrate

climate change information into development programs; and Implementation of pilot adaptation practices that demonstrate the value of

mainstreaming climate information into development.

Contact: Joseph Kabyemera – Coordinator - CDSF : [email protected]

Africa Climate Change Fund (ACCF)

Area of Intervention :

• Climate finance readiness

• Climate change

• Green growth mainstreaming

Activities:• Capacity building, Technical assistance,• Co-financing climate resilient and low carbon projects and programs; • Knowledge management and information sharing, • Analytical work related to green growth and advocacy.

Contact: Louise Brown – Senior Climate Change Officer - ACCF : [email protected]

The AfDB is also an implementing agency of

the Climate Investment Funds (CIF)

The CIF provides developing countries with grants, concessional loans, risk mitigationinstruments, and equity that leverage significant financing from the private sector,multilateral development banks, (MDBs) and other sources.The Climate Investment Funds include four key programs:• Clean Technology Fund (CTF)• Forest Investment Program (FIP)• Pilot Program Climate Resilience (PPCR)• Scaling Up Renewable Energy Program (SREP)

Contact: Environment and Climate Change Division Manager and CIF Coordinator: KurtLonsway, [email protected] / AfDB FIP and PPCR Coordinator: Gareth Phillips,[email protected] / AfDB CTF and SREP Coordinator: Joao Duarte Cunha,[email protected]





III. Energy Projects

ENERGY PROJECTS APPROVED BY AfDB IN 2016

USD 134 million for Phase II of the transformative Kenya Last Mile Connectivity Project, which will entail providing 300,000 new connections.

USD 150 million for Côte d’Ivoire Power Transmission and Distribution Networks Reinforcement Project, which will construct over 3,000km of transmission and distribution lines and connect 20,000 households.

Segou Solar IPP in Mali, which entails the design, construction and operation of a 33 MW solar PV power plant.

Approval of a USD 500 million Debt Facility for Energy Inclusion with an initial Bank contribution of USD 100 million to focus on small scale independent power producers, off-grid and mini-grids.

Nigeria-Benin Power Interconnection Re-enforcement Project Mozambique-Zambia Power Interconnection Project Kolwezi (DRC) – Solwezi (Zambia) Power Interconnector Mozambique-Zambia Power Interconnector

ENERGY PROJECTS IN NEPAD-IPPF PIPELINE

POWER GENERATION

• 2400MW Batoka Gorge Hydropower project (Zimbabwe and Zambia)

POWER TRANSMISSION

• ZIZABONA Power Interconnector (Zimbabwe, Zambia, Botswana, Namibia)• Uganda-South Sudan Power Interconnection Project• Mozambique-Malawi Interconnector• Zambia-Malawi Interconnection

SOLAR PROJECTS

• Regional Solar Park in Burkina Faso (Generation of - 150 MW Solar PV Plant)


IV. WORKING WITH AfDB AS PARTNER


Preparation

• Public sponsors

• Private sponsors

Co-financing for project preparation to make

projects bankable

• Financial Close

• ImplementationCo-financing for project

investment

• Assistance for policy and regulatory reforms

• Capacity building

• Partnership for Skills & Technology Transfer (Industry attachment, business linkages, investment in Africa by Canadian companies).

Strategy to support African countries at

National & regional level

THANK YOU

Karine M’BENGUE-MAINGE

k.m’[email protected]

Bankable Projects in Energy in Africa

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