📋 Tender Overview
Project ID: P166785
Region: Africa
Implementing Agency : ABER, Ministry of Energy, SONABEL
The proposed Project will support the Government of Burkina Faso’s key energy policy objectives to increase electricity access in rural areasandreduce its cost of generation with solar power. With regards to increasing access, the proposed project will support the electrification of around 300 new localities in selected rural areas and the connection of 120,000 households, micro, small and medium-sized enterprises (MSMEs) and community infrastructures (school, health centers, etc.) to modern and reliable electricity services. With regards to reducing the cost of generation by deployingsolar power plants and mobilizingprivate sector investments, the proposed project will finance (i) key investments to reinforce the grid and enable the integration of solar generation and dispatch it during the evening peak demand and (ii) the support of a transaction advisor to select the IPPs for asolar storage mining project and for the two Regional Solar Parks with storage. The proposed project will also support strengthening the utility as it is piloting an innovative institutional structure to provide electricity to keep creditworthy customers in its portfolio of customersand in general supports the reduction in cost of generation. The PDO-level results indicators are summarized in Section VII.14.The proposed project has threecomponents for a total public investment of US$168.75 million blending IDA credit with climate financinggrantsand loan financing. ABER will be the implementing agency for Component 1: Sustainable Rural Electrification (US$75 million).SONABEL will be the implementing agency for Component 2: Utility-Scale Solar with Storage and VRE Integration (US$88 million);and the Ministry of Energy will be the implementing agency for Component 3: Private Sector Mobilization for Large-Scale Solar (US$5.75 million).The project is expecting to mobilize a total of US$439 million of private capitalin a phased manner, of whichan estimatedUS$25 million for mini-grid development by private concessionaireand US$414 million for large scale solar projects by IPPs12. The financing plan of the project includes US$75 million from IDA credit, US$93 million from CTF (including US$2 million grant), and US$0.75 million partial reimbursable grant from the Global Infrastructure Facility (GIF) that will be used for the transaction advisors for the anchor customer solar battery project (see Table 3).TheGIF financing (US$750,000) will be partly reimbursed (30 percent) by the selected IPPs after financing close.
