Transcript Role of the African Development Bank in Developing Clean Investments

Role of the African Development Bank
in Developing Clean Investments
Mrs. Hela Cheikhrouhou – Manager
Infrastructure Finance, Private Sector
Operations, AfDB
CSP Workshop – Tunis , October 2009
1
Clean Investments to be favored in African Countries if
economically sustainable
•
African Countries are lagging behind in access to electricity and electricity
consumption per capita; annual growth in installed capacity is relatively
high in some countries to help bridge the gap
•
Countries present significant potential for renewable energies
•
Africa Region is among most vulnerable to climate change
•
AfDB thus Adopted « Clean Energy Investment Framework » and « Climate
Risk Mitigation Policy », clearly favoring cleaner & environmentally
friendlier technologies if they are economically viable to Regional Member
Countries
•
Some technologies, like CSP, are too expensive to be considered unless
substantial soft financing could be mobilized
•
Part of the solution to lower the cost of CSP could be the setup of local
factories for some of the components. Such JVs between international
players and local investors would also yield skilled jobs and growth. AfDB
stands ready to support those initiatives.
2
Involvement in The CTF and Preparation of Investment Plans
 Jointly with WBG, assist eligible RMCs to identify and present projects
that are eligible for CTF funding
 Contribute to the preparation of Investment Plans in collaboration with
WBG – Such as investment Plan for :
Country/IP
Status
Egypt
Approved ($300m)
Morocco
To be presented to Oct. 2009
Trust Fund committee ($150m)
South Africa
To be presented to Oct. 2009
Trust Fund committee ($500m)
Nigeria
IP under preparation
MENA CSP
IP under preparation
Once IP is approved, for projects where AfDB is designated to support
implementation, the team works closely with the Government or private
sponsor to prepare and appraise the CTF project and parallel loan from AfDB
3
The AfDB Main Focus Areas in Clean Energy Investments
•
•
•
•
Wind energy
Hydro Power
Solar Power (Mainly CSP)
Co-generation
4
Sample of Clean Investments : Private Sector Department
Project name
Country
Capacity
(MW)
Applied Technology
Financial
close
(year)
Water supply
Mauritania
NA
Solar Pasteuriser
2006
Bujagali
Uganda
250
Hydropower
2007
Sahanivotry
Madagascar
15
Hydropower
2008
Buseruka
Uganda
10
Hydropower
2008-2009
Evolution One
Clean Fund
South Africa
Agri Business
Morocco
250+
Clean investment
Private equity
fund
2009
NA
Agro-industrial
project
2009
5
Sample Clean Investments : Public Sector Department
Project name
Country
•
Bujagali
Transmission
•
Beni Matar
Solar/Gas
Morocco
Thermal
Power Station
Kuraimat
Solar/Gas
Egypt
Thermal
Power Station
•
Uganda
Capacity
(MW)
250
Applied
Technology
Financial
close
(year)
Hydropower
2007
250 MW 30
MW
Solar
Solar
2007
120 to 150
MW)
Solar
2008
6
Assist clients tap into funding for project preparation
Fund
•
•
Seed Capital
Assistance
Facility (SCAF)
Sustainable
energy Initiative
(SEI)
•
Small hydro
program
•
Cogeneration
Max Assistance
Amount
1 million US$
2 million US$
2 million US$
2 million US$
Sector
Beneficiary
Clean
investment
Fund Manager
Clean energy
Sponsors in
Selected
African
countries
Small hydro
Tea factories
east and
South Africa
Cogeneration
Sugar factories
7
AfDB has 2 lending windows: Public and Private
AfDB’s lending operations
Public window
Private window
Recipient
Governments or
state owned enterprises
- Privately owned enterprises
- “Financially strong”
government owned
enterprises
Guarantee
Sovereign
Financial terms
Concessionary terms
Non sovereign
Commercial terms
8
The AfDB adapts its private instruments
to meet investee company’s needs
• Senior Debt – tenor and currency adapted to project needs
• Guarantees – partial risk, partial credit
• Subordinated Debt
• Equity – direct, or indirect (equity funds)
• Technical Assistance – grants for studies, capacity building
• Assistance to benefit from Carbon Credits- eligible projects
9
In summary...
• Cleaner technologies are to be favoured in African Countries, if made
economically sustainable for them, which may require substantial soft
financing resources e.g. for developing technologies like CSP.
• AfDB is partnering with WBG to support eligible regional member
countries in their applications to the Clean Technology Fund. The MENA
CSP IP is ambitious and requires additional donor support in order to be
successful.
• AfDB stands ready to mobilize its public and private financing
instruments to assist governments and entrepreneurs in African
Countries, to optimize the implementation of viable clean investments.
10
Contact
Private Sector Department
African Development Bank
BP 323, 1002, Tunis Belvedere, Tunis- Tunisia
Tel:+216 7110 2140
Fax:+216 71 834 178
Email: [email protected]
[email protected]
Website: www.afdb.org/privatesector
11
Thank You
12