The Africa Energy Guarantee Facility: the first political risk insurance for clean energy investments across Africa

(Source: European Investment Bank)

On March 21, 2018, the African Trade Insurance (ATI), the European Investment Bank (EIB) and Munich Re launched a USD 1.4 billion renewable energy facility for sub-Saharan Africa. The Africa Energy Guarantee Facility (AEGF) will provide the first dedicated reinsurance for sustainable energy projects in 25 sub-Saharan African countries.

The government of Germany and the European Union backed the AEGF as part of their commitment to backing the UN Sustainable Development Goal 7 – sustainable energy for all. The German Federal Ministry of Economic Cooperation and Development through the KfW will provide funding of up to €32.9 million to the AEGF.

The novelty of the AEGF as a financial instrument consists of bringing certainty and improving commercial insurance in African energy markets where political risks have limited investors’ appetite. Through the AEGF, ATI, EIB and Munich RE expect to have a significant impact in catalyzing new sustainable energy projects in Africa. Products offered under the AEGF include insurance against sovereign or sub-sovereign non-payment under a public-private partnership, expropriation and breach of contract, currency inconvertibility, war, civil unrest and arbitration award default.

To learn more about the AEGF, read full press release here.

Call for proposals: Feasibility Study for Rural Electrification in Tanzania

(Source: ESI Africa and REA)

The Tanzania Electric Supply Company (Tanesco) and the Rural Energy Agency (REA) announced their plans to power 58 villages in Arusha region as part of the Tanzania Rural Electrification Expansion Program (TREEP). To do so, the Government of Tanzania received a loan from the World Bank as part of its Lighting Africa programme.

Prior to facilitating the grid extension, Tanesco and REA are seeking partners to carry out a Reviewing Feasibility Study as well as other management and supervision services for TREPP’s projects. REA launched an open call that accepts expression of interests from consulting firms until April 6, 2017. To learn more about the elegibility requirements and application process, click here.

The aim of this assignment is to improve the efficiency of the TREPP by providing the needed assistance to REA and Tanesco in carrying out the grid extension program including its overall management and supervision. Through TREEP, the Tanzanian government plans to achieve about 1.3 million connections in rural areas (including public facilities), increase the average access rate to electricity from the current 67 percent to 90 percent by 2022. In doing so, the government hopes to provide job opportunities to youth by lighting homes and setting up small-scale industries.

Interested consulting firms may obtain further information from the Office of the Secretary, REA Tender Board, Mawasiliano Towers, Sam Nujoma Road, P. O. Box 7990 Dar Es Salaam, Telephone: +255 22 2412001-3/ Fax: +255 22 2412007, Email: info@rea.go.tz from 09.00 to 15.00 hrs on Monday to Friday inclusive except on public holidays.

Two New Funds Uploaded to Funding Database

The RECP is proud to announce that the RECP’s “Funding Database” has seen the addition of two new funding sources previously not covered.

  • DEG: Climate Partnership Program
    “Climate partnerships with the private sector” is a programme  launched by the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB), implemented by DEG. The programme aims at mobilising the private sector for climate protection in developing and emerging-market countries. This essentially involves the promotion of technology and knowledge transfer to support the development of a climate-friendly economy. All countries included in the OECD-DAC list are possible project countries.  Preference, however is  given  to  projects  in IKI priority countries.
  • Off-Grid Clean Energy Facility (Benin)
    The Off-Grid Clean Energy Facility (OCEF) – is a Challenge Fund, financed by the Millennium Challenge Corporation and implemented by the Millennium Challenge Account Benin-II to support sustainable off grid Renewable Energy (RE) and Energy Efficiency (EE) projects in Benin.
    Besides grants, the Facility also provides Technical Assistance to project developers to help them meet the donor’s requirements and ensure projects’ sustainability.