GCF Approves US$110 Million of AfDB Green Projects

 African Development Bank Green Projects get funding (AfDB)
African Development Bank Green Projects get funding (AfDB)

Cote d’ivore – The Board of the Green Climate Fund (GCF) recently approved funding for three proposals from the African Development Bank (AfDB). The projects all together worth over US$110 million were approved at the GCF’s 21st Board Meeting held in October 2018 in Manama, Bahrain.

Overall, the GCF Board, which was co-chaired by Paul Oquist from Nicaragua, and Ambassador Lennart Båge from Sweden, considered 20 funding proposals requesting approximately US$1.2 billion.

An approval of US$67.8 million was made for AfDB’s Programme for Integrated Development and Adaptation to Climate Change in the Niger Basin (PIDACC/NB), which will benefit from GCF funds comprising US$57.8 million grant, and a US$10 million concessional loan. The program is further resourced by co-financing from AfDB, the European Union, the Global Environmental Facility, the Forestry Investment Programme of the Climate Investment Funds, and the beneficiary countries, for an estimated US$147 million. This brings the total program resources to US$214.8 million.

The PIDACC project is designed to preserve basin ecosystems and biodiversity in the Niger Basin, particularly by reducing silting in the Niger River. The project also aims at improving the adaptability of populations to climate change and strengthening the resilience of production systems for 4 million direct beneficiaries, and 10 million indirect beneficiaries in nine Niger Basin countries. It will also contribute to reducing about 7 million tonne of CO2 equivalent (tCO2eq) of carbon emissions over the project lifespan.

“The multi-national approach to climate change adaptation by PIDACC offers an opportunity for the African Development Bank-GCF partnership to promote low-emission, climate-resilient agriculture in the nine Niger basin countries” said Martin Fregene, Director, Department of Agriculture and Agro-Industry at the Bank.

The Democratic Republic of Congo (DRC) Green Mini-Grid also received approval for a US$20 million senior loan, and US$1 million grant. AfDB will match the approved amounts and instruments, resulting in a total of US$40 million senior loan, and US$2 million grant. The loan will finance three pilot solar PV plants and battery storage.

Any shortfall will be financed by project sponsors’ equity and quasi-equity. As well, the grant will finance complementary technical assistance to ensure that green mini-grids are scaled-up across the country beyond the pilot phase.

The mini-grids will provide access to clean, reliable and more affordable energy to approximately 150 000 people who live off-grid. This will contribute to reducing carbon emissions of 560 000 tCO2eq over the 20-year lifespan of the project.

The third project, the Yeleen Rural Electrification Project in Burkina Faso valued at about US$62 million, received approval for US$28.3 million, with co-financing from AfDB, EU and private sector sponsors to cover the rest of the project costs.

The project will provide electricity access to 335 000 people with an estimated annual consumption of 15 GWh, and create between 200 and 700 permanent jobs in the mini-grid market. It will also contribute to an estimated reduction in carbon emissions of about 390 000 tCO2eq over the 25 years.