Desert to Power G5 Sahel Facility

  • Mitigation
  • Under implementation
Date approved
07 Oct 2021
Est. completion
23 Nov 2029
ESS Category
Category A
Financing
Private sector
Entity
African Development Bank

Overview

The Group of Five for the Sahel (G5 Sahel) countries – Burkina Faso, Chad, Mali, Mauritania and Niger –are characterized by high poverty levels, high vulnerability to climate change, and low electrification rates.  While they have some of the highest solar energy generation potential in the world, they cannot benefit from it due to a lack of public and private investments in the clean energy sector.  Currently, clean energy cannot meet increasing electricity demand. The demand growth combined with their high dependence on fossil fuels makes it harder for them to embrace a low-emission future.  Thus, the energy sector plays a pivotal role in contributing to the region’s climate mitigation and adaptation goals.

The Desert to Power G5 Sahel Facility aims to tap into the immense solar energy potential of the Sahel region and bring cheaper, reliable and low-emission electricity to end users.  The Facility will address institutional and financial barriers and create an enabling environment to facilitate private sector funding for solar technological innovations and to ensure sustainability of the clean energy sector. GCF’s contribution of USD 150 million to the Facility will leverage financing from the African Development Bank (the implementing partner) and the private sector for investments totaling to almost USD 1 billion for large-scale solar generation.

Result areas

Project timeline

  • Pipeline

    378 days

    • Concept note received

    • Funding proposal received

    • Cleared by GCF Secretariat

    • Cleared by iTAP

  • Approved

    413 days

    • Approved by GCF Board

    • Legal opinion on AE's Internal Approval

    • FAA executed

  • Under implementation

    1,301 days so far

    • FAA effective

  • To be completed

    1,257 days to go

    Not started

  • Total project value $ 967 million

  • Tonnes of CO2 equivalent avoided 14.4 million

Financing

GCF-financing

0.0%

USD

Co-financing

0.0%

USD

USD 967 million

Show details

GCF-financing

  • Loan USD 42,000,000
  • Grant USD 8,000,000
  • Guarantee USD 20,000,000
  • Grant USD 40,000,000
  • Loan USD 40,000,000
  • Total GCF-financing USD 150,000,000

Co-financing

  • Loan USD 115,649,822
  • Grant USD 10,000,000
  • Guarantee USD 20,000,000
  • Loan USD 50,000,000
  • Loan USD 299,616,360
  • Equity USD 20,000,000
  • Loan USD 88,830,118
  • Loan USD 70,876,820
  • Equity USD 141,743,280
  • Total co-financing USD 816,716,400

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