Chad - Electricity Sector Support Project in Chad-Phase 2 (PASET-2)

The project is part of the Desert to Power (DtP) initiative, which covers eleven Sahelian countries including Chad. The aim of this initiative is to accelerate economic development in the Sahel by increasing solar power generation capacity by 10 GW through public and private intervention. This additional capacity will provide over 160 million people with access to electricity through grid connections, and 90 million people through decentralized electrification. The project strengthens SNE's technical, financial and commercial performance whilst improving sector governance. The Bank's intervention is justified by the need to support Chad as it slowly emerges from a situation of economic and social fragility, thereby helping to resolve the energy crisis. Ultimately, the Bank hopes to build on the momentum already generated under PASET1. The project introduces innovative elements, such as the sub-component on the solar hybridization of the Moundougas-fired powerplant. This operation is a follow-up to the hybridization study of thermal powerplants located in isolated centers in Chad, carried out as part of the DtP Initiative. Hence, it contributes to the phasing out of fossil fuels. The Bank will become one of the first institutions to implement a thermal powerplant hybridization programme in Chad, whose success could be replicated in other parts of the country and have a highly positive impact in terms of production costs and the environmental.