Chad - Gassi and Lamadji Solar PV DtP

The Project entails the design, construction and operation of two 15MWp solar PV plants close to the Lamadji and Gassi substations with a total capacity of 30 MWp, connected to the 90 kV loop around N’Djamena. The Project includes the construction of new substations and 14 kms (Lamadji 4 kms and Gassi 10 kms) of interconnection infrastructure, transferred to the national utility, Société Nationale d’Electricité (“SNE”), on project completion, and a 6 MWh Battery Energy Storage System (BESS) to support integration of intermittent generation to the grid. The Project is an important milestone in the Desert to Power (“DtP”) Roadmap and will build on the contractual structure and on Technical Assistance to SNE for the integration of Variable Renewable Energy (“VRE”)with the support of Sustainable Energy Fund for Africa (“SEFA”). The Bank’s involvement is expected through (i) an AfDB senior loan of up to EUR 13.5 million (ii) mobilization of a reimbursable grant to offset increased costs linked to the BESS component and (iv) provision of a PRG instrument with a face value of up to EUR 8 million (UA 6.58 million) backstopping a standby L/C which covers SNE payments following a request received from the Government of Chad (“GoC”). 50% would be covered by Green Climate Fund under DTP, and 50% covered by ADF, requiring an allocation of UA 0.82 million under ADF16. This project primarily contributes to climate mitigation results. As such, 100% of the total approved amount is attributed as climate finance, of which 100% is dedicated to mitigation.