Chad Energy Access Scale Up Project

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The project aims to deliver electricity to more than six million people, including about 400,000 refugees residing in host communities, through on-grid and off-grid electrification options. It will develop clean cooking solutions and related natural resource management practices for refugees and host communities. The project’s design was informed by the preliminary outcomes of the ongoing national electrification analysis for Chad, which prioritizes standalone solar systems for rural areas and isolated power systems for cities, through to 2027. Also worth remarking on are the institutional challenges facing Chad’s energy sector, and in particular, the National Electricity Company, the Societe Nationale de l'Electricite (SNE), and the time and effort required to build capacity of sector entities and develop and implement sector policies and regulations in the FCV context of Chad were taken into account. Component 1: Electrification via grids (IDA grant: US$150 million; IDA WHR grant: US$15 million). It will support the continued electrification of N’Djamena and 12 secondary cities and provide electricity access to additional secondary cities and towns.Subcomponent 1.1: Expanding electricity access in N’Djamena (IDA grant: US$50 million). This subcomponent aims to substantially increase electricity access in the capital city of Chad through public investments in the distribution facilities and supporting private investments in power generation capacity. Subcomponent 1.2: Expanding electricity access in 12 secondary cities (IDA grant: US$55 million). This subcomponent aims to boost electrification in 12 largest cities of Chad hosting populations of about 950,000 people. These cities have small, isolated power systems, operated by SNE. Subcomponent 1.3: Electrification of secondary cities and towns that have no existing grids (IDA grant: US$45 million; IDA WHR grant: US$15 million). This subcomponent aims to electrify secondary cities via isolated power systems and nearby towns via mini grids. For the purpose of this project, mini grids are defined as power systems with capacity under 0.5MW These include cities and towns located within 25 kilometers of refugee camps; electrification of these urban settlements will be funded from IDA WHR.Component 2: Electrification via standalone solar systems (SSS) (IDA grant: US$71 million; IDA WHR grant: US$22 million). The component will provide electricity access for productive uses, public entities, and households, including the areas housing refugees and host communities with a focus on rural and peri-urban areas that will unlikely be electrified through grids during this decade.Subcomponent 2.1: Electricity access for productive uses and households (IDA grant: US$50 million; IDA WHR Window grant: US15 million). This subcomponent aims to support income-generation activities by providing electricity access and equipment for productive use. Also, it aims to electrify about one million households, including those residing in refugee camps and host communities. Subcomponent 2.2: Electrification of public entities (IDA grant: US$21 million; IDA WHR Window grant: US$7 million). This subcomponent aims to electrify 850 medical centers and 700 schools. Component 3: Clean cooking and natural resource management (IDA WHR Window grant: US$20 million). The Component aims to (i) reduce the demand of fuelwood, (ii) promote a sustainable supply by optimizing fuelwood consumption and diversifying fuel substitution options, including solar and LPG cookstoves, and (iii) restore degraded forests/areas affected by fuelwood collection and strengthen the national and local institutions or stakeholders involved in the sustainable management of natural resources in areas affected by refugee inflow. Subcomponent 3.1: Assessment of fuelwood demand and supply chains in Chad and institutional setting - Phase 1 (IDA WHR Window grant: US$2 million). This subcomponent will focus on fact finding, planning, mapping, and institutional setting, with respect to the supply and demand of fuelwood as well as other cooking options, including solar and LPG cookstoves. It will also support the piloting of various modern/clean cooking options. Subcomponent 3.2: Clean cooking solutions – Phase 2 (IDA WHR Window grant: US$7 million). This subcomponent aims to support a transition toward improved and modern/clean cooking solutions to reduce energy needs reduction of 70,000 HH in Refugee Camps and Host Communities. Subcomponent 3.3: Restoration and Sustainable Natural Resource Management – Phase 2 (IDA WHR Window grant:US$11 million). This subcomponent will support two main sets of activities: (i) integrated and participative community forest resources’ management through community management of natural resources and the restoration of degraded forests; and (ii) technical support and capacity building through a) the institutionalization of a forestry-based geographical information system in the Direction of Forests, and b) technical assistance to strengthen capacities and support sustainable fuelwood supply, as well as the monitoring and verification of the envi ronment, social and climate change, and the impact of project activities. Component 4: Project management and Technical assistance and (IDA grant: US$14 million; IDA WHR Window grant: US$3 million). This component will finance the operational expenses of the two Project Implementation Units (PIUs) and the Technical Assistance and capacity building activities required for implementing the project. Subcomponent 4.1: Project management and supervision (IDA grant: US$8 million; IDA WHR Window grant: US$2 million). This subcomponent will finance two PIUs for the day-to-day management and supervision of the project during the five-year implementation period.Subcomponent 4.2: Consultancies and studies in support of project implementation (IDA grant: US$3 million; IDA WHR Window grant: US$0.5 million). This component will finance an Owner’s Engineer to support SNE to implement subcomponent 1.2. Also, it will finance safeguards studies in support of components 1.1 and 1.2, as well as the implementation of gender and gender-based violence action plans, citizen engagement and satisfaction surveys.Subcomponent 4.3: Institutional strengthening and technical assistance of Chad energy entities (IDA grant: US$3 million; IDA WHR Window grant: US$0.5 million). The Project will finance measures to strengthen the institutional capacity of the The Ministry of Petroleum and Energy (MPE) in the following areas: i) the strengthening of planning capacity; ii) preparation and implementation of competitive procurement of solar PV and battery storage IPPs, and iii) the promotion of low-carbon and climate-resilient technologies. Agence de Developpement de l’Electrification Rurale et de la Maitrise de l’Energie (ADERM) will be supported on issues pertaining to rural electrification, including programs for refugees and host communities. The energy regulatory body Autorite de Regulation sous-Sector de l’Electricite (ARSE) will be strengthened with respect to a regulatory framework for grid-based power systems. Component 5. Contingency Emergency Response Component (Estimated Cost: US$0.00).