Ethiopia Solar

completed

The World Bank Group obtained an agreement from EEP to move forward on a Scaling Solar Program in Ethiopia by way of a signed FASA on October 10, 2016. IFC will act as PPP Transaction Advisor to EEP to support the implementation of grid connected solar PV installations on an IPP basis for a total installed capacity of 500MW over a number of sites in a series of procurement rounds. The projects are expected to be Ethiopia's first solar IPPs and will not only provide competitively priced clean power but also reduce Ethiopia's dependence on hydro resources by diversifying the energy supply mix. C3P will assist EEP as transaction advisor with activities split into two phases: 1) Project Preparation a. Site selection support EEP has prepared a shortlist of potential sites for the project. IFC would help EEP to finalise the selection of the specific locations for the two projects, based on information provided by EEP and reflecting a combination of technical, logistical and environmental and social considerations, based on IFC Performance Standards. b. Technical and E&S due diligence Once EEP has selected the project sites, the project team would conduct an E&S scoping study as well as all relevant site specific technical studies (solar resource assessment, grid connection conditions, etc.). c. Legal and regulatory due diligence The project team would perform a legal and regulatory due diligence exercise covering all legal, regulatory and policy matters impacting on the project. 2) Bid Preparation a. Localization of the template Scaling Solar documents Based on the outcome of the legal and technical due diligence, and consultations with the client, the project team would adapt the Scaling Solar documents to suit the context of the country and that of the project. b. Consultation with IFC Investment A fundamental part of the Scaling Solar model is the offer by other parts of the WBG (IFC Investment, MIGA and IDA) of financing and credit enhancement instruments on a stapled basis. For these instruments to be offered to all bidders, these other parts of the WBG require a final review of the 'localized' Scaling Solar documents. The project team and the client would therefore share these with colleagues across the WBG for their review and response (following the guidance of our COI colleagues at all times). A two-step tender process will be launched, with an initial Request for Qualification and a subsequent Request for Proposals, both following the Scaling Solar templates. The project team will assist EEP in consulting with qualified bidders and subsequently evaluating their proposals and selecting winning bidders. IFC Advisory's involvement will cease at commercial close, to avoid conflicts of interest arising on the (possible) entry of other WBG entities into the project.