FCS RE Segou Solaire Mali Project

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The objective of the Segou Solar Independent Power Producer Project is to promote the introduction of grid-connected renewable energy in Mali through an independent power producer. Mali is currently recovering from a complex crisis, which affected the country on three fronts: conflict and insecurity in the north, institutional and political turmoil in the south, and humanitarian and food insecurity across the country due to the 2011 drought. In early 2012, the vast northern regions fell under the control of extremist forces, while a coup in Bamako threw the country into political instability and turmoil. By 2014, economic growth had reached pre-crisis levels, indicating that the economy was catching up and recovering from the crisis. In 2012, the gross domestic product (GDP) growth dropped to -0.8 percent because of the combined effects of a deteriorating business climate and a drop in official development assistance. With the progressive consolidation of political stability and improved security conditions in 2013, growth resumed at 2.3 percent and accelerated to 7 percent in 2014 its highest level since 2003 (when it was 7.6 percent). Economic recovery continued in 2015 with a 6 percent growth rate. Mali’s current macroeconomic outlook is positive, provided the security situation does not deteriorate and favorable climatic conditions continue to prevail. Growth is projected to be around 5 percent annually over the next two years, with a projected decline to 4.7 percent in 2019. During this important political period, the World Bank Group has a critical role to play to de-risk private sector investments in the country and, in turn, support economic growth, employment generation, and service delivery in the short to medium term. By leveraging instruments from both IDA and the International Finance Corporation (IFC), the operation aims at de-risking the energy sector for private sector investors. The project aims to demonstrate that private investments in Mali’s power sector are viable and has the potential to unlock further private interventions going forward, despite the perceived high-risk business environment in Mali. The Project is expected to be among the first renewable private power projects in Mali and as such, it would play a critical role and pave the way for future private sector engagement in the country.

FY17 - Energy and Extractives

World Bank Group

Project

Solar, Power Generation (CCGT), Government, Hydro