Guinea Electricity Access Scale Up Project-Phase 2

active

The Guinea Electricity Access Scale Up Project-Phase 2 (GNEAP-2) is a US$271.8 million Investment Project Financing (IPF) with performance-based conditions (PBCs) and in alignment with the M300 initiative. US$132.3 million will be financed by IDA, US$100.0 million by the European Investment Bank (EIB) as parallel co-financing, and US$11.7 million of private capital mobilized (PCM). The Government of Guinea is exploring options to close the remaining US$27.8 million financing gap.GNEAP-2 builds on GNEAP-1 to expand access to electricity while deepening reforms to strengthen the sector’s financial and operational sustainability. The project supports Guinea’s Mission 300 (M300) commitment and will generate substantial climate co-benefits.The Project Development Objective (PDO) is to: (i) increase grid and non-grid access to electricity services in selected areas; and (ii) improve the operational performance of the power utility.Component 1 – Reinforcement and expansion of grid access and improvement of commercial performance of EDG. This component includes grid extension and densification in Kindia, Labe, Mamou, Pita, and Dalaba, the construction of two new MV lines (Kindia–Donkea and Mamou–Labe), and rural electrification. It also supports EDG’s digitalization and commercial upgrades.Component 2 – Off-grid electrification with privately operated hybrid mini-grid systems. Electrification of 26 localities through solar-diesel hybrid mini-grids operated by private developers. The component targets 36,041 households and 4,258 businesses, using subsidies to attract private capital (expected PCM).Component 3 – Support to reform actions and financial sustainability of the energy sector. Includes PBCs for prepaid meter deployment in non-strategic public institutions. Technical assistance for operationalizing the sector recovery plan, the EDG performance contract, and tariff reform.Component 4 – Implementation support, technical assistance, and capacity building. Includes project management, environmental and social safeguards, owner’s engineer, compensation payments, gender-focused programs, and studies on climate resilience and energy mix diversification.