Renewable Energy and Improved Utility Performance Project

active

The AF will finance the following activities: Component 1: Renewable Energy Development and Access to Efficient Electricity Service (US$28.85 million equivalent, of which US$3.5 million IBRD loan, US$16.75 million equivalent IDA credit, US$8.0 million CCEFCF loan, and US$0.6 million CCEFCF grant): (a) Sub-component 1.1. (renamed): Variable Renewable Energy Integration (US$20.75 million) supports public investments for (i) scaling up small RE in Fogo, Santo Antão, Maio and São Nicolau islands (3.4 MWp); cost overrun of US$3 million for BESS procurement under REIUP parent project; additional publicly-owned BESS; (ii) operation and maintenance for solar PV and BESS, leveraging local expertise; (iii) technical assistance for studies and capacity building for energy transition, including skills development and entrepreneurship opportunities for women. (b) Subcomponent 1.2: Resilient and Efficient Electricity Services to Public Health Facilities (US$1.35 million) remains unchanged. (c) New Sub-component 1.3: Risk Mitigation Facility for Private Sector Participation in Energy Transition (US$4 million) provides seed funding for a Risk Mitigation Facility (the “Facility’) to address potential delayed payments by the off-taker to the private sector participating in renewable energy and BESS development. (d) New Sub-component 1.4: Universal access to electricity (US$2.75 million) finances climate-resilient grids’ extension of about 54km, densification (particularly in peri-urban areas) and 1,800 metered connections. Component 2: Advisory Services for Electricity Sector Restructuring and Privatization (US$4 million) will support the implementation of the new institutional framework of the energy sector, including post privatization advisory support; technical assistance and investments (hardware and software) to ONSEC to build and strengthen its capacities to carry out core functions; implementation of the social plan to address future labor force implications of the privatization process; technical assistance to MICE for enhanced sector planning, oversight and coordination; and to ARME to ensure a systematic, transparent application of economic regulation, strengthen the monitoring and oversight of the performance of regulated companies and the quality of service received by electricity consumers. Component 3: Project Implementation Support and Technical Assistance (US$5.35 million). The component will support the following sub-components:(a) Sub-component 3.1: Project implementation support and technical assistance (US$3.85 million) financing incremental expenses related to the project’s implementation, specifically technical, safeguards, fiduciary, monitoring and evaluation expertise, including support from owner’s engineers and technical experts to prepare technical specifications for the investments under subcomponents 1.1 and 1.4, supervise their construction, design and implement climate resilience measures, as well as capacity building to implementing agency and other sector stakeholders. (b) Sub-component 3.2: Technical assistance and capacity building to DNICE, under MICE (US$1.5 million) to enhance the sector oversight and the planning function, including staff planning and skills development for the energy sector, to implement the Power Sector Master Plan by mobilizing public and private resources, ensure project pipeline development, transaction advisory support, and overall supervision of the PPAs, SSAs, and concessions in the energy sector, IT hardware, software and project performance measurement equipment.