Zambia Renewable Energy Investment Framework (GCF-FP080)

Countries
  • Zambia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Green Climate Fund (GCF)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 27, 2018
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Zambia
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Law and Government
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 52.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 154.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ GCF website

Updated in EWS Jul 29, 2020

Disclosed by Bank Feb 6, 2018

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Government of the Republic of Zambia (GRZ) aims at improving the conditions for renewable energy (RE) Independent Power Producer (IPPs) development and encouraging participation of private investors in the energy sector. The GETFiT (Global Energy Transfer Feed-in-Tariff) Zambia program, whose design has been supported by the KfW, aims to assist the GRZ in the implementation of its Renewable Energy Feed-in-Tariff (REFiT) Strategy officially launched in October 2017.

This framework targets to mobilize a financing package for upcoming RE IPP projects in Zambia identified under the GETFiT program, primarily for the first round 100MW solar PV (at least 80% of the framework). During the first phase, five to six small-scale (up to 20MW) solar PV projects will be selected through a competitive bidding process by Q2 2018 with the expected financial close by Q3 2018. It is targeted that most of them will be financed by the framework. The launch of the second phase will follow in mid-2018, which will procure total 100MW of small-hydro projects. The framework may finance a limited number of small-hydro projects from the second phase (i.e. up to 20% of the framework).

The Technical assistance (TA) will have two components:

  1. Assist the public sector (Ministry of Energy and Water Development, Rural Electrification Authority, etc.) to create enabling environment for private investments in the mini-grid and off-grid sector. Activities under this component will catalyze the market for decentralized energy solutions and directly contribute to national energy access, translating the experience of small-scale IPP (GETFiT projects) into RE-based rural electrification.
  2. Build the capacity of selected local commercial banks, institutional investors, and the Zambian financial industry for its enhanced understanding on renewable energy and infrastructure financing, renewable energy project screening, due diligence, and monitoring.
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

It is proposed that the AfDB will provide senior debt and standby loans to finance each of the selected and interested IPPs (the AfDB exposure to be limited up to one-Third (33.3%) of the total project cost – USD 50 million for the whole framework). The remaining debt will be financed by the GCF (through the AfDB as an Accredited Entity), a pool of commercial banks (backed by a standby loan) and the national pension fund managed by the Zambian National Pension Scheme Authority (NAPSA) (proposed). The GCF’s participation will be pari passu with the AfDB, therefore its total exposure including standard loans and standby loans will be equally limited to one-third (33.3%) of the total project cost.

In addition, Technical assistance (TA) grants of up to USD 4 million, from the GCF and the AfDB, will be provided.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Contact: Ousseynou Nakoulima, Director for Renewable Energy and Energy Efficiency - Namho Oh, Investment Officer
Organization: African Development Bank
Email: o.nakoulima@afdb.org / n.oh@afdb.org 
Tel: +225 20 26 40 35
Address: Avenue Joseph Anoma, 01 BP 1387 Abidjan 01, Côte d'Ivoire

 

ACCESS TO INFORMATION

Requests for project information may be submitted using the IDP Request for Information by email to: disclosure@gcfund.org.

You can also submit an information request using this online form: https://www.greenclimate.fund/about/disclosure/form.  Additionally, if information requested is denied, an appeal can be filed to the Information Appeals Panel: iap@gcfund.org.  You can learn more about the Information Appeals Panel at: https://www.greenclimate.fund/about/disclosure/appeals.

 

ACCOUNTABILITY MECHANISM OF GREEN CLIMATE FUND 

The Independent Redress Mechanism (IRM) addresses complaints by people who believe they are negatively affected or may be affected by projects or programmes funded by the Green Climate Fund (GCF). The complainant can raise issues related to any of GCF’s policies and procedures, including those relating to social and environmental issues, indigenous peoples, gender, and information disclosure, among others. If you submit a complaint to the IRM, it may seek to address the issues raised by facilitating problem solving or conducting a compliance process. You can learn more about the Independent Redress Mechanism and how to file a complaint at https://irm.greenclimate.fund/.

You can access a video about the IRM (English) at: https://youtu.be/1LanbriVhfs.

A brochure about the IRM can be accessed in English, French, Spanish, Portuguese, Arabic, Mandarin, Mongolian, Vietnamese, Russian, Ukrainian, Korean, German, and Kiswahili at: https://irm.greenclimate.fund/.

How it works

How it works