BENIN - Rural Electrification Project in Benin-Phase II (PERU II) (AFDB-P-BJ-FA0-011)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Benin
Geographic location where the impacts of the investment may be experienced.
Specific Location
Alibori, Atacora, Borgou, Collines, Donga, Mono and Zou
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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 25, 2025
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 Benin
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 112.95 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.
Currency conversion note:
Bank reported 107.35
Converted using 2025-02-25 exchange rate.
Project Cost (USD)
$ 165.41 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.
Currency conversion note:
Bank reported 157.21
Converted using 2025-02-25 exchange rate.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Jun 4, 2025


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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.

According to the Bank’s website, Phase 2 of the Rural Electrification Project (PERU II) is an integral part of the priority projects of the Government Action Program (PAG) and is extracted from the National Rural Electrification Program, which aims to accelerate the electrification of the country's rural localities and promote access to electricity for the population. The project is also aligned with Benin's National Electrification Strategy (Strategie nationale d'electrification - SNE), drawn up in 2021, which aims to provide electricity on a larger scale throughout the country. The project will be financed by an AfDB loan to the Government of Benin for a total amount of EUR 107.35 million. It will benefit from a contribution from the national counterpart, and activities will be carried out in parallel with those of the Government and SBEE. The ADB loan will partially cover the various components of the project.

The project's development objective is to help improve people's access to electricity in rural and peri-urban areas. It aims to raise the rate of coverage and the rate of access to electricity in rural areas to 10.76% and 2.40% respectively, with a view to improving people's living conditions. Specifically, the project will enable the electrification of 420 new rural localities, the extension/densification of the electricity distribution network in 150 peri-urban localities already electrified, through the construction of 4,298 km of lines and 813 transformer substations, the installation of 10,216 street lighting units and the connection of 8,424 new subscribers to the electricity network (including 700 social-community infrastructures and 8,3824 households), as well as the creation of some 1,496 direct jobs.

The project covers the whole country, apart from the Littoral department, with 420 new rural localities spread across 7 departments (Alibori, Atacora, Borgou, Collines, Donga, Mono and Zou) and a further 150 peri-urban localities in the south of the country located in the Atlantic, Couffo, Mono, Plateau, Oueme and Zou departments. It will benefit a population of around 550,000, 50.75% of whom are women15, who will gain access to electricity through household connections at a cost of 5,000 FCFA (instead of the current 20,000 FCFA). The other main direct beneficiaries are the government, including the local administration (through the collection of taxes), SBEE (which will have additional revenues) and the 700 socio-community infrastructures in the project area that will be connected to the power grid.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Pursuant to national legislativon, the  planned  project investments are  categorized as low-to-moderate risk  activities/works, and therefore classified as  category B  and subject to simplified environmental and social (E&S) assessments.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Loan type: Total flexibility loan

Tenor: 25 years, including grace period

Grace period: 8 years

African Development Bank: EUR 107.35 million


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.

Name: Larba KERE
Email: l.kere@afdb.org

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process.

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/

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How it works