Eritrea - Desert to Power - 12 MW Mini Grid Project - Tesseney Kerekebet and Barentu (AFDB-P-ER-FF0-001)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Eritrea
Geographic location where the impacts of the investment may be experienced.
Specific Location
Teseney, Barentu and Kerkebet in the Gash Barka region
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
Dec 17, 2024
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 Eritrea
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)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 23.35 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.
Grant Amount (USD)
$ 23.35 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)
$ 23.35 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.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Mar 22, 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.

The Bank, using resources from the Transition Facility, will finance 15 million UA (85%) of the total cost, and the GoSE will finance a total of 2.56 million UA in the form of counterpart contributions in kind. The Bank's role is crucial because of its expertise in infrastructure development, energy, sustainable livelihoods and agriculture, as well as its experience in countries in transition. The Bank is currently supporting Eritrea's energy transition through the Dekemhare PV/BESS solar power plant. The Bank will help Eritrea achieve its goal of creating local content and local businesses to implement the proposed 12 MW mini-grid and future installations.

The project's development objective is to enhance access to renewable energy in the Gash Barka region, thereby reducing greenhouse gas emissions. Through the deployment of mini-grids, the project aims to drive positive socio-economic impacts in selected towns, including job creation, empowerment of women, growth in income-generating activities, and a significant reduction in GHG emissions.

The overall objective of the project is to strengthen the resilience of approximately 235,430 people in Teseney, Barentu and Kerkebet in the Gash Barka region by improving access to energy for households, community infrastructure, small farms, agro-industrial zones and the water supply network. In the Teseney mini-grid area, there are three large government-owned farms around the Gerset, Fanko and Fiesko dams, with several small and medium-sized commercial farms on both banks of the Gash River, up to the Sudanese border. In this mini-grid area, there are 98 schools and nearly 48 health centers that provide services to some 156,610 people living there. There are also several dairy farms and large-scale food processing plants near the Alebu area. In the Barentu mini-grid, in the town of the Gash Barka zone, the demand for electricity is covered by domestic, public and commercial activities. In this mini-grid zone, 62 schools and some 37 health centers provide services to a population of approximately 67,655 people. In the Kerekebet mini-grid area, near Eritrea's largest dam, the Kerekebet Dam, the demand for electricity is met by the agricultural sector. In this mini-grid area, there are 6 schools and some 3 health centers for a population of 11,165. The main stakeholders in the target area are the local communities of Teseney, Barentu, Kerkebet and surrounding villages, as well as the local government administrator, the administrators of the Zoba Gash Barka Debub and the sub-Zoba officials, who support the implementation of development initiatives at the community level. Extensive stakeholder consultations have been conducted to promote community ownership of the project and to address local needs. These consultations will continue throughout the duration of the project and mechanisms will be put in place to address emerging issues during implementation. This proactive approach aims to ensure that community feedback is continuously integrated into the design and execution of the project.

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

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.

AfDB Team Leader:

Anthony Karembu NJERU - Renewable Energy Officer, PERN1
Email: a.karembu@afdb.org
Website: www.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/ 

How it works

How it works