Eritrea - The Integrated Solar Energy Project (AFDB-P-ER-FF0-002)

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, Kerkebet and Barentu; 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
Feb 18, 2026
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, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 57.00 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.
Loan Amount (USD)
$ 36.64 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)
$ 20.36 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)
$ 58.78 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 @ AFDB website

Updated in EWS Apr 14, 2026

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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.

As stated by the AfDB, the Integrated Solar Energy Project in Eritrea – Teseney, Kerkebet and Barentu – aims to expand access to clean and reliable electricity in the Gash Barka region through the development of 34 MW of solar photovoltaic mini-grids with battery energy storage systems (BESS). The total project cost is UA 43.31 million, financed by the African Development Fund under FAD-16 with UA 27 million from the Performance-Based Allocation and UA 15 million from the Transition Support Facility, complemented by a government in-kind contribution of UA 1.31 million, with no confirmed external co-financiers at appraisal stage. The project is implemented by the Ministry of Energy and Mines and aligns with Eritrea’s National Energy Policy (2018), the Bank’s Ten-Year Strategy 2024–2033, the High 5 priorities “Light up and Power Africa” and “Improve the Quality of Life for the People of Africa,” Mission 300, and SDGs 7, 8, 9 and 13. By reducing dependence on imported diesel and deploying climate-resilient renewable infrastructure, the project strengthens energy security, supports green growth and contributes to significant reductions in greenhouse gas emissions.

The project seeks to improve access to renewable energy in Gash Barka and reduce greenhouse gas emissions by replacing diesel-based generation with solar mini-grids supported by battery storage. It aims to increase installed renewable capacity, expand last-mile connections, modernize distribution infrastructure and enhance system reliability in underserved communities. The intervention also promotes local economic development by supporting agro-processing, irrigation and small enterprises, while creating green jobs for youth and women and strengthening institutional and technical capacity within the Eritrean Electric Corporation and the Ministry of Energy and Mines. In the long term, the project contributes to a resilient, low-carbon energy system that enables inclusive growth and improved service delivery.

The project will directly benefit approximately 306,910 people, representing around 61,382 households in Teseney, Barentu and Kerkebet, with an estimated 30% women and 50% youth among the targeted population. Households, schools, health centers, small businesses and agro-processing units will gain access to reliable electricity, while irrigation schemes covering thousands of hectares will enhance agricultural productivity and food security. Public water pumping systems will improve access to safe water, and local technicians and enterprises will benefit from capacity-building and skills development in solar and battery technologies. Ultimately, communities across Gash Barka will experience improved livelihoods, enhanced economic opportunities and strengthened resilience to climate and energy shocks.

The implementing agency will be the Ministry of Energy and Mines.

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
Email: a.karembu@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