COMOROS - Financial Governance and Energy Sector Support Programme (PAGFSE) (AFDB-P-KM-K00-013)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Comoros
Geographic location where the impacts of the investment may be experienced.
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
C
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
Jul 19, 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 the Union of the Comoros
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
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)
$ 5.97 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)
$ 5.97 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 Oct 13, 2024

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.

As stated by the AfDB, PAGFSE is a programme-based operation designed to help improve the country's economic and financial performance through better economic and financial governance and improved public electricity supply. It is based on the premise that improved energy sector performance will contribute to the financial resilience and economic stability in the Union of the Comoros. The selected reform measures will build the resilience of Comorian public finances by accompanying structural reforms in the areas of debt management, governance of public enterprises (including in the energy sector), transparency, accountability and corruption control, and improved public electricity supply. The programme will contribute to improving expenditure quality, which is necessary to release the resources needed to finance the social sector and the country's development.

PAGFSE is a two-year programme-based operation covering fiscal years 2024 and 2025. The programme-based approach will improve the predictability of aid and facilitate alignment with the country's development policy, with a view to creating conditions conducive to inclusive and sustainable growth. This multi-annual framework will also provide a medium-term platform for dialogue on key reforms to improve public finance management and energy sector governance.

The entire population of the Comoros will benefit from PAGFSE. The operation should have a distributive and sustainable impact by providing the State with the budgetary resources it needs to improve the delivery of public services and ensure a better regulatory framework to promote financial governance. The population will also benefit from improved governance of public enterprises, in particular SONELEC. The private sector also stands to benefit from the increased competitiveness of the economy that would result from the implementation of the reforms supported by the programme. Public enterprises will also benefit from the programme through the operationalisation of the Energy Regulatory Authority and the Directorate for the Management of State Holdings and the Monitoring of the Financial Performance of Establishments and Enterprises.

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.

The AfDB categorized the project environmental risk as "Low", and stated that "projects are not vulnerable to climate risk."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by DevEx, the National Electricity Company called SONELEC was created by Decree No. 081/PR dated September 18, 2018. It is governed by the OHADA Uniform Act on the Law of Commercial Companies and Economic Interest Groupings revised, the laws and regulations applicable to Commercial Companies. It is placed under the administrative and technical supervision of the Ministry in charge of Energy and the financial supervision of the Ministry in charge of Finance. Its main mission is to manage the activities of Production, Transmission, Distribution and Marketing of Electrical Energy in the Union of the Comoros. The Head Office is based in Moroni with main branches in Mutsamudu and Fomboni. The Company has a term of ninety-nine years with a share capital of six hundred million Comorian francs (600,000,000 kmf) divided into six thousand (6,000) shares of one hundred thousand (100,000) Comorian francs each, fully paid up and owned by the state. The National Electricity Company is administered by a Board of Directors and is managed by a General Management. The latter is the body responsible for operational management.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - National Electricity Company of Comoros (SONELEC) Undisclosed Energy

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:

Angelique Umubyeyi
Email: a.n.umubyeyi@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