SOMALIA - Rehabilitation and Expansion of Bosaso Power Grid and Strengthening of Energy Sector Institutions (ESPSEI) (AFDB-P-SO-F00-003)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Somalia
Geographic location where the impacts of the investment may be experienced.
Specific Location
Bosaso
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
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
Dec 8, 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 Somalia
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)
$ 22.87 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)
$ 22.87 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)
$ 25.40 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 Feb 1, 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 in the project ESIA, electricity in Bosaso is primarily supplied by Puntland Electric Power Company (PEPCO), established in 2022 through a merger of Ente Nazionale Energia Elettrica (ENEE), GOLIS, SEPCO, RAHMO, and TOWHID Energy Service Providers.

Currently, the electricity supply system in Bosaso is owned and operated by four Energy Service Providers (ESPs) i.e. PEPCO, Tawfiq, Alfardaws and Somtel. PEPCO owns and operates a 15kV system(initially ENEE) and 11kV system(initially Golis) as well as Rahmo and Towhid power stations all of which are physically isolated. Power from Towhid and Rahmo power stations is generated and supplied to the surrounding areas at low voltage. Tawfiq, Alfardaws and Somtel EPs generate for their own use but supply excess to their neighbourhoods at low voltage. The Bosaso electricity supply system faces several challenges including unreliable power supply, high system losses, high electricity tariffs (arising from predominant use of high speed diesel in electricity generation), and a large number of customers, including commercial and industrial consumers in the eastern part of the city, who are not connected to the grid due to inadequate power generation and distribution system capacity constraints. Apart from generation deficit and weak power distribution system, the electricity sector in Somalia suffers from inadequate legal framework, low personnel capacity and lack of tools and materials resources to the extent that the energy sector institutions cannot effectively discharge their mandate.

This option proposes the establishment of a 7.15MWp/5.5MW solar PV plant and 3MW/11MWh Battery Energy Storage System(BESS) at PEPCO’s Baalade power station to boost existing generation capacity as well as supply of 1000 standalone solar home systems to customers who are beyond economical reach of the grid. Energy Yield calculations carried out using PVSyst applications show that the power plant is expected to generate 14134MWh annually (based on P50 production probability).

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:

Girma Mekuria Abiyehoy
Email: g.abiyehoy@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