Chad - Djermaya PV Project – Partial Risk Guarantee (AFDB-P-TD-FA0-007)

  • Chad
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
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
Sep 26, 2019
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.
Société Nationale d#Electricité (SNE)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
Not Disclosed
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 Jun 17, 2020

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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 proposed operation concerns an African Development Fund (ADF) Partial Risk Guarantee (PRG) of approximately [UA 8.065.231,59 (EUR 10,000,000 equivalent)] to the Republic of Chad in line of the Djermaya Solar PV Independent Power Producer (IPP) project implementation. The Djermaya 28 MWe Solar PV Independent Power Producer project involves the purchase by the Societe Nationale de l'Electricite (SNE) of the power generated by a solar PV power plant in Djermaya, under a 25-year Power Purchase Agreement (PPA), 30km north of N'Djamena. This PV power plant is designed, constructed, operated and transfered on a build-own-operate-transfer basis (BOOT) by the independent power producer Djermaya CDEN Energy (DCE). The electricity will be sold to the grid at an initial tariff of XAF 79 per Kwh. The Partial Risk Guarantee (PRG) offered by the African Development Fund (ADF) which this document describes will mitigate for the IPP and for the providers of debt financing to the IPP the risk of non-payment of electricity bills by SNE's under the PPA. Specifically, the PRG will provide credit enhancement to SNE on their payment obligations. The provision of an ADF PRG will facilitate the SNE to procure from a commercial bank that is acceptable to project parties a standby letter of credit at sustainable conditions. The letter of credit will provide liquidity in support of SNE's electricity bill payment obligations under the PPA and will enable financial closure of the project, by reducing project risk and improving the bankability of the overall financing structure of the investment. The proposal concerns bills for power generated, as well as issued bills during the testing period and bills issued in the case of no intervention from the date of electricity delivery to the target date due to a failure of the Government or of the SNE or in case of political force majeure.

The main objective of the Project is to diversify the energy mix, provide clean, reliable, low-cost power and to strengthen Chad's national grid by increasing national installed renewable power by approximately 15%.

The Independent Power Producer (IPP) will increase the supply of electricity to households benefitting 60,000 households, which will largely benefit women and children; enterprises and industries, which will create employment opportunities for youth and women; social services such as schools and hospitals; as well as government facilities in Chad, which will enhance service delivery. The project will add 28 MWe to the installed capacity in Chad, which is equivalent to 15% of installed capacity. Access to affordable and reliable renewable energy will contribute to overall economic growth in Chad through among other things increased firm productivity and creation of small and medium sized businesses and as such contribute to poverty reduction and tax revenue generation. PRG will also allow SNE, an institution of relatively recent origin, to build a solid track record in the sector which will benefit future Independent Power Producers in the future.

Investment Description
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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.

KOUYATE Carolin Simone


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,,, and/or You can learn more about the IRM and how to file a complaint at

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