FOREX Liquidity Support Mechanism (WB-P510397)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Ethiopia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
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 5, 2027
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 Ethiopia - Ministry of Finance, PPP Unit
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Finance
  • Law and Government
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)
$ 20.00 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.
Project Cost (USD)
$ 20.00 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.
Bank Documents
Primary Source

Original disclosure @ WB website

Updated in EWS Sep 23, 2026

Disclosed by Bank Jun 5, 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.

According to the Bank’s website, the objective of this project is to facilitate private investments in renewable energy by providing foreign-currency liquidity.

The FLSM will provide an incremental forex buffer to the Ministry of Finance for meeting its forex commitments toward select Independent Power Producers (IPPs) projects in renewable energy. The FLSM will be structured to address the foreign exchange availability risk under suitable replenishment commitment by the Government--essentially providing additional liquidity to the Government to tide over any short-term gaps in meeting its foreign exchange commitments to the IPP developers.

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.

Environmental and Social Risk Classification (ESRC): Moderate

The project doesn’t support activities that have high environmental risks and impacts. There are no civil works or technical assistance for specific investments under this project. However, the implementation of the FLSM will facilitate access to forex liquidity to selected IPPs to be engaged in renewable power generation namely solar and wind IPPs. The risks include, among others, occupational and community health and safety risks due to construction related activities dust and noise from rotating wind blades, traffic congestion and road accidents; habitat alteration causing potential risks to biodiversity such as on avifauna; hazardous and non-hazardous wastes that could account for soil, water and air pollution; resource efficiency (especially water consumptions to clean the solar panels), waste generation including e wastes from electrical equipment. e.g. poor disposal of batteries that can cause soil, and water contamination); and potential risks to cultural heritage due to the construction, operation, and maintenance activities of wind and solar power infrastructures.

The project will not support activities that have significant or even direct social risks and impacts. There are no civil works or technical assistance for specific investments under this project. However, the implementation of the FLSM will facilitate access to forex liquidity to selected IPPs for solar and wind power generation. Social risks may include, among others, (i) potential land acquisition leading to physical and economic displacement of people and loss of access to land use that can provide social and economic resources; (ii) Potential community health and safety risks related to contamination during to collection, storage and disposal of used and damaged solar batteries and panels which contains hazardous wastes as well as community risks during transportation and handling of wind towers and blades, (iii) SEA/SH risks related to project workers; (iv) inadequate consultation of affected persons for investments; and (vi) lack of access to functioning GRM, (vi) social exclusion of vulnerable groups mainly women, youth, persons with disabilities and other members of vulnerable groups including Historically Underserved Communities (HUCs). The fragile and conflict situation of the country, particularly in the high conflict affected zones may pose E&S risks and impacts during implementation and monitoring of the ESRM activities, compounded by the existence of considerable number of IDPs in different parts of the country.

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

Total Project Cost: US$ 20.00 million
Green Climate Fund (grant): US$ 20.00 million


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.

CONTACT POINT - World Bank

Task Team Leader: Aalok Raj Pandey
Title: Energy Specialist
Email: apandey9@worldbank.org

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works