Desert to Power Programme Harnessing the Sun to

Desert to Power Programme Harnessing the Sun to Power the Sahel Region African Development Bank and Africa 50 Mobilizing Private Investors for the Sahel Region

Desert to Power, solving the Sahel’s energy challenges The proposal is to establish a $50 Million Project Development Fund and $250 Million Blended Finance Facility as a first block of the Desert to • Africa’s population set to double by 2050, • Low electricity access rates and some of the highest tariffs in Power programme, towards the deployment of 10 GW solar capacity in the Sahel by 2025. the world, • Immense solar potential in the Sahel region but countries Mauritania dependent on fossil fuels and hydro resources • Senegal Growing private sector keen to benefit from these solar Burkina Faso resources • Mali Nigeria Chad Eritrea Sudan Djibouti Ethiopia Ethiopi a However, lack of early stage project financing and expensive loan terms constitute a big hindrance Desert to Power 2

Desert to Power is filling a gap in the private sector… • Strong population growth & demand • Abundant solar resources • Lack of adequate finance for - private sector Solution $ 50 Million Project Development Fund • Increase the pipeline of bankable • projects $ 250 Million Blended Finance Facility Give visibility to investors on availability of funding • Reduce risk for- developers by 50% • Shorten loan approval process - • Unlock the market for solar • Propose competitive terms to get projects to lower tariffs Desert to Power 3

Project Construction Window $250 Million Blended Finance Facility * Selection process details to be communicated by Q 4 2018 • Provide project sponsors with faster access to loans at a competitive rate and facilitate their interactions with governments. Desert to Power • Africa 50 as Fund manager • Af. DB as accredited entity to climate funds • Co-invest with 10 Developers* with track record and commitment to the region • Mobilize Climate Finance and bilateral funding • Pre approve sponsors eligible to access the facility* Output • Increase the pipeline of bankable projects • Reduce risks for developers • Unlock the market for solar projects Approach Project Preparation Window $50 Million Project Development Fund Overview . . supporting both actors in development and implementation phase of Renewable Energy projects • Fund feasibility, environmental, social impact studies, financial modelling • Fund surveys, and transaction advisory services • Faster project development timeline and tariffs at levels attractive to governments and private investors 4

…to transform sustainably the Sahel region 1 Developers and investors 2 Completed projects 3 New Generating Capacity Strategic partnerships with 10 firms 20 solar PV projects 4 On-grid 5 Off-grid Access for 60 Million people Access for 90 Million people Ultimately 10 GW Solar PV Desert to Power 5

Be part of the transformation!