Central African Republic - Project to Interconnect Power Grids from the Boali Hydropower System Phase I: CAR Component- Supplementary Grant


Project Summary

Approval Date 24 Nov 2020
Signature Date 14 Dec 2020
Planned Completion Date 31 Dec 2021
Last Disbursement Planned Date 31 Dec 2021
Sovereign / Non-Sovereign Sovereign
Sector Power
DAC Sector Code 23220
Environmental Category 2
Commitment U.A 2,500,000
Status Approved

Project General Description

The proposed operation is a supplementary grant of UA 2.51 million to finance the Central African Republic (CAR) component of the Project to Interconnect the Power Grids of CAR and DRC from the Boali Hydro-power System. In September 2012, the ADF approved a grant of UA 29.73 million to the Central African Republic (CAR) to finance the BOALI Phase I Project (interconnection of the CAR and DRC power grids from the Boali hydropower system). The goods procurement process -i) Rehabilitation and extension of Boali 2 plants; -ii) Rehabilitation of the transmission network; and -iii) Rehabilitation and extension of the distribution network) revealed that the cost of the winning bids exceeded the budget by UA 2.51 million. The reasons for this budgetary gap stem, on the one hand, from the bidders' perception of country risk and, on the other hand, from monetary inflation between the project approval date (September 2012) and the bid submission date (in 2018). Hence, following the Bank President's commitment to contribute to the financing of the crossborder project to electrify 9 provincial localities from the Mobayi power station (PETMobayi), it appeared necessary to finance the project update cost. The supplementary grant will provide additional resources to complete the infrastructure works and achieve most of the project's objectives. The project components are: (i) Rehabilitation and strengthening of generating units; (ii) Construction and strengthening of the transmission grid; (iii) Construction and strengthening of distribution grid; (iv) Project management. The total cost of the CAR component of the revised project, net of taxes and customs duties, is estimated at UA 32.23 million.

Project Objectives

The overall objective of the project is to rehabilitate and strengthen the generating units and the interconnected transmission and distribution networks to improve the power availability and access rate and reduce the extremely high cost of electricity in CAR and the DRC.

Beneficiaries

The main project beneficiaries are: (i) ENERCA and SNEL, whose generation costs will drop and whose income will increase as a result of new customers and enhanced reliability of the grid; (ii) ENERCA and SNEL’s customers, including the private sector, who will benefit from improved service quality; (iii) the inhabitants of the project area who will be employed on the project sites; and (iv) the two governments, which will collect additional tax revenue and benefit from increased productivity of the administration, thanks to improved working conditions.

Participating Organization

Funding
African Development Fund
Implementing
Ministère des Finances, des Mines, de l'Energie et de l'Hydraulique Direction Générale de l'Hydraulique

Information

IATI identifier 46002-P-CF-F00-003
Last Update 03 Mar 2021

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Contact Details

Name BRI Aye Lucien Firmin
Email f.bri@afdb.org

Geographic Location

Country Central African Republic