|Approval Date||31 Oct 2016|
|Sovereign / Non-Sovereign||Non Sovereign|
|DAC Sector Code||23230|
The proposed intervention is a EUR 8.349 million senior loan with a 17 year tenor to Ségou Solar S.A., a SPV incorporated in Mali. It comprises the design, financing, construction and operation of a 33 MW photovoltaic plant in Ségou, 240 kilometers NorthEast of Bamako. The project is located on a 90 hectare publicly-owned site. The construction of the required 33 Kilo Volt transmission line required to evacute the power to a nearby substation is included in the project costs. In addition to the senior loan on its own balance sheet, the ADB- as an implementing entity of the Climate Investment Funds- will blend the debt and equity package with a senior concessional loan of EUR 20 million in USD equivalent.
The project is expected to deliver “good” development outcomes, driven by its contribution to infrastructure development and transition to green growth. The participating development finance institutions’ additionality has been assessed as “strongly positive”, stemming from the provision of political risk mitigation and long-term debt financing.
With an annual output of 53 Giga Watt Hour (GWH) per year, the project will increase the installed electricity generation capacity by adding 33MW to the grid. It is expected to increase Mali’s total production output by 3.4% corresponding to the output needed to serve approximately 60,000 users of which 50% are expected to be women. The project is expected contribute to a reduction in Greenhouse Gas emissions amounting to 55,000 equivalent tons of Carbon Dioxide (CO2) . Over the project life, the project is expected to generate 240 new jobs (40 permanent) and EUR 4.37 million in tax revenues. The Government of Mali (GoM) also stands to benefit from a potential subsdidy reduction to Eléctricité du Mali amounting to EUR 5.07 million.
African Development Bank
|Last Update||23 Feb 2021|