Elaboration of the IFC roadmap to support the development of hydropower projects in sub-saharan africa (Multi-Country)
Context
Sub-Saharan Africa has considerable resources for hydropower generation, yet only a small share is currently exploited. The International Finance Corporation (IFC), investor of the World Bank Group, supports the development of these projects and askes for a roadmap to guide its action.
Objective
To address the challenge of achieving a sufficient pace of development, in order to improve the supply of clean energy in the African continent, the IFC has requested support to (i) elaborate its hydroelectric projects development roadmap under a public-private partnership (PPP) format, and to (ii) identify projects that could be developed in priority.
Our contribution
Our team has conducted the following activities:
- Elaboration of a roadmap for increased private sector engagement in the hydropower sector in Sub-Saharan Africa:
- An in-depth review of the challenges and opportunities of hydropower projects in Sub-Saharan Africa,
- Identification and search for information on hydroelectric projects over 20 MW,
- Search for information on existing hydropower assets that could be privately owned or rehabilitated through privately financed projects,
- Examination of the various private or PPP-based structuring options available for the projects, including the main advantages and disadvantages,
- Proposition of innovative structuring options and development of a roadmap to increase private sector involvement in the sector.
- Identification of potential priority projects for IFC engagement:
- Definition of a ranking methodology as well as selection criteria,
- Ranking of projects for each criterion and pre-selection of the top 15 projects,
- Analysis of each pre-selected project’s context, the structuring options, the adequacy with national strategies, and the development of a "second stage" ranking methodology,
- Selection of top-tier projects for investment opportunities,
Proposition of an approach for the continuation of the process.
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