A funding competition for US$5 million to co-develop up to five renewable energy projects in Africa has been launched.
Access Infra Africa, a joint venture between France’s Eren Developpement and United Arab Emirates’ Access Power, designed the Access Co-development Fund (ACF) to help local project developers to gain the experience and funding required to complete power projects.
Schemes making the shortlist for the ACF will be invited for a final screening round by an executive panel on 11 June at the Africa Energy Forum (AEF) 2015 in Dubai.
Selected project developers will enter into a Joint Development Agreement with Access Infra Africa, which will take an equity stake in the project alongside the developer.
Access will provide technical support, financial structuring and development process management as well as funding all third party development costs related to the project such as feasibility studies, grid studies, environmental and social impact assessments and due diligence fees.
Reda El Chaar, executive chairman of Access, said: “Africa’s power sector and wider economy could be transformed by the billions of dollars of financing available for Africa. However, this funding cannot have an impact without well-resourced and experienced developers willing to take early-stage project risk and turn good concepts into bankable projects. As such, investment into the early stage development of projects forms the corner stone for the realisation of the African growth opportunity.”
Karim Megherbi, programme director for the fund and Access Power’s regional head for West Africa said he expected numerous proposals from solar developers to the fund.
“What is unique about this fund is that it is 100% privately financed and managed. It’s not just about financing, it’s about bringing the expertise and having a team fully supporting the developer on a daily basis in order to reach financial close on these projects,” Megherbi said.
