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Direct Grant for Rural Electrification in Sierra Leone

Region
Western Africa
Sector
Energy
Scope
DG
Grant Amount
EUR 10,000,000
Total project cost
EUR 374,400,000
Status
Approved
PFG Lead Financier
AfDB
PFG co-Financier
KfW

The CLSG Interconnector project involves constructing a 1,357 km transmission line allowing power exports initially from Ivory Coast to Liberia, Sierra Leone, and Guinea. The interconnector aims to create incentives to explore the hydropower potential in Sierra Leone and Guinea which, if realised, would provide all the countries with an increased supply of electricity to meet growing demand. Approximately 12.5% of the total project cost will finance rural electrification.

As at 31 December 2016, the procurement process for the respective Lots of the Transmission line has been finalized. The corresponding No Objections for the bid evaluation report are being financed, following the completion of the tender prequalification. It is expected that in Q1 2017, the contract for the Lot related to the transmission line connection Man (Cote d’Ivoire), Yekepa (Liberia) and Nzerekora (Guinea) shall be signed and corresponding advance payment remitted. In Q2 2017, the respective works for this Lot shall commence.  It should be noted that the project is currently facing a financing gap and efforts to address this issue are being undertaken.

The EU-AITF direct grant will be used to finance rural electrification in Sierra Leone from the shield wire and/or from the five substations in Sierra Leone. The direct grant will inter alia finance the physical implementation of the distribution network, provide meters and supply connections for the first customers, and supply energy to all governmental and social facilities in 26 identified communities. The grant will complement a shortfall in funding for rural electrification in Sierra Leone and will thereby ensure that all countries will benefit equally from the project.

The AfDB financing was approved by the Board in November 2013 and the grant agreement between the Republic of Sierra Leone and the AfDB was signed and entered into force on 28 November 2013. The project was launched in Freetown on 23/07/2014.

12/2016