AFD is setting up a concessional facility of EUR 30m, which aims to engage regional and local banks to finance more efficient use of energy and ensure the promotion of renewable energy in the private sector. In conjunction with this credit facility, AFD also plans to set up a TA program to be implemented by a project management unit recruited through an international bidding process and incentive payments to sub-borrowers to reward them for the demonstrative and innovative investment.
Across 2015 and 2016, the technical assistance program supported local banks to identify a portfolio of potential eligible projects. More than 50 projects have been identified that can benefit from technical support before being submitted to partner banks. Among these projects, a sample of mature projects has been selected by the banks to be financed. Several projects have now been certified eligible to financing under the program and are being finally reviewed by banks (mainly from 2017 onwards). Some have already been financed and implemented. In addition, the marketing strategy and capacity building activities for local banks and potential project developers are on-going. Several rounds of coaching sessions have been successfully implemented with all partner banks. In total 4 banks have decided to join the SUNREF program in order to implement the EUR 30 m Loan Facility provided by AFD across several WEAMU countries.