The government of Chad (GoC) through
the Ministry of Petroleum and Energy (MoPE) approached IFC to assist in the
design and implementation of this mini-grid program as part of its Scaling
Mini-Grid initiative (SMG) powered by the World Bank Group (WBG), which offers
governments a comprehensive package for mini-grid deployment, including project
preparation, transaction documents, and risk mitigation instruments.
IFC's advisory role involves helping
the Ministry of Petroleum and Energy (MoPE) to design, finance, build, operate,
and maintain mini-grids, focusing on electrifying secondary cities, towns, and
areas near refugee camps. This PPP project will leverage the IFC SMG initiative
for regional deployment, with the IFC identifying and selecting private
operators for the PPP scheme based on potential sites identified after
pre-assessment.
As a preliminary step, IFC conducted a preliminary geospatial mapping to identify
potential mini-grid sites as the least-cost electrification solutions across Chad. Three main areas
with 278 sites were identified. The preselected sites will need to go through
further detailed feasibility studies to refine demand predictions and estimate
generation capacity and costs, moving towards the implementation of the PPP
project to improve electricity access across Chad.
The project is aligned with GoC aiming
to develop a structured mini-grid Public Private Partnership (PPP) program and
the National Electricity Emergency Plan (NEEP) in July 2020, aiming to
significantly increase electricity access from an extremely low rate of 11% to
38% by 2023, and to 53% by 2030.
IFC will support the GoC as lead
transaction advisor in a two-phase approach composed of (i) the due diligence
and structuring phase; and (ii) the tender phase. To advise the GoC, IFC is
considering hiring a law firm as a legal consultant (the "Consultant").
Please note that mobilization
is expected by May 2024.