FP138: ASER Solar Rural Electrification Project | | Senegal Banque Ouest Africaine de Développement (West African Development Bank) (BOAD) Decision B.26/02 21 August 2020 Project/Programme title: ASER Solar Rural Electrification Project Country(ies): Senegal Accredited Entity: West African Development Bank (BOAD) Date of first submission: 2020/01/21 Date of current submission 2020/05/21 Version number V.1.5 GREEN CLIMATE FUND FUNDING PROPOSAL V.2.1 | PAGE 0 Contents Section A PROJECT / PROGRAMME SUMMARY Section B PROJECT / PROGRAMME INFORMATION Section C FINANCING INFORMATION Section D EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA Section E LOGICAL FRAMEWORK Section F RISK ASSESSMENT AND MANAGEMENT Section G GCF POLICIES AND STANDARDS Section H ANNEXES Note to Accredited Entities on the use of the funding proposal template • Accredited Entities should provide summary information in the proposal with cross- reference to annexes such as feasibility studies, gender action plan, term sheet, etc. • Accredited Entities should ensure that annexes provided are consistent with the details provided in the funding proposal. Updates to the funding proposal and/or annexes must be reflected in all relevant documents. • The total number of pages for the funding proposal (excluding annexes) should not exceed 60. Proposals exceeding the prescribed length will not be assessed within the usual service standard time. • The recommended font is Arial, size 11. • Under the GCF Information Disclosure Policy, project and programme funding proposals will be disclosed on the GCF website, simultaneous with the submission to the Board, subject to the redaction of any information that may not be disclosed pursuant to the IDP. Accredited Entities are asked to fill out information on disclosure in section G.4. Please submit the completed proposal to: [email protected] Please use the following name convention for the file name: “FP-[Accredited Entity Short Name]-[Country/Region]-[YYYY/MM/DD]” GREEN CLIMATE FUND FUNDING PROPOSAL V.2.0 ACRONYMS ASER : Senegalese Agency for Rural Electrification (Agence Sénégalaise d’Électrification Rurale) ASN : Standards Association of Senegal (Association Sénégalaise de Normalisation) AML/CFT : Anti-money laundering - combating finance of terrorism APR : Annual Performance Report BCEAO : Central Bank of West African States BE : Baseline Emissions BOAD : West African Development Bank (Banque Ouest Africaine de Développement) CDM : Clean Development Mechanim CoP : Conférence of Parties [to the United Nations Framework Convention on Climate Change] COPERES : Council of Professionals of Renewable Energies in Senegal CRSE : Electricity Sector Regulatory Commission (Commission de Régulation du Secteur de l'Électricité) DER : General Delegation for Women and Young Entrepreneurs (Délégation générale à l’Entreprenariat Rapide des Femmes et des Jeunes) DEEC : Direction de l’Environnement et des Etablissements Classés DREEC : Divisions Régionales de l’Environnement et des Établissements Classés ER : Emission Reduction ESMF/ESMP : Environmental and social management Framework/Plan ECOWAS Economic Community of West African States ECREEE ECOWAS Centre for Renewable Energies and Energy Efficiency ERIL : Local Rural Electrification Initiative (Electrification Rurale d'Initiative Locale) ERPA : Emission Reductions Purchase Agreement ESIA : Environmental and Social Impact Assessment FONGIP : Priority Investment Guarantee Fund (Fonds de Garantie des Investissements Prioritaires) FONSIS : Sovereign Strategic Investment Fund (Fonds Souverain d'Investissements Stratégiques) FSE : Special Support Fund for the Energy Sector (Fonds Spécial de Soutien au secteur de l’Energie) GCF : Green Climate Fund GDP : Gross Domestic Product GEF : Global Environment Facility GHG : Green House Gases IPP : Independent Power Producers IRENA : International Renewable Energy Agency KYC : Know Your Customer LPDSE Letter of Development for the Energy Sector (Lettre de Développement du Secteur de l’Énergie) MCC : Millennium Challenge Corporation MEP : Ministry of Energy and Petroleum MFI : Microfinance institutions MEFP : Ministry of Economy, Finance and Planification M/SME : Micro/Small Medium Enterprises NDA : National Designated Entity NDCs : Nationally Determined Contributions NGO : Non-Governmental Organization O&M : Operation and Maintenance OECD : Organization for Economic Cooperation and Development PE : Project Emissions PMU : Project Management Unit (Unité de Gestion du Projet) PNER : National Rural Electrification Program (Programme National d'Électrification Rurale) PoA : (CDM) Programme of Activities PPER : Priority Rural Electrification Program (Programme Prioritaire de l'Électrification Rurale) PPPs : Public Private Partnership PREM: Multi-Sectoral Energetic Projects (Projects Energétiques Multi-sectoriels) PSE : Plan Senegal Emergent PUDC : Emergency Community Development Program (Programme d'Urgence de Développement Communautaire) PV : Photovoltaic RE : Renewable Energy ROGEP : Regional Off-Grid Electrification Project SENELEC : Société Nationale d’Electricité du Sénégal SDGs : Sustainable Development Goals SHS : Solar home system ToR : Terms of Reference UNFCCC : United Nation Framework Convention on Climate Change WAEMU : West African economic and monetary union (*) Some institutions’ names and acronyms are retained in French GREEN CLIMATE FUND FUNDING PROPOSAL V.2.1 | PAGE 1 A PROJECT/PROGRAMME SUMMARY A.1. Project or A.2. Public or private Project Public programme sector A.3. Request for Not applicable Proposals (RFP) Check the applicable GCF result area(s) that the overall proposed project/programme targets. For each checked result area(s), indicate the estimated percentage of GCF budget devoted to it. The total of the percentages when summed should be 100%. Mitigation: Reduced emissions from: GCF contribution: ☒ Energy access and power generation: 100% ☐ Low-emission transport: ☐ Buildings, cities, industries and appliances: A.4. Result area(s) ☐ Forestry and land use: Adaptation: Increased resilience of: ☐ Most vulnerable people, communities and regions: ☐ Health and well-being, and food and water security: ☐ Infrastructure and built environment: ☐ Ecosystem and ecosystem services: Adaptation co-benefits to 344,000 beneficiaries A.5. Expected mitigation 1,127,447 tCO2eq A.6. Expected adaptation (38,900 households) impact (2021 – 2045) impact 4% of Senegal rural population A.7. Total financing (GCF 198,692,182 Euros + co-finance) Medium (Upto USD 250 A.9. Project size million)1 A.8. Total GCF funding 75,445,176 Euros requested Mark all that apply and provide total amounts. The sum of all total amounts should be consistent with A.8. A.10. Financial ☒ instrument(s) requested Grant EUR 1,821,945 ☐ Equity Enter number for the GCF funding ☒ Loan EUR 73,623,231 ☐ Results-based ☐ Guarantee Enter number payment Enter number A.11. Implementation 25 years 2021 - 2026 A.12. Total lifespan period (PV equipment lifetime) A.13. Expected date of A.14. ESS category B AE internal approval 2/24/2020 A.15. Has this FP been A.16. Has Readiness or ☒ ☒ submitted as a CN Yes No ☐ PPF support been used Yes ☐ No before? to prepare this FP? A.17. Is this FP included A.18. Is this FP included ☒ ☒ in the entity work Yes No ☐ in the country Yes No ☐ programme? programme? 1 Equivalent to EUR 225 million GREEN CLIMATE FUND FUNDING PROPOSAL V.2.1 | PAGE 2 A Does the project/programme complement other climate finance funding (e.g. GEF, AF, A.19. Complementarity CIF, etc.)? If yes, please elaborate in section B.1. and coherence Yes ☐ No ☒ A.20. Executing Entity Government of the Republic of Senegal represented by the Senegalese Rural information Electrification Agency (ASER) A.21. Executive summary (max. 750 words, approximately 1.5 pages) This proposal aims to foster the development of off-grid renewable energy mini-grids to reduce CO2 emissions from the Senegal power sector whilst contributing to electricity access objectives and promoting gender-balanced rural economic growth. Low-carbon universal access is a critical pillar of the Emerging Senegal Plan (PSE) phase II, as the energy sector was considered one of the greatest success of PSE phase I2, with national power generation increasing two-fold between 2012 and 2018, and 20% of the energy mix derived from clean energy sources. Currently, only 42% of Senegal’s rural population has access to electricity. Electricity access rate is still relatively low and reveals a great disparity between urban and rural populations, with regional disparities that are even more dramatic in terms of the level of coverage. With coverage rates ranging from 12% in Kedougou to 70% in Dakar, only five other regions (Diourbel, Saint-Louis, Matam,Thiès, Ziguinchor) have been able to achieve an electrical coverage rate of at least 50%. Two regions (Kolda and Kedougou) have a coverage rate of less than 20%. At the departmental level, Salémata, Medina Yoro Foula, Ranerou and Saraya have an electrical coverage rate of less than 10%3. These low rates are due to excessively high costs of investment and operations, dispersal and low level of consumption, yet the benefits of rural electrification are undisputed, significantly improving the quality of life of communities and increasing productivity. Distributed renewable energy generation also help increase the reliability and resilience of power supply by making it less vulnerable to disruptions caused by natural disasters. Multiple socio-economic and socio-ecological co-benefits can further