SSA SUSTAINABLE ENERGY PLATFORM

Promoter – Financial Intermediary

CAMCO CLEAN ENERGY LTD

Location

• Ghana
• Kenya
• Nigeria
• Uganda

Description

The project borrower will be Spark Energy Services, an investment platform/financing vehicle designed, seeded and managed by Camco Clean Energy, a fund manager investing into captive solar/energy efficiency companies to implement small-scale commercial & industrial (C&I) projects in Sub-Saharan Africa. The project will finance the borrower's planned expenditures for the construction and expansion of C&I energy projects using captive solar and energy efficiency technologies aiming at the electrification of social infrastructure.

Additionality and Impact

The project concerns the financing of commercial and industrial captive solar and energy efficiency projects in Sub-Saharan Africa, accelerating the uptake of clean energy systems, reducing carbon emissions and air pollution and addressing the market failure of negative environmental externalities.

The operation contributes to EIB's lending priorities on Renewable Energy, Climate Action and Environmental Sustainability, supporting Cotonou Agreement and NDICI's political aspirations. Investments will be directed to the electrification of social infrastructure (schools and hospitals), achieving high developmental impact and poverty reduction, in line with the ACP Impact Finance Envelope priorities.

The operation targets local private sector development, funding enabling infrastructure, promoting access to affordable finance to households and SMEs, lacking support by commercial banks, and providing clean and reliable electricity to unserved or underserved populations.

This contributes to the sustainable development of the region, boosting productivity and competitiveness, leading to employment creation and inclusive economic growth, in alignment with EU's global and regional objectives, Team Europe initiatives, EIB policy goals and the Africa Union Agenda 2063, achieving several Sustainable Development Goals, including number 13, 7, 8, 5 and 3.

EIB financing will play a catalytic role in closing the funding round, crowding-in other lenders and investors on acceptable terms.

Objectives

The aim is to support the clean energy sector to complement or replace unreliable/unavailable traditional electricity supply. The related investments will make a significant and sustainable impact on households, businesses and other facilities with current limited access to reliable electricity supply and therefore relying on expensive and polluting back-up alternatives.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

USD 10 million (EUR 9 million)

Total cost (Approximate amount)

USD 50 million (EUR 44 million)

Environmental aspects

Details of the platform 's environmental and social due diligence procedures for ensuring compliance with national legislation, the principles and standards of relevant EU legislation and EIB Environmental and Social Standards as well as the capacity of the platform to assess and monitor environmental and social risks and impacts, will be reviewed during appraisal. The platform will be required to develop an environmental & social policy and establish the appropriate management systems to comply with the EIB's environmental and social requirements. The assessment of the environmental and social impacts and risks will be part of the standard due diligence process that the Platform will have to carry out for each underlying investment, thereby ensuring that the portfolio and these investments are in compliance with national law and in line with the principles and standards of relevant EU environmental legislation as well as the EIB's Environmental and Social Standards.

Procurement

The EIB will require the Fund Manager to take all requisite measures to ensure that contracts for implementation of the projects financed by the borrower will be tendered in line with the EIB's Guide to Procurement.

Status

Signed - 1/08/2024