The African Development Bank Group has approved a €6 million concessional financing package from the Sustainable Energy Fund for Africa (SEFA), a special multi-donor fund managed by the Bank, to accelerate the completion of Burkina Faso's Dédougou photovoltaic solar project in support of the Bank's Desert-to-Power initiative.
The project involves designing, constructing and operating an 18-megawatt solar power plant in Dédougou, located 250 kilometres west of the capital, Ouagadougou. Burkina Faso is one of five priority countries under the Desert-to-Power initiative, which aims to generate 10 gigawatts of solar power across 11 Sahelian countries by 2030, promoting socio-economic development.
This project stands as one of the first independent power producers (IPPs) in Burkina Faso and has secured both senior and subordinated loans, along with a 25-year Power Purchase Agreement (PPA) with the Société Nationale d'électricité du Burkina Faso (SONABEL). However, the project encountered challenges in reaching financial close due to cost escalations resulting from the COVID-19 pandemic. The SEFA Covid-19 IPP Relief Programme (SEFA Programme) played a pivotal role in overcoming these hurdles. Through concessional financing, SEFA helped restructure the financial arrangements to absorb the pandemic-related cost increases, ensuring the project's viability and preserving the originally agreed structure with the Government of Burkina Faso, thereby contributing to the country's energy security.
Under the SEFA Programme, a €2.5 million senior concessional loan and a €3.5 million reimbursable grant have been provided through its concessional finance facility. SEFA's involvement has been instrumental in unlocking additional financing from the Dutch entrepreneurial development bank, FMO, including subordinated and senior loans. These funds will be disbursed to Dédougou Solaire SARL, the project company jointly developed by QAIR, which is responsible for managing the project.
As part of the Desert-to-Power initiative, the project is expected to contribute to energy security, diversification of the energy mix, reduced electricity costs, and increased national electrification rates.
"The Dédougou Solar PV project increases Burkina Faso's renewable energy generation capacity in line with the objectives of the Desert-to-Power Initiative. By backing projects like this, we are making tangible strides toward electrifying the Sahel, bolstering energy security, and improving the lives of millions," said Dr. Daniel SCHROTH, Director of the Renewable Energy and Energy Efficiency Department at the African Development Bank
"Abdoulaye Toure, CFO at Qair Africa, acknowledged SEFA's support and the project's advancement: "We are pleased with this approval by SEFA and thank the African Development Bank for their support of the project. This allows us to move forward with our commitment to supporting Burkina Faso's energy goals by developing a second solar plant, just a year after the successful commissioning of Zano. This achievement aligns with the country's ambitions for energy supply and reinforces Qair's vision of becoming a leading player in Africa's renewable energy sector in the coming years."
ABOUT SEFA
SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. The Fund's overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and Sustainable Development Goal 7.
ABOUT Qair
Qair is an independent renewable energy company developing, financing, building, and operating solar, onshore and offshore wind, hydroelectric, tidal energy, waste-to-energy, battery storage and green hydrogen production.
With 1.1 GW of capacity in operation, the group's 640 employees are developing a portfolio pipeline of 30 GW in 20 countries across Europe, Latin America and Africa. Our ambition is to become an independent leader in responsible energy.
In Africa, Qair's portfolio of wind, PV and BESS assets includes 65 MW operational projects, 174 MW/262 MWh under construction or financing and a robust pipeline under development of 2GW+. With over 15 years of presence in Africa and teams established in Burkina Faso, Chad, Mauritius, Morocco, Seychelles, and Tunisia, Qair continually expands its geographical footprint across North, Central and West Africa and the Indian Ocean. Qair has already completed another 24MW solar PV project (Zano) in Burkina Faso, which was awarded under a public-private partnership (PPP) with GoBF along with a PPA with the National Electricity Company (SONABEL). For more information, please visit www.qair.energy/
About FMO
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proven track record in empowering entrepreneurs to make local economies more inclusive, productive, resilient and sustainable. FMO focuses on three sectors with a high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of EUR ~13 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally.
