24 October 2014, Abidjan – With support from the African Development Bank (AfDB), Mali received US $1.5 million from the Scaling-Up Renewable Energy Programme in Low Income Countries (SREP) of the Climate Investment Funds (CIF). The SREP financing will benefit the Project for Scaling-up Renewable Energy in Mali (PAPERM).
PAPERM aims to contribute to (i) improving the policy, legal, regulatory and institutional framework for scaling-up renewable energy investments; (ii) strengthening the capacities of stakeholders and ensuring knowledge management, communication and advocacy to facilitate the development of renewable energy; and (iii) improving the sub-sector’s monitoring and evaluation system. The project covers the entire country and will take place over three years.
Following the grant approval, Alex Rugamba, Director of the AfDB’s Energy, Environment and Climate Change Department, said, “The Bank actively participated in the preparation of the SREP investment plan for Mali and will support the implementation of three of the four projects that it contains, including the Project for Scaling-up Renewable Energy in Mali. Through PAPERM, the Bank seeks to support Mali in transforming its energy sector and improving the environment for future investments in renewable energy.”
PAPERM has an estimated budget of US $2.602 million. The project also benefits from a US $530,000 grant from the Sustainable Energy Fund for Africa. With co-financing from SEFA and SREP, this project demonstrates that the AfDB can mobilize the various climate funds it manages in order to create greater synergies between these different funding instruments. Beneficiaries of the project include the National Directorate of Energy and other agencies in Mali’s energy sector, as well as private and public investors who will benefit from improved strategic, legal and regulatory frameworks.
Mali has great renewable energy potential, which remains largely untapped to date. The country’s Strategic Framework for Growth and Poverty Reduction 2012-2017, however, plans “to make renewable energy the main energy source in the country.” PAPERM is in line with the objectives of the National Renewable Energy Development Strategy, which are to (i) promote the widespread use of renewable energy technologies and equipment; (ii) develop the biofuel sector; (iii) create optimal conditions for the sustainability of renewable energy services; and (iv) identify sustainable and adapted financing mechanisms.
*African Development Bank – press release