Technical assistance
Renewable energy. N/A  N/A



Managing entity for a financing program aiming at the promotion of private initiatives in green Mini-Grids improving access to electricity in Kenya

Country : Kenya
Client : AFD (French Development Agency)
Start Date : 11/2016
Completion Date : 11/2020
Value of services : 4 218 543 €
Funder : AFD (French Development Agency)
Associate/Partner : N/A
Description :
The objective of the programme titled Green Mini-Grids (GMG) Kenya (financed by DFID) is to catalyse investment in electricity mini-grids and provide renewable powered electrification to enhance access to energy in Kenya. The program is aimed at supporting private sector-led deployment of mini-grids as the most sustainable approach to achieve scale rapidly.
However, the private sector market faces challenges in relation to regulatory and licensing framework, accessing to funding and finance, and uncertainty about government grid extension plans, and the terms and conditions for future grid connection, among others.

Thus, the GMG Kenya programme is focusing on:
- Identify the best GMG private sector projects in Kenya through direct project preparation and transaction advisory support.
- Develop and offer a support to the best projects identified through financial tools and capital support for end-user finance.
The Agence Française de Développement (AFD) has been selected as the implementing partner for this programme.
In order to provide an appropriate institutional platform for the daily operation of the GMG programme, the AFD has hired IED to act as its Managing Entity for the daily operation of the program.
Description of the Actual Services Provided For this assignement IED will provide AFD with the following services:
- Fine-tune the operational process of the program within a Manual of procedure, including the finalization of the eligibility criteria.
- Contribute to the identification and selection of the best GMG projects seeking some form of financial support and technical assistance
- Evaluate business plans, pre-feasibility and feasibility studies, and other relevant documents to identify the gaps and the appropriate funding required (i.e. commercial financing, concessionary financing, grants, equity, etc.) including participation in this program, other programs, as well as private sector investors and lenders.
- Ensure that the projects are sustainable in respect of their environmental and social impact, and adequately address gender issues.
- Assist Project Sponsors in carrying out relevant feasibility studies and in preparing their project presentation to potential financiers and co-investors.
- Introduce and advocate for Projects with co-investors in the GMG industry (including commercial banks participating in the SUNREF program for instance).
- Propose grant and technical assistance allocation, submitted to the AFD´s decision.
- Ensure disbursement of grants and provision of technical assistance to eligible projects.
- Contribute to the monitoring of the first stages of the project´s implementation
- Control the projects´ compliance with the Project´s eligibility criteria, as well as updating said eligibility criteria to best adapt to a changing market.
- Ensure the portfolio of supported GMG projects is diversified and representative of the market
- Ensure articulation with other GMG initiatives from local public authorities, other donors, other international financial institutions