Technical assistance
Energy Efficiency. Renewable energy  N/A

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Technical & Economic Study on the feasibility of Energy Efficiency & Renewable Energy projects in Agribusiness Sector in Kenya

Country : Kenya .
Client : AFD (French Development Agency )
Start Date : September 2009
Completion Date : December 2009
Value of services : 43 800 €
Funder : AFD (French Development Agency )
Associate/Partner : Joseph Njuguna, Energy Track
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Description :
The AFD intends to offer a long term line of credit of 30 M. Euro to a selected number of banks ready to enter into a long term partnership with AFD for the financing and accompaniment of EE and RE projects in the Agribusiness sector, first in Kenya (which offers the highest potential for this type of projects) and possibly in Uganda and Tanzania. In order to verify the feasibility of such projects and ease their implementation, a technical assistance programme will be set up, provided by AFD.
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Description of the Actual Services Provided IED was contracted to carry out the full assignment and provide inputs to the definition of the EE RE credit line.
IED has been assigned to provide its services as Technical Assistant in the following activities:
* Assess the potential market for EE/RE projects in each of the main sub-sectors which belong to the agribusiness sector in Kenya
* Define the type and size of the pipeline projects which the banks can expect to finance over the next three to five years, and consequently contribute to set the amount of AFD’s line of credit
* Describe the economic and financial profile (strength and bankability) of potential investors
* Develop base cases – technical feasibility and economic viability of the best adapted type of project in each agribusiness main sub-sector
* For potential candidate banks short listed with AFD, review of the banks’ loan portfolio in cooperation with the bank’s team to identify potential investors in EE/RE projects in the agribusiness sector as well as potential investors in renewable power generation units
* Estimate the sponsors/ banks technical assistance needs to the successful implementation and operation of the EE/RE investments for each type of project;
* Define the technical assistance expertise required to be able to bring support to the sponsors and to the participating banks through a survey
* Define a proposal for the organization of the technical assistance unit which the project shall provide to the sponsors and to the participating banks