The United Nations Capital Development Fund (UNCDF) has issued a call for renewable energy projects in Burkina Faso. The Fund, with financial support from Luxembourg, will invest up to 200,000 dollars (approximately 117 million CFA francs) depending on the project.
Companies and start-ups specialising in renewable energy in Burkina Faso have the opportunity to obtain financing for their projects. The United Nations Capital Development Fund (UNCDF) has just launched a call for renewable energy projects. The institution will offer technical and/or financial assistance to project holders. Funding will range from US$ 50,000 (over 29 million CFA francs) to US$ 200,000 (about 117 million CFA francs) depending on the size of each company or start-up project.
Within the framework of this project, the UNCDF, with the financial support of Luxembourg, has set up a support fund dedicated to the development of companies in the electric power sector. This is a complementary initiative to the Support Project for Resilience through Innovations underway in Burkina Faso.
Companies interested in the UNCDF initiative will be required to submit projects that contribute to strengthening and accelerating the growth of income-generating activities through the adoption of renewable energy. The United Nations Capital Development Fund is looking for “innovative solutions with proven technology”. It accepts two forms of renewable energy. These are solar photovoltaic (PV) and biomass (improved stoves). “Applicants may submit multiple proposals (only one proposal per application form). Proposals must be for separate business ideas,” says the UN fund. Applicants have until April 10, 2020 to address any questions regarding the call for proposals to the UNCDF.
The selection process
Through a competitive process, an independent investment committee will decide on the selected proposals. Applicants selected for technical assistance will sign a technical assistance agreement with the United Nations Capital Development Fund. Project leaders wishing to obtain grants will sign a Performance-Based Financing Agreement (PBFA) with the fund. For loans, promoters will sign a Loan Agreement. The agreement will provide details on the disbursement schedule and mutually agreed milestones. It will also give the interest rates, grace period, repayment schedules, etc.