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The West African Development Bank (BOAD) has approved a loan of 25 billion CFA francs (~ €38 million) for the construction of a solar PV power plant in northern Togo. The 42 MWp solar will be built in Awandjélo town in the Kara region.
In the recently held 131st ordinary meeting of BOAD’s Board of Directors in Abidjan, the Chairman of the Board and President of BOAD, Serge Ekue approved the loan for the solar farm along with two other loans.
The Awandjélo solar power plant is backed by the International Finance Corporation (IFC), the subsidiary of the World Bank Group, through its ‘Scaling Solar’ initiative. It is one of the two major renewable energy projects which is backed by the international financial institution.
The second project is the construction of a solar park in Salimde town located near Sokode in the Central region. The IFC has agreed with the government of Togo to build the two solar power plants with a total capacity between 60 and 90 MWp.
IFC, which is responsible for private sector financing, has launched the Scaling Solar program with the aim of encouraging private companies to invest in solar power projects. The initiative facilitates energy supply to the national electricity grid of the country concerned and ensures rapid execution of the electrification projects within two years.
The solar power plant in Awandjélo will be implemented under a public-private partnership (PPP), although the independent power producer in charge of the project’s installation is not yet known. Around 20 bidders are pre-qualified to compete for the solar power project where the winning bidder will sign a 25-year power purchase agreement (PPA).
The project site is selected by the Togolese government and the IFC for the implementation of the solar electrification program in Togo. After its completion, the solar plant will be connected to Togo’s national electricity grid.
According to the BOAD, the solar power plant will help diversify Togo’s electricity mix, increasing the share of renewable energies from 27% in 2021 to 40% in 2024. The project will enable raising the country’s electrification rate from 59% in 2021 to 75% in 2025.