Debt, guarantees and mezzanine
DevCo helped 1.7 million people gain access to improved infrastructure and services. Six projects reached commercial close and four reached financial close; the latter is expected to deliver nearly $264m in private sector investment – all in DAC I and II countries.
Zambia Scaling Solar set a record for solar tariffs with the lowest non-indexed tariffs in sub-Saharan Africa outside South Africa of USc6.015/kWh and USc7.84/kWh for two schemes that will deliver much needed, cheap, green power to the country. This is expected to deliver further scale and replicability across sub-Saharan Africa. In addition, Zambia Scaling Solar was awarded Best Utilities Project at the 2017 Partnership Awards.
Myanmar structured and tendered a PPP to construct and operate a 225MW combined cycle power plant, with DevCo’s help. This project will provide nearly five million people with improved electricity and generate $325m in investment.
India’s Ganges river is a water source for 400 million people, yet untreated sewage from the towns along its banks flows directly into the river. DevCo helped design an innovative PPP for modern sewage treatment plants for three cities – Haridwar, Varanasi and Mathura – that will help reduce pollution and improve drinking water. Based on this success further replicability is expected. Sewage programmes using a similar model have already been approved for 15 more cities resulting in transformational change.
DevCo signed three mandates, with 62% of the new commitments in DAC I and II countries and 38% in fragile states. These include a new Scaling Solar mandate in Zambia that will begin with an initial tender for up to 200MW, with subsequent rounds to follow, with a goal of developing 500MW of renewable power. Another key project is in the West Bank. The Palestinian territories are almost entirely dependent on expensive energy imports from neighbouring countries. With electricity demand growing, securing new sources of affordable energy is a priority. DevCo will help design and tender PPPs to construct, operate, and maintain three to four solar plants totaling about 15MW of renewable energy.
DevCo will continue to bring innovation to its transactions, pursuing pioneering deals that can pave the way for future private investment in infrastructure. In India, DevCo will support low income states to implement large scale solar generation projects and scale up innovation in the storage of renewable energy. These initiatives aim to support the country’s ambitions for 175GW of renewable energy by 2022.