French independent power producer (IPP) Qair has successfully obtained a concessional financing package to advance an 18-megawatt (MW) solar project in Dedougou, Burkina Faso.
The African Development Bank Group (AfDB) announced its approval to disburse EUR 6 million (USD 6.7 million) through the Sustainable Energy Fund for Africa (SEFA).
The financing includes a senior concessional loan of EUR 2.5 million and a reimbursable grant of EUR 3.5 million. The project faced challenges in achieving financial closure due to increased costs associated with the COVID-19 pandemic. The SEFA funding has enabled the restructuring of financial arrangements, allowing for additional loans from the Dutch development bank FMO.
The Dedougou solar project is significant as one of the first independent power producer initiatives in Burkina Faso, supported by a 25-year power purchase agreement with the national power company Sonabel.
This project is expected to bolster Burkina Faso’s energy security, diversify its energy sources, enhance national electrification rates, and lower electricity costs.
It is part of the AfDB’s Desert-to-Power initiative, which aims to establish 10 GW of solar power across 11 Sahelian countries by 2030, with Burkina Faso identified as one of the five priority nations alongside Chad, Mali, Mauritania, and Niger.
