OPIC, REPP sign agreement in support of renewable energy projects in Sub-Saharan Africa
May 25, 2016
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S. government’s development finance institution, and the Renewable Energy Performance Platform (REPP) have announced an agreement to facilitate cooperation on renewable energy projects in Sub-Saharan Africa.
Through this Memorandum of Understanding (MOU), OPIC will partner with REPP to identify projects that could benefit from their mutual support and assistance, beginning from early stage development. The intention is to identify strong projects that would be eligible for OPIC financing at an early stage so that with REPP assistance, the projects have a higher likelihood of being financed and achieving their intended development impact.
“This cooperation is intended to provide REPP participants with additional options for financing and insurance and to help identify new clean energy projects in Sub-Saharan that advance OPIC’s Power Africa goals and commitment to supporting clean and renewable energy projects,” said Lynn Tabernacki, Managing Director of OPIC’s Renewable and Clean Energy Programs.
“Our team is pleased to be working with OPIC to realize the enormous potential for small-scale and distributed clean energy in Africa,” said Geoff Sinclair, Managing Director of Camco’s African business.
REPP, developed by the United Nations Environment Program (UNEP) and the European Investment Bank (EIB), was designed to address gaps in climate investment in developing countries including the shortage of support for early stage investment opportunities and shortage of small and medium sized projects (up to 25MW). It aims to help overcome investment hurdles for first mover projects operating within newly supportive policy environments.
REPP’s support includes: technical assistance during the development phase, access to risk mitigation tools, access to long-term lending from REPP partners, assistance with financial structuring, and results-based financial support.
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OPIC is the U.S. Government’s development finance institution. It mobilizes private capital to help address critical development challenges and in doing so, advances U.S. foreign policy and national security priorities. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity investment funds, when commercial funding cannot be obtained elsewhere. Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and respect human rights, including worker's rights. By mandating high standards, OPIC aims to raise the industry and regional standards of the countries where it funds projects. OPIC services are available for new and expanding business enterprises in more than 160 countries worldwide.
The Renewable Energy Performance Platform (REPP) seeks to mobilize private sector development activity and investment in small and medium scale renewable energy projects (up to 25MW). REPP was initiated by the European Investment Bank and the United Nations Environment Program to deliver the UN Sustainable Energy for All objectives in Sub-Saharan Africa. REPP is managed by a consortium, comprised of Camco Clean Energy and Greenstream, to install over 150 MW of clean energy to the Sub-Saharan region of Africa within a five year period.