Clara NWACHUKWU

African Biofuel and Renewable Energy Company, ABREC, and Nexant Inc., a United States Agency for International Development, USAID initiative, have signed a Memorandum of Cooperation, MoC , for the promotion of Clean Energy Financing in West Africa.

A USAID statement made available to Sweetcrude last week indicated that the MoC was signed on January 18, 2013, adding that the two bodies will be responsible for implementing the Regional Clean Energy Investment Initiative, RCEII, in the sub-region.

Under the terms of the cooperation, which was signed by the Chief Executive Officer, ABREC, Mr. Thierno Bocar Tall, and Vice President, USAID’s Nexant, Dr. Peter du Pont, the two organisations will be responsible for:

?    Creating a regional base of support for Private Financing Advisory Network, PFAN, in West Africa, and will contribute to the development of a PFAN network of partners and other interested stakeholders;

?    Supporting the development of a pipeline of clean energy projects for consideration by investors in West Africa region through a Call for Proposals, CFPs;

?    Organising, promoting and hosting the West African Forum for Clean Energy Financing, WAFCEF, this October in Accra, Ghana, where projects selected for the CFPs will be presented by their respective developers to investors and financiers;

?    Mentoring selected projects by offering pre- WAFCEF introductions to investors, and post – WAFCEF deal-flow sessions. Selected projects will be offered technical assistance to develop financially viable business plans, which will be presented at the WAFCEF; and,

?    Promoting discussions on clean energy policy and knowledge sharing.

The clean energy investment initiative is a key part of USAID’s global effort to promote low emissions development strategies.

According to the promoters, the RCEII is a three year programme designed “to support the expansion and strengthening of PFAN in West Africa,” adding that it “applies the methodology of identifying early stage projects suitable for private sector finance and by providing mentoring and advisory services to help guide these projects for financial closure.”

The Lome, Togo-based, ABREC is an initiative of the World Bank; the ECOWAS Bank for Investment and Development, EBID; Nigeria’s International Energy Insurance, IEI; the ECOBANK Development Corporation EDC; the “Fonds African de Garantie et de Cooperation Economique”, FAGACE; the Nigerian Export-Import Bank, NEXIM; and a host of other donor partners to promote renewable energy and low carbon industry in Africa.

The company also manages the Africa Clean Energy Technical Assistance Facility, and engages regularly with governments and other stakeholders to encourage renewable energy and policy development and policy harmonisation.

USAID on the other hand, supports programmes that reduce greenhouse gas, GHG, emissions and achieve multiple national development objectives, including enhancing energy security, increasing industrial competitiveness, expanding private sector investment, supporting economic growth, and alleviating poverty.