This summary covers an application by FinEU-ELLEN SARL (FinEU) of France for its equity and shareholder loan investments in Alternaprod Mali SASU (Alternaprod or the Project Enterprise) in Mali. The investor seeks cover for up to €4 million against the transfer restriction and inconvertibility for a guarantee period of up to 8 years.
The project consists of the storage of E-Longlife solar PV power kits with lithium-storage batteries of various capacities (Solar Kits) and high energy efficiency productive tools and appliances (Solar tools and solar appliances) in the Project Enterprise’s warehouses, transportation of Solar Kits, solar tools and solar appliances to the end users’ sites, and installation, operation, and maintenance of Solar Kits, tools and appliances in the rural Mali. Solar Kits store energy collected by photovoltaic panels to power solar tools and solar appliances for domestic and productive use in exchange for a rental price determined by subscription contracts between the end-users and the Project Enterprise. Solar Kits are owned by FinEU and/or the Project Enterprise. The electricity generated is used for household consumption and for SMEs in rural areas of Mali that do not have access to the grid.
The project is a Category B under MIGA’s Policy on Environmental and Social Sustainability(2013) since it is expected to have limited environmental and social impacts which are site-specific, largely reversible, and can be readily addressed through mitigation measures. The key environmental and social issues associated with this project include: environmental and social management systems; occupational and community health & safety; waste management; and environmental health and safety issues associated with the supply chain. These impacts can be avoided or mitigated by adhering to MIGA’s Performance Standards, and the World Bank Group (WBG) General EHS Guidelines.
The project has environmental and social procedures in place, which will be updated to manage the potential risks and impacts consistent with MIGA’s Performance Standards. The project will also appoint an Environmental, Health, and Safety Officer with responsibility for the implementation of environmental and social risk management measures. Click here for the project’s Environmental and Social Review Summary.
Electricity access in Mali is among the lowest in the region. Approximately 81 percent of Mali’s[i] rural population do not have access to electricity. The landlocked Sahel country has large areas with low population density[i]which makes the development of a national grid to meet the population’s power demand economically unfeasible. Mini-grid and off-grid solutions are therefore important for adequate service delivery. The distribution of solar kits has the potential to increase economic activity by small and medium enterprises and improve quality of life for households in remote areas of Mali. The project is expected to provide affordable energy for approximately 30,000 households. The kits being deployed have a 20-year lifespan and a low carbon footprint, representing a sustainable solution to the challenge of power availability.
MIGA’s support for the project is expected to enable critical investment in a fragile and conflict-affected states and IDA countries, as well as contribute to climate change mitigation, all of which are strategic priorities for MIGA.