Expression of Interest For Financial Advisor For National Electrification Fund in Namibia

Work Detail

Expression Of Interest For [Namibia] Financial Advisor For National Electrification Fund Description: Country Contextapproximately Half Of All Households In Namibia Do Not Yet Have Access To Modern And Affordable Electricity Services. These Households Are Predominately Lower-Income Households Located In Peri-Urban And Rural Areas. Due To The Unique Geographic And Demographic Characteristics Of Namibia, Expanding Electricity Access To More Remote And Lower-Population Density Areas Increases The Electricity Infrastructure Costs While Ability To Pay For Service Diminishes, Resulting In Increasing Difficulties For Existing Electricity Service Providers To Recover The Cost Of Investments In Electrification Expansion.In 2022, The National Electrification Policy (Nelp) Was Approved, Articulating Government Of The Republic Of Namibia (Grn) Support For Electrification Expansion And Confirming The Goal Of Achieving Universal Access To Electricity By Employing A Combination Of Grid And Off-Grid Technology Solutions To Power Households And Businesses. The Results From 2022 Geospatial Least Cost Electrification Plan (Glcep) Study Indicated That Achieving Universal Access By 2030 Will Require Providing Electricity Services To Approximately 432,000 Existing And Future Households, Of Which Approximately 80% Will Be Connected Via A Grid Densification Or Grid Expansion Method, While The Remaining 20% Will Need To Be Accommodated Via Off-Grid Solutions. This Program Of Grid And Off-Grid Investment Was Estimated To Come At An Approximate Cost Of N$ 13.4 Billion. However, Due To Multiple Challenges To Electrification Access Including Financing, Human Resource And Limitations Of Off-Grid Service Provider Capacity, Among Others, This Original Target Was Not Achievable, And Mme Has Extended The Universal Access Target To Achieved By 2040 With A Mix Of Grid Expansion And Off-Grid Technologies. The National Electrification Funding Portfolio (Nelfp) Provides A Well-Defined Structure Through Which Conventional Electrification Projects Can Be Financed By The Grn With Contributions From General Financiers. The Role Of Nelfp Is To Aggregate In An Electrification Fund Electrification Funding From The Government, State-Owned Enterprises, And End-User Levies; Attract Private Capital To Co-Finance Electrification Efforts; To Leverage Grn Electrification By Attracting Dfi And Climate-Related Financing; And To Encourage Electrification Investments By Namibian Distribution Licensees By Co-Financing Electrification Projects To Render Project Costs Commercially Acceptable. In Addition To Providing Flexibility To Finance Off-Grid Electrification Requirements With Specialized Green Financing Mechanisms, There Will Also Very Likely Be A Need To Address Affordability Limitations For Low-Income Service Connections For New Grid Consumers. Options Include Setting Connection Fees At A Level That Reflects The Cost Of Registration Only, Capitalizing All Service Materials And Labor To Be Recovered Through Tariffs; Alternatively, Nelfp Resources Could Also Be Allocated For Service Connection Subsidies To Be Allocated To Qualifying, Low-Income Households In Coordination With The Reds, Nampower And Other Service Providers. The Electrification Fund Manager Will Design And Manage Co-Financing Mechanisms, Incentive Programs And Subsidy Programs To Address Affordability Issues, While Concurrently Coordinating With The Regulator Electricity Control Board (Ecb) To Determine How Co-Financing Will Be Recognized In The Ecb Tariff Setting Process.The World Bank Is Supporting The GovernmentS Target To Achieve Universal Access By 2040 Through A Suite Of Intertwined Analytical Work Comprising A Geospatial Least Cost Electrification Plan (Glcep) And A National Electrification Strategy (Nes) To Evaluate The Technologies, Costs And Means By Which Namibia Can Reach This Objective. The World Bank Is Also Supporting The Government Of Namibia (Grn) To Conduct An Affordability Study To Establish The Energy Access Baseline (Including Both Access To Electricity And Clean Cooking Solutions) To Inform A Concrete Sustainable Electrification Business Model To Implement The Outcomes Of The Glcep And The Nes, Which Is Under Development. This World Bank Engagement Is Expected To Lead To An Energy Access Operation Under The Next Phase Of The Accelerating Sustainable And Clean Energy Access Transformation In Eastern And Southern Africa Multi-Phase Programmatic Approach Phase (Ascent Mpa) (P180547) To Contribute To Finance The National Electrification Fund Detailed Below.Objectives Of The Assignmentpillar Iv Of The Grn National Electrification Strategy Is To Establish The National Electrification Fund, The Role Of Which Is To Ensure That There Is Sufficient Financing Allocated To Achieve Access Targets In Accordance With The Nelfp. As Such, The World Bank Is Seeking The Assistance Of A Financial Advisor With Dual Expertise In Structured Finance And National Electrification Program Development To Inform And Support The BankS Ongoing Electrification Dialogue By Providing: (I) Review Of The Legal, Institutional And Regulatory Framework Related To The Electrification Sector And Establishment Of The Fund (Ii) The Construction Of The Preliminary Fund Portfolio With The Independent Structures For Grid And Off Grid Financing (Iii); The Design Of Off-Grid Co-Financing And Incentive Programs For Private Sector Participation; (Iv) The Development Of Capital Mobilization Strategy And Construction Of Fund Cash Waterfall Based On Investor Risk Appetite And Various Sector Scenarios; (V) Support To Operationalization Of The National Electrification Fund By Mme. The Envisaged Consultancy Will Also Cover The Provision Of Just-In-Time Advisory And Market Analysis Support To Expand The Knowledge Frameworks And Models For Scaling Up Electrification In Namibia, Leveraging Private Sector To The Extent Possible. Scope Of Worktask 1: Review Of The Legal, Institutional And Regulatory Framework Related To The Electrification Sector And Establishment Of The Fund.Task 2: Construction Of The Preliminary Fund Portfolio With The Independent Structures For Grid And Off Grid Financing.Task 3: Design Off-Grid Co-Financing And Incentive Programs For Private Sector Participation.Task 4: Development Of Capital Mobilization Strategy And Construction Of The Fund Cash Waterfall Based On The Investor Risk Appetite And Various Sector Scenarios.Task 5: Support Operationalization Of The National Electrification Fund By Mme. Tender Link : Https://Wbgeprocure-Rfxnow.Worldbank.Org/Rfxnow/Public/Advertisement/4508/View.Html

Contact Information