T h e A f r i c A n D e v e l o p m e n T B A n k

No 2 July-December 2012

Publication of the Energy Environment and Climate Change Department (ONEC) AfDB

The AfDb AND cIF For A clImATe-SmArT AFrIcA

Financing change

Acronyms 2

Foreword 3

Introduction The Climate Investment Funds in Africa 4

CIF In Africa At A Glance 8

CIF Operations In Africa Renewables Resilience Forests 12

Moving the CIF Forward A Multi-Front Approach 22

Looking Ahead 26

AfDB CIF Operational Pipeline 27

Brokering Climate Knowledge in Africa inside back cover

In thIs edItIon

The African Development Bankrsquos Energy Environment and Climate Change Department (ONEC) produces this report every six months as part of its leadership at AfDB to support Africarsquos move toward climate-resilient and low-carbon development The report highlights ONECrsquos work to expand Africarsquos access to climate financing through the Climate Investment Funds (CIF) and AfDBrsquos support for Africarsquos transformations in clean technology sustainable management of forests increased energy access through renewable energy and climate-resilient development

T h e A f r i c A n D e v e l o p m e n T B A n k

Publication of the Energy Environment and Climate Change Department (ONEC) AfDB

The AfDb AND cIF For A clImATe-SmArT AFrIcA

Financing change

cover Kenya Menengai Geothermal Project copy Africa Express

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ACROnyMs AnD ABBRevIATIOns

AAA Highest bond rating based on credit qualityADB Asian Development BankAfDB African Development BankCC DPOs Climate Change Development

Policy OperationsCIF Climate Investment FundsCO2 Carbon DioxideCSP Concentrated Solar PowerCTF Clean Technology FundDPOs Development Policy OperationsEBRD European Bank for Reconstruction

and DevelopmentEskom South Africa electricity utilityFIP Forest Investment ProgramGDC Geothermal Development Company KenyaGDP Gross Domestic ProductGHG Greenhouse gasGW GigawattHa HectareIDB Inter-American Development BankIFC International Finance Corporation

(part of the WBG)IPP Independent Power ProducerkWh Kilowatt-hourMampE Monitoring amp EvaluationMASEN Moroccan Agency for Solar EnergyMDB Multilateral development bankMENA Middle East and North AfricaMtC Million tonnes carbonMW MegawattONE Office National drsquoElectriciteacute MoroccoONEC Energy Environment and Climate Change

Department AfDBORQR Quality Assurance and Results

Department AfDBPPCR Pilot Program for Climate ResiliencePPP Public-private partnershipPV PhotovoltaicREDD+ Reducing emissions from deforestation and

forest degradation combined with sustainable forest management and protection of carbon stocks

SCF Strategic Climate FundSREP Program for Scaling Up Renewable Energy

in Low Income CountriesUSD United States dollarWB World BankWBG World Bank Group including IFC

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3finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 3

The momentum in Africa is quickening toward building societies based on sustainable energy resilient rural coastal and forest landscapes and globally scalable knowledge on low-carbon and climate-resilient solutions

To spur this momentum the African Development Bank (AfDB) and the Climate Investment Funds (CIF) are partnering with countries north to south from middle-income countries to those most vulnerable and fragile to invest in effective climate strategies AfDB is channeling nearly $450 million of CIF funds and adding more than a billion of its own money to make this happen and plans to do even more in the short-term

Over the last six months the AfDB has pushed through approval of a significant batch of climate-friendly projects ramping up early action on the ground in Kenya Morocco Mozambique Niger and South Africa In addition the AfDB and CIF have paved the way for investment to begin in Burkina Faso and Ghana to transform their socio-economically critical forest sectors

With AfDB and CIF support these countries are making bold moves

Kenya is one of the worldrsquos first nations to shift its energy mix to include first-ever geothermal as a primary energy driver

Morocco is one of the first countries to combine wind and solar as primary energy sources at the national scale

South Africa is creating Sub-Saharan Africarsquos first Concentrated Solar Power (CSP) plant complementing the five-nation CSP program slated for the Middle East and North Africa and opening important doors for private sector engagement

Mozambique and Niger are setting path-breaking resilience examples by transforming themselves at the nexus of climate change rural poverty food security and landscape management reducing their national poverty rates as they sustainably increase crop production and empower rural citizens particularly women

What will success in these projects look like We anticipate more than 1 million new households and businesses with access to sustainable power nearly 50000 hectares of land dedicated to climate resilience a substantial drop in national poverty rates more than 6 million tons of carbon dioxide (CO2) emissions to be avoided every year and 2000 megawatts of new renewable installed capacity transforming the energy map of Africa

The AfDB is a proud partner of the CIF committed to its philosophy of relevant climate action complementary financing and broad stakeholder engagement and is offering its AAA bond rating and close relationship as a trusted finance partner to countries to complement the CIFrsquos vision But we know that with these bold and innovative programs also come significant risks particularly in countries already struggling to raise their heads above poverty and extreme climate vulnerability We see one of our most important contributions to lie in the capacity to ensure against risk buffer against the lack of adequate funds engage stakeholders broadly help sweeten the pot for the private sector and help countries create the policy and institutional capacity to keep the momentum alive

Even as the global climate finance architecture gets revised and revitalized the AfDB looks forward to supporting CIF pilot countries at the operational level for its full CIF portfolio As part of this we are committed to maintaining a high-level project approval rate a strong disbursement rate as countries become ready to receive their promised funds and a diligent monitoring and measurement of final results This report tells the story of the last six months of CIFAfDB work in Africa with the operational momentum well underway and we hope that you find it informative and compelling

FORewORDAfriCA is rEshApiNg iTsElf

Mafalda DuarteCIF Coordinator Energy Environment and Climate Change Department (ONEC) AfDB

About the cIF

Established in 2008 as one of the largest fast-tracked climate financing instruments in the world the $76 billion CIF gives developing countries worldwide an urgently needed jump-start toward achieving low-carbon and climate-resilient development The CIF provides developing countries with grants concessional loans risk mitigation instruments and equity that leverage significant financing from the private sector multilateral development banks (MDBs) and other sources Five MDBsmdashthe African Development Bank (AfDB) Asian Development Bank (ADB) European Bank for Reconstruction and Development (EBRD) Inter-American Development Bank (IDB) and World Bank Group (WBG)mdashimplement CIF-funded projects and programs

With the cIF the African Development bank is a Voice for a Sustainable Africa

The AfDB serves as an implementing agency of the $76 billion Climate Investment Funds (CIF) and is expected to channel $1 billion mdash more than a third of all CIF investment in Africa mdash to 17 African nations with the AfDB Energy Environment and Climate Change Department (ONEC) leading the institutional charge

This semi-annual report highlights ONECrsquos work implementing the CIF in Africa in the period from July to December 2012 to support transformations in clean technology sustainable management of forests increased energy access through renewable energy and climate-resilient development In particular the report looks at the approved projects now underway and reflects on early operations including intended project outcomes additionality and transformational potential and alignment of the work with the CIF objectives and with country development goals

ThE ClimATE iNvEsTmENT fuNDs iN AfriCASEmI-ANNuAl rEpOrT FrOm ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AFrICAN DEvElOpmENT BANk

July-DECEmBEr 2012

highlighTs

mozambique ppCr ldquoThe CIF-supported plan is transforming our society Increasing political attention to climate change issues creating programmatic policy and institution reforms to support transformation to climate resilience and increasing common understanding that cross-sector coordination is needed to implement climate change activities across the countryrdquo

[pilot countries meeting report]

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puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 54

Climate Investment Funds $76 billion Clean TeChnology Fund (CTF) STraTegiC ClimaTe Fund (SCF)

CTF worldwide $52 billion CTF in Africa $19 billion AfDB channeling $757 million

SCF worldwide $24 billion SCF in Africa $615 million AfDB channeling $250 million

Demonstrate deploy and transfer of low-carbon technologies for low GHG emissions development

Targeted programs to pilot new approaches to initiate transformation with potential for scaling up climate resilience

Renewables energy efficiency urban transport commercialization of sustainable energy finance

PiloT Program For ClimaTe reSilienCe (PPCr)$13 billion

ForeST inveSTmenT Program (FiP)$639 million

SCaling-uP renewable energy Program (SreP) $505 million

Mainstream resilience in development planning

Reduce emissions from deforestation and forest degradation

Create economic opportunity increase energy access through renewables

Egypt Morocco Nigeria South Africa and MENA Region (Algeria Egypt Jordan Morocco and Tunisia)

Mozambique Niger and Zambia

DR Congo Burkina Faso and Ghana

Ethiopia Mali Kenya Tanzania and Liberia

The CIF endorses the BurkinA fAso FIp Investment plan for $30 million to support participatory management and protection of state forest reserves

The CIF endorses the ghAnA FIp Investment plan for $50 million to arrest deforestation and degradation and put rEDD+ in a wider context

AfDB approves the mozAmBique Baixo limpopo Climate resilient Agriculture program under ppCr for $158 million and adds $25 million in co-finAncing

AfDB approves the mozAmBique Sustainable land and Water management project for $158 million and adds $3 million in co-finAncing

AfDB approves the niger Water resource management and Development project for $22 million

AfDB approves the niger project for the Improvement of Climate Forecasting Systems and Operationalization of Early Warning Systems for $13 million

CTF approves nigeriArsquos Abuja mass Transit project as part of a second phase of CTF funding

ThE AfDB AND Cif BuIlDINg mOmENTum FOr ChANgE IN AFrICA

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 76

renewable energy field and inspire investor confidence In Morocco the $125 million CTF wind power project is expected to leverage an additional $224 billion Kenyarsquos Menengai geothermal project which will help avoid close to 2 million tons of CO2 a year once power is generated from steam includes design of a public-private partnership (PPP) to effectively crowd in private sector participation making Kenya a preferred destination for investors

The AfDb and cIF are helping break down barriers to change

Nigerrsquos PPCR for $110 million focuses on key constraints to mainstreaming climate change in national planning and budgeting by providing hydro meteorological data strengthening the national climate observatory system and piloting a weather index-based crop insurance scheme

The AfDb and cIF are helping build multi-sectoral synergies

In Burkina Faso the $30 million FIP plan is designed to ensure synergies with agriculture livestock and environment sectors and specifically calls for capacity building for the private forestry sector indigenous peoples and local communities In Mozambique PPCR funding is being used to intensify agricultural production and improve 8000 farm familiesrsquo lives with climate-proofed seeds weatherizing rural roads irrigation systems and access to markets

The AfDb and cIF are turning potential into reality

SREP funding of $25 million to Kenyarsquos 400 MW Menengai geothermal project is being injected early to accelerate initial project activities that typically stagnate due to financing and geothermal resource risks It will help prove the resource capacity at Menengai the second geothermal field to be developed of 14 identified along the Rift Valley

The AfDb and cIF are sharing knowledge and lessons learned

The AfDB and CIF pilot countries in Africa are learning from experience about climate-smart technologies processes institutions and policies that can help reshape their future These practical lessons are feeding into the global knowledge pool on climate change and informing key climate decision-makers

The AfDb and cIF are helping countries put plans into action

With AfDBrsquos approval eight projects are now funded and underway in Africa under the CTF PPCR and SREP Under CTF three projects are operational in South Africa and Morocco to advance wind and Concentrated Solar Power (CSP) for a total of CTF $325 million Under the PPCR three land and water management projects are underway in Mozambique and Niger for a total of PPCR $535 million and $29 million of AfDB resources and a fourth project to improve climate forecasting is underway for PPCR $13 million to build climate resilience Under the SREP Africa claims the only SREP project underway with SREP $25 million and AfDBrsquos $120 million Kenya Menengai Geothermal Project serving as a showcase of a transformative renewables application in a low-income country

The AfDb and cIF are helping innovative technologies reshape the energy landscape

The MENA regionrsquos CTF investment plan is designed to create a global first building CSP programs in Algeria Egypt Jordan Morocco and Tunisia to support deployment of about 1 gigawatt (GW) of generation capacity tripling worldwide capacity supporting the regionrsquos transmission infrastructure and enabling CSP scale-up through regional market integration The program will leverage public and private investments for CSP power plants and other related projects for more than $485 billion Today under the changing

ldquowe have two challenges fighting global

poverty and fighting climate change

Fail the one fail the otherrdquo

Dr Donald KaberukaPresident African Development Bank Group

circumstances in Europe and North Africa a strategic review of the program is underway to examine how best to still achieve the initial intended outcomes

The AfDb and cIF are helping low-income countries revamp their energy mix

In Ethiopia the $20 million Assela SREP-funded wind project is designed to prove that wind power can be affordable and sustainable and in Tanzania options are being considered to tap into the countryrsquos geothermal potential and provide critical energy to off-grid rural areas where most people have no access to modern energy services

The AfDb and cIF are helping open doors for investors

Through the CIF AfDB helps countries design plans that attract significant levels of co-financing in the burgeoning

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CLEAN TECHNOLOGY FUND (CTF)

PILOT PROGRAMFOR CLIMATE RESILIENCE (PPCR)

FOREST INVESTMENT PROGRAM (FIP)

SCALING UP RENEWABLE ENERGYIN LOW INCOME COUNTRIES (SREP)

At A GlanceCIF IN AFRICA

NIGER

MOZAMBIQUE AND NIGER POVERTY INDICATORS

Current Rate Impact of CIF project

KENYAMENENGAI GEOTHERMAL

APPROVED PROJECTSAS OF DECEMBER 2012

MOZAMBIQUESUSTAINABLE LAND AND WATER MANAGEMENT

NIGERWATER RESOURCE MANAGEMENT AND DEVELOPMENT

NIGERIMPROVEMENT OF CLIMATE FORECASTING AND EARLY WARNING SYSTEMS

MOROCCOOUARZAZATE I CONCENTRATED SOLAR POWER

MOROCCOONE WIND ENERGY

SOUTH AFRICA ESKOM RENEWABLES SUPPORT PROJECT

MOZAMBIQUEBAIXO LIMPOPO CLIMATE RESILIENT AGRICULTURE

69 millionTONNES OF CO2 EMISSIONS

AVOIDED EVERYYEAR

MOZAMBIQUE

HOUSEHOLDS + BUSINESSES GET

13 million

TO POWER NEW ACCESS

NEWLY DEDICATED TO CLIMATE RESILIENT ACTIVITIES

41800 HECTARESOF LAND

INSTALLED CAPACITY

2000 MW OF RENEWABLE ENERGY

150000 FEMALE FARMERS

50000 VILLAGES

3000

FARMERS GAIN ACCESSTO CLIMATE INFORMATION INCLUDING

SOME EXPECTED RESULTS FROM APPROVED PROJECTS 55

42

66

52

AND

$420 million

AfDB

CIF

$11 billion

Arresting deforestation

degradation put REDD+ in wider

context

Supporting renewables

Menengai geothermal

Expanding on- and off-grid

renewables

Integrating geothermal wind in national power system

Promoting wind solar urban transport Gulf of

Suez wind farm

Supporting REDD+ addressing deforestation

Strengthening early warning systems farmersrsquo adaptation

Supporting national power sector rural electrification

Supporting large-scale solar wind promoting

private sector investments

Promoting renewables energy

efficiency urban transport

Supporting sustainable land water agricultural

resilience

Promoting renewable energy in countryrsquos electricity portfolio

wind power energy conservation

Accelerating global CSP Algeria Egypt

Jordan Morocco Tunisia

Expanding solar PV mini-hydro bio-fuel

technologies

Fighting desert encroachment

drought sustainable land management

updating weather and climate information

Promoting sustainable forest management protection of state forests

BURKINA FASO

AfDB $125M

FIP $30M

ZAMBIA

AfDB $37MPPCR $86M

TANZANIA

SREP $50M

SOU

TH

AFR

ICA

AfD

B $1

00M

CTF $

500M

NIG

ER

IA

AfD

B $1

00M

CTF

$25

0M

NIG

ER

AfD

B $4

0MPP

CR

$115

M

MOZAMBI

QUE

AfDB $

32M

PPCR $86M

MOROCCOAfDB $125M

CTF $150M

MENA REGION

AfDB $300M

CTF $750M

MALI

AfDB $29M SREP $50M

LIBERIA

SREP $50M

KEN

YAAfDB $25M

AfD

B $10MSREP $50M

GH

AN

A

FIP $50M

ET

HIO

PIA

AfD

B $23MSREP $50

MEGYPTAfDB $50M

CTF $300M

DR CONGOAfDB $23M

FIP $60M

CIF IN AFRICA $25 billion

OF WHICH AfDB WILL CHANNEL

$1 billion

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 98

finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 11

EXAMPLES OF COUNTRY TRANSFORMATION FROM APPROVED PROJECTS

AFDBrsquoS CIF PORTFOLIO

DISBURSEMENT PROFILE AfDBrsquoS CTF APPROVED PROJECTS(DEC 2012)

0

50

100

150

200

250

300

350

End of 2017

End of 2016

End of 2015

End of 2014

$ million

APPROVAL RATE ()

PPCR NIGERANNUAL AGRICULTURAL PRODUCTION

PPCR NIGERCAPACITY BUILDING ACTIONS FOR WOMEN

SREP KENYAGEOTHERMAL POWER GENERATION CAPACITY

SREP KENYACO2 EMISSIONS

0

20

40

60

80

100

201420132012

SREPFIPPPCR

CTF

APPROVALS ($ MILLION) LEVERAGE RATIOS

0

20

5

10

15

OthersAfDB

PPCRPPCR

CTF0

100

200

300

400

500

600

700

201420132012

SREPFIP

PPCRCTF

Per

cent

age

of w

omen

0

10

20

30

40

50Tree planting

Water and soil conservation works

Group supervision

Agricultural extension

Warehouses

Developed land

Market gardening0

500

1000

1500

2000

2500 Irrigated season 2017

Rainy season 2017

Benchmark

Annual agricultural production (tonnes)

CTF MOROCCOINSTALLED CAPACITY OF POWER GENERATION

0

5

10

15

20

25

30

Y2020Y2015Y2009

Wind Solar

Hydro 0

100

200

300

400

500

600

Y2018Y2010

Geothermal power in the country in MW4

6

8

10

12

CO2 emissions Million Tonnes

Y2020Y2018Y2010

10 puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB

in Five of these countries

The AfDB Is Cif pArTNEr TO

aFrican nations 17eight from middle-income economies to fragile states

projects are underway

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Africarsquos reserves of renewable energy

resources are the highest in the world

half of the top 35 countries mdash ranked

by total renewable energy reserves mdash

are African countries

Youssef Arfaoui wind energy in Africa A sustainable Business

TrANsfOrmiNg ENErgY sErviCEs WIND SOlAr gEOThErmAl

purpose To generate 120-160 mW in first phase by

2014 and 500 mW in total

TrAnsformATionAl BenefiT mitigating climate change and supporting national economy export of energy to Europe

key expecTeD resulTs 240000 Tons of co2 emissions AvoiDeD per yeAr shifTeD energy mix

CTF mOrOCCO OuArzAzATE I CONCENTrATED SOlAr pOWEr prOJECT

AT A glAnce

finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 1312 puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB

CIF OPeRATIOns AT wORK In AFRICA rENEwABlEs rEsiliENCE fOrEsTs

creating the Worldrsquos largest concentrated Solar Power Plant

cTF morocco ouArzAzATe I coNceNTrATeD SolAr PoWer ProJecTApproved by AfDB May 2012 CTF $100 million + AfDB $240 million

Description By 2020 Morocco intends to generate 42 of its energy capacity from renewable resources including deployment of 2000 megawatts (MW) of solar power The $13 billion CSP plant project at Ouarzazate marks an important step in that plan being designed to generate 120-160 MW in its first phase by 2014 and 500 MW in total making it the largest CSP plant in world Ouarzazate I will help Morocco avoid 240000 tons of CO2 emissions a year The projectrsquos first phase will develop a parabolic trough plant through a public-private partnership (PPP) between the Moroccan Agency for Solar Energy (MASEN) and a private partner

Impact The CTF and co-financing resources enhance the projectrsquos financial viability reducing the cost of investment and bringing down the kilowatt-hour (kWh) tariff The project is expected to have a transformative effect on Morocco the MENA region and Europe and is a major step

towards Moroccorsquos strategy to diversify its energy sources help curb GHG emissions and create a local industry capable of providing locally manufactured inputs to the solar energy program

Consistent with CTF core indicators results are expected to include

Trade balance improved Creation of 800 jobs between 2012 and 2014 Solar power station operational energy storage

mechanism created Increase in the share of renewable energies in

Moroccorsquos energy supply by 2020

Moroccorsquos energy balance is dominated by imported fossil fuels To shift this balance the government strategy focuses on energy security affordable energy for all energy demand management and environmental protection and climate change mitigation

As the AfDB-supported CIF portfolio of projects has evolved over the past year the first batch of eight approved projects in five countries has gotten underway and set the stage to have a transformational impact on key sectors of African economic life Principal sectors in the eight projects cut across low-carbon development and climate resilience energy access distribution and development of new energy technologies water resource management land management and climate-resilient agriculture climate forecasting and early warning systems

The five countries that have gotten projects underway are now at work on a number of levels

development of new markets and critical investment partners

inter-ministerial cooperation and engagement of key stakeholders

community-level participation including a focus on women

multi-sectoral impact alignment with national priorities and

development policies development of results frameworks and measurement

of impacts

Each of the projects is detailed below to examine its activities additionality transformational potential and expected development impacts In addition two countries mdash Burkina Faso and Ghana mdash have been endorsed for FIP investment plans and projects will come forward for approval over the coming months

All of these projects help demonstrate how AfDB investments through CIF are helping African nations achieve climate-smart development

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Africarsquos reserves of renewable energy

resources are the highest in the world

half of the top 35 countries mdash ranked

by total renewable energy reserves mdash

are African countries

Youssef Arfaoui wind energy in Africa A sustainable Business

TrANsfOrmiNg ENErgY sErviCEs WIND SOlAr gEOThErmAl

purpose To generate 120-160 mW in first phase by

2014 and 500 mW in total

TrAnsformATionAl BenefiT mitigating climate change and supporting national economy export of energy to Europe

key expecTeD resulTs 240000 Tons of co2 emissions AvoiDeD per yeAr shifTeD energy mix

CTF mOrOCCO OuArzAzATE I CONCENTrATED SOlAr pOWEr prOJECT

AT A glAnce

finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 1312 puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB

CIF OPeRATIOns AT wORK In AFRICA rENEwABlEs rEsiliENCE fOrEsTs

creating the Worldrsquos largest concentrated Solar Power Plant

cTF morocco ouArzAzATe I coNceNTrATeD SolAr PoWer ProJecTApproved by AfDB May 2012 CTF $100 million + AfDB $240 million

Description By 2020 Morocco intends to generate 42 of its energy capacity from renewable resources including deployment of 2000 megawatts (MW) of solar power The $13 billion CSP plant project at Ouarzazate marks an important step in that plan being designed to generate 120-160 MW in its first phase by 2014 and 500 MW in total making it the largest CSP plant in world Ouarzazate I will help Morocco avoid 240000 tons of CO2 emissions a year The projectrsquos first phase will develop a parabolic trough plant through a public-private partnership (PPP) between the Moroccan Agency for Solar Energy (MASEN) and a private partner

Impact The CTF and co-financing resources enhance the projectrsquos financial viability reducing the cost of investment and bringing down the kilowatt-hour (kWh) tariff The project is expected to have a transformative effect on Morocco the MENA region and Europe and is a major step

towards Moroccorsquos strategy to diversify its energy sources help curb GHG emissions and create a local industry capable of providing locally manufactured inputs to the solar energy program

Consistent with CTF core indicators results are expected to include

Trade balance improved Creation of 800 jobs between 2012 and 2014 Solar power station operational energy storage

mechanism created Increase in the share of renewable energies in

Moroccorsquos energy supply by 2020

Moroccorsquos energy balance is dominated by imported fossil fuels To shift this balance the government strategy focuses on energy security affordable energy for all energy demand management and environmental protection and climate change mitigation

As the AfDB-supported CIF portfolio of projects has evolved over the past year the first batch of eight approved projects in five countries has gotten underway and set the stage to have a transformational impact on key sectors of African economic life Principal sectors in the eight projects cut across low-carbon development and climate resilience energy access distribution and development of new energy technologies water resource management land management and climate-resilient agriculture climate forecasting and early warning systems

The five countries that have gotten projects underway are now at work on a number of levels

development of new markets and critical investment partners

inter-ministerial cooperation and engagement of key stakeholders

community-level participation including a focus on women

multi-sectoral impact alignment with national priorities and

development policies development of results frameworks and measurement

of impacts

Each of the projects is detailed below to examine its activities additionality transformational potential and expected development impacts In addition two countries mdash Burkina Faso and Ghana mdash have been endorsed for FIP investment plans and projects will come forward for approval over the coming months

All of these projects help demonstrate how AfDB investments through CIF are helping African nations achieve climate-smart development

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purpose To introduce CSp to Sub-Saharan Africa and scaled-up wind energy to South Africa

TrAnsformATionAl BenefiT path-breaking regional use of CSp and utility-scale wind new models for private sector partnership

key expecTeD resulTs 05 million Tons co2 emissions AvoiDeD through wind per year 045 million Tons AvoiDeD through csp

CTF SOuTh AFrICA ESkOm rENEWABlES SuppOrT prOJECT

AT A glAnce

CTF mOrOCCO ONE WIND ENErgy prOJECT

AT A glAncepurpose To construct three wind farms of 100-300 mW installed capacity and two hydro facilities to supply base-load power

TrAnsformATionAl BenefiT Commercializing wind energy at a larger scale

key expecTeD resulTs Additional 550mW of WinD insTAlleD cApAciTy and hybrid-hydro storage and generation of 520 mW 533000 neW connecTions

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 1514

commercializing Scaled-up Wind energy

cTF morocco oNe WIND eNergy ProJecT Approved by AfDB June 2012 CTF $125 million + AfDB $448 million

Description As a country rich in wind resources Morocco is expanding its wind sector through the ONE Wind Energy Project creating an integrated renewable energy generation system to make the countryrsquos electricity supply more reliable Three wind farms of 100-300 MW installed capacity will be constructed tendered as PPPs or Independent Power Producers (IPPs) and two hydro facilities will supply base-load power The project will help the country reach installation of 2000 MW by 2020 The project also features a rural electrification component to connect 25 provinces to the grid including nearly 86000 households bringing the countryrsquos access rate to 100 Moroccorsquos public utility Office National de lrsquoEacutelectriciteacute (ONE) is overseeing the project

impact The project is set to leverage an estimated $216 billion a leveraging factor of 14 The CTF financing makes the cost per kWh of wind competitive and brings the projectrsquos viability up to an internal rate of return of 11 the threshold IRR for investors in Morocco The project will also create a significant amount of green jobs with about 700 permanent and 4200 construction jobs The CTF investment will expose ONE to greater expertise in PPPs and provide conditions for attracting the private sector in the future signaling that the government is committed to the viability of the wind farms The investments in water storage and pumping will help stabilize the grid and allow for environmentally friendly and affordable storage of wind-generated energy

Powering the grid With geothermal Steam

SreP KeNyA meNeNgAI geoThermAl DeVeloPmeNT ProJecTApproved by AfDB December 2011 SREP $25 million + AfDB $120 million

Description The Menengai Geothermal Development Project is in the eastern sector of the African Rift system 180 km northwest of Nairobi The project is developing the Menengai geothermal steam field to produce enough steam for 400 MW power that will be generated by the private sector as IPPs The Menengai geothermal field the first being developed solely by Kenyarsquos Geothermal Development Company (GDC) will help GDC design and test an investment and project structure that could be replicated for other fields

impact The project will help remove barriers such as exploration and drilling risks to establish an enabling

Kenya envisions transforming itself into a newly-industrializing middle-income country by 2030 with a globally competitive and prosperous

economy and high quality of life in a clean and secure environment with sustainable energy as a

keystone of its vision

environment for private sector participation in developing Kenyarsquos full geothermal potential The relatively low-cost geothermal energy is likely to make Kenya a preferred destination for investors increasing fiscal revenue ramping up the rate of access to electricity and creating reliable base load capacity The project will help avoid close to 2 million tons of CO2 per year The project will transform the countryrsquos base source of electricity from drought-sensitive hydropower to geothermal power dramatically increasing the ratio of contribution from renewable energy sources to the national grid and translating into lower electricity tariffs

lighting South Africa With Wind and Sun

cTF SouTh AFrIcA eSKom reNeWAbleS SuPPorT ProJecTApproved by AfDB May 2011 for CTF $100 million + $260 million AfDB

Description South Africa as a growing middle-income country has had one of the most carbon intensive economies

SrEp kENyA mENENgAI gEOThErmAl DEvElOpmENT prOJECT

AT A glAncepurpose To develop the menengai geothermal steam field to produce enough steam for 400 mW power

TrAnsformATionAl BenefiT lower electricity tariffs infrastructure development improved food security

key expecTeD resulTs 2 million Tons of co2 emissions AvoiDeD per year connecTing 500000 households and 300000 small businesses

in the world with up to 90 of its electricity derived from fossil fuels To transform this scenario the country intends to reduce growth in emissions to 34 below current levels by 2020 and 42 by 2025 and shift its energy mix to include renewables gradually increasing the weight of clean energy to 42 by 2030 This flagship project introduces CSP to Sub-Saharan Africa and the first utility-scale wind power plant to South Africa by helping South Africarsquos electricity utility Eskom fund a 100MW concentrated solar power plant at Upington and a 100MW Sere wind farm in the Western Cape

impact Emission savings are estimated at about 05 million tons CO2 emissions avoided through wind per year 045 million tons avoided through CSP In addition to the tremendous environmental benefits the project will have a positive impact on job creation The project supports South Africarsquos leadership in demonstrating the viability of large-scale renewable generation driving the renewables industry and the private sector toward further investment in Africa

south africa plans to shift its energy mix to include renewables increasing the weight of clean energy to 42 by 2030 this flagship project introduces Concentrated solar Power to sub-saharan Africa and the first utility-scale wind power plant to south Africa

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ldquoIn 2000 mozambique experienced its worst floods in 50 years killing about 800 people and displacing 540000 costing the country 10 percent of its gDp looking to the future our analysis suggests that almost 1 million people will be displaced from coastal areas in 30 years from now if no action is taken Behind these figures will lay human suffering on an unimaginable scalerdquo

mrs Ana ChichavaDeputy Minister Ministry for Coordination of environmental Affairs

purpose To provide climate resilient infrastructure for increased agricultural productivity

TrAnsformATionAl BenefiT Increased agricultural and fisheries production 8200 farm families (40000 individual beneficiaries) benefit of which 52 are women

key expecTeD resulTs increAse national rice and vegeTABle proDucTion by 2016 increAse incomes 150 in project area by 2017 reDuce national poverTy rATe To 42

ppCr mOzAmBIquE BAIxO lImpOpO IrrIgATION AND ClImATE rESIlIENCE prOJECT

AT A glAnce

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 1716

rESIlIENCE ThrOugh SuSTAINABlE lAND AND WATEr mANAgEmENT ClImATE FOrECASTINg

purpose To promote climate-resilient livelihoods through community-based watershedlandscape management approaches

TrAnsformATionAl BenefiT local communitiesrsquo increased capacity to manage their natural resources with 20000 direct and 20000 indirect beneficiaries

key expecTeD resulTs 1500 hA foresT resToreD foresT fires reDuceD By 75

ppCr mOzAmBIquE SuSTAINABlE lAND AND WATEr rESOurCES mANAgEmENT

AT A glAnceSustaining A resilient landscape

PPcr mozAmbIque SuSTAINAble lAND AND WATer reSourceS mANAgemeNT Approved by AfDB October 2012 PPCR $16 million + AfDB $3 million

Description The project designed to address the inter-linked challenges of climate change rural poverty food insecurity and landscape degradation will promote climate-resilient livelihoods through community-based watershedlandscape management approaches In addition the project will establish a sustainable community-based water harvesting program in Gaza Province Conservation and restoration of natural habitats prevention of forest fires introduction of more efficient practices of using natural resources and diversification of activities will result in increased resilience in the natural and social systems The livelihood enhancement activities offer additional sources of income The project which is closely linked to the countryrsquos National Adaptation Program of Action will positively impact an estimated 20000 direct beneficiaries and 20000 indirect beneficiaries

Mozambique is the third most exposed African country to climate change impacts because of frequent droughts floods and cyclones affecting more than half the countryrsquos population

Livelihood diversification measured through an increase in community nurseries and modern livestock facilities

Increase in community irrigation schemes to 550 ha by 2016

Increase in land use planning frameworks by 2016 Increase in community nurseries for indigenous species

from 3 to 16 Increase in people trained in sustainable water and

forest management to 12 by 2016 half of whom will be women

building resilience From Seed To market

PPcr mozAmbIque bAIxo lImPoPo IrrIgATIoN AND clImATe reSIlIeNce ProJecTApproved by AfDB September 2012 PPCR $16 million + AfDB $25 million

Description The project is designed to contribute toward poverty reduction by creating climate resilient infrastructure for increased agricultural productivity supporting development of 3050 ha for cash crops along with marketing and agro-processing facilities Around 8200 farm families will directly and indirectly benefit more than half of the beneficiaries are women The project will provide employment and improved marketing for these subsistence farmers Intensified agricultural production improved rural roads and access to markets will enhance food security alleviate poverty and help farmers cope with climate related events New

approaches will include introducing climate resilient seeds contracting service providers to link farmers with markets and agro-processing at farm level by farmer and womenrsquos groups

impact Consistent with PPCR core indicators expected results include

Increase in average incomes by 150 by 2017 Increase in marketing infrastructure and

agro-processing facilities by 2017 Increase in climate resilient irrigation and drainage

infrastructure to 1050 ha rice and 2000 ha vegetables by 2017

Drop the national poverty rate from 55 to 42 by 2014

impact Consistent with PPCR core indicators examples of expected results are

Increased crop yield to 25-4 tonhectares (ha) particularly maize and rice

1500 ha of forest restored and 75 decrease in forest fires

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purpose To improve resilience in rural communities dependent on rain-fed farming

TrAnsformATionAl BenefiT Sustainable water resources soil management and adoption of resilient techniques technologies and improved seeds 708600 beneficiaries of whom more than 50 are women

key expecTeD resulTs reDuceD rurAl poverTy from 66 To 52 increAseD annual AgriculTurAl proDucTion to 2860 Tons per year by 2017

ppCr NIgEr WATEr rESOurCE mANAgEmENT AND DEvElOpmENT prOJECT

AT A glAnce

purpose To build capacity in climate data processing prepare a vulnerability map of agro-pastoral activities and scale up the national early warning system

TrAnsformATionAl BenefiT mainstreamed climate information in development actions

key expecTeD resulTs Strengthened food security 10 reDucTion in AnnuAl crop losses

ppCr NIgEr prOJECT FOr ThE ImprOvEmENT OF ClImATE FOrECASTINg SySTEmS AND OpErATIONAlIzATION OF EArly WArNINg SySTEmS

AT A glAnce

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 1918

resilience From the ground up

PPcr NIger WATer reSource mANAgemeNT AND DeVeloPmeNT ProJecT Approved by AfDB September 2012 $220 million

Description In this predominantly rural nation rural dwellers who depend on rain-fed farming are in serious need of sustained measures to adapt to climate change This project is designed to improve these communitiesrsquo resilience working with farmersrsquo associations local communities technical services small and medium enterprises and local operators mdash around 708000 beneficiaries including 506 women The project aligns with the countryrsquos current strategies for rural development and agriculture integrated with national climate change strategies Irrigated crop diversification and intensification a central project feature stands as a priority measure for adaptation in the countryrsquos National Action Programme for Adaptation to Climate Variability and Change

impact Consistent with PPCR core indicators expected results include

Reduction of rural poverty from 66 to 52 by 2017 Increased annual agricultural production from 370 to 650

tonsyear in the rainy season

Protection of 500 additional Tropical Livestock Unityear by 2017

500 ha of water and land conservation works 300 ha of land for flood recession cultivation

1000 ha of tree plantations including 500 ha by 2014 Two resilient pastoral areas of 40000 ha developed

around two deep boreholes

Forecasting resilience

PPcr NIger ProJecT For The ImProVemeNT oF clImATe ForecASTINg SySTemS AND oPerATIoNAlIzATIoN oF eArly WArNINg SySTemS Approved by AfDB September 2012 $13 million

Description Nigerrsquos existing early warning system does not have a decision-making tool adapted to climate risks the country faces such as drought floods crop enemies climate-sensitive diseases and the like It is imperative for this climate-vulnerable country to establish a multi-hazard early warning system for climate change The project will mainstream climate information in development actions helping develop and disseminate climate scenarios and products to end users building capacity in climate data processing preparing a vulnerability map of agro-pastoral activities in the countryrsquos district councils and scaling up the early warning system to make it multi-hazard The project complements the PPCR Water Resource and Development Project ensuring that adequate climate information and the capacity to use it underlies the technical climate solutions for water and land management

impact Consistent with PPCR core indicators expected results include

Increased food security by lessening annual variation in cereal production

Increased application of climate information in at least half the district councils

Production of early warnings on floods drought sandstorms and extreme temperatures

Increase in number of producers using climate information by 5 or 65000 farmers

Seasonal and short-term forecasts updated regularly 80 community radios disseminating findings in

national languages Tool for assessment of vulnerability and map published

in 2016 National risk management platform operational in 2015 Early warning dissemination network covering all

networks in 2014

Over the past forty years niger has experienced episodes of drought with dramatic consequences on agro-pastoral production food security and socio-economic life niger is using PPCR to reduce the countryrsquos vulnerability to food shortages and other deleterious impacts

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purpose Transformation of economically significant forest sector through rEDD+ management land use planning

TrAnsformATionAl BenefiT Triple-win mitigation-adaptation-poverty reduction

key expecTeD resulTs innovATive lAnDscApe ApproAch insTiTuTeD

BurkINA FASO FIp INvESTmENT plAN

AT A glAnce

Across Africa thousands of farmers

have found that planting the right

tree species in the right places can

increase their crop yields

purpose To address underlying drivers of deforestation and create community engagement in rEDD+ and sustainable forest management

TrAnsformATionAl BenefiT Community participation enabled sustainable cocoa and agroforestry landscape systems in place community restoration of degraded forest

key expecTeD resulTs innovATive tenurial and effecTive cArBon righTs and BenefiT-shAring sysTems alternative livelihooD enhAncemenT development of local community capacity

ghANA FIp INvESTmENT plAN

AT A glAnce

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 2120

FOrESTS

Triple-Win Forest Solutions

burKINA FASoFIP Investment Plan endorsed by CIF November 2012 for $30 million

Description A land-locked country with a wide landscape of woodlands agricultural lands and forests Burkina Faso presents a unique opportunity for transforming its forest sector through a FIP-supported plan Today the sector makes a significant economic contribution of 56 to the countryrsquos GDP through revenues employment food security and health However with a rapidly increasing rural population weakness in land use management low technical capacity in forestry and agro-forestry poor fire management weakness in forest law enforcement and poor financial capacity the sector is in serious need of transformation

The FIP plan aligns with the countryrsquos current strategy for Reducing Emissions from Deforestation and Forest Degradation (REDD) and sustainable management of forests and conservation and enhancement of forest carbon stocks

Burkina Faso

(REDD+) In that capacity the plan focuses on land use planning land titling agro-sylvo-pastoral practices and capacity and institutional framework building Plan objectives include improving the legalregulatory framework and forest governance decreasing net deforestation and degradation in state forests and other woodlands with a corresponding emission reduction of 8-20 MtCyear over 10 years and reinforcing capacity and knowledge sharing The AfDBrsquos support in the plan for a proposed $10 million will focus on a project for participatory management of state forests

impact Expected impacts are Innovation integrated approach mixing governance

institutionalregulatory and on-the-ground investment focus

Transformation Landscape approach will impact local development choices and catalytic approach will enhance results on-the-ground

Replicability designed to take place at both local and international levels

building A Path-breaking African reDD+ Strategy

ghANA FIP Investment Plan endorsed by CIF November 2012 $50 million

Description In Ghana a heavily forested nation with major dependence on the forest sector for livelihoods and with 80 of the land communally owned the countryrsquos forests have been reduced from 82 to 494 million ha over the last century Agricultural expansion and wood harvesting combined account for 85 of the countryrsquos deforestation

Today current exploitation trends are unsustainable illegal harvesting is rampant and benefit-sharing and governance remain inequitable With a forestry sector that accounts for 28-4 of GDP and timber exports on the order of 18 of all exports the country became one of the first African countries to initiate a national strategy on REDD+ Its FIP investment plan is strongly linked to that strategy The AfDBrsquos support in the plan for a proposed $15 million would focus on engaging local communities in REDD+ and enhancement of carbon stocks helping create enabling mechanisms for community participation sustainable cocoa and agroforestry landscape systems community restoration of degraded forests and effective project management

impact Outputs would include an innovative tenurial system an effective carbon rights and benefit-sharing system alternative livelihoods enhancement and development of local community capacity

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Measuring the results of climate investments is fundamental for development effectiveness and learning Early in its design effort the CIF established a set of results frameworks as living documents In 2012 the CIF Administrative Unit and MDBs initiated a process to revise the frameworks to make them easier for the pilot countries to implement and in November revised frameworks for the CTF PPCR and SREP were approved based on a set of basic principles

national mampE systems The frameworks are designed to operate within national MampE systems and with the MDBsrsquo own approach to managing for development results

Data collection and reporting standards To aggregate country-level results at the

programmatic level core indicators will be measured using compatible methodologies

Flexible and pragmatic approach The frameworks are designed to allow and encourage pilot counties to have flexibility in selecting additional indicators and reporting as long as core program outcome indicators are included

The FIP will continue working with its results framework approved on June 7 2011 but FIP pilot countries meetings in 2013 will serve as a forum to explore a few core outcome indicators that could be measured by all countries to allow reporting of progress at the level of the FIP

reSulTS Framework PurPoSe ouTCome objeCTiveS

CTF Monitor and evaluate progress in achieving a transformed low-carbon economy

1 Avoid greenhouse gas emissions2 Mobilize increased finance for low-carbon development

mobilized3 Increase supply of renewable energy4 Increase users of low- carbon public transport5 Increase energy efficiency

PPCr Monitor and evaluate progress in achieving increased resilience of households communities businesses sectors and society to climate variability and climate change and in achieving improved climate-responsive development planning across economic sectors

1 Strengthen adaptive capacities2 Put adequate institutional frameworks in place3 Routinely apply climate information in decision making4 Conduct improved sector planning and regulation for

climate resilience5 Identify and implement innovative climate- responsive

investment approaches

SreP Monitor and evaluate progress in achieving support for low- carbon development pathways by reducing energy poverty andor increasing energy security

1 Increase access to clean energy2 Increase supply of renewable energy

For a full description of each of the results frameworks please visit httpsclimateinvestmentfundsorgcifmonitoring_and_evaluation20

Immediately following the close of the CIF Partnership Forum In November in Istanbul the AfDB hosted a two-day meeting of international finance institutions (IFIs) and MDBs to advance the analysis and information-sharing regarding the role that Climate Change Development Policy Operations (CC DPOs) can play in promoting structural changes towards climate-smart development pathways

Meeting participants included the African Development Bank Asian Development Bank French Development Agency Institute for Sustainable Development and International Relations Japan International Cooperation Agency and World Bank The meeting was a result of the IFIsrsquo decision to come together and establish a working group to consider key issues regarding use of DPOs as a relevant instrument to pursue climate-smart development The meeting took place in the margins of the CIF Istanbul meetings as the CIF is serving as a testing ground for the use of CC DPOs

DPOs are designed to help countries achieve programs of policy and institutional actions that support their policy and sector objectives CC DPOs build on the DPO structure and strengths such as scaled-up finance a country-driven process promotion of coherence and consistency and reinforcement of countryrsquos systems and institutions to help steer policy regulatory and institutional frameworks in the direction of low carbon and climate resilient development

Ongoing CC DPOs were presented as case studies to enable discussion around issues such as structure impact and effectiveness of the CC DPO tool

In Vietnam for example the CC DPO is designed to complement and connect with operations and provides an effective platform for climate change dialogue between the government and MDB Key lessons

emerged during this presentation including the need for ownership and balanced institutional set-up reconciling short-term actions and longer term goals and improvement of the quality of results framework

DPO importance in the CTF context was explored through a presentation by the AfDB It was highlighted that DPOs could support policies to eliminate dirty fuel subsidies support the policy reform required to deploy new technologies incentivize research assist in access to international climate funds and strengthen coordination among institutions ministries and donors

Participants also discussed measurement of results in relation to DPOs and the CTF It became clear that effective results are contingent on the quality of project design and that performance should be measured in terms of indicators that capture the desired results These indicators should be closely aligned with final project outcomes and could include reductions in GHG emissions relative to a baseline additional capacity in MW or reduction in measured levels of deforestation

AfDB iNTErNATiONAl fiNANCiAl iNsTiTuTiONs gAThEr TO ExplOrE ThE usE Of ClimATE ChANgE DEvElOpmENT pOliCY OpErATiONs

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 2322

sTrENgThENED rEsulTs frAmEwOrKs

MOvInG The CIF FORwARD A mulTi-frONT ApprOACh

CIF pilot countries share knowledge on CTF operationsphoto courtesy IISDorg

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At a CIF Partnership Forum AfDB-hosted event a panel of speakers considered key points underpinning private sector investment in CIF operations including fiscal ones and lessons from specific countries which have been successful at attracting private sector investment at least in some sectors

From the global perspective panelists identified a need for risk-sharing mechanisms and noted that political risk can serve as a main barrier to long-term financing that ldquojoined-up thinkingrdquo among government agencies and ministries is key to successful projects and that it is important to ensure early identification of fiscal risks

The country sessions focused on three countriesrsquo actions South Africarsquos use of a rolling program available through procurement to pursue the countryrsquos large renewable energy program as well as the key role of the countryrsquos PPP unit with adequate skills Thailandrsquos plans to expand its energy mix to include a greater share of renewables including innovative solutions such as rooftop solar and biofuels and Kenyarsquos use of concessional funding sources blended with AfDB and SREP funding to pave the way for private sector investment in resource development in the Menengai geothermal project

AfDB hOsTs mEETiNg TO CONsiDEr privATE sECTOr ENgAgEmENT iN Cif OpErATiONs

Each year CIF recipient country governments MDBs and other national and global stakeholders who work on countriesrsquo CIF operations gather in a series of collaborative Pilot Country Meetings to address emerging experience in implementing their CIF plans and projects CTF countries meet annually SCF countries meet semi-annually and all CIF countries meet as needed to discuss emerging CIF-wide lessons 18 Pilot Country Meetings have been held between October 2009 and November 2012 These forums have already demonstrated added value Participants have begun to establish cross-country relationships creating a growing global network of practitioners that can be relied upon for knowledge and support By discussing common issues pilot country representatives have also found areas of common understanding and have transmitted their views on how to improve the CIF to the CIFrsquos governing bodies

In Istanbul at the November 2012 meetings pilot countries led the discussion focused primarily on emerging lessons from projects underway application of effective tracking and measurement of project results and engagement of stakeholders including the pivotal role of the private sector

Cif sTAKEhOlDErs COmE TOgEThEr TO shArE lEArNiNg pilOT COuNTriEs mEETiNgs

mulTilATErAl DEvElOpmENT BANKs JOiN fOrCEs TO TrACK ClimATE fiNANCiNg

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puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB 2524 finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012

AfDB led a team of MDBs to develop a new joint approach to track climate finance going for adaptation The new common methodology to track climate financing and value its impact was launched during a panel discussion on the topic featuring representatives from each of the MDBs involved ndash the AfDB Asian Development Bank (ADB) European Bank for Reconstruction and Development (EBRD) European Investment Bank (EIB) Inter-American Development Bank (IDB) International Finance Corporation (IFC) and the World Bank

Simon Mizrahi Director of the AfDBrsquos Quality Assurance and Results Department (ORQR) expressed the urgent need to take on climate financing and its tracking and make it a moral obligation ldquoClimate change is already taxing the lives and future of millions of people in Africa specifically as they will be the hardest hit Drought storms floods are destroying the livelihood of millions in the most vulnerable countries on earthrdquo Mizrahi continued ldquoAddressing climate change needs a worldwide team effort as the numbers are staggering and a collective partnership is the only way forwardrdquo

AfDB Chief Climate Change Specialist Mafalda Duarte introduced the joint MDB reports on Adaptation and Mitigation Finance and how these will support better

project design and allow better accountability to stakeholders whether they be member countries institutions or private donors

ldquoCommitments have been made in terms of climate finance because of the recognition that climate finance is needed to address the climate change impacts we are facing and we will facerdquo Duarte said ldquoThese joint reports provide a system to monitor these commitment trends and progress in climate-related investments We believe also that this tracking and monitoring will help mobilize resources from capital markets into green investments and will help better define what these investments are and ought to berdquo

The MDB representatives all agreed that the process of harmonizing their tracking methodologies is allowing them to build momentum in tackling the negative effects of climate change In addition since one of the objectives of the joint MDB approach is to inform project design the CIF also stands to benefit from this work like other climate finance instruments

But this joint effort is the beginning of a long process with many challenges ahead One of those key challenges will be to leverage more private investment in climate financing

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finAncing chAnge ThE AfDB AND CIF FOr A ClImATE-SmArT AFrICA | NO2 July-DECEmBEr 2012 2726 puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB

LOOKInG AheAD

AfDBrsquos CIF portfolio demonstrates that the transformation in a few African countries is well underway As the eight approved projects show where financing for climate action is integrated in country policies and institutions and where risks to investment are diminished the evolution to low-carbon and climate-resilient societies is not only meaningful but transformative across economic sectors

With AfDB and CIF support Morocco shows promise for a three-fold increase in its use of wind power in the next several years Kenya can count on a three-fold increase in geothermal power as an integrated source of energy South Africa can expect emission savings of about 05 million tons of CO2 per year through wind and 045 million tons through solar energy Mozambique can see its poverty rate in the program area drop by 13 and Niger can see an increase in essential agricultural production to 2860 tons These are significant changes at the national level and they also offer possibilities for scaling up knowledge and impact beyond their national borders

Over the coming months 14 more projects mdash in renewables energy efficiency sustainable transport forests including state forest management and REDD+ and climate resilience mdash are due to be considered for approval by the CIF governing bodies and the AfDB Board Once they are approved and get underway their results will significantly add to the exponential shift to sustainable economies we see underway

During 2013 AfDB expects to approve its entire portfolio of PPCR and FIP projects and have implementation start as soon as possible thereafter and in SREP to support Tanzania and Liberia in getting their Investment Plans approved so that they can start preparation of their much needed energy projects We are working on the strategic review of the MENA CSP Investment Plan and looking to update the South Africa CTF Investment Plan to respond to the changes in the global and country agendas

We are also fully committed to implementation of the SREP PPCR and FIP private sector reserve funds and contributing to efforts to stimulate private sector engagement under CTF Finally we are resolved to help two or more countries improve their national MampE systems to take into account relevant climate change indicators and in the spirit of learning we plan to promote generation and dissemination of knowledge linked to our PPCR and FIP portfolios bringing together lessons from FIP PPCR and other Bank instruments to inform policies programs and project development and implementation in African countries and elsewhere

By design the CIF mechanism is complementary to other forms of finance and support including the core support from the AfDB and other international institutions It remains up to us to stay vigilant to ensure that African nations receive the funding knowledge and capacity they need to move along the green development path As the AfDBCIF portfolio continues to evolve the months ahead will reinforce the transformative nature of the work shown in this report

AfDB PIPeLIne

inveSTmenT Plan CounTry

Fund CiF endorSemenT CiF Funding

Nigeria CTF Nov-10 2500

South Africa CTF Nov-09 5000

Egypt CTF Jan-09 3000

Morocco CTF Sep-11 1500

MENA Region CTF Dec-09 7500

Ethiopia SREP May-12 500

Mali SREP Nov-11 400

Kenya SREP Sep-11 500

Tanzania SREP Apr-13 500

Liberia SREP Apr-13 500

DRC FIP Jun-11 600

Burkina Faso FIP Jun-11 300

Ghana FIP Nov-12 500

Mozambique PPCR Jun-11 860

Niger PPCR Nov-10 1100

Zambia PPCR Jun-11 860

ProjeCTProgram TiTleinveSTmenT

Plan ProjeCT STaTuS CiF Funding afdb Funding

Clean TeChnology Fund (CTF)

200 MW Gulf of Suez Wind Farm Egypt Preparation 500

120-160 MW CSP complex in Ouarzazate Morocco MENA AfDB approved 1000 2400

100 MW CSP complex in Kom Ombo Egypt MENA Preparation 500 -

Tunisia CSP MENA Preparation 680 -

ONE Wind Energy Plan Morocco AfDB approved 1250 4483

Bus-based Mass Transport for Abuja Nigeria Preparation 500

Renewable EnergyEnergy Efficiency Nigeria Preparation 500

ESKOM Renewable Support Project mdash Wind amp solar South Africa AfDB approved 1000 2600

Energy Efficiency program South Africa Preparation 75

Sustainable energy acceleration program South Africa Preparation 425

Solar water heaters program South Africa Preparation 250 -

SCaling-uP renewable energy Program (SreP)

Assela Wind Farm Project Ethiopia Preparation 200

Menengai Geothermal Project Kenya AfDB approved 250 1200

Solar photovoltaic IPP Mali On hold 120

Minimicro hydro development Mali On hold 120

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For more information on the CIF and the AfDB please contact Mafalda Duarte CIF Coordinator Energy Environment and Climate Change Department AfDB mduarteafdborg copy

AfDB PIPeLIne

BROKeRInG CLIMATe KnOwLeDGe In AFRICAAfDB is partnering with African countries to create a growing repository of climate knowledge Visit us at wwwafdborg to explore the evolving knowledge base

Solutions for a Changing Climate The African Development Bankrsquos Response to Impacts in AfricaAfDBrsquos role in climate finance in key sectors including energy transport water and sanitation agriculture and health

Climate Finance NewsletterBi-monthly newsletter on AfDBrsquos work to support

Africarsquos climate-smart development

Subscribe to the AfDB Climate Finance newsletterwwwafdborgentopics-and-sectorsinitiatives-partnerships

climate-investment-funds-cifclimate-finance-newsletter

The AfDB and CIF Semi-Annual ReportSeries of six-month reports on AfDBrsquos CIF portfolio status

CIF Annual Report

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB28

ProjeCTProgram TiTleinveSTmenT

Plan ProjeCT STaTuS CiF Funding afdb Funding

ForeST inveSTmenT Program (FiP)

Participatory management and protection of state forest reserves

Burkina Faso Preparation 120

Addressing deforestation and degradation in the Mbuji MayiKananga and Kisangani supply areas

DRC Preparation 220

Engaging Local Communities in REDD+Enhancing Carbon Stocks

Ghana Preparation 100

PiloT Program For ClimaTe reSilienCe (PPCr)

Sustainable land and water management Mozambique AfDB approved 158 30

Baixo Limpopo irrigation and climate resilience project Mozambique AfDB approved 158 250

Water resources mobilization and development project (PROMOVARE)

Niger AfDB approved 220 -

Climate Information Development and Forecasting Project (PDIPC)

Niger AfDB approved 130 -

Strengthening climate resilience in the Kafue River Basin Zambia Preparation 370 -

ProjeCT PreParaTion granT CounTry STaTuSCiF Funding

(uS$ million)

200 MW Gulf of Suez Wind Farm Egypt Studies ongoing 10

100 MW CSP complex in Kom Ombo Egypt Egypt Studies ongoing 10

Assela Wind Farm Project Ethiopia Studies ongoing 17

Solar photovoltaic IPP Mali On hold 095

Minimicro hydro development Mali Preparation 22

Participatory management and protection of state forest reserves Burkina Faso Preparation 05

Addressing deforestation and degradation in the Mbuji MayiKananga and Kisangani supply areas

DRC Preparation 08

Strengthening climate resilience in the Kafue River Basin Zambia Studies ongoing 10

Total 91

For more information on the CIF and the AfDB please contact Mafalda Duarte CIF Coordinator Energy Environment and Climate Change Department AfDB mduarteafdborg copy

AfDB PIPeLIne

BROKeRInG CLIMATe KnOwLeDGe In AFRICAAfDB is partnering with African countries to create a growing repository of climate knowledge Visit us at wwwafdborg to explore the evolving knowledge base

Solutions for a Changing Climate The African Development Bankrsquos Response to Impacts in AfricaAfDBrsquos role in climate finance in key sectors including energy transport water and sanitation agriculture and health

Climate Finance NewsletterBi-monthly newsletter on AfDBrsquos work to support

Africarsquos climate-smart development

Subscribe to the AfDB Climate Finance newsletterwwwafdborgentopics-and-sectorsinitiatives-partnerships

climate-investment-funds-cifclimate-finance-newsletter

The AfDB and CIF Semi-Annual ReportSeries of six-month reports on AfDBrsquos CIF portfolio status

CIF Annual Report

puBlICATION OF ThE ENErgy ENvIrONmENT AND ClImATE ChANgE DEpArTmENT AfDB28

ProjeCTProgram TiTleinveSTmenT

Plan ProjeCT STaTuS CiF Funding afdb Funding

ForeST inveSTmenT Program (FiP)

Participatory management and protection of state forest reserves

Burkina Faso Preparation 120

Addressing deforestation and degradation in the Mbuji MayiKananga and Kisangani supply areas

DRC Preparation 220

Engaging Local Communities in REDD+Enhancing Carbon Stocks

Ghana Preparation 100

PiloT Program For ClimaTe reSilienCe (PPCr)

Sustainable land and water management Mozambique AfDB approved 158 30

Baixo Limpopo irrigation and climate resilience project Mozambique AfDB approved 158 250

Water resources mobilization and development project (PROMOVARE)

Niger AfDB approved 220 -

Climate Information Development and Forecasting Project (PDIPC)

Niger AfDB approved 130 -

Strengthening climate resilience in the Kafue River Basin Zambia Preparation 370 -

ProjeCT PreParaTion granT CounTry STaTuSCiF Funding

(uS$ million)

200 MW Gulf of Suez Wind Farm Egypt Studies ongoing 10

100 MW CSP complex in Kom Ombo Egypt Egypt Studies ongoing 10

Assela Wind Farm Project Ethiopia Studies ongoing 17

Solar photovoltaic IPP Mali On hold 095

Minimicro hydro development Mali Preparation 22

Participatory management and protection of state forest reserves Burkina Faso Preparation 05

Addressing deforestation and degradation in the Mbuji MayiKananga and Kisangani supply areas

DRC Preparation 08

Strengthening climate resilience in the Kafue River Basin Zambia Studies ongoing 10

Total 91

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