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Renewable Energy Fund Component 1: Line Of Credit And Direct Financing For Off-Grid Electrification (Us$45.94 Million Srep Funds) This Component Has Set Up And Operationalized The Ref, A Local Currency Line Of Credit And Direct Financing Facility Has Helped To Address Access To Finance And Affordability Constraints To Accelerate Growth Of The Off-Grid Electrification Market In Rwanda. The Ref Provides Lines Of Credit To Local Financial Institutions For Sub-Loans To Households And Micro, Small, And Medium Enterprises, As Well As Direct Loans To Private Companies Engaged In Off-Grid Electrification (Mini-Grid Developers And Potentially Locally Registered Oscs). The Ref Use Existing Country Systems Like Saccos To Facilitate Access To Finance For Households And Businesses, Improve Affordability Of Solar Electricity Services, And Maximize Geographic Coverage. The Ref Has Been Structured Into Five Financing Windows Described Below. This Allows The Facilitation Of Off-Grid Market Development Through The Mobilization Of All The Key Market Enablers At The Same Time: Saccos, Banks (Commercial And Microfinance), And Private Companies (Mini-Grid Developers And Potentially Locally Registered Oscs). Window 1 On-Lending Through Saccos To Households And Micro-Enterprises. This Window Provides A Wholesale Line Of Credit To Brd For On-Lending To Saccos That Comply With Established Eligibility Criteria. Saccos On-Lend The Funds To Eligible Households And Micro Enterprises For Purchasing Tier 1 And Above Solar Systems. Window 2 On-Lending Through Banks (Commercial And Microfinance) To Households And Small And Medium Enterprises (Smes). This Window Provides A Wholesale Line Of Credit To Brd For On-Lending To Eligible Commercial And Microfinance Banks, Which Then Extend Sub-Loans To Households And Smes For The Purchase (And Possibly, In The Case Of Smes, Distribution) Of Solar Systems Of Tier 1 And Above Access Level. Window 3 - Direct Financing Of Mini-Grid Developers. This Window Provides Direct Financing To Eligible Mini-Grid Developers To Finance Up To 75 Percent Of The Construction Of Renewable Energy Based Mini-Grid Systems. Window 4 - Direct Financing Of Locally Registered Oscs Supporting Tier 1 Or Higher Solar Systems. This Window Provides Direct Financing To Eligible, Locally Registered Oscs Offering Tier 1 And Above Solar Home Systems And Ongoing Maintenance Services To Its Clients Through Delayed Payment Options. Eligible Companies Will Have To Leverage Ref Financing 2:1. Window 5 Results Based Financing Through Oscs To Subsidize Solar System Prices For Ubudehe 1, 2 And 3 Households. This Window Allows Eligible Oscs To Sell Solar Systems At An Affordable Price To Low-Income Households. Implementation Of Component 1 Access To Financing For All Active Windows Will Be On A First-Come, First-Served Basis For Window 1 To 4 Windows To Allow For Flexibility During Project Implementation. Window 5 Has An Allocation Of $15 Million From The Ref And An Additional $15 Million From The Eaqip Project. All Eligible Beneficiaries Interested To Receive Ref Financing Will Be Required To Comply With Eligibility Criteria Agreed With The World Bank. For Window 1, Participating Saccos Are Required To Enter Into Service Agreements With Solar Companies To Ensure That Solar Systems Supported By The Window Are Appropriately Serviced During Sub-Loans Tenor; Participating Saccos Extend Sub-Loans To Households And Enterprises For Solar Systems Purchases Only From Companies With Whom They Have Active Service Agreements. All Supported Systems Will Be Required To Meet The Ministerial Guidelines For Solar Home Systems (I.E. January 2022 Version). The Om Will Describe The Eligibility Criteria And On Lending Process For Each Window. For Window 2, Participating Banks Provide Loan Financing To Oscs That Are Eligible Under The Ref Project Whose Solar Products Meet Ministerial Guidelines. For Window 3, Participating Mini-Grids Developers Receive Direct Loan Financing From Brd To Construct Mini-Grids In Eligible Areas As Defined By The National Electrification Plan (Nep). For Window 4, Participating Oscs Receive Loan Financing From Brd To Import And Distribute Solar Home System. Window 5 Provides Subsidy Financing To The Ubudehe 1, 2 And 3 Households Through Oscs. Component 2: Technical Assistance, Capacity Building, And Project Implementation Support (Us$3 Million Srep Funds) This Component Provides The Necessary Technical Assistance And Capacity Building On A Need Basis To Brd And Participating Entities (Saccos, Banks, And Private Companies Engaged In Off-Grid Electrification) As Well As Provide Project Implementation Support To Brd As A Host Of The Ref. Technical Assistance And Capacity Building Include, Among Others, (A) Capacity-Building And Awareness Workshops For Saccos, Banks, And Private Companies Engaged In Off-Grid Electrification To Facilitate Partnerships Between Saccos, Banks, And The Private Sector; (B) Technical Assistance And Capacity Building For Participating Saccos And Banks To Ensure Their Successful Partnerships With The Private Sector; (C) Capacity Building Of Participating Saccos And Banks To Manage Energy Credit Lines (Including Management, Operational, And Monitoring And Evaluation Capacities, As Well As Citizen/Consumer Orientation To Build Demand For These New Products); (D) Capacity Building Of The Energy Division Of Brd To Manage Direct Energy Lending; (E) Technical Assistance To Brd To Develop A Pipeline Of Mini-Grid Projects; (F) Technical Assistance And Capacity Building For Brd And Participating Entities On Quality Assurance And Enforcement Of Technical Standards For Off-Grid Solar Systems, And So On; And (G) Public Awareness Campaigns To Educate Consumers On The Benefits And Opportunities Of Off-Grid Electrification. Technical Assistance Activities Will Also Cover Gender Aspects, Including (A) Monitoring Windows For The Appearance Of Gender Gaps In Access To Financial Services For Male And Female Applicants And Enterprises For Purchase And Retailing Of Off-Grid Technologies To Enhance Development Outcomes And Economic Opportunities; (B) Identification Of Data Sources And Information To Further Understand The Issues And Barriers To Financial Services For Off-Grid Technologies By Gender, Income Level (With A Focus On Low-Income Households), Rural Or Urban Location, Household Headship, And Other Social Dimensions; And (C) Implementation Of Approaches And Methods That Off-Grid Market Enablers (For- Example, Brd, Saccos, Banks, Mini-Grid Developers And Oscs) Could Adopt And Integrate To Close Gender Gaps (For Example, Gender-Sensitivity Training For Credit Officers) Related To Access To Financial Services For The Purchase Of Energy Technologies In Household Or Enterprise Activities. Project Implementation Support Include, Among Others, (A) Establishment Of The Project Implementation Unit (Piu) And Provision Of Operational Support To The Piu In The Areas Of Project Management, Supervision, And Monitoring; (B) Outreach To Off-Grid Market Enablers And Final Project Beneficiaries; (C) Knowledge-Sharing Events Between Participating Project Entities; (D) Sector-Wide Knowledge Sharing And Project Results Dissemination Workshops; (E) Preparation Of Required Studies Related To The Project, Including Impact Assessment And Annual Citizen/Consumer Feedback Analysis Through Focus Group Discussions To Better Understand The Market; (F) Preparation Of Consolidated Annual Project Audits; And (G) Financing Of Incremental Operating Costs. There Is Cooperation And Co-Financing Opportunities With Other Donors, For Example, Enabel) And Swedish International Development Agency (Sida)
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