The t is an operation that seeks to improve access to electricity in rural and peri-urban areas within the Republic of Yemen. It is financed by a US$ 50 million IDA grant that will be implemented by the United Nations Office for Project Services (UNOPS) over a period of three years.
The key value propositions of the project are as follows:
- Expand access to electricity in rural and peri-urban areas for households and electricity-dependent services, including education, health services, water and food supply
- Maximize finance for development by strengthening the existing, private-sector driven supply chain for solar and engaging the expansion of local microfinance institutions (MFIs) into solar lending
- Contribute to Yemen¡¯s Nationally Determined Contribution (NDC) to the Paris Agreement
- Build on and expand UN-WB collaboration in the FCV context, drawing on flexible design and implementation arrangements and smart monitoring tools
- Address prevalent energy sector gender gaps related to access to energy and finance
Components:
The project is structured around the following three components:
- Financing for Off-grid Solar (US$ 42m):
- Under Subcomponent 1.1, UNOPS will partner with eligible microfinance institutions (MFIs), help them set up financing windows for high-quality, small-scale solar solutions for rural and peri-urban households, and provide partial grants to make the systems affordable.
- Under Subcomponent 1.2, UNOPS will contract solar suppliers and installers to provide grant-financed solar systems to critical service facilities in rural and peri-urban areas, including health clinics, schools, water corporations and electricity corporations.
- Implementation Support and Market Development (US $8m):
UNOPS will contract service providers and NGOs to provide market-strengthening activities.
- Contingent Emergency Response Component (US $0):
Zero cost emergency component that can be activated in the event of an eligible emergency situation.
Geographic scope:
The project will aim to cover rural and peri-urban areas nationwide. The selection criteria for MFIs for Subcomponent 1.1 will include coverage and will include incentives for MFIs to expand their customer base and geographical coverage during implementation. A public geospatial information system (GIS) will locate each investment under Subcomponent 1.2 for transparency.
Implementation:
UNOPS is both the recipient of IDA funds and the implementing agency. The project will be implemented directly by UNOPS; there will be project cooperation agreements between UNOPS and local partners, including MFIs, technical providers, and solar supply chain stakeholders.
Key expected results:
The project aims to restore electricity supply to 200,000 households (1,340,000 people), 400 health facilities and 800 schools. In addition, an estimated 20-30% of the investment value is expected to remain in the Yemeni economy and create jobs. Moreover, the Project will reduce carbon emissions by 430,000tCO2 and contribute to meeting Yemen¡¯s Nationally Determined Contributions (NDCs) to the Paris Agreement.