Mid-term Evaluation - PROLER programme in Mozambique

Context

PROLER program through EU-AITF (2016-2022) developed an institutional operational framework at key levels favourable to the development of renewable energy PPPs at the lowest cost in Mozambique.

The PROLER+ program (started in 2020) with a grant from EU was designed to support necessary investment to materialize the solar and wind projects located in Dondo, Manje and Jangamo respectively. This program supported the Government of Mozambique National Electrification Plan towards reaching universal access to clean, sustainable and affordable energy; more specifically increase Mozambique’s power generation capacity at the lowest cost through a bidding process from renewable energy IPPs.

The expected results for PROLER+ was to finance the four types of expenses incurred by EDM, namely:

EDM minimum equity participation in the SPVs is granted (expected that financing of each PROLER individual projects will be through a Special Purpose Vehicle (SPV) where EDM will hold a minimum of 10% as per the Mozambican law on Public Private Partnerships (PPP));

Power plants are inter-connected to the grid (the interconnection lines of the plants to the closest sub-stations as well as the sub-stations upgrade should be financed by the power utility EDM);

Environmental and socioeconomic accompanying measures implemented, and licensing process and electrification projects completed;

Additional technical assistance and capacity to support EDM;

Finally, the EGRE and DFI support was funded by EU and AFD with a 4 years’ duration focused only in the solar projects. Loans from Development Finance Institutions are also expected to provide the debt necessary for private sector/ IPPs investment. PROPARCO has provided a terms sheet in the Request for Proposal for the first project Dondo.

Project Objectives

The main objective of this Evaluation was to provide EU and interested stakeholders with an overall independent and careful assessment of the performance and present situation of PROLER, PROLER + and EGRE intervention in Mozambique, with special emphasis in the different levels of results presently obtained, measured against initial objectives, and the reasons underpinning such results.

Beside this general objective, another objective is the definition of key lessons learnt and the preparation of conclusions and recommendations for improvement of the design of other future interventions.