Call for Project Proposals in the Decentralized Renewable Energy Sector for Facilitating Access to Finances
The GBE Benin project facilitates access to finance for local developers of decentralised renewable energy projects, through technical assistance and linkages with business development service providers and financial institutions.
What is GBE?
Grüne Bürgerenergie (GBE, Energie Verte pour les Citoyens, in French), implemented by GIZ, is a project that encourages private investment in the decentralised renewable energy sector with the aim of contributing to rural economic development. For more information on the project, visit the project website: https://gruene-buergerenergie.org/countries/benin/ .
In order to assist renewable energy project entrepreneurs in mobilising investments, GBE works in partnership with business development centers who possess proven experience in entrepreneurial and managerial coaching, as well as in liaising with financial institutions.
Facilitating access to financing
This call for projects in the renewable energy sector aims to collect the best project proposals from local project developers seeking funding. After an analysis of proposals, the best project proposals will be put in touch with the business development centers, which will provide them with coaching, capacity building and assistance in the elaboration of their business plan and application for financing, according to the requirements of financial institutions and investors. These structures will also support project leaders who are also entrepreneurs in linking with local and international financial institutions, crowdfunding structures and investors.
GBE Benin will co-finance up to 60% of the services of business development centers for the best project proposals. The remaining costs will be supported by the project developers themselves. However, the first ten hours of business assessment will be supported entirely by GBE. It is important to note that neither GBE nor the business development centers provide any guarantees for the granting of credit, but only mediate the facilitation of credit or investment.
What projects are eligible?
All projects related to decentralised renewable energy and have an impact on rural economic development are eligible.
The project must:
- Have a duration of less than 36 months;
- Apply for credit or investment not exceeding a maximum of 150% (i.e. 1.5 times) of the promoter’s annual turnover during the year 2019;
- Have a strong potential for growth and creation of added value with a net profit margin not exceeding 50% of the annual turnover;
- Have a personal contribution of at least 20% of the overall project cost.
- Apart from these indicators, the project developer must prove that they do not have any outstanding credit with a financial institution and must declare this.
Who can apply?
This call for projects is open to any company with a project in decentralised renewable energies. Companies interested in this call for projects must meet the following conditions:
- Propose a project related to decentralised renewable energies;
- Have at least one (01) year of existence;
- Be formalised in the Registre de Commerce et du Crédit Mobilier (RCCM) or have the status of entrepreneur;
- Be available, committed and motivated to benefit from the services of the business development centers;
- Be able to cover their share of the costs of the business development centers;
The companies of selected proposals must be able to provide all financial documents necessary for facilitating their access to financing (financial balance sheet etc.).
How to participate in the project?
The application form to be completed and list of other documents to be submitted are available from GBE Benin. To obtain them, please email firstname.lastname@example.org and GBE.Benin@giz.de requesting the documents for the call for project proposals.
Companies that meet the above conditions may submit their completed documents to GBE electronically to email@example.com and GBE.Benin@giz.de before November 30, 2020. After this date no further applications will be accepted for this second phase. Depending on the results of the first phase, further calls for applications may be launched.
The documents to be provided for the call for applications are:
- Completed application form;
- Business plan of the submitted project;
- Proof of existence of the company;
- Proof of annual turnover for the last three years. Companies with less than three years of existence will provide proof of their turnover for one or two years as the case may be;
After an analysis of the project proposals, GBE will contact the selected developers for bilateral discussions.