Programme · Benin, Burundi, Côte d'Ivoire, Madagascar, Malawi, Uganda, Zambia
Regional Liquidity Support Facility (cover for independent power producers when utilities pay late)
Record AFR-P-0002 · draft, not yet reviewed by a person
Status by track
DeliveryOperating · 29 Mar 2022sources checked 28 Oct 2026
ATI said in March 2022 that it had provided guarantees under the facility for three solar plants in Malawi. Whether any power producer has drawn on the cover is not stated.
- design of the facility"a guarantee instrument designed to address the short-term liquidity risks" faced by renewable power producers selling to state-owned utilities; standby letters of credit "can be drawn by the IPPs following any delayed payments by the state-owned offtakers" "a guarantee instrument designed to address the short-term liquidity risks" faced by renewable power producers selling to state-owned utilities; standby letters of credit "can be drawn by the IPPs following any delayed payments by the state-owned offtakers"not yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
- Malawi signs the memorandum of understanding · 30 Nov 2018Malawi signed the facility's memorandum of understanding on 30 November 2018 Malawi signed the facility's memorandum of understanding on 30 November 2018paraphrase, not a quotationATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · paraphrase, not a quotation
- countries that had signed, March 2022"Currently, seven of ATI's member countries have signed the MoU and can benefit from RLSF": Benin, Burundi, Côte d'Ivoire, Madagascar, Malawi, Uganda and Zambia "Currently, seven of ATI's member countries have signed the MoU and can benefit from RLSF": Benin, Burundi, Côte d'Ivoire, Madagascar, Malawi, Uganda and Zambianot yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
- second phase announced · undatedthe second phase was "recently announced by ATI and its partners"; the new structure "will no longer involve an LC issuing bank", and contracts are to be signed between ATI and the power producers the second phase was "recently announced by ATI and its partners"; the new structure "will no longer involve an LC issuing bank", and contracts are to be signed between ATI and the power producersnot yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
- guarantees for three solar plants in Malawi · 29 Mar 2022"ATI has provided instrumental guarantees in support of three projects in Malawi": the Nkhotakota, Salima and Golomoti solar power plants, "enabling these projects, with a combined installed capacity of 101 MW, to achieve financial close" "ATI has provided instrumental guarantees in support of three projects in Malawi": the Nkhotakota, Salima and Golomoti solar power plants, "enabling these projects, with a combined installed capacity of 101 MW, to achieve financial close"not yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
Not established
- Whether any power producer has drawn on the cover, and how much cover is in place. Not found in the sources read.
- Whether the second phase has replaced the first. Not found in the sources read.
- That the guarantees enabled financial close is ATI's own claim about its product; no lender's or the projects' own account was read.
- Which countries have signed since March 2022. Press reports of later signings were not read.
Making projects bankable
A measure meant to make projects financeable. All such measures
Cover for the buyer's credit. Cover for independent power producers against late payment by state-owned utilities, in the member states that have signed up. In the first phase a bank issued letters of credit the producers can draw on; a second phase announced in 2022 drops the bank, with ATI contracting with the producers directly. When the change took effect was not found.
Evidence that it exists
- design of the facility"a guarantee instrument designed to address the short-term liquidity risks" faced by renewable power producers selling to state-owned utilities; standby letters of credit "can be drawn by the IPPs following any delayed payments by the state-owned offtakers" "a guarantee instrument designed to address the short-term liquidity risks" faced by renewable power producers selling to state-owned utilities; standby letters of credit "can be drawn by the IPPs following any delayed payments by the state-owned offtakers"not yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
- countries that had signed, March 2022"Currently, seven of ATI's member countries have signed the MoU and can benefit from RLSF": Benin, Burundi, Côte d'Ivoire, Madagascar, Malawi, Uganda and Zambia "Currently, seven of ATI's member countries have signed the MoU and can benefit from RLSF": Benin, Burundi, Côte d'Ivoire, Madagascar, Malawi, Uganda and Zambianot yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
- guarantees for three solar plants in Malawi (by the release of 29 March 2022)"ATI has provided instrumental guarantees in support of three projects in Malawi": the Nkhotakota, Salima and Golomoti solar power plants, "enabling these projects, with a combined installed capacity of 101 MW, to achieve financial close" "ATI has provided instrumental guarantees in support of three projects in Malawi": the Nkhotakota, Salima and Golomoti solar power plants, "enabling these projects, with a combined installed capacity of 101 MW, to achieve financial close"not yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
- second phase announcedthe second phase was "recently announced by ATI and its partners"; the new structure "will no longer involve an LC issuing bank", and contracts are to be signed between ATI and the power producers the second phase was "recently announced by ATI and its partners"; the new structure "will no longer involve an LC issuing bank", and contracts are to be signed between ATI and the power producersnot yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
Who carries the risk, and what it costs
- in the first phase ATI and KfW provided collateral to Absa South Africa, which issued the standby letters of credit in the first phase ATI and KfW provided collateral to Absa South Africa, which issued the standby letters of creditparaphrase, not a quotationATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · paraphrase, not a quotation
- the second phase is expected to reduce "the cost of RLSF cover" because "any fees currently charged by the LC issuing bank will no longer be applied" the second phase is expected to reduce "the cost of RLSF cover" because "any fees currently charged by the LC issuing bank will no longer be applied"not yet checked by a personATI press release on the Regional Liquidity Support Facility (Lilongwe, 29 March 2022) · press release text · not yet checked by a person
Not established
- What the power producers or utilities pay for the cover, and the facility's size. Not found in the sources read.
This records that the measure exists and how far it has got. It is not evidence that it made any project happen.
Institutions named
A role is shown only where a quoted source says what the institution does on this reform.
- African Trade and Investment Development Insurance
- KfW Development Bank
- Norwegian Agency for Development Cooperation
Reach: 0 cross-border links, 0 blockers, 3 institutions in 2 countries or bodies. Counted from the records.