Chad’s Ministry of Water and Energy has launched one of the first tenders under the country’s new national development plan, Chad Connection 2030, which was launched at the UAE-Chad Trade and Investment Forum held in the UAE in mid-November.
The tender concerns the opening up of the country’s electricity sector to private operators and covers the construction, operation, maintenance and management of stand-alone solar PV systems and distributed power grids, mini-grids and/or metro-grids in medium-sized regions.
The aim is to expand access to reliable and affordable electricity, especially in secondary cities and rural areas, which is recognized as a key pillar of the Chad Connection 2030 plan. Bids will open on November 13, and companies are being asked to express their interest in the coming weeks, with further information available on the websites of the Department of Water and Energy and the Department of Finance, Budget, Planning and International Cooperation.
The project requires an initial investment of $120 million, including a $60 million grant from the World Bank and $60 million in investment from the private sector. The initiative leverages the World Bank’s Scaling Mini-Grids (SMG) platform, which provides a turnkey solution that combines services from IFC, the World Bank, and the Multilateral Investment Guarantee Agency (MIGA) to enable rapid and scalable deployment of mini-grids through public-private partnerships (PPPs). This is in line with the multilateral Mission 300 electrification program supported by the World Bank and other development finance institutions.
At the UAE-Chad Trade and Investment Forum, the government successfully secured US$20.5 billion of investment from public and private partners, out of a target amount of US$30 billion, to accelerate the pipeline of high-priority projects under the Chad Connection 2030 plan. The event was attended by 2,000 people, including the President of Togo, the Crown Prince of Abu Dhabi, and the Prime Minister of Niger.
Of the total, US$16.4 billion was pledged by 30 international donors and multilateral development banks, including the World Bank, Islamic Development Bank (IsDB), African Development Bank (AfDB), Arab Bank for African Economic Development (BADEA), and African Export-Import Bank (Afreximbank).
Private investors, most of them foreign, signed 40 deals and memorandums of understanding (MoUs) covering the fields of energy, agriculture, mining, textiles, tourism, education and industrialization, contributing a total of USD 4.1 billion.
Chad’s President Mahamat Itno said the US$30 billion target is achievable as the five-year plan has already mobilized US$20.5 billion in the first year.
“This forum is a real construction site, the construction site of Chad’s future that we want to build hand in hand with investors from Chad and around the world,” the head of state said at the launch of the plan. “To achieve this, I call for a determined pursuit of reforms aimed at reducing bureaucracy and significantly improving the business environment.”
The agreements signed at the launch of the Chad Connection 2030 plan include a flurry of agreements signed in the electricity sector, with the government aiming to ensure an electricity access rate of up to 60% and an access rate of 90% in the provincial capital (11% in 2022). 866MW of additional installed capacity, including 520MW of solar PV. The share of renewable energy in the energy mix is 20-30% (9% in 2024).
The Ministry of Energy has signed a memorandum of understanding with Global South Utilities (GSU) of the UAE, which includes:
– In parallel with the development of a second 225kV/90kV/33kV transmission line in the capital N’Djamena, a 180MW thermal power plant running on heavy oil (HFO) will be built.
– Installation of a photovoltaic (PV) power plant with a capacity of 12 MWc and a battery energy storage system (BESS) with a capacity of 12 MW. In the first phase, six units will be built in Sar and Abeche, while in the second phase similar facilities will be built in Am Timan, Valdai, Masseña and Goz Beyda.
Additionally, GSU committed to working with the Chadian authorities to build national capacity and train young professionals in the renewable energy sector.
Additionally, a memorandum of understanding worth US$227 million is believed to have been signed with China Machinery Engineering Corporation (CMEC) for the construction of a power transport and distribution network in N’Djamena.
Meanwhile, Pan-African renewable energy developer Axian Energy and local Green Energy Solutions signed a memorandum of understanding for the development of a 100MW solar power plant with a 50MWh BESS in N’Djamena, ERDERD will install a 105MWc HFO thermal power plant in the capital, and Volterra will install a further 150MW HFO power plant.
In addition, France’s Enerso is working on building and operating a 50MW diesel and solar power plant distributed between Bongor, Fada and Sars. Finally, a protocol was signed regarding the construction of Chad’s first solar power plant and the creation of a solar panel manufacturing factory.
In the water sector, two agreements were signed. The first was signed with Al-Rukn Engineering Consulting Society, which specializes in technology research and planning. The second contract is with China’s CGCOC Group, which is already involved in several major hydropower projects in the country.
In the transport sector, a memorandum of understanding has been signed with AD Ports Group, majority-owned by Abu Dhabi’s sovereign wealth fund ADQ, for the construction of a dry port in Chad, the first of which will be opened in Mundo at a cost of more than US$40 million. The Chad Connection 2030 plan aims to use PPPs to build six dry ports for international trade, including one in Thukla to ease congestion in Negeri. The government also aims to digitize and optimize the national logistics chain.
Other projects announced by the Ministry of Transport, Civil Aviation and National Meteorology at the UAE-Chad forum include the new international airport in Germaya and the renovation of five other airports. Development of river and rail transport to connect the country to major regional markets. Comprehensive upgrade of the road network.
Source: Plan
According to the government, Chad’s strategic location at the crossroads of West Africa, the Maghreb, Central Africa and East Africa makes it a hub for trade, logistics and investment, as well as a strategic crossroads for Africa’s major road corridors. This status provides an opportunity to develop land, air, river, rail and lake infrastructure, strengthen the country’s connectivity and build intra-African trade corridors to ensure that Chad becomes the continent’s logistics hub.
Additionally, the Ministry of Transport signed a memorandum of cooperation with the Turkish port infrastructure and logistics company Erdem Group, aimed at optimizing the port transportation of Chadian products through Cameroon, in particular through the ports of Douala and Kribi.
The agreement aims to establish a sustainable partnership framework to strengthen Chad’s logistics chain, with Erdem Group committed to developing the necessary infrastructure, reducing transit times and ensuring transparent and efficient port planning. The agreement will be implemented over two years, under the supervision of the Chad Shippers Council (COC-Tchad), in close collaboration with Cameroonian port authorities and shipowners.
Top photo: UAE-Chad Trade and Investment Forum (Source: Facebook@Chad Ministry of Energy)
