Governments of Ghana, Kenya, Tanzania and Uganda; OPEC Fund for International Development (Under Discussion); World Bank; New Ventures Fund.
Description/achievement of initiative
Global LPG Partnership: Accelerate transition to LPG for cooking by engaging public and private sectors in holistic policy, investment and end-user engagement.
A global public-private partnership was created in order to address the ecosystem of policy and investment requirements necessary to create a reliable and safe LPG supply chain in developing country markets and meet universal access to clean cooking solutions. The Global LPG Partnership strategy is to implement a multi-phase process in an initial 4-5 countries in Sub-Saharan Africa. Implementation will result in the launch of an initial $250 million commercial equity fund for LPG infrastructure and distributions investments, to be supplemented by up to $250 million of commercial debt. Joined by a $250 million concessional fund for consumer first cost finance and local retail distribution, this level of investment will transition ~70 million people to LPG for cooking, produce more than 150,000 new jobs and offset nearly 2% per year of Africa's forest biomass, on average. Accompanied by a knowledge management and advocacy effort, the Partnership will position itself for expansion into additional countries beginning in year 3 of its efforts. Governmental and multi-lateral partners will engage on the policy and regulatory environments, as well co-invest in required infrastructure and concessional finance for consumers and local LPG distributors. The private sector parties will play key roles in investment, capacity building and implementation. This partnership will produce significant health, economic development and environmental benefits to partner countries and their energy poor, while creating market environs that will allow commercial returns on private capital.