Africa - Bankability Lab Foundation

Alternative financing renewable energy

The Green World Company is proud to be closely connected to the Bankability Lab Foundation. The foundation aims at increasing the number of mini-grid propositions  in Sub-Saharan Africa obtaining funding. 

The Lab provides ‘bankability’ review of mini-grid propositions by using an excel-based ‘shadow’-model. Therewith mini-grid propositions can be presented to financiers / investors in a standardised way by the review report and the shadow-model prepared by the Lab which can accompany developer’s own material. The bankability review is a balanced approach to all stakeholders in a proposition.

The number of mini-grids required is estimated between 100.000 and 200.000. Of the 315 million people who will gain access to electricity in Africa’s rural areas by 2040, it is estimated that only 30 per cent will be connected to national grids. Most will be powered by off-grid household or mini-grid systems.

The Foundation has been established by 1to3 Capital B.V., a company preparing crowdfunding propositions for renewable energy and which aims at realisation of renewable energy at places where additional capacity meets direct electricity shortages and where subsidies are not or less needed compared to OECD-countries’ alternatives, since 1995. Since 2003, 1to3 Capital is focussed on bankability of renewables energy in Africa only. The Green World Company’s Co-Founder, Fedde Pronk, is member of the Supervisory Board of the Bankability Lab Foundation.

For finance purposes each project  is accompanied by an excel-based financial model (‘business case’) detailing cash flow forecasts prepared by the developer of the project. If prepared well it reflects the business case in full, including all contractual arrangements. During due diligence a lender will either use its own corporate model for assessments or have the project’s model audited after amendments from independent legal advise, technical advise, insurance and tax advice, etc. At the end of the lending due diligence process the model will be part of the credit documentation in the format of being the true representation of the agreed business case between borrower and lender(s). Hence, it has a legal weight to it. 

1to3 Capital re-models any project model. Every project model from the initiator of a project has been put in an independent model (‘shadow’ model) to verify the working of and assumptions used. Any project developer’s and the 1to3‘s model would show no differences if all assumptions are understood. Through the years, since 1995, hundreds of (renewable) energy projects have been reviewed and described in bankability reports.