Off-Grid Clean Energy Facility Activity. The Off-Grid Clean Energy Facility (“OCEF”) Activity will increase access to electricity for the currently unconnected majority of the population in rural and peri-urban areas by removing initial cost and investment barriers in the off-grid electricity sector. MCC Funding will support the establishment of OCEF and grants issued thereunder in four primary windows: • Critical public infrastructure to provide standalone electricity generation capability (“Window One”); • Mini-grids providing electricity generation and distribution for household, commercial, agricultural and industrial use (“Window Two”); • Household generation and storage, such as renewable energy sources devices for individual families (“Window Three”); and • Energy efficiency measures for buildings, facilities and installations (“Window Four”, and together with Window One, Window Two and Window Three, the “OCEF Windows”). Unless otherwise agreed by MCC, OCEF will be managed by a competitively procured, independent facility manager (“Facility Manager”). MCC Funding will finance the associated costs and fees, as applicable, of engaging the Facility Manager. The administration of OCEF will be governed by an operations manual, in form and substance satisfactory to MCC, setting forth, among others, eligibility criteria for each OCEF Window (including environmental and gender considerations), requirements for economic rates of return, appropriate governance and implementation structures (including a structure for the selection of projects) and transparency requirements relating to the use OCEF funding (“OCEF Operations Manual”). OCEF will seek to leverage MCC Funding through partnerships with private companies, non- governmental organizations, communities or other entities that demonstrate viable off-grid, clean energy solutions for Benin. Unless MCC otherwise agrees, Off-Grid Tranche Funding will finance the OCEF Activity’s grants for Window Two. Accordingly, initial Disbursement for any grants for Window Two will be subject to the conditions governing Disbursements for the Off-Grid Tranche as set forth in Annex VI.
