Funding Eligibility
a)

Satisfactory business plan as to the overall planning in relation to the use of the NNNF and containing inter-alia;

  • proposed internal organization to implement the business plan
  • details of responsible business team
  • capacity to originate, evaluate and approve lending proposals
  • manage subsequent follow-up monitoring and loan recoveries; and
  • the details related to similar financing schemes that the OGS company operates.
b)

Particulars of the operational and financial results of the OGS company for at least the previous two (2) years based on an acceptable audited report. The OGS’s operations should be profitable for at least the past two years. However, in reaching an assessment about potential profitability, Fund Manager will also consider:

  • Realistic and market-oriented business prospects and potential for profitable operations; and
  • If the OGS company is operating in the off-grid SHS sector, the performance of their business.
c)

The OGS company should furnish proof to Fund Manager that the financial performance of the company concerned is in conformity with the applicable financial criteria outlined below.

  • Minimum MWK 2,500,000 of equity
  • Profitability for at least past two years and minimum revenue of MWk 400,000,000 in the latest year financial year
  • Debt to equity ratio: not in excess of 4.0;
  • Minimum after tax profit equivalent to 12.5 percent p.a. on Return on Equity (ROE)
  • Minimum debt service coverage ratio of 1.00 times.
d)

After fulfilling the eligibility criteria by OGS company for program entry, the company shall continue to meet the eligibility criteria aforementioned, satisfactory to Fund Manager, MoE and World Bank, which shall monitor the company’s compliance therewith annually. If the OGS company fails at any time to satisfy the above specified criteria, Fund Manager reserve the right to suspend “Sub Loan” authorizations under the Project until the company has taken specific steps to address its problems in a manner satisfactory to Fund Manager.

e)

OGS company has established and maintained sound and transparent accounting, MIS and internal audit system.

f)

Accounts are audited by a reputable external auditor on an annual basis.

g)

Must be registered with appropriate registration authority in Malawi to conduct their existing operations as well as off-grid solar business

h)

Number of SHS installed in Malawi is not less than 5,000