Zambia's Solar Plant

In a continued effort to back the development of solar power on the African continent, the EIB has signed a loan agreement of up to USD 11.75 million in support of the Ngonye photovoltaic solar plant in Zambia.

The project will be built by Enel Group and Zambia’s Industrial Development Corporation (IDC) and will be located in the Lusaka South Multi-Facility Economic Zone.

EIB Vice-President Andrew McDowell, in a release copied to Newsghana.com.gh commented that, “The ongoing initiative to standardise both tendering and financing processes is creating economies of scale for solar projects across the African continent, improving economic viability and resulting in the development of solar power in smaller markets and developing countries. After recent support for solar projects in Morocco and Kenya, the EIB is very proud to support Zambia in exploiting this abundantly available resource for the benefit of its citizens.”

Apart from financing by Enel Group itself, he said, the financing involves senior loans of up to USD 10 million from the International Financing Corporation (IFC), a member of the World Bank Group and a concessional loan of up to USD 12 million from the IFC-Canada Climate Change Program. The facility, which is expected to produce around 70 GWh per year, is set to help Zambia reduce shortages and diversify its energy generation mix.

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

It has supported transformational investment across Africa for more than 50 years and has operated in Zambia since 1978, making available nearly 931 million in financing to support the country’s development. Over the last five years alone, the European Investment Bank has provided EUR 294.5 million for investments in water and sanitation project, energy projects as well as credit lines for local SMEs in Zambia.

Scaling Solar is a World Bank Group solution that makes it easier for governments to quickly procure and develop large-scale solar projects with private financing. It includes a ‘one-stop shop package of technical assistance, templated documents, pre-approved financing, insurance products, and guarantees.

Scaling Solar has financing support of USAID’s Power Africa, the Private Infrastructure Development Group company, DevCo, the Ministry of Foreign Affairs of the Netherlands, the Ministry of Foreign Affairs of Denmark, and the UK Department for International Development. The Scaling Solar project in Senegal also received valuable financial assistance from the Rockefeller Foundation. For more information, please visit www.scalingsolar.org

By:Newsghana com.gh

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