IFC, a member of the World Bank Group, today announced a landmark financing package of $55 million to build Mozambique’s first utility scale solar PV plant, which will help increase electricity sector climate resilience and deliver power to rural areas. It includes $19 million from IFC’s own account, $19 million from Climate Investment Funds, and a syndicated loan of up to $17 million.
IFC’s financing will support the development of a 40.5 MW solar photovoltaic plant in Mocuba, Mozambique, being developed by Norway-based independent power producer Scatec Solar, Norway’s development finance agency Norfund, and Mozambique’s electricity utility Electricidade de Moçambique (EdM). Funds are being mobilized from Emerging Africa Infrastructure Fund, which provides debt products to private sector infrastructure projects in Sub-Saharan Africa. The project will also receive a $7 million Viability Gap Funding grant from the Technical Assistance Fund of the Private Infrastructure Development Group, a multi-donor funded institution that encourages private investment in infrastructure in emerging markets.
“Scatec Solar is committed to harnessing Mozambique’s solar potential and infusing grid stability. This is especially important for a country that relies on a long distance power transmission system that is vulnerable to interruptions. We will leverage IFC’s knowledge and support to ensure greater resilience for the country’s electricity sector,” Raymond Carlsen, CEO, Scatec Solar ASA.
Severe power deficits hamper economic and social development in Mozambique. The project is part of IFC’s broader efforts to promote private investment and help bring reliable and clean electricity to consumers and diversify the energy mix in order to help adapt to long term climate change impacts.
Source: IFC. Read full article here.
20 June, 2017
