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EIB signs loan agreement of USD 12 mn to Ngonye solar plant in Zambia

Up to USD 11.75 million loan from the European Investment Bank (EIB) available in support of the 34 MW Ngonye solar power plant in Zambia.


EIB
Updated: 20-06-2018 22:57 IST
EIB signs loan agreement of USD 12 mn to Ngonye solar plant in Zambia

The project will be built by Enel Group and Zambia’s Industrial Development Corporation. (Image Credit: Reuters)

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 commented: "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, 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.

COUNTRY : Zambia