Solar plant worth USD 34 mn signed by Enel and IDC in Zambia

Enel’s first power plant in Zambia, the Ngonye project is stationed in Lusaka South which is Multi-Facility Economic Zone in the country’s south.

For the construction of 34 MW, Ngonye solar plant in Zambia, Enel Group, and Zambia's Industrial Development Corporation (IDC) signed on a financing compromise for USD 34 million.

The financing comprises big loans of up to USD 10 million from the International Financing Corporation (IFC), and USD 12 million from the IFC-Canada Climate Change Program and up to USD 11.75 million from the European Investment Bank (EIB).

Enel's first power plant in Zambia, the Ngonye project is stationed in Lusaka South which is Multi-Facility Economic Zone in the country's south.

After investing USD 40 million by Enel in the construction of the site, and it hopes to produce nearly 70 GWh per year once completed.

The PV establishment will be owned by a special purpose vehicle that will see Enel hold an 80 percent stake and the IDC holding a 20 percent minority stake.

The project has as well as signed on a 25-year power purchase compromise with Zambia's state-owned utility ZESCO.

Head of Enel Green Power, Antonio Cammisecra stated that "The signing of this financing agreement marks an important step toward the start of an operational presence of Enel in Zambia, helping us establish a stronger foothold in the country. We will be contributing to Zambia's sustainable development through our renewable energy, leveraging on the country's abundance of resources and cooperation with reputed international and local partners within the framework of the Scaling Solar programme."

"The ongoing initiative to standardize both tendering and financing processes are 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," EIB Vice-President Andrew McDowell said.

IFC Chief Executive, Philippe Le Houerou told that "Scaling Solar has set a new standard for the development of solar power in Africa, starting with these two projects in Zambia."