Up to USD 11.75 million loan from the European Investment Bank (EIB) provided in support of the 34 MW* Ngonye solar power plant in Zambia
The project is promoted by multinational energy company Enel and will also be supported by loans from the IFC (World Bank Group) and IFC-Canada Climate Change Program
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 funding 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 EIB has signed a SEK 3.5 billion loan agreement with the Region of Skane in Southern Sweden to finance the modernisation of the regional University Hospital in Malmö. The hospital is currently providing its services from buildings from the sixties and seventies, which are no longer fit for purpose. Skane’s regional council therefore approved a long-term investment programme to house the core medical services in new facilities and rehabilitate the existing facilities for administrative purposes.
Iberdrola today signed an agreement with the EIB and the Instituto de Crédito Oficial (ICO) to drive the green recovery by developing new renewable energy capacity in Spain. To this end, the EIB and ICO will provide €600 million and €200 million, respectively, to the Spanish energy company to finance the construction of over 20 projects with total capacity exceeding 2 000 MW. These new facilities will provide green, competitive energy equal to the average annual energy use of almost 1 million households.
With a view to promoting and expanding climate finance in Europe and beyond, the EIB and the International Climate Finance Accelerator Luxembourg (ICFA) have signed a Memorandum of Understanding (MoU) to strengthen their collaboration.