EIB and IFC developing clean energy lending facility for Kenya
- Mar 30, 2011
The European Investment Bank and IFC, a member of the World Bank Group, are current developing a lending facility to stimulate involvement in clean energy by Kenyan companies. Dedicated lending will help manufacturing, agribusiness, and services sectors companies finance investment in clean energy production that will both improve environmental performance and reduce energy costs.
The two institutions will host discussions with Kenyan banks and energy suppliers to identify how best to stimulate investment and specialist involvement in clean energy projects. The European Investment Bank and IFC are organizing a one-day workshop on March 30 in Nairobi to bring together more than 50 clean energy financial and technical experts to discuss market constraints and measures to improve financial investment in clean energy schemes. Participants will also provide feedback on the proposed financial facility to be provided by the two institutions and made available through Kenyan banks.
Plutarchos Sakellaris, European Investment Bank Vice President for Africa said: “The European Investment Bank is committed to ensuring adequate finance is available for renewable and energy investment in East Africa. As the world’s largest clean energy investor the European Investment Bank stands ready to ensure both expertise and funding is available for local projects and to enable clean energy to make an important contribution to the regions’ energy needs. We are committed to helping local banks develop a strong pipeline of clean energy projects.”
Dolika Banda, IFC Regional Associate Industry Director for Africa, Latin America and the Caribbean, said, “Tackling climate change is one of IFC’s development goals. One way of achieving this is by creating stronger markets for sustainable energy project development and financing for energy efficiency, renewable energy and cleaner production.” Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said, “Our long-term goal is to help establish a sustainable commercial lending market for sustainable energy projects in Africa that supports economic growth and protects the environment.”
The European Investment Bank and IFC will work closely with local banks to provide long-term financing for small and medium enterprises. This model, used successfully in operations around the world, will encourage investment to upgrade technology and replace outdated equipment to increase productivity, cost savings, and emission reductions.
Under this clean energy initiative the EIB and IFC will also advise local businesses on what clean energy technologies to use and which improvements can be made to reduce energy consumption.
The European Investment Bank is a committed to supporting energy in Kenya and lent EUR 183 million for large-scale geothermal generation and transmission projects in Kenya's public sector over the last three years. This new initiative aims to support investment in private sector energy projects.
In Kenya, IFC’s Climate Change Investment Program in Africa (CIPA) is helping financial institutions identify, evaluate, and finance viable renewable energy and energy efficiency projects that reduce greenhouse gas emissions and mitigate climate change.
About the European Investment Bank
The European Investment Bank is the European Union's long-term lending institution owned by the 27 EU member states. In 2010 the EIB lent EUR 72 billion for 460 projects around the world and is the world's largest multinational financial institution. Last year the EIB lent EUR 21 billion for climate action projects and the institutions was recently recognized by Bloomberg as the world’s largest clean energy investor. Outside the EU, the EIB is active in over 150 countries, working to implement the financial pillar of EU external cooperation and development policies (private sector development, infrastructure development, security of energy supply, and environmental sustainability). For more information, visit www.eib.org
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.