The Sustainable Energy Fund for Africa has approved a grant of 866,000 euros to prepare the construction of a hydroelectric power plant in Saltinho, southern Guinea-Bissau, said the African Development Bank (ADB).
The hydroelectric power station with an installed capacity of 20 megawatts, will supply the city of Bissau and even neighboring countries within the scope of the Organization for the Development of the River Gambia.
The amount is intended to pay for technical assistance to prepare the project in order to attract private investors and contribute to bank funding. The grant will cover a technical feasibility study, the definition of institutional and financial relationships to create an independent power producer, or create a public-private partnership.
Once completed, this regional project will boost the total installed capacity in the country lead to energy diversification and significantly decrease the average cost of production.
The African Development Bank approved a €121.5-million package to the Gambia River Basin Development Organization (OMVG) to improve electricity access and provide renewable, clean and affordable energy in The Gambia, Guinea, Guinea-Bissau and Senegal.
The Sustainable Energy Fund for Africa (SEFA) is managed by the African Development Bank and funded with 54 million euros by the governments of Denmark and the US, to support renewable energy projects and energy efficiency on a small and medium scale in Africa.