The International Finance Corporation (IFC), a member of the World Bank Group, will provide a financial package of US$55 million to build Mozambique’s first utility-scale PV project. The financing includes US$19 million from IFC’s own account, US$19 million from Climate Investment Funds and a syndicated loan of up to US$17 million.
IFC’s financing will support the development of a 40.5 MW solar photovoltaic plant in Mocuba, Mozambique, being developed by Norway-based independent power producer Scatec Solar, Norway’s development finance agency Norfund, and Mozambique’s electricity utility Electricidade de Moçambique (EdM). Funds are being mobilized from Emerging Africa Infrastructure Fund, which provides debt products to private sector infrastructure projects in Sub-Saharan Africa.
“The signing of the Mocuba financing is a great achievement for EdM and Mozambique's electricity sector. EdM wishes to thank Scatec Solar, Norfund, PIDG and IFC for their excellent cooperation and the hard work in getting the project to this important milestone,” said Mateus Magala, Chairman of EdM.
“Our investment in Mozambique’s first utility-scale solar power plant reaffirms IFC’s commitment to renewable energy in emerging markets,” said IFC Country Manager Jumoke Jagun-Dokunmu. "There is limited access to electricity in Mozambique, particularly in rural areas. This investment will expand electricity supply in one of the least developed regions of the country while also supporting electricity infrastructure and promoting foreign direct investments at an important time.”
The power generated from the plant will be sold to EdM, the state-owned public electric utility, as part of a 25-year power purchase agreement.
Read the Full Press Release here.