EIB to lend USD 11.8m for 28-MW solar project in Zambia

The European Investment Bank (EIB) said on Wednesday it has signed a deal to provide up to USD 11.75 million (EUR 10.1m) in debt for the construction of a 28-MW solar park in Zambia.

The loan agreement is for the Ngonye photovoltaic (PV) project, proposed by Italy-based energy giant Enel Group and Zambia’s Industrial Development Corporation (IDC).

With a Direct Current (DC) capacity of 34 MW, the Ngonye project will be located in the industrial zone of Zambia’s capital Lusaka. Once operational, the plant is expected to generate around 70 GWh of electricity annually, facilitating the African nation in lowering power shortages and diversifying its energy mix.

Apart from being financed by Enel Group, the project will benefit from up to USD 10 million in senior loans from the World Bank’s International Financing Corporation (IFC). It will also get a concessional loan of up to USD 12 million from the IFC-Canada Climate Change Programme.

The project will be implemented under the World Bank Group’s Scaling Solar programme, which helps governments to quickly contract large-scale solar capacity with private financing.

(USD 1.0 = EUR 0.863)

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