Ethiopia approves Danish loan for 100-MW Assela wind project

The Ethiopian parliament last week approved the loan agreement between the finance ministry and Danish lender Danske Bank A/S (CPH:DANSKE) aimed at financing the 100-MW Assela wind farm project.

The loan of EUR 117.3 million (USD 136.5m), to be repaid in 20 years, including a five-year grace period, was approved unanimously by the House of Peoples’ Representatives, the parliament said on its website.

The Danske Bank loan is supported by the Danish government through the ministry of foreign affairs’ development assistance Danida.

With funds in hand, the Assela project is now moving towards the construction phase. The wind farm will be located some 150 kilometres (93.2 miles) south of Addis Ababa, near the town of Iteya in the Oromia regional state. Wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) will be responsible for the build.

Once connected, the 29-turbine wind farm will generate some 330,000 kWh per year and supply electricity to over three million people, said the Danish embassy in Addis Ababa.

“I am pleased to see the agreement to develop the Assela I Wind Farm, which will diversify the Ethiopian renewable energy mix, has been passed by the Parliament. I am grateful to the Danish government’s generosity to provide grant and concessional finance,” Seleshi Bekele, the Ethiopian minister of water, irrigation and energy, said in a statement provided by the Danish embassy.

According to the embassy, around 60 million people, which is over half of Ethiopia’s population, have no access to electricity.

(EUR 1.0 = USD 1.164)

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