IFC announces USD 55m for solar park in Mozambique

The International Finance Corporation (IFC) has committed to provide USD 55 million (EUR 48.9m) in financing for the construction of a 40.5-MW solar park in Mozambique, the lender said on Wednesday.

The financing package includes USD 19 million from the IFC’s own account, USD 19 million from Climate Investment Funds and an up to USD-17-million syndicated credit facility. In addition, the scheme will get a USD-7-million viability gap funding (VGF) grant from the Technical Assistance Fund of the Private Infrastructure Development Group.

The photovoltaic (PV) park in Mocuba, in Zambezia province, is touted as the first utility-scale plant in Mozambique. The USD-80-million project is being developed by Norwegian independent power producer Scatec Solar ASA (OSL:SSO), the Norwegian Investment Fund for Developing Countries (Norfund), and state-owned utility Electricidade de Mocambique (EDM). The three parties hold stakes of 52.5%, 22.5% and 25%, respectively.

Once operational, the plant will generate power for rural areas and sell its output to EDM under a 25-year power purchase agreement.

(USD 1.0 = EUR 0.889)

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