IFC to lend up to USD 26m for 34-MWp Zambian solar farm

The International Finance Corporation (IFC) may provide up to USD 26 million (EUR 22m) in financing for a 34-MWp solar project in Zambia, 80% owned by Enel Green Power Africa Srl.

According to information on the lender’s website, it is mulling an A-Loan of up to USD 13 million and a concessional senior loan of a similar size, to come from the IFC-Canada Climate Change Program. A board meeting, on which the financing will be discussed, is planned for November 20.

The European Investment Bank (EIB) is also expected to extend an up to USD-13-million parallel senior loan.

The solar photovoltaic (PV) project in the Lusaka South Multi-Facility Economic Zone requires a total investment of about USD 45 million. Its developer, Ngonye Power Co Ltd, is 80% held by Enel Green Power, while state-owned investment holding company Industrial Development Corp Ltd (IDC) owns the rest.

The project has a 25-year power purchase agreement (PPA) with state-owned electricity utility ZESCO won in the Scaling Solar tender in the summer of 2016.

(USD 1 = EUR 0.85)

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