IFC, a member of the World Bank Group, and the Government of Canada are providing approximately $25 million in financing for the second Scaling Solar project under development in Zambia, allowing construction to start on a solar plant that will provide clean and affordable power to ease the country’s energy shortages.
The financing package arranged by IFC includes senior loans of up to $10 million from IFC and up to $12 million from the IFC-Canada Climate Change Program, plus $2.5 million in interest-rate swaps from IFC and a $2.8 million partial risk guarantee from the World Bank’s International Development Agency. The European Investment Bank is also providing $11.75 million in loans to the project that will be built near the capital Lusaka by Enel.
Scaling Solar is a World Bank Group initiative that offers competitive bidding and simplified procurement for grid-tied photovoltaic power, even in small markets. The program is supporting the development of more than 1 gigawatt of solar power across Africa.
“Scaling Solar has set a new standard for the development of solar power in Africa, starting with these two projects in Zambia,” said IFC CEO Philippe Le Houérou. “We are very pleased to see these projects moving toward construction as the program continues to expand across Africa and into new regions.”
Construction on the first Scaling Solar project in Zambia, under development by Neoen/First Solar, is expected to start shortly. That project also located near Lusaka has a tariff equivalent to 6 U.S. cents per kilowatt. The project built by Enel will provide power to the Zambian grid at the equivalent of 7.8 U.S. cents per kilowatt hour — also one of the lowest prices for electricity in the region.
“It is exciting to see this project move toward construction,” said Mateyo C. Kaluba, CEO of Zambia’s Industrial Development Corporation. “We are looking forward to continued engagement with Scaling Solar on a new round of projects as we continue to advance new, clean, affordable energy sources in Zambia.”
About Scaling Solar
Scaling Solar is a World Bank Group solution that makes it easier for governments to quickly procure and develop large-scale solar projects with private financing. It includes a ‘one-stop shop’ package of technical assistance, templated documents, pre-approved financing, insurance products, and guarantees. Scaling Solar has financing support of USAID’s Power Africa, the Private Infrastructure Development Group company, DevCo, the Ministry of Foreign Affairs of the Netherlands, the Ministry of Foreign Affairs of Denmark, and the UK Department for International Development. For more information, please visit www.scalingsolar.org
About the IFC-Canada Climate Change Program
The IFC-Canada Climate Change Program promotes private sector financing for clean energy projects and received funding under Canada’s fast-start financing to catalyze investments in renewable, low-carbon technologies that would not otherwise happen. The Government of Canada is committed to support climate change action and is delivering CAD $2.65 billion between 2015 and 2020 to support developing countries’ transition to low carbon economies and adapt to the impacts of climate change. For more information, visit https://climate-change.canada.ca/finance/
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org