and Canada invest in Kinguele Aval hydropower plant to support clean energy production in Gabon
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Libreville, Gabon, July 2, 2021 – To increase clean energy production capacity in Gabon, IFC, the government of Gabon, Meridiam Infrastructure Africa Fund FIPS (MIAF), Meridiam Infrastructure Africa Parallel Fund FIPS (MIAPF) and the Gabonese Strategic Investment Fund (FGIS) , with the support of the Government of Canada, today announced a financial package for the Kinguele Aval hydropower plant, the leading independent power producer (IPP) in Gabon.
The 35 MW hydropower plant, sponsored by Meridiam and FGIS, will bring clean, low-cost power generation capacity to Libreville, the capital of Gabon. IFC expects the project to generate 203 GWh of electricity, or about 13% of the current total production of the Estuary province (or 9% of the country’s total production), enough to serve 32,000 customers. and save over 90,000 tonnes of CO2 emissions per year.
“The Kinguele Aval hydroelectric power station is a flagship project for Gabon which has benefited from a set of complementary services and instruments from the World Bank Group. By adding an electricity supply that meets Gabon’s growing demand, the Kinguele Aval hydropower plant will increase economic productivity in Gabon and create hundreds of jobs to drive green, inclusive and resilient growth, ”said Sylvain Kakou, IFC Country Director for Central Africa.
Gabon suffered from underinvestment in the electricity sector, particularly in generation. The Kinguele Aval hydropower plant highlights Gabon’s energy transition efforts by replacing expensive and polluting thermal energy and demonstrating a commercially viable and sustainable way to develop the country’s under-exploited hydropower potential.
The total cost of the project is estimated at 178 million euros. To support the project, IFC lends up to 33 million euros on its own account and grants a senior senior loan on preferential terms of up to 25 million dollars (or up to 20 million dollars). ‘euros) as part of the Canada-IFC Renewable Energy Program for Africa.
IFC has also mobilized additional funding of € 98 million through the African Development Bank (AfDB), the Emerging Africa Infrastructure Fund (EAIF) and the Development Bank of Southern Africa. (DBSA). In addition, IFC’s sister organization, the Multilateral Investment Guarantee Agency (MIGA), is expected to provide guarantees in favor of Meridiam. IFC will also provide the interest rate and currency swaps required for financing.
IFC will work intensively with all stakeholders and support the implementation of the project in accordance with IFC’s environmental and social standards. This includes a multi-stakeholder agreement involving the government of Gabon, The Nature Conservancy (TNC) and IFC for the consolidation of a management strategy to guide any future development of hydropower in the Mbé-Komo river system in a way that preserves ecosystem services and biodiversity.
IFC’s participation in the Kinguele Aval hydropower plant is well aligned with the World Bank Group’s new Climate Change Action Plan (CCAP) which aims to mobilize private sector solutions to help emerging countries and developing to promote investments in clean energies and generate non-oil revenues to contribute to economic diversification.
Construction of the Kinguele Aval hydropower plant is expected to start in the third quarter of 2021 and be completed in 40 months.
IFC, a member of the World Bank Group, is the world’s largest private sector-focused development institution in emerging markets. We work in over 100 countries, using our capital, expertise and influence to create markets and opportunities in developing countries. In FY2020, we invested $ 22 billion in private businesses and financial institutions in developing countries, harnessing the power of the private sector to end extreme poverty and foster shared prosperity. For more information, visit www.ifc.org.
About the Canada-IFC Renewable Energy Program for Africa
The Canada-IFC Renewable Energy Program for Africa promotes private sector financing for renewable energy projects in sub-Saharan Africa as a means of improving access to affordable and sustainable energy services that can play an important role in reducing poverty, reducing gender inequalities and combating climate change. Canada has committed C $ 150 million to this climate program to structure blended finance solutions that enable high impact energy projects in sub-Saharan Africa. The program is part of Canada’s support for the Africa Renewable Energy Initiative: http://www.arei.org/.
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