IFC finances Mozambique’s first solar plant with $55 million

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The International Financial Corporation, a member of the World Bank, has agreed to provide financial support of $55 million for a 40 MW PV project in Mozambique.

The company said the loan includes $19 million from IFC’s own account, $19 million from Climate Investment Funds, and a syndicated loan of up to $17 million. IFC stressed that the funds were mobilized by the Emerging Africa Infrastructure Fund, a public-private partnership providing long-term debt finance for construction and development of private infrastructure in sub-Saharan Africa.

The project is being developed by Norway-based independent power producer Scatec Solar, Norway’s development finance agency Norfund, and Mozambique’s power utility Electricidade de Moçambique (EdM).

Power generated by the installation will be sold to EdM under a 25-year PPA. The plant will be constructed close to the city of Mocuba in the Zambezia Province, and represents the country‘s first step towards solar deployment.

Scatec announced the project in November of 2016. At the time, the company said $80 million will be needed for the development of the project, with Scatec Solar taking on 52% of the debt, KLP Norfund Investments taking on 22.5% and EDM taking on the remaining 25%.

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