Scatec Solar, KLP Norfund Investments and Electricidade de Moçambique (EDM) completed the financing process and began construction of a 40-megawatt solar power plant in Mozambique, the Oslo-based company said in a statement on Tuesday.
The statement said that the financing will be provided in the form of loans from the International Finance Corporation (IFC), of the World Bank group and the Emerging Africa Infrastructure Fund (EAIF).
EAIF, which operates under the umbrella of the Private Infrastructure Development Group, is currently funded by the governments of the United Kingdom, the Netherlands, Sweden, and Switzerland and by developments banks KFW of Germany and FMO of the Netherlands, according to the EAIF website.
The plant will be located in the city of Mocuba, Zambezia province, and is expected to produce 79,000 megawatts of electricity per year, to be injected into the Mozambican power grid and supplying up to 175,000 homes.
The costs of this project are estimated at US$76 million, achieved through a capital injection of US$14 million, a US$7.0 million grant, and a US$55 million loan.
The statement also said that IFC has provided a US$19 million loan, the Climate Investment Fund, a US$19 million preferential loan and the Emerging Africa Infrastructure Fund, a syndicated loan of US$17 million.
The partners in this project are Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and Electricidade de Moçambique (25%), with the Scatec providing the engineering project, the purchase of equipment and the construction as well as the operation and maintenance of the plant. (macauhub)