The financing involves senior loans of up to $10 million from the International Financing Corporation, a member of the World Bank Group, up to $12 million from the IFC-Canada Climate Change Program and up to $11.75 million from the European Investment Bank.
“The signing of this financing agreement marks an important step toward the start of an operational presence of Enel in Zambia, helping us establish a stronger foothold in the country,” said Antonio Cammisecra, Head of Enel’s Global Renewable Energies division Enel Green Power. “We will be contributing to Zambia’s sustainable development through our renewable energy, leveraging on the country’s abundance of resources and cooperation with reputed international and local partners within the framework of the Scaling Solar program.”
Ngonye, Enel’s first power plant in Zambia, is located in Lusaka South Multi-Facility Economic Zone in the country’s south, and is part of the Scaling Solar program, which in June, 2016, awarded Enel the right to develop, finance, construct, own and operate the plant. Enel will be investing a total of approximately $40 million in the construction of the facility, which is expected to produce around 70 GWh per year, helping the Zambia reduce shortages and diversifying its energy generation mix.
The Ngonye solar plant will be owned by a special purpose vehicle in which EGP will hold 80 percent and the Industrial Development Corporation of Zambia (IDC) will have a 20 percent minority stake. The solar project also involves a 25-year power purchase agreement signed with Zambia’s state-owned utility ZESCO.
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 GW 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.”