May 13 (Renewables Now) - The Clean Technology Fund (CTF), one of two within the Climate Investment Funds (CIF), has approved a USD-10-million (EUR 9.2m) concessional senior loan for the development of the 50-MW Tulu Moye geothermal project in Ethiopia, the African Development Bank (AfDB) announced on Friday.
The bank, which serves as an implementing agency of the CIF, said that it welcomes the decision of the CTF trust fund committee to support the project, seen as a critical step to Ethiopia's energy diversity and resilience.
The funds will be drawn from the Dedicated Private Sector Program III designed to provide risk-appropriate financing for high-impact, large-scale private sector projects in clean technologies, the AfDB added.
The Tulu Moye project will be realised under a build, own, operate and transfer (BOOT) scheme. It is developed by Tulu Moye Geothermal Operations Plc (TMGO), behind which are Paris-based asset manager Meridiam and Reykjavik Geothermal Ltd.
The geothermal power plant will be located in Oromia Regional State. According to TMGO’s social media channels, drilling commenced in early March this year and the works have continued despite challenges caused by the coronavirus pandemic.
(USD 1.0 = EUR 0.922)