GCF, AfDB agree on USD-154m financing of renewables in Zambia

Solar panels. Photo by: World Bank Group (www.scalingsolar.org).

November 21 (Renewables Now) - The Green Climate Fund (GCF) and the African Development Bank (AfDB) have agreed to provide a combined USD 154 million (EUR 139m) in financing for renewable energy projects in Zambia.

The two parties have signed today the Funded Activity Agreement (FAA), which sets the required legal arrangements for the commitment of GCF’s funds. About USD 50 million in debt financing will come from GCF and it will also grant USD 2.5 million to back the technical assistance component of the project.

In turn, AfDB will provide co-financing of USD 51.5 million, while the rest will come from banks and private sector investors.

The announcement says that the funds will support 100 MW of renewable energy projects, primarily of the small-scale solar type. Furthermore, technical assistance will be provided for the development of sustainable rural electrification policies.

(USD 1.0 = EUR 0.902)

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