GABON – The Board of Directors of the African Development Bank has granted €39 million (US$46.27m) loan for the implementation of the first independent producer of hydroelectric power project in Gabon.
This is a loan of €20 million (US$23.73m) from the African Development Bank, €10 million (US$11.86m) from the Africa Growing Together Fund (AGTF) and concessional financing of €9 million (US$10.68m) from the Fund for Sustainable Energy in Africa (SEFA), a special multi-donor fund managed by the African Development Bank.
Other donors, including the International Finance Corporation (IFC, the private sector window of the World Bank), the Canada-IFC Program for Renewable Energy in Africa, the Development Bank of Southern Africa and the Fund for the infrastructure development in emerging Africa, will provide funding to reach €133.8 million (US$158.74m).
“We are delighted to support the first independent power producer project in Gabon,” said Wale Shonibare, Director of the Financial Solutions, Policy and Energy Regulation Department at the African Development Bank.
The Bank loan is granted to the company Asonha Énergie SA, created within the framework of this project.
The Kinguélé downstream dam will be built on the Mbei river, 90 km east of Libreville, downstream from the Tchimbélé (69 MW) and upstream Kinguélé (58 MW) hydroelectric power stations.
“Kinguélé Aval embodies the catalytic effect of SEFA and the co-financing of funds such as the Africa Growing Together Fund that the African Development Bank provides to help developers achieve sustainable renewable projects in an approach to energy transition in Africa,” said Dr Kevin Kariuki, Vice President of the African Development Bank in charge of Electricity, Energy, Climate and Green Growth.
The project is in line with the Emerging Gabon Strategic Plan and the country’s commitment to climate change through its national contribution to reduce by at least 50% by 2050, greenhouse gas emissions compared to uncontrolled development scenario.
The project is also consistent with the strategies and policies of the African Development Bank, in particular the New Pact for Energy in Africa and the “Light up Africa and supply it with energy” priority of the “High 5”.