African Development Bank to Grant € 39 Million Loan for Gabon’s First Independent Hydroelectric Project
The Board of Directors of the African Development Bank Group (www.AfDB.org) approved a loan of 39 million euros for the construction of the KinguÃ©lÃ© Aval hydroelectric project in Gabon.
The envelope includes â¬ 20 million from the African Development Bank, â¬ 10 million from the Africa Growing Together Fund and â¬ 9 million in concessional funding from the Sustainable Energy Fund for Africa, a special fund multi-donor managed by the African Development Bank.
Additional funding to meet the â¬ 133.8 million budget for the project will come from the World Bank Group International Finance Corporation, the Canada-IFC Program for Renewable Energy in Africa, the Development Bank of the Southern Africa and the Emerging Africa Infrastructure Development Fund. The loan funds will be paid to Asonha Ãnergie SA, a company created to manage the project.
The project involves the design, construction and operation of a 34.1 megawatt power plant with a net annual output of 203 gigawatt hours. The KinguÃ©lÃ© Aval dam will be built on the Mbei River, 90 km east of the Gabonese capital, Libreville, downstream from the TchimbÃ©lÃ© (69 MW) and KinguÃ©lÃ© Amont (58 MW) hydroelectric plants.
“We are delighted to support the first IPP project in Gabon,” said Mr. Wale Shonibare, Director of the Department of Financial Solutions, Energy Policy and Regulation at the African Development Bank. âKinguÃ©lÃ© Aval is a flagship project, and the success of the model provides a useful model for future projects that will help the country move closer to the government’s goal of 100% clean energy. “
“KinguÃ©lÃ© Aval embodies the catalytic effect of SEFA and the co-financing of the Africa Growing Together Fund that the African Development Bank is setting up to help developers achieve sustainable renewable projects that help Africa’s energy transition”, said Dr Kevin Kariuki, Vice President President of the Energy, Energy, Climate and Green Growth division at the African Development Bank.
The project aligns with the âEmerging Gabonâ Strategic Plan and the country’s commitment to tackle climate change as part of the nationally determined contributions of the Paris Agreement. The project is also in line with the African Development Bank’s New Deal on Energy for Africa and the High-5 âLight up and Power Africaâ strategic priority.
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Romaric Ollo HIEN Department of Communication and External Relations African Development Bank Email: [email protected]
Abel Brook Senior Investment Officer African Development Bank
SEFA is a special fund managed by the African Development Bank that provides catalytic finance for renewable energy. The overall objective of SEFA is to contribute to universal access to affordable, reliable, sustainable and modern energy services for all in Africa, in accordance with the Bank’s New Deal on Energy for Africa and the Objective 7. SEFA was established in 2011 in partnership with the Government of Denmark (https://um.dk/en/danida) and has since received contributions from US governments (www.usaid.gov) , UK (https://bit.ly/3xvlaL9), Italy (www.minambiente.it), Spain (www.mineco.gob.es) and Sweden (www.sida.se/English), Nordic Development Fund (www.ndf.int) and Germany (www.bmz .de / fr).
The Africa Growing Together Fund (AGTF), a $ 2 billion facility sponsored by the People’s Bank of China and administered by the African Development Bank, also approved a $ 50 million loan to the Federal Government of Nigeria to co-finance the project. .