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The African Development Bank has approved a $129 million loan for a hydroelectric power producer to modernise its production system.
This is in-line with Hidroeléctrica de Cahora Bassa’s (HCB), the largest independent power producer (IPP) in Southern Africa, Vital Capex programme. HCB provides hydroelectric power to Mozambique and the Southern African Development Community (SADC).
The package comprises up to $103 million from the African Development Bank and up to $25.9 million from the Africa Growing Together Fund.
The modernisation will extend the life of the plant by at least 25 years, enhance the reliability of energy delivery and reduce outages. It will also enable the company to fulfil its contractual obligations to off-takers and enhance regional integration of the electricity sector in SADC. It will also ensure the sustainability of energy security of the community, particular South Africa, Mozambique and Zimbabwe.
The Vice President of the AfDB’s Power, Energy, Climate Change and Green Growth Complex, Kevin Kariuki, said: “We are delighted to support the Vital Capex programme, given HCB’s central role in the Southern African Power Pool. Additionally, HCB’s increased capacity, enhanced reliability and ability to provide ancillary services will facilitate greater integration of variable renewable energy sources such as solar PV and wind in the wider region.”
Also commenting, the Bank’s Director for Energy Financial Solutions, Policy & Regulations, Wale Shonibare, said: “The Bank’s support to HCB is well aligned with its vision of integrating African electricity markets to promote the supply of affordable and reliable electricity to consumers in the region.”
The loan aligns with one of the Bank’s “High Fives” objectives to “Light Up and Power Africa” under its New Deal on Energy for Africa. |
