Maputo, Mozambique, June 7, 2017 — IFC,
a member of the World Bank Group, today announced a landmark financing
package of $55 million to build Mozambique’s first utility scale solar
PV plant, which will help increase electricity sector climate resilience
and deliver power to rural areas. It includes $19 million from IFC’s own
account, $19 million from Climate Investment Funds, and a syndicated loan
of up to $17 million.
IFC’s financing will support the development of a 40.5 MW solar photovoltaic
plant in Mocuba, Mozambique, being developed by Norway-based independent
power producer Scatec Solar, Norway’s development finance agency Norfund,
and Mozambique’s electricity utility Electricidade de Moçambique (EdM).
Funds are being mobilized from Emerging Africa Infrastructure Fund, which
provides debt products to private sector infrastructure projects in Sub-Saharan
Africa. The project will also receive a $7 million Viability Gap Funding
grant from the Technical Assistance Fund of the Private Infrastructure
Development Group, a multi-donor funded institution that encourages private
investment in infrastructure in emerging markets.
“Scatec Solar is committed to harnessing Mozambique’s solar potential
and infusing grid stability. This is especially important for a country
that relies on a long distance power transmission system that is vulnerable
to interruptions. We will leverage IFC’s knowledge and support to ensure
greater resilience for the country’s electricity sector,” said Raymond
Carlsen, CEO, Scatec Solar ASA.
“The signing of the Mocuba financing is a great achievement for EdM and
Mozambique's electricity sector. EdM wishes to thank Scatec Solar, Norfund,
PIDG and IFC for their excellent cooperation and the hard work in getting
the project to this important milestone,” said Mateus Magala, Chairman
“Access to reliable energy is a prerequisite for development and this
solar power plant will be an important first step in increasing Mozambique’s
renewable power generation. We appreciate that Norfund’s additional credit
support played an instrumental role in helping make the financing package
viable”, said Norfund’s CEO Kjell Roland.
Severe power deficits hamper economic and social development in Mozambique.
The project is part of IFC’s broader efforts to promote private investment
and help bring reliable and clean electricity to consumers and diversify
the energy mix in order to help adapt to long term climate change impacts.
“Our investment in Mozambique’s first utility scale solar power plant
reaffirms IFC’s commitment to renewable energy in emerging markets,”
said IFC Country Manager Jumoke
Jagun-Dokunmu. "There is limited
access to electricity in Mozambique, particularly in rural areas. This
investment will expand electricity supply in one of the least developed
regions of the country while also supporting electricity infrastructure
and promoting foreign direct investments at an important time.”
The power generated from the plant will be sold to EdM, the state-owned
public electric utility, as part of a 25-year power purchase agreement.
About Climate Investment Funds
The Climate Investment Funds are unique financing instruments designed
to initiate transformational change towards low-carbon and climate-resilient
development through scaled-up financing channeled through the Multilateral
Development Banks, including IFC. CIF funding for this project is provided
through the Clean Technology Fund and the Pilot Program for Climate Resilience.
CTF provides developing countries with positive incentives to scale up
the demonstration, deployment, and transfer of low carbon technologies
with significant potential for long-term greenhouse gas emissions savings.
PPCR assists national governments in integrating climate resilience into
development planning and provides funding to innovative public and private
sector solutions that address climate-related risks. For more information,
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit