The International Finance Corporation (IFC) has promised $19 million in funding as part of a $55 million package to support the new utility in Mocuba, Africa Times reported.According to Africa Times, in addition to the IFC pledge, the funds include $19 million from Climate Investment Funds, and a loan of up to $17 million.
Solar PV plant
“The signing of the Mocuba financing is a great achievement for EdM and Mozambique’s electricity sector,” said Mateus Magala, Chairman of EdM.Magala extended his gratitude to the financing partners for “their excellent cooperation and the hard work in getting the project to this important milestone.”
According to the IFC, this project is part of broader efforts to promote private investment and help bring reliable and clean electricity to consumers while diversifying the energy mix in an effort with long-term climate change impacts in view, Africa Times reported.
Mozambique’s state-owned power utility, EDM, will procure the generated power through a signed 25-year power purchase agreement.Media explained: “The plant is being developed by Scatec Solar, headquartered in Norway, and the local Electricidade de Moçambique (EdM) utility, along with the Norfund development finance agency.
“Other financial support comes from the Emerging Africa Infrastructure Fund (EAIF), with a grant from the Technical Assistance Fund of the Private Infrastructure Development Group.”
Power Purchase Agreement
In November last year, the international independent solar power producer, Scatec Solar declared that in partnership with Norfund, they have secured the sale of solar power over a 25 year period to the state owned utility EDM.The plant is expected to deliver 77,000MWh per year of electricity to the northern regions of the country and produce enough energy to serve about 175,000 households.