IFC considers financing solar project in Mozambique

The International Finance Corporation (IFC), a member of the World Bank, has disclosed on its website that is considering financing a 40.5 MW solar PV in Mozambique. The project is located on a site of approximately 120 hectares in Mocuba, about 175km from the commercial port of Quelimane in Northern-central Mozambique.

The project consists of the development, financing, construction, operation and maintenance of the plant. The electricity generated from the Project will injected into the Mozambican Northern grid. The project has a 25-year Power Purchase Agreement with Electricidade de Mocambique (EDM).

The project company is Central Solar de Mocuba S.A., a special purpose vehicle to be incorporated in Mozambique. The company will be 52.5% owned by Scatec, 22.5% owned by Norfund and 25% owned by EDM. Scatec is a Norwegian listed company with a track-record of 279 MW in operations. Norfund is the Norwegian Investment Fund for Developing Countries and a leading renewable energy investor in Africa. EDM is Mozambique's state-owned public power utility.

The project cost is estimated at US$84 million (including VAT).

IFC intends to provide an A loan of up to US$21 million, and a B loan of up to US$21 million. In addition, IFC is considering mobilizing and a concessional senior loan funding of up to US$21 million from the Climate Investment Fund (CIF) and/or IFC Canada Climate Change Program (IFC-CCCP), in IFC’s capacity as implementing entity of the CIF/IFC-CCCP.