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During the month of July, the World Bank, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Asian Development Bank (ADB), the African Development Bank (AfDB), the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB), the Government of Germany, and other donors undertook activities and approved funding for sustainable energy projects in various countries.

World Bank-EBRD-EIB-ADB-AfDB-IDB-CDB31 July 2014: During the month of July, the World Bank, the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Asian Development Bank (ADB), the African Development Bank (AfDB), the Inter-American Development Bank (IDB), the Caribbean Development Bank (CDB), the Government of Germany, and other donors undertook activities and approved funding for sustainable energy projects in Armenia, Austria, Brazil, India, Indonesia, Israel, Kyrgyz Republic, Nepal, Poland, Sri Lanka, Tajikistan, Tunisia and Uruguay, among other countries.

In Indonesia, ADB will provide a loan of up to US$50 million supported by the Clean Technology Fund of the Climate Investments Funds (CIF) to finance the construction of the 240 megawatt (MW) Rantau Dedap geothermal plant. The loan will be used to share the risk burden with the private sector during the project development and exploration phase of the project, located in South Sumatra. [ADB Press Release]

In Sri Lanka, ADB has approved US$150 million as the first part of a dual-tranche loan to finance a 30 MW hydropower plant, and expand and upgrade transmission lines and other power infrastructure. The second US$150 million tranche, scheduled for 2016, will be used to enhance electricity distribution, including through the development of infrastructure to transmit power from two 100 MW wind parks to be built in 2017 and 2020. The loan will also finance smart grid and other demand-side energy efficiency measures, with US$60 million in co-financing from the French Agency for Development (AFD) and US$80 million from the Government of Sri Lanka. [ADB Press Release]

In Nepal, ADB has approved a US$180 million equivalent loan to the Nepal Electricity Authority (NEA) to improve the reliability of the country’s electricity grid, expand electricity access to rural areas, and build transmission capacity to export at least 1200 MW electricity from hydropower to India. Co-financing for the projects, to be completed by the end of 2021, includes a US$120 million loan from EIB, a US$60 million grant from the Government of Norway, and a US$11.2 million grant from the CIF Strategic Climate Fund. [ADB Press Release]

In India, ADB has made a US$50 million equity investment in ReNew Power Ventures Private Limited (ReNew Power), an Indian renewable energy company developing 1000 MW of wind power capacity across the country. [ADB Press Release]

ADB has also approved a US$300 million loan to finance the construction of a 120 MW hydropower plant, purchase of energy efficient equipment for existing facilities, and other electricity generation and distribution upgrades in the northeastern Indian state of Assam. The funding will further support financial management training for two state power companies, Assam Power Generation Corporation and Assam Power Distribution Company. [ADB Press Release]

In Uruguay, IDB has approved US$65.9 million in loans for a 64.8 MW solar power plant. The loans will support private sector construction, operation and maintenance of the facility, which will be a part of the La Jacinta Solar Energy Project in the northwest of the country. [IDB Press Release]

CDB has signed a memorandum of cooperation (MOC) with IDB and the Japan International Cooperation Agency (JICA) to support renewable energy and energy efficiency in the Eastern Caribbean. The MOC, signed during the Japan-Caribbean Community (CARICOM) Conference in Port of Spain, Trinidad and Tobago, aims to facilitate innovative financial arrangements to diversify the energy mix, with an emphasis on geothermal sources. [CDB Press Release] [IDB Press Release]

AfDB presented three funds to investors, project developers, industry representatives, and country stakeholders and donors at a sustainable energy investment seminar held in Copenhagen, Denmark. The Bank, which organized the seminar with the Danish Development Agency (DANIDA) and the UN Environment Programme (UNEP) DTU Partnership, showcased two funds for small- to medium-scale independent power producers (IPPs)—the US$60 million Sustainable Energy Fund for Africa (SEFA) and the US$100 million African Renewable Energy Fund (AREF)—as well as the Africa50 Fund, which is designed to support high-impact infrastructure projects in the energy, transport, communications and water sectors. [AfDB Press Release]

Austria will receive a €260 million loan from the EIB to develop hydropower in Vorarlberg region. The loan will be directed to the federal State-owned energy supply company Illwerke AG for the Obervermuntwerk II pumped storage power plant, designed to reduce network losses of electricity and improve grid stability. [EIB Press Release]

In Poland, EIB has agreed to lend the Polish energy company TAURON Polska Energia SA up to €71 million to support investments in energy efficiency and renewable energy in the southern part of the country. The funds will be used to expand the company’s electricity distribution networks, upgrade existing equipment, refurbish several hydropower plants, and facilitate a smart metering pilot programme. [EIB Press Release]

In Israel, EIB has concluded a €150 million loan agreement to support a commercial-scale thermo-solar power plant to begin operation in 2017 in the Negev desert. At 121 MW, the plant will be the largest solar power plant in the country and the first financed by EIB in the region. [EIB Press Release]

In Armenia, EBRD has, as part of its Caucasus Energy Efficiency Programme (CEEP), signed a $10 million agreement with HSBC Bank Armenia CJSC to help decrease the energy intensity of the country’s economy and promote energy efficiency across various sectors. The amount will be on-lent to companies to support capital investments to enhance energy efficiency and help them achieve a 20% reduction in energy consumption. [EBRD Press Release]

Armenia will also receive a US$40 million loan from the World Bank, complemented with an additional US$10 million from the Government of Armenia, to reduce transmission losses in the electricity grid, including through the replacement of several substations and outdated transmission lines. [World Bank Press Release]

In Tajikistan, EBRD has signed a $50 million loan to upgrade the Qairokkum hydropower plant, the largest of the Bank’s projects in the country to date. The amount will finance the first phase of the project, which will include restructuring the State-owned power company Barki Tojik and upgrading the plant’s generating capacity from 126 MW to 142 MW. An additional $21 million in complementary donors funds will come from the CIF’s Pilot Program for Climate Resilience (PPCR), and a further $4.7 million from Governments of Austria and the UK, and the Shareholder Special Fund of the EBRD. [EBRD Press Release]

In the Kyrgyz Republic, EBRD has signed two loan agreements totaling US$9 million to continue its support of energy efficiency improvements in the country. A US$5 million loan to the Kyrgyz Investment and Credit Bank (KICB), as well as a second US$4 million loan to the Demir Kyrgyz International Bank (DKIB), will be on-lent to companies and households under the Kyrgyz Sustainable Energy Financing Facility (KyrSEFF). [EBRD Press Release 1] [EBRD Press Release 2]

The World Bank has also signed an agreement in the Kyrgyz Republic to improve the reliability of the electricity grid with improvements to the service area of the State-owned power distribution company Severelectro JSC. The US$25 million equivalent loan will also be used to improve the company’s financial viability and strengthen its governance structure and operations. [World Bank Press Release]

The Governments of Brazil and Germany have signed loan agreements of €250 million for the construction of wind farms in Brazil. The loans contribute to a strategic partnership between the two countries, called ‘Cooperation for Sustainable Development,’ centered on the promotion of renewable energy and energy efficiency, protection of tropical forests, and conservation of biodiversity. [German Federal Ministry for Economic Cooperation and Development Press Release]

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