October 2015: During September 2015, the African Development Bank (AfDB), the Asian Development Bank (ADB), the Clean Investment Funds (CIF), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), the Inter-American Development Bank (IDB), the International Finance Corporation (IFC) and the World Bank, among others, announced sustainable energy project funding and related plans. AfDB and IFC launched publications and reported on events.
The announced sustainable energy projects are being implemented in France, Honduras, Jordan, Lebanon, Myanmar, Nepal, Poland, Slovak Republic, Turkey, Uganda and Uzbekistan, as well as the regions of Central and Southern Africa, West Africa and the Pacific.
In France, EIB will provide a €100 million loan to improve energy efficiency and upgrade the infrastructure of educational institutions in the Seine-et-Marne department. [EIB Press Release]
In Honduras, IDB has approved a US$5.5 million loan to enable the country’s largest scrap materials recycling company, Inversions Materiales S.R.L. (Inverna), to purchase and install 1 mega-watt (MW) of solar photovoltaic capacity. The Canadian Climate Fund for the Private Sector in the Americas is co-financing the project. [IDB Press Release]
In Jordan, EBRD’s Finance and Technology Transfer Centre for Climate Change (FINTECC) programme is providing US$180,000 in financing to enhance the energy efficiency of one of the country’s leading poultry producers. The recipient, Al Jazeera Agricultural Company PSC, will use the funds to to reduce diesel use through the installation of high-efficiency heating systems. [EBRD Press Release]
Also in Jordan, the World Bank announced a US$250 million loan for enacting electricity and water subsidy reforms, with the goal of delivering clean and enhancing resource efficiency. [IFC Press Release]
In Lebanon, IFC provided US$180 million for energy efficiency and other green projects aimed at sustainably cutting costs and spurring growth of Lebanese companies. [IFC Press Release]
In Myanmar, IFC signed an advisory services agreement with the Government to improve the environmental and social risk management of hydropower projects. IFC will assist Myanmar’s Ministry of Electric Power and Ministry of Environmental Conservation and Forestry by, among others, commissioning a country-wide strategic environmental assessment; engaging stakeholders; and designing benefit-sharing arrangements. [IFC Press Release]
Also in Myanmar, the World Bank approved a US$400 million equivalent loan to increase access to electricity in the country. [IFC Press Release]
In Nepal, the World Bank approved a US$20 million credit for the Power Sector Reform and Sustainable Hydropower Development Project. The Government of Nepal will receive the amount to strengthen the ability of power sector agencies to enact regulatory and institutional reforms, as well as plan and prepare hydropower projects in line with international best practices. [World Bank Press Release]
In Poland, EBRD’s Polish Sustainable Financing Facility (PolSEFF) programme will provide a loan of up to €50 million to support sustainable energy investment in local, small, and medium-sized enterprises (SMEs). The leasing company BZ WBK Lease will use the funds to reduce carbon intensity and improve the energy efficiency in the country by purchasing and leasing sustainable energy equipment to eligible enterprises. [EBRD Press Release]
In the Slovak Republic, EBRD will issue a €15m facility to Všeobecná úverová banka, a.s. (VUB) under the third phase of EBRD’s Sustainable Energy Finance Facility in the Slovak Republic (SlovSEFF III). VUB will lend the funds on to private industry and construction companies for renewable energy projects and energy efficiency investments. [EBRD Press Release]
In Turkey, EBRD and CIF Clean Technology will issue a €26 million financing package to promote energy efficiency and advanced environmental practices in Izmir province. The amount will go to Ege Profil Ticaret ve Sanayi A.Ş., the second largest PVC profile maker in the country. The package will finance the construction and operational resource efficiency of an environmentally-friendly PVC profile manufacturing plant, with the goal of bringing the company’s recyling rate to 15%. [EBRD Press Release]
Also in Turkey, IFC will provide a US$75 million loan to the country’s largest private investment and development bank to boost lending for resource efficiency and renewable energy. The bank, called the Industrial Development Bank of Turkey (TSKB), will use the funds to finance investment across all sectors in the country, helping to reduce Turkey’s dependence on fossil fuel imports. [IFC Press Release]
In Uganda, AfDB approved US$121 million for the Uganda Rural Electricity Access Project, which aims to improve access to electricity for rural households, businesses and public institutions. The sum consists of a US$100 million loan from the Bank Group and additional €10.205 million grant mobilized from the Sustainable Energy for All (SE4All) window of the EU-Africa Infrastructure Trust Fund (EU-AITF). The package will, among others, help connect nearly 60,000 households to the grid and support the Rural Electrification Agency to execute and monitor feasibility studies and social and environmental assessments. [AfDB Press Release]
In Uzbekistan, AfDB approved a US$300 million loan for the final stage of a program to install 3.1 million smart meters covering 6.3 million customers across the country. The program is designed to improve billing, cut power losses and enhance the power sector’s financial sustainability. An energy efficiency awareness-building campaign will accompany the five-year initiative. AfDB also approved a US$150 million loan to expand and modernize the electricity grid in the northwestern part of the country. The amount will contribute to improving the capacity and stability of the network, as well as reduce transmission losses and enhance energy efficiency. [AfDB Press Release, 18 September] [AfDB Press Release, 23 September]
In the regions of Central and Southern Africa, four additional countries—Angola, Democratic Republic of Congo, Malawi and Zimbabwe—will receive support for the development of Sustainable Energy for All (SE4All) Country Action Agenda and Investment Prospectuses from AfDB through the SE4All Africa Hub. Kenya, Tanzania and Rwanda are currently receiving support. [AfDB Press Release]
In the West Africa region, the multinational River Basin Development Organization (OMVG) Energy Project will receive US$64.93 million from AfDB. The project, which promotes energy sharing and clean, affordable power, exists within a regional cooperation and integration agreement of the Gambia, Guinea, Guinea-Bissau and Senegal. [AfDB Press Release]
Twenty Pacific island countries and territories will receive a total US$5.66 million in grants for the Sustainable Energy Industry Development Project from CIF, World Bank Energy Sector Management Assistance Program (ESMAP) and Government of Japan. The project seeks to improve access to data on renewable energy options, while also improving long-term disaster risk planning in the energy sector. [World Bank Press Release]
On publications, AfDB has a released a report on energy-saving and greenhouse gas (GHG) mitigation solutions for domestic railway stations in China. The report, titled ‘Improving Energy Efficiency and Reducing Emissions through Intelligent Railway Station Buildings’, finds that the use of intelligent building controls could deliver energy savings of 20%, while reducing costs and improving safety. [Publication: Improving Energy Efficiency and Reducing Emissions through Intelligent Railway Station Buildings]
On event-related news, AfDB hosted Energy Week in Abidjan, Côte d’Ivoire, which included two high-level events: The Economic Community of West African States (ECOWAS) Sustainable Energy Policy and Investment High Level Forum and the high-level consultative meeting ‘Towards a New Deal on Energy for Africa’. During the latter, AfDB announced the ‘New Deal for Energy in Africa,’ aimed at solving Africa’s energy deficit and achieving universal energy access by 2025. [AfDB Press Release, 15 September] [AfDB Press Release, 17 September] [IIDS RS Story]
During Energy Week, the African Renewable Energy Fund (AREF) announced that it achieved US$200 million in committed capital for its small- and medium-scale renewable energy fund. Contributors include the GEF, AfDB, EIB, Global Energy Efficiency and Renewable Energy Fund. [AfDB Press Release] [EIB Press Release]
AfDB’s Energy Week also included the second West Africa Forum for Clean Energy Financing (WAFCEF2) business plan competition. The US$580,000 award from the Sustainable Energy Fund for Africa (SEFA) went to the start-up, Ivoire Hydro Energy, to design, build and operate a 44 MW hydropower plant on the Bandama River in Côte d’Ivoire. The project was one of 10 finalists, representing US$500 million in clean energy investment in the region. [AfDB Press Release, 18 September] [AfDB Press Release, 17 September]
SEFA was named the winner of ‘Power Transaction of the Year’ by the East African Power Industry for helping to finance the development of an independent solar hybrid mini-grid project in rural Tanzania. [AfDB Press Release]
IFC, in partnership with EnergyNet, organized the Power Investors conference in Abuja, Nigeria. The conference, held under the auspices of Nigeria’s Ministries of Power and Finance, convened stakeholders to assess strategies for generating and maintaining investment in the power sector. [IFC Press Release]
Climate finance news and developments outside of the sustainable energy sector are published in IISD RS’s monthly Climate Finance Update, available via the Climate Change Policy & Practice portal. [IISD RS Climate Finance Updates]