The European Investment Bank (EIB) has approved $4.9 billion financing for renewable energy, clean transport, COVID-19 recovery, social housing and education. Of this amount, $95 million will be allocated to the East Africa Rift Geothermal Project.
$95 million geothermal funding for East Africa
The operation is an envelope for financing individual private sector investments into geothermal power generation projects in different countries in the East African Rift region. Sub-operations under the envelope will undergo individual project appraisals and be separately approved for bank financing.
Funding is available for the countries of: Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mayotte, Mozambique, Reunion, Rwanda, Seychelles, Somalia, South Sudan, Tanzania, and Uganda.
The proposed envelope will allow the EIB to provide financing to several projects implemented by promoters active in the geothermal power sector in the region (individual private sector investments into geothermal power generation).
Eligible projects will typically include greenfield development and brownfield expansions, with proven geothermal resources.
Investments in geothermal energy will help diversify base load renewable electricity supply in the region and contribute to the reduction in greenhouse gas (GHG) emissions compared to fossil-fuel based alternatives, thereby supporting the sustainable economic development of the East African Rift countries.
Werner Hoyer, President of the European Investment Bank, said: “The projects approved highlight the EIB’s engagement across Europe and around the world to unlock private and public investment that addresses local priorities and global challenges. Tomorrow I will update the EIB’s Governors, EU finance and economy ministers, on the EU Bank’s rapid response to challenges caused by the COVID-19 pandemic and our strong and growing support for green transition and climate action across the world.”
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