Export-Import Bank of India (Exim Bank) has, on behalf of the government of India, extended three lines of credit totaling $83.11 million to the government of the Democratic Republic of the Congo (DRC).
The credit will be used to finance the installation of three solar PV power projects with a total capacity of 35MW in three provinces namely Karawa, Mbandaka and Lusambo.
Projects covered under the credit extended to the government of the DRC include hydroelectric power projects, power transmission and distribution projects, cement plant, hand pumps and submersible pumps installation, and solar power projects.
The DRC is among African countries that have not yet fully exploited the deployment of renewable energy particularly wind and solar.
However, recent efforts are targeting to accelerate the adoption of renewables with solar being the focus for now.
Last year, the African Development Bank’s Green Climate Fund of $110 million, which will be directed towards proposed projects including a Green Mini-Grid project in DRC.
The Green Mini-Grid project is set to receive a $20 million senior loan, and $1 million grant. Read more: $110m approved to advance climate change projects
Pilot solar PV plants
The AfDB loan will finance three pilot solar PV plants and battery storage, with the shortfall financed by project sponsors’ equity and quasi-equity. While the grant will finance complementary technical assistance to ensure that green mini-grids are scaled-up across the country beyond the pilot phase.
The mini-grids are envisaged will provide access to clean, reliable and more affordable energy to approximately 150,000 people who live off-grid.
This will contribute to reducing emissions of 560,000 tCO2eq over the 20-year lifespan of the project.