The IFC has increased its investments in infrastructure projects in the MENA region over the past year, with a focus on renewable energy to tap into new energy sources and help mitigate climate change.
The IFC, a member of the World Bank Group, committed a total of $783 million to infrastructure projects in fiscal year 2015, of which 47% was mobilised, reported The Financial on Tuesday.
The funds backed private sector investments in key energy projects to meet the MENA region’s growing demand for energy.
IFC financial year 2014
According to the IFC, this follows $639 million invested in the sector in FY14, demonstrating its commitment to tackling the region’s biggest development challenges.
Wiebke Schloemer, IFC’s Regional Industry Head of Infrastructure in Europe, the Middle East and North Africa, stated that: “With demand for infrastructure, especially power, rising rapidly every year in the region, these projects demonstrate the importance of the private sector in increasing capacity and boosting renewable energy generation.”
He added: “The region is blessed with an abundance of natural resources so the opportunities in this sector are immense.”
IFC will be continuing its work in FY16 to help the private sector tackle the MENA region’s most pressing challenges in order to boost growth and shared prosperity, and reduce extreme poverty, reported The Financial.
IFC renewable energy projects
Over the last year, the IFC closed an innovative $208 million debt package to fund the construction of seven solar photovoltaic plants in Jordan.
In Pakistan, the IFC invested $125 million in China Three Gorges South Asia, to support a series of hydro, solar and wind projects that could provide electricity for up to 11 million people and boost generation capacity by up to 15%.
To cut the Pakistan’s reliance on costly imported liquid fuels, the IFC also invested $50 million and mobilised a further $154.5 million for the Gulpur Hydro project.
The corporation also invested $7.5 million in equity alongside a $20 million loan to Engro Elengy Terminal for Pakistan’s first LNG import facility.
IFC focus on Pakistan’s Sindh province
The IFC invested in three wind farms in Pakistan’s Sindh province to further boost renewable energy regeneration.
- $15 million investment by the IFC and additional $36 million from other investors in Gul Ahmed Wind Power to help the company build and operate a new 50MW wind farm;
- $30 million in Tenaga Generasi Limited to develop a 49.5MW wind farm; and
- $25 million debt and equity investment to help the Metro Power Company develop a 50MW wind farm in the province.