IFC considers financing solar project in Mozambique

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
IFC considers financing solar project in Mozambique

The International Finance Corporation (IFC), a member of the World Bank, has disclosed on its website that is considering financing a 40.5 MW solar PV in Mozambique. The project is located on a site of approximately 120 hectares in Mocuba, about 175km from the commercial port of Quelimane in Northern-central Mozambique.

The project consists of the development, financing, construction, operation and maintenance of the plant. The electricity generated from the Project will injected into the Mozambican Northern grid. The project has a 25-year Power Purchase Agreement with Electricidade de Mocambique (EDM).

The project company is Central Solar de Mocuba S.A., a special purpose vehicle to be incorporated in Mozambique. The company will be 52.5% owned by Scatec, 22.5% owned by Norfund and 25% owned by EDM. Scatec is a Norwegian listed company with a track-record of 279 MW in operations. Norfund is the Norwegian Investment Fund for Developing Countries and a leading renewable energy investor in Africa. EDM is Mozambique's state-owned public power utility.

The project cost is estimated at US$84 million (including VAT).

IFC intends to provide an A loan of up to US$21 million, and a B loan of up to US$21 million. In addition, IFC is considering mobilizing and a concessional senior loan funding of up to US$21 million from the Climate Investment Fund (CIF) and/or IFC Canada Climate Change Program (IFC-CCCP), in IFC’s capacity as implementing entity of the CIF/IFC-CCCP. 

List of country news

Country news

  • October 27, 2014

    Mozambique offers oil & gas licenses

    Mozambique, through its regulatory agency, the Institute of National Petroleum (INP), has issued a competitive tender process for 15 oil & gas exploration licenses. Read more
  • October 28, 2014

    Ncondezi Signs MoU with strategic investor for Mozambique 300 MW power deal

    Ncondezi Energy Limited has signed a non-binding Memorandum of Understanding (MoU) with Shanghai Electric Power Company Limited (SEP) to progress and agree a transaction where SEP could potentially become the controlling shareholder in the 300 MW coal fired power plant, the Ncondezi Power Project, located near Tete in northern Mozambique. Read more
  • May 27, 2015

    EPC Contractor selected for Onshore LNG Park in Mozambique

    Mitsui & Co., Ltd. and its joint venture partners in Mozambique's Rovuma Offshore Area 1 Block have selected the Engineering, Procurement and Construction (EPC) contractor for the initial development of the onshore LNG park. Read more
  • May 29, 2015

    Norton Rose Fulbright is appointed international legal counsel on South African interconnector project

    Norton Rose Fulbright, is advising the Southern African Power Pool (SAPP) on the development of the regional interconnector transmission line between Mozambique, Zimbabwe and South Africa (MoZiSA). Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.