The Ethiopian parliament has approved the loan agreement between the Danske Bank and the finance ministry of EUR117.3 million (US$136.5 million) that will be used for the development of the 100 MW Assela wind farm project.
The fund managed by the Investment Fund for Developing Countries of the Danish Government, Danida Business Fund (DBF), will provide EUR28.7 million (US$32.27 million) financing in the form of a grant for the development of the project. The project is also supported by the African Development Bank (AfDB).
The project will be developed in about 150 kilometers south of Addis Ababa, near the town of Iteya in the Oromia. It will consist of 29 wind turbines manufactured by Siemens Gamesa.
The loan deal will be repaid in 20 years with a five-year grace period.
