The first independent hydropower project in Gabon is set to benefit from a €39 million loan package from the African Development Bank Group.
The funds, which are comprised of €20 million from the African Development Bank, €10 million from the Africa Growing Together Fund and €9 million in concessional financing from the Sustainable Energy Fund for Africa, will be used to help build the 34.1MW Kinguélé Aval hydroelectric project.
Additional financing to meet the project’s €133.8 million budget will come from the International Finance Corporation of the World Bank Group, the Canada-IFC Program for Renewable Energy in Africa, the Development Bank of Southern Africa and the Emerging Africa Infrastructure Development Fund. The loan funds will be disbursed to Asonha Énergie S.A., a company created to manage the project.
The project entails the design, construction, and operation of the plant with a net annual generation of 203GWh. The Kinguélé Aval dam will be built on the Mbei River, 90km east of Gabon’s capital, Libreville, downstream from the Tchimbélé (69MW) and Kinguélé upstream (58MW) hydroelectric plants.
“We are delighted to support the first IPP project in Gabon”, said Mr. Wale Shonibare, Director of the Energy Financial Solutions, Policy and Regulation Department at the African Development Bank. “Kinguélé Aval is a showcase project, and the success of the model provides a useful template for future projects that will help move the country closer towards achieving the government’s 100% clean energy target."
“Kinguélé Aval epitomizes the catalytic effect of SEFA and co-financing from the likes of the Africa Growing Together Fund that the Africa Development Bank brings forth to support developers deliver sustainable renewable projects that aid Africa’s energy transition,”added Dr Kevin Kariuki, Vice-President of Power, Energy, Climate and Green Growth at the African Development Bank.