AfDB co-financing to CIF Projects Could top USD 600 million in 2012
In 2012, the African Development Bank (AfDB) expects to approve approximately USD 600 million in co-financing and begin implementation of numerous projects and programs backed by the Climate Investment Funds (CIF). Anticipated CIF approvals in 2012 are expected to reach about USD 175 million.
The AfDB’s Clean Technology Fund (CTF) pipeline for 2012 includes concentrated solar power (CSP) projects in Kom Ombo, Egypt and Ouarzazate, Morocco. It is expected that the AfDB’s Board will approve USD 250 million in co-financing for the Ouarzazte CSP plant. Bank contributions to the Kom Ombo plant are estimated at USD 150 million to bolster CTF financing to be channeled through the Bank, an anticipated USD 50 million.
Several projects under a South African program to promote renewable energy and energy efficiency through private investments will also be prepared to access a portion of the USD 50 million earmarked by CTF for AfDB distribution. Work will continue in implementing Eskom’s 100 MW solar and 100 MW wind project in South Africa.
Under the Pilot Program for Climate Resilience (PPCR), the Bank anticipates USD 75 million in PPCR financing will be approved for two projects in Niger—for improved climate forecasting and early warning systems and enhanced water resource management—and two in Mozambique—for sustainable land and water management and enhanced climate resilience in agricultural production and food security.
AfDB co-financing is expected to be around USD 50 million. A project to strengthen climate resilience in Zambia’s Kafue River Basin will also see advancement in 2012, with approval expected in early 2013.
In 2012, the Bank expects Ethiopia’s USD 50 million investment plan under the Scaling Up Renewable Energy Program in Low Income Countries (SREP) to be approved, as well work to begin on SREP investment plans for Tanzania and Liberia. The AfDB will also provide technical support to Mali as it prepares projects for solar photovoltaic IPPs and mini/micro hydro with the support of USD 2 million SREP project preparation grants. Implementation will begin on a SREP and AfDB-backed project to develop a geothermal steam field at Menengai, Kenya.
Forest Investment Program (FIP) projects will be prepared in Burkina Faso to develop participatory management and protection of state forest reserves and the Democratic Republic of Congo to address deforestation and degradation in the Mbuji Mayi/Kananga and Kisangani supply areas. Total FIP financing channeled through the AfDB to these projects is estimated at USD 32.5 million. Ghana’s FIP investment plan is also expected to be approved for USD 50 million in FIP financing in 2012.