The Development Bank of Ethiopia will offer an initial $20 million in funding to renewable energy projects in the country, a program funded by the World Bank, with additional $20 million expected at a later stage.
Reported before the weekend, the Development Bank of Ethiopia has announced it will offer up to $20 million to private companies. The funding is to help accelerate the development of renewable energy projects and energy efficiency programs.
In May of 2012, the World Bank has granted Ethiopia a total of $40 million to renewable energy development projects of the private sector in the country, and the $20 million offered now are coming from the pool.
The funds are expected to be released over the coming 5 months. The bank currently is in discussions with several interested parties and is collaborating with the World Bank on details like interest levels for the provision of the funding to private companies.
If successful, another $20 million will then be distributed as well.
The funding agreement between the World Bank and Ethiopia’s Ministry of Finance and Economic Development was finalized in 2012. As part of that the World Bank will provide Ethiopia with up to $200 million for enhancements to the national energy market in the country.
Source: Ventures Africa