We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 31 Jan 2019 06:45 PM

Font Size

- Aa +

Abu Dhabi fund inks $10m loan deal for Mauritius solar project

Abu Dhabi Fund for Developmen signs loan agreement with the Government of Mauritius to fund a solar photovoltaic kits project

Abu Dhabi fund inks $10m loan deal for Mauritius solar project
Mohammed Saif Al Suwaidi, director general of ADFD.

Abu Dhabi Fund for Development (ADFD), the national entity for international development aid, has signed a $10 million concessionary loan agreement with the Government of Mauritius to fund a solar photovoltaic kits project.

The project that aims to provide 10,000 solar PV kits to low-income communities is being financed through the IRENA/ADFD Project Facility as one of the beneficiaries of its fifth funding cycle.

Established in 2013, the seven-cycle facility offers $350 million in concessional loans from ADFD to help developing countries access low-cost capital for renewable energy projects.

Mohammed Saif Al Suwaidi, director general of ADFD, and Mootoosamy Naidoo, chairman of the Central Electricity Board of Mauritius, signed the loan agreement.

Al Suwaidi said: "ADFD’s funding mechanisms are designed to foster sustainable development in key sectors that stimulate economic growth and elevate living standards in developing countries. To deliver on that promise, the fund views the advancement of renewable energy as a top priority."

He added: "We are proud to work together with the Mauritian government to bring this crucial solar PV project online. The venture will go a long way in supporting the local economy and achieving national priorities, in addition to generating jobs and improving livelihoods."

In October 2018, a technical delegation from ADFD visited Mauritius to review the feasibility of the project, its technical integrity, and its compatibility with the country’s strategic and development priorities.

The funds will enable the Mauritius Central Electricity Board to install solar PV systems on the rooftops of 10,000 households as part of the government’s efforts to alleviate poverty.

The project will contribute to achieving the national target of integrating 35 percent of renewable electricity into the country’s energy mix by 2025.

Naidoo said: "In collaboration with ADFD as a strategic partner, we will improve access to electricity for our population and meet important government objectives."

During the lifespan of the project, an estimated 10,000 families in low-income communities will benefit from approximately $8.3 million in electricity bill savings. The project will bring 10 megawatts of renewable energy capacity online, mitigating 143,000 tonnes of carbon dioxide emissions annually and enhancing the country’s energy security.

To date, the fund has allocated a total of $245 million to 24 projects over six cycles of the IRENA/ADFD Project Facility.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.