| Work Detail |
The DRC has a high potential for hydroelectricity and is currently working on several projects
The Democratic Republic of Congo (DRC) wants to develop a 200MW reservoir-based hydropower project on the Lufira River.
The Lufira river already provides energy to the Mwadingusha hydroelectric power station in the Kambove region, Haut-Katanga Province. It was dammed in 1926 at Mwadingusha near Likasi to form Lake Tshangalele, a reservoir for a hydroelectric generator supplying power for copper smelting.
The African Export-Import Bank (Afreximbank) is taking a lead on the financing of the new hydropower initiative, marking its first foray into private-sector renewable energy in the DRC.
Clean energy from hydropower project for DRC mining
Afreximbank has signed a project preparation facility financing agreement to finance the technical and bankability studies, legal, financial advisory and fundraising costs, partnering with Kipay Investments. The bank will also take the lead in structuring the project’s debt financing.
Kipay Investments SAS is incorporated to develop, design, construct, install, commission, operate and manage a reservoir-based hydroelectric power plant with a nameplate capacity of up to 200MW.
The hydropower project will provide clean, reliable and affordable power to mining companies that enable beneficiation of critical minerals such as copper and cobalt in the DRC.
It will also expand electricity access to the nearby community to enhance access to education and healthcare facilities.
The project is expected to reduce greenhouse gas emissions by around 108,000 Metric tonnes of CO2 equivalent a year.
It is expected to create more than 2,000 direct jobs and 952 potential indirect jobs and also augment fishing and other economic activities on the reservoir. The 30-year project is also expected to lead to the development of industrial clusters around the mining area because of the availability of clean power
Industrialisation in DRC
Commenting on the transaction, Kanayo Awani, Afreximbank Executive President Intra African Trade and Export Development, said the signing ceremony underscores the bank’s commitment to support renewable energy projects that spur industrialisation and export development activities while promoting a just energy transition.
“Afreximbank is committed to supporting DRC’s energy transition, enhancing the country’s energy security whilst leveraging its vast renewable energy potential to develop sustainable trade-enabling energy infrastructure.”
“This financing reinforces Afreximbank’s commitment to mobilising private capital to develop renewable energy projects and secure a sustainable future for DRC and the region. We are also proud to highlight the innovative structure deployed that encompasses a captive market that enhances the project’s bankability,” Awani added.
Also speaking at the signing ceremony Eric Monga, CEO of Kipay Investments SAS, highlighted that the project had led to renewed optimism for socio-economic development among the local population and across the country.
“It is important that local communities reap the benefits of the project — including creation of new jobs and capacity building for the future renewable energy sector in the DRC,” said Monga. |
