African Development Bank To Finance Gabon’s First Independent Hydropower Project

Posted by: Kyeyune Andrew Jonathan in African News July 10, 2021

The Board of Directors of the African Development Bank Group (AFDB) has approved a €39 million loan to Gabon.

This funding will be directed to the construction of Gabon’s first independent hydroelectric dam in Kinguele Aval.

The package includes €20 million from the African Development Bank. In addition to that, €10 million from the Africa Growing Together Fund and €9 million in concessional financing from the Sustainable Energy Fund for Africa.

This is a special multi-donor fund that the African Development Bank is managing.

Additional financing to meet the project’s €133.8 million budget will come from the International Finance Corporation.

The World Bank Group manages this. On top of that, the Canada-IFC Program for renewable energy in Africa will also be part of the donors to this project.

Furthermore, AfDB will disburse this loan funds to Asonha Énergie S.A., a company they created to manage the project.

The project itself also covers the design, construction, and operation of a 34.1-megawatt power plant. The dam will also have a net annual generation of 203-gigawatt hours.

They will build the dam on the Mbei River, 90 km east of Gabon’s capital, Libreville.

‘’We are delighted to support the first IPP project in Gabon. Kinguele 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 toward achieving the government’s 100% clean energy target,’’ said Mr. Wale Shonibare of the African Development Bank.

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