Mpanda hydropower project gets USD 1m loan
07 June 2021
A USD 1M development loan has been signed for the Mpanda hydropower project in Burundi. The loan is intended to fund the development activities of the project ahead of its financial closing, which is expected in 2022.
The loan will be provided by Finergreen, a financial advisor based in Paris and dedicated to renewable energy development particularly solar, wind, hydro, and biomass as per an agreement signed with Mpanda Hydro Power, the developer of the Mpanda hydropower project.
To gather the necessary funds for the project, Mpanda Hydro Power is working closely with the UK government-funded Renewable Energy Performance Platform (REPP) managed by Camco Clean Energy.
The provisional budget for the Mpanda hydropower project is USD 43.5M.
The Mpanda hydropower project began back in 2011 with the construction of a 35-meter high dam in Bubanza province, with a reservoir covering more than 100 ha. However, the work stopped four years later in 2015 due to budgetary constraints, with an estimated 20% completion rate.
In 2019, a memorandum of understanding (MoU) was signed between the Ministry in charge of energy in the East African country and Hydroneo East Africa.
As per the MoU, Hydroneo would resize the project, mitigate its environmental impact and resume the development and construction of the power plant.
The public-private partnership (PPP) contract between the government of the East African country and Hydroneo, as well as a power purchase agreement (PPA) between Mpanda Hydro Power and the Régie de production et distribution d’eau et d’électricité (Regideso) were finalised and executed in May 2021.