The European Investment Bank (EIB) has approved $4.9 billion financing for renewable energy, clean transport, COVID-19 recovery, social housing and education. Of this amount, $95 million will be allocated to the East Africa Rift Geothermal Project.
$95 million geothermal funding for East Africa
The operation is an envelope for financing individual private sector investments into geothermal power generation projects in different countries in the East African Rift region. Sub-operations under the envelope will undergo individual project appraisals and be separately approved for bank financing.
Funding is available for the countries of: Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mayotte, Mozambique, Reunion, Rwanda, Seychelles, Somalia, South Sudan, Tanzania, and Uganda.
The proposed envelope will allow the EIB to provide financing to several projects implemented by promoters active in the geothermal power sector in the region (individual private sector investments into geothermal power generation).
Eligible projects will typically include greenfield development and brownfield expansions, with proven geothermal resources.
Investments in geothermal energy will help diversify base load renewable electricity supply in the region and contribute to the reduction in greenhouse gas (GHG) emissions compared to fossil-fuel based alternatives, thereby supporting the sustainable economic development of the East African Rift countries.
Werner Hoyer, President of the European Investment Bank, said: “The projects approved highlight the EIB’s engagement across Europe and around the world to unlock private and public investment that addresses local priorities and global challenges. Tomorrow I will update the EIB’s Governors, EU finance and economy ministers, on the EU Bank’s rapid response to challenges caused by the COVID-19 pandemic and our strong and growing support for green transition and climate action across the world.”
$1.6 billion for renewable energy
The EIB approved new support for large scale solar power generation across Spain, small scale renewable energy projects in Germany, support investment in clean energy and energy efficiency by companies in Austria, and geothermal power in East Africa.
The Board also approved financing and technical support to increase sustainable and reliable energy supply and improve energy efficiency in schools, hospitals and businesses across Africa.
$1.4 billion to strengthen pandemic recovery and corporate RDI
Local banking partners will provide business financing agreed by the EIB to help companies deliver on research, development and innovation (RDI) in Italy, Spain and Portugal most hit by the COVID-19 pandemic invest, expand and adapt their activities during these challenging times.
The EIB will also provide direct financing to scale up pharmaceutical research and development to improve treatment of heart and respiratory diseases and diabetes.
New EIB financing will help strengthen support for social impact and sustainable investment by companies in the Netherlands.
The EIB agreed to back new high-impact equity investment, by an experienced development finance partner, to support rural microfinance institutions working with low-income smallholder farmers across Africa that will tackle the limited access to finance in fragile regions, support rural development and reduce poverty.
$1.1 billion to transform rail transport and maritime connectivity
Logistics services that enable an efficient alternative to road transport, provided by the largest private rail freight operator in Spain and Portugal, will be transformed by acquisition of new intermodal rolling stock and locomotives approved by the EIB.
The EIB also approved support for new hydrogen and battery powered trains in Berlin and Brandenburg, and to reduce congestion at the Polish Baltic port of Szczecin.
Passenger and freight transport in Romania, connecting Hungary to Black Sea ports, will also benefit from upgrading the Arad-Sighisoara rail route to enable higher speeds and more efficient signalling, backed by the EIB, under a previously agreed infrastructure investment initiative.
$363 million for education, healthcare and social housing
The EU Bank agreed financing in Alsace to support the construction of new secondary schools and upgrade and expand existing facilities, and improve acute and long-term care and assisted living services provided by a regional healthcare in the Netherlands.
The EIB will also support a new initiative to increase the supply of affordable social housing by housing cooperatives and municipal authorities in several locations in Poland.