US$12m for bio-diesel projects
Source: US$12m for bio-diesel projects | Sunday Mail (Local News)
Sunday Mail Reporter
Zimbabwe’s bio-diesel project is set to benefit from a US$12 million concessionary loan from IRENA’s Abu Dhabi Fund for Development.
The funding deal is likely to be concluded during the ongoing 10th Assembly of IRENA in Abu Dhabi, which is being attended by Energy and Power Development Minister Fortune Chasi.
In 2017, the Energy Conversation and Renewable Energy (ECRE) department in the Ministry of Energy and Power Development requested all parastatals under its jurisdiction to submit energy projects that were eligible for funding.
The funding, however, failed to materialise as the guarantee from the Ministry of Finance and Economic Development, which was a requisite, failed to come on time.
In a statement, the Ministry of Energy and Power Development said there is fresh possibility for the project’s funding.
“A notable event at this Assembly will be the announcement of governments and public entities that will be granted funding from the Abu Dhabi Fund for Development (ADFD).”
The ministry added that the decision to re-submit the funding proposal was reached following Zimbabwe’s attendance of the IRENA Council and Assembly last year.
“In the 2019-2020 seventh funding cycle, the following milestones have been achieved. A project brief was submitted and accepted in February 2019, a full project proposal was submitted by June 2019, the Ministry successfully lobbied and got a letter of guarantee from the Ministry of Finance and the guarantee letter was submitted to IRENA in August 2019,” reads the statement.
“The Finealt Engineering Bio-diesel project has been shortlisted for funding as was communicated in November 2019.”
The US$12 million loan will mainly be used to procure capital equipment for the bio-diesel processing plant, develop the Nyakadecha Estate in Mudzi and plant additional Jatropha plants.
It has a repayment period of 20 to 25 years, with a five-year grace period on interest.
The IRENA ADFD funds small scale renewable energy projects ranging from US$5 to US$15 million.