- The Government of Zambia through the Ministry of Energy in cooperation with the German Government through KfW, the German Development Bank, is pleased to announce that the successful bidders under the GET FiT Zambia 120MW Solar PV programme, launched in 2018, have been successful in mandating two leading European financing institutions.
- This marks a major milestone and achievement in the programme as financiers commence a confidential due diligence process to finalise the debt structure, work towards signing the project agreements, and achieve financial close.
- Zambia is in a massive energy crisis with its citizens facing up to 12 hours of blackouts daily. Read more
GET FiT awarded preferred bidder status to multiple IPP’s in 2018 under the programme knowing that the state owned off-taker, ZESCO, was bankrupt and did not have sovereign debt cover in the event of a default. As a result, the projects have never reached financial close. Read more
The Minister of Energy Hon. Makozo Chikote noted that this is a key milestone for these projects as the successful bidders work towards implementing the 120MW solar plants as soon as possible. The achievement of this milestone also reiterates the Government’s commitment to advancing sustainable energy solutions and highlights the importance of a diversified energy portfolio.
The Minister also thanked key stakeholders including the Ministry of Finance and Planning, the Ministry of Justice, the Energy Regulation Board, and ZESCO Limited for their support throughout the process.
Hon. Makozo Chikote also thanked the Managing Director and team at ZESCO for their support and addressing the lender requirements as these efforts led to the successful achievement of this project milestone.
“The Government through the Ministry of Energy wishes to confirm our support in ensuring that the lender process is concluded with speed to allow for financial close and implementation of the projects as soon as possible. The Ministry also wishes to convey a special word of thanks to our partner the German Government through KfW for their support of not only the GET FiT Programme, but other programmes in the energy sector. Their total support to the energy sector in Zambia is above 120 million Euros. They have continued to support us even through the challenging periods. Without their unwavering support, this could not have been possible”.
Commenting on the significant step forward for the project implementation, the German Ambassador to Zambia, Dr. Anne Wagner-Mitchell, said: “The securing of funding for these projects is proof of the tangible, positive impact the conclusion of the debt restructuring has on access to finance for private sector companies. With the successful implementation of the GET FiT projects, ZESCO will be able to purchase electricity at a much more competitive tariff than previously. In the current energy crisis, this is obviously a double win: It is a key example for the energy sector as a whole, as GET FiT introduces transparent and fair procurement processes for renewable energies. Plus, with every MW produced, it improves both ZESCO’s financial sustainability and operational capacity. I am now looking very much forward to seeing the realization of 120 MW solar PV projects”.
Author: Bryan Groenendaal
