- Bloomberg reports that Spain has pledged to provide a €2.1 billion funding package in the form of discounted loans, risk insurance and capital investments.
- Madrid alone has promised to provide €15 million ($16.4 million) in grants for feasibility studies, according to Spanish Ambassador to South Africa Raimundo Robredo Rubio.
- The conditions requires a 30% return to Spanish companies in the form of equity or procurement.
The funding will focus on projects in solar and wind energy, and will finance green hydrogen and electric vehicle production, as well as water and sanitation projects.
Related news: Cape Town is proposing desalination plants as its long term potable water security solution.
“This is the first time in history we have done something like this,” Robredo said in an interview.
According to Robredo, capital investment will be managed together with Cofides and the IDC, with clear exit prices and dates, Robredo said. He added that, while green projects would be fully financed, the deal requires a 30% return to Spanish companies in the form of equity or procurement.
The Spanish initiative follows a separate $8.5 billion funding package from the EU, the UK and the US commonly referred to as the Just Energy Transition Partnership (JETP). Read more
Author: Bryan Groenendaal
