The IFC signed a MoU with the Industrial Development Corp. (IDC) of Zambia to explore development of two 50-MW solar PV IPPs in Zambia through the Scaling Solar program. The projects will be Zambia’s first utility-scale PV projects. The two projects will allow for Zambia to diversify its economy.
The IDC Zambia was directed by the country’s president, Edgar Chagwu Lungu, to develop at least 600 MW of solar power as soon as possible to address the nation’s current power crisis. IDC Zambia anticipates that the first two projects, with a combined initial target capacity of 100 MW, will create the opportunity for subsequent expansion and the rapid scale-up in renewable energy generating capacity in Zambia.
Lungu said, “The Zambian government is resolved to address the current hydro power shortages caused by low rainfall through active promotion and increased use of renewable energy technologies.”
The projects are to be situated on separate sites and developed by different private sector sponsors, based on open and transparent tenders. It is expected that both projects would engage Zambian partners in the ownership structure. The commercial structure is expected to follow IFC’s recently-launched Scaling Solar initiative.
“IFC is developing this partnership with IDC Zambia to deliver affordable renewable energy that can mitigate the country’s ongoing energy crisis.” said Oumar Seydi, IFC Director for Eastern and Southern Africa. “The Scaling Solar program enables us to apply the full range of World Bank Group services to address Zambia’s challenges quickly and sustainably.”
IDC Zambia and IFC will seek to negotiate a formal advisory mandate within the next few weeks, under which IFC will be appointed as lead transaction advisor to IDC Zambia for the development of the projects. Once this mandate is in place, project development will commence, with requests for prequalification expected to be issued to prospective developers within three months.