Vienna, Austria – The OPEC Fund for International Development (OFID) is offering a US$25 million loan for solar energy development in Niger, scaling up electrification and access to renewable energy in the country.
The loan will be provided to Solar Plant Development and Electricity Access Improvement Project (RANAA).
The OPEC Fund is joining forces with the African Development Bank, Power Africa, the Green Climate Fund, and the Government of Niger for a total financing of $167 million.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa signed the loan agreement in Niger on Wednesday with Minister of Finance Ahmat Jidoud.
“Our support will help Niger increase access to affordable and clean energy and improve the overall capacity of the electricity network, making a real difference in people’s lives,” Dr. Alkhalifa stated. “The OPEC Fund is committed to addressing the twin challenges of energy access and climate action and helping ensure that no one is left behind.”
RANAA will support the energy sector’s development by constructing three solar plants in the Maradi, Dosso and Diffa regions. With a total generation capacity of 40 MW, they will benefit over 750,000 people living in the project area.
The project also includes extending 2,600 km new transmission lines connecting cities in Niger’s south and the capital Niamey. The OFID’s loan will finance the construction and grid integration of the 10 MW Dosso solar plant.
Since the start of its operations in 1976, the OPEC Fund has extended 30 public sector loans for a total amount of $246 million to Niger, supporting agriculture, transport, education, water and health and several other initiatives through 33 local and regional grants.
OFID was established in January 1976 by the then 13 member countries of OPEC, including the United Arab Emirates. It is the development finance institution established as an aid channel to developing countries.