World Bank Group member, the International Finance Corporation (IFC), has forged a new partnership with Moroccan renewable energy developer Gaia Energy to create a joint platform for the development of wind power and other renewable energy projects in Africa.
Originally developed by Gaia Energy, the new joint platform will start off with a pipeline of 22 projects in nine countries in North, West and East Africa, representing a pipeline under development of more than 3 GW.
The project pipeline will be progressively enlarged to include more African countries.
“IFC’s expertise in financial structuring and mobilisation, as well as its environmental and social safeguards ideally complements Gaia’s tailor-made approach to developing projects in new markets,” Gaia Energy founder and president Moundir Zniber said on Wednesday.
The partnership, he added, is a key step in expanding Gaia Energy’s business in the countries where it is present.
“IFC and Gaia share the same values and vision regarding sustainability and the importance of South-South cooperation to build tomorrow’s Africa. Both [organisations] work to power the continent through the adoption of renewable energy and sustainable development principles.”
The joint platform will be implemented under IFC InfraVentures, a $150-million global infrastructure project development fund created as part of World Bank Group’s efforts to increase the pipeline of bankable projects in developing countries.
The platform will also be supported by the €114-million Finland-IFC Blended Finance for Climate Program, which helps to spur private sector financing for climate change solutions, especially innovative and early-stage projects in emerging markets.
“Wind energy and renewable energy, in general, are priority areas identified in the World Bank Group's strategy to advance climate solutions led by the private sector. IFC is pleased to partner with Gaia Energy and leverage a quality project pipeline in countries with strong wind potential,” IFC sub-Saharan Africa infrastructure head David Donaldson commented.
He added that the IFC’s support will help Gaia in its strategic choice of the countries where efforts should be intensified, and in taking projects to financial close.