AfDB Loans €18mn To Burkina Faso

Burkina Faso To Use African Development Bank’s €18 Million ($20.9 Million) Loan To Improve Access To Energy, With Focus On Solar
09:22 PM (Beijing Time) - 21. July 2018

Key Takeaways

  • AfDB has approved a loan of €18 million ($20.9 million) to help Burkina Faso improve access to energy and carry out energy reform
  • It will be provided in two tranches of €12 million ($13.92 million) and €6 million ($6.96 million)
  • Burkina Faso will use the money to finance its Energy Sector Reform Support Program (PARSE)
  • By the end of the program in 2019, AfDB expects the national electrification rate to have reached 25%, compared to 20.07% in 2016

The African Development Bank (AfDB) will lend €18 million ($20.9 million) to Burkina Faso to finance its Energy Sector Reform Support Program (PARSE). Through this program, the African nation aims to create conditions for access to energy. It plans to establish a legal and institutional framework for both public and private investments in the sector.

AfDB financing will be disbursed in two tranches, €12 million ($13.92 million) and €6 million ($6.96 million). By the end of 2019, AfDB expects the national electrification rate to have reached 25%, compared to 20.07% in 2016. Rural areas should show an increase from 3.2% to 6%.

Burkina Faso has one of the lowest rates of access to electricity in the sub-Saharan Africa. Frequent outages are already a norm here. This limits the economic options for people here, while impacting their health at the same time. Women specially are vulnerable to diseases as pneumonia with constant exposure to traditional biomass methods.

The bank is hoping it will encourage private investment in energy production and distribution in the country.

Solar is now high on the agenda of the country to solve its power issues. In March 2018, a 15 MW solar hybrid power project was commissioned for an offgrid gold mining company in Burkina Faso (see 15 MW Solar Hybrid Plant In Burkina Faso). Earlier this year, the Minister of Energy Alpha Oumar Dissa said the country is planning to set up eight solar power plants with combined capacity of 100 MW (see Burkina Faso Planning 100 MW Of PV).

 

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani