Ethiopia, Danske Bank Sign €117.3 Mn Loan Agreement for Assela Wind Farm

The Ethiopian government signed a loan agreement of €117.3 million with Danske Bank A/S to finance the Assela Wind Farm project.

Inking the agreement on Monday were Ahmed Shide, Ethiopia's Finance Minister, and Jelsper B. Petterson and Olaf S. Mark Schet, Director and Associate Director of Danske Ban, respectively. The agreement was signed virtually.

The total cost of the Assela Wind Farm project is projected to be €146 million, and the remaining €28.7 million will be covered by a grant from the Danida Business Fund (DBF), which is administered by the Investment Fund for Development Countries on behalf of the Government of Denmark. In addition to this, DBF has agreed to subsidize the interest rate, bank margin, and EKF premium expenses, totaling to €66 million, which brings the overall support from DBF to €94.7 million. The grant is part of the Danish development assistance to Ethiopia.

The financing includes the design, test, delivery, installation, completion, and commissioning of the 100 MW wind farm at the Assela site of Oromia region. Moreover, the project introduces Danish wind power technology to Ethiopia and promotes the sustainable use of renewable resources, the Ministry of Finance relates.

Source: The Ethiopian Monitor


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