“The main objective of the project is to strengthen the environment for a more diversified economy by improving fiscal and macroeconomic resilience and the foundations for private sector growth,” Olavo Correia said on Facebook. Most of the funding, around €11.6 million, comes from the International Development Association (IDA).
This is followed by €1.03 million from the International Bank for Reconstruction and Development (IBRD) and €342,500 from the Global Infrastructure Facility (GIF). These funds will support the installation of renewable energy and battery storage capacity, with the participation of the private sector.
According to the minister, the agreements are strategic because they mobilise additional, diversified and concessional financial resources that are essential for the effective implementation of the project.
In addition, they contribute to institutional strengthening, universal access to electricity, the promotion of sustainable development and the integration of renewable energy with public and private participation, in line with the country’s public policy objectives.
Olavo Correia also explained that by increasing the share of renewable energy in electricity production, the project will help reduce the country’s exposure to (imported) fossil fuel prices, lowering the cost of energy and making the country more competitive.
“The additional financing will enable the project to achieve the Government’s objectives, namely 50% renewable energy penetration by 2030 and the consolidation of sectoral reform,” he added.
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