The Democratic Republic of Congo (DRC) is set to construct a 200MW hydropower project. Afreximbank (the African Export-Import Bank) in partnership with Kipay Investments inked a financing agreement to support the development set to be situated along the Lufira River.
This initiative marks Afreximbank’s first private-sector renewable energy project in the DRC and aligns with its climate finance strategy. The funds will used for technical and bankability studies, legal and financial advisory, and fundraising costs. The bank will also lead the structuring of the project’s debt financing.
Kipay Investments is tasked with developing, designing, constructing, installing, commissioning, operating and managing the hydroelectric power plant. This captive power project will deliver significant benefits. It will provide clean, reliable and affordable power to mining companies enabling beneficiation of critical minerals including copper and cobalt within the DRC and fostering significant value retention.
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Meeting objectives
Additionally, it will expand electricity access to the nearby community enhancing access to education and healthcare facilities. Once completed, the project is expected to result in the reduction of greenhouse gas emissions by approximately 108,000 metric tonnes of CO₂-equivalent annually thereby helping DRC meet its climate targets under the Paris Agreement and updated Nationally Determined Contributions (NDCs).
The project will create 2,000 direct jobs and 952 potential indirect jobs, while boosting fishing and other economic activities on the reservoir. It will also generate tax revenues for the DRC government over its 30-year duration, and foster industrial clusters around the mining area.
The DRC has immense and varied energy potential, consisting of non-renewable resources, including oil, natural gas, and uranium, as well as renewable energy sources, including hydroelectric, biomass, solar, and geothermal power. Hydroelectric power accounts for 96% of domestic power generation, the bulk of which is generated by the Inga I and Inga II dams located in Kongo Central province.
