- Region: Africa
- Infrastructures
- Environment
- Untied Loans
- Guarantees
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 2 a loan agreement amounting to up to EUR29 million, of which JBIC’s portion is approximately EUR14 million, with the Government of the Republic of Benin (Benin) under the credit line set up in March 2021*1. The loan is co-financed with MUFG Bank, Ltd. and the Joyo Bank, Ltd. JBIC will also provide a guarantee for the portion co-financed by the private financial institutions.
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The loan is provided as part of JBIC’s GREEN operations*2, and is intended to provide the funds necessary for a project to install new solar PV panels and substation facilities in Benin. The project will help to reduce greenhouse gas emissions, improve the proportion of clean renewable energy in Benin’s energy mix, and reduce the country’s reliance on imported fossil fuels and electricity supplied by neighboring countries. This is a significant contribution toward the overall power supply in a country with a current domestic electrification rate of around 40%.
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The Government of Benin signed the Paris Agreement in 2016. In the official announcement of its national plan titled Programme d'Actions du Gouvernement 2021-2026, the Government expresses its commitment to measures against climate change by, for example, aiming to commence operation of solar power generation projects with a 100 MW total capacity by 2026. The loan is expected to contribute toward reducing greenhouse gas emissions through the promotion of global environmental preservation projects in Benin and help realize the sustainable development of Benin itself.
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As Japan’s policy-based financial institution, JBIC will continue to provide financial support for global environmental preservation efforts by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
Note
- *1
- *2