The African Development Bank Group (AfBD) has granted two loans, totaling €176m ($216m), in support of the second phase of the Ouarzazate solar power project in Morocco.
The project’s second phase intends to develop two new power stations which will have a total capacity of around 350MW and average estimated cumulative production of over 1,100GWh per year.
AfDB Energy, Environment and Climate Change Department director Alex Rugamba said: "The project is one of the innovative developments in the energy sector supported by the Bank, based on the technology used and the financial arrangements with the support of the Climate Investment Funds, namely a public-private partnership supported by several donors.
"The Bank’s participation in this second phase will support its position as a leading partner in the development of Morocco and strengthen its dominant role in combatting the effects of climate change."
The project forms part of the Moroccan Solar Energy Programme (NOOR), which is launched to develop at least 2,000MW of capacity by 2020 to meet the power requirements.
The first phase of the project began in 2013 with the construction work on the first 160MW solar power station (NOORo I), which is due to commence operation by the end of 2015.
The project is expected to reduce CO2 emissions by around 522,000t a year as well as promote industrial sector producing solar equipment, which will create jobs.