To expand renewable energy financing:
IFC partners NDB Bank
“IFC, a member of the Word Bank Group, will share NDB Bank’s risks to
help finance a larger quantum of renewable energy projects, including
mini-hydro and wind power projects in Sri Lanka.
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NDB Bank CEO Russell de Mel, COO Indrajit Wickramasinghe and
Ehsanul Azim (IO) representing the IFC, exchanging the agreement |
IFC is extending a $12.5 million risk-sharing facility to NDB Bank to
support the country’s power-generation capacity while addressing climate
change.
The project is expected to produce economic benefits for local
project developers, including small and medium enterprises.
The initiative is part of IFC’s strategy to help the private sector
mitigate climate change impacts while continuing to meet significant
infrastructure gaps in South Asia.
“Lucrative mini-hydro energy options are becoming scarce while
opportunities in wind power are growing.
Bankers now need to secure projects with a different risk profile for
funding,” said NDB Bank’s CEO Russell de Mel.
“The risk sharing agreement with IFC protects NDB Bank from possible
risks and enables expanding its exposure to renewable energy projects,”
he explained.
IFC will share its financing, project-structuring capability, and
benchmark data for renewable energy technologies with Sri Lanka.
IFC also will further enhance NDB Bank’s ability to appraise projects
using these technologies.
IFC South Asia Director Paolo M. Martelli said, the initiative will
support Sri Lanka’s efforts to increase private participation in wind,
hydro, and biomass projects.
“With most of the country’s power generation reliant on fossil fuels,
this project will help the country diversify its energy infrastructure,”
he said. The project follows a unique distributed-generation approach,
with smaller-scale production of electricity at or near energy demand
improving reliability of supply and lowering pollution by using
renewable sources. |