Ethiopia Gets Danske Bank Loan to Boost Energy

ADDIS ABABA – A Loan Agreement amounting 117.30 million euros (equivalent to 4.49 billion Birr) signed on Monday between Ethiopia and the Danske Bank A/S for Assela Wind Farm project.

The loan deal was signed between finance minister Ahmed Shide, on behalf of Ethiopia, and Jelsper B. Petterson, Director of Danske Bank and Olaf S. Mark schet, Associate Director of Danske Bank, representing Danske Bank A/S, on Monday, virtually.

According to the Ministry of Finance, the total contracting amount of the project is 146 million euros, of which, 117 million euros of the loan will be covered by the Danske Bank A/S.

The Danida Business Fund (DBF), administered by the Investment Fund for Development Countries on behalf of the Government of Denmark, committed to contribute a 28.7mln Euro cash grant for the project.

In addition, DBF will subsidies the Interest rate, Bank Margin, and EKF premium expenses of amounting to 66mln Euro.

The DBF total support in terms of the grant, including the cash grant, is 94.7 million euros. The financial support for the project is part of the Danish development assistance to Ethiopia.

This Agreement is entered into to support the Project for the design, test, delivery, installation, completion and commissioning of a 100 MW wind farm at the Assela site of Oromia regional state.

The project enables the introduction of Danish wind power technology to Ethiopia and promotes the sustainable use of renewable resources, according to the Ministry of Finance.


Featured Image: Finance Minister Ahmed Shide [Photo File]

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