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New N$600 Million DBN Loan To Focus On Large-Scale ‘Green’ Projects

By: Annakleta Haikera
The Development Bank of Namibia (DBN) has taken up another concessional loan from the German Development Bank, the Kreditanstallt fuer Wierderafbau (KfW) of about N$600 million ( about €30 million) for the funding of climate-mitigation infrastructure.
The Development Bank of Namibia (DBN) Chief Executive Officer Martin Inkumbu said the second concessional loan, which was signedon Thursday,will be used to finance large scale projects in solar power, renewable energy and agriculture.
“We will deal with large scale projects, such as solar power energy and renewable energy and agriculture projects. This project should be about improving the natural environment. We will consider all projects as long as the project has a positive impact on the natural environment,” Inkumbi told The Villager.
The new credit-line follows the first of about N$240 million signed in December 2018, which was primarily used to assist private companies to set up solar PV infrastructure.
DBN’s existing portfolio of climate-mitigation projects encompasses infrastructure projects for solar photovoltaic and wind generation as well as rural and urban water infrastructure and public transport projects.
Inkumbi said the new loan will provide long-term financing to enable DBN to offer private and public investors incentivised conditions for climate-related infrastructure projects.
“Those with renewable energy projects can apply or rather approach us, or perhaps if you have an interesting agricultural project that is under control by the environment and it should be strictly green schemes, we will consider such projects. We might also consider projects where companies are putting up solar channels to get electricity for use in the company,” Inkumbi said.
KfW Country Director Beatrice Lucke said that DBN’s main objective to contribute to economic growth and social development in Namibia will increasingly be achieved by attracting investment in green and transformative infrastructurewhich is the basis for any sustainable development around the world.
The intention of the concessional loan is to maximise these objectives, she added.
Inkumbi said DBN has built up a significant project pipeline for eligible projects particularly in the renewable energy space over the past years and is looking forward to ultimately move ahead with the financing.
He expressed his appreciation to the KfW and the German government, saying that the funding provides the Bank additional space to improve and refine financing models and options.

Annakleta Haikera

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