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A USD 4.2 million grant to support the preparation of a new African Development Bank (AfDB) hydropower project in the Democratic Republic of the Congo (DRC) and Zambia was approved by the Multilateral Cooperation Center for Development Finance (MCDF) Governance Committee during its meeting in Egypt’s New Administrative Capital on 21 September.

The MCDF grant will finance technical, economic, and financial feasibility studies, as well as an environmental and social impact assessment, for the AfDB Luapula hydropower project’s three priority hydropower sites and their associated transmission corridors.

MCDF’s underlying investment objective is to support and strengthen generation and transmission capacity to balance demand in Zambia’s Copperbelt province and the DRC’s Katanga mining region, contributing to regional integration and socioeconomic development in Zambia, the DRC, and interconnected regions in the Eastern Africa Power Pool and the Southern African Power Pool (SAPP).

“The proposed Luapula Hydropower Scheme will provide approximately 789 megawatts (MW) of green hydro baseload capacity to the Zambian as well as Democratic Republic of the Congo power grid, significantly increasing the available generation power to a growing mining sector for both countries, which aligns well with the African Development Bank and its partner’s objective to invest in increasing power generation and green baseload capacity within the continent,” said AfDB Chief Utility Management Officer Cecilia Liezl Harmse.

“This will also improve power trading in the Southern Africa Development Community (SADC) region, effectively contributing to positive economic growth,” she added.

The Luapula hydropower project was identified as a priority project in the SAPP Plan and in the SADC and Program for Infrastructure Development in Africa priority list.

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Infrastructure development opportunities for enhancing Africa’s cross-border connectivity and sustainable growth were spotlighted during a regional workshop in Abidjan, Cote D’Ivoire on 11-12 December, co-organized by the African Development Bank (AfDB), Multilateral Cooperation Center for Development Finance (MCDF), and Asian Infrastructure Investment Bank (AIIB).

Representatives from International Financial Institutions, regional economic communities, development finance institutions, and other lenders discussed potential infrastructure projects that could strengthen connectivity among African countries and between the continent and regional markets.

Mike Salawou, Director of AfDB’s Infrastructure and Urban Development Department, highlighted the importance of public-private partnership (PPP) project development as the bank and partners seek to build infrastructure that is green and climate-resilient and lifts Africa’s competitiveness and trade.

He underscored the value of knowledge and best practice sharing from Asia into Africa in areas such as transport, logistics, and economic corridor development and the role MCDF is increasingly playing to deliver related learning opportunities.

“Africa is the largest beneficiary region of MCDF’s connectivity infrastructure development work,” noted Frederic Asseline, MCDF’s Program Head. “MCDF welcomes opportunities to support connectivity infrastructure projects under the Program for Infrastructure Development in Africa Project Action Plan 2 that can facilitate African market growth and make the African Continental Free Trade Area a success.”

Supee Tervaninthorn, Special Advisor to the AIIB Vice President for Investment Operations Region 2, emphasized the bank’s commitment to support sustainable connectivity projects promoting connectivity between Asia and Africa and global public goods.

Participants went on to explore sovereign and PPP co-financing options within the framework of the Program for Infrastructure Development in Africa Priority Action Plan 2, as well as other African continental and regional connectivity projects.

The projects focus on key connectivity sectors, including energy, transport, information and communications technology, and water, and align with AfDB, MDCF, and AIIB’s mandates to boost sustainable cross-border connectivity through regional cooperation and integration.

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