African Development Bank and Korea launch the Korea-Africa Energy Investment Facility
(AFDB) The Government of Korea and the African Development Bank have signed a
Letter of Intent to launch the Korea-Africa Energy Investment Facility
(KEIF) to provide significant support to the New Deal on Energy for
Africa, which aims to achieve universal access to energy.
The signing, which took place on Tuesday, May 22, 2018 during the
Korea-Africa Economic Cooperation (“KOAFEC”)
meeting at the African
Development Bank’s Annual Meetings in Busan, builds on the 2016 KOAFEC
Ministerial Conference, which recognized enhancing access to energy as a
strategic factor for the modernization and transformation of African
economies. The Facility will contribute towards Africa’s efforts to
achieve universal access to energy and to transform its energy systems.
Under this Facility, the Bank will take the lead in project
development in close consultation with Regional Member Countries. Korea
stands ready to provide US $600 million over a period of five years in
both concessional and non-concessional finance for a variety of energy
operations that will support the provision of electricity for homes,
schools, hospitals, agriculture and industries. The Facility will
support the full range of activities – preparation, construction and
operations, through a mix of financing and technical assistance.
Korea also signed a Memorandum of Understanding with Power Africa
during the same event underlining its intention to support the African
power sector, notably transmission-line infrastructure. The African
Development Bank is a founding partner of the United States-led Power
Africa initiative and envisages working closely with Korea and Power
Africa.
African Development Bank President Akinwumi Adesina thanked the
Government of Korea for its longstanding support to the AfDB and to the
African continent and welcomed Korea’s support for the New Deal on Energy for Africa (link is external) through this Facility, which he said would be “an important contribution towards achieving universal energy access in Africa.”
Korea’s Deputy Prime Minister and Minister of Strategy and Finance,
Dong Yeon Kim, stressed that “Africa is struggling with shortage of
power which is why Korea strongly supports the Light up and power Africa
High 5 of the African Development Bank including through the
Korea-Africa Energy Investment Facility.”
The Bank and the Government of Korea will work on the detailed
implementation arrangements over the coming weeks to be able to
effectively support projects as early as the end of 2018.
Technical contact: Daniel Schroth, Advisor to the Vice-President, d.schroth@afdb.org
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