Second round of climate funding from KfW to Development Bank
The Development Bank of Namibia (DBN) this week announced it has taken up another concessional loan from the German Development Bank, the Kreditanstallt fuer Wierderafbau (KfW) of approximately N$600 million for the funding of climate-mitigation infrastructure.
Typical projects that will be targetted with this tranche of funding include green energy, water reticulation and low-carbon transport.
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.
The new funding provides long-term capital to DBN to offer private and public investors investment incentives to establish projects with a direct bearing on climate mitigation. It follows the first credit-line amounting to approximately N$240 million signed in December 2018, to assist private companies to set up solar PV plants.
Enhancing sustainable investment
At the signing ceremony, KfW Country Director, Beatrice Lucke, congratulated the DBN saying “The 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 infrastructure which is the basis for any sustainable development around the world.” The intention of the concessional loan is to maximise these objectives, she added.
Development Bank Chief Executive, Martin Inkumbi, said that the Bank 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.
Inkumbi 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.
Ms Beatrice Lucke (left) of the KFW and Mr Martin Inkumbi of DBN signed a second funding agreement on 30 August in Windhoek for projects that mitigate climate impact.
