The International Finance Corporation (IFC), the financial wing of the World Bank Group, and Massader, a subsidiary of the Palestine Investment Fund (PIF), announced that they signed a loan agreement to fund the installation of rooftop solar power panels across the West Bank region.
The loan package includes an $8.1 million (~₹578.5 million) loan from IFC alongside another $8.1 million from Finland-IFC Blended Finance for Climate Program and the Dutch MENA Private Sector Development Program. The IFC said it would also provide a local currency loan to Massader to develop energy and infrastructure projects in Palestinian territories.
Additionally, the World Bank also said it would provide a grant of up to $2 million (~₹142.8 million) from the Investment Co-Financing Facility. All this financing is to help Massader solarize about 500 public schools to power 16,000 houses in the West Bank Region.
The schools are to get the electricity for free and, in some cases, receive payments for hosting the installations. Most of the generated power from the solar panels will be fed into local distribution systems at a nominal tariff and for sale to residents and businesses.
“By developing 35 MW of distributed solar systems, we will enhance the power supply through sustainable sources, create energy savings for the education system, which can free budget for schools’ improvement, and provide electricity to the grid at competitive tariffs thus lowering the overall cost of electricity and contributing to economic and job growth,” said Massader CEO Azem Bishara.
The IFC said that once these solar panels are up and running, they will prevent the release of 30,000 tons of greenhouse gas emissions a year. They will also help reduce the country’s dependence on imported electricity, which accounts for over 90% of the total power consumed in the West Bank.
Recently, the IFC announced that it would provide a loan to the Vietnam Prosperity Joint Stock Commercial Bank (VP Bank) to help expand its lending capacity to small and medium enterprises (SME) for climate-friendly projects.
Previously, Mercom reported that the IFC joined hands with the Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh to develop a 35 MW solar project. This partnership will see the development of the solar power project in the Kushtia district of the country.
Nithin is a staff reporter at Mercom India. Previously with Reuters News, he has covered oil, metals and agricultural commodity markets across global markets. He has also covered refinery and pipeline explosions, oil and gas leaks, Atlantic region hurricane developments, and other natural disasters. Nithin holds a Masters Degree in Applied Economics from Christ University, Bangalore and a Bachelor’s Degree in Commerce from Loyola College, Chennai.