Globeleq (via its Mozambican subsidiary Globeleq Mozambique Renewable Holdings), Source Energia, and EDM are expected to own 66.5%, 28.5%, and 5% of the Special Purpose Vehicle (SPV) Central Eléctrica da Namaacha (CEN), which was registered in May-2020.

Founded in 2002 and headquartered in the UK, Globeleq is a leading power generation project developer focusing on Africa. Globeleq is owned 70 % by BII and 30% by Norfund, which are DFIs owned by the UK and Norwegian governments, respectively. Globeleq operates 1.8GW of power generation in Africa across different technologies (solar PV, wind, gas-HFO fired). Founded in 2018, Source Energia is a small private energy developer focused on large and small scale on-grid and off-grid projects in Mozambique.

The Project’s total cost is estimated at US$267 million, out of which (a) US$230 million for the wind farm to be funded on a debt to equity split of 75:25 and (b) US$37 million for the TCE to be funded with grant and concessional debt funding. IFC’s proposed investment for the financing of the wind farm includes (i) an A Loan of up to US$25 million, (ii) a Blended Finance loan of up to US$25 million; (iii) a B1 loan of up to US$15 million; and (iv) the provision of interest rate swaps for this debt package. The TCE is expected to be funded mostly by grants, of which a US$1 million from IFC via the Korea Green, Resilient, and Innovative Development (KGrid) Program – Blended Finance Program (the KGrid VGF grant).

The Project is located on a greenfield site in Namaacha, approximately 57km west of Maputo in Mozambique, near the borders of South Africa and Eswatini.                                                 

 This is a Category A project as per IFC's 2012 Policy on Environmental and Social Sustainability as the project has the potential to cause significant adverse E&S risks and/or impacts that are diverse, irreversible, or unprecedented.

The categorization is mainly derived due to resettlement, biodiversity and supply chain risks. Other key risks include (i) construction phase E&S impacts including OHS, contractor management and community safety; (ii) fair working conditions for employees and contract workers; (iii) operational impacts of noise, shadow flicker, community safety; (iv) E&S capacity to manage construction and operation in line with the IFC PSs; and (v) stakeholder engagement and grievance management.