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Green Climate Fund approves EBRD projects in Tajikistan and Morocco

 

PROJECT / PROGRAMME NEWS

Large infrastructure projects to strengthen climate resilience

6 April 2017 – London, UK – Two EBRD climate resilience project proposals for the modernisation of a hydropower plant in Tajikistan and an irrigation scheme in Morocco have been approved for co-financing by the Green Climate Fund (GCF) today.

The total project volume for the two projects is US$ 415 million, of which US$ 81 million will be provided by the GCF in the form of concessional loans and grants:

  • In Tajikistan the EBRD and other co-lenders are providing US$ 158 million for the climate-resilient upgrade of Qairokkum hydropower plant, with co-financing of US$ 50 million from the GCF.
  • Under the Morocco Saïss Water Conservation Project the EBRD and partners are extending US$ 207 million for irrigation infrastructure that will protect agricultural production from the impacts of climate change with a co-financing grant contribution of €32 million from the GCF, together with a further €54 million contribution from the Kingdom of Morocco.

Craig Davies, EBRD Head of Climate Resilience Investments, said: “These investments will strengthen the climate resilience of critical infrastructure in both countries, foster greater private sector involvement and benefit key sectors in both countries. The EBRD believes that successful economies should be competitive, green, well-governed, inclusive, resilient and integrated.”

In Tajikistan, the modernisation of the Qairokkum hydropower plant will address the energy security needs of 2.4 million people in the northern Sughd region in the face of increasing climatic variability. GCF support will enable best international practices on climate risk management to be introduced to the Tajik hydropower sector.

In Morocco, extreme water scarcity is being exacerbated by the impacts of climate change, and unsustainable groundwater use is leading to diminishing groundwater reserves. This poses a severe threat to agricultural production and rural livelihoods as more than 80 per cent of abstracted water is used for agricultural irrigation. Of the total agricultural land, only 15 per cent is irrigated, often with inefficient water use and management practices.

In response to climate change, the Morocco Saïss Water Conservation Project will improve the climate resilience of the country’s highly vulnerable agriculture sector. This will be achieved with a transformative water transfer scheme that will deliver more than 100 million cubic metres of irrigation water to the Saïss plain each year, thus enabling a switch from highly unsustainable groundwater to the use of sustainable surface water resources, as well as improving access to best-practice and efficient irrigation techniques.

To read full news release, click here.

The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in Central and Eastern Europe and ex-Soviet countries. The EBRD uses investment to help build market economies and democracies from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses.  For more information, visit http://www.ebrd.com/index.htm

Source: EBRD