The Ministry of National Development Planning has expressed optimism that additional Climate Change financing will be provided by the Green Climate Fund for climate change adaptation and mitigation programmes.
According to a statement issued by Ministry of National Planning spokesperson Chibaula Silwamba, Tuesday, Ministry permanent Secretary (Development Planning and Administration) Chola Chabala said this when he paid a courtesy call on Zambia’s Ambassador to South Korea Wilbur Simuusa.
Chabala informed the Ambassador that the GCF was impressed with Zambia’s quality of projects and the determination the country had shown from the highest office in combating climate change.
“The Permanent Secretary revealed that the GCF had agreed to table two proposals from Zambia which includes the Africa Greenco proposal which is a private sector driven project whose aim is to help solve the challenge of lack of creditworthy off takers in the electricity subsector. African Greenco has in excess of US $100 million from other international funding agencies and is seeking an additional US $ 50 million GCF contribution through the Ministry of National Development Planning under the GCF facility. The proposal submitted to the Ministry through the national Designated Authority recognizes that lack of a creditworthy off taker is one of the key factors in deterring investment in the renewable energy sector in Zambia. The introduction of a creditworthy off taker is also posed to help catalyze more investment and support more transparent and fiscally efficient development of the power sector on a regional basis,” read the statement.
“Mr. Chabala further stated that the second proposal is the admission of Development Bank of Zambia as an Accredit entity to help manage GCF Resources as a National Implementing Entity. This will help return financial resources from international donor agencies like GCF in local financial institutions and contribute to strengthening of the Kwacha. Other Financial Institutions earmarked for accreditation include ZANACO, the Ministry of Finance and NATSAVE. The Permanent Secretary also disclosed that during the GCF Board meeting Zambia redoubled its bid to elicit GCF support for the Transforming Landscape for Resilient Development (Tralard) project which has an initial support of US $ 100 million from the World Bank for investment in Luapula, Muchinga and Northern Provinces.”
Chabala informed Ambassador Simuusa that the GCF had agreed, in principle, to provide an additional US $75 million which would see almost all districts in the three provinces covered.
“Ambassador Simuusa expressed optimism that Zambia stands to benefit more from the CGF resources which every country is thriving to have access to given the level of commitment and professionalism that the Ministry of National Development Planning has attached to this cause. He stated that a number of countries are yet to access resources from the GCF despite engaging international consultants but with local civil service expertise Zambia ranks very high in Africa only second to Egypt in resource accessibility but also in the quality of proposals submitted to the GCF. The Ambassador pledged to continue providing the necessary backing before and after the board meetings are held,” stated Silwamba.