MANAGEMENT'S REVIEW
NEW AGREEMENT INCREASES FUNDING The Nordic Investment Bank (NIB) and IFU have concluded a loan arrangement, which improves IFU’s ability to increase loan financing for sustainable projects in developing countries.
which include a Nordic interest like transfer of knowledge or purchase of goods and services. The loan agreement with NIB has a 10-year duration. •
The loan agreement gives IFU access to EUR 50m that can be lent on to projects in developing countries,
DANIDA SUSTAINABLE INFRASTRUCTURE FINANCE
DSIF will support a power transmission line in Mali
As of January 2020, Danida Business Finance changed its name to Danida Sustainable Infrastructure Finance (DSIF). The new name reflects the nature of the projects that are financed and the Danish Government’s commitment to sustainable and climate-smart infrastructure in developing countries. One example is the Santa Cruz Wind Energy Project in Bolivia, which was approved by the minister for development cooperation in 2016. The 108 MW windfarm is under construction and will start producing energy to the grid in 2020, supplying one million people with green electricity.
DSIF is expanding the pipeline into new countries. In 2019, the Danish minister for development cooperation approved support for the first DSIF project in Pakistan – the Faisalabad Wastewater Treatment Project. The treatment plant is in Faisalabad, the third largest city in Pakistan, and will treat wastewater from 765,000 people and surrounding industries. The two first DSIF projects in Ukraine were also cleared in principle and included in the DSIF pipeline in 2019. The Zaporizhzhia Wastewater and Sludge Treatment Project and Kremenchuk District Heating Renovation Project covering 760,000 and 25,000 people, respectively. Both projects will upgrade existing systems with cutting-edge technology and thereby improve energy efficiency and reduce pollution. Both projects are implemented in cooperation with NEFCO, who has extensive experience with implementing projects in Ukraine. Finally, a power transmission lines project in Mali – also the first DSIF project in the country – was cleared in principle in 2019. The project will supply affordable and reliable electricity to industries and population in the region of Kayes in Mali.
Santa Cruz Wind Energy Project, Bolivia.
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DSIF offers financing on concessional terms to sustainable and climate-relevant infrastructure projects in developing countries, which would not otherwise have obtained financing on commercial terms. DSIF is financed by the Danish State and has since 1993 contributed to water, sanitation and energy projects based on state-of-the-art Danish technology and know-how in 31 developing countries in Africa, Asia and Latin America. •