India signs $100M line of credit agreement with African Development Bank

India has achieved another milestone in solar energy development. Recently the export-Import Bank of India has signed $100 million line of credit agreement with the African Development Bank (AfDB) to finance solar energy projects.

The agreement was meant to provide electricity transformers for solar electrification in rural areas in three states of Enugu, Kaduna and Cross River.

The 100 million dollars would be spent on distribution of transformers for 96 communities in three senatorial districts of Enugu State. It also said that part of the loan would be used to provide a substation, including solar mini-grid electrification and solar street lighting in Kaduna State.

India-Exim bank would also reimburse 100 percent of the contract value to the Indian exporters upfront upon the shipment of equipment and goods under the agreement.

Yaduvendra Mathur, MD of India-Exim Bank, said the bank is looking forward to further cooperation in different sectors.

The agreement between both parties has been in negotiations for seven years, and that its implementation signified a great shift in the relationship between Exim Bank and Nigeria, said Nigeria’s Minister of Finance, Dr Ngozi Okonjo-Iweala.

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