Green Africa Power (GAP), which provides loans to renewable power generation projects in Africa, has received a commitment of NOK300 million (£26 million; €33 million; $41 million) from the Norwegian Ministry of Foreign Affairs.
The firm, which is advised by London-based fund manager EISER Infrastructure Partners, is already backed by the UK’s Department for International Development and Department of Energy and Climate Change and now has total funding of £121 million.
GAP is part of the Private Infrastructure Development Group Trust (PIDG), a mobiliser of private sector investment to assist developing countries. It provides long-term subordinated loans and contingent lines of credit to privately-owned renewable power generation projects in Africa, investing alongside commercial lenders and equity investors.
“Renewable energy investment can make a substantial difference to the economic development of Africa, so it is fantastic news that the Norwegian Government has decided to back GAP’s cause,” said Vivian Nicoli, partner at EISER Infrastructure, in a statement.
The statement added that GAP expects to start deploying its funds in the first quarter of 2015 and has begun work to identify and review potential investments. EISER will work with renewable energy developer Camco Clean Energy to originate, execute and manage projects that are eligible for GAP funding.
EISER, which invests in energy, the environment and transport, has assets under management of more than €3.5 billion in funds and co-investment structures.