IFC invests in solar power project in the West Bank
The International Finance Corporation and Massader, a company established by the Palestine Investment Fund, have signed a loan agreement to finance the construction of hundreds of rooftop solar power panels across the West Bank.
The package includes an $8.1 million loan from IFC and $8.1 million in financing from the Finland-IFC Blended Finance for Climate Program and the Dutch MENA Private Sector Development Program.
IFC will also be providing a local currency loan to Massader to develop energy and infrastructure projects in the Palestinian territories. The World Bank will provide a grant of up to $2 million from the Investment Co-Financing Facility.
The project is designed to enhance the renewable energy sector and address chronic power shortages and blackouts by harnessing a domestically available source of energy. The financing will help Massader build small solar installations on the roofs of approximately 500 public schools to power more than 16,000 houses across the West Bank. The schools will receive free electricity and, in some cases, cash payments for hosting the installations. The majority of the electricity generated from the solar panels will be fed into local distribution systems at a competitive tariff, providing clean, reliable power for residents and businesses.
IFC’s role in structuring the project included building local capacity by developing key project documents such as the power purchasing agreement and construction and operating contracts. This is expected to help the future development of more decentralized, low-cost private sector projects with sound financial structuring.
