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AFD Allocates Rs 2 billion as Budget Support for the Energy Sector

Date: December 10, 2013
Domain:Economy & Finance
Persona: Citizen; Government
 

GIS - 10 December, 2013: The Agence Francaise de Developpement (AFD) approved a credit line in favour of Mauritius to the tune of around 50 million euros, which is approximately Rs 2 billion, as budget support for the funding of sustainable development projects in the energy sector. The loan is combined with a technical assistance facility in the form of a grant of around 1.5 million euros that is about Rs 60 million to provide for expertise in that sector.
 
The financing agreement was signed on December 6 in Port Louis by the Vice-Prime Minister and Minister of Finance and Economic Development, Mr Xavier-Luc Duval and the French Ambassador in Mauritius, Mr Laurent Garnier and the Director of the AFD, Mrs Laurence Breton-Moyet.
 
The loan will be disbursed in two tranches that is 20 million euros in the year 2013 and 30 million euros in 2014 to fund concrete and innovative energy efficiency projects. It will further support the Environment Aid Programme (APE), a support programme to the “Mauritius: Sustainable Island” project initiated in 2009 by the AFD with focus on the following segments namely: energy, transport, town and country planning, biodiversity and adaptation to climate change.
Besides, the loan will be used to support the Government of Mauritius’ efforts towards diversifying the energy sector and to develop and promote energy regulation projects as well as renewable energy that have a real positive impact on the environment, the economy and the well-being of residents.
As for the grant of Rs 60 million, it will help AFD to provide for international technical expertise in the field of renewable energy to assist the Ministry of Energy and Public Utilities in the implementation of energy related policies and projects. Moreover, it will serve for the preparation of a programme for the rehabilitation of public buildings; the putting in place of financing facilities for households wishing to purchase energy efficient domestic equipment; and the mounting of a national programme for energy efficiency practices in enterprises.
Mauritius has since 2007 benefitted from an envelope of about Rs 6.7 billion in the form of loans and grants from the AFD considered as the second bilateral donor agency aimed at supporting the country in the implementation of its economic transition.AFD operates mainly in the fields of environment and energy, public infrastructure, regional cooperation and support to the private sector.
AFD is also providing assistance in economic diversification and helping in preparing the country for the next stage of development within the context of a growing and more sustainable globalisation.
Government Information Service, Prime Minister’s Office, Level 6, New Government Centre, Port Louis, Mauritius. Email: infserv@intnet.mu Website: http://gis.gov.mu
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