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S. Korea to fund solar plant in Mozambique

0 CommentsPrint E-mail Xinhua, October 20, 2010
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South Korea will loan 35 million U.S. dollars to Mozambique on its solar plant construction project as part of its "Green Aid," the finance ministry said Tuesday.

Tapping the money from the country's Economic Development Cooperation Fund (EDCF), the country will extend the loan at an interest rate of zero percent for 40 years, which includes the grace period of 15 years, the finance ministry said in a press release.

The fund will be spent on constructing three solar plants that will generate 400-500 watt-hour electricity, according to the finance ministry.

In addition, South Korea will provide training needed to install power cables and distributors, to supply electricity equipment, and to operate and maintain solar plants.

The project marks the first time South Korea finances environmentally friendly projects since the launch of African EDCF.

As a result of the project, South Korea hopes to boost electricity supply in Mozambique, where less than 2 percent of rural areas can enjoy electricity.

The country also seeks to contribute to South Korean firms' roaming into Africa's green growth industries by promoting the country's green image.

Settling the deal, South Korea predicts it will enhance economic ties with the resource-abundant country, the ministry said.

"We will more actively participate in green technology related aid to assist African countries to found a basis for sustainable growth and improve living conditions," the ministry added.

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