AfDB and LNG project win Multilateral Deal of the Year Award

THE prestigious Global Multilateral Deal of the Year 2020 award has jointly awarded to the African Development Bank and the Mozambique Liquefied Natural Gas (LNG) Area 1 Project by the Project Finance International (PFI).

The AfDB disclosed this in an email statement on Thursday, Nairametrics reports.

The project as disclosed by the Multilateral bank, is currently the largest foreign direct investment in Africa valued at over $24 billion, and “will exploit Mozambique’s immense offshore natural gas reserves, which can potentially transform global energy markets. “

According to the AfDB, it signed an agreement for a $400 million senior loan to finance the project in July 2020, providing funding along with a global syndication of commercial banks and export credit agencies.

The project will boost the country’s ability to meet energy demand through gas-fired electricity and will support its ambitious goal to provide universal access to energy to its citizens by 2030, the AfDB said.

“The project can also potentially feed downstream industries that use natural gas, such as fertilizer and electricity producers. It can thus become an engine for agricultural development and trade across the Southern African Development Corporation region.”

The PFI’s Editor, Rod Morrison, said: “I still find it remarkable how so many project financings were transacted this year, including the Mozambique LNG deal.

“The multilaterals played a key role in getting the project financed.”

President Dr. Akinwumi A. Adesina of the AfDB has expressed his delightment over the Bank’s award win, stating that it strengthens the Bank’s ability to attract large investments to Africa.

“I am delighted with the award of the Global Multilateral Deal of the Year 2020 to the African Development Bank and the Government of Mozambique LNG Area 1 Project, by Project Finance International,” he said.

“This great recognition reinforces the African Development Bank’s leadership and role in helping to structure financing and attract investments to Africa.

“The $24 billion project, which was structured at the Bank’s Africa Investment Forum, is Africa’s largest foreign direct investment. We will work with all partners to ensure that this project helps to unlock greater economic growth for Mozambique and benefits millions of people in the country, while building climate resilience,” he added.

AfDB Chief Investment Officer, Fernando Balderrama, also expressed the Bank’s excitement about the growth and industrialization opportunities created for the Mozambican people through the project.

“The African Development Bank will continue to play a convening role to facilitate and assist with the suitable implementation of this investment, advocating for international best practice, small and medium enterprise development and diversification, women’s empowerment, job creation, and other critically important considerations,” he said.