Benin Receives AfDB/Uk $129million R2RS Climate Finance Fund

By Faridat Salifu

The government of Benin Republic has received the sum of $129million fund under the Room to Run Sovereign Programme (R2RS).

The fund, which was recently approved to carry out a Secondary Town Stormwater Drainage Project in the country, marks an important milestone in the collaborative efforts between the African Development Bank and the UK to address climate change impacts in Africa.

The project according to authorities, demonstrates a commitment to unlocking critical climate finance for vital infrastructure and adaptation initiatives across the continent.

It was learnt that the UK Government provided a guarantee to the African Development Bank, resulting in the unlocking of an estimated $106 million of climate finance lending for the project in Benin.

The $129 million loan will be utilized to enhance living conditions in secondary towns, with a focus on climate adaptation activities such as the construction of 100km of resilient stormwater drainage infrastructure, road paving and reforestation of 17 hectares of land.

Originally introduced at COP26, the Room to Run Sovereign Programme aims to optimize balance sheets and enable increased funding for crucial climate projects.

This innovative initiative, which includes a $2 billion guarantee from the UK Government and City of London insurers, is set to provide an additional $2 billion of climate finance to Africa by 2027, emphasizing both adaptation and mitigation efforts.

The Benin project joins previous beneficiaries, including initiatives in Egypt and Senegal, reflecting a broad commitment to water supply, sanitation, and environmental resilience.

With the unlocking of over $400 million in financing, the Room to Run Sovereign Programme stands as a testament to innovative and collaborative climate finance solutions.

Kevin Kariuki, Vice-President for Power, Energy, Climate and Green Growth at the African Development Bank, highlighted the significance of this transaction, emphasizing the institution’s responsiveness to the call for innovative and scaled-up climate finance.

In alignment with the UK’s commitment to building resilience in climate-vulnerable countries, Harriet Thompson, UK Ambassador to Benin, underscored the project’s potential to significantly enhance stormwater drainage, health, and sanitation for up to 1 million people in Benin.

H.E. Jose Tonato, Minister for the Environment and Transport in Benin, expressed gratitude for the African Development Bank’s support, emphasizing the government’s dedication to improving the quality of life for its citizens and strengthening strategic partnerships.

Through this collaborative effort, the innovative climate finance project in Benin is poised to bring about sustainable and impactful change, addressing critical infrastructure and resilience needs in the face of climate change.