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The French Development Agency, AFD, is to provide a loan of about six million Euro for an electricity project in South Africa`s eThekwini municipality in Durban.
According to the agreement signed in Durban, the project will generate electricity through a fermentation process of the waste collected from three neighbourhoods in the city of Durban.
The project will be developed at three landfills in and around Durban - Marianhill, Bisasar Road and La Mercy - where gas recovery wells and generators are under construction.
About 10 megawatts of electricity would be generated through the project expected to reduce South Africa`s production of greenhouse gases.
The AFD said in a statement Tuesday the project would enable South Africa to earn carbon credits through the Clean Development Mechanism (CDM), adding that the carbon credits would be sold through the Prototype Carbon Fund managed by the World Bank.
The agency also said it would support other projects in South Africa under the Framework Charter for Partnership 2006-2010, recently signed by France and South Africa.
News date: 12/10/2006