The European Bank for Reconstruction and Development (EBRD) has launched a $250 million financing programme to spur private sector investment in renewable energy in Morocco, Egypt, Tunisia and Jordan, it said on Tuesday.

Many countries in the Mena region still rely heavily on imported oil and gas, which can be highly polluting.

The EBRD said it is earmarking up to $250 million in debt and equity funding for private companies in the southern and eastern Mediterranean region to build renewable energy generation capacity.

Most of the energy produced will be sold directly to private sector consumers such as cement firms and hotel groups, it added.

The first project to be financed under the programme is expected to be the 120-megawatt Khalladi wind farm near Tangiers in Morocco.

Two international funds are also investing in the programme along with the EBRD.

The Climate Investment Funds' Clean Technology Fund is providing up to $35 million and the Global Environment Facility up to $10 million of concessional financing, which will not exceed 10 percent of the value of any one project. – Reuters