The European Investment Bank (EIB) intends to support an investment programme, which is likely to boost the energy infrastructure in Guinea.
The programme will involve redevelopment initiatives for four hydropower plants at Grand Chutes, Donkea, Baneah and Garafiri in the West African country.
Upgrades at the facilities will raise its combined power generation capacity from 75MW to 122MW.
Two substations at Sonfonia and Kipe, and an electricity distribution in Conakry will also be expanded and upgraded, under the same programme.
Around 38% of the entire project value will be offered by EIB, with other contributions coming from the Republic of Guinea, the Islamic Development Bank, the Kuwait Development Fund, the World Bank and the African Development Bank.
European Investment Bank vice-president Pim van Ballekom said: "West Africa faces huge energy challenges, and the European Investment Bank is committed to supporting investment across Africa that both supports economic activity and improves lives.
"The Ebola epidemic is yet to be contained but it is essential that the international community does not abandon the region.
"We stand ready to do all we can to assist now and support economic recovery in the years ahead."
Despite having hydropower resources, the African nation is limited by its low power generation and distribution capabilities, and its increased costs for operating diesel generators.