AFC To Co-develop US$ 120 Million Singrobo Hydro Power Plant In Côte d’Ivoire
Africa Finance Corporation (AFC), a leading investment grade rated multilateral development finance institution and project developer, announced the signing of a joint development agreement with Ivoire Hydro Energy SA (IHE), an Ivorian project company, for the development of the 44MW Singrobo hydroelectric power plant (Singrobo) in Côte d’Ivoire.
AFC has been appointed as a co-project developer and financier and will work with other developers to complete detailed technical studies, finalize the Power Purchase Agreement (PPA), participate in procuring the engineering, procurement and construction contractor, lead the processes for preparing project costs, and oversee the final environmental and social Impact assessment studies.
Project development expenses will be jointly financed by AFC and FMO, the Dutch development bank, through the joint AFC-FMO Project Development Facility (“Facility”). The Facility will provide, in the first instance, a project development equity investment of up to US$3 million to the project. Under the agreement the AFC has to invest a further US$3 million to take the project to financial close. AFC and FMO will also have the option to acquire further] equity in IHE.
Andrew Alli AFC’s President & Chief Executive Officer, commented:
“AFC’s long term vision is to help address Africa’s infrastructure deficit and ensure sustainable economic growth for the continent. We are delighted to be appointed as the lead developer in this transformational regional infrastructure power project, which will not only provide the opportunity to apply AFC’s differentiated model of providing long-term infrastructure financing, value added infrastructure asset project development expertise and importantly deliver bankable projects, but also accelerate regional integration by bridging the power deficit in West Africa, and making an economic difference in the development of the sub-region”
The project will have a 35-year take or pay PPA with Ci-Energies, Côte d’Ivoire’s public utility company under the management of the Ministry of Energy and Petroleum Products. The generated power will be transmitted from a 11/225 KV switchyard to the 225KV Taabo-Abidjan transmission line, through a proposed 225 kV circa 4 km transmission line from Singrobo.
This investment further consolidates AFC’s track record in Côte d’Ivoire whose membership of the Corporation is imminent. The key investments include the EURO 270 million financing of the flagship transport infrastructure project; the Henri Konan Bedie bridge and the 50 million Euro loan facility with the Port Autonome d’Abidjan (PAA) for expansion works to the Abidjan Port complex.