AFC, Ivorian developer ink deal to build 44 MW hydro plant
Multilateral development finance institution and project developer Africa Finance Corporation (AFC) has announced the signing of a joint development agreement with Ivorian project group Ivoire Hydro Energy SA (IHE) for the development of the 44 MW Singrobo hydroelectric power plant, in Côte d’Ivoire.
AFC had been appointed as coproject developer and financier and would work with other developers to complete detailed technical studies, finalise 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.
The project would have a 35-year take-or-pay PPA with Côte d’Ivoire’s public utility company Ci-Energies, which was under the management of the Ministry of Energy and Petroleum Products. The generated power would be transmitted from a 11/225 kV switchyard to the 225 kV Taabo–Abidjan transmission line, through a proposed 225 kV transmission line from Singrobo. Project development expenses would be jointly financed by AFC and Dutch development bank FMO, through the joint AFC–FMO project development facility.
The facility would provide, in the first instance, a project development equity investment of up to $3-million to the project, with the AFC to invest a further $3-million to take the project to financial close. AFC and FMO would also have the option to acquire further equity in IHE.
Commenting on the announcement, AFC president and CEO Andrew Alli said the group’s long-term vision was to assist in addressing Africa’s infrastructure deficit and help 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 subregion,” he added. Source: Engineering News