Africa Finance Corporation (AFC) has announced the signing of a joint development agreement with Ivoire Hydro Energy SA (IHE) for the development of the 44MW Singrobo hydroelectric power plant in Côte d’Ivoire
AFC has been appointed as co-project developer and financier and will work with other developers to complete detailed technical studies, finalise the power purchase agreement (PPA), participate in procuring the engineering, procurement and construction (EPC) contractor, lead the processes for preparing project costs and oversee the final environmental and social impact assessment studies.
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 225 kV Taabo-Abidjan transmission line, through a proposed 4 km 225 kV transmission line from Singrobo.
Project development expenses will be jointly financed by AFC and Dutch development bank FMO, through the joint AFC-FMO Project Development Facility.
The joint facility will provide an initial project development equity investment of up to US$3mn for the project. Under the agreement, AFC has to invest another US$3mn to take the project to financial closure. AFC and FMO will also have the option to acquire further equity in IHE.
AFC CEO Andrew Alli said, “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.”
AFC has also invested in a transport infrastructure project, the Henri Konan Bedie bridge and expansion works to the Abidjan Port complex in Côte d’Ivoire.
