#Country Updates #Energy #News #South Sudan

Bringing Projects to Financial Close in South Sudan

Energy Capital & Power (ECP) recently spoke with Rick Lorio, Managing Director of Energy Investment Company, about the potential of LNG-to-power projects to boost electrification rates, as well as the role of credit support instruments in stimulating foreign direct investment.

What role does Energy Investment Company (EIC) play in developing energy and infrastructure projects in sub-Saharan Africa?

EIC is active in Africa via a transaction-based consulting role, as well as in project development and operation. We have worked in numerous countries in Africa and the consistent theme is the difficulty in developing executable transactions. We strive to play a critical role in getting projects to financial close. Our experience spans the entire energy value chain. In Europe, we developed an independent gas storage company that we eventually sold to a private equity group. In Africa, our CEO was appointed to the board of an integrated gas-to-power project company, as one of the appointed board members from an international mining company.

Which type of projects carry the most potential to transform local economies in South Sudan and across the continent?

EIC believes that a properly-sized LNG-to-Power solution should be on the agenda for South Sudan. Numerous studies have already been undertaken. The project for power should be sized at 25% of the current installed capacity. Once the project is operational, the project can be upsized via a pipeline. Project-on-project risk is the challenge in the current plan. In short, South Sudan is a country with 3,400 MW of installed generation and a 47% electrification rate, which translates to 71% in urban areas and 35% in rural areas. The country is ready for cleaner burning power plants and investors should evaluate South Sudan as their next investment destination.

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Source: EnergyCapitalPower

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