Côte d’Ivoire has secured $34 million from the Emerging Africa Infrastructure Fund (EAIF), which is part of the Private Infrastructure Development Group (PIDG). The funds will go towards building a 44MW hydroelectricity generation plant – an important strategic economic asset for Côte d’Ivoire. The funds will be allocated over 18 years to Ivoire Hydro Energy (IHE), which will build a 44MW hydroelectricity generation plant on the Bandama River near the village of Singrobo in Côte d’Ivoire. Financial close is expected in late Q3 2021. The $240 million project is forecast to take some 36 months to build.
Paromita Chatterjee, an investment director at EAIF’s managers Ninety One, says: “The new facility being built at Singrobo is the country’s first hydroelectric development by an independent power producer. The project has seen EAIF and PIDG deliver on three core objectives; mobilising private capital, enabling economic development and contributing to increasing Africa’s stock of renewable energy infrastructure.” A long-term power purchase agreement will see all of the energy produced by the Singrobo plant sold to Compagnie Ivoirienne d’Electricité, the operator of Côte d’Ivoire’s national grid. In addition to adding to the country’s generation capacity, the plant enhances the system’s flexibility, meaning it may be called in to meet baseload demand as well as peak demand.
The African Development Bank (AfDB) acted as the mandated lead arranger of the debt finance and will be a senior lender in its own right. In addition to AfDB and EAIF, other lenders are the German international development agency DEG and the Africa Finance Corporation (AFC). Twenty-five per cent of the project cost is funded by equity from the project’s shareholders, IHE Holding, the Africa Finance Corporation and DIPFA, a Denham Capital owned international investment platform for power projects.
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