Development of the 44MW Singrobo hydroelectric power plant in Côte d'Ivoire has taken a major step forward following the signing of a joint development agreement between Africa Finance Corporation (AFC) and Ivoire Hydro Energy SA (IHE).
Under the terms of the agreement, 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. This Facility will provide a project development equity investment of up to US$3 million to the project, with AFC 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.
"AFC's long term vision is to help address Africa's infrastructure deficit and ensure sustainable economic growth for the continent," commented Andrew Alli, AFC's President & Chief Executive Officer. "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.
