Globeleq says that it is ready to start the construction of a power plant expansion project in Côte d’Ivoire following the signing of financing arrangements.
The London-based power company, which specialises in emerging markets, has reached financial close for the 139 MW expansion of the 288 MW Azito gas-to-power plant near Abidjan. Financing will be provided on a limited recourse basis, with 80 per cent of funding provided by lenders.
Equity for the project will be provided by Globeleq and its partner in the project, IPS (West Africa), a company that is majority owned by the Aga Khan Fund for Economic Development.
“Securing this milestone from the lenders, contractors and key participants, including the Government of Cote d'Ivoire, indicates their confidence in Globeleq, the stakeholders and the excellent operating record of the Azito facility,” Globeleq's CEO, Mikael Karlsson observed. “This additional generation will provide much needed energy, a key driver in the development of the local economy and improvement in living standards of the people of Cote d’Ivoire.”
The expansion project will involve the conversion of the 2 x 144 MW simple cycle plant to combined cycle operation through the addition of two heat recovery steam generators and a single steam turbine. Energy from the expanded plant will be sold to the privately-owned energy company, CIE, for 20 years.
Lenders to the project include the International Finance Corporation, Proparco and BOAD, the West African development bank. The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group will be providing equity insurance for Globeleq’s investment.
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