AFC to co-develop $120m Côte d’Ivoire’s hydro power project
Africa Finance Corporation (AFC), a leading investment grade rated multilateral development finance institution and project developer, has announced the signing of a joint development agreement with Ivoire Hydro Energy SA (IHE), an Ivorian project company, for the development of the 44MW Singrobo hydroelectric power plant in Côte d’Ivoire.
AFC has been appointed as a 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 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.
The facility will provide, in the first instance, a project development equity investment of up to $3 million to the project.
Under the agreement, AFC has to invest a further $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 President and Chief Executive Officer, Andrew Alli said that his organisation’s long term vision “is to help address Africa’s infrastructure deficit and ensure sustainable economic growth for the continent.”
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