Africa Finance Corporation (AFC) signed a joint development agreement with Ivoire Hydro Energy SA (IHE), an Ivorian project company, for the development of the 44-MW Singrobo hydroelectric power plant in Côte d’Ivoire.
The financial institution was 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 (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 the 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.
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 an 11/225 KV switchyard to the 225-KV Taabo-Abidjan transmission line, through a proposed 225 kV circa 4 km transmission line from Singrobo.
