Africa Finance Corporation (AFC) has executed financial close of bridge loan facility for the 44MW Singrobo-Ahouaty hydroelectric power project and associated infrastructure, which will be constructed on the Bandama River in Côte d’Ivoire.
AFC has committed to provide a total of €174m to Ivoire Hydro Energy (IHE), the project development company for the Singrobo-Ahouaty hydroelectric power project, and the amount will include an equity investment of €24.4m and a bridge loan of €149.6m. The first disbursement of the bridge loan facility took place in December 2018.
IHE’s other shareholders include Themis, a project development company, and IHE Holding, a company incorporated by Ekolan Alain Etty, a local entrepreneur. The project will be built by Eiffage, a French engineering, procurement and construction (EPC) contractor, selected after a competitive bidding.
AFC president and CEO Samaila Zubairu said: “Since 2015, when AFC began working with SAHP as a financier and co-developer, we have achieved many development milestones. We are proud to be a major investor and facilitator in the Singrobo-Ahouaty Hydropower Project because this new source of renewable power will be integral to Côte d’Ivoire’s economic growth and social development.
“The Singrobo-Ahouaty Hydropower Project is an example of AFC’s objective of supporting Africa in unlocking its economic potential while also attaining attractive returns for our shareholders.
“As our first equity investment in a hydro Independent Power Producer (IPP) and our first power equity investment in a Francophone country, SAHP is an optimal step in diversifying AFC’s power portfolio, building our balance sheet and expanding our reach across French-speaking Africa.”
The project involves the construction of a 23m high and 1.37m long main dam which will create a 105 million cubic meter reservoir. A 134m long roller compacted concrete dam will be created on each side of the concrete spillway and water intake structure.
The associated infrastructure of the project will include a substation near the power house to evacuate power at 90kV. The infrastructure will also consists of a 3km long dual transmission line connecting the existing Taabo-Agboville transmission line.
The project is expected to increase the overall power capacity of the country, which currently generates 2,200MW of electricity.