IFC, Globeleq and Industrial Promotion Services (West Africa) have agreed to provide the financing for the expansion at Azito power plant
Image: Phase 3 construction at the Azito power plant. Photo: Courtesy of Azito Energie.
International Finance Corporation (IFC), Globeleq Africa Holdings and Industrial Promotion Services (West Africa) have agreed to provide €264m (£236m) financing to expand the Azito thermal power plant in Ivory Coast.
The financing will be used to build the planned Phase 4 at Azito power plant, where new gas plant and steam turbines with a capacity of 253MW will be added. This will increase the overall power generating capacity to 2GWh per annum, which is more than 30% of the country’s electricity for the whole plant.
The new Phase 4 is expected displace the less efficient and older thermal units in the market, substantially reducing costs and emissions, while contributing to the growing demand for the electricity in the country.
The additional power generated will be supplied to the hundreds of thousands of homes and businesses.
IFC infrastructure and natural resources, Middle East and Africa regional industry director Linda Rudo Munyengeterwa said: “We are very pleased to see Azito Phase 4 reach this important milestone. This project will allow Côte d’Ivoire to meet growing demand while reducing sector costs and emissions and enable the country to integrate more renewables going forward, while consolidating it as a regional energy hub.
“Congratulations to the Government of Côte d’Ivoire, Azito Energie and its shareholders, Globeleq and IPS WA, for this achievement.”
Azito Phase 4 will support the country’s aim of generating 42% energy from renewable sources by 2030
Azito Phase 4 is also expected to support the country in meeting its national target of generating 42% of its energy from renewable resources by 2030, by supporting grid stability and helping to integrate intermittent renewables to complement the 900MW hydropower base.
As the lead arranger, IFC helped in arranging the full debt financing package from the African Development Bank (AfDB), the West African Development Bank (BOAD), OPEC Fund for International Development (OFID), a pool of European Development Finance Institutions (EDFIS), including PROPARCO, the Belgian Investment Company for Developing Countries (BIO), the German Investment Corporation (DEG) and the Emerging Africa Infrastructure Fund (EAIF) – an Africa-focused debt fund managed by Investec Asset Management and the Netherlands Development Finance Company (FMO).
Globeleq CEO Paul Hanrahan said: “As a long-term supplier of reliable and environmentally sustainable power to the people of Côte d’Ivoire, we and our shareholders, CDC and Norfund, are delighted to expand our role in the country’s growth and development.”
Industrial Promotion Services (WA) CEO Mahamadou Sylla said: “This fourth expansion of the Azito plant builds on the long-term relationship between IPS (WA), the Government of Côte d’Ivoire and the DFIs community which combined support amounts to over USD 750 million (more than CFA 430 billion). We are grateful for this partnership, which has allowed IPS (WA), a member of the Aga Khan Fund for Economic Development (AKFED), to strengthen its role as a contributor to the development of Côte d’Ivoire and other countries in the subregion.”