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IFC and PROPARCO to Provide $350 Million Financing Package for the Expansion of the Azito Thermal Power Plant in Côte d’Ivoire (Azito Phase 3)


Dakar:
Lucie Blyth, IFC

Telephone: +221 77 740 49697
Email:
lblyth1@ifc.org


Additional power generated by the Project (around 1,000 GWh per annum) will improve access to electricity and support economic growth in Côte d’Ivoire and the sub-region.




Paris, France and Dakar, Senegal, October 18, 2012
— IFC, a member of the World Bank Group, PROPARCO, an affiliate of the Agence Française de Développement (AFD), Globeleq Generation Holdings, a leading independent power producer in emerging markets, and Industrial Promotion Services (West Africa), a member of the Aga Khan Fund for Economic Development (AKFED), signed October 18 2012 in Paris the financing of the Azito Thermal Power Plant’s expansion (Azito Phase 3) in Côte d’Ivoire.


IFC, as Lead Global Arranger of the Project - alongside PROPARCO as European Development Finance Institutions (DFIs) Coordinator, and the West African Development Bank (BOAD), arranged a $350 million debt package, provided by seven financial institutions. In its capacity as European DFIs Coordinator, PROPARCO coordinated the financing package provided by BIO (Belgium), DEG (Germany), FMO (Netherlands) and Emerging Africa Infrastructure Fund (EAIF) – an Africa-focused debt fund supported by several partners, including IFC.


IFC will provide a $125 million loan to Azito Energie, PROPARCO a $55 million loan (of which $22 million are contributed by the Interact Climate Change Facility S.A.), BOAD a $50 million (FCFA 25 billion) loan, FMO a $37 million loan, EAIF a $30 million loan, DEG a $25 million loan and BIO a $23 million loan.


Azito Phase 3 will allow approximately $450 million of foreign direct investment in Côte d’Ivoire to be mobilized and will allow Azito Energie, the company operating the power plant, to generate an additional 1,000 GWh/per annum of clean, low-cost power.  There will be no incremental gas consumption and hence no further greenhouse gas emissions as the Project will convert the existing power plant to combined cycle operations.


Total installed capacity of Azito Thermal power plant will thus increase to 427 MW – making it the largest thermal power plant in Côte d’Ivoire and one of the major ones in the region. This additional power will improve access to electricity for Ivoirians and help sustain Côte d’Ivoire’s economic growth. It will also have the same effect the sub-region, because Côte d’Ivoire exports power to neighboring countries.


Yolande Duhem, IFC Director for West and Central Africa, said, “IFC is very pleased to have contributed, in its capacity as Global Arranger for the Azito Phase 3 project, to such a milestone investment in Côte d’Ivoire. This demonstrates the continued support that the World Bank Group provides to Côte d’Ivoire, in particular in the infrastructure sector, at a time when the country is on the way to recovery from a decade of crisis.”


“The Azito Thermal Power Plant expansion is a landmark project for Côte d’Ivoire which will contribute to improving access to electricity without additional gas consumption, and will support the country’s economic recovery. The support of the AFD (Agence Française de Développement) Group is clear evidence of its commitment to support the Ivoirian authorities’ efforts in rebuilding the country’s economy” said Claude Périou, PROPARCO’s General Manager.


Mikael Karlson, Globeleq’s CEO, said, “There has been excellent co-operation from all involved in both the private and public sectors to achieve financial close. Securing this milestone from the lenders, contractors and key participants, including the Government of Côte d’Ivoire, indicates their confidence in Globeleq, the stakeholders and the excellent operating record of the Azito facility... 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 Côte d’Ivoire.”


Christian Adovelande, BOAD’s President, said, “Through its participation in this project, the West African Development Bank is fully playing its regional bank role, as the Azito Phase 3 project also supports regional integration. Indeed, this increase in capacity of the Azito power plant will help Côte d’Ivoire meet its objectives of exporting electricity to neighboring West African Economic and Monetary Union member countries (including Togo, Burkina-Faso, Benin and Mali through a new transmission line.”.  


Mahmadou Sylla, IPS (West Africa)’s Deputy CEO, said, “As co-developers of the Azito power plant since the beginning in 1997, I am particularly pleased to see this expansion project materialize today. It will contribute to the development of Côte d’Ivoire, in which IPS (West Africa) has been active for 45 years.”


Luc Ayé, Azito Energie’s CEO, said, “I am really pleased to see this expansion, which was planned from the beginning, materialize today. The realization of this project reflects the determination of our shareholders to continue investing in Côte d’Ivoire and will enable the country to focus on economic growth.  I am particularly pleased to have such leading financial institutions participating in this project alongside us.”

The 288 MW Azito power plant is today one of the major power plants in Côte d’Ivoire, generating over  2,200 GWh per annum - approximately 30% of the country’s electricity. Initiated in 1997, the Azito Thermal Power Plant project has been a success story and a clear example of the potential benefits, for all stakeholders, of well designed Public Private Partnerships (PPPs) in Sub-Saharan Africa in the infrastructure sector. Since its commissioning in 2000, Azito Thermal Power Plant has been a success on all accounts, reliably providing low cost, base load with high availability power while efficiently using Côte d’Ivoire’s natural gas endowment. This trail blazing PPP has paved the way for similar projects and has been used as a model to replicate, further evidencing the significant role that the private sector can play in the development of infrastructure projects in Africa to bridge the continent’s infrastructure gap.  


About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org.

About PROPARCO

PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs). PROPARCO finances economically viable, socially equitable, environmentally sustainable and financially profitable projects around the world. PROPARCO is one of the world’s leading bilateral development finance institutions. It invests on four continents encompassing the major emerging countries and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility.  For more information, visit
www.proparco.fr


About Globeleq

Globeleq, an Actis portfolio company, is an experienced developer and operator of power projects, actively developing energy solutions for the emerging markets of Africa and the Americas. The company develops economically sustainable projects that support the continued development of the electric power sector in these regions. For more information go to
www.globeleq.com
 
About IPS (West Africa)

Industrial Promotion Services (West Africa) is a member of the Aga Khan Fund for Economic Development (AKFED) group of companies, with a strong footprint in Côte d’Ivoire and the sub-region dating back to 45 years, which participates in projects in the agriculture and infrastructure sectors with projects such as the Azito Thermal Power Plant. IPS (West Africa) is present in Africa through, among other leading companies, Filtisac, Ivoire Coton and Azito. For more information visit
www.ips-wa.org

Paris:
Fanette Bardin, PROPARCO
Telephone: +33 1 53 44 31 49
Email : bardinf@proparco.fr