Bamako, Mail, 18 July, 2015 -- IFC,
a member of the World Bank Group today announced that IFC InfraVentures,
the global infrastructure project development fund, and Eranove Group,
the West African leader in electricity production, have signed a concession
agreement with the government of Mali to develop the €110 million Kenié
The 30-year concession agreement covers the
development, construction and management of the Kenié Hydropower project.
Once operational, the plant is expected to generate between 35-56 megawatts
of electricity. This will significantly increase Mali’s current installed
capacity, which is slightly more than 400 MW. The Kenié plant will be operated
through a concession agreement competitively awarded to Kenié Energies
Revouvelables, a new entity of which 80 percent is owned by the Eranove
Group and 20 percent by IFC.
IFC InfraVentures is expected to provide
debt and equity financing from its own account in the Kenié Hydropower
project. Eranove will provide $23.2 million in financing to the project.
The Kenié Hydropower project is expected to reach financial close 12 months
after the signing of the concession, and construction will last 4 years.
“The Kenié Hydropower project has been under
development for several years and so we appreciate the engagement of IFC
InfraVentures, and welcome Eranove as main sponsor to ensure the successful
signing of the off-take and concession agreement,” said Mr. Mamadou Igor
Diarra, the Minister of Finance for Mali.
Mamadou Frankaly Keita, Mali’s Minister
of Energy and Water said, “This project will significantly advance our
goal of improving access to energy for commercial, industrial and household
consumers in Mali.
Recent years have seen a marked increase
in investor interest in African infrastructure projects, yet there are
not enough bankable projects for the available funding. IFC InfraVentures
undertook development of the Kenie Hydro at an early stage as part of efforts
to address this significant gap in project development on the continent.
“Hydroelectric power is a cost-competitive
renewable energy that is helping to stabilize electricity sectors financially,
and satisfying demand from local consumers and industrial developers,”
said Marc Albérola, Chief Executive Officer of Groupe Eranove. “We are
proud of the close collaboration between Eranove and IFC that enabled the
Kenié Hydropower Project to attain this significant milestone.”
The World Bank, which strongly supports the
development and implementation of the project is expected to provide a
partial risk guarantee.
“One of the pillars of the World Bank’s
Country Assistance Strategy for Mali is to increase access to energy, a
development fundamental. The Kenié Hydropower Project will make a key contribution
to Mali’s post-conflict recovery efforts,” said Paul Noumba Um, World
Bank Country Director for Mali.
“IFC InfraVentures is committed to supporting
Mali’s power development program through a series of renewable energy
projects, the first of which is the Kenié Hydropower Project,” said Alain
Ebobisse, Global Head of IFC InfraVentures. “We welcome the partnership
with Eranove, who share our commitment to developing renewable energy,
including in fragile and conflict-affected states in Africa.”
IFC, a leader in emerging market renewable
energy finance, is uniquely positioned to help countries transition to
a low carbon future. As part of a wider program to help mitigate climate
change, IFC is investing in and providing advisory services to private
enterprises in the renewable energy sector, throughout emerging markets
and across all parts of the supply chain.
IFC, a member of the World Bank Group, is
the largest global development institution focused exclusively on the private
sector. Working with private enterprises in about 100 countries, we use
our capital, expertise, and influence to help eliminate extreme poverty
and boost shared prosperity. In FY14, we provided more than $22 billion
in financing to improve lives in developing countries and tackle the most
urgent challenges of development. For more information, visit www.ifc.org