[Ivory Coast] AFC closes funding for hydroelectric bridge
Africa Finance Corporation (AFC) announced it has closed a bridge loan deal for the construction of the Singrobo-Ahouaty hydroelectric dam (SAHP) between Abidjan and the capital, Yamoussoukro.
At almost $200 million, the project funding is composed of $27,64 million in equity and a bridge loan of $169,44.
The loan contractor is local company Ivoire Hydro Energy (IHE), whose shareholding structure includes project developer Themis and local entrepreneur Ekolan Alain Etty’s IHE Holding; and AFC.
The SAHP will increase power generation by another 44MW and will be developed in record time, as operators are hoping to produce first electricity in less than five years. The bridge loan model allows engineering, procurement and construction contractor Eiffage to start works immediately, while long-term lenders finalize credit approvals. Such a model is said to expand across Africa as it helps to kick start project development, especially infrastructure.
“Since 2015 when AFC began working with SAHP as a financier and co-developer, we have achieved many developmental 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,” said Samaila Zubairu, CEO of AFC.
With a production capacity of 2,200MW, Cote d’Ivoire is one of the leaders of power generation in the West-Africa region. It is also set to be a forerunner in the renewable sector with approximatively 30 percent of total production to come from renewable energy, mostly hydroelectric.