[Ivory Coast] IFC coordinates € 264 million financing for expansion of Azito power plant
IFC, a member of the World Bank Group, Globeleq Africa Holdings Limited (Globeleq), a leader in the development of energy projects in Africa, and Industrial Promotion Services West Africa (IPS) WA), a member of the Aga Khan Fund for Economic Development (AKFED), have committed the necessary funds for the development of the Azito thermal power station (called "Azito Phase 4") in Côte d'Ivoire.
The expansion of the plant will help increase the supply of reliable and affordable electricity in Côte d'Ivoire, where by 2017, only 66% of the population had access to electricity.
The fourth phase of the Azito expansion will consist of the construction on the existing site of a new combined cycle unit (an additional 253 MW), which will enable Azito to produce a total of an additional 2,000 GWh per year, or more 30% of the country's electricity.
The electricity generated by the fourth phase of Azito will replace less efficient thermal units, which will significantly reduce the production costs of the sector and greenhouse gas emissions.
The project will also help meet the growing demand for electricity in the country and across the sub-region. The modernization of the plant should provide electricity to several hundred thousand households and businesses.
"Azito Phase 4" will help Côte d'Ivoire achieve its 42% renewable energy target by 2030 by improving network stability and facilitating the integration of intermittent renewables, complementing the base the country's hydroelectric power station (900 MW, or about 40% of total installed capacity). IFC will continue to work with the Ivorian government to develop additional renewable energy capacity.
As the lead arranger and global coordinator, IFC syndicated funding of € 264 million, also provided by the following institutions: African Development Bank (ADB), West African Development Bank (WADB), Fund OPEC for International Development (OFID), a group of European development finance institutions (EDFIs), including Proparco, and its counterparts in Belgium (BIO), German (DEG), Dutch (FMO) and the EAIF- Investec.
For its own account, IFC will take a EUR 46 million interest in the project in the form of a loan, in addition to providing a swap on the interest rate applicable to all debt denominated in euros.
This new round of financing consolidates the success of the Azito thermal power plant, which produces low-cost electricity and provides additional firm capacity, while effectively utilizing Ivory Coast's natural gas resources since 2000.
"We are pleased to see the fourth phase of the Azito project materialize, marking a milestone in IFC and its partners' participation in the Ivorian energy sector. With additional capacity, the project will better meet increasing energy demand while reducing industry costs and greenhouse gas emissions. Similarly, the project will integrate more renewable energies into Côte d'Ivoire's energy mix and thus strengthen the country's position as an energy hub in West Africa. We congratulate the Ivorian government, Azito Energie and its shareholders, Globeleq and IPS (WA) for contributing to this achievement, "said Linda Rudo Munyengeterwa,
For over twenty years, IFC, in collaboration with the World Bank, has been supporting the Ivorian government to sustainably improve the financial balance of the energy sector. This new financing follows IFC's investments in this sector in 1994, 1998, 2012 and 2013.
"We have long been providing reliable and environmentally friendly energy 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, "said Paul Hanrahan, CEO of Globeleq.