Emerging markets power company Globeleq has started construction for the 139 MW expansion of its existing Azito gas-to-power plant near Abidjan, in Côte d’Ivoire.
The final nominal capacity of the plant will be 420 MW, making it one of the largest and most efficient thermal power plants in Côte d’Ivoire.
Construction on the power plant is expected to be complete in early 2015.
The project was financed on a limited recourse basis, with 80% of the expansion funding provided by lenders, including the International Finance Corporation and the European development finance institutions, led by Proparco and Banque Ouest Africaine de Développement. The bulk of the equity funds will be contributed by Globeleq, which is solely owned by Pan-African emerging markets private equity firm Actis.
The remaining funds will be provided by Globeleq’s project partner, Industrial Promo- tion Services (West Africa), which is majority-owned by the Aga Khan Fund for Economic Development.
The Multilateral Investment Guarantee Agency is providing insurance cover for some aspects of Globeleq’s investment.
“We are very excited to start construction on the Azito expansion. The project has solid fundamentals and very strong support from all stakeholders. Once operational, the facility will produce 50% more power using no additional gas and, therefore, no further emissions will be released,” says Globeleq CEO Mikael Karlsson.
“This success clearly demonstrates the ongoing cooperation needed by government, the international financing community and the private sector to successfully develop the energy sector in the region. Azito is a quality asset and it strengthens our position as a leading private power company in Africa. We look forward to providing more reliable and affordable electricity to contribute to Côte d’Ivoire’s economic growth,” he adds.
The expansion project has been registered under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change.
Once operational, the additional electricity will be sold to the State of Côte d’Ivoire through electricity company CI Energies under a 20-year concession.
Construction company Hyundai Engineering & Construction is the engineering, procurement and construction contractor and will design, build and commission the expansion on a turnkey basis.