AFC- FMO PROJECT DEVELOPMENT
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO is contributing funding to Ivoire Hydro Energy SA, which has been awarded a concession for a Run-of-River 44MW hydro project, through our partner Africa Finance Corporation (AFC). AFC's mission is to improve African economies by developing and financing early stage projects. FMO signed a Joint Venture Agreement with AFC in 2013 for a Development Facility, with both parties committing US$ 7.5 million to help move projects forward through the high risk challenging development phase to financial close. Together with AFC, which for this project has committed US$ 4.5 million, FMO is investing US$ 1.5 million in Ivoire Hydro under the framework agreement.
What is our funding objective?
The project is the development of a renewable ROR hydro project in Côte d’Ivoire, to meet pressing energy demand in the country. The project was started by three experienced Ivorian entrepreneurs.The development costs include technical consultancy (incl. ESIA), legal consultancy, financial and tax advisory, due diligence of the lenders, and contingency. At financial close Project investment cost is estimated US$ 120 million.
Why do we fund this investment?
FMO is building on its strategic partnership with AFC. The Project will have a 35-year take or pay Power Purchase Agreement. FMO feels it is a good project as it creates renewable development finance in a low-income country and also has a development group with ample power experience, government support, low cost solutions with cost savings compared to alternative gas fired solutions. It also has limited Greenhouse Gas emissions. FMO expects to have a lead role in the implementation phase arranging the finance package.
More investments
| Date | Total FMO financing |
|---|---|
| 12/21/2020 | USD 0.10 MLN |
| 4/28/2020 | USD 0.75 MLN |
| 11/21/2012 | USD 7.50 MLN |
- Website customer/investment
- http://www.africafc.org
- Region
- Africa
- Country
- Côte d'Ivoire
- Sector
- Energy
- Effective date
- 6/30/2015
- End date
- 1/13/2021
- Total FMO financing
- USD 1.50 MLN
- Funding
- AEF-I
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B