Project detail - AZITO ENERGIE S.A.

Who is our customer

FMO’s client is Azito Energie S.A (“Azito”) registered in Côte d’Ivoire. The Sponsor is Globeleq, a client of FMO who own and operate several thermal and renewable energypower plants in Sub Saharan Africa. Globeleq also developed and currently operate the Azito I - III gas fired power plants. FMO was part of the financing of the Azito III plant with a USD 35.9 million loan which is currently in operation.

What is our funding objective?

FMO, as part of the lender group which financed the existing Azito III power plant have been approached to finance a further expansion of the power plant. This expansion named Azito IV will bring an additional 253MW of Combined Cycle generation consisting of a new, more efficient 181MW gas turbine and a 72MW steam turbine both manufactured by General Electric. This will bring the total net capacity of the plant to 680MW. FMO’s loan of EUR 30 million is part of a total debt package of EUR 264 million to develop, construct and operate Azito IV. The buyer of the electricity is the Government of Côte d’Ivoire, through CI- Energies, under a 20-year concession agreement.

Why do we fund this investment?

Azito IV will provide the country with stable base load electricity to support economic growth and make it possible for more renewable energy generation to be added to the grid. Azito IV (together with CIPREL 5) will replace older and less efficient power plants in Côte d’Ivoire. FMO’s loan tenor of 15 years is not available in the commercial market and allows the Project to offer an attractive tariff to the Government of Côte d’Ivoire.

What is the Environmental and Social categorization rationale?

This is a Category B+ project on Environmental and Social Sustainability due to the potentially significant environmental and social risks and impacts associated with the project. The Key social, environmental, health and safety impacts associated with the project include: historic land compensations, air and noise emissions (including cumulative impacts with the existing plant); solid waste management; water use and discharge; contractor and community health and safety during construction, risk of major accident during construction and operation, and security management. The applicable IFC Performance Standards are 1,2,3, and 4. IFC PS5-8 have been assessed and found not to be applicable. PS 5 is not applicable as no new land is required for the project. PS6 is not applicable as the project is constructed and operated on an existing industrial location including other power plants (modified habitat), and the ESIA did not identify any relevant flora or fauna triggering IFC PS6. PS7 (Indigenous People) has not been found applicable as the project does not include impacts on specific vulnerable groups or on Indigenous People as explained under PS7. PS 8 is not applicable, as no objects of cultural importance were detected (confirmed by local communities).