Africa Finance Corporation (AFC) and the Dutch development bank, FMO will provide an equity investment of up to $3m for the development of the 44MW Singrobo hydroelectric power plant in Côte d’Ivoire.

AFC has signed a joint development agreement with Ivoire Hydro Energy SA (IHE), an Ivorian project company, for the development of Singrobo.

Under the agreement the AFC has to invest a further $3m to take the project to financial close.

AFC and FMO will also have the option to acquire further equity in IHE.

AFC has been appointed as a co-project developer and financier and will work with other developers to complete detailed technical studies, finalize the Power Purchase Agreement (PPA), participate in procuring the engineering, procurement and construction contractor, lead the processes for preparing project costs, and oversee the final environmental and social impact assessment studies.

Andrew Alli, AFC’s President & CEO, said AFC’s long term vision is to help address Africa’s infrastructure deficit and ensure sustainable economic growth for the continent.

“We are delighted to be appointed as the lead developer in this transformational regional infrastructure power project, which will not only provide the opportunity to apply AFC’s differentiated model of providing long-term infrastructure financing, value added infrastructure asset project development expertise and importantly deliver bankable projects, but also accelerate regional integration by bridging the power deficit in West Africa, and making an economic difference in the development of the sub-region,” he said.

The project will have a 35-year take or pay PPA with Ci-Energies, Côte d’Ivoire’s public utility company under the management of the Ministry of Energy and Petroleum Products.

The generated power will be transmitted from a 11/225 KV switchyard to the 225KV Taabo-Abidjan transmission line, through a proposed 225 kV circa 4 km transmission line from Singrobo.

AFC, an international investment grade multilateral finance institution, was established in 2007 with a capital base of $1bn, to be the catalyst for private sector infrastructure investment across Africa.

AFC invests in high quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications.

AFC’s investments in Côte d’Ivoire include: €270m financing of the transport infrastructure project - the Henri Konan Bedie Bridge, and the €50m loan facility with the Port Autonome d’Abidjan for expansion works to the Abidjan Port complex.