Africa Finance Corporation (“AFC” or the “Corporation”), the leading infrastructure solutions provider in Africa, announces a US$63 million strategic investment to construct and operate a 60MW wind project in the Ghoubet area, near Lake Assal in Djibouti. AFC has made this investment as lead developer together with Great Horn Investment Holdings (“GHIH”) and inviting further investment from Climate Fund Managers (“CFM”), and FMO, the Dutch entrepreneurial development bank.
AFC has led the development of the project since 2017, developing it from concept to bankability, securing a 25-year take or pay power purchase agreement with Électicité de Djibouti as the off-taker, an implementation agreement and with the Government of Djibouti backed by a Government Guarantee. The Project also has MIGA guarantee cover. The wind project is expected to begin commercial operations in 2021.
AFC and its partners adopted an innovative financing approach, an all sponsor equity financing for this transaction, which enabled the start of construction within 2 years, a significant reduction from the typical 3-5 years development cycle. As part of this investment, Oliver Andrews, Chief Investment Officer, as well as Amadou Wadda Head of Project Development at AFC, will join as nominee non-executive directors to the Board of the project and the holding company, Red Sea Power SAS, and Djibouti Wind LP. Read more…
