WASHINGTON, January 17, 2013 - The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, announced today it is providing an investment guarantee backing the ongoing operations and expansion of a power plant that will boost Côte d’Ivoire’s economic recovery.
The project involves the conversion of the existing Azito Thermal Power Plant from simple-cycle to combined-cycle, bringing the plant’s total capacity to approximately 430 megawatts. The expanded plant will produce more electricity without additional use of gas, resulting in 225,000 tons of CO2 emissions avoidance per year. Upon completion, the Azito facility will become the largest independent power generator in sub-Saharan Africa. The project was recently named “African Power Deal of the Year” by Project Finance International.
MIGA’s investment guarantee is covering Globeleq Holdings (Azito) Limited’s investment for a period of up to 20 years against breach of contract by the government of Côte d’Ivoire. The project was financed on a limited recourse basis. The International Finance Corporation was the lead arranger with Proparco coordinating the pool of financing from European development finance institutions. The West African Development Bank (BOAD) is providing financing in local currency.
“MIGA’s guarantee was a key factor in proceeding with the expansion of Azito,” said Globeleq’s CEO, Mikael Karlsson. “MIGA’s support and participation of the development finance institutions allowed us to increase our investment. The additional generation will provide much needed energy and make a positive impact on peoples’ lives in Côte d’Ivoire.”
“This project, which will deliver much needed additional power at a relatively low cost, is essential to Côte d’Ivoire’s recovery,” says Michel Wormser, MIGA’s Vice President and Chief Operating Officer. “Our support demonstrates MIGA’s commitment to mobilizing investment in countries recovering from conflict and is a strong demonstration of the role that the private sector can play in delivering infrastructure.”