July 25, 2023
The Private Infrastructure Development Group’s Emerging Africa Infrastructure Fund (EAIF) has provided a €35 million senior loan to kickstart the development of a groundbreaking 46 MW biomass power plant in Ayebo, Côte D’Ivoire.
Lead arranger Proparco, a subsidiary of the French Development Agency, had earlier committed €90 million to the project. Additionally, PIDG will offer an €8 million Viability Gap Funding grant through its Technical Assistance program, marking one of the largest grants it has deployed.
Olivia Carballo, Managing Director of Alternate Credit at Ninety One, the fund manager of the Emerging Africa Infrastructure Fund, emphasized the significance of the project not only for Côte d’Ivoire but also for the entire continent, as it contributes to a greener economy and sustainable livelihoods.
The financing from EAIF, PIDG, and Proparco has paved the way for BIOVEA Energie, the project owner, to commence construction in Ayebo, located approximately 100 km east of Abidjan, the capital of Côte D’Ivoire.
BIOVEA Energie, a joint venture between EDF International (40%), Meridiam (36%), and local agribusiness SIFCA (24%), has been awarded a 25-year Power Purchase Agreement (PPA) to supply electricity from the Ayebo biomass plant to the Ivorian grid.
Once operational, the €237 million project will become the largest facility of its kind in West Africa, with the capacity to reduce CO2 emissions by 4.5 million tonnes over its 25-year lifespan. The plant is scheduled for commissioning by the end of 2025.
Notably, the Ayebo power plant aligns with the Ivorian government’s goal to expand electricity access by 2025, particularly in rural areas with a low electrification rate of 38%.
Beyond emission reduction and improved energy security, the project will also benefit local farmers by providing a new revenue source. The plant will utilize up to 70% of its fuel from palm tree leaves and branches, promoting the utilization of 520,000 tonnes of agricultural residue and potentially increasing local farmers’ earnings by 15%.
Franck Koblavi, CFO of Biovea Energie, expressed his delight in finalizing the deal, as it marks significant progress toward achieving the country’s sustainable energy mix and ambitious development goals. Working with top-tier partners ensures a holistic approach to impact creation, guaranteeing quality service delivery throughout the investment and energy production phases.
photo source: google
Delino Gayweh
Serrari Financial Analyst
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