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Côte d’Ivoire, Azito Gas-fired Power

Modernising the Azito Gas-fired Power Plant will deliver 138MW of additional power to the people of Côte d’Ivoire without using additional natural gas.

BACKGROUND

The West African country of Côte d’Ivoire is emerging from a troubled recent history, including civil war. There is now rising demand for electricity, but the country’s struggling energy sector has been unable to keep pace. The discovery of natural gas reserves, and the application of new technology, promise the right solution at the right time.

The Azito Power Plant, located near the major port city of Abidjan, has been in operation since 1999. It is ideally sited close to both natural gas resources and a lagoon with the potential for the cooling of the power plant in the future. Converting the existing 288MW simple cycle plant to a 426 MW combined cycle power plant will increase its capacity by 138 MW. This is achieved by adding a condensing steam turbine, which is powered by the exhaust heat of the existing turbines. This increases power output by almost 50%, but uses no extra natural gas.

The conversion of Azito will boost electricity supply in the country by 15%, creating one of the most efficient power plants in West Africa, and will provide a third of the electricity capacity in Côte d’Ivoire by 2015.

THE DEAL

  • Azito Energie Holding company, a Côte d’Ivoire concern, owns 23.1% of the Azito Power Plant.
  • Globeleq owns the remaining 76.9%.
  • The project will mobilise a total investment of US$430 million. This will comprise:
    • US$344 million of debt financed through a combination of US$295 million from a consortium of DFIs and US$49 million from Banque Ouest Africaine de Development
    • US$86 million in equity from Azito Energie Holding company

EAIF SUPPORT

Most local and international commercial banks would not, or could not, participate in financing the expansion of Azito. The fragile, post-conflict economy of Côte d’Ivoire was a significant factor. Furthermore, some commercial lenders that had initially indicated that they were prepared to finance the project were no longer able to do so due to the long loan tenors required, further reinforcing the challenge of raising long-term financing in the region. In response, EAIF agreed to increase their long-term loan to US$30 million to help ensure that this important project was able to reach financial close.

EXPECTED DEVELOPMENT IMPACT

Private Sector investment

Total commitments

 

US$430m

Fiscal benefits

Estimated contribution to government revenues through corporate taxes over the next 5 years – US$7.55 million per year

By becoming autonomous in electricity generation, Cote d’Ivoire will also be in a position to supply power regionally where demand exceeds availability of supply

The Project will generate additional electricity using the same quantity of gas thus leading to significantly increased fuel efficiency and cost savings.

Job Creation

Construction

Operational

 

600 people

14 people

Additional Benefits

Tonnes of CO2 saved per year – 400,000.

Increased availability and reliability of electric power supply to 5.26 million people.

National power supply output increase of 15%.

The development of a combined cycle power plant at Azito will serve as a model for the development and financing of similar power projects in other parts of Côte d’Ivoire, and developing countries elsewhere.