Personal tools

15th June 2017

Bringing reliable electricity to fragile Mali

First Independent Power Producer will improve base load power by 30%

Three PIDG companies are helping to finance the development of a thermal power station in Mali which will improve the country’s base load electricity by 30 per cent.

The 90MW Albatros Energie project will provide a much-needed source of reliable on-grid power for major cities and the country’s developing industrial sector, reducing reliance on imports and rented mobile generators.

The project will also provide an alternative to hydro power, which generates most of Mali’s domestically produced power and can be unreliable during periods of drought or low rainfall.

Mali is ranked among the 25 poorest countries in the world. In 2015, The African Development Bank reported that Mali’s electrification rates remain very low, at around 55% in urban areas and 15% in rural towns and villages.

“EAIF’s experience across Africa shows that creating a reliable electricity generating sector is the single most important element in helping fragile states fight poverty, build economic confidence and unlock the potential for commercial and social development,” said EAIF Executive Director Emilio Cattaneo.

During construction, the Albatros facility will create jobs for 191 people, 183 of whom will be local. Once operational, the plant will employ 53 staff, 50 being locally engaged.

“GuarantCo is delighted to support the first IPP in Mali, a country which we see as having a bright future ahead,” said GuarantCo CEO Lasitha Perera. “We are keen to support Mali’s development through the provision of future guarantees for infrastructure projects,” he added.

Supporting private sector partner Albatros Energie Mali, PIDG company EAIF has provided a €5.8m conventional loan and an additional €3.9m Islamic-complaint financing facility on a long-tenor. PIDG company GuarantCo is providing a guarantee of €3.8m to the project. TAF will also provide funding for project development costs.