BOAD and partner banks support to the tune of XOF65 billion the construction of a 65-MW combined-cycle thermal power plant in Lomé (Togo).
Lomé, 20 November 2019. The West African Development Bank, represented by its President Christian Adovelande, in conjunction with several financial institutions, signed the loan agreement for the financing of the 65-MW combined-cycle thermal power plant to be operated by KEKELI POWER SA in Togo.
The project cost amounting to XOF65 billion, fully made available by these African financial institutions, was raised through BOAD and Oragroup as arrangers, from institutional and commercial lenders (BOAD, AFC, Orabank Togo, BIA Togo, NSIA Benin and Banque Atlantique Togo) operating in the sub-region, and thereby contributing to boost the growing regional capital market.
The purpose of the project is the construction of a 65-MW combined-cycle thermal power plant, of which 47 MW for SIEMENS SGT-800 gas turbine and 18 MW for steam turbine connected to a recovery boiler.
For BOAD, this project is in line with the WAEMU strategy for resolving sustainably power crisis in the region under the IRED initiative, which aims to supply power at affordable cost to all the Union citizens, within the context of an integrated and harmonized large power pool in West Africa, producing clean energy and based on a dynamic public-private partnership.
Moreover, this project is part of a greenhouse gas emission reduction rationale due to the choice of a clean technology (combined cycle) which releases 30% of CO2e lower than open cycles (about 100 000 tonnes CO2e/year lower than gas turbines). Furthermore, as part of impact management, it is planned to compensate carbon emissions by planting khaya senegalensis as reforestation measure.
BOAD has supported the implementation of this project under two lines of operation: (i) as lender by providing a direct loan of XOF25 billion to KEKELI EFFICIENT POWER SA and (ii) as co-arranger in conjunction with Oragroup and African Financial Corporation (AFC). This operation is the first of its kind in the region, with over 70% of debt raised in XOF for a maturity of 14 years.
This loan brings the total amount of BOAD’s commitments in Togo to XOF630.3 billion, including XOF189.7 billion to private sector financing.
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