Emerging Africa Infrastructure Fund (EAIF) lends €29 million to support construction of 30MW solar plant to supply national grid; 20th clean energy project for EAIF
The West African country of Burkina Faso is to get a new large-scale renewable energy plant, it was announced today, 15th March. Located some 250km south east of the nation’s capital city of Ouagadougou, near the town of Pâ, the new solar energy plant will supply all the electricity it produces to Burkina Faso’s national power utility, La Société National D’électricité Du Burkina Faso (SONABEL).
The Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG) is lending the project’s developer, Urbasolar SAS, 80% of the capital needed for the construction of the new 30MW facility. EAIF is the sole lender to the project, providing €29 million of the estimated €35.4 million development cost. Financial close (the transfer of funds from lender to borrower) is expected by the second quarter of the year.
Paromita Chatterjee, an Investment Director at EAIF’s managers, Ninety One, says;
“Harnessing Burkina Faso’s sunshine to improve its future prospects will bring many benefits to the country and make an important contribution to fighting global warming. This project is a perfect example of how EAIF’s public private partnership model can have lasting economic, social and environmental impacts while mobilising private capital and enterprise to create new infrastructure.”
EAIF has now supported 20 renewable energy projects across Africa. It has invested US$350 million of loans to private sector developers, bringing Africa 825MW of clean, renewable energy.
Commenting on the project, Arnaud Mine, president of Urbasolar and Emmanuel Kaboré, Urbasolar Regional Head – West Africa, said;
“As a European expert in solar power, the Urbasolar group is conscious of its role in developing this energy source in Africa, notably in Burkina Faso, where we already operate. It is Urbasolar’s conviction that the solar power sector offers solutions to numerous economic, environmental and social issues. Therefore, in addition to providing green energy, this project also includes a number of other measures such as education regarding solar technology, the provision of study grants and a microfinancing program for local women, as well as support for the healthcare system.
“This project is the result of the willingness of the Burkinabé president, Rock Marc Christian KABORE, and the government to increase the country’s energy supply by promoting private investment through public-private partnership. We are pleased to be able to work alongside the government and the national energy utility, SONABEL, to reach the goal of generating 200 MW of energy via solar power plants by 2021, the strategy established by Dr Bachir Ismael OUEDRAOGO, Minister of Energy, Mines and Quarries.
“EAIF’s experience in the renewable energy sector in Africa is a considerable asset for developers like Urbasolar. We are pleased to share our own values of Sustainable Development and to collaborate with EAIF on this project, which demonstrates our shared goal of long-term infrastructure development in rapidly developing regions.”