Emerging Africa Infrastructure Fund

Description:

EAIF has agreed to provide finance totaling US$35 million to fund the Bugoye power project being developed by Tronder Power. The project is a  “run of the river” hydro electric installation; it will have an installed capacity of 13 MW with an annual mean generation of 82 GWh.

Bugoye is located in the Kasese district which is at the foot of the Rwenzori Mountains in the west of Uganda bordering to DRC. The project will feed its energy into the main grid at the Nkenda Substation via a 6 km long 33 kV transmission line.  This transmission line will be financed by a Grant from the Government of Norway to the Government of Uganda but the project company will take on the task of developing, constructing and operating the line.

The local demand for energy is not sufficient to cover all the generation from the project and the national grid will therefore benefit from the investment.  Since the project is located in the western region of Uganda at the end of the transmission system, the positive effect of balancing the grid will contribute to reducing the technical losses currently experienced by the Ugandan power utility UETCL. 

            ( Picture showing the construction of the Bugoye power plant )

Description:

SAEMS is a US-based renewable power generator with significant interests in Sri Lanka. EAIF has agreed to provide US$14 million of senior debt in relation to their first African project in Uganda. The Mpanga Hydro Power Project is a run of the river hydro project built to generate 18MW. The power will be sold to the Ugandan grid under a long-term Power Purchase Agreement. The limited power supply in Uganda is a severe constraint on economic development. The cost of hydro power is significantly less than that of thermal plants that rely on imported oil. Increased carbon emissions are also avoided. Small hydro projects such as Mpanga are attractive because construction periods are relatively short and they will provide Uganda with more power considerably ahead of the major Bujagali project coming on stream.

Description:

EAIF has agreed to provide senior and mezzanine finance totalling Euro 22.57 million to the Rabai Power Project.  EAIF was lead arranger for additional debt provided by FMO from the Netherlands, Proparco from France and DEG from Germany.  The sponsors of the project are Aldwych International Ltd and Burmeister & Wain Scandinavian Contractor A/S (“BWSC”).

                                       (Picture to show the switching yard)

Construction has started on the 90MW diesel power plant to be located at Rabai, near Mombassa in Kenya. The Project is the largest single investment (Euro 114 m including equity) in Kenya since the establishment of the new administration and will be delivering much needed power to the national grid before the end of 2009.  The plant’s 90MW output is sufficient to provide power to up to 400,000 households and will be sold to Kenya Power & Lighting Company Ltd. (KPLC), through a 20-year Power Purchase Agreement (PPA).  Once operational, the plant should be the most efficient thermal fuel plant in Kenya and one of the cleanest, as it will be operated to meet stringent international environmental and social standards.

                              (Picture to show the oil tanks and power house)

The developmental benefits of the project are:

- The investment of the equivalent of 12 billion KES will give a significant boost to the Kenyan economy, providing many new job opportunities in the construction and service industries, particularly for the local community.

- The addition of much needed new generating capacity will help reduce the recent electricity rationing.

- During the construction period up to 300 people will be employed on site, both in skilled and non-skilled roles.  It is estimated that over 1,000 jobs will be created through direct and indirect employment from the Project.

- Following construction, Aldwych and BWSC will subsequently employ 50 skilled Kenyan technicians to manage and oversee the daily operation and maintenance of the plant.

- A Corporate Social Responsibility policy will be implemented at the Rabai plant, which in turn will directly benefit and endeavour to protect the interests of both the local and the wider community.

- Rabai Power Limited will operate the plant in conformity with stringent environmental and social requirements.

- The Rabai plant will partially replace less efficient existing plants and reduce the need for expensive back-up diesel generators, with associated environmental and cost benefits.

- Private sector financing of Rabai will enable the Government of Kenya to conserve limited public resources for other priorities.

                  (Picture to show the first start for one of the five engines at Rabai)

                                         (Picture to show the oil storage tanks)

                                         (  Picture to show the power house)
 

Description:

In February 2009, EAIF made a USD 1 million equivalent equity investment in and provided a EUR 6 million loan to Aldwych, a developer of independent power plants in Africa.  The financing was part of a new funding round consisting of both debt and equity for Aldwych.  The total new debt package was Eur 27.07 million.  The total new equity subscribed for was GBP 14.6 million.  

                                     (Picture taken at the Kelvin Power Plant)

EAIF co-invested with the Pan African Infrastructure Development Fund (PAIDF) and FMO of the Netherlands as equity co-investors and with Absa, PAIDF and FMO as debt co-financiers.   The financing will assist Aldwych in carrying the development and equity investment costs of its new power projects.  Projects recently co-financed by Aldwych include the Rabai power station in Kenya.

                            (Picture taken to show the Kelvin Power Plant, Johannesburg)

Description:

The Emerging Africa Infrastructure Fund (EAIF) has announced that they will be providing US$15 million financing for the Olkaria III Geothermal Power Plant  in Kenya owned and operated by Orpower 4 Inc.

                                        ( Orpower4 inauguration plate )

The Olkaria III Geothermal Power Plant  is situated in the Olkaria geothermal steam field, which is located in Hell’s Gate National Park in the Rift Valley Province, roughly 100 km northwest of Nairobi.

The Project follows a Build-Own-Operate-structure (“BOO”) and is implemented in two main phases:
- Phase I which has been fully operational since December 2000, consisted of the development of the geothermal field (incl. drilling of wells with a capacity of 58 MW) and the construction and implementation of a 13 MW facility.
- Phase II essentially involves an increase in the generation capacity by 35 MW to 48 MW.     

    ( A view on one of the six Ormat Energy Converter (“OEC”) units comprising the plant )

The project also contributes very positively to the targets of international climate change policies with the generation of renewable energy and can replace 120,000 tons of imported oil, mitigate approximately 200,000 tons of CO2 emissions per year.

                              ( ORMAT’s OEC and power and control shelter )

“This initiative means that the cost of power to the end user will be less than that generated from fuel oil or other alternative energy sources. This in effect will assist in holding down the cost of electricity to consumers as well as for the industry,” Tony Lea, Chairman of the EAIF comments.

The borrower, Orpower 4, Inc. is wholly-owned subsidiary of Ormat Technologies, Inc. (NYSE: ORA). The Project follows a ‘Build-Own-Operate’ structure and has been implemented in two main phases.

                 (A group photo of lenders, counsels and sponsor’s representatives)