Côte d'Ivoire: Proparco and EAIF finance biomass plant
Proparco and the Emerging Africa Infrastructure Fund (EAIF) have closed a €165 million project finance deal and €13 million grant to secure the financing of the Biovea project in Côte d’Ivoire, which will be the first biomass power plant with grid injection in Africa.
Biovea Energie is incorporated in Côte d’Ivoire and is sponsored by EDF (Electricité De France), Meridiam, and Biokala, a joint venture set up between Meridiam and SIFCA, a major agro-industrial player in West Africa. EAIF – a Private Infrastructure Development Group (PIDG) Company – is managed by Ninety One.
EAIF’s contribution to the deal is around €30 million of debt and PIDG Technical Assistance provided an €8 million Viability Gap Funding grant, while Proparco committed €140 million of blended financing made of €135 million at a concessional margin and a €5 million Viability Gap Funding grant.
The power plant will be supplied with about 450,000 tonnes of palm tree waste thanks to a long-term fuel supply agreement signed with PalmCi, a subsidiary of SIFCA. PalmCi will source 30% of the biomass needed for the plant from its own existing industrial palm oil plantations and 70% from outgrowers.
Grégory Clemente, CEO of Proparco noted, “Biovea is an innovative renewable energy project which brings Côte d’Ivoire further on a virtuous climate trajectory as per Paris Agreement commitments and contributes to the development of a sustainable agricultural supply chain and energy production using local fuel. Proparco is extremely proud to have accompanied EDF, Meridiam and SIFCA, three clients with which we have a long history of cooperation, in the development and blended financing of this project from the very beginning. This project will contribute to job creation and revenue increase of households in rural areas as well as important CO2 emissions avoidance.”
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