(2 minutes read)
· Africa Finance Corporation, the leading infrastructure
solutions provider in Africa, committed US$63 million investment in a
60MW wind mill project in the Ghoubet area in Djibouti
· Djibouti’s electricity demand is also expected to
considerably increase due to various large-scale infrastructure
projects including ports, free-trade zones and railways in the
pipeline.
Africa Finance Corporation, the leading infrastructure solutions
provider in Africa, committed US$63 million investment in a 60MW wind
mill project in the Ghoubet area in Djibouti. AFC is the lead
developer and the others are Great Horn Investment Holdings (“GHIH”),
Climate Fund Managers (“CFM”), and FMO, the Dutch entrepreneurial
development bank.
AFC has been involved in the wind mill project since 2017. It has been
taking a lead role in developing the project from concept to
bankability. The corporation has entered into a 25-year PPA (power
purchase agreement) with Électicité de Djibouti for selling the
electricity, while the Government of Djibouti has extended the
Sovereign Guarantee to ensure minimum return on investment. The
project will come on stream in 2021 and is expected to complete
before time since AFC and its partners adopted an innovative
financing method, which will significantly reduce the completion time
of the project.
Djibouti’s electricity demand is also expected to considerably
increase due to various large-scale infrastructure projects including
ports, free-trade zones and railways in the pipeline. The wind mill
project will help in meeting partially the power deficit. The country
has targeted 2030 as the cut off period for achieving energy security.
AFC has been in the vanguard for promoting green projects in
Djibouti. The 44 MW Singrobo hydroelectric power project is another
one developed by AFC by investing €174 million in January 2019.
