03 August 2013, Lagos – The Africa Finance Corporation, AFC, in conjunction with Guaranty Trust Bank Plc have made available a $170 million debt financing facility to Mainstream Energy Solutions Limited consortium, MESL, for the acquisition of the Kainji Power Plc in the first round of power privatisation.
A statement by the Vice President, Communications of AFC, Lucy Savage said the AFC and GTB were coming together to provide the funds which would leverage on infrastructure provision funding arrangement in place.
Kainji Plc is one of six power generation limited liability companies established under the provisions of the EPSR Act for the concessioning of hydroelectric power plants, following the unbundling of the vertically integrated PHCN and consists of Kainji Plc consists of Kainji Hydroelectric power plant (Kainji HEP) and Jebba Hydroelectric power plant (Jebba HEP) with combined installed capacity of 1,338MW. Kainji Plc currently generates approximately 25 per cent of total electricity of the country.
AMNI Petroleum International Limited, AMNI, is the lead sponsor of the MESL consortium and an independent (indigenous) oil and gas exploration and production company in joint ownership, with Afren Plc. RusHydro International AG, a subsidiary of JSC RusHydro is the technical partner.
Speaking on behalf of the President and Chief Executive Officer of the Africa Finance Corporation, Andrew Alli, Director and General Counsel, Dr. Adesegun Akin-Olugbade, remarked “AFC’s long term vision is to help address Africa’s infrastructure deficit and ensure sustainable economic growth for the continent. Growth of the Nigerian economy cannot be fully realised without an efficient and functioning power sector. Power is one of AFC’s high priority sectors for investment, and arguably Africa’s most significant need.
“To this end AFC has partnered the US Government through USAID in the USD7 billion US Presidential “Power Africa Initiative” to accelerate to accelerate investment in Africa’s power sector over the next five years and increase access to clean, geothermal, hydro, wind and solar energy. AFC’s investment in Kanji power will contribute towards reducing Nigeria’s chronic power deficit, foster economic growth and create employment.
“AFC was created to address the infrastructure investment deficit and is privileged to be providing an African private sector investment solution, to drive economic growth and industrial development in Nigeria”.
AFC, a multilateral finance institution, was established in 2007 with a capital base of USD1 billion, to be the catalyst for private sector infrastructure investment across Africa and fills a critical void in providing project structuring expertise and risk capital to address Africa’s infrastructure development needs.
It is seen as the benchmark institution for private sector investment in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC together with Guaranty Trust Bank Plc, are providing an aggregate commitment of USD 68 million to the MESL consortium.
– This Day
