The Emerging Africa Infrastructure Fund (EAIF), a part of the Private Infrastructure Development Group (PIDG), and Akuo Energy, a French green IPP, have signed a financing of the Akuo Kita Solar power plant, to be built at Kita in southern Mali. 

It will be the first photovoltaic power station in Mali owned and run by a private sector independent power producer. 

EAIF, the mandated lead arranger, has arranged the senior debt facility for a total of €54m over 15 years. 

EAIF’s share of the debt package is €17m. 

The transaction was co-arranged with the Banque Ouest Africaine de Développement (BOAD). 

The other senior debt providers are FMO, the Dutch development finance institution and Banque Nationale de Développement Agricole (BNDA). 

Two other PIDG companies, GuarantCo and Green Africa Power (GAP) contributed to the project financing.

GAP is providing a mezzanine facility of €8m over 20 years and GuarantCo a debt service reserve account guarantee. 

Lasitha Perera, GuarantCo CEI, said: “Akuo Kita Solar is the second power project in Mali to benefit from a DSRA guarantee from GuarantCo this year and demonstrates the critical role that credit enhancement can play in improving the viability of essential infrastructure. GuarantCo is delighted to have partnered with its fellow PIDG companies, EAIF and GAP, to deliver this ground-breaking project that highlights the depth and breadth of the PIDG.”

Peter Hutchinson, GAP Executive Director, added: “The successful closing of the Akuo Kita financing demonstrates the need for a blend of different financial instruments. This could serve as a good template for future solar schemes.”

The €78m, 50MW project includes transmission infrastructure connecting into the local electricity grid. 

It will be the largest solar farm yet built in West Africa. 

Akuo Kita Solar will sell its power to Electricité du Mali SA, the national utility, under a 28-year power-purchase-agreement.
 
Up to 400 people, including 20 managers, will be employed during the 12-month construction period. 

When operational, the Kita plant will have 30 permanent staff, all of whom are expected to be from Mali.
 
EAIF Executive Director, Emilio Cattaneo, said Mali has realised that its abundance of sunshine makes solar power a critical asset in accelerating the country’s rate of electrification.
 
“Mali’s population is expected to double from c18 million to around 36 million people by 2035. It is estimated that fewer than 5 million people have access to electricity. As the population grows and becomes more urban, lifting the rate of electrification will be essential to social cohesion, stimulating economic activity, alleviating poverty and helping secure political stability. Solar generation facilities have the ability to be built quickly and in numerous locations. Akuo Kita Solar has seen the potential and I hope many other developers follow its lead,” he said.
 
EAIF is managed by Investec Asset Management (IAM), one of the largest third-party investors in private equity, credit, public equity and sovereign debt across the African continent.
 
Nazmeera Moola, Head of EAIF at Investec Asset Management, said: “As Mandated Lead Arranger, we were able to move quickly to carry out all the due diligence, attract other debt providers and conclude negotiations. Our ever-deepening experience of energy projects means we can save huge amounts of time for our clients and financial partners. We are making beneficial and efficient use of the funds provided by our donors and lenders.”
 
Akuo Kita is EAIF’s second project in Mali. 

In June 2017, it announced its backing for Albatros Energie Mali, which is building a 90MW HFO-fueled power station in the country.