The Africa Finance Corporation (AFC), was yesterday on Thursday 8th distinguished as the winner of the Africa Power Deal of the Year in the Infrastructure Journal (IJ) Global Awards 2017 for its 80MW peat to power project aimed at improving access to electric power in Rwanda. The project will provide electricity for 75 percent of the country’s population.
AFC, investment grade multilateral finance institution, was the Mandated Lead Arranger for the project debt. It successfully arranged total senior debt facilities of US$245 million, which contributed US$ 75 million of its finances to the facilities.
Although the country is one of the fastest-growing economies, only a quarter of the population has reliable access to electricity. The power project dubbed the ‘Project’ is valued at 350 million US dollars. It has been scheduled for completion after 3 years and is in one of Rwanda’s remote areas, the Gisagara District. Upon completion, it will increase the country’s installed capacity by 40 percent.
The sponsor of the Project is Hakan Madencilik A.S, a Turkish energy company, and Quantum Power, a power and energy infrastructure investment platform. Finnfund, Trade Development Bank (TDB), African Export-Import Bank, and the Development Bank of Rwanda are other members of the lending consortium.
“We are delighted to be named the winner of this award and by being distinguished as a global drive aiding in addressing Africa’s severe energy issues. This Project will be highly beneficial to most communities in Rwanda, not in the financial savings gained from the reduction of the imported energy project only, but also because of the overall socio-economic benefits. AFC is committed to making investments in projects aimed at addressing Africa’s infrastructural development needs for substantial, measurable benefit in the long run,” said Andrew Alli, CEO of AFC.