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Azito Proparco
By allocating a EUR 30m to Azito Energie S.A, Proparco will be providing an effective response to growing electricity needs in Côte d’Ivoire via the expansion of the Azito power plant. The project underscores AFD Group’s support to Côte d’Ivoire’s electricity sector.
Client presentation

Azito Energie SA, an independent power producer in Côte d’Ivoire, is the owner of the Azito thermal power plant, which has been generating reliable electricity at an affordable cost and with high availability since it was commissioned in 1999. Azito Energie SA is also the subsidiary of Globeleq, a major player in power generation in Africa, and of IPS (West Africa), a company owned by the Aga Khan Fund for Economic Development (AKFED).

Project description

Beyond this project, AFD Group strongly supports Côte d'Ivoire’s energy and low-carbon transition. The support of development finance institutions is illustrated by a strong political dialogue that aims to continue to develop solutions and investments in the field of renewable energies, which will benefit from their financial support. The commitments made by the Ivorian Ministry of Petroleum, Energy and Renewable Energies and AFD in November 2018 were recalled when the financing for the Azito power plant was realized. They include strengthening their cooperation to support Côte d’Ivoire’s energy objective set out in its Nationally Determined Contribution, which targets an electricity mix with 42% of renewable energy, and speeding up the implementation of the first solar and biomass projects by 2020. Proparco is participating in financing the expansion of the Azito combined cycle gas turbine power plant, alongside eight other international development institutions. The project will add 253 MW to the existing power plant, which will increase its total capacity to some 7140 MW.

Project impact

This project meets electricity needs resulting from the strong economic growth experienced by the country. This expansion should reduce problems of quality and supply reliability. The additional energy will meet growing demand, in particular from rural areas, thanks to grid extension projects under development, and 6 million people are expected to benefit from improved access to electricity. The project benefits from a competitive tariff and should allow Azito Energie SA to supply 30% of domestic electrical power at the commissioning date of the new combined cycle, which is set for late 2021. The expansion will benefit from a more energy-efficient technology, about 50% more efficient compared to an open cycle power plant with the same capacity, which will make it the most efficient in the country and will reduce the use of inefficient power plants. Its construction is also expected to lead to the creation or safeguarding of over 125,000 jobs (direct and indirect) and EUR 11m of annual tax revenues during the project life cycle.

19/07/2019
Date of signature of the project
Côte d'Ivoire
Location
Financing tool
30 000 000 Euros
Amount of funding
EUR 30m loan
Financing details
AZITO ENERGIE SA
Client
CES