Africa Finance Corporation (‘AFC’) has been named 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 in Rwanda (the ‘Project’). The Project is expected to improve access to electricity for three quarters of the country’s population that is currently off the grid.
AFC was the Mandated Lead Arranger for the project debt, and successfully arranged total senior debt facilities of US$245 million, contributing USD 75 million of its funding to the facilities.
Despite its status as one of Africa’s fastest-growing economies, only 25 per cent of Rwanda’s population currently has access to reliable electricity. The USD 350 million power plant will increase Rwanda’s installed capacity by 40 per cent. Scheduled for completion within three years, the Project is located in the Gisagara District, one of the most remote areas of Rwanda.
The Project is sponsored by Hakan Madencilik A.S, a Turkish energy company, and Quantum Power, a power and energy infrastructure investment platform. Apart from AFC, other members of the lending consortium included Finnfund (which served as the lead arranger for total mezzanine debt facilities of USD35 million for the Project), Trade and Development Bank (TDB), African Export-Import Bank, and the Development Bank of Rwanda.
Andrew Alli, CEO of AFC, commented “At AFC we are delighted to receive this award and to be recognised as a global force helping to address Africa’s severe energy problems. This Project will be hugely beneficial to Rwandan communities, not just in terms of the financial savings made from reducing the imported energy supplies, but because of the wider socio-economic benefits. At AFC we are 100 per cent committed to investing in projects that will address Africa’s infrastructure development needs that will provide substantial, measurable benefit in the long term. I would like to thank the organisers of this event for their work on this event, and for recognising AFC as a global leader in this space.”