Addax Biomass Plant

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Addax Bioenergy, a subsidiary of the Addax and Oryx Group (AOG), was planning the development of a 15MW biomass plant in Makeni. The project was to be run on sugarcane (bargasse). AOG was to hold 78.34% of the equity, Swedfund took up 8.66% and FMO 13%. Development started in 2008 and commissioning was expected in 2013. The output was to be delivered to the national grid, expected to supply around 20% of national demand. The plant was expected to generate 100,500 MWh annually, most of which was to be supplied to the National Power Authority and part of which was to serve the ethanol proejct's parasitic load. The project reached financial closure in November 2011. Debt was provided by: SwedFund ($10 million, Sweden); Netherlands Development Finance Company (FMO, EUR24 million, $29.8 million); AfdB (EUR24 million, $29.8 million), German Investment Corporation (DEG, EUR20 million, $24.8 million); Emerging Africa Infrastructure Fund (EUR19 million, $23.6 million EAIF); Cordiant Capital Infrastructure Fund (EUR19 million, $23.6 million); South African Industrial Development Corporation (IDC, $29 million); Belgian Development Bank (BIO, EUR10 million, $12.4 million). Total project cost was estimated at EUR267 millino ($331 million), of which EUR107 million ($130.4 million) was provided in equity, but this included a bioethanol refinery producing 85,000m3 of ethanol annually. The loan was of a 12 year tenor. The financial advisory was BNP Paribas. The legal advisor to the lenders was Norton Rose. The legal advisor to the sponsor was Eversheds and SNR Denton (International) as well as Basma and Macaulay (local). The insurance advisor was INDECS Consulting. The environmental consultant was NKUK. The construction contractor was De Smet. The tax auditor was PKF. The technical advisor was SGS. The agricultural advisor was Schaffer & Associates. The $30 million investment for the 15MW plant is an estimate. The private versus donor funding information provided below is a derivative of that estimation based on overall participation percentages. This implies 30/331=9% for the biomass generation plant. This is reflected in the PPP fields listed below - all values represent 9% of the total value, described above. www.addax-oryx.com www.addaxbioenergy.com http://www.swedfund.se/en/?artikel=swedfund-signs-eur-10m-investment-in-addax-bioenergy-sierra-leone http://www.swedfund.se/wp-content/uploads/2012/04/Addax-Bioenergy-Fact-Sheet-April-2012.pdf http://www.swedfund.se/en/wp-content/uploads/2012/02/Project-Finance-Magazine-Addax-Bioenergy.pdf