Azito Power Project Phase I-III

Active

The Azito project is the second IPP in Côte d'Ivoire, awarded to a consortium that included ABB and EDF. The first two phases of the three phase natural gas-fired power plant of up to 450 MW have been completed. These phases were open cycle natural gas turbines. In January 1999, the Cinergy Consortium reached financial closure on a 23-year BOT contract for the construction and operation of two 144 MW power plant units. Cinergy Consortium won the concession contract to build the two gas fired units in June 1997. The first phase was implemented in early 1999. The second gas-powered unit was due to come on line in early 2000. Construction of the third turbine was delayed in Dec. 2003 until domestic and regional electricity demand increased. The project is located at Azito on the Ebrie Lagoon, in the Yopougon district about 10km southwest of downtown Abidjan. The full project cost will be US$223 million. Project sponsors are Electricite de France, ABB Group, and Industrial Promotion Services (IPS; an affiliate of the Agha Khan Group). IPS holds 26% of the holding company shares. EDF and ABB hold 74% through their joint-venture Cinergy Holding Company. ABB Energy Ventures holds 51% of Cinergy and EDF International holds 49%. Equity capital covers 20% of the project costs. The remainder of the financing comes from loans from the Commonwealth Development Corporation, the IFC and Societe General. In 2010, Globeleq acquired the shares of ABB and EDF for an undisclosed amount. Construction works began in July 1998, and the first phase (one turbine) was completed in January 1999. The second phase (similar to phase I) was commissioned in February 2000. The third phase (upgrading the plant from single cycle to combined cycle power generation) was initially planned for commissioning in 2002, but political instability in the country impeded the development plan of the Project. Phase III, the expansion of the plant from 280-290MW to 420MW was to add 10% of generation capacity to the overall national grid. The plant already supplied one-third of electricity for the country. The energy efficiency of the plant was to increase from about 29,5% to 44%. The African Development Bank approved a $50 million loan for the expansion of the power plant (Phase III). In December 2012, MIGA issued guarantees totaling $116.1 million covering an investment by Globeleq Holdings (Azito) Limited of Bermuda in the Azito Thermal Power Plant in Côte d’Ivoire. The coverage is for a period of up to 20 years against the risk of breach of contract. In January 2013, MIGA announced it was to extent an investment guarantee for a period up to 20 years against breach of contract by the government of Côte d'Ivoire. IFC was the lead arranger of the deal, while Proparco coordinated the pool of financing from European development finance institutions. The West-African Development Bank (BOAD) provided financing in local currency. Decommissioning is not to take place before 2034. The Azito Power Station was to be transferred to the Ivory Coast state 20 years after the construction of Phase III. (The old concession had been 24 years, expiring in 2022). Phase III is not operational yet as of 2013 updates.