Benin Solar 50MW

pending

The proposed investment seeks to support the construction and operation of a portfolio of 50 MWac solar photovoltaic (PV) projects located in four different sites in the Republic of Benin (the "Project") and bundled into two lots (A and B). The Project will be developed by a consortium between Axian Energy and Egnon Consulting (hereafter referred to together as “the Sponsors”) through two special purpose vehicles (SPV), ParaBo SAS and NatiDjo SAS (one SPV per lot). With headquarters in Madagascar, Axian Energy is an experienced player in the energy industry and has operations across East, West and Central Africa.IFC obtained PDS-Concept approval and Blended Finance Committee endorsement to provide financing for Lot A and Lot B comprising of a total of: i) A loans for up to c. EUR 11m; ii) Blended Finance (“BF”) loans for up to EUR 9m; iii) interest rate swaps covering the A loan and potentially the loan from Proparco, IFC’s co-lender. It is expected that each institution will provide 50% of the debt, IFC’s 50% share being equally split between the IFC’s A loan and BF tranches. The project will reduce Benin’s dependence on electricity imports and will be the first solar independent power producer (IPP) in Benin.The proposed project sites are greenfield sites located across Benin, positioned in strategic locations to reinforce the electricity network of the Société Béninoise d'Énergie Électrique (SBEE), the national electricity distribution utility: Natitingou (20 ha site; 10 MWac; 550 km north-west of Porto Novo), Djougou (20 ha site; 10 MWac; 450 km north-west of Porto Novo), Parakou (51.5 ha site; 15 MWac; 340 km north of Porto Novo), and Bohicon (50 ha site; 15 MWac; 100 km north-west of Porto Novo). The project sites are located in peri-urban/rural areas, near main roads, with the nearest villages adjacent to the site (for Bohicon and Natitingou sites) or about 1 km away (for Djougou and Parakou sites). The four plots were acquired by the Government of Benin with the support of the Millenium Challenge Account (MCA)-Benin II program and will be made available to the sponsors in charge of the development, construction, and operation of the power plants for a total period of 20 years, comprising 1 year of construction and 19 years of production. Construction is to be carried out by an Engineering, Procurement, Construction (“EPC”) contractor and the Operation and Maintenance (“O&M”) phase is to be carried out by the same contractor for the first year (with a possible extension for an additional year depending on performance), and Axian’s O&M company for the remaining years. A Concession Agreement exists between the sponsors and the State of Benin which outlines, amongst other, E&S responsibilities between the two parties and commitments to local content and community investment. The plants will consist of, at each site, up to 30,000 modules of 620Wp per unit with solar trackers, inverters of 330kVA per unit, transformer substations of 5 MVA the unit, and containerized delivery substations. The plants will also include ancillary structures such as a security guard post, sanitary block, weather stations, and internal and site access roads (of up to 400 m from the nearby main roads); the plant sites will be completely fenced. Associated facilities include an approximately 6.5 km overhead transmission line at Natitingou, a 2.5 km underground transmission line at Parakou, a 200 m underground transmission line at Bohicon, a 1.8 km underground transmission line at Djougou, and a sub-station at the Bohicon site. These facilities were constructed by the SBEE with the support of the MCA in 2023 and 2024.Early works are expected to start in August 2025, while construction is expected to commence in late 2025 for a duration of approximately 12 months.