HQ Peat-fired Power Plant

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The project entails the development and construction of 120 MW Peat-Fired Power Plant located in Gisagara district, Southern Province. Yumn Ltd., project company, will undertake the project on behalf of the sponsors - Hakan Mining owning 51 per cent and Quantum Power with 49 per cent. The power station is launched under a Build Operate, Own and Transfer (BOOT) basis and a 26-year Power Purchase Agreement with Rwanda’s Energy, Water and Sanitation Authority . The payments under the PPA will be split between fixed capacity (85%) and variable energy (15%) components. EWSA’s obligations under the PPA will be fully covered by a sovereign guarantee. After the construction HQ power will operate the plant for 26 years and then transfer it to the Government of Rwanda. It involves construction and operations of both peat harvesting facilities and power generation facilities. The Project has a second phase, which has an additional 40 MW of capacity. Financial closure was achieved on February 1st, 2017. No information has been disclosed regarding sponsors' equity contribution. The Africa Finance Corporation (AFC) arranged a senior debt facility of $225 million and contributed $75 million of its own money as well as a $35 million underwriting commitment. Finland’s development agency Finnfund was lead arranger of the junior debt and provided $10 million of a mezzanine debt tranche. Other DFIs on the deal included the Eastern and Southern African Trade and Development Bank; the African Export-Import Bank; the Development Bank of Rwanda; and the Export-Import Bank of India. The construction is expected to be completed in 36 Months.