Scatec Solar closes financing for Mozambique's first large scale solar plant
March 06 2018 - 2:15AM
March 6, 2018: Scatec Solar, KLP
Norfund Investments and Electricidade de Mozambique (EDM) have
closed debt financing and initiated construction of a 40 MW solar
plant in Mozambique. The project debt financing is provided by IFC,
the International Finance Corporation, a member of the World Bank
Group, and the Emerging Africa Infrastructure Fund.
This is the first large scale
solar plant to be built in the country and represents an important
step in realizing Mozambique's ambition to increase renewable power
generation in its energy mix.
The partners signed a Power
Purchase Agreement (PPA) for the solar plant in October 2016. The
PPA secures the sale of power from the plant over a 25-year period
to the state-owned utility Electricidade de Mozambique (EDM).
The 40 MW plant is located close
to the city of Mocuba in the Zambézia Province, and is expected to
deliver 79,000 MWh per year of much needed electricity to the
northern regions of Mozambique. The plant will deliver power to the
national grid and produce enough energy to serve about 175,000
households.
The project costs are estimated at
US$ 76 million, funded through equity of US$ 14 million, a grant of
US$ 7million and project debt of US$ 55 million. Equity partners
are Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and EDM
(25%). Scatec Solar will deliver Engineering, Procurement and
Construction (EPC) services, as well as Operation and Maintenance
(O&M) and Asset Management services to the power plant.
IFC provided project debt of US$
19 million on its own account together with a concessional loan
from the Climate Investment Fund of the same size and a syndicated
loan of US$ 17 million from the Emerging Africa Infrastructure Fund
(EAIF), managed by Investec Asset Management, which is part of the
Private Infrastructure Development Group (PIDG). In addition, EAIF
is directly providing a US$7 million Viability Gap Funding grant
for the project raised from the Technical Assistance Fund of the
PIDG.
"EDM is very pleased that the
Mocuba Solar IPP project has reached financial close through a
well-structured public-private partnership between EDM, Scatec
Solar and Norfund, and with excellent support from IFC and EAIF as
lenders, as well as the Government of Norway", says EDM's Chairman
and CEO, Dr Mateus Magala. "Experiences gained with the Mocuba
project is invaluable in shaping Mozambique's renewable energy
future."
"Closing debt financing for the
Mocuba solar power plant is another great achievement for Scatec
Solar and our partners", says Scatec Solar CEO, Raymond
Carlsen.
"Norfund appreciates being a
partner in this first solar power project in Mozambique. Access to
reliable energy is a prerequisite for development. Clean energy is
therefore a focus investment area for us", says Norfund Executive
Vice President, Mark Davis.
Oumar Seydi, IFC Director for
Sub-Saharan Africa, said: "IFC is committed to bridging Africa's
infrastructure gap while promoting clean energy. This project is in
one of the least developed provinces of Mozambique. It will
diversify the country's power generation mix and help increase
access to electricity. By supporting projects like Mocuba, IFC,
EAIF and PIDG are helping to encourage the participation of other
private investors in Mozambique's power sector."
Nazmeera Moola, Head of EAIF at
Investec Asset Management, said: "Renewable energy and affordable
energy is a key area of growth for the Emerging Africa
Infrastructure Fund and PIDG. By supporting this project, EAIF was
able to make the project bankable by providing long tenors.
Furthermore, by facilitating a VGF grant from the Technical
Assistance Fund of the PIDG, the PIDG group was able to contribute
to reducing the cost of electricity for Mozambique."
Scatec Solar is a leading developer and owner of large scale solar
in emerging markets.
For further information, please contact:
Scatec Solar:
Mr. Raymond Carlsen,
CEO,
tel: +47 454 11
280
raymond.carlsen@scatecsolar.com
Mr. Mikkel Tørud,
CFO,
tel: +47 976
99 144
mikkel.torud@scatecsolar.com
About Scatec Solar
Scatec Solar is an integrated independent solar
power producer, delivering affordable, rapidly deployable and
sustainable source of clean energy worldwide. A long term player,
Scatec Solar develops, builds, owns, operates and maintains solar
power plants, and already has an installation track record of 1,000
MW.
Currently, the company is
producing electricity from 322 MW of solar power plants in the
Czech Republic, South Africa, Rwanda, Honduras and Jordan and
another 434 MW are under construction.
With an established global
presence, the company is growing briskly with a project backlog and
pipeline of more than 1.5 GW under development in the Americas,
Africa, Asia and the Middle East. Scatec Solar is headquartered in
Oslo, Norway
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information contained therein.
Source: Scatec Solar ASA via Globenewswire
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