Actis Energy and Amaya Capital, through Azura Power Holding Limited ("Azura Power" or "the Guarantee Holder") plan to acquire three operating power assets specifically: Tobene and Kounoune Plants in Senegal; and Thika Power Plant in Kenya. All three assets are currently owned by Melec Powergen Inc ("MPG"), which was established in 2005 as a power generation platform in sub-Sahara Africa. Separate ESRS' are being prepared for each asset. The "Project" or "Power Plant" considered in this ESRS comprises Tobene Power Plant. The Project is an operating combined cycle heavy fuel oil (HFO) plant with a total capacity of 115MW located in Taiba Ndiaye, approximately 90km north east of Dakar. The Project was constructed in two phases. Phase I comprised the construction of a 96 MW installed capacity diesel combined cycle (DCC) plant in November 2014 and the commercial operations date (COD) was reached in March 2016 for 70 MW guaranteed capacity. The capacity of the Power Plant increased to 92 MW in May 2016 after commissioning of a fifth engine, and to 96 MW after commissioning of the steam engine in August 2016. Phase II of the Project comprised of construction to increase the Power Plant's capacity to 115 MW (105 MW guaranteed) and commenced in November 2015. Phase II was completed in December 2016 and comprises of six diesel reciprocating engines and one steam turbine. MAN Diesel and Turbo provide Maintenance & Advisory Services as well as Spare Parts of the Project, with the operations and support provided by local staff contracted by MPG.
The Project was developed on a build own operate (BOO) basis and sells power to the national electricity company of Senegal (the Societe Nationale d'electricite du Senegal or Senelec) under a 20-year power purchase agreement (PPA) that was signed in 2011. A Senelec substation is located to the southwest of the site. The Power Plant was built to address power shortages and to replace expensive emergency power generation. Apart from coal, HFO is the only source of fuel available in country as base load and there is provision for future conversion of the Project to operate on natural gas, once it is available in the country.
The land acquisition process was managed by Senelec in 2011, as part of the acquisition of a total area of 50 hectres (ha) that was earmarked for the development of power infrastructure. The land acquisition fell under the national domain category thereby allowing expropriation to take place for public utility services. Senelec's acquisition of the 50ha resulted in the economic displacement and compensation of 140 people engaged in agricultural activities (mainly fruits trees, manioc, peanuts, beans and millet). Land for the Project site (4.5 ha) was then purchased from Senelec in 2014.
The Project has been supported by two International Finance Corporation (IFC) loans, the first (for Phase 1) was approved by the Board in 2013, and the second (for Phase 2) was approved by the Board in July 2017. The World Bank also provided a Partial Risk Guarantee (PRG) secured to guarantee the Letter of Credit issued by the off-taker as a security for on-going PPA payments to the Project. Other Development Finance Institutions (DFIs) involved in the Project include the West African Development Bank, Netherlands Development Finance Company and Emerging Africa Infrastructure Fund. Azura Power is an experienced developer, financier, acquirer and operator of independent power producers (IPPs) that focuses on base-load power plants across Africa, and as well as renewable power projects in Nigeria.
No contact information provided at the time of disclosure
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