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IFC to invest in 175MW gas-fired plant in Mozambique

Published 23 January 2018

IFC, a member of the World Bank Group, has announced an investment in a 175MW gas-fired power plant in Mozambique named as Central Térmica de Ressano Garcia (CTRG).

IFC provided $55 million on its own account together with a syndicated loan of $42 million from the Emerging Africa Infrastructure Fund and FMO. Proparco and ABSA Bank Ltd (as arranger) provided parallel loans. The club of lenders disbursed debt facilities amounting to a total of $189 million.

CTRG, which is located about 100 kilometers from Mozambique’s capital Maputo, and close to the South African border, is the country’s first gas-fired power plant to reach commercial operation. It is one of its first independent power producers. Completed in early 2015, the plant provides highly reliable and competitively priced power to Mozambique’s national utility Electricidade de Mocambique (EDM) under a 20-year power purchase agreement.

CTRG is owned by EDM and Sasol of South Africa, which provided bridge financing for the plant’s construction up to the project financing stage.

CTRG shareholders general meeting chairman Adérito Sousa said: “The conclusion of the project financing for CTRG marks an important milestone not only for EDM and Sasol, but for the entire electricity sector of Mozambique, who targets to attract more private sector capital to fund its substantial needs going forward. IFC played a central role in getting this complex transaction across the line.”

IFC Sub-Saharan Africa director Cheikh Oumar Seydi said: “IFC is committed to bridging the infrastructure gap in Africa. CTRG uses Mozambique’s natural gas resources to generate power for the country’s economic growth and to increase access to electricity. By supporting projects like CTRG, IFC, Proparco and ABSA Bank seek to encourage other private investors to engage in Mozambique’s power sector”

Source: Company Press Release