Singrobo-Ahouaty · 2019. 9. 2. · existing dams on the Bandama river Immediate access to the...
Transcript of Singrobo-Ahouaty · 2019. 9. 2. · existing dams on the Bandama river Immediate access to the...
Singrobo-Ahouaty 44MW Hydro Power Plant, Côte d’Ivoire 23-25 Novembre 2015, Lagos, Nigeria
Introduction From Vision to Reality
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A project developed by a local entrepreneur since 2011
• Project initial concept is based on solid sector experience and deep understanding of local challenges and opportunities
• Ekolan Alain Etty, fonder and Chief Executive Officer of Ivoire Hydro Energy
• Former Deputy General Manager of the Ivorian power utility between 1999 and 2005
A concession agreement signed in December 2013 with Government of Côte d’Ivoire
• Terms and conditions of the concession agreement in accordance with international bankability standards
• Negotiated step-down tariff structure balances the need to cover operating costs, debt services and shareholder returns will ensuring long-term competitiveness of the asset
• Average tariff of 6,8 USD cents per kWh over the lifetime of the concession (in real terms)
A joint development agreement signed Africa Finance Corporation in March 2015
• A reassuring participation at an early stage of a reputable African finance institution
• A fully financed project development phase
• A project that has validated its conceptual design and business plan
Project Description An exceptional Site
Reliable hydraulic date collected over 35 years of operations of upstream
existing dams on the Bandama river
Immediate access to the Abidjan-Yamoussoukro
highway (less than 4km)
Immediate access to the electric grid (2.5km)
No relocation of population
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Located 23 km downstream of the existing Taabo dam on the Bandama river near the communities of Singrobo and Ahouaty
Project Description Proven Concept Design
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Feasibility study completed in 2013 has determined key technical and commercial
project parameters
Detailed study that has consolidated drilling, hydrology analysis, geophysical
review is now completed
Bidding process for the selection of the construction firm has been initiated and is expected to be completed by Q1-2016
Construction of a soil/rock dam of 24m high and 1350m long, corresponding to a 220 million m3 water reservoir
2 penstocks of 5.70m diameter
Tail race channel of 2km long
Spillway of 78m long
Maximum discharge flow through 2 penstock of 2x101 m3/s
2 generation units of 22MW each with 750/1000 RPM
Vertical Kaplan Turbines
27 MVA 3 Phase, 11 or 13 / 90 KV GSU Transformer
90 KV Transmission Voltage
Annual load factor of 55%
Project Description Reputable Partners
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Local economic player
Co-developers
Project development manager / transaction advisor
Legal counsel (international and local)
Technique advisor
Topographic, environmental and social advisor
Geotechnical and geophysical advisor
SCPA DOGUE-ABBE
YAO & Associés
Financing A medium Sized Project
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Senior Debt
Equity
EPC including contingencies
Other Constrcution
Costs
Development Costs
Interest during
Construction
Banking Fees
Uses of Funds Sources of Funds
Total Project costs estimated at USD 128 million
Limited recourse and cash-flow based project financing
Financing Investment Opportunity
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Equity IRR
>20%
18%
11%
Today Sept 2016 Financial Close
Development capital fully secured
USD 10m of construction equity to be sources out of
USD 24.6m
Development Risk
Construction and early
operations risk
USD 96m of debt to be sourced
Sept 2019 Start of Commercial
Operations
With equity in the process of being fully secured, opportunity to invest in a USD 96 million senior debt facility
Equity Debt
Financing Bankability at the Core of the Project Development
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Cash-flows et ratio de service de la dette
Cash Flow Before Debt Service Senior Debt Service ADSCR
Senior debt maturity 15 years All in interest rate 8% per annum
Grace period 3.5 years Debt to equity ratio 75:25
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Initial period of 12 years allows to repay debt
Debt payments are entirely deducted from
remuneration during subsequent 12 years under a
transparent scheme
Financing Solid Contractual and Institutional Framework
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Ivoire Hyrdo Energy Lenders DFIS
Commercial Banks
Shareholders
State of Côte d’Ivoire
Non-recourse lenders Equity
Public sector
Private Sector
Construction and Operations
EPC Contract
O&M or LTSA
Contrcat
Developers Etty
AFC, FMO
Development capital
External Advisors Themis
Hogan-Lovells Laymeyer
Hydro Design Legal, technical
and E&S external advisers
Direct Agreements
Concession Agreement
Power Purchase
Agreement
BOOT and project finance structure taken into consideration bankability standards as well as sector and regional experience
Financing Risk Analysis
• Reliable geotechnical data collected from existing upstream dams
• Exceptional proximity to road networks (4km) and electric grid (2.5km)
• Drilling and detailed engineering studies led by reputable international advisors
Cost overrun or delay in construction
• Tariff structure based on capacity payments for 97% of the tariff
• Risk is defector taken/managed by the off-taker (government) as it operates upstream dams
Hydraulic risk
• Tariff is competitive from day one in comparison with thermal power plants
• Step down tariff structure strengthens project competitiveness on the long-term
Competitiveness
• Sovereign guarantee on the utility payment obligations
• Possible partial credit risk insurance Payment risk
• Active participation of reputable financing institutions from an early stage
• Financial and legal advisors with solid track-record Financing risk
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Impact Economic Development, Environmental and Social
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Economic Development
• Competitive average tariff of 6.8 USD cents per kWh over the life time of the concession (in real terms), which is essential to sustain economic growth in Cote d’Ivoire
• Creation of several hundreds of direct jobs over a 3 year construction period
• Creation of local economic activities linkages in fishing, agriculture and eco-tourism
Environmental
• Increase in the renewable source contribution of the Cote d’Ivoire energy mix
• Development of Cote d’Ivoire’s hydro potential, which has been under-exploited with the development of thermal sources since the 1990s
• Annual reduction of around 124 thousand of CO2 emissions
Social
• The project does not entail relocation of population. Only economic compensations are expected due to displacement of traditional agricultural production
• Connectivity to land locked areas by way of the construction of the dam and access roads
• Construction of social infrastructure such as school, drinkable water and dispensaries
35-year Concession Agreement, signed in December 2013, following a two year development period
Solid culture of PPPs in Cote d’Ivoire and a history of honoured payments under power purchase agreements
Attractive commercial return for investors
Equity IRR around 18% on the basis of a tariff structure guaranteed by the Government
Competitive tariff from day one of operations with a tariff structure that improves competitiveness once debt is repaid
An exceptional site with easy access to high-way and electric grid. Availability of reliable hydraulic and geotechnical data
A solid and seasoned project development team in place
Project development cycle well engaged on technical, contractual and financing aspects
Conclusion A Replicable Success Story
A model that can be replicated in West Africa
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Ekolan Alain Etty Ivoire Hyrdo Energy
Président Directeur Général Tel: (+225) 22 52 26 75
Thank You