Globeleq and its partner IPS’s Azito Energie subsidiary have signed an amended concession agreement with the government of Côte d’Ivoire to add 250 MW to the existing Azito gas-fired power plant near Abidjan.

The power plant currently generates 430 MW.

The Phase 4 expansion, combined with the technical MXL2 upgrade, which is being undertaken this year to add 30 MW to the plant’s capacity, will see Azito supplying around 700 MW, or about 30% of Côte d’Ivoire’s installed capacity.

“Our company has a wealth of experience in developing, constructing and operating power projects in Africa,” stated Globeleq CEO Paul Hanrahan in a statement on Thursday.

“We have been active in the Côte d’Ivoire energy sector, together with our partner IPS for more than 15 years. The Azito Phase 4 tariff is one of the lowest of the country’s thermal power producers and enables multiple synergies by using existing infrastructure and the expertise of its existing operational team.

“The Azito power plant will become one of the most reliable and efficient thermal power generation facilities in the region.”

“This new expansion of the Azito power plant is the outcome of a long and fruitful partnership with the [Côte d’Ivoire government], which began in the late 1990s. IPS West Africa and its partners have since invested almost $1-billion in the sector,” commented IPS CEO Mahamadou Sylla.

Côte d’Ivoire Minister of Petroleum, Energy and Renewable Energy Abdourahmane Cisse said the decision to allow the expansion of the plant was part of a policy to increase energy generation capacity in the country.

“This step is specifically crucial to answer the growth of electricity demand, which has been estimated at about 10%. The government of Côte d’Ivoire is also working on several other projects which will enable us to reach the objective set up by President Alassane Ouattara, which is to achieve 4 000 MW in 2020.”

The Azito Phase 4 expansion is expected to reach financial close in June.