Equity investor African Infrastructure Investment Managers (AIIM) has acquired a 44% stake in Albatros Energy Mali, which is developing Mali’s first independent power project (IPP) to feed into the national grid.
Albatros will start the 16-month construction – under a build, own, operate and transfer model – of a 90 MW thermal power station in Kayes, western Mali, in July.
“As long-term investors in infrastructure, we are excited about the opportunities available in West Africa, particularly Francophone West Africa.
“Mali’s gross domestic product growth rate is forecast at a steady 5% over the next few years, is part of a regional single currency system pegged to the euro and has a fast-growing population,” said AIIM CEO Jurie Swart in a statement on Tuesday.
Power will be sold to Mali’s national utility Énergie du Mali through a 20-year power purchase agreement.
The thermal project will bolster the country’s current installed electricity generating capacity of 352 MW and allow increased access to electricity for Mali’s citizens. Only 25.6% of the country’s 17.6-million people have access to electricity.
AIIM is now the project’s largest shareholder.
Other investors include Redox Power Solutions and Burmeister & Wain Scandinavian Contractor, which will build and operate the project, as well as Denmark’s Investment Fund for Developing Countries.
Lenders to the project include the West African Development Bank, Islamic Development Bank, the Islamic Corporation for the Development of the Private Sector, the OPEC Fund for International Development, the Emerging Africa Infrastructure Fund and GuarantCo.
The project finance is structured through 70% senior debt and 30% a mix of ordinary shares and shareholder loans.