IFC, a member of the World Bank Group, today, 22 January 2018, announced an investment in Central Térmica de Ressano Garcia (CTRG), a 175 MW gas-fired power plant in Mozambique.
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.
“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,” says Adérito Sousa, CTRG Shareholders General Meeting Chairman.
“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,” says Oumar Seydi, IFC Director for Sub-Saharan Africa.