Paris, France: InfraCo Africa, part of the Private Infrastructure Development Group (PIDG) is pleased to announce the participation of its sister PIDG company, the Emerging Africa Infrastructure Fund (EAIF) alongside the African Development Bank (AfDB), and Proparco as senior lenders to the 34MW Djermaya Solar project in Chad (also including a 4MWh battery system). AfDB previously announced its support for the project, having approved €18 million senior debt facilities and a Partial Risk Guarantee in 2019. AfDB, Proparco and EAIF signed a Loan Agreement with Djermaya Solar on 26th November 2021, with the finance institutions respectively committing €18 million, €9.3 million and €9.3 million of senior debt to the project. This announcement forms part of the overall package of climate commitments PIDG presented at COP26 in Glasgow in November.
Located 30km north of the country’s capital, N’Djamena, the Djermaya Solar project has been developed by InfraCo Africa, through Anergi Africa Developments Ltd (AADL), with its partner Smart Energies. Denham Capital recently entered the project as long-term investors through Neo Themis.
Fatou Gaye, InfraCo Africa’s Business Development Manager for the project, said: “InfraCo Africa is delighted to welcome The African Development Bank, Proparco and our sister PIDG company EAIF as lenders to the Djermaya Solar project. We are also pleased to be working with Denham Capital and the Neo Themis team to progress the project through to construction and operations in the coming months.” She continued, “Developing this pioneering project together with Smart Energies has not been without its challenges, but I feel it is true testament to the determination of the project partners, government agencies, and the national utility – Société Nationale d’Electricité (SNE) – that we are today announcing the involvement of three such well-respected lenders who share our belief that Djermaya Solar will demonstrate the potential of solar energy to support sustainable economic development in Chad.”
Doruk Karabulut, Director at Themis stated: “Themis is proud to become the strategic investor in Djermaya Solar and excited to reach financial signing of the project with the lenders. We recognise and commend the efforts done by InfraCo Africa, AADL and Smart Energies for the development of the project and would like to thank the African Development Bank, Proparco and EAIF for their strong support to achieve this significant milestone. The Djermaya Solar project is the first of its kind in Chad and demonstrate Themis’ continued commitment to pioneering renewable projects in Africa. We look forward to reaching financial close in the coming months and starting the construction of the project.”
Kevin Kariuki, AfDB Vice President for Power, Energy and Climate Change, added: “As part of the Desert to Power initiative initiated by the Bank, this flagship project is pioneering in several respects. First solar power plant in Chad, first electricity storage infrastructure, it is also the first public-private partnership (PPP) in the form of an Independent Power Producer (IPP) in the country. This model could be replicated in other Sahelian countries under the Desert to Power Initiative in order to attract investments and accelerate the transition to clean energy. The AfDB has deployed various financing instruments for this InfraCo Africa is supported by Project: The Sustainable Energy Fund for Africa (SEFA) to support the development phase and a technical assistance to the Chad electricity company for the management of storage facility, the mobilisation of senior debt and a Partial Risk Guarantee (PRG).”
Paromita Chatterjee, an Investment Director at EAIF said, “The Djermaya project is particularly significant because it is pioneering renewable energy and battery storage in Chad. Its key strategic function is to help Chad unlock the country’s economic potential and to fly the flag for more green energy projects in the country.” Ariane Ducreux, Director of Proparco’s Energy, Digital and Infrastructures Division said “Proparco is pleasedto support the Djermaya Project which contributes to the energy transition by adding renewable power capacities and addressing the growing demand for energy in Chad, which is amongst the priority countries for Proparco and AFD Group. This project is the Group’s first project in Africa to integrate a storage system, ensuring proper integration of intermittent solar energy into the N’Djamena electricity grid.”
Djermaya Solar will be developed in two phases totalling 60MW and is the first solar project to be designed, financed, built and operated by an independent power producer (IPP) in Chad. The project will also pioneer utility-scale energy storage in the country, incorporating a 4MWh Battery Energy Storage System (BESS), 18km transmission line and a substation funded with €6.35 million of concessional debt from the EU-Africa Infrastructure Trust Fund (EU-AITF). InfraCo Africa has also leveraged US$854,000 of grant funding from PIDG Technical Assistance (PIDG TA) to support legal and environmental advisory services and an additional US$1.5million capital grant.
Djermaya Solar also benefits from strong support from the Government of Chad and the project company, Djermaya CDEN Energy (DCE), has signed a 20-year Power Purchase Agreement with SNE to supply Chad’s national electricity utility. The Government of Chad and DCE have also signed a Put and Call Option Agreement and a Fiscal and Customs Agreement as part of the project financing approach required to commence construction in early 2022. Djermaya Solar is expected to begin delivering power to Chad’s national grid in 2023.
Notes to editors:
• Chad has an electrification rate of 8.4% and those businesses and households that do have access
experience frequent power outages.
• The Djermaya project is expected to have a significant economic development impact. It will increase the supply of reliable power, so creating a more stable business environment, stimulating investment and improving domestic conditions for families connected to the grid.
• Djermaya Solar is the most advanced of the pilot projects supported by AfDB as part of its Desert to Power initiative across the G5 Sahel countries: Mali, Chad, Niger, Burkina Faso and Mauritania.
• The project is committed to championing best international practice in health and safety, antibribery and corruption, local employment, and the empowerment of women.
• The project has helped to create standardised contracts that will facilitate the implementation of future renewable energy projects.
InfraCo Africa: InfraCo Africa is part of the Private Infrastructure Development Group (PIDG). InfraCo Africa seeks to alleviate poverty by mobilising private investment into high-quality infrastructure projects in sub-Saharan Africa’s poorest countries. It addresses the risks and costs of early-stage project development: funding teams of experienced
developers and providing risk capital to those projects which need the financial commitment and leverage that InfraCo
InfraCo Africa is supported by Africa can bring. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). For more information visit: www.infracoafrica.com
The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and
south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 171 infrastructure projects to financial close which provided an estimated 217 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC. PIDG TA can provide technical assistance and capital grants to the PIDG companies to meet a range of needs associated with an infrastructure project’s life-cycle. PIDG TA can also provide up-front viability gap funding grants to support PIDG projects that require concessional funding to make a project with strong development impact financeable. www.pidg.org
Emerging Africa Infrastructure Fund (EAIF): EAIF provides a variety of debt products to infrastructure projects promoted mainly by private sector businesses in Africa and parts of the Levant. The Fund helps create the infrastructure framework that is essential to sustained economic stability, business confidence, job creation and
poverty reduction. It has to date supported over 80 completed infrastructure projects across nine sectors in over 20
African countries. At the end of 2020 EAIF had a committed loan book portfolio of over US$1 billion. EAIF is part of
PIDG. EAIF was established and substantially funded by the governments of the United Kingdom, The Netherlands,
Switzerland, and Sweden. It raises its debt capital from public and private sources, including Allianz, the global insurance and financial services company; Standard Chartered Bank; the African Development Bank; the German development finance institution, KFW, and FMO, the Dutch development bank. EAIF is managed by Ninety One. For more information please visit: www.eaif.com
African Development Bank (AfDB): AfDB Group is a regional multilateral development finance institution established to contribute to the economic development and social progress of African countries that are the institution’s Regional
Member Countries (RMCs). The AfDB was founded following an agreement signed by member states on August 14,
1963, in Khartoum, Sudan, which became effective on September 10, 1964. The AfDB comprises three entities: the
African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). As the premier development finance institution on the continent, the AfDB’s mission is to help reduce poverty, improve living
conditions for Africans and mobilize resources for the continent’s economic and social development. The AfDB
headquarters is officially in Abidjan, Côte d’Ivoire. For more information visit: https://www.afdb.org/en
Proparco: Proparco is the private sector financing arm of Agence Française de Développement Group (AFD Group). It has been promoting sustainable economic, social and environmental development for over 40 years. Proparco provides funding and support to both businesses and financial institutions in Africa, Asia, Latin America and the
Middle-East. Its action focuses on the key development sectors: infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education. Its operations aim to strengthen the contribution of private
players to the achievement of the Sustainable Development Goals (SDGs) adopted by the international community
in 2015. To this end, Proparco finances companies whose activity contributes to creating jobs and decent incomes,
providing essential goods and services and combating climate change. For a World in Common. For further information: www.proparco.fr/en and @Proparco
Anergi Africa Developments Ltd (AADL) AADL is a power project development company within the Anergi Group. The
Anergi Group has over 16 years’ experience in developing renewable and conventional power projects in sub-Saharan
Africa. We seek to understand the need for electricity in a particular country and then provide the investment and expertise needed to develop the right solution. Anergi Group develops and invests in projects to serve a market for
20 years or more. As a result, Anergi Group believes in ensuring its work is centered on the local community and
developed with integrity, a sense of fairness and transparency. The successful development of greenfield power
projects in Africa also requires experience, innovation and patience: these qualities underpin Anergi Group’s culture
and are brought by the AADL team to every project it develops, ensuring its projects are robust, fit for purpose and
serve the people they are designed for. For more information on AADL, please visit the Anergi Group website at:
InfraCo Africa is supported by Smart Energies is an Independent Power Producer (IPP) specialized in the development, financing, construction and operation of renewable projects across Europe and Africa . The group, which has about 40 employees, is building or operating, by the end of H1 2021, more than 450 sites, mainly solar rooftop and park shelters, located in France (mainland and overseas) and in Italy, with an average size of 300kWp/site. Smart Energies has a portfolio under development of more than 100MWp in France (Metropolitan and Overseas) and internationally (Italy, Scandinavia…).
The group is also developing larger-scale solar plants in Africa. For more information visit: www.smart-energies.eu
Denham Capital is a leading energy and resources-focused global private equity firm with more than USD 12 billion of
invested and committed capital across eleven fund vehicles and offices in London, Boston, Houston, and Perth. The
firm makes direct investments in the energy and resources sectors, including businesses involving power generation,
oil and gas, and mining, across the globe and all stages of the corporate lifecycle. Denham’s investment professionals
apply deep operational and industry experience and work in partnership with management teams to achieve longterm investment objectives. For more information visit: www.denhamcapital.com
Neo Themis is a leading project developer and investor with an exclusive focus on incremental renewable power generation assets in Sub Saharan Africa. Themis’ objective is rapid delivery of sustainable assets and creating best
value through partnerships and innovative approaches. The team, which is headquartered in Casablanca, Morocco,
has a multi-disciplinary team with a proven track record in Africa. For more information visit: www.neothemis.com
EU-Africa Infrastructure Trust Fund (EU-AITF). Created in 2007 by the European Commission and European Union
Member States, the EU-AUTF was the first EU ‘blending instrument’ with the objective of promoting infrastructure
projects in sub-Saharan Africa with a regional impact. ‘Blending’ means combining long-term investments from development finance institutions (loans, risk capital etc) with grant monies to gain financial and qualitative leverage
as well as project sustainability. Another objective of blending is the promotion of cooperation and coordination
between European and non-European aid actors. For more information visit: https://www.eu-africa-infrastructuretf.net/index.htm
For more information please contact: