Kinguélé Aval Hydroelectric Dam Gets Financing from Development Banks
Posted on 11/10/2023
As part of the construction of the Kinguélé Aval hydroelectric dam (35MW), the project company Asonha Energy has received the first installment of the non-sovereign financing of XAF 81 billion granted by the International Finance Corporation (IFC), the African Development Bank (AfDB), the Development Bank of Southern Africa (DBSA), and the Emerging Africa Infrastructure Fund (EAIF).
This significant contribution from the financiers adds to the XAF 34 billion raised in equity by the two shareholders of Asonha Energy, namely Méridiam (60%), a company specializing in the financing and development of sustainable infrastructure, and Gabon Power Company (40%), the subsidiary of the Gabonese Strategic Investment Fund (FGIS) dedicated to water and energy.
“This milestone for the Kinguele Aval project demonstrates the ability of the Gabonese government and its partners to mobilize private capital and non-sovereign financing for the realization of impactful projects in the energy sector in Gabon, meeting the highest environmental and social standards,” declares Jeannot Kalima, Minister of Energy and Hydraulic Resources, in a press release.
This initial disbursement from the financiers will allow the continuation of ongoing works, which have seen significant progress in recent months. “The receipt of this first disbursement from international lenders reflects the confidence of these financial institutions in our project and our ability to positively and sustainably impact the daily lives of thousands of Gabonese,” explains Sylvain Bouyé, Managing Director of Asonha Energy.
The construction site of the Kinguélé Aval hydroelectric dam currently employs 400 workers, including 300 Gabonese. It is located 100 km east of Libreville on the Mbei River, on the edge of the Crystal Mountains National Park. This power plant will have a capacity of 35MW and will ultimately supply the national grid with 205GWh per year. The installation of green electricity production will contribute to replacing existing thermal capacities and will provide approximately 13% of the needs of Greater Libreville, allowing Gabon to save more than 150,000 tons of CO2 emissions per year.
Keywords: Gabonese Fund for Strategic Investments.
