Africa’s infrastructure solutions provider Africa Finance Corporation (AFC) has announced an investment for the construction and operation of the wind project in Djibouti, East Africa.
As part of the initiative, AFC will be investing $63m in the project as the lead developer with Great Horn Investment Holdings (GHIH).
AFC president and CEO Samaila Zubairu said: “We are delighted to have the opportunity to invest and develop such a significant renewable power project in Djibouti.
“We have invested in many renewable projects in Africa, including the Cabeolica Wind Farm in Cape Verde, which won recognition in the International Finance Corporation Emerging Partnerships top ten private-public partnerships in Africa.
“We see renewable and green projects as a key part of our investment strategy as we look to support a sustainable future in Africa.”
In addition, AFM is inviting Climate Fund Managers (CFM) and FMO, a Dutch entrepreneurial development bank, for more investments into the project.
The 60MW wind project is located in the Ghoubet area, near Lake Assal in Djibouti. It is expected to begin commercial operations in 2021.
AFC has signed a 25-year take-or-pay power purchase agreement (PPA) with Électicité de Djibouti as the off-taker, an implementation agreement with the Government of Djibouti backed by a Government Guarantee.
AFC chief investment officer Oliver Andrews said: “This is a significant project for Djibouti as its first renewable energy project and signifies the country’s efforts to establish its own energy production from its own resources.
“By taking this position on the board, I am delighted to be adding my expertise to the development of the project with my colleague Amadou Wadda.”
Following the completion, the project is expected to meet the electricity demands in the country and also help Djibouti to achieve 100%-renewable energy-based electricity production by 2030.