WASHINGTON, June 29 /PRNewswire/ -- IFC, a member of the World Bank Group, is acquiring an interest in a power plant in Togo to support the efforts of ContourGlobal, a global power project developer and operator, to ensure long-term energy security in Togo and the wider West African region.
This equity investment to acquire a 20 percent stake in ContourGlobal Togo S.A. supports one of IFC's priorities -- to invest in infrastructure in Africa. ContourGlobal Togo S.A., awarded a 25-year concession by the government of Togo, will develop, build, and operate 100-megawatt thermal power plant in Lome.
The plant, which is expected to be operational in July 2010, initially will run on heavy fuel oil, switching to gas when it becomes available. The Togolese state-owned distribution company, Compagnie Energie Electrique du Togo, will purchase all the electricity generated, which will help meet the country's current needs.
"IFC's support for this project will facilitate our additional investment in Togo and Sub-Saharan Africa," said Joseph C. Brandt, President and CEO of ContourGlobal. "We have enjoyed an excellent relationship with IFC over the years and look forward to working with them on the many projects in our pipeline." Mr. Brandt also noted that his company is proud to partner with an institution that shares its deep commitment to responding to Africa's critical infrastructure needs.
A severe electricity supply shortage constrains economic growth and poverty reduction in Togo. The country is in dire need of more reliable, competitively priced power.
Bernard Sheahan, IFC Director for Infrastructure, said, "IFC is pleased to support a global sponsor with the financial capability, technical expertise, and the commitment to develop power projects in Sub-Saharan Africa. As the first large-scale private sector investment in Togo in over a decade, we hope the project will pave the way for similar projects, helping meet the large infrastructure needs in the country and the broader region."
ContourGlobal is a power and energy operating and development company headquartered in New York City with approximately 900 employees worldwide and over 1,300 MW of capacity in operation, under construction, or in active development in a diverse set of markets including North and South America, the European Union, Ukraine, and Sub-Saharan Africa. The Company is one of the leading power development companies in Africa with projects under construction or in development in six countries, including Togo, Nigeria, Rwanda, Kenya, Mali and the Ivory Coast. ContourGlobal develops and operates electric and combined heat and power businesses around the world for both governments and multinational companies. The Company focuses both upon high-growth, under-served markets and innovative niches within developed markets – such as renewable energy and combined heat and power. For more information, visit www.contourglobal.com.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.