BENIN – Genesis Holdings, a Nigerian based energy company, has secured funding from the Emerging Africa Infrastructure Fund (EAIF) for the construction of a 25MW gas power plant in Benin.
EAIF- a Private Infrastructure Development Group (PIDG)- stated in a statement that it will be funding the Gas power project being developed by Genesis Holdings to a tune of US$42.44 million.
The EAIF further noted that it has already set aside US$31.83 million for the gas project to be developed at Maria Gleta, near Benin’s Capital of Porto Novo.
A report by Africa Energy Portal revealed that financial close for the project is expected in Q1 2021, with construction forecast to begin shortly afterwards.
The Maria Gleta gas power project is Emerging Africa Infrastructure Fund’s first in Benin and the fund is expected to be the project’s sole financier.
Increasing Benin’s base load generating capacity will significantly improve the country’s ability to attract investment from local entrepreneurs and internationally mobile capital.
Independent data shows that some 42% of the 11.5 million people of Benin have access to electricity.
Ongoing investment in uniting the transmission lines of the electricity grids in north and south Benin and linking it to neighboring countries is a factor in promoting investment in the generation sector.
PIDG provided a returnable grant of US$ 449,250 at the onset of the project which was a key element in helping to assess the financial viability and bankability of the project.
The PIDG funds also helps meet the cost of the rigorous due diligence process that is required on all projects seeking support from PIDG and its companies.
Emilio Cattaneo, Head of Technical Assistance at PIDG TA, explained that “Early stage financial support not only helps make infrastructure projects more viable, but also strengthens investor confidence at the project financing stage.”
Africa Energy Portal reported that Genesis Holding was partnering with Johannesburg-based Pembani Remgro Infrastructure Fund (PRIF) in the development of the project.
PRIF is an equity investor across Africa in infrastructure projects and allied businesses and is said to have made a key strategic contribution to achieving a strong financial foundation and corporate structure for the project.
“EAIF brought us its very deep knowledge of financing power stations across Africa and introduced us to PIDG Technical Assistance,” Akinwole Omoboriowo II, Chairman Board of Directors of Genesis Holdings said.
Akinwole Omoboriowo in his statement thanked the Government of Benin, for creating a welcoming investment climate and for being committed to growing Benin’s power generation sector and delivering better energy security.
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