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Session 4 - Eleni KYROU - European Investment Bank (EIB)
Session 4 - Eleni KYROU - European Investment Bank (EIB)
Session 4 - Eleni KYROU - European Investment Bank (EIB)
RENPOWER ETHIOPIA
07 Nov 2010
and
engineers,
socio-
environmental experts)
EUR 230bn
Around 450 projects each year in over
160 countries
• EIB lending outside the EU accounts for some 10% of its global activity
Signatures in 2018
EFTA & Enlargement
Eastern
Countries
Neighbours
EIB Group
EUR EUR 1.9bn
0.6bn
Outside EU Africa,
EUR Caribbean,
EUR 1.7bn
8.1bn EUR
2.2bn
Pacific,
South Africa
56.1
EUR
EUR 1.7bn
bn Southern
Neighbours/
Mediterranean Asia and
Latin America
More than one half of people without access to electricity live in sub-Saharan Africa. Progress
remains slow, but in 2014 electrification outpaced population growth for the first time
Old ways of understanding the world of energy are losing value as shifts occur in demand and supply;
Asia, particularly China and India, are moving to the centre of the global energy demand picture
© OECD/IEA 2018
Energy transformation: four key themes
Note: Black LCOE coal; Grey LCOE gas; yellow solar; blue wind. Note: Global change in primary energy demand 2016-2040
Source: BNEF. Source: IEA
1.4bn 39 projects
Agriculture,
Industry and Microfinance,
Local private R&D, EUR EUR 30m
education, housing
942m 18 projects
credit for
economic SMEs and
infrastructure midcaps, EUR
324m
Energy, EUR
246m
Cross-cutting objectives: Water and
Climate change Transport,
sewerage,
438m 24 projects
EUR 361m
mitigation and EUR 268m
adaptation
Regional
216m 4 projects integration
310MW Lake 50MW CSP KHI 54MW Sainhand 1.1 GW Don Jose 2x40MW Radiant
Turkana Concentrated Solar Wind & Villanueva Solar & Eldosol
Wind Energy Energy Wind Energy Solar PV IPP Solar PV
EUR 225 million EUR 50 million EUR 47 million USD 87 million USD 50 million
19 year Loan 18 year Loan 18 year Loan
15 year Loan 16 year Loan
Kenya South Africa
Mongolia Mexico Kenya
African Energy 117MW Tafila Senegal River Nachtigal HPP 34MW Scaling
Guarantee Facility Wind Valley Rice Solar Zambia
Hydro Power IPP Solar PV
Wind Energy Agriculture
EUR 50 million EUR 50 million USD 12 million
EUR 90 million EUR 15 million
Innovative guarantee 17 year Loan 10 year Loan 18 year Loan 18 year Loan
Sub Saharan Africa Jordan Senegal Cameroon Zambia
BUJAGALI HYDROPOWER
Amount USD 136m
Country Uganda
Status Signed, operational
Description
Construction and operation of a 250MW run-of-river hydroelectric power plant in Uganda.
The plant includes a 28 metre dam and five 50MW Kaplan turbine-generators.
At inception the project presented the least-cost option for electricity generation, and increased the Ugandan generation capacity by
almost 150% at a time when the electrification rate stood at a mere 9% of thepopulation.
Country Kenya
Status Signed, operational
Description
The EUR 613m Project involves the construction and operation of a 310 MW wind power plant in the Lake Turkana region, Northern
Kenya. The wind farm design includes 365 turbines.
The EIB acted as largest lender, providing a variety of instruments including:
EUR 50 m loan to the project company with full project risk (Commercial and Political Risk) retained byEIB.
EUR 100 m loan to the project company with comprehensive guarantee (for commercial and political risk) from EKF.
EUR 50 m loan to the project company with guarantee for commercial risk from 2 commercial banks and Political Risk
retained by the EIB.
EUR 25 m from EU-ITF blending mechanism in the form of preferred equity.
Country Zambia
Status Signed
Description
Construction and operation of a 34MW PV plant under the World Bank’s Scaling Solar Programme. The EIB is the largest
commercial senior debt provider.
The project benefits from a 25-year PPA tendered through the first Scaling Solar auction process in Zambia, guaranteed and fixed
offtake price of c.78.4 USD/MWh with the 100% state owned utility ZESCO.
Zambia was the first country adopting the Scaling Solar Programme which aims at standardizing the solar PV procurement process
for power plants in developing countries, thus reducing transaction costs and increasing competition.
The competitive auction attracted over 40 bidders, yielding the lowest solar power tariffs in Africa at the time.
Country Kenya
Status Signed
Description
Construction and operation of 2 x 40MW solar PV plants developed by IPPs under the feed-in tariff inKenya.
Each PV plant was financed on a stand-alone-basis under a PF structure with separate project and financing documents
despite sharing a 60% owner shareholder.
The projects have signed separate take-or-pay 20 year PPAs with state owned KPLC for the entire electrical output.
In addition to its role as financier, the EIB also led negotiations with GoK and KPLC, amending the PPAs and obtaining a number of
improvements that led to a more robust project structure.
EIB’s leveraged on its access to the EU Member States funded Investment Facility under the Cotonou Agreement to provide the
project with highly attractive terms for the project.
Country Cameroon
Status Signed
Description
The EUR 1,260m project consists in the development, construction and operation of a 420MW hydropower plant in Cameroon under
a PPP framework. When built, it will be the largest power generating asset inCameroon.
High developmental impact: i) 30% power supply increase, ii) tariff amongst the lowest in SSA and; iii) estimated to enable
c.0.33% annual GDP growth increase.
The project, sponsored by EDF and IFC, signed a 35yr take-or-pay PPA with the privatized utility ENEO. ENEO’s credit risk is back-
stopped by a guarantee from the GoC under committing on-going payments under the PPA and terminationpayments.
The project is funded through a DFI tranche and a Local Currency tranche. The EIB has committed EUR 50m 18 year 6 year grace
loan.
Country Cape-Verde
Status Signed, operational
Description
The project comprises the construction of four onshore wind farms and associated transmission infrastructure on four islands of the
archipelago of Cape Verde for a total installed capacity of 26 MW.
The project was developed by InfraCo under a PPP with the Government of Cape Verde and the local utility Electra. The EIB was
the largest lender in the operation.
The Project Company signed a fixed tariff 20 year take-or-pay with Electra. In order to incentivice the clean energy produced
from these wind farms, the agrees tariff decreases above the take-or-pay level.
The project benefits from an unconditional guarantee from the GoCV of Electra’s obligation to maintain an escrow account
amounting to three months worth of revenue payments throughout the life of the Project.