Project detail - ATINKOU S.A.

ATINKOU S.A.

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Who is our client

FMO’s client is a Special Purpose Vehicle, Atinkou S.A., registered in Côte d’Ivoire. The Sponsor is Eranove, a panAfrican industrial platform for public services management and independent water and electricity production. The Eranove group has its headquarters in Paris and operates throughout Africa. It has ~1.9 mln electricity and ~1.8 mln drinking water customers in Côte d’Ivoire and Senegal. The Eranove group develops bespoke, innovative solutions that help to provide access to essential services for as many people as possible, in accordance with international standards of corporate responsibility. As such, Eranove also developed and operates the CIPREL gas fired power plant. FMO has financed stage 4b of CIPREL with a EUR 25 mln loan, which allowed the plant to convert from an open cycle to a combined cycle power plant.

Funding objective

FMO’s loan is part of a total debt package of ~EUR 303 mln to develop, construct and operate a 390MW combined cycle gasfired power plant near Abidjan, Côte d’Ivoire. The plant consists of a 255 MW gas turbine and a 135 MW condensing steam turbine. The buyer of the electricity is the Government of Côte d’Ivoire, under a 20-year concession agreement.

Why we fund this project

ATINKOU will provide the country with stable base load electricity to support economic growth and the development of intermittent renewable energy generation. ATINKOU will replace older and less efficient power plants in Côte d’Ivoire. It is roughly 50% more efficient than the older plants, meaning it will produce the same amount of electricity with half the amount of gas. Hence, it will help the sector reduce costs (lower gas bill) and will reduce CO2 emissions. FMO’s loan tenor of 15 years is not available in the commercial market and allows the Project to offer an attractive tariff to the Government of Côte d’Ivoire.

Environmental and social rationale

This is a Category A project on Environmental and Social Sustainability due to the potentially significant, diverse, and irreversible environmental and social risks and impacts associated with the project. The key social, environmental, health and safety impacts associated with the project include: influx; physical and economic displacement; air emissions; operation phase noise; solid waste management; water use and discharge; storm water discharge; labour and working conditions; and worker and community health, safety and security during construction and operations. The applicable IFC Performance Standards are 1,2,3,4,5 and 6. For this type of project (power plant, design/construction and operations), PS 1-4 are always applicable. PS5 is applicable as new land is required for the project; parts of this new land are used by local communities for agriculture. A Resettlement Action Plan in line with IFC PS5 is being finalized. PS6 is applicable as part of the land needed for the project is categorized as natural habitat. Specific mitigation actions and a biodiversity management plan are being finalized. PS7 (Indigenous People) has not been found applicable; the project does not include impacts on specific vulnerable groups or on Indigenous People as explained under PS7. PS8 is not applicable, as no objects of cultural importance were detected (confirmed by local communities).

Region
Africa
Country
Côte d'Ivoire
Sector
Energy
Signing date
2/26/2020
Total FMO financing
EUR 32.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
A