Project detail - Djibouti Wind LP

Djibouti Wind LP

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Who is our client

FMO’s investee company is a special purpose vehicle, Djibouti Wind LP, with the sole objective to construct and operate a 60 MW windfarm in the Ghoubet area, near Lake Assal, Djibouti (the Project).

Funding objective

FMO’s funding will be used for the construction of the Project for a total amount of more than USD 100mln. FMO will invest ca. USD 25mln in the Project; partner investors will fund the remainder. The Project will sell its electricity under a Power Purchase Agreement (PPA) to Electricite de Djibouti, the Djibouti state-owned utility. Please note, FMO has already funded ca. USD 1mln to finance the development phase of the Project. Development has now been finalized and construction will commence.

Why we fund this project

The Project fits well with FMO’s strategy and focus on renewable energy: (i) it is a renewable energy project that will increase the share of renewables in Djibouti’s energy mix, to date completely based on fossil fuels, (ii) the Project will increase the share of Djibouti’s own generation, improving the country’s energy self-reliance and reducing energy costs, (iii) FMO’s funding is highly additional, since providing construction and development funding is very scarce in Djibouti and (iv) it is the 1st Independent Power Producer (IPP) in Djibouti (LMIC income class) representing an opportunity for FMO to support the Djibouti government’s renewable strategy by providing expertise and guidance in the energy IPPs financing and execution.

Environmental and social rationale

The Environmental and Social (E&S) risk categorization is Category B+.

More investments

Date Total FMO financing
12/19/2019 USD 10.90 MLN
Signing date
Total FMO financing
USD 12.89 MLN
Building Prospects
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)