Project detail - DJIBOUTI WIND COMPANY LTD

DJIBOUTI WIND COMPANY LTD

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Who is our client

FMO’s investee company is a special purpose vehicle, Djibouti Wind Company Ltd, with the sole objective to operate Djibouti Wind LP (where FMO is also an investee) which is responsible for the construction and operation of 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 country’s energy self-reliance and reducing the 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 0.01 MLN
Region
Africa
Country
Djibouti
Sector
Energy
Signing date
12/19/2019
Total FMO financing
USD 0.01 MLN
Fund
Access to Energy Fund
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)
B+