KODENI SOLAR S.A.S.U.
Who is our client
FMO is investing into Kodeni Solar SASU (“Kodeni”), an SPV established under the laws of Burkina Faso with a total syndicated debt of EUR 32.4 million. The Sponsor is Africa REN Invest Ltd. (Mauritius), an IPP that is active in West Africa’s renewable energy market. Africa REN who also own and operate the Senergy 2 solar PV plant in Senegal, which was also financed by an FMO loan.
FMO’s loan of EUR 11.97 million will catalyse EUR 12.3 million from ICCF both for a 14.5 year tenor and mobilise a further EUR 8.1 million from AEF which will have a longer 20-year tenor. This financing will allow for the development, construction, operation and maintenance of a 38MWp solar farm with a total project cost of EUR 40.5 million.
Why we fund this project
This is a greenfield renewable energy development in a low-income sub-Saharan country and the first privately owned solar power project in the country. Kodeni will provide clean, reliable electricity to a country that has one of the lowest electrification rates in West Africa at a lower price than current thermal power stations. FMO’s tenor of up to 14 years and 6 months is not available in the Burkina Faso market and allows the project to offer an attractive tariff to SONABEL.
Environmental and social rationale
Category B+, all IFC PSs triggered except PS7, as there are no Indigenous Peoples groups affected by the project. Key E&S focus areas include provision of replacement land to land sellers, via a government-led process. The project company will follow and support the process in line with IFC PS requirements on Private Sector Responsibilities in Government Led Land Acquisition. While local communities and authorities are supportive of the project, proactive management of the project-community relationship and avoiding project-induced intra-community tensions are key areas where the company will continue to focus their efforts, given the deteriorating security context in Burkina Faso, where minor issues can escalate fast. A project-specific environmental and social management system with plans and procedures addressing all relevant areas, including the above, will be implemented by the project company and cascaded down to contractors and subcontractors.
|Date||Total FMO financing|
|12/22/2020||EUR 11.97 MLN|
- Burkina Faso
- Signing date
- Total FMO financing
- EUR 8.10 MLN
- 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)