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Standard Chartered raises commitment to ‘Power Africa’ to $5bn

By on August 1, 2014

Standard Chartered Bank has said it has increased its commitment to the ‘Power Africa’ initiative by raising its pledge from $2 billion to $5 billion, after reaching its initial commitment in 12 months.

The bank had during President Obama’s launch of Power Africa in July last year initially committed $2 billion.

The governments of Nigeria, Ghana, Tanzania, Kenya, Ethiopia and Liberia and a group of private-sector firms are taking part in the initiative to improve access to clean, reliable power in Africa, and ultimately deliver electricity to more than 20 million new households and companies by 2018.

A statement from the bank quoted its Group Chief Executive, Peter Sands to have said: “Over our 150 years of history in Africa, we have always strived to contribute to social and economic development, financing trade and investment across the continent.

“A lack of access to electricity is one of Africa’s most critical infrastructure challenges. With our extended commitment to the ‘Power Africa’ initiative we expect to add around 7,500 megawatts to Africa’s power grid – equivalent to the electricity production capacity of Nigeria and Cote d’Ivoire.”

It listed projects that Standard Chartered had been involved with under its Power Africa commitment to include the Azura-Edo Power Project in Nigeria, a privately-owned and funded greenfield independent power plant (IPP). The project is setting an industry standard in legal and regulatory frameworks for other developing power plants to follow, progressing the Nigerian government’s power sector reform.

“The Azura-Edo plant will harness the country’s domestic gas resources to generate 450mw of power as the first non-captive IPP in Nigeria in more than 10 years. Standard Chartered is the Global Coordinating Mandated Lead Arranger and Structuring Bank. Total invested capital in the power plant and gas supply will exceed $1 billion,” it explained.

Also, the Okija Power Project in Nigeria, which is privately-owned and a funded greenfield IPP. It would be the second (after Azura-Edo) to seek long term debt financing on a limited recourse basis.

This plant of 495mw installed capacity would also utilise domestic natural gas to generate electricity in south-eastern Nigeria. Standard Chartered is the Mandated Lead Arranger and Structuring Bank.

In addition, it is involved in the Zambian Energy Corporation. Standard Chartered’s Private Equity Africa division invested $57million into Zambian Energy Corporation, which would flow into its regional operation, CEC Africa (CECA).

 

 

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