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18 July, 2015 -- IFC, a member of the World Bank Group today announced that IFC InfraVentures, the global infrastructure project development fund, and Eranove Group, the West African leader in electricity production, have signed a concession agreement with the government of Mali to develop the €110 million Kenié Hydropower project.
The 30-year concession agreement covers the development, construction and management of the Kenié Hydropower project. Once operational, the plant is expected to generate between 35-56 megawatts of electricity. This will significantly increase Mali’s current installed capacity, which is slightly more than 400 MW. The Kenié plant will be operated through a concession agreement competitively awarded to Kenié Energies Revouvelables, a new entity of which 80 percent is owned by the Eranove Group and 20 percent by IFC.
IFC InfraVentures is expected to provide debt and equity financing from its own account in the Kenié Hydropower project. Eranove will provide $23.2 million in financing to the project. The Kenié Hydropower project is expected to reach financial close 12 months after the signing of the concession, and construction will last 4 years.
“The Kenié Hydropower project has been under development for several years and so we appreciate the engagement of IFC InfraVentures, and welcome Eranove as main sponsor to ensure the successful signing of the off-take and concession agreement,” said Mr. Mamadou Igor Diarra, the Minister of Finance for Mali.
Mamadou Frankaly Keita, Mali’s Minister of Energy and Water said, “This project will significantly advance our goal of improving access to energy for commercial, industrial and household consumers in Mali.
Recent years have seen a marked increase in investor interest in African infrastructure projects, yet there are not enough bankable projects for the available funding. IFC InfraVentures undertook development of the Kenie Hydro at an early stage as part of efforts to address this significant gap in project development on the continent.
“Hydroelectric power is a cost-competitive renewable energy that is helping to stabilize electricity sectors financially, and satisfying demand from local consumers and industrial developers,” said Marc Albérola, Chief Executive Officer of Groupe Eranove. “We are proud of the close collaboration between Eranove and IFC that enabled the Kenié Hydropower Project to attain this significant milestone.”
The World Bank, which strongly supports the development and implementation of the project is expected to provide a partial risk guarantee.
“One of the pillars of the World Bank’s Country Assistance Strategy for Mali is to increase access to energy, a development fundamental. The Kenié Hydropower Project will make a key contribution to Mali’s post-conflict recovery efforts,” said Paul Noumba Um, World Bank Country Director for Mali.
“IFC InfraVentures is committed to supporting Mali’s power development program through a series of renewable energy projects, the first of which is the Kenié Hydropower Project,” said Alain Ebobisse, Global Head of IFC InfraVentures. “We welcome the partnership with Eranove, who share our commitment to developing renewable energy, including in fragile and conflict-affected states in Africa.”
IFC, a leader in emerging market renewable energy finance, is uniquely positioned to help countries transition to a low carbon future. As part of a wider program to help mitigate climate change, IFC is investing in and providing advisory services to private enterprises in the renewable energy sector, throughout emerging markets and across all parts of the supply chain.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit
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