CDC, the UK Government’s development finance institution, announced the launch of a new power platform in partnership with the Aga Khan Fund for Economic Development and its industrial and infrastructure arm, IPS. With plans to invest up to $210 million between them in the joint venture, ultimately the new platform seeks to mobilize more than $1 billion for power projects in Africa.
Initially, CDC will invest $70 million in the partnership, followed by another $70 million later. The new platform will house IPS’s existing power projects in Kenya and Uganda and will look to expand its portfolio of assets by backing new projects in greater East Africa, including the Democratic Republic of Congo, Mozambique and Madagascar, and West Africa.
One such project is the 147MW Ruzizi III project in the Great Lakes region, which is expected to double Burundi’s current generation capacity, boost Rwanda’s capacity by a third and provide the Eastern DRC with much-needed base load power, all the while reducing the area’s reliance on fossil fuels. As well as supporting the development of national and regional projects, the new platform will also back mini and off-grid projects that provide electricity to rural populations who are far from national and regional grids.
HSBC provided CDC with financial advice in the establishment of the new platform.