Globeleq increases ownership in Côte d’Ivoire power plant

LONDON: 1 November, 2010: Globeleq Generation Limited, the emerging markets power company, announced it has substantially increased its ownership to obtain a majority interest in the Azito gas-fired power plant near Abidjan in Côte d’Ivoire. 

Earlier in the year, Globeleq signed agreements with EDF Group (EDF) and ABB Equity Ventures (ABB) to pursue acquisition of both entities’ shareholdings in Azito.  The transaction was successfully completed after the necessary regulatory, legal and financial consents were attained by all parties to the agreement.  Industrial Promotion Services (IPS) retains the remaining shareholding in Azito.

The facility generates approximately 290 MW and supplies over one-third of essential electricity to the country through the privately owned electricity company, CIE.  The plant operates under a 24 year concession.  Globeleq has held an interest in Azito Energie since 2003 and has participated as a member of the Azito Energie Board.  The agreed transaction price with EDF and ABB will not be disclosed.

In co-operation with the Government of Cote d’Ivoire, Globeleq and IPS are leading a project to expand and convert the existing plant from a single-cycle power plant to a more efficient combined cycle power plant.  This will increase the capacity of the plant by 50% to approximately 420 MW without the need for additional gas and with no additional CO2 emissions.

Globeleq’s CEO, Mikael Karlsson commented:  “This is a very important transaction for Globeleq.  To acquire a majority position in a plant that we know well and with a significant expansion project in development, it enables us to become a more significant player in the region’s electricity sector.  It is a big step forward for the implementation of Globeleq’s strategy to become the leading power company in Africa.”


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