Albatros Energy Mali (AEM) independent power project is a 90 megawatt (MW) heavy fuel oil thermal power station built in Kayes, western Mali. It is Mali’s first IPP to feed into the national grid. The power station consists of 6 Caterpillar diesel reciprocating engines. The project achieved financial close in June 2017. Construction commenced in July 2017, and was commissioned in October 31st 2018, ahead of schedule.
This significant power project is adding 25% to the current base-load power of Mali and create enough electricity for about 780,000 households. The operational, power is sold to Mali’s national utility Énergie du Mali (EDM) through a 20-year power purchase agreement.
AEM has been developed by Redox Power Solutions (Redox), which combines international expertise in power project development with local Malian ownership to deliver this land-mark project.
Given that this is the first IPP in Mali, AEM have worked collaboratively with the Government of Mali to provide all requirements for project bankability. This is reflected in the well-balanced concession agreement and power purchase agreement. AEM being the first post-conflict infrastructure project will enable future IPPs to rely on this groundwork, resulting in increased efficiency and more power being added to the grid.
AEM structured a bankable 20-year power purchase agreement with the national utility, EDM, and a concession agreement with the Government of Mali.
The project is financed under a limited recourse project finance structure, at a total project cost of around EUR122 million. The financing structure of this project is unique as it combines a conventional project finance facility alongside an Islamic finance facility (Ijara), with certain lenders providing local currency debt and others providing Euro debt. In addition, the developers arranged a debt service guarantee facility, which improves AEM’s liquidity.
AEM is located close to Kayes and Médine village adding substantial employment (260 jobs) and economic benefits. AEM is working closely with the communities of Medine and surrounding villages in order to ensure that meaningful community projects are developed during the life of the project. AEM is participating in a community working group chaired by the local mayor, with representatives of the youth, the elderly and women from the communities. Initial community projects include the provision of basic health care facilities in Médine, including refurbishing and equipping a dispensary and maternity, providing a doctor, nurse consultations ; an ambulance service; and providing potable water to 10000 people.
Amadou Sow - Chairman
“Albatros Energy Mali, has proven its ability to develop a project of this magnitude and overcome the multi-dimensional challenges towards reaching its financial close. The realization of this first IPP project proves that Mali is ready and capable to forge its own destiny and to trust its local entrepreneurs with the structuring, development and implementation of strategic homegrown PPP projects.”
Koen Beckers - CEO
“We are proud to have reached the financial close of the first IPP in Mali and to have succeeded an ahead-off schedule and within budget construction of the Albatros 90MW power plant. We are equally
excited to be able to provide since November 1 st 2018 reliable and affordable electricity access for Mali’s citizens and to contribute to the development of the rapidly growing Malian
economy. We are convinced that our team’s intense development efforts of the last years, will be a catalyst and incentive for future public private partnership of structured power
projects and other infrastructure projects in Mali”