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Projects

Project Brief

Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.

 

Project name
Takoradi Renewable Energy Ltd.
Project ID
10114
Fiscal year
2012
Status
Active
Guarantee holder
Africa Renewables Group
Mr. David Billon
Mr. Jean-Francois Guillon
Africa Renewables Limited
Investor country
Belgium
United Kingdom
Cote d'Ivoire
Host country
Ghana
Environmental category
B
Sector
Manufacturing
Date SPG disclosed
February 28, 2012
Project Board date
March 22, 2012
Gross exposure
 $9.2 million
Project type
SIP
Strategic priority area
South-South
IDA

View Summary of Proposed Guarantee


On May 24, 2012, MIGA issued guarantees totaling $9.2 million to support Takoradi Renewable Energy Ltd. in Ghana. The guarantees cover an equity investment by Africa Renewables Group of Belgium, non-shareholder loans by Africa Renewables Limited of the United Kingdom, and a personal loan guarantee by Mr. Jean-Francois Guillon of France and Mr. David Billon of Côte d'Ivoire. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves the establishment of a greenfield company, Takoradi Renewable Energy Ltd. in Ghana, that will produce biomass from rubber trees in plantations in the country's western region. The woodchips produced from the trees will be exported through the Takoradi port to European markets for biomass power generation.

The project will benefit the local community by providing about 70 additional jobs and alleviating primary forest deforestation. The introduction of biomass to Ghana's economy will introduce new business opportunities. The project will also facilitate the replanting and rehabilitation of rubber trees, thereby improving the sector's sustainability.

MIGA's support is aligned with the first pillar of the World Bank's Country Assistance Strategy for Ghana, which calls for raising private sector competitiveness through engagements in private and financial sector development, modernization of agriculture, sustainable natural resource management, and investment in infrastructure.

The project is also aligned with MIGA's commitment to supporting investments in countries eligible for concessional lending from the International Development Association and South-South investments. It was underwritten through MIGA's Small Investment Program.

 
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