Djermaya CDEN Energy SARL
Djermaya Solar is a 32 MWp solar photovoltaic (“PV”) plant, being developed by (i) InfraCo Africa Limited, (ii) Aldwych Africa Developments Limited, and (iii) Smart Energies International. The Project consists of the design, financing, construction, operation, and transfer of a 32 MWp solar PV plant and interconnection facilities. The plant includes PV modules mounted on single-axis trackers, inverters, and step-up transformers. The EPC Contractor, a leading electricity manufacturer with strong credentials in Africa, has been selected through an international competitive process. The Project is located approximately 30km north of N’Djamena. It will sell power to the Chadian national electricity utility, Société Nationale d’Electricité (“SNE”), under a 25-year power purchase agreement.
The Guarantee Holder has applied for MIGA guarantees covering up to €15 million (US$ 16.25 million equiv) of equity/quasi-equity/shareholder loans (“EQS”) investments into the project. The guarantees will have a term of up to 20 years, providing coverage against the risk of expropriation, transfer restriction, breach of contract, and war and civil disturbance.
MIGA’s risk exposure under the guarantee is proposed to be shared with the IDA Private Sector Window (“PSW”).
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
The Project is currently Chad’s first utility-scale solar PV Independent Power Producer (“IPP”). As such, it has the potential to demonstrate the viability of solar PV technology and private investment in the country’s power sector, while strengthening the regulatory environment for IPPs. By providing Chad with an estimated 1.5 TWh of renewable power over the lifetime of the project, Djermaya has the potential to diversify Chad’s energy mix, decrease its dependency on expensive and less environmentally friendly fossil fuels, and generate cost savings to consumers and the government. Support for the Project aligns with MIGA’s strategic focus on International Development Association (“IDA”) member countries, fragility and conflict-affected countries, and projects with climate benefits.