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.