This summary covers a shareholder loan by Windiga Energy Inc. of Canada into Zina Solaire S.A. of Burkina Faso. The investor has applied for a MIGA guarantee of €8.7 million ($9.8 million) to cover principal and interest for a period of up to 8 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The project consists of the development, financing, construction, operation and maintenance of a greenfield 26.8 MW solar photovoltaic plant in the Mouhoun region, in the South-West of Burkina Faso, 180 km west of Ouagadougou. The electricity generated from the project will be sold to Sonabel, the state-owned power utility, under a 25-year Power Purchase Agreement. The project will be connected to the national grid via a 7.8 kilometer transmission line. The 70 ha concession for the plant and 11 ha for the transmission line were granted by the Government of Burkina Faso under a 99-year lease agreement.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the IFC for their investment in the project.
The project will expand Burkina Faso’s power generation, increase energy security and diversify the country’s production mix, which is heavily dependent on oil-fueled thermal generation and imports.
As the first independent power producer in the country, the project is expected to have a significant demonstration effect and catalyze private sector participation in the country’s power sector.
The project will avoid GHG emissions and thus contribute to climate change mitigation.
This proposed project is aligned with MIGA’s priorities of facilitating investments into countries eligible for financing from the International Development Association and investments that address climate change. It is aligned with the World Bank Group Country Partnership Strategy for Burkina Faso, which emphasizes the need to promote access to solar power.