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Economy

Cote D’Ivoire secures $493 million in loans to pay power debts

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The Minister of Petroleum, Energy and Renewable Energies said that the facilities are earmarked for debt owed by state-owned CI Energies to private operators of gas-fired plants, including Ciprel, Azito Energy Company and a unit of Aggreko.

Sunday 19, May 2019

(Bloomberg) -- Cote D’Ivoire has secured $493 million to pay back debts that its power utility owed to electricity suppliers.

Abdourahmane Cisse, the Minister of Petroleum, Energy and Renewable Energies, said that the West African nation secured a XOF 300 million ($335 million) loan from Deutsche Bank while NSIA Banque and the local unit of Societe Generale offered a further XOF 95 billion ($158 million) in finance.

The loans are repayable over 12 years at a rate of less than six per cent while the World Bank will guarantee the debt, Cisse said.

Last year, the World Bank said a build-up of short-term debt in the power sector is a risk to attracting investment that will maintain Cote D’Ivoire’s status as one of the region’s largest electricity exporters.

The debts rose rapidly after collections from local and regional customers fell sharply in 2016, while the depreciation of the currency resulted in higher gas costs.

 

TAGS : Deutsche Bank, NSIA Banque, Societe Generale, CI Energies, power suppliers

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