Largest electricity investment in Togo's history will double the Country's
NEW YORK, July 17 /CNW/ -- ContourGlobal Togo, a subsidiary of
international power company ContourGlobal, received approval today for $209
million in financing and political risk insurance from the Board of Directors
of the Overseas Private Investment Corporation (OPIC) for the construction and
operation of a power plant in Lome, Togo.
ContourGlobal's Togo project is the largest electricity investment ever
made in the Republic of Togo. The innovative "tri fuel" 100 MW project,
expected to be operational at the end of 2009, will be powered by six Wartsila
18V50DF engines (16.6 MW each), which are capable of operating on natural gas,
heavy fuel oil, and distillate diesel oil-permitting instantaneous fuel
switching capability. The project will run on heavy fuel oil until natural gas
becomes available via the West Africa Gas Pipeline. The project will produce
over 780 GWh of electricity and will help the West African nation and the
broader region overcome an electricity shortage that has resulted in rolling
blackouts and inhibited its economic growth. The project is located within a
region that is desperately looking for less expensive and more reliable
sources of power.
OPIC will provide up to $147 million in financing and up to $62 million
in insurance to ContourGlobal Togo for construction and operation of the power
plant. ContourGlobal Togo has entered into a 25-year power purchase agreement
by which it will sell electricity generated by the plant to the Togolese
electric distribution company, Compagnie Energie Electrique du Togo.
The plant built by ContourGlobal will add a substantial source of
reliable, competitively priced power and diversify Togo's power generation
portfolio. Joseph Brandt, CEO of ContourGlobal, stated "We are very pleased to
have reached this significant milestone in our electricity generation project
in Togo and thank OPIC for their dedication and hard work. This innovative
project is the largest generation investment in West Africa in over a decade
and will catalyze economic growth and improve health and opportunity in Togo
and within the region."
Craig Huff, Co-Chief Executive of Reservoir Capital Group, said "Africa
has the world's greatest power needs. With the help of enabling institutions
like OPIC, investors can receive attractive risk-adjusted returns while
substantially lowering the cost of electricity in the region. ContourGlobal
has a significant pipeline of new generation projects in Africa and we look
forward to making further investments in the region."
ContourGlobal was established in 2005 by President and Chief Executive
Officer Joseph Brandt and Reservoir Capital Group, a $3.5 billion fund based
in New York. ContourGlobal develops, acquires and operates electric power and
district heating businesses around the globe and focuses both upon
high-growth, under-served markets and innovative niches within developed
markets -- such as renewable energy and Combined Heat and Power (CHP). The
company currently consists of eight businesses on four continents with
approximately 1,000 MW of installed capacity and an active pipeline of new
development business totaling 10,000 MW.
Reservoir Capital Group is a privately held investment firm with an
opportunistic 'hybrid' investment approach. Reservoir invests directly in
public securities and private investments, as well as in partnership with
investment teams through the creation of hedge funds and private equity firms
in which the Reservoir funds are an owner. Reservoir's opportunistic
investment funds currently have approximately $3.5 billion under management.
OPIC, established as an agency of the U.S. government in 1971, helps U.S.
businesses invest overseas, fosters economic development in new and emerging
markets, complements the private sector in managing risks associated with
foreign direct investment, and supports U.S. foreign policy. OPIC's political
risk insurance and financing help U.S. businesses of all sizes invest in more
than 150 emerging markets and developing nations worldwide.
Visit ContourGlobal on the web at www.contourglobal.com.
For further information:
For further information: Amanda Bennett, +1-212-610-9151, for
ContourGlobal Web Site: http://www.contourglobal.com