On January 13, the E-Power facility in Haiti will be opened. The finance agreement for this USD 56.7 million project was signed in 2009. The main project sponsors are local shareholders (60%) and Korean East-West Power Co. (30%). The Netherlands Development Finance Company (FMO) provided USD 20.5 million. The project is crucial for the rebuilding of Haiti. After the devastating earthquake of January 12, 2010, the need for power supply was even bigger than before. Haiti has an installed capacity of 200 Mw of which only 85% is operational due to the earthquake. The E-Power plant will provide an additional 30Mw, which is crucial in restoring the electricity supply and access to electricity.

“FMO strongly supports this project since it unites two of our main objectives: providing support for a country that lacks commercial finance to rebuilt the infrastructure and enabling the population to improve their conditions. The impact of this investment on the local energy sector and economy are expected to be very positive, especially for the small and medium-sized enterprises. Once operational, the facility will also contribute funds for local community development; it is an entrepreneurial and developmental example” said Mr. Jurgen Rigterink, Chief Investment Officer of FMO.

The financing for this USD 56.7 million project was signed in 2009. FMO’s USD 20.5 million finance package included mezzanine and standby debt facilities: FMO’s USD 12 million senior debt was arranged within an IFC-led syndication where Sogebank, a leading local bank, also joined. FMO’s Access to Energy Fund, which is managed on behalf of the Dutch government, provided the FMO USD 4 million mezzanine financing and a USD 4.5 million Standby Subordinated Facility.

Besides the USD 20.5 million financing, FMO’s Capacity Development program is now funding with USD 213,550 E-Power’s programmes to build staff capacity by training of Haitian nationals, enabling them to sustainably manage the plant.

Tags: FMO