March 19, 2012

AFC, CEC signs MoU to boost power supply in Africa

Africa Finance Corporation, AFC, has signed a Memorandum of Understanding, MoU, with Copperbelt Energy Corporation Plc, CEC, to help boost power supply in countries in Africa.

According to a joint statement signed by Oliver Andrews, Director & Chief Coverage Officer, AFC; Lucy Savage, Vice President Communications, AFC and Chama Kalima of Copperbelt Energy Corporation Plc, the MoU will enable both parties collaborate on the development, investment and operations of selected power assets in Africa.

According to the statement, the principal objectives of the parties, through the MoU, are to proactively develop, invest in, and operate selected power assets in Africa; and contribute to the promotion of Africa’s economic and social development through private sector leadership and public- private partnerships, while providing an attractive financial return to shareholders.

Projects that will be developed through the new partnership, according to the companies, include the Kabompo Gorge Hydro Power Project in North-Western Zambia, put at about N24 billion ((US$150 million), the Luapula Hydro Schemes in Luapula Province of Zambia, put at about N160 billion (US$1 billion).

The companies further stated that the agreement will also cover investment in other African countries.

CEC owns and operates an electricity transmission network on the Zambian Copperbelt, supplying power to the mining industry, and is developing a number of new projects in the energy and telecommunications sectors. CEC is a publicly traded company, listed on the Lusaka Stock Exchange.

AFC is a hybrid investment bank and multilateral development financial institution established by treaty amongst Sovereign States. AFC has a paid-in capital in excess of US$1.1bn and has a mandate to invest in infrastructure related projects throughout the continent of Africa.