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A big new loan for a Nigerian gas project underlines growing interest from private investors in the country’s potential, writes Kevin Godier. Two Nigerian banks have extended a landmark $60m project finance facility to part- finance the construction of a gas pipeline, central processing facility and associated infrastructure in Akwa Ibom state.

The European Investment Bank (EIB) is considering financing the construction of three wind farms: at Midelt in the Atlas Mountains (150MW), near Tangier (100MW) and at Essaouira (200MW) on the Atlantic coast. The projects’ total cost is estimated at €704m ($952m), with the EIB funding coming in the form of a loan to the parastatal Office National de l’Electricité et de l’Eau Potable (ONEE). The EIB has not yet decided the size of its contribution to the projects, which are part of the 850MW second phase of the Moroccan Wind Programme.

African Development Bank (AfDB) shareholders on 31 October approved a $115bn capital increase – from $93bn to $208bn – more than doubling its capital base. The AfDB said its largest ever General Capital Increase (GCI) signalled “a united front by shareholders”. Analysts commented that it was a major success for the AfDB’s Nigerian president, Akinwumi Adesina, who is focused on securing a second term in office next year. The GCI will allow the AfDB to expand its operations, with a focus on investment in agriculture and infrastructure.

A US Federal District Court on 2 September ordered the Securities and Exchange Commission (SEC) to issue rules on implementation of legislation requiring US-listed extractives companies to disclose payments by companies to host governments. Under the ruling in the case brought by Oxfam America a year ago, the SEC must submit an expedited schedule to issue a final rule for Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act within 30 days.

The African Union Commission has received 17 expressions of interest (EoIs) for the Geothermal Risk Mitigation Facility’s sixth application round. The EoIs, for projects in Djibouti, Ethiopia, Kenya,Tanzania, Uganda and Zambia, consisted of ten surface studies and seven drilling programmes, and were submitted by both private and public entities. Bid opening took place on 3 August.

The US government’s Millennium Challenge Corporation (MCC) signed a $450m compact agreement on 13 August focusing on the power sector. In addition to the $450m pledged by MCC for this second compact with Burkina Faso, the Burkinabè government has pledged to invest $50m in the compact’s projects. The compact aims to benefit 8m people through strengthening regulations and institutions, improving energy infrastructure, increasing generation capacity, and source diversification.This will include improved access to electricity for the two largest cities, Ouagadougou and Bobo-Dioulasso.

Sweden’s Swedfund has committed $12m to SunFunder’s Solar Energy Transformation (SET) Fund, bringing commitments to the fund to $60m. Other investors include the US International Development Finance Corporation – which invested $25m in 2018 – Calvert Impact Capital, Ceniarth, and Ikea Foundation. SunFunder said the fund’s junior layer, which is usually occupied by development finance institutions and philanthropic investors, is now fully committed, but $10m remains available to senior investors.

For many years Canada had a reputation as a laggard when it came to enforcing its anti-corruption law. But things are changing, with forthcoming law amendments, a strengthening of the Royal Canadian Mounted Police’s abilities and some high-profile investigations under way, writes Eleanor Gillespie. So far, 2013 has been a landmark year for Canada’s anti-corruption campaigners. It has seen the second conviction of a Canadian natural resources company – Griffiths Energy International – under the Corruption of Foreign Public Officials Act (CFPOA) and the attempt to strengthen the Act through significant amendments (Bill S-14) submitted to parliament in February.

Competition is believed to be intense as bidding closes to take over Sasol’s 50% stake in the Rompco pipeline, which runs 865km from the Temane gas field in Mozambique to Sasol’s Secunda complex in Mpumalanga.

The World Bank has announced debarments of India’s Kalpataru Power Transmission Ltd and its regional subsidiaries and of China Electric Design and Research Institute (CEDRI). The bank said Kalpataru was sanctioned as a result of fraudulent practices when participating in the Southern African Power Market Project (SAPMP) in Democratic Republic of Congo, which rehabilitated and extended high-voltage power lines, and the Egypt Wind Power Development Project (EWPDP), which included developing transmission infrastructure.

Intermediary offtaker Africa GreenCo Group has reached its first financial close following investments by InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), and the Investment Fund for Developing Countries (IFU). The milestone allowed GreenCo to submit a formal licence application to trade energy to Zambia’s Energy Regulation Board at the end of October. It also allows the company to kickstart preparations for operations in Zambia through GreenCo Power Services.

The African Development Bank (AfDB) board on 26 November approved a $120m loan to fund the construction of the 50MW Malagarasi hydropower plant in the Kigoma region of western Tanzania. The project includes a run-of-river hydropower plant, a 54km, 132kV transmission line to connect to the national grid, distribution network expansion including rural electrification and last-mile connections, project management and contract administration support, and compensation and resettlement of affected persons.

Vaalco picks up Sasol stakes Vaalco Energy announced an agreement on 17 November to acquire Sasol Gabon’s stakes in the Etame Marin and DE-8 blocks for up to $50m. The Houston-based company said the transaction would almost double its production and reserves on Etame. 

The Zambian government’s refusal to make a $42.5m interest payment by its 13 November deadline – thereby triggering a sovereign debt default – was hardly a surprise. The investor appetite that persuaded lenders to pile into $3bn-worth of Eurobonds has waned on President Edgar Lungu’s watch, while Covid-19 and falling commodity prices have affected sub-Saharan Africa as a whole. The International Monetary Fund (IMF) predicts the region’s economy will contract by 3% in 2020 and its forecast 3.1% growth in 2021 will be “a smaller expansion than expected in much of the rest of the world”.

Mining companies are struggling to pay the interim power tariff of $0.093/kWh to Zesco, blaming higher taxation and a harsh operating environment. The tariff was introduced in 2018 while a cost of service study was carried out. But some miners are struggling to pay their bills despite a recent surge in world copper prices and want the power price to be set once the study is completed in 2021.