Orrick Advises Eranove on Development and Financing of Power Plant in Togo

December.16.2019

Orrick advised Eranove Group on the development and financing of the Kékéli Efficient Power tri-fuel power plant in Lomé, Togo. Eranove will develop and operate this power plant, which will be built by Spain’s Grupo TSK. The turbines, technology and maintenance services for the power plant will be provided by Siemens.

The financing, totaling CFAF 45.6 billion and €30 million, was 100% raised from African financial institutions with several senior tranches and a mezzanine tranche. The financing was arranged by BOAD and Oragroup through various institutional and commercial lenders (BOAD, AFC, Orabank Togo, BIA Togo, NSIA Benin and Banque Atlantique Togo). GuarantCo also provides a liquidity extension guarantee of CFAF 14.2 billion.

With an installed capacity of 65 MW and operating according to combined cycle technology, the Kékéli Efficient Power plant will provide Togo with a key additional source of stable electricity production by 2021.

Orrick advised on the drafting and negotiation of all project contracts, in particular the concession agreement, the power purchase agreement and the EPC contract, as well as on the negotiation of financing documents and the financial closing.

The Orrick team was led by partner Yves Lepage with of counsel Foucaud Jaulin and associate Marie-Elise Dougé on the project development side, and partner Amaury de Feydeau, senior associate Paul Loisel and associate Ahmed Boulahcen for the financing aspects. On Togolese legal aspects, Eranove was advised by Martial Akakpo & Associés. The Republic of Togo was advised by Héctor Farina. Allen & Overy acted on behalf of the financial parties and GuarantCo.