Norton Rose Fulbright has advised the sponsors on the first utility scale solar PV project in East Africa. The 8.5MW solar PV project is located next to the Agahozo-Shalom Youth Village in Rwanda, a pioneering residential community which provides education and support for orphaned children.
The project is developed by Gigawatt Global and the sponsors include Norfund and Scatec. Scatec has been one of the leading developers and contractors in the South African renewable energy IPP programme and is also the engineering, procurement and construction (EPC) contractor for the project. The project financing is provided by senior lenders FMO and Emerging Africa Infrastructure Fund with Norfund providing mezzanine debt.
Norton Rose Fulbright has been involved with the project from the outset and has contributed over two thirds of its fees to developing the solar plant.
The team, led by global head of energy Simon Currie, advised on negotiation of the power purchase agreement and concession and implementation agreement with the Rwandan government entities, and worked with the sponsors to raise equity, procure the construction contracts, select the preferred financial institutions and bring the financing to a close.
Simon Currie, global head of energy, Norton Rose Fulbright, commented:
“This project shows what can be done when everyone's interests are aligned. From start to finish this project was completed in a little over one year and we are very proud to have helped the first large solar project in East Africa reach financial close.”
“Solar power is now a truly viable option in many parts of Sub-Saharan Africa and will reduce reliance on expensive oil-fired generation. With our office in Dar es Salaam and our successes in the South African renewable energy IPP programme we aim to be the forefront of this move towards sustainable energy in the region.”
Senior associate Laura Kiwelu also advised on all aspects of the project. Partner Richard Hill, senior associate Jim Jordan and associate Kate Freeman advised on the construction and operation aspects and senior associate Conrad Purcell and associate Kushal Bhimjiani advised on the project financing and equity funding.
Local law advice was provided by Richard Mugisha and Richard Balenzi of Trust Law Chambers and Dutch law advice from our Amsterdam office.
Allen & Overy Paris and ENS Rwanda advised the senior lenders and Wikborg Rein advised the mezzanine funder.
The project successfully achieved financial close on 14 February 2014 and construction of the project has commenced.
