In Kenya, Burmeister & Wain Scandinavian Contractor A/S (BWSC) is constructing a large power plant, Rabai Power Station, which will provide power to more than 400,000 Kenyan consumers and businesses. The total investment amounts to DKK 850m, and the financing is the result of a close collaboration between BWSC, IFU and a number of investment funds, including the co-financed European investment facility, European Financing Partners.
– Without the collaboration with IFU and European Financing Partners it would have been very difficult for us to secure the total financing of the power plant in Kenya, says Søren Barkholt, Executive Director of Burmeister & Wain Scandinavian Contractor.
The power plant in Kenya shows how valuable a co-financed European investment facility can be for companies that wish to make large investments in a developing country.
The co-financed facilities EFP I and II have existed since 2003, and so far EUR 280m has been invested in 25 private sector projects in Africa, the Caribbean and the Pacific. Investments are made on a commercial basis in sectors like agriculture, health, hotels, housing, industry, energy, infrastructure, financing, communication and air transportation.
The investment facility EFP III is now replenished with EUR 230m from the European Development Finance Institutions and the European Investment Bank. IFU contributes EUR 5m and can also draw on the investment facility. Thereby Danish companies investing with IFU gain easier access to risk capital.
– IFU invests close to DKK 500m each year, and even though it is a lot of money it is not always enough to fund large investments with a Danish company on our own. It is therefore important that we have a wide network and a co-financed European investment facility that we can draw on to establish a total financing package, says Finn Jønck, Managing Director of IFU.
IFU has utilised the current financing facility in connection with Rabai Power Station in Kenya, Ciments du Sahel in Senegal and Careworks in South Africa.
For further information, please contact Rune Nørgaard, Head of Communications, mobile: +45 22 68 75 60