Azura Power has said the 115-megawatts Tobene Power Plant in Senegal now forms part of its pan-African power generation platform.
The firm, which is the majority owner of Nigeria’s first privately project-financed independent power plant, said the new investment in Tobene brought together its majority shareholder, Actis with Africa50.
Azura Power said it would, together with Africa50, also invest in the remaining assets in the Melec Power Gen portfolio over time.
According to a statement, Africa50 is also expected to invest in future projects undertaken by Azura Power.
The Chief Executive Officer, Azura Power, Alan Muir, said, “We are delighted to be making this investment in the Tobene Power Plant to help drive our growth in thermal power plants in Africa.
“A key part of the investment strategy for Azura is to convert the Tobene plant from heavy fuel oil to gas, as part of Senegal’s Emerging Senegal Plan, in order to drive down the cost of power as well as improve the environmental impact of the plant.”
A Partner at Actis, Adrian Mucalov, said, “We have invested over $1bn across Africa in the electricity sector and we are deeply committed to the continent.
“We take our responsibility to the countries, cities and communities in which we operate extremely seriously and we are excited to be investing in a business that will directly contribute to the economic growth of Senegal.”
The Head of Infrastructure Investments at Africa50, Raza Hasnani, said, “We are very excited to make this investment in Senegal’s power sector. It underlines our strong commitment to Senegal’s progress, and we believe that our platform is well-positioned to drive the conversion of the plant to gas.”