NEW YORK, Dec. 23 /PRNewswire-Asia/ -- ContourGlobal today announced that ContourGlobal Togo, its wholly owned subsidiary, has signed a US$146 million non-recourse financing agreement with the Overseas Private Investment Corporation (OPIC) for the construction of ContourGlobal's 100 MW power plant in Lome, Togo.
ContourGlobal's Togo project will be the first substantial foreign investment in Togo in over a decade and will be one of the most significant investments in the West African power sector in over twenty years. The project involves the design, construction, and operation of a new 100 MW thermal power plant, which will produce approximately 780 gigawatt hours of electricity annually and will help the West African nation overcome an electricity shortage that has resulted in rolling blackouts and inhibited its economic growth. The project is located within a region that is desperately seeking less expensive and more reliable sources of power. The plant built by ContourGlobal will add a substantial source of clean, reliable, and low-priced electricity and provide diversity to the region's sources of power generation.
The project will begin construction in January 2009 and is expected to be operational in December 2009. It will be powered by six Wartsila 18V50DF engines (16.6 MW each), which have tri-fuel burning capability and can operate on natural gas, heavy fuel oil, and distillate diesel oil. The project will operate on heavy fuel oil until natural gas becomes available via the West African Gas Pipeline. ContourGlobal Togo has entered into a 25-year concession and power purchase agreement under which it will sell electricity generated by the power plant to the Togolese electric distribution company, Compagnie Energie Electrique du Togo.
Joseph Brandt, President and Chief Executive Officer of ContourGlobal, stated, "Entering into this loan agreement with OPIC amidst the unprecedented turmoil in the global credit markets shows that financing is available for well structured projects in developing countries. We value our relationship with OPIC and are grateful to them for the leadership they have shown with their support of this path- breaking project. We look forward to working with them on additional projects in the coming year."
Craig Huff, Co-Chief Executive of Reservoir Capital Group and Chairman of ContourGlobal, said, "Africa has the world's greatest power needs. With the help of enabling institutions like OPIC, investors can receive attractive risk-adjusted returns while substantially lowering the cost of electricity in the region. ContourGlobal has a significant pipeline of new generation projects in Africa and we look forward to making further investments in the region."
ContourGlobal develops and operates electric power and district heating businesses around the world and focuses both upon high-growth, under-served markets and innovative niches within developed markets - such as renewable energy and Combined Heat and Power (CHP). The Company consists of eight businesses on four continents with approximately 1,000 MW of generating capacity and an active pipeline of new development business totaling 10,000 MW.
Reservoir Capital Group is a privately held investment firm with approximately US$4 billion under management and is ContourGlobal's controlling shareholder.
The Overseas Private Investment Corporation, established as an agency of the U.S. government in 1971, helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. OPIC's political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide.
Visit ContourGlobal on the web at http://www.contourglobal.com .
