YUMN Ltd Signs $350 Million Financing for construction of a peat to power plant of 80MW

Kigali, 22nd November, 2016- YUMN Ltd signed the financing documents with lenders meant to construct of  a peat to  power plant of 80 MW located in Mamba sector, Gisagara District/Southern Province.

 

Signing ceremony held at Marriot Hotel in Kigali

The event was officiated by the Minister of Infrastructure, Honorable James MUSONI and the guest of honor and representative of the government of Rwanda who stood in to witness the signing ceremony.

YUMN ltd signed the financing documents with the core lenders such as Africa Finance Corporation (Mandated lead Arranger for Senior debt), Finnfund (mandated lead arranger for junior debt), PTA Bank, Afrexim Bank, Development Bank of Rwanda and Exim Bank of India respectively.

According to the Minister of Infrastructure, Hon.James MUSONI, the project comes as another commendable step towards achieving our economic goals and raising Rwandans economic and social status as replicated in our development strategies. “This project will increase our installed capacity by 80 MW and might be the biggest power plant in the country by the time it comes on line. Together with other energy projects in pipeline, it’s expected that our installed capacity will significantly increase to more than 500MW in the next five years “He quotes

The signing was also witnessed by the key players; Hakan Madencilik A.S, a coal trading company from Turkey, Quantum power  an investment platform focusing on power, energy, natural resources and related infrastructure, primarily in Africa  and Themis

Hakan Karasoy, Vice Chairman of Hakan Madencilik said: “We would like to thank the Government of Rwanda for its unwavering support of this project. We are excited to be bringing much needed electric power to the people of this country.”

Matty Vengerik, CEO of Quantum Power added: “We are delighted to have reached this milestone in the development of the project and are proud to partake in this important transformation of the Rwandan Energy Sector, which will have a significant impact on the country’s economy.”

YUMN Ltd is building an 80MW Peat-Fired Power Plant in Mamba Sector, Gisagara District under a Build Operate, Own and Transfer (BOOT) basis with a 26 year of Power Purchase Agreement.

The project involves construction and operations of both i) peat harvesting facilities and ii) power generation facilities. The Project has a second phase which has an additional 40MW of capacity.

The peat power plant will be constructed under EPC Contractor worth $350Million and the construction is expected to be completed in 36th Months. After the construction YUMN will operate the plant for 26 years and then transfer it to the government of Rwanda.

 This project is the first of its kind in Africa (first peat power project in Africa) expected to increase 40% of national power capacity and it will bring more energy independence to the Country since it is meant to use 100% of domestic fuel leading to reduction of imports.