Recent successes of CTI PFAN in Africa
Following on the successful implementation of Africa Forum For Clean Energy Financing (AFRICEF) in Johannesburg on 15 September 2010, CTI PFAN has provided continued support to the selected projects. Seven months have passed since the event and we are starting to see some fruits of our efforts in connecting promising projects with financing sources as follows. Please visit events page for further details on AFRICEF.
Barefoot Power, one of the joint winners, raised USD 300,000 of working capital investment using the business plan that the CTI PFAN had helped them develop. This business plan was also used to go on an international investor road show which has resulted in potential investment interest of USD 2 million being manifested. Barefoot Power will supply solar powered LED lights and electrical equipment to the Rural Poor in Uganda and Africa.
Kakaka the other joint winner developing a 8 MW mini hydropower project in Uganda, is in negotiations with three investors. In the meantime the Ugandan government has committed to provide grant funding to establish access infrastructure, thereby considerably sweetening the investment attraction for potential investors. It is our understanding that the Ugandan government’s decision to support the Kakaka project in this way was partly based on the project’s performance at AFRICEF.
Ouro Verde,expansion of existing plantation producing bio-ethanol for blending, organic sugar, power generation for sale to grid, and biomass briquettes, have progressed to the first implementation stage with the order now having been placed for the sugar processing equipment and the plant assembly will subsequently begin in May. This is being financed by the existing Swedish development group based on their increased confidence in the business plan pursuant to the support from the CTI PFAN. The coaches assigned by CTI PFAN for this project were experts in Brazilian bio-ethanol plants and were able to significantly streamline the business plan and make the investment more attractive, thereby convincing the development group to inject more funding and commence implementation. Additionally Ouro Verde are in discussion with three potential investors for the subsequent investment phases.