Financing Contract Signing
BNI enabled the mobilization of USD 81.3M through its partner DBSA to finance the EDM emergency program – Lot 1
The Government of Mozambique (GoM), taking into account the need to satisfy the high electricity deficit, approved through EDM, the implementation of the emergency program budgeted at US$162 million, which foresees the execution of several emergency projects for Maputo, Lichinga, Nampula, Quelimane, Pemba, Nacala and Anchilo.
For the implementation of the program, EDM attributed to the National Investment Bank (BNI), the responsibility to mobilize financing with terms and conditions adjusted to the company’s operational and financial reality, based on its performance as a development and investment bank, ally its expertise in the advisory and financial structuring component.
BNI mobilized several of its partners in the development component, with the Development Bank of Southern Africa (DBSA) expressing interest in its intervention approach in infrastructure projects focused on energy, and presented the its proposal for financing lot 1 estimated at US$81.3 million, based on EDM’s operational and financial feasibility and sustainability analysis.
BNI’s commitment, as a development and investment bank, is to ensure financing and/or structure instruments appropriate to the reality of each project and/or company that allow the mobilization of financial resources to finance the productive sectors, with emphasis on energy, under conditions adjusted to the risk and return profile of each sector and medium- and long-term projects.
TERMS AND CONDITIONS
The financing has a maturity of 15 years with concessionary conditions within the scope of the global concessionality level, as it includes the PERIP (Power Efficiency and Rehabilitee Improvement Project) and STIP (Short Term Investment Priority Project) supported by a sovereign guarantee issued based on current structure for its approval and the viability of EDM’s financial cash flows illustrated by the financial model duly audited and validated by DBSA.
The signing of the agreement between EDM and DBSA to finance the EDM emergency program reflects the success of financing mobilized by BNI in partnership with DBSA, validated by EDM in terms of technical and financial conditions combined with the company’s operational reality.
Funding for EDM’s emergency program is essentially aimed at:
- Strengthening of the electricity transmission and distribution line to avoid possible fatal collapses, as well as guaranteeing the quality of energy;
- Expansion of access to electricity in areas not covered;
- Projection of BNI as a development bank as the main vehicle for mobilizing funds to implement the National Electrification Strategy 2018/2020.
BNI addresses its compliments to DBSA for this partnership and thanks EDM for the trust that will significantly improve the capacity and provision of services.
LIGHTING THE TRANSFORMATION OF MOZAMBIQUE
