ContourGlobal Togo S.A. is a wholly owned subsidiary of ContourGlobal (“CG”) which is privately owned and headquartered in New York with offices in Reston, London, Newcastle, Paris, Athens, Sao Paulo, Lagos and Kiev. CG develops and operates electric power and district heating businesses around the world with a focus on both high-growth, under-served markets and innovative niches in developed markets. CG currently operates eight businesses on four continents with about 1,000 MW of generating capacity and has an active new development business pipeline totaling approximately 10,000 MW. CG was founded in 2005 by its Chief Executive Officer Joseph Brandt and Reservoir Capital Group, a privately held investment firm based in New York with $4 billion of assets under management. Reservoir Capital Group is the controlling shareholder of CG. Reservoir was founded in 1998 by Daniel H. Stern and Craig A. Huff, both of whom serve as co-Chief Executive Officers, and Gregg M. Zeitlin, who serves as a Senior Managing Director.

The total project cost is estimated at about $189 million. OPIC has signed an agreement with CG Togo to provide up to 75% of the financing through a loan. IFC is considering a 20% equity stake in the project.

14.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.0
Equity	6.0

* These investment figures are indicative

The project will be located in Lomé, Togo, on the existing site of Centrale Thermique de Lomé (“CTL”) which is about 7 km east of Lomé and 800 meters north of the Gulf of Guinea. Developed in the 1970s and 1980s, CTL is an existing oil-fired thermal power station with 90MW capacity. CTL is no longer operational due to technical problems. The CTL brownfield site is adjacent to water, fuel storage and CEB’s switchyard. CG Togo is constructing the project on a vacant portion of the CTL site.

In addition to representing one of the largest sources of Foreign Direct Investment (“FDI”) to Togo in recent years, the project will help improve the sustainability of Togo’s power sector by: Providing energy security through reliable power supply. Acute power shortages meant that in recent years Togo has had to institute a power rationing program with daily electricity cuts of up to 4-6 hours. Major industrial customers have had substantial cutbacks in operations due to inadequate and unreliable power supply and are having to develop expensive off-grid power supply arrangements. Diversifying power source: By adding thermal power to Togo’s and the region’s hydro-dominated electricity sector (mostly imported from Ghana), the project will improve the long-term security of energy supply within the region. Leveraging private sector to support country’s infrastructure needs: After more than a decade of isolation from the development community and with little private investment, Togo’s essential infrastructure is in a very poor state. With large infrastructure financing needs, Togo will need to leverage private sources where possible. Improved Health & Safety. Load shedding reduces road safety (particularly at night) and interrupts the proper functioning of medical centers. The project will help avert power shortages. Contributing to fiscal revenues: The project will generate concession revenues for the Government of Togo. Reducing Togo’s carbon emissions: The project will help displace diesel generated electricity with HFO and eventually with natural gas.

Opportunity to support a dedicated sponsor, one of the few global power companies still committed to investing substantial capital in Sub-Saharan Africa; IFC brings its strong regional knowledge and extensive experience in financing Independent Power Producers (IPPs) in Africa and emerging markets globally; IFC’s involvement will help validate that the project is appropriately structured and balanced; IFC will help coordinate with broader World Bank Group to engage with the Government of Togo to help support reforms in the power sector

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The company has conducted extensive environmental and social assessment and prepared action plans to effectively manage potential environmental and social risks of the project. The key E&S issues identified at appraisal included air emissions and ambient air quality impacts, cumulative environmental impact assessment, remediation of the contaminated project site, greenhouse gas emissions, occupational health and safety management, waste management, emergency preparedness and response, community health and safety, economic displacement of small number of farmers and vendors, and community engagement.