Nairobi, 24 June 2021 – ATI bagged the Energy Deal of the Year Award at the 2021 African Bankers Award. ATI’s liquidity guarantees issued in support of renewable energy projects, the Nkhotakota and Mubuga solar PV power plants in Malawi and Burundi respectively, were recognised for having had the most significant impact in lighting up Africa, one of the key components in the African Development Bank (AfDB)’s five priorities that are crucial for accelerating Africa’s economic transformation (the High 5s), and for introducing a new blueprint for renewable energy investment in the two countries. The African Banker Awards have become the most respected and recognised industry event and this year, the organisers put an emphasis to recognise and reward institutions that contributed to economic growth, which has suffered from the impact of Covid-19.
ATI, through its Regional Support Liquidity Facility (RLSF), provided liquidity cover that protects Independent Power Producers (IPPs) against the risk of non-payment by state-owned power utilities. RLSF policy covers six months of the IPPs revenue and acts as the primary form of Buyer Payment Security – taking away the burden from the power utility to finance or source alternative forms of Buyer Payment Security as typically required in Power Purchase Agreements entered into with IPPs.
The 21MW Nkhotakota solar project is one of several well-advanced renewable energy projects under development in Malawi that are being driven by private developers. This is in line with recent reforms in the power sector implemented by the Government of Malawi, whose target is to increase the availability of reliable electricity supply in the country. The existing low electrification rates and power supply deficits have negatively impacted the country’s economic development.
The 7.5MW solar power plant in Burundi was the country’s first permanent power station and the largest private international investment in the power sector in Burundi in nearly three decades. Once connected to the grid, it will account for 15% of Burundi’s installed electricity capacity and will provide electricity to an estimated 87,000 people and businesses; placing a significant dent in the country’s energy deficit, where less than 5% of the population has access to power.
ATI has a strong institutional focus on supporting its member countries’ transition to the green economy. Thanks to the support of the German government and KfW Development Bank, RLSF is one of a number of insurance solutions that ATI is using to help address climate change in Africa.
A full recording of the entire award ceremony can be accessed here https://www.youtube.com/watch?v=ezWw4cWu878
