MARCO BORERO 1.65MWp solar IPP

OVERVIEW

Marco Borero is a 1.65MQp solar PV IPP project in Nyeri County, Kenya. The project was awarded a Feed-in Tariff of USD0.12/kWh under the 2012 Feed-In Tariff program, and has since received  all requisite licences and permits, commencing construction in H1 2020. Construction Completion is anticipated for Q2 2021, with the opportunity for a partial/full equity purchase once completed.

PROJECT OVERVIEW

PROJECT OVERVIEW

  • Potential to be the first operational privately held solar IPP in Kenya.
  • Developed by first time local developers.
  • Flagship project for Kenya- Kenyan developers, EPC, O&M, senior lenders, owners’ engineers.
  • Awarded a USD0.12/kWh tariff under the 2012 FIT program.
  • Long-term revenues under a 20 year PPA with KPLC.

FINANCIAL STRUCTURE

  • Senior debt from Cooperative Bank of Kenya under the AFD-SUNREF program.
  • Debt priced at 4.43% above 6M USD LIBOR- 10year.
  • DSRA of 3 months, no traditional financial covenants (DSCR/LLCR).
  • Equity provided by way of ordinary shares (owned by the developer) and preference shares (owned by REPP).

PROJECT PROGRESS 

  • Licences received from EPRA, NEMA and County Government.
  • Signed PPA with KPLC, although timelines will need re-setting.
  • Central role in Kenya’s  Least Cost Development Plan.
  • Construction commenced in June 2020, expected completion Q2 2021.

MARCO BORERO VALUE PROPOSTION  

  • Historic project for Kenya.
  • Situated on land owned by the developer with undisputed title.
  • Substantially de-risked through development and construction.
  • Bankable project documents and contracts.
  • ESIA and ESMS in compliance with IFC Performance Standards

KEY FACTS

STATUS

  • In construction.
  • Targeted COD Q2 2021

GEOGRAPHY

  • Nyeri County, Kenya.
  • Close to Gatarakwa.

TOTAL COSTS

  • EPC- $1.9M
  • Finance Costs – $200k
  • Development Costs – $450k

TECHNOLOGIES

  • Solar PV
  • Jinko panels, SMA inverters

FUNDING STRUCTURE

  • Senior debt – $1.75M@ L+4.43%
  • Equity (ordinary & preference) -$850k

INVESTMENT PERIOD AND RETURNS

  • 20year PPA tenor
  • Equity IRR of 10-11% anticipated

RISKS

  • Commissioning of plant in Q2 2021
  • Potential for KPLC to seek PPA amendments, including to tariff.

CONTACT DETAILS

  • Maina Kanyua- Lead Developer
  • mainakanyua11@gmail.com
  • For Further Details visit : https://repp.energy/project/marco-borero-kenya-equity-investment/