Rwanda to get $142m loan for methane-to-energy plant

Rwanda to get $142m loan for methane-to-energy plant

From News & Views

Lake Kivu

International investment management company BNY Mellon has been appointed by ContourGlobal as corporate trustee for the loan financing of its $142m methane-to-power plant in Rwanda.

The development is being funded by the Emerging Africa Infrastructure Fund, the Netherlands Development Finance Company, the African Development Bank and the Belgian Investment Company for Developing Nations. It is the largest single private investment in Rwanda’s history.

The project will remove and process otherwise hazardous methane gas trapped in the waters of Lake Kivu that will then be used to produce electricity to be sold to the country’s Energy, Water and Sanitation Authority.

William Barry, vice president of business development for ContourGlobal, said, ‘We are delighted to have the BNY Mellon team involved in the transaction and for their important contributions to the closing and ongoing administration of the financing. Their experience of dealing with complex documentation and numerous interested parties helped ensure that everything was successfully completed within a tight timescale.’

Michael Adams, managing director of BNY Mellon Corporate Trust, added, ‘BNY Mellon serves as an impartial link between borrowers and lenders in infrastructure projects. Our independence and objectivity has been a major factor in winning mandates in a field where lenders to projects have traditionally also performed the facility agent role. The KivuWatt project financing is one of the most innovative in the history of electricity generation and we are pleased to have been part of this process and the benefits it will bring the people of Rwanda.’

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