Lusaka, September 20, 2012 —InfraCo Africa signed an agreement today with the shareholders of Lunsemfwa Hydropower Company Limited (LHPC) to sell all of its interest in Muchinga Power Company, a $500million hydro power generation project under development in Zambia, to LHPC.
InfraCo Africa, a publicly funded infrastructure development group managed by eleQtra Limited, was established seven years ago to support the identification and development of infrastructure investments and attract increased private sector investment in frontier markets in Sub Saharan Africa.
Infrastructure investment in the poorer developing countries is insufficient to fund needs, leaving millions without access to basic services. Some regions, particularly Africa, have not had the same levels of private investment in public services as other parts of the developing world.
Mr. Keith Palmer, Chairman of InfraCo Africa said today “I am absolutely delighted that we have been able to successfully complete this headline transaction today. This project will add efficient, renewable electricity capacity to Zambia’s grid and help address a looming power deficit. This closing demonstrates the value of InfraCo’s unique approach to catalysing private investment into infrastructure in Africa.”
Mr. Katai Kachasa, CEO of LHPC said today “The Muchinga project is a clear success for InfraCo Africa and its intended role. The project was able to progress quickly and Infraco Africa’s work attracted international investment. I hope that other groups in Zambia and the region will take the opportunity to work with InfraCo Africa .”
About InfraCo Africa
Working in partnership with local and international sponsors, InfraCo Africa’s aim is to enable and support the mobilization of private sector investment and engagement in the provision of infrastructure and basic services. InfraCo Africa is currently developing projects in the water, energy, transport and other sectors in a number of countries in the region.
InfraCo Africa is part of the Private Infrastructure Development Group (www.pidg.org) which supports a variety of innovative initiatives to boost the development of infrastructure in emerging markets. It consists of a group of European Countries including the Netherlands, Sweden, Switzerland, and the United Kingdom, as well as the World Bank Group. For more information visit: www.infraco.com.
In London
Richard Parry
Phone: + 44 20 7079 3070
Email: richard.parry@infraco.com