Client:

Solar Era Holdings (Africa Growth & Energy Solutions)

Country:

Sierra Leone

Year:

2017-2021

Description:

Solar Era Holdings (SEH) is a subsidiary of Africa Growth & Energy Solutions (AGES) UK PLC. The company has been developing solar projects in West Africa with the commitment to provide renewable energy solutions through international and local partnerships.  In Sierra Leone, Solar Era is developing a 25 MW Solar PV project in two phases. Phase I consists of a 5 MW solar PV plant, while Phase II is 20 MW.  SEH signed a 20-year PPA with the Government of Sierra Leone and the Electricity Distribution and Supply Authority (EDSA) as well as an Implementation Agreement with the Government in 2015. 

In 2017, GreenMax was retained by Solar Era as its financial advisor to raise capital for the implementation of the project. Over the course of five years, GreenMax successfully supported Solar Era to achieve financial close with the first 5MW scheduled for construction in 2022. 

First, we secured a USD 855k grant from the USTDA and another USD 100k from the Access/FMO competition to fund technical feasibility studies, environmental, regulatory, legal, tax and financial advisory services provided by GreenMax and our technical partner, Power Engineers. Next, we ran a competitive process to secure an investment partnership for SEH with responsAbility Africa Renewable Energy Holding (now Serengeti Energy). Serengeti agreed to finance the 5 MW Phase 1 project with 100% equity and refinance it together with implementation of the 20 MW for Phase 2. In 2019, members of the GreenMax team traveled to Freetown to help orchestrate the re-negotiation of the PPA first signed in 2015 with the GoSL. GreenMax also coordinated with the Alliant brokerage to apply for political risk insurance for the project. In 2020-2021, we continued to support the Solar Era and Serengeti teams in ongoing negotiations with the GoSL to finalize all approvals, assisted in the re-tendering for an EPC contractor and preparation of the EPC and O&M contracts, and managed the continuous updates to the project financial model needed to secure IC approval from Serengeti and political risk insurance.  

GreenMax President, Clifford J. Aron, and Transaction Advisory Group Director, Ifechukwude Uwajeh, with Solar Era Managing Director, Sophie Johnson, after agreeing with local chiefs and landowners on land-use arrangements for the 25 MW solar PV project to be constructed near Sierra Leone’s second and third largest towns, Bo and Kenema.