Clifford Chance advises IFC and Proparco on financing Benin’s first solar independent power producer project

Global law firm Clifford Chance has advised IFC and Proparco on the financing of four solar photovoltaic power plants in Benin with a combined capacity of 62 MWp. Developed by AXIAN Energy Green and Caisse des Dépôts et Consignations du Bénin (CDC Bénin), the projects represent Benin’s first solar project developed under the independent power producer (IPP) model.

Located in Natitingou, Djougou, Parakou and Bohicon, the power plants will operate under separate power purchase agreements with the Société Béninoise de Production d’Électricité (SBPE). Together, they are expected to provide clean electricity to approximately 383,000 people and increase domestic electricity generation by 17% over the 2028-2035 period, supporting Benin’s ambition to increase the share of renewable energy in its energy mix to 30% by 2030.

Financing for the projects combines resources from IFC and Proparco with blended finance mobilised by IFC from the Clean Technology Fund. It includes IFC A loans and concessional senior financing from the Clean Technology Fund, alongside financing from Proparco. IFC and Proparco are each providing approximately €14 million in financing for the projects. The transaction also marks Proparco’s first financing of an energy project in Benin.

By expanding domestic renewable electricity generation, the projects will contribute to the diversification of Benin’s electricity mix. With more than 80% of the country’s installed electricity generation capacity currently dependent on thermal power, the four solar plants are expected to reduce reliance on fossil fuels and electricity imports while supporting the country’s energy independence.

The Clifford Chance team advising IFC and Proparco on the financing was led in Paris by partner Corinne Duvnjak, supported by counsel Thomas Chneiweiss and associate Nour Fakhoury who advised on the project development and financing aspects. Senior counsel Fabien Jacquemard and associate Santiago Ramirez advised on the hedging aspects. In London, partner Edward Bretherton and associates Ben Stewart and Abi Kumaranathan advised on the construction aspects of the transaction.