$1.$ With the aid of a diagram, describe the financing structure of the Azito project, detailing the sources of funding and the respective amounts.

Azito, C$$te d$$Ivoire as per information below.

Type of project

$288$ MW power plant and $225$ kV transmission system.

Country

C$$te d$$Ivoire$.$

Distinctive features

$$ First major private infrastructure project in sub$-$Saharan Africa $($South Africa excluded$)$ to be financed with private commercial bank term loans.

$$ First power project in the region financed on a non$-$recourse basis.

$$ Model for similar projects in the region.

$$ First project financing with a guarantee from the International Development Agency $($IDA$).$

$$ Largest thermal power plant in West Africa.

$$ Second largest independent power project in C$$te d$$Ivoire$.$

$$ Successful project financing requiring involvement of multilateral agencies.

Description of financing

The total project cost of US$$223$ million was financed in $1999$ from the following sources:

$$ US$$44$ million in sponsors$$ equity;

$$ US$$32$ million as an A loan from the International Finance Corporation $($IFC$)$;

$$ US$$30$ million as a B loan from the IFC;

$$ US$$30$ million from commercial banks with an IDA guarantee;

$$ US$$47$ million from the Commonwealth Development and bilateral agencies; $$ US$$22$ million in subordinated debt; and

$$ US$$18$ million in cash from operations.

Debt is repayable over $12$ years. Pricing on the commercial bank portion, not made public, was reportedly about $300$ basis points $($bps$)$ over the London interbank offered rate $($Libor$).$ To protect part of the project debt against interest rate volatility, the IFC provided a US$$32$ million interest rate swap to convert its exposure from a floating rate to a fixed rate.