The Africa Finance Corporation (AFC) has entered into a joint development agreement with Brahms Oil Refineries to develop and finance Guinea’s maiden refinery project in Kamsar, Guinea. The project is expected to reduce the country’s dependence on imported refined products and enhance its balance of payments.
Portugal – Africa Finance Corporation (AFC) has announced its joint development agreement with Brahms Oil Refineries to act as co-developer on the development and subsequent financing to a petroleum storage and associated refinery project in Kamsar, Guinea.
This will include a 76,000 cubic m crude oil storage terminal; 114,200 cubic m storage terminal for refined products; ancillary support transportation infrastructure, and 12,000 barrels oil per day modular refining facility (the Project).
Through this joint development, AFC will invest in the project development workstreams that should ensure the Project reaches financial close in 2020.
This Project will be instrumental for Guinea to achieve its economic and developmental goals, which are severely hampered by Guinea not having any refining capacity. Once operational, the Project will have a refinery capacity that is the equivalent of one-third of its demand for refined products, thereby reducing its reliance on imported refined products, improving the country’s balance of payments, and reducing foreign currency demand.
It will also allow for direct and indirect job creation and enhance the development and productivity of other sectors, especially mining, which today accounts for 15.3 % of the country’s GDP but could contribute even more if the country had the necessary infrastructure to maximise and locally beneficiate its natural resources. The Project is strategically located in Kamsar, which is one of the larger mining regions in the country.
To increase its impact on Guinea, AFC is considering several projects in the country to create an integrated ecosystem. This would include, alongside this Project, a 33MW solar project port, and other mining projects, all of which will complement AFC’s earlier investment in Alufer’s Bel Air bauxite mine.
Amadou Wadda, Senior Director Project Development and Technical Solutions Team at AFC commented on the announcement: “We are delighted to work with Brahms to accelerate the development of this instrumental project in Guinea, an AFC member state. The Brahms refinery project will have a tremendous impact in the country’s development.”
Daouda Fall, CEO of Brahms Oil Refineries, added: “ To partner with AFC is a great milestone and brings us one step closer to our goal of reaching financial close in early 2020 and kickstarting construction. We will greatly benefit from AFC’s experience in setting up and financing infrastructure projects.”