Toyota Tsusho buys into Scatec’s Tunisian renewables portfolio

Renewable power producer Scatec ASA (OSL:SCATC) has joined forces with a unit of Japan’s Toyota Tsusho Corp (TYO:8015) to develop and own renewable energy projects in Tunisia.

Under the partnership agreement, Toyota Tsusho’s Aeolus SAS has bought a 49% stake in a portfolio of projects that Scatec owns in the North African country. The Norwegian group will keep the controlling 51% interest, it said on Monday.

The portfolio covered by the deal has in place 20-year power purchase agreements (PPA) with 10-year extension options with Tunisian state utility Societe Tunisienne de l'Electricite et du Gaz (STEG). It will be executed at a total cost of some EUR 79 million (USD 86.5m), to be sourced from non-recourse project finance debt, concessional loans and equity from the partners. Funding under a Japanese carbon credit programme will be used as well.

Senior lenders backing the initiative are the European Bank of Reconstruction and Development (EBRD) and French Proparco, with concessional financing provided by the Clean Technology Fund and the Global Environment Facility.

Scatec and its partner have achieved financial closing on two solar projects of 60 MW each, the Sidi Bouzid and Tozeur, and are ready to launch construction.

Scatec will be in charge of all engineering, procurement and construction (EPC) activities related to the projects and will also provide asset management services. Post commissioning, it will also oversee the plants' operations and maintenance (O&M).

(EUR 1.0 = USD 1.095)

Choose your newsletter by Renewables Now. Join for free!