Norton Rose Fulbright advises the Djermaya Solar project on the first IPP in Chad

Global law firm Norton Rose Fulbright has advised the project company, Djermaya CDEN Energy S.A.S., on the development and financing of phase 1 of a solar project with a total capacity of approximately 34 MWp to be located 30 kilometers north of N’Djamena, Chad. Djermaya CDEN Energy S.A.S. is owned by DIPF Africa Limited and Private Infrastructure Development Group (PIDG) company InfraCo Africa Limited. The project consists of the development, financing, construction, operation and maintenance of a 60MW greenfield solar photovoltaic plant developed in two phases, a transmission line and associated interconnection facilities. This is the first solar project to be designed, financed, built and operated by an independent power producer (IPP) in Chad.

Djermaya Solar project will pioneer utility-scale energy storage in the country, incorporating a 4MWh battery energy storage system, 18km transmission line and a substation. Djermaya CDEN Energy has signed a 20-year Power Purchase Agreement (PPA) with SNE to supply Chad’s national electricity utility. The Government of Chad and Djermaya CDEN Energy have also signed a Put and Call Option Agreement (PCOA) and a Fiscal and Customs Agreement.

Norton Rose Fulbright advised on the corporate structure for the project, the preparation and negotiation of the contractual project documentation including the PPA, the PCOA, and the EPC and O&M contracts. The firm also provided assistance in relation to the financing of phase 1 of the Djermaya Solar project by African Development Bank, Société de Promotion et de Participation pour la Coopération Economique and The Emerging Africa Infrastructure Fund Limited - a PIDG company - managed by Ninety-One.

This transaction also features a concessionary loan and funding from each of the EU Africa Infrastructure Trust Fund and the PIDG Technical Assistance, and a PRG guarantee from the African Development Fund.

The Norton Rose Fulbright team was led by global head of energy Anne Lapierre and included, senior associates Marie Zelazko and Adnen Ben Naser, and associate Pierrick Ferrero. The team was assisted by counsel Véronique Bruel on certain financing aspects and partner Christine Ezcutari and senior associate Paolo Pinna advised on English law aspects of transaction documents, and partner Bayo Odubeko and associate Oscar Ko advised in relation to English law corporate aspects.