IFC and MIGA consider investment in DRC MagEnergy project

17 February 2007

World Bank Group private sector lending arms likely to support rehabilitation of Inga hydroelectric site in the Democratic Republic of Congo.

The International Finance Corporation (IFC) is reportedly considering an $8 million equity investment in MAG, a wholly owned subsidiary of the Canada-based MagIndustries Corporation, to help finance the rehabilitation of the turbines at the Inga 2 hydroelectric site. The first phase of the project, which began in early 2006, is estimated to cost $25 million. The initial work will entail critical repairs aimed at maintaining the plant’s current capacity and to preventing the site from shutting down.

MIGA, the private sector political risk insurance arm of the World Bank Group, is also reportedly interested in providing a guarantee for both the first and second phases of the rehabilitation project. MAG estimates that the combined cost of the two phases will be $135 million. The second phase consists of the rehabilitation of four of the eight turbines at the Inga site. MAG intends for the second phase to start in 2007.