CMS advises on acquisition of two pioneering gas-to-power-projects in Africa

Hamburg – CMS has advised the Highland Group on its acquisition of two integrated energy projects in Rwanda with an expected total capacity of 81 MW. These groundbreaking projects combine offshore methane extraction from Lake Kivu, onshore gas processing facilities, and two biogas-fired power plants to provide electricity for Rwanda. Due to its unique geological and tectonic features, Lake Kivu in Rwanda is one of the few locations on earth housing an extremely significant biogas basin in the deeper water levels which to date is largely untapped.

Highland purchased the project and associated rights from the Symbion Group who has developed both projects until now and was awarded a Concession and Power Producing Agreement in 2015 by the Government of Rwanda to produce power using the Lake Kivu methane resource. The project is expected to commence construction in 2019. Both plants should be fully operational by 2023.

Highland intends to develop and construct the projects without debt financing but will seek to raise project finance after completion. The total investment volume of both projects is expected to exceed USD 300 million. The transaction proves that international investors are increasingly looking to Africa for investment opportunities and showcases Rwanda's success in establishing a business-friendly environment.

A multidisciplinary team from CMS’s Hamburg office headed by lead partner Dr. Holger Kraft advised Highland on all aspects of the acquisition and the project.

CMS Germany

Dr Holger Kraft, Lead Partner
Dr Hans Fabian Kiderlen, Counsel
Matthias Sethmann, Counsel
Kai Ostermann, Senior Associate Dr Susanne Keck, Senior Associate
Dr Constantin Lentz, Associate, all M&A Energy
Dr Olaf Thießen, Counsel, Tax
Dr Marc Riede, Partner
Carl Werner, Counsel, both Banking & Finance

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