BUTEC Group has announced the financial close of a project to build, operate, and transfer two 50-megawatt thermal power plants in Burkina Faso. The emergency project, developed under a Build-Own-Operate-Transfer (BOOT) model, will be deployed in Kaya and Koudougou, two regional economic hubs. Commissioning of the units is scheduled for the first quarter of 2026, under a five-year power purchase agreement signed with the national electricity company Société Nationale d’Électricité du Burkina (SONABEL).
Structured financing with regional banking partners
The total investment amounts to XOF26bn (approximately €40mn or $43.4mn), mobilised through a structured financing package led by Banque Centrale Populaire (BCP) Group. The financing was arranged through its subsidiaries Banque Atlantique Burkina Faso, Banque Atlantique Côte d’Ivoire and Banque Atlantique Togo. BUTEC also contributed equity funding, reinforcing its position as developer and operator under the BOOT model.
Financial advisory firm Capital of Africa supported BUTEC throughout the transaction, structuring the deal and coordinating the mobilisation of funds with regional banking partners. The financial arrangement is designed to ensure rapid execution in response to urgent electricity supply needs.
Fast-track delivery schedule
The thermal plants, to be operated by BUTEC Power Generation for five years before transfer to the Burkinabè state, aim to mitigate growing power shortages during peak demand periods and reduce energy dependence in strategic regions. Their location in Kaya and Koudougou targets areas with high economic activity and growing urban density.
According to SONABEL, the project will help strengthen supply reliability for local households and businesses. The initiative is also expected to create indirect employment and service opportunities during the operational phase.
Operational commitment and replicable model
The BOOT strategy adopted by BUTEC is a key operational lever for the execution of energy infrastructure projects within shortened timelines. It allows the developer to retain operational responsibility while ensuring asset delivery at the end of the contract. This approach, already applied by the group in other francophone African markets, relies on strong integration of financing, construction, and operational capabilities.
BUTEC stated that this financial close confirms the strength of its model and its ability to meet urgent energy infrastructure needs. Close collaboration with regional banking institutions was essential to structuring a scheme tailored to local financing conditions.
