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African Infrastructure Investment Managers (AIIM), a subsidiary of South Africa’s Old Mutual Group, has announced that it has acquired a 44 percent stake in Albatros Energy Mali, according to a statement on Tuesday.

The fund manager said the investment – which was executed through its AIIF3 fund – will allow Albatros Energy build, own, operate and transfer a 90 megawatt (MW) thermal power station in Kayes, located in western Mali.

“This exciting new thermal project, the first IPP to connect to the national grid, will provide a much needed sustainable energy source allowing increased access to electricity for Mali’s citizens and enabling industry to grow,” said Jurie Swart, AIIM’s CEO. “We look forward to working together with our stakeholders in making a beneficial contribution to Mali’s power sector and supporting the Government in its sustainable development and poverty reduction efforts.”

Mali is among the world’s 25 poorest countries and only 25.6 percent of its 17.6 million population have access to electricity, with this level falling to 15 percent in rural areas. The country’s current installed electricity generating capacity stands at just 352 MW.

Albatros Energy’s greenfield thermal power project is expected to create enough power for about 780,000 households. Construction of the project is scheduled to begin in July 2017 and is expected to take 16 months. Once operational, power will be sold to Mali’s national utility Énergie du Mali (EDM) through a 20-year power purchase agreement.

The project’s financing is structured through senior debt (70%) and a mix of ordinary shares and shareholder loans (30%), with AIIM as the largest shareholder. Other investors alongside AIIM are Redox Power Solutions; Burmeister & Wain Scandinavian Contractor, which will construct and operate the project; and Denmark’s Investment Fund for Developing Countries.

Lenders to the project are the West African Development Bank, Islamic Development Bank, the Islamic Corporation for the Development of the Private Sector, the OPEC Fund for International Development (OFID), the Emerging Africa Infrastructure Fund, and GuarantCo.

“As long-term investors in infrastructure we are excited about the opportunities available in West Africa, particularly Francophone West Africa,” said Swart. “Mali’s GDP growth rate is forecast at a steady 5% over the next few years, is part of a regional single currency system pegged to the Euro, and has a fast growing population.”

Since 2000, AIIM has been investing in the African infrastructure sector with seven African infrastructure funds. AIIM currently manages $1.9 billion in assets across the power, telecommunications, and transport sectors with operations in 11 countries in Africa. The company’s power portfolio extends across renewable energy and thermal power assets with a combined generation capacity of over 2,250 MW.