News and Events

Oct 29, 2015

AgDevCo announces formal process to select commercial partner(s) in AgDevCo's Babator Irrigated Farming Hub project in Ghana

 1. Opportunity for Commercial Partners

The Babator Irrigated Farming Hub is a 5,740 ha (net) irrigated farming and processing project in Northern Ghana presenting fertile soils, year-round water resources and access to attractive markets. 

The project will be developed under a "nucleus-ingrower" model, which pairs:

- one or more leading Commercial Farming Company(ies) (CFCs) operating as "nucleus" farms of up to 3,780 ha (net irrigated area); and

- 1,950 ha (1,500 ha irrigated) of "ingrower" areas reserved for small-scale and emergent farmers. 

Having invested more than $2m over a three year period to de-risk the project and reach a pre-contstruction stage, AgDevCo is now seeking one or several commercial partners (CFCs) to co-develop the project and operate the 3,780 ha nucleus farm. 

The total anticipated commercial investment required is £32m for the 3,780 ha area. The project is designed with the option of rollout in four independent phases. Phase 1 requires an anticipated commercial investment of $12.5m for a commercial farming area of 1,410 ha. 

In parallel, AgDevCo is raising concessional capital to finance the ingrower area and shared infrastructure (bulk water supply infrastructure, roads, power reticulation). 

2. Bidding process

Suitable commercial parties will have proven expertise and experience of commercial farming in Africa and interest in working with small-scale and emergent ingrower farmers. 

The bidding process will be as follows:

1. Interested parties will be invited to sign a Non-Disclosure Agreement with AgDevCo and will be provided with an Information Memorandum (Info Memo) with details on:

  • Ghanaian market
  • Project structure and technical overview
  • Investment proposal
  • Key financial data 

2. Interested parties will then be invited to send a preliminary Expression of Interest (EOI) including

  • Information required for a full Know Your Customer (KYC and Anti Money Laundering (AML) checks
  • Incorporation documents of company and parent companies
  • Description of experience
  • Indication of financial capability
  • Details of interest in project

3. Shortlisted potential partners will be provided access to a data room to include: 

  • Draft term sheet
  • Full financial model
  • All reports and back up information: land lease, technical, social and environmental studies

4. Shortlisted partners will then be invited to submit detailed EOIs to include:

  • Full financial proposal
  • Marked up term sheet
  • Proposed management team
  • Proof of available funds

5. AgDevCo will finalize the legal structuring with selected partners before financial close. 

3. Contact detals / Project team

Contact

babator@agdevco.com

Project team

Yasser Toor, West Africa Director                                                                  Erik Wiersma, Commercial Agriculture Advisor

Tom Phillips, Ghana Country Manager                                                            Ismail Sentissi, Project Developer

 

AgDevCo Ghana Ltd.

235A Soula Loop, Labone, Accra, Ghana

PO Box CT 8889, Cantonments, Accra, Ghana

+233 (0) 302 968 980 / 763 916

 

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