On Wednesday, Paris-based holding company, with dealings in the water and electricity sectors, Eranove, signed a 30-year concession agreement for a hydroelectric power plant with the government of Mali in West Africa, through its subsidiary Kenié Energie Renouvelable.
The Minister of Economy and Finance, Mamadou Diarra, the Minister of Energy and Water, Mamadou Frankaly Keïta, and the Minister of Investment Promotion and Private Sector, Mamadou Gaoussou Diarra were present at the signing.
Formerly known as Finagestion, the Eranov Group’s managing duo of Vincent Le Guennou, Co-CEO of Emerging Capital Partners and Chairman of the Board of Directors of the Eranove Group, and Marc Albérola, CEO of the Eranove Group, made the trip to Mali to actively participate in the project’s development.
Finance and support
The cost of the hyroelectric power project is estimated at $125 million and according to Eranove, construction is due to commence in 2016 and reach commercial operation in 2020.
The agreement stipulates that the subsidiary, Kenié Energie Renouvelable, will be responsible for the finance, development, construction and operation of the Kenié hydroelectric dam located in Baguinéda on the Niger River.
Member of the World Bank IFC InfraVentures, a global development institution with an exclusive focus on the private sector in developing countries, entered into the agreement after several years of cooperation between Mali’s ministry of energy and Eranov.
Eranove was selected as a strategic partner through a range of preliminary feasibility studies followed by an international call for tenders, undertaken by the collaboration.
State of power in Mali
Eranove said in a company statement that the World Bank estimates Mali’s current installed power capacity of approximately 414MW can only cover half of the potential demand.
The Kenié hydroelectric power facility will have an installed generation capacity of 42MW which will contribute to the West African country’s existing generation.
According to Eranove, initial simulations suggest that the hydroelectric dam could produce around 175GWh, the equivalent to the average annual consumption of 175,000 households.
World Bank data shows that Mali has an estimated potential of 400,000MW of hydroelectric power.
Marc Albérola, CEO of the Eranove Group commented: “Hydroelectric power is one renewable energy source that is in abundant supply in Africa. As part of the regional integration of power transmission networks, hydroelectricity can play a key role in increasing power generation capacity.”
He added: “And we mustn’t forget micro and pico hydroelectricity either. These small hydroelectric facilities can supply power to villages or groups of villages in remote areas far away from interconnected transmission systems.”
Albérola concluded: “Hydroelectricity is a renewable and competitive source of power in terms of production costs, and could even play a role in the financial balancing of power sectors and in meeting demand. This would prove hugely beneficial both for local populations and for regional industrial development.”