In Senegal, the International Finance Corporation (IFC), a subsidiary of the World Bank Group and the Overseas Private Investment Corporation (OPIC) have announced financing agreement for the 53MW Cap Des Biches power plant.
The project is being developed by US-based power project developer, Contour Global, which will design, construct and operation the heavy fuel, oil fired thermal power plant.
In a statement, the IFC will be “providing a cross currency swap” while OPIC will be provide $91 million for the project, which is expected to be complete by May 2016.
“Contour Global and OPIC have a strong history of partnership underpinned by results, and Cap des Biches is a milestone project both for OPIC and our support to President Obama’s Power Africa initiative,” OPIC’s President and CEO, Elizabeth Littlefield, said in the release.
“This is the first power sector transaction of any size for OPIC in Senegal and I look forward to its transformative effect on Senegal’s infrastructure and economic growth. It’s also an important step for OPIC’s energy presence in West Africa, an exciting region with tremendous development opportunity,” she added.
The IFC Director for Infrastructure in Africa, Bertrand de la Borde, continues: “Cap des Biches is an important project for Senegal’s power sector that will have a strong impact in providing much needed power to help sustain the country’s economic growth and implement Senegal’s Emerging Plan.”
It is estimated that Senegal needs to generate an additional 130MW in order to meet current demand.
Once operational, the Cap des Biches project will play a significant role in helping to meet the 5-8% annual growth in demand for electricity, the IFC said.
SENELEC, Senegal’s national electricity utility, will be the off-taker for the power generated by the project under a 20-year Power Purchase Agreement.