ContourGlobal to build, own and operate power facility in Senegal

ContourGlobal, an international power generation company, announced on Monday that it has signed an agreement with the Senegalese national utility, Société Nationale d’Electricité du Sénégal (SENELEC), to rehabilitate an existing brownfield site and construct a new 53 MW thermal facility under a 20-year Power Purchase Agreement (PPA). The new facility is designed to burn heavy fuel oil and natural gas and when completed in 2015 will be the lowest cost liquid fuel and natural gas-fired power plant in Senegal.

ContourGlobal will invest €85 million to build, own and operate the facility.

The agreement was signed at the Embassy of the Republic of Senegal in Washington D.C. at the start of the inaugural US Africa Leaders Summit in the presence of the Minister of Foreign Affairs of the Republic of Senegal, Mr. Mankeur Ndiaye, and Mr. Joseph C. Brandt, President & Chief Executive Officer of ContourGlobal. The project, located on the outskirts of the capital city Dakar, and called ContourGlobal Cap des Biches, will be constructed on an existing power plant site acquired by ContourGlobal in May 2013. ContourGlobal will install Wartsila 18V46 high efficiency engines, a technology that has been used by ContourGlobal in Togo and Rwanda. The engines will be coupled with a steam turbine technology known as “flexi-cycle” to increase the generation capacity, thereby further reducing the cost of electricity.

Mr. Joseph C. Brandt, President & Chief Executive Officer of ContourGlobal, said:

"We are excited to have signed the addition of much needed new electricity generation to the growing Senegalese economy on the eve of the historic US-Africa Leaders Summit. By utilizing the infrastructure at the existing site, we are able to provide SENELEC with the lowest cost electricity in their engine-based generation portfolio, replacing expensive emergency power rental equipment. By designing the project with Wartsila so that it can quickly be converted to natural gas, we are working to fulfill the promise made by President Macky Sall to diversify the Senegalese power infrastructure away from liquid fuels.”

Mr. Ndiaye commented:

“The Power Purchase Agreement for a 53 MW power plant using Heavy Fuel Oil (HFO) contributes to the success of the strategic vision of President Macky Sall set out in his “Plan Senegal Emergent” (PSE). This investment, of more than $100 million, will help to reinforce the production capacity of SENELEC and will allow us to satisfy the expectation of the population.”