World Bank Group Finances 96 MW Tobene Power Plant in Senegal
In early August, the World Bank Group signed agreements for the Tobene Independent Power Project in Taiba Ndiaye in Senegal. These included a €93.4 million financing agreement arranged by IFC and a $40 million equivalent IDA partial risk guarantee project agreement. The project will provide power to over one and half million residents in Senegal.
Located 90 kilometers north-east of Dakar, the 96 megawatt independent power producer (IPP) has been structured on a build, own and operate basis to provide much needed electricity for consumers and businesses in Senegal. The early stage development of the €123 million heavy fuel oil-fired plant was led by IFC InfraVentures, IFC’s infrastructure project development fund.
Melec PowerGen, an affiliated company of the Matelec Group of Lebanon, will own at least 90 percent of the plant. IFC will retain a 10 percent stake in the project upon completion of a proposed equity investment. Senelec, the Senegalese national power utility, has signed a 20 year power purchase agreement for the electricity to be generated.
Mr Sami Soughayar, CEO of Matelec, said:
“The World Bank Group has laid the groundwork for us to make a long term investment in Senegal’s power sector. We look forward to being a part of the country’s continued economic growth as we work with our partners to complete the Tobene project.”
Makhtar Diop, Vice President for the World Bank’s Africa Region, said:
“This financing is part of a suite of World Bank Group instruments supporting generation, transmission, distribution, and rural energy access in Senegal, which is anchored in a strong sector dialogue with the Senegalese Government. We are also assisting Senegal to integrate in the West African Power Pool so it can access other affordable energy sources, including gas from Mauritania and hydropower from Guinea.”
Jean Philippe Prosper, IFC Vice President for Sub-Saharan Africa, Latin America and the Caribbean, said:
“We are pleased to once again partner with Melec PowerGen, a longstanding IFC client, to address Senegal’s significant power constraints. By drawing on IFC InfraVentures’ development expertise, IFC’s financing and mobilization capability and the World Bank’s partial risk guarantee program we are greatly enhancing our ability to support key infrastructure projects, such as Tobene, across Africa.”
The IFC-arranged financing includes a €28.5 million loan for IFC’s account, a €25 million syndicated loan from the UK-based Emerging Africa Infrastructure Fund (EAIF), a €25 million syndicated loan from the Netherlands Development Finance Company (FMO) and a €14.9 million equivalent parallel CFA loan from the West African Development Bank (BOAD).
