Washington, D.C., August 6, 2014 -- The World Bank Group today signed an agreement for the Tobene Independent Power Project in Taiba Ndiaye in Senegal for a 93.4 million euro financing agreement arranged by IFC. 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 euro 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.
“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,” said Mr Sami Soughayar, CEO of Matelec.
“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”, said Makhtar Diop, Vice President for the World Bank’s Africa Region.
“We are pleased to once again partner with Melec PowerGen, a longstanding IFC client, to address Senegal’s significant power constraints,” said Jean Philippe Prosper, IFC Vice President for Sub-Saharan Africa, Latin America and the Caribbean. “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 euro loan for IFC’s account, a 25 million euro syndicated loan from the UK-based Emerging Africa Infrastructure Fund (EAIF), a 25 million euro syndicated loan from the Netherlands Development Finance Company (FMO) and a 14.9 million euro equivalent parallel CFA loan from the West African Development Bank (BOAD). IDA provided a $40 million partial risk guarantee for the Tobene project.
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.ifc.org