OPIC, IFC finance Cap des Biches power plant to boost energy supply in Senegal
November 30, 2015
(OPIC)
Dakar, Senegal — The Overseas Private Investment Corporation, the U.S.
Government's development finance institution, and IFC, a member of the World
Bank Group, last week signed financing agreements for the 53 megawatt Cap des
Biches power plant with project developer ContourGlobal, the Government of
Senegal, and Senegal’s national electricity utility to help address growing
demand for electricity in the country.
Under an innovative financing model, IFC is providing a cross currency swap
while OPIC will lend up to $91 million to the project. Cap des Biches is a
modern, heavy fuel, oil fired thermal power plant that guarantees high
efficiency levels and lower cost of power thanks to its combined cycle
technology.
The project is being designed, built and operated by ContourGlobal, a US-based
leading power projects developer.
“ContourGlobal 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,” said Elizabeth Littlefield,
OPIC’s President and CEO. “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.”
“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”, said Bertrand
de la Borde, IFC Director for Infrastructure in Africa. “This is the fourth
power plant that IFC has financed in Senegal, demonstrating our long-term
commitment to the energy sector.”
Electricity is a development imperative and a prerequisite for sustained
economic growth. It is estimated that Senegal must generate an additional 130
megawatts to meet its current needs. Once operational, the Cap des Biches
project will play a significant role in helping to meet the 5-8 percent annual
growth in demand for electricity. SENELEC, Senegal’s national electricity
utility, will be the off-taker for the power generated by the project.
The Cap des Biches project is OPIC’s first financing of a utility-scale power
project in Senegal, and helps fulfill the U.S. development finance institution’s
key role to carry out President Obama’s Power Africa initiative, which aims to
add 60 million new electricity connections and 30,000 new megawatts in
Sub-Saharan Africa. Earlier this year, OPIC surpassed its initial $1.5 billion
pledge to private sector-led power projects under Power Africa, a total that
included Cap des Biches. OPIC and ContourGlobal have previously partnered for
important African power developments in Togo and Nigeria.
Construction of the project has already started and is expected to be completed
in May 2016.
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