OPIC Announces Commitment to ContourGlobal's Cap Des Biches 33 Megawatt Expansion Project in Senegal
September 21, 2016
(OPIC)
New York, N.Y. — The Overseas Private Investment Corporation (OPIC), the U.S.
Government's development finance institution, today announced their financing
agreement with ContourGlobal for the 33 megawatt expansion project at
ContourGlobal’s Cap des Biches power plant in Senegal. Announced at the
side-lines of the U.S. – Africa Business Forum in New York City, OPIC has
committed an additional $53 million in financing and $23 million in insurance,
in support of the $154 million project that provides efficient and reliable
electricity to the Senegalese grid by adding a total of 85.9 megawatt generation
capacity, a 30 percent increase in overall functioning capacity. Cap des Biches
is a modern, heavy fuel, oil fired thermal power plant that guarantees high
efficiency levels and a lower cost of power thanks to its combined cycle
technology.
“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 L. Littlefield,
OPIC President and CEO. “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.”
“We’re proud to once again be partnering with OPIC and the Government of Senegal
to deliver reliable, cost-effective and much needed power to West Africa,” said
Joseph C. Brandt, ContourGlobal's President and Chief Executive Officer. “The
Cap des Biches project was signed at the first U.S.-Africa Business Forum in
Washington D.C. in 2014. Both the initial project and the expansion were
constructed and placed into operations in record time, highlighting the
effectiveness of OPIC and Power Africa in mobilizing private capital to critical
energy projects and the urgency with which Senegal under President Mackey Sall
is addressing the current electricity deficit. We look forward to continued
successes with OPIC to ensure that other much needed African infrastructure
projects become a reality.
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. The Cap des Biches project plays a
significant role in helping to meet the 5 to 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 was 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. Construction of Phase I was completed in May 2016 and Phase
II will go into operation next month.
Welcome to the Exporting Source
Your one-stop resource for finding help to export to new customers, to learn about government export programs, to join export-promoting trade missions, to sign up for trade conferences and training, and to link to other exporting services. Whether you're an old hand at exporting or just getting started, the Exporting Source provides a place to locate foreign customers, export financing and foreign investment assistance.