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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