OPIC and the IFC signed financing agreements with ContourGlobal, the Government of Senegal and Senegal’s national electricity utility to support the development and construction of the 53MW Cap des Biches power plant and 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 back the project.
Cap des Biches is a modern, heavy fuel, oil-fired thermal power plant which uses combined cycle technology to lower the cost and increase the efficiency of power generation and transmission. It is estimated that Senegal must generate an additional 130MW 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 client for the power generated.
“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,” said Elizabeth Littlefield, OPIC’s President & CEO. “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.”
ContourGlobal, the project developer, is a US-based power projects developer headquartered in New York. Construction of the project has already started and is expected to be completed in May 2016.