Washington, D.C., August 6, 2014 --
The World Bank Group today signed agreements for the Tobene Independent
Power Project in Taiba Ndiaye in Senegal. These included a 93.4 million
euro financing agreement arranged by IFC and a $40 million equivalent IDA
partial risk guarantee project agreement. 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
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,