Dakar, Senegal, June 14, 2016 --
IFC, a member of the World Bank Group, the Overseas Private Investment
Corporation, Senegal’s national utility, and ContourGlobal, the project
developer, today announced the inauguration of the Cap des Biches power
station, which will ease electricity constraints in Senegal by providing
power to 100,000 people.
Cap des Biches is a modern, dual-fuel power
plant using combined cycle technology to generate high efficiency levels
and lower costs. The project was designed, built and is operated by ContourGlobal,
a leading US power projects developer. His Excellency Macky Sall, President
of Senegal, presided over the launch of the plant.
IFC, the mandated lead arranger, provided
a cross-currency swap for OPIC’s $91 million debt financing under an innovative
financing model for the 53 megawatt power project. Once operational, the
Cap des Biches project will help meet the country’s 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.
Vera Songwe, IFC Director for West and Central
Africa, said, “The Cap des Biches project makes a crucial contribution
to closing the gap in electricity demand, which is a key development constraint
for Senegal. IFC’s innovative, customized approaches are enabling private
sector operators to play a bigger role in delivering high-quality energy
installations to support the economic and social Senegal Emergent strategy.”
Maria Goravanchi, OPIC Director, said, “We
are pleased to inaugurate Cap des Biches. OPIC’s first power sector transaction
in Senegal. It’s a milestone for OPIC’s energy presence in West Africa,
an exciting region with tremendous development opportunity.”
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.
Cap des Biches underscores IFC’s commitment
to Senegal’s power sector. This inauguration follows the launch of the
Tobene power plant, which generates power for 1,5 million Senegalese. IFC
now supports 40 percent of the power generated in Senegal, having financed
four power stations to date. Senegal, which needs to generate additional
135 megawatts of electricity to meet current demand, has joined the World
Bank Group’s Scaling Solar, a program through which it plans to add as
much as 200 megawatts of grid-tied solar power.
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence, to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly $18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org.
OPIC is the U.S. Government’s development finance institution. It mobilizes
private capital to help address critical development challenges and in
doing so, advances U.S. foreign policy and national security priorities.
Because OPIC works with the U.S. private sector, it helps U.S. businesses
gain footholds in emerging markets, catalyzing revenues, jobs and growth
opportunities both at home and abroad. OPIC achieves its mission by providing
investors with financing, political risk insurance, and support for private
equity investment funds, when commercial funding cannot be obtained elsewhere.
Established as an agency of the U.S. Government in 1971, OPIC operates
on a self-sustaining basis at no net cost to American taxpayers.
All OPIC projects adhere to high environmental and social standards and
respect human rights, including worker's rights. By mandating high standards,
OPIC aims to raise the industry and regional standards of the countries
where it funds projects. OPIC services are available for new and expanding
business enterprises in more than 160 countries worldwide.