Dakar, Senegal, March 14, 2016--The World
Bank Group, Senelec, the Senegalese national power utility, and Melec PowerGen
today announced the inauguration of the 70 megawatt Tobene independent
power plant, which should provide electricity for 1.5 million people in
Senegal. The plant was officially opened by the President of Senegal, His
Excellency Macky Sall.
IFC, a member of the World Bank Group, and
Melec PowerGen developed the project on a build, own, and operate basis.
Designed to use the latest technology, the heavy fuel-oil plant can be
converted to a gas-fired plant. Melec PowerGen and IFC, who jointly own
the plant, will hold 90 and 10 percent stakes in the plant respectively.
Tobene is located in Taiba Ndiaye, 90 kilometers
north east of Senegal’s capital, Dakar. Early stage development of the
plant was through a joint venture between Melec PowerGen and IFC InfraVentures,
which is IFC’s infrastructure project development fund. Senelec has signed
a 20-year agreement to purchase the electricity to be generated.
Vera Songwe, IFC Regional Director for West
and Central Africa, said, “Tobene, a transformational infrastructure project
that will supply power to about 10 percent of Senegal’s population, is
the result of a fruitful collaboration between the sponsors, and the project’s
private and public sector partners. By the end of the 2016, IFC will have
financed projects that provide almost 40 percent of the energy generated
Louise Cord, World Bank Country Director
for Senegal, said, “Energy is fundamental for development. This project,
one of the first to be jointly implemented by the International Development
Association and IFC, underscores our commitment to help Senegal reach the
development targets set out in the ‘Plan Senegal Emergent’.”
The World Bank Group signed agreements to
finance Tobene, including a 93.4 million euro agreement arranged by IFC
and a $40 million equivalent IDA partial risk guarantee. IFC arranged 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).
Melec PowerGen has developed other energy
projects in Africa, including the Kounoune Power Station in Senegal and
the Thika Power station in Kenya.
“This power station could not have been
built without the personal involvement of people including the President
of Senegal, Mr. Macky Sall, and the Ministers of Energy, past and present,”
said Mr. Sami Soughayar, Chief Executive Officer of the Matelec Group.
“We appreciate the support of our partners, such as IFC and the World
Bank, and other technical and financial organizations that have been engaged
in the project.”
Financing the Tobene power station is part
of the World Bank Group’s wider efforts to support the Government of Senegal
increase access to energy in rural parts of the country. Renewable energy
is also part of this strategy. IFC recently signed an agreement to develop
between 50-200 megawatts of solar energy through the Scaling Solar initiative
to help African countries procure renewable energy quickly and affordably.
About the World Bank Group
The World Bank Group is one of the world's largest sources of funding and
knowledge for developing countries. It comprises five closely associated
institutions: the International Bank for Reconstruction and Development
(IBRD) and the International Development Association (IDA), which together
form the World Bank; the International Finance Corporation (IFC); the Multilateral
Investment Guarantee Agency (MIGA); and the International Centre for Settlement
of Investment Disputes (ICSID). Each institution plays a distinct role
in the mission to fight poverty and improve living standards for people
in the developing world. For more information, please visit www.worldbank.org,