Dakar, Senegal, November 26, 2015—IFC,
a member of the World Bank Group, and the Overseas Private Investment Corporation
today 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
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.
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,
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
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.