Africa’s power challenges continue to unveil vast opportunities for international and local investment institutions, including the World Bank Group. The global lender last week signed agreements to finance the Tobene Independent Power Project in Taiba Ndiaye, Senegal.
The arrangements include a 93.4 million euro($124 million), facilitated by the International Finance Corporation (IFC) – and a $40 million equivalent partial risk guarantee project agreement provided by the International Development Association (IDA).
The deal has been structured on a build, own and operate basis. Melec PowerGen, an affiliate of the Matelec Group of Lebanon, will own about 90 percent of the plant while the IFC will get a 10 percent stake in the project once a proposed equity investment is completed. The Senegalese national power utility, Senelec, is the next major stakeholder and has signed a 20 year power purchase agreement for generating electricity.
Mr Sami Souhhayar, Matelec’s CEO, made the following comments concerning the project: “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.”
The World Bank Vice President for the African Region, Makhtar Diop, remarked; “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.”
Five institutions constitute the World Bank Group which plays a major role in the global effort to end extreme poverty and stimulate shared prosperity. The International Finance Corporation and the International Development Association are part of this group. Other members include the International Bank for Reconstruction and Development (IBRD), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).
This project will provide power to over one and a half million residents in Senegal.
By Emmanuel Iruobe
