(MENAFN- Qatar News Agency) The Republic of Senegal and Senelec (Societe National d'Electricite du Senegal) signed a guarantee today for the Tobene Power Project with the World Bank Group's International Development Association (IDA), Tobene Power S.A., Citibank and BNP Paribas.
Tobene Power S.A is an independent power producer (IPP) set up to develop, own, build and operate a 96 megawatt high efficiency heavy fuel oil power plant in Taiba Ndiaye, Dakar.
The power plant has the capacity to be converted to operate on natural gas, and will provide affordable and reliable power to Senelec, in turn supporting Senegal's electricity demand growth.
The World Bank's IDA guarantee will provide a mechanism to enhance credit for Senelec's payments to the project company. It will also be instrumental in attracting private capital funding to the Tobene Power Project. Currently under construction, the power plant is expected to begin commercial operation in early 2016.
The IDA guarantee complements the International Finance Corporation's (IFC) 90 million euro debt financing package to Tobene Power S.A. The IFC-arranged financing includes a 28.5 million euro loan for IFC's account, completed by syndicated loans from the UK-based Emerging Africa Infrastructure Fund (EAIF), the Netherlands Development Finance Company (FMO) and the West African Development Bank (BOAD).
The project is part of several World Bank Group initiatives in the sector, such as the Energy Sector Support Project, the Sustainable and Participatory Energy Management (PROGEDE), and the Sustainable Energy for All initiative.
The World Bank Group is also engaged with the Government of Senegal and other technical and financial partners in the development of an independent solar energy production project with a capacity of 50 to 100 MW, a component of the Scaling Solar program.
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