Power to the people F R I C A


A


Senegal


combined cycle oil-fired facility was com- pleted in October 2000. GE is the majority shareholder (60%) and operator of the plant,withEdisonholdinga 30%stake and the World Bank’s International Finance Corporation (IFC) the remaining 10%. The IFC and Credit Commercial de France (now HSBC) were the project finance lenders. Senelec is the sole buyer of output under a 15-year power purchase agreement. The most recent project to be commis-


Senegal has no indigenous energy sources, except for a small amount of natural gas production in Gadiaga, located south of the capital city Dakar. As a result, the country has to rely on oil imports to meet its ever increasing demand for electricity – which averages between 9% and 10% growth year on year. Demand is forecast to continue to increase, spurred on by Senegal’s rising GDP and government plans to expand the electricity network nationwide. Gordon Feller reports.


S


enegal’sGDP rose to4%in2010 andis forecast toreach4.4%this year,driven by a recovery in the industrial sector as


aresultof increasedphosphateandcement production linked to continued strong con- struction activity in the country. The gov- ernment’s large infrastructure projects – new roads, a new airport, the ‘Port of the Future’ – will contribute to sustained growth in the construction sector. Plans are also underway to expand Senegal’s elec- tricity grid in order to provide power to the rural populace. In 2007 just 16% of rural areas were connected to the grid. This is forecast to reach 50%by 2012, and 62% by 2022, under the guidance of the


Senegalese Agency for Rural Electrification (ASER). Senelec, the state-owned utility, has an


installed capacity of 700MWand accounts for 72.5% of electricity production in Senegal. Private sector independent power producers (IPPs) currently have a combined capacity of 113.5MW. IPPs first entered this sector after Senegal’s 1998 electricity market reform called for a public/private partnership in the industry.Meanwhile, the transmission and distribution network remain a Senelecmonopoly. General Electricwas the first IPP to build


apower stationunder Senegal’sbuild-own- operate (BOO) programme. The 56-MW


Senegal’s capital city Dakar regularly suffers from power blackouts


sioned was the Kounoune power plant, inaugurated in January 2008 and boosting Senegal’s generating capacity to the cur- rent 700 MW. The project, undertaken by an IPP comprising Mitsubishi and Matelec (a division of the Doumet Group from Lebanon), was financed by the IFC, with a partial guarantee fromtheWorld Bank.


Power programme Senegal suffers from power blackouts, in particular at its capital cityDakar. Inabidto tackle this problem, the government has embarked on a major investment pro- gramme in the power sector for the period 2008–2015 at an estimated cost of $1.16bn. Some $615.5mnwill be invested in the con- struction of newpower stations, $217.8mn on improving the transmission network; $171.1mnondistributionand$151.1mnon civil engineeringworks. Among the newpower projects that are


planned is a 70-MWdiesel plant in Tobene that is due to be commissioned this year. TheWorld Bank’s IFC is the project finance lender, along with other financialmultilat- eral institutions (including the Islamic Bank of Development) and an unnamed private operator.Anadditional60-MWplant isalso planned at Kounoune, using the same financing package as Kounoune 1 – an IDA (International Development Association) partial riskguaranteecombinedwithanIFC project financing. Meanwhile, there are plans for the rehabilitation and extension of regional power plants in Ziguinchor and Tambacounda.


continued on p44 ...


JANUARY 2011


FEBRUARY 2011


MARCH 2011


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Building large-scale solar ‘parks’ Learning to reduce energy use at schools The EI technical programme for 2011


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