Project Summary

Project General Description

This project focuses on the development, construction, operation and maintenance of a 125 MW power plant using coal as a fuel base through a "Build, Own, Operate (BOO)” arrangement. The plant will be located near Bargny Minam village, about 32 km from the city of Dakar. This project is strategically important for Senegal, whose main objective pursued by the Government as part of its energy sector development policy is to improve electricity supply in terms of reliability and cost. The use of coal as a source of energy rather than petroleum (fuel-oil) will enable the country to reduce its energy costs, which will improve competitiveness and sustainability and enhance long-term economic growth, by increasing Senegal’s infrastructure capacity, and by promoting foreign direct investment. It will be implemented over 24 months, including foreign direct investment. Once completed, the project, will on the one hand, diversify electrical energy sources in Senegal, and on the other hand, ensure adequate supply to meet the growing demand at an estimated 7.89% annually for the 2005-2025 period. It will help increase SENELEC’s generation capacity by supplying an additional approximately 925 GWh per annum to the interconnected grid to bring the plant to 91.8% capacity. Thus, the proposed plant will cover about 12% of the annual electric energy consumption projected for 2052, estimated at 8,443 GWh. The first of its kind in Senegal, the coal power plant will also contribute to north-south technology and skill transfer.

Project Objectives

The project aims to develop, build, operate and maintain a coal-fired power plant that will produce at least 925 GWh of electricity annually, equivalent to 40% of current annual production.

Beneficiaries

The main beneficiaries of the project are Senegalese Government, populations, especially young people and women inhabitants in Bargny, Minam and Sendou. The project will reduce the migration of people from rural areas to urban areas by providing local employment opportunities to rural populations by boosting productivity and industrial and agricultural activities in these areas. A positive impact on government revenue is expected thanks to the economic activity of the plant. Finally, private sector involvement in infrastructure financing will release limited government resources for other important areas (education, health, etc.).

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