Project General Description
The present intervention concerns the Sendou Coal Power Project Supplementary Loan. This involves the development, construction, operation and maintenance of a 125 MW power plant using coal as a base fuel, in accordance with the formula "Build, Own, Operate (BOO)". The plant will be located near the village of Bargny Minam, 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 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 supporting foreign direct investment. It will be implemented over 24 months. Once completed, the project will, on the one hand, diversify the sources of electrical energy in Senegal and, on the other hand, secure the supply of electrical energy so as to meet the growing demand, of approximately 7.89% annually over the 2005-2025 period. It will thus increase SENELEC's production capacity by providing the interconnected grid with around 925 GWh per year for a plant availability of 91.8%.
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.
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.).