Kounoune I IPP

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In 2005 Kounoune Power S.A. began development on a 67.5 MW heavy fuel diesel plant at Kounoune, near Dakar. The plant was to sell electricity to the Societe Nationale d’Electricite du Senegal (SENELEC, the state-owned utility) under a 15-year power purchase agreement signed in March 2005. The project would include construction of the plant, a fuel supply pipeline connecting the plant to the fuel source and a sub-station linking the plant to SENELEC transmission grid. The Kounoune project was to be the second private power plant in Senegal, after GTi Dakar (1997). Kounoune Power is a joint venture between Matelec S.A.L. (the electrical equipment division of Lebanon’s Doumet Group) and MHI Equipment Europe B.V. (a fully owned subsidiary of Mitsubishi Heavy Industries Ltd. of Japan). The project reached financial closure in December 2005 with funding from the IFC. The total project cost was estimated at approximately 55 million euros (US$ 46.6 million). The project received financing from many multilateral agencies including the International Finance Corporation, Société de Promotion et de Participation pour la Coopération Économique, Banque Ouest Africaine de Développement, the African Development Bank, and Compagnie Bancaire de l’Afrique Occidentale. The project also received a partial risk guarantee from the World Bank’s International Development Association. http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=6A3B3B5A28E1D2F18525700600733439 Different reports on investment amount: 61 million euros (IFC) http://ifcext.ifc.org/ifcext/spiwebsite1.nsf/ProjectDisplay/SPI22410 60 million euros (AfDB) http://www.afdb.org/en/news-and-events/article/senegal-kounoune-power-station-9665/ 95 million dollar http://www.globalclearinghouse.org/infradev/assets%5C10/documents/Senegal%20-%20Kounoune%20I_PAD%20-%20WB%20(2005).pdf Response: from the sponsor website, the cost is EUR55 million, Maletec Matelec share of EUR30.5 million and Mitsubishi share of EUR24.5 million http://www.matelecgroup.com/menuImages/2--Fiche%20kounoune%20power%20V3_150.pdf EUR55 million = USD46.6 million (Dec 2012) USD1=EUR1.18 (Dec 2005)