Senegal - Sendou Coal Power Project Supplementary Loan

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%.