SS Senegal

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The project consists of the development, financing, construction, operation and maintenance of two greenfield, solar photovoltaic power plants in Senegal: i) a 44 MWp (35 MWAC) plant in the Kaolack region, 200 kilometers southeast of Dakar (the “Kahone plant”); and ii) a 35 MWp (25 MWAC) plant in the Diourbel region, 190 kilometers east of Dakar (the “Touba plant”). The total project cost is estimated at up to EUR48 million, composed of EUR26 million for the Kahone plant and EUR22 million for the Touba plant. The proposed IFC investment is up to EUR14 million, comprising: i) an A Loan of up to EUR3.5 million and a concessional senior loan of the same amount from IFC acting as Implementing Entity of the Finland-IFC Blended Finance for Climate Program to Kahone Solaire SA; and ii) an A loan of up to EUR3 million and a concessional senior loan of the same amount from IFC acting as Implementing Entity of the Finland-IFC Blended Finance for Climate Program to Kael Solaire SA. Proparco and EIB are expected to provide the balance of the debt through senior loans of up to EUR7 million each to Kahone Solaire SA and up to EUR6 million each to Kael Solaire SA.                                                  The electricity generated by the plants will be sold to Senelec, the state-owned power utility, under separate 25-year Power Purchase Agreements. The Kahone plant will be connected to the national grid via a 300-meter underground transmission line. The Touba plant will be connected to the national grid via a 3-kilometer transmission line. Kahone Solaire SA and Kael Solaire SA (the “Project Companies”) will be granted rights on the land on which the plants will be built through long-term lease agreements.Kahone Solaire SA will implement the Kahone plant and Kael Solaire SA will implement the Touba plant. Both Project Companies are special purpose vehicles incorporated in Senegal. The Project Companies are owned 40% by Engie Global Developments BV, 26.3% by Meridiam Infrastructure Africa Fund FIPS, 13.7% by Meridiam Infrastructure Africa Parallel Fund FIPS and 20% by Fonsis SA.The Sponsors are Engie SA, which has a 99% indirect shareholding in Engie Global Developments BV, and Meridiam SAS, which manages Meridiam Infrastructure Africa Fund FIPS and Meridiam Infrastructure Africa Parallel Fund FIPS. Solairedirect Senegal and Solairedirect Global Operations, a subsidiary of Engie were selected as the Engineering, Procurement and Construction (EPC) contractor for both plants. Engie Senegal, a subsidiary of Engie, will operate and maintain the plants under separate 25-year Operations and Maintenance (O&M) contracts. The construction period of both plants is estimated to last 12 months and is expected to start during the first semester of 2019. The sites for the Kahone plant and Touba plant are in the industrial zone of Kahone and in a rural area near the village of Kael, respectively. The habitat in both locations is a modified savanna, and land use is mostly agricultural. Neither Kahone Solaire nor Kael Solaire will provide any workers’ accommodations as lodging will be available nearby.