Tobene IPP Phase 2

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The proposed project, developed by Melec PowerGen Inc (MPG), a subsidiary of the MATELEC Group, consists of an increase in the installed capacity of the existing Tobene IPP (an HFO fired power plant convertible to gas operations in Senegal) from 96 MW to 115 MW, such that under its Power Purchase Agreement with Senelec it will provide increased a minimum guaranteed capacity, from 70 MW to 105 MW, including 115 MW for the peak demand during the peak season (June to October). The extension will be located within the permitted footprint of 4.5 hectares, requiring no additional land. The power plant is connected to the existing Tobene 225/90kV substation, located about 200m away from the project site. The power plant is located in a scarcely populated area within the rural community of Taïba Ndiaye (about 29,000 inhabitants), regional department of Tivaouane, approximately 90 km north-west of Dakar, Senegal. The closest villages to the plant are Keur Malé (911 inhabitants), Minam (788 inhabitants) and Mbayène (1,300 inhabitants).  Minam, which is the closest village among the three, is located about 900 m from the plant. In 2014, IFC provided financing for the development of the 96 MW plant, and is a ten percent equity holder of Tobene Power S.A. (“Tobene Power”), a Senegalese limited liability company established in 2011 by MPG for the construction and operation of the power station. Tobene Power will sell power under a 20-year Power Purchase Agreement to Senegal’s state-owned electric utility, SENELEC, which will be the sole off-taker. The project is a joint project with the World Bank which has provided a partial risk guarantee. The proposed IFC financing for the extension is (a) an IFC A Loan of up to EUR 8 million, (b) an IFC Equity investment of up to EUR 1 million, (c) a mobilization of third party capital through a combination of B loans and a parallel loan of up to EUR 18 million, and (d) the provision of an interest rate swap. The construction of the initial 96 MW has already concluded and the power plant started operation in March 2016. Tobene Power is operated and maintained by MPG personnel (O&M contractor). Construction of the extension started in March 2016 with plant start-up scheduled for December 2016.  This Environmental and Social Review Summary (ESRS) is an update of the ESRS prepared for the initial 96 MW Tobene power plant project (IFC project # 33841) disclosed on June 11, 2013 (https://disclosures.ifc.org/#/projectDetailESRS/1120).