On June 29, 2018, MIGA agreed to issue up to €128,127,736.98 (equivalent to US$149.80 million) in guarantees covering equity and quasi-equity investments by Lekela Power Holdings (Senegal) Limited of the Republic of Mauritius (Lekela) in the Parc Eolien Taiba N’Diaye SA wind farm project in the Republic of Senegal. The guarantees are issued for up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The Project involves the construction, operation, and maintenance of a 158.7 MW wind power farm in Taiba N’Diaye, Senegal, which is 75 km northeast of Dakar and 6 km east of the Atlantic Ocean. The electricity output will be sold to Société Nationale d'Électricité du Sénégal (Senelec) under a 20-year Power Purchase Agreement (PPA). Power will be transmitted via seven 33 kV lines which will connect to 33kV/225kV step-up transformers at the Tobene substation. The Tobene substation is situated less than one km east of the Project site and is owned, operated, and maintained by Senelec which is the sole offtaker of the electricity produced. A 225 kV transmission line runs from the Tobene substation into Dakar, the capital of Senegal. The electricity produced by the Project will be injected into the national grid and sold to Senegalese end-consumers by Senelec.
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability because there are potentially significant adverse impacts related to loss and restoration of livelihood for the people affected by the Project and potential mortality caused by seasonal and other bird bat movements across the Project sites, as well as loss of habitat of high conservation value for vulnerable or endangered avifauna species. Other key risks and impacts include potential pollution of environmental receptors, occupational health and safety risks, and community health and safety risks. The Project has developed a comprehensive set of documents to manage identified risks and impacts and will be required to comply with MIGA’s Performance Standards and World Bank Group’s Environmental, Health, and Safety Guidelines.
The Project will be the first industrial-scale wind project in Senegal. It will contribute directly to the Pan Senegal Emergent 2014 by improving energy security and diversifying the energy mix of Senegal which mainly relies on heavy fuel. The Project will increase the use of renewable energy and is expected to provide approximately 300,000 households with electricity, especially in rural areas. As the largest wind project in Sub-Saharan West Africa, the Project will also have a useful demonstration effect, showcasing the technical, financial, and institutional feasibility of large-scale wind projects in the country and in the region.