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Tobene Power, SA

$EUR78 million
Summary of Proposed Guarantee

Project Description

The Tobene Power Plant is a Combined cycle dual fuel plant with a total capacity of 115MW (70MW in Phase I and 45MW in Phase II). Commercial Operation Date (COD) for Phase I was reached in March 2016, and for Phase II in December 2016. The Project is located in Taiba Ndiaye, about 90km north east of Dakar. The combined cycle plant consists of 6 MAN reciprocating diesel 18V48/60 engines (running on HFO with a provision for future conversion to operate natural gas) and a steam turbine generator (adding about 7MW and allowing for higher fuel efficiency). The Tobene Project was developed as an independent power producer on a Build, Own, Operate basis by MPG/Matelec. It sells power to Société nationale d’électricité du Sénégal ("Senelec") under a 20-year power purchase agreement.

The Guarantee Holder has applied for MIGA guarantees covering up to €78 million of equity/quasi-equity/shareholder loans (EQS) investments into the project. The guarantees will have a term of up to 15 years, providing coverage against the risk of expropriation, transfer restriction, breach of contract, and war and civil disturbance.

Environmental Categorization

The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.

Development Impact

The primary development impact of the project will be support for Senegal’s electricity sector by facilitating an equity buy-out. Access to electricity is a key constraint to economic and private sector development, even though electricity access in Senegal is much higher than the average for the Sub-Saharan region. Although there are currently no plans for expanding Tobene, the plant’s ongoing operation will continue to support local employment, tax revenues and purchase of local goods and services. As a baseload plant, Tobene is essential for maintaining power supply sustainability in Senegal. Tobene has been designed for conversion to natural gas, potentially allowing the plant to utilize Senegal’s natural gas when it comes online in the future. MIGA’s support of Tobene is aligned with the agency’s focus on countries eligible for financial support from the International Development Association, as outlined in its 2018-2020 strategy.