Dakar, Senegal, 22 February 2023 – African Export-Import Bank (Afreximbank) and Senegalese power company Ndar Energies S.A. have signed a Framework Agreement to finance the development of a Euro 430-million 250-Mega Watt combined cycle gas turbine power plant and gas pipeline in Saint Louis, Senegal.
Under the terms of the Framework Agreement, signed by Mr. Rene Awambeng, Afreximbank’s Director & Global Head, Client Relations, and Mr. Baidy Agne, Chairman, Ndar Energies S.A., on the margins of the 2nd Dakar Finance Summit in Dakar, Afreximbank and Ndar Energies will finance the development, design, construction and operation of the power plant and pipeline.
The Framework Agreement also appoints Afreximbank as the Lead Project Developer and Mandated Lead Arranger to take the lead in the provision of project preparatory services and in syndicating the debt raise.
Through the investment, Afreximbank is supporting power generation diversification, enhancing system resilience and contributing to lower electricity prices with a lower carbon footprint than the prevailing alternatives. The project, which possesses strong climate finance credentials, is in line with Afreximbank’s strategy to support the deployment of just energy transition solutions across Africa.
Wholly owned by indigenous Senegalese entrepreneurs, the project supports the diversification of Senegal’s energy matrix and an increase in access to reliable and affordable power, a critical component of the country’s long-term competitiveness and sustainable economic growth.
By providing baseload power generation, it will also help displace the use of prohibitively priced heavy fuel oil and diesel-fired generation.
Mrs. Kanayo Awani, Executive Vice President, Intra-African Trade Bank at Afreximbank, said:
“Afreximbank is once again proud to support the ambition of indigenous entrepreneurs to develop landmark trade-enabling infrastructure projects that will boost industrialization and export development activities in our member countries. I am particularly pleased with the key role the Government of Senegal is playing in establishing an environment that is enabling local entrepreneurs to invest in critical sectors of the economy.”
Mr. Baidy Agne – Chairman, Ndar Energies S.A., said:
“Today is a remarkable day for Ndar Energies S.A. as we celebrate the signing of this agreement that demonstrates Afreximbank’s commitment towards the project. We are building and structuring a transformational project that embraces modern technology at scale that combines high reliability, low cost, and carbon efficiency. Afreximbank’s support will help strengthen Ndar Energies’ capabilities and rapidly bring this project to the market. This project represents a significant part of the country’s national electricity plan which envisions to position Senegal as an energy hub for West Africa.”
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African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Afreximbank is working with the AU and the AfCFTA Secretariat to develop an Adjustment Facility to support countries in effectively participating in the AfCFTA. At the end of 2021, the Bank’s total assets and guarantees stood at about US$25 billion, and its shareholder funds amounted to US$4 billion. Afreximbank disbursed more than US$51 billion between 2016 and 2021. The Bank has ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.afreximbank.com.
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