Africa50 in partnership with Oragroup, a subsidiary of Orabank, are to provide a loan of XOF 50 billion (approximately €75 million) for the construction of the Malicounda power station, Senegal, scheduled to be completed at the end of 2021.
Construction of the 120 MW combined cycle power plant, situated 85 kilometres from Dakar, began in October 2019. The project is estimated at €150-million and it is owned by Melec Powergen, Africa50 and the national electricity company of Senegal, Senelec.
Funding for the project was raised from several financial institutions including Orabank Senegal, Orabank Benin, Orabank Burkina and other partner banks of the Orabank Group within The West African Monetary and Economic Union.
The African Development Bank serves as the lead senior debt arranger. Africa50 is the major financial stakeholder in the project, and alongside its partners, the company also plans to raise long-term senior debt for the Malicounda project.
The project will make use of more environmentally friendly technologies which is intended to support Senegal’s transition towards cleaner, more accessible and cheaper electricity, as well as providing job opportunities.
