The financing of a Senegalese natural gas power plant has concluded, with a group of international infrastructure investors providing EUR 154 million. The construction of the Malicounda plant has increased the country’s power supply by 8% and lowered generation costs.
International law firms were also involved in the deal, advising participants on all sides.
Casablanca-headquartered infrastructure investor Africa50 led the consortium which developed and financed the plant, including Lebanese project developer MP Energy, on behalf of its parent, Melec PowerGen (MPG), and Senegalese state-owned power company Senelec.
Debt finance came from lead arranger African Development Bank (AfDB), the Arab Bank for Economic Development in Africa (BADEA), the West African Development Bank (BOAD) and the OPEC Fund for International Development (OFID).
There was XOF 50 billion (EUR 76 million) in bridge financing from West African banking group Oragroup.
Africa50 chief executive Alain Ebobissé said in a statement that the financing was part of the company’s “drive to support the continent’s just energy transition”.
MPG chief executive and MP Energy founder Samer Nasr said :“The project was one of the few which persevered in the midst of the pandemic,” while Senelec general manager Papa Mademba Bitèye added that “this is one more brick in the process of mastering the challenge of having reliable, good quality energy for the customer, in sufficient quantity and equitably distributed throughout the country and to all our industries and households”.
Africa-focused law firm Asafo & Co advised the lenders, through Paris-based partners Simon Ratledge and Pascal Agboyibor.
Late last year Asafo & Co advised a North African education company on an Africa 50-related investment, among a range of other deals in the region. The law firm hired a natural resources lawyer to its office in Abidjan in September.
In January 2022, a Senegalese drilling company took on investment to fund its expansion throughout West Africa.
Source : iclg
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