Pan-African infrastructure investment platform Africa50 has teamed up with Oragroup, a subsidiary of Orabank, to provide a bridging loan of XOF 50 billion (approximately €75 million) to allow the construction of the Malicounda power station scheduled to be completed at the end of 2021.
Construction of the €150-million project began in October 2019. Malicounda will be a 120 MW combined cycle power plant situated 85 km from Dakar. It is owned by Melec Powergen, Africa50, and Senegal’s national electricity company, Senelec.
Funds for the project were realised from Orabank Senegal, Orabank Benin, Orabank Burkina and other partner banks of the Orabank Group within The West African Monetary and Economic Union.
Africa50, which holds major financial stake in the project, is joined by the African Development Bank, which serves as the lead senior debt arranger. There are also plans by Africa50 and its partners to raise long-term senior debt for the Malicounda project.
The project — which plans to make use of more environmentally friendly technologies than older plants — would help Senegal’s transition towards a cleaner, more accessible and cheaper electricity, as well as providing job opportunities.