Senegal’s Sovereign Fund for Strategic Investments (FONSIS) and partner Senegal Gas Network (SGN) signed a joint development agreement with West African Energy (WAE) and Africa Finance Corporation (AFC) last Thursday, advancing development of a national gas pipeline network.
The agreement brings the two partners on board for the development phase of the pipeline transport infrastructure project currently being carried out by SGN. Jointly established in November 2019 by Senegal’s national oil company Petrosen, national utility Senelec and FONSIS, SGN aims to develop and manage a gas pipeline network that transports Senegalese gas from production sites to end-users.
The signing ceremony was attended by Samuel Amete Sarr, Managing Director of WAE; Samaila Zubairu, AFC President and CEO; Amadou Wadda, AFC Senior Director, Project Development and Technical Solutions; and Papa Demba Diallo, Managing Director of FONSIS.
“This kind of project speeds up the energy transition and creates jobs for young people,” said Zubairu. “AFC is ready to further support SGN with a contribution of $245 million, and to collaborate with FONSIS on other digitalization and infrastructure development projects.”
The scope of the agreement comprises a range of development activities, from front-end engineering design to financial close, as well as the identification of suitable partners and consultants and the securement of funding for the construction of the pipeline network.
“AFC has already built pipelines. Its expertise will make it possible to go quickly and well, in order to deliver the pipeline network on time,” said Sarr. “This will further diversify energy sources and benefit from cleaner and more economical energy to strengthen business competitiveness.”
“This development agreement is a major step in the implementation of Senegal’s gas ecosystem and an illustration of the cooperation that a state can develop through its Sovereign Fund with national and African private partners,” noted Diallo.