Narrative
Full Description
Project narrative
On March 10, 2010, the Chinese Government and the Government of Senegal signed a preferential loan framework agreement for Phase 2 of the 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project. Then, on July 14, 2011, the Export-Import Bank of China and Societe Nationale d'Electricite du Senegal (SENELEC) — Senegal’s state-owned electricity company — signed an RMB 531 million government concessional loan (GCL) agreement for Phase 2 of the 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project. This loan carries the following terms: a 20-year maturity, a 7 year grace period, and a 2% interest rate. The purpose of this project was to stabilize the supply of electricity for 300,000 households and connect 150,000 additional households to the electricity network. It involved the construction of 474 transformer stations, the laying of 354 km of underground cable, the construction of a low-voltage (30kv) network with the support of geographic information systems, and the installation of 100,000 electricity consumption meters and 17,000 boxes and management systems (100,000 Compteurs prépaiement et 17,000 Coffrets et du Système de gestion) in the suburbs of Dakar. Prior to the implementation of this project, Senegalese consumers paid their electricity bills every two months based on past electricity usage. However, the system was open to abuse and theft. This project sought to introduce state-of-the-art software to combat electricity theft. China National Machinery and Equipment Import and Export Corporation (CMEC) was the contractor responsible for implementation. Construction began in 2012 and the project was completed and accepted by the Government of Senegal on April 29, 2016. The first phase of this project was funded by China Eximbank and it is captured via Record ID#138. China Eximbank also provided a third loan for this project, which is captured via Record ID#53177.
Staff comments
1. This project is also known as Phase 2 of Dakar City Power Transmission and Transformation Project or Extension and Rehabilitation of Distribution Networks in the Regions Project. The French project title is Projet de réhabilitation et d'extension du réseau de distribution du courant électrique de Dakar or 2ème phase du Projet communément appelé «Boucle de Dakar» or Extension et Réhabilitation de Réseaux de Distribution dans les Régions. 2. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not report the terms of the loan (20 year maturity, 7 year grace period, 2% interest rate) that supported this project. AidData relies upon the borrowing terms that are reported by the borrower: Societe Nationale d'Electricite du Senegal (SENELEC). 3. In January 2011, a MOFCOM press release describes that an MOFCOM official signed an exchange of letters regarding the extension of grace period for a GCL with the government of Senegal. It is unlikely that the exchange of letters is related to this project, because the loan agreement was signed in July 2011, six months after the supposed extension. This issue warrants further discussion. See http://senegal.mofcom.gov.cn/article/jmxw/201101/20110107366802.shtml for the press release.