China Eximbank provides CFA 2.76 billion loan for 128MW Sambangalou Hydroelectric Power Plant Project

Project narrative

In 2017, China Eximbank and the Government of Senegal signed a loan agreement for the 128MW Sambangalou Hydroelectric Power Plant Project. The exact face value and commitment date of this loan are unknown; however, according to the Government of Senegal’s External Financing Management Platform (la Plateforme de Gestion des Financements Extérieurs du Sénégal, or PGFE), China Eximbank made a loan disbursement for this project worth CFA 2,763,505,191 (or approximately $4,818,666) on December 30, 2017. The total cost of the 128MW Sambangalou Hydroelectric Power Plant Project is $454 million and the Government of Senegal has secured grants and loans worth approximately $129,227,305 (or 74,111,862,534 CFA Francs) for this project from a group of donors and lenders, including ECOWAS, International Development Association (IDA), KFW, European Investment Bank (EIB), China Eximbank, French Development Agency (AFD), and the African Development Bank. The project has two components. The first component involves the construction of an interconnection for the four member countries (Senegal, Guinea Bissau, Guinea Conakry, and the Gambia) in the Senegal River Basin Authority, which is also known as the Organisation pour la mise en valeur du fleuve Sénégal (OMVS). To this end, a 128MW hydroelectric power plant will be installed on the Gambia River and 1,677 km of 225 kV power transmission lines will also be constructed. These transmission lines will cut across Senegal’s Tambacounda, Kaolack and Kolda Regions. The second component project involves the construction of fifteen 225/30kW sub-stations. The overall purpose of the project is to increase the population's access to electricity. China Gezhouba China Group Corporation Limited (CGGC Ltd) is the contractor responsible for implementation. A groundbreaking ceremony was held on February 4, 2017, and the project had achieved a 58% completion rate as of February 2019. The power plant's commercial commissioning was originally scheduled to take place in 2025.