Kounoune Power, SA (MIGA-d5c2b9c9d4)

Countries
  • Senegal
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 1, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Azura Power Holdings Limited and/or any of its subsidiaries
The holder of the loan, grant, or other investment.
Sectors
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
Not Disclosed
When disclosed, the bank did not provide this value. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Jan 11, 2019

Disclosed by Bank Nov 8, 2018


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Project Description

Actis Energy and Amaya Capital, through Azura Power Holding Limited ("Azura Power" or "the Guarantee Holder") plan to acquire three operating power assets, specifically: Tobene and Kounoune Plants in Senegal; and Thika Power Plant in Kenya. All three assets are currently owned by Melec Powergen Inc ("MPG"), which was established in 2005 as a power generation platform in sub-Sahara Africa. Separate ESRS' are being prepared for each asset. The "Project" or "Power Plant" considered in this ESRS comprises Kounoune Power Plant, an existing 67.5MW heavy fuel oil ("HFO") fired diesel power generation plant. The Power Plant is located within Kounoune village, near the City of Rufisque, to the north of the Dakar-Diamniadio highway and approximately 25 km southeast of Dakar.

The Project was developed by a consortium consisting of MHI Equipment Europe B.V. (Netherlands) ("MEE"), and of Matelec S.A.L (Lebanon) under a Build, Own, Operate contract. MPG partnered with Mitsubishi Heavy Industries (MHI) Equipment Europe BV, a fully owned subsidiary of Mitsubishi Heavy Industries of Japan, through MHI Equipment and Services Africa ("MESA"), to supply the engines, act as engineering, procurement and construction ("EPC") and operations and maintenance ("O&M") contractor. The commercial operations date was reached in January 2008. The Project sells power to the national electricity company of Senegal (the Societe Nationale d'electricite du Senegal or Senelec) under a 15-year power purchase agreement (PPA) that was signed in 2005. A Senelec substation is located on the adjacent land to the north.

The Power Plant comprises of nine diesel reciprocating engines, four heat recovery boilers, nine closed air coolers, a short connection to the existing transmission lines, two HFO tanks, and a 6.1km HFO pipeline from Cap des Biches to the Project site. The pipeline is owned and operated by Senelec and is considered an associated facility[1].

The Project occupies an area of 3 hectares (ha). The land acquisition process was managed by Senelec in 2004, as part of the acquisition of a total area of 14 ha that was earmarked for the development of power infrastructure.

The Project was financed by MPG with 30% equity and 70% long term loans arranged by the International Finance Corporation (IFC). The IFC loan was approved in May 2005. Other Development Finance Institutions (DFIs) involved in the Project include the West African Development Bank (BOAD), Proparco and the African Development Bank (AfBD). Azura Power is an experienced developer, financier, acquirer and operator of IPPs currently operating base-load power plants across Africa, and as well as renewable power projects in Nigeria.

 

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Contact Information

No contact information provided at the time of disclosure

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/