September 12 (Renewables Now) - The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, has issued guarantees of EUR 6.9 million (USD 7.6m) covering 60 MW of solar projects in Senegal.
The guarantees, issued alongside loans from the International Finance Corporation (IFC), were provided to French asset manager Meridiam and a unit of utility Engie (EPA:ENGI), the World Bank said on Tuesday. They will back the construction, interconnection, operation and maintenance of two solar parks in the western part of the country, namely the 25-MW Kael plant near Touba and the 35-MW Kahone plant that will be installed near the city of Kahone. The provided protection is for up to 15 years and covers non-commercial risks.
The two photovoltaic (PV) projects are the first two schemes in Senegal being financed under the World Bank’s Scaling Solar programme, which supports grid-tied solar PV power in emerging markets.
Once completed, the solar parks will sell their output to state-owned utility Senelec under a 25-year power purchase agreement (PPA). Engie Senegal will operate and maintain the facilities for 25 years.
(EUR 1.0 = USD 1.101)