DJ The Mauritius Commercial Bank Ltd (MCB) provides USD 60m funding to fuel Senegal's national electrification and LNG-use ambitions
The Mauritius Commercial Bank Ltd (MCB)
The Mauritius Commercial Bank Ltd (MCB) provides USD 60m funding to fuel Senegal's national electrification and LNG-use
ambitions
23-Apr-2021 / 11:40 CET/CEST
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The Mauritius Commercial Bank Ltd (MCB) provides USD 60m funding to fuel Senegal's national electrification and LNG-use
ambitions
Port-Louis, 23 April 2021: MCB (www.MCB.mu) is facilitating Senegal's endeavour to improve its national electrification
rate through its USD 60 million participation in the syndicated project finance facility of USD 140 million to
Karpowership. MCB was not only a co-mandated lead arranger but provided the highest loan commitment. The project
finance facility is enabling Karpowership to operate its 235 MW Powership alongside the shores of Dakar since August
2019.
The Powership is contributing to around 15% of Senegal's electricity supply. According to Africa Energy Outlook 2019,
Senegal's electrification rate was 69% in 2018, with a 92% rate in urban areas and only 42% in rural areas. As per the
Government's Plan Sénégal Emergent, a national roadmap adopted back in 2014, the state ambitions to increase its
electrification rate to 100% by 2025, whilst focusing on lowering electricity generation costs by reducing its
dependence on imported liquid fuels and increasing electricity access to rural areas. Providing electricity to places
outside the ambit of urban areas is directly in line with Sustainability Development Goal ("SDG") n° 7 of the United
Nation's charter on Sustainable Development.
The Powership will soon shift from the use of heavy fuel oil to gas. This fuel switch-over will generate material
reduction in Senegal's fuel bill with positive spill-over effect on electricity costs in line with the Plan Sénégal
Emergent. Being the first power generation plant fueled by gas, the Powership is laying the foundation stone of
Senegal's plan to diversify its energy mix. Moreover the use of gas will enable Senegal to cut its carbon emission in
furtherance of SDG n°13 on Climate Change. Senegal ambitions to shift primarily to natural gas for its power
production by 2035, thereby reducing further the national grid's emissions factor.
The Powership's fuel transition is being facilitated by a Floating Storage and Regasification Unit ("FSRU"). Following
successful sea trials, the FSRU has departed Singapore and is expected in Senegal in the coming weeks. The FSRU is a
KARMOL's enterprise - KARMOL is a joint venture between Karpowership and Mitsui O.S.K. Lines, Ltd.
Commenting on the Powership's syndicated project finance facility and on MCB's strong involvement in the project,
Zaahir Sulliman, Head of Specialised Finance, MCB, said: "We are proud to be contributing towards Senegal's universal
electrification goal and its transition from reliance on heavy fuel oil to LNG for its electricity production. This
commitment is in line with Success Beyond Numbers, the Group's corporate sustainability strategy, which aims at
aligning business development, socioeconomic progress and profitability with the notion of sustainability over time".
Mr. Sulliman also stressed out: "MCB is aware of its responsibility in the face of the climatic emergency and committed
by 2022, to stop financing new coal power-plants and discontinue the trade financing of both thermal and metallurgical
coal. Financing Karpowership in Senegal is a first step in the right direction and we are looking forward to increase
our participation in projects that foster energy production whilst promoting both climatic and environment friendliness
in an endeavor to increase living standards".
Distributed by APO Group on behalf of The Mauritius Commercial Bank Ltd (MCB).
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About Mauritius Commercial Bank:
With its 182-year history, The Mauritius Commercial Bank Ltd (MCB) has evolved to an integrated bank and financial
services institution, which offers tailored and innovative solutions to a diversified client base, ranging from retail
to corporate and institutions. MCB's rich history, commitment to customer service and excellence, innovative culture
and high quality employees have underpinned its solid franchise and long track record of sustainable profitability and
financial soundness. MCB has also established a physical presence in 10 countries overseas, via its subsidiaries in
Madagascar, Seychelles and Maldives, its representative offices in Johannesburg, Nairobi, Paris and Dubai, as well as
its associates, Société Générale Moçambique and Banque Française Commerciale Océan Indien (BFCOI - operating in Réunion
Island, Mayotte and Paris).
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1187969 23-Apr-2021
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