The preliminary commitment is the first that Exim Bank has approved under a recently signed memorandum of understanding with Senegal’s Ministry of Economy, Planning and Cooperation.
If the transaction reaches final board approval, EXIM would provide funding for an estimated $100 million rural electrification projects of the Senegal National Electricity Agency (Senelac).
According to local media, the Senegalese Ministry of Economy would provide a sovereign guarantee of the financing.
These funds are intended to support the activities of Weldy-Lamont LLC in Senegal. The company is specialized in the supply of renewable energy equipment.
By launching the Emerging Senegalese Plan (PSE) in 2014, the authorities undertook to address the energy crisis caused by the wide gap between power supply and demand, to ensure the country’s economic development.
Over the past five years, major projects have been initiated to increase power generation capacity. Some have already been completed and others are being implemented.