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American Capital to invest €76m in Senegal wind project

CTBR Staff Writer Published 09 June 2015

American Capital Energy & Infrastructure (ACEI) has committed to invest an estimated €76m in a 151.8MW wind project in Senegal.

ACEI's equity investment will cover about one-quarter of the €305m project with the remaining funding expected to come from senior and mezzanine lenders.

The project, which is under development, is situated in Taiba Ndiaye, about 75km northwest of Dakar.

Societe Nationale d'Electricite du Senegal will buy the energy generated from the project under a 20-year power purchase agreement.

The project will help Senegal reduce its dependence on high-cost oil-firmed power generation and meet increasing demand for electricity.

ACEI will work with the project developer Sarreole on funding development costs and project equity.

Chapin International & Co is acting as the project development and financial advisor for the wind farm, which will be built in three phases of 50.8MW.

ACEI CEO and co-founder Paul Hanrahan said: "This project makes a lot of sense for Senegal - both from an economic as well as an environmental standpoint. Senegal's impressive economic growth requires more electric generating capacity to be built as its electrification rate is well above average for the Sub-Saharan region.

"In addition, the Senegalese Government has stated that it is committed to shifting from diesel-based power generation to lower-cost energy sources, such as wind power, to lower the cost of electricity, and has taken steps to further reform its electricity sector in a way that makes it an attractive place to invest."