Completed Development AidData Chinese Aid

China Eximbank provides RMB 531 million government concessional loan for Phase 2 of 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project (Linked to Record ID#138 and #53177)

¥531K RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Senegal
Country	Senegal
Start Date	Jul 14, 2011
End Date	Apr 10, 2030
Duration	6,845 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`53283`

Grant Description

China Eximbank provides RMB 531 million government concessional loan for Phase 2 of 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project On March 10, 2010, the Chinese Government and the Government of Senegal signed a preferential loan framework agreement for Phase 2 of the 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project.

Then, on July 14, 2011, the Export-Import Bank of China and Societe Nationale d'Electricite du Senegal (SENELEC) — Senegal’s state-owned electricity company — signed an RMB 531 million government concessional loan (GCL) agreement for Phase 2 of the 90kV Dakar Electricity Distribution Network Rehabilitation and Extension Project.

📋 Loan / Grant Terms

💰 Loan Amountcarries the following terms: a 20-year maturity

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

The purpose of this project was to stabilize the supply of electricity for 300,000 households and connect 150,000 additional households to the electricity network.

It involved the construction of 474 transformer stations, the laying of 354 km of underground cable, the construction of a low-voltage (30kv) network with the support of geographic information systems, and the installation of 100,000 electricity consumption meters and 17,000 boxes and management systems (100,000 Compteurs prépaiement et 17,000 Coffrets et du Système de gestion) in the suburbs of Dakar.

Prior to the implementation of this project, Senegalese consumers paid their electricity bills every two months based on past electricity usage. However, the system was open to abuse and theft. This project sought to introduce state-of-the-art software to combat electricity theft.

China National Machinery and Equipment Import and Export Corporation (CMEC) was the contractor responsible for implementation. Construction began in 2012 and the project was completed and accepted by the Government of Senegal on April 29, 2016. The first phase of this project was funded by China Eximbank and it is captured via Record ID#138.

China Eximbank also provided a third loan for this project, which is captured via Record ID#53177.

📋 Staff Comments

This project is also known as Phase 2 of Dakar City Power Transmission and Transformation Project or Extension and Rehabilitation of Distribution Networks in the Regions Project. The French project title is Projet de réhabilitation et d'extension du réseau de distribution du courant électrique de Dakar or 2ème phase du Projet communément appelé «Boucle de Dakar» or Extension et Réhabilitation de Réseaux de Distribution dans les Régions.
In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not report the terms of the loan (20-year maturity, 7-year grace period, 2% interest rate) that supported this project. AidData relies upon the borrowing terms that are reported by the borrower: Societe Nationale d'Electricite du Senegal (SENELEC).
In January 2011, a MOFCOM press release describes that an MOFCOM official signed an exchange of letters regarding the extension of grace period for a GCL with the government of Senegal. It is unlikely that the exchange of letters is related to this project, because the loan agreement was signed in July 2011, six months after the supposed extension. This issue warrants further discussion. See http://senegal.mofcom.gov.cn/article/jmxw/201101/20110107366802.shtml for the press release.

📚 Sources & References

Plateforme de Gestion des Financements Extérieurs (PGFE)
Annual Report 2016
Annual Report 2013
Révision des conditions tarifaires de Senelec 2014-2016
Senegal / China cooperation: 32 billion to light Dakar and its suburbs
PROJET EXTENSION RESEAU ELECTRIQUE BOUCLE 98 KW DE DAKAR +FINANCEMENT COMPLEMENTAIRE
Révision des conditions tarifaires de Senelec pour la période 2017-2019
PLAN TAKKAL EXERCICE 2011
SENEGAL-CHINA COOPERATION
SOCIETE NATIONALE D'ELECTRICITE DU SENEGAL «SENELEC» RAPPORT DES COMMISSAIRES AUX COMPTES SUR LES ETATS FINANCIERS ET RAPPORTS SPECIAUX
Le Sénégal est très satisfait du modèle de coopération chinoise
扎根塞内加尔促进中非互利共赢——CMEC在塞内加尔风采录
Sénégal : 35 milliards de FCFA de prêt chinois pour une meilleure distribution de l'électricité à Dakar
Chinese shine a light on Senegal's energy future
Signature d'un Accord-Cadre sino-sénégalais sur le prêt préférentiel par S.E.M. GONG Yuanxing et S.E.M. Karim WADE
Le Soleil Edition du 21 Jan 2011
Karim Wade et la crise énergétique
Rapport Annuel 2014, - Révision des condit ions tarifaires de Senelec 2017 - 2019 – Seconde consultation publique – Page, 1 Document de Seconde consultation publique Révision des conditions tarifaires de Senelec pour la période 2017 - 2019
May 2018 Flat Export of Senegal Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Government of Senegal

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