Senegalese power company Ndar Energies has teamed up with African Export-Import Bank (Afreximbank) to develop a 250MW combined cycle gas turbine power plant and gas pipeline in Saint Louis, Senegal.

Afreximbank director and client relations global head Rene Awambeng has signed the framework agreement with Ndar Energies chairman Baidy Agne.

Under the terms of the agreement, both parties will procure €430m financing for the development, design, construction and operation of the power plant and pipeline.

In addition, the bank is appointed as the lead project developer and mandated lead arranger to lead the project preparatory services and syndicating the debt raise.

Afreximbank intra-African trade bank executive vice president Kanayo Awani said: “Afreximbank is once again proud to support the ambition of indigenous entrepreneurs to develop landmark trade-enabling infrastructure projects that will boost industrialisation and export development activities in our member countries.

“I am particularly pleased with the key role the Government of Senegal is playing in establishing an environment that is enabling local entrepreneurs to invest in critical sectors of the economy.”

Afreximbank will support power generation diversification, enhance system resilience and contribute to lower electricity prices with a low-carbon footprint.

Fully owned by native Senegalese entrepreneurs, the project supports the diversification of Senegal’s energy matrix and enhances access to reliable and affordable power.

It is said to possess strong climate finance credentials and complements the bank’s strategy to support the deployment of energy transition solutions across Africa.

The project provides baseload power generation to help reduce the use of expensive heavy fuel oil and diesel-fired generation in Senegal.

Ndar Energies chairman Baidy Agne said: “Today is a remarkable day for Ndar Energies S.A. as we celebrate the signing of this agreement that demonstrates Afreximbank’s commitment towards the project.

“We are building and structuring a transformational project that embraces modern technology at scale that combines high reliability, low cost, and carbon efficiency. Afreximbank’s support will help strengthen Ndar Energies’ capabilities and rapidly bring this project to the market.

“This project represents a significant part of the country’s national electricity plan which envisions to position Senegal as an energy hub for West Africa.”