Below we have listed several key questions and written out a time line.
FMO signed an agreement with Compagnie d’Electricité du Sénégal SA (CES) for EUR 35 million in 2012. A second loan of EUR 5 million was provided in 2015.
It was only when a new controlling shareholder - Quantum Power - entered the project in October 2015, we believed that progress could be made in the construction of the plant and FMO agreed to a second loan for constructions costs.
The current shareholders of CES are Barak Fund Management, (controlling shareholder), Mr. Norland Suzor and Prevoyance Assurance.
This project has turned out to be our one of the most challenging projects in our portfolio. We encountered many problems and should have also done things differently ourselves. We do think the initial objective of the project was a good one. Senegal is in dire need of energy and frequent energy cuts hamper the Senegalese people. A power plant could contribute hugely to the electricity need in Senegal, but only if this is done in an acceptable and responsible way, in which the surrounding communities and the environment is carefully considered. Only under these circumstances is FMO willing to continue with this project.
The power plant could contribute hugely to the electricity need in Senegal, but this can only be done in a acceptable and responsible way if the surrounding communities and the environment is carefully considered.
Yes, FMO has 4 projects in Senegal. They can be found here.
Kroll is currently carrying out a review of the allegations on behalf of the lenders. We will assess which actions are to be taken once the report is avaible
Post Commercial Operation Date (COS), the CES power plant encountered several technical setbacks. The shareholders disagreed on how to remedy these issues, causing further delays. At present, stakeholders are working towards a solution to achieve an operational plant that meet technical and Environmental & Social international standards.
2008 | Bid launch
2009 November | Clearance in Principle (CiP) for the financing of the project by FMO
2010 April | Financial proposal FMO
2011 February | Changes to the composition of the shareholders, delay of the deal signing
2012 November | Shareholder change and renewal of Common Terms Agreement (CTA)
2012 December | Signing of the renewed CTA
2013 August | First disbursement loan by lenders
2014 January | First environmental and social (E&S) monitoring report: E&S non-compliances identified
2014 April | Site visit by FMO together with the African Development Bank (AfDB)
2014 – 2015 | From June 2014 up to and including October 2015: standstill of the project due to shareholder dispute
2015 October | Quantum Power joined Sendou as new controlling shareholder
2015 December | Second loan disbursement by lenders, relaunch of construction;
2016 | FMO established an Independent Complaints Mechanism, through which concerns about our investments can be submitted. We investigate all admissible complaints.
2016 April | Site visit by FMO and LTA
2016 June | An Amendment Agreement to the Common Term Agreement (CTA) was signed. This agreement provided for an additional loan and restructuring terms including the revised E&S terms.
2016 May and June | Complaint submitted by Lumière Synergie Pour le Développement and Takkom Jerry the Collectif des communautés affectées de Bargny
2017 November | Independent Expert Panel (IEP) published its compliance review
2018 October | Commercial Operarion Date (COD) reached
2019 July |Operational shutdown
2019 - 2020 | In October 2019, South African based Barak Fund Management takes over Quantum Power shareholding
2020 January | IEP published its first monitoring report