Questions & Answers Sendou

Questions & Answers

Below we have listed several key questions and written out a time line. 

How much money did FMO invest in Sendou?

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.

Why did FMO provide a second loan?

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.

Who are the current shareholders of CES?

The current shareholders of CES are Barak Fund Management, (controlling shareholder), Mr. Norland Suzor and Prevoyance Assurance.

Does FMO regret investing in this project? 

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. 

Isn’t it better if the coal-plant doesn’t (re)open at all?

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.

Do we have other (energy)projects in Senegal?

Yes, FMO has 4 projects in Senegal. They can be found here

What does FMO think about the fraud allegations?

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

Why is the power plant not running?

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.

Timeline of the project

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)

20142015 | 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