General background:
1. at current prices, solar PV projects are at grid parity in this country... ie. no subsidies necessary.
2. Africa is growing very fast and electricity shortages are common.
3. a successful project here will open up many opportunities in the region and across the continent.
Country background:
1. Located in West Africa.
2. has access to financial markets (issue of 500M Eurobond is under preparation).
3. has strong support from IMF and World Bank.
4. politically democratic and stable.
5. regional power and President of Senegal is leading efforts to bring renewable energy to entire sub-region.
6. currently negotiating a free-trade deal with Canada so bringing the project from Canada is attractive.
7. elections due in 2012 therefore it is critical for government to show progress with power supply (currently, there are frequent power shortages and people are complaining more and more).... therefore, government is very motivated.
Project background:
1. Sign Memorandum of Understanding for 50MW: to be built in 12 to 15 months... this will allow sufficient time to structure contracts and financing appropriately.
2. Sign Contract for Demonstration Project of 1-2MW: to be built before end-2011.
3. Country to provide sovereign guarantee.
4. Sign 15-year Operations and Management contract.
5. RoI: minimum 20%.
6. Negotiations are underway at the highest level (we have strong political support) and expect to get contracts signed in August-2011.
Immediate requirement:
1. $2M investment for Demonstration Project (project financing).
2. Remainder of project financing to come from local sources (combination of Government and regional development bank).
