PROJECT

Projects

Environmental & Social Review Summary

Project Number

35175

Company Name

CG CAP DES BICHES SENEGAL

Date ESRS Disclosed

May 4, 2015

Country

Senegal

Region

Africa

Last Updated Date

Jul 27, 2017

Environmental Category

B - Limited

Status

Active

Previous Events

Approved : Jun 25, 2015
Signed : Nov 25, 2015
Invested : Dec 14, 2015

Sector

Heavy Fuel Oil - Thermal Power Generation

Industry

Infrastructure

Department

Gbl Infrastructure & Natural Resources

Project Description

The proposed project, to be developed by Contour Global Cap des Biches (the Company), involves the design, construction and operation of a 53 MW Heavy-Fuel Oil fired combined cycle thermal power plant located in Rufisque (23 km east of Dakar) in Senegal. The project consists of three 16.5 MW combustion engines equipped with a 3.5 MW combined cycle / heat recovery system and a short transmission line of approximately 500 meters in length connecting the power plant to an existing adjacent substation. The proposed IFC investment is to provide a cross-currency swap of an LEQ of USD 9 million.

The project site is adjacent to a defunct Senegalese power generation facility operated between 2000 – 2013 before being abandoned for commercial reasons, and is located in the Cap des Biches industrialized zone. The nearest inhabited zone, is located at around 400m to the east of the Project area. The project will use the fuel storage tanks installed for the defunct power plant on the adjacent site. The electricity will be sold independently for 20 years, within the framework of a power purchase agreement signed with SENELEC. The defunct plant (where the fuel storage tanks for the new project are located) is located on 2.5ha of land, edged to the west by the SENELEC substation. The new power plant will be built on a 3 ha plot to the east of the existing site. The affected land has been used for market gardening for several years.

Overview of IFC's Scope of Review

IFC’s review of the project included:

review of, as well as, in-depth discussion on the Environmental and Social Impact Assessment (ESIA) with the Environmental and Social (E&S) consultant team of the ESIA titled “Environmental and Social Impact Assessment for the ContourGlobal – Cap des Biches (CGCB) thermal power plant project“ by ERM and dated 12 March 2015, including an E&S Management Plan (ESMP);
interviews with sponsor’s management team;
site visit to the Project site and its surroundings on April 27-28, 2015;
interaction with OPIC E&S specialist in coordinating appraisal efforts and comments to ESIA; and
review of E&S performance of two other IFC projects with the same sponsor.

IFC’s appraisal considered environmental and social management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards objectives.

The Sponsor, Contour Global Group, is an existing IFC client specialized in developing, acquiring and operating electric-power assets around the world. IFC is effectively supporting the Group in a 100MW HFO power plant in Lome sponsored by CG Togo (27849 /Aug 03, 2009). The E&S performance of this project based on IFC supervision records is currently rated as satisfactory.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
ERM_0251196_CG-CdB_ESIA_05-03-2015 Final (2).pdf