Mali is among the poorest countries in the world and only a quarter of the population has access to electricity. A new 90 MW power plant will increase the country’s current production of electricity by approx. 25 percent. It is expected that the increased production will contribute to growth and development in Mali.
– One of the biggest barriers to growth and development in Africa is lack of power, and this applies especially in Mali. So we are very pleased to contribute to the expansion of the electricity supply and thereby the economic progress in the country, says Tommy Thomsen, CEO of IFU.
The power plant is the first private power plant in the country, and it connects directly to the national electricity grid. Investment and operation of the power plant is paid through a 20-year Power Purchase Agreement concluded between the Malian State and the local company Albatros Energy Mali.
The new power plant, located outside the city of Kayes in western Mali, is equipped with six highly efficient 16CM43 engines supplied by Caterpillar and it will become the most efficient power plant in Mali. The plant is expected to be completed only 16 months after the contract commencement date.
The total investment is approx. DKK 950 million and Burmeister & Wain Scandinavian Contractor (BWSC) have signed a contract for delivery and operation as well as maintenance for at least 13 years. The total value of the delivery contract is DKK 675 million.
– After more than 2 years of intense project development efforts, we are of course very pleased and very proud that this important project has been secured. The power supply from the new power plant will be a significant catalyst for growth and development in the country and we are very pleased to be part of and contribute to this positive development for Mali and the Malian people, says Anders Heine Jensen, CEO of BWSC.
Together with IFU and other investors, BWSC has invested in the project, owned by the local company Albatros Energy Mali. Additionally, the project is funded by several strong financial institutions, including the Islamic Development Bank Group, the West African Development Bank, the OPEC Fund for International Development and the Emerging Africa Infrastructure Fund. BWSC invests approx. DKK 25 million and IFU almost DKK 70 million in the project.
It is expected that the project will create around 300 direct jobs during the construction phase and subsequently 50 permanent local jobs when the plant is in operation.