The US EXIM (Export-Import Bank of America), has given the green light of a loan guarantee financing of $91.5M to the Republic of Senegal. The funding will boost the West Africa’s country renewable energy sector through rural electrification.
The transaction supports the exports of construction services and engineering designs from the US. The Agreement will be a win-win for both countries. Senegal will increase electricity supply through rural electrification to an estimated 330,000 Senegalise in 400 villages. On the other hand, the US, through Weldy – Lamont LLC of Illinois, will provide around 500 jobs to Americans across 14 states.
I can think of no better first project for us with the Republic of Senegal than this Weldy-Lamont deal to provide rural electrification to about 415 villages
Judith Pryor , EXIM Board Member
The Rural electrification project will entail networking with low-voltage power lines along roads that are already existing. Remote villages that do not have road networks will have mini-grids of stand-alone solar units installed.
The agreement is one of Trumps’ administration initiatives to advance two-way trade investment between Africa and the USA through the President’s Advisory Council on Doing Business in Africa (PAC-DBIA).
In this case, the Senegal National Electric Agency is the borrower and the purchaser of the US exports. The Senegal Ministry of Economy , Planning and Cooperation will be the sovereign guarantee of the estimated amount of the project.
The project is estimated to cost $100M, of which EXIM Bank is financing 81.5% of the total cost.
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