Behind the Scenes: A Landmark Renewable Energy Project in Senegal

Video recorded in French. Transcript is translated.

Moustapha Sène
If there is one thing that has pushed me to continue on this project, it is precisely when I saw all of the motivation, the passion of the people involved, their interest and the way they have helped us get established. I think it was one of the reasons why we didn't give up on the project.

Zineb Ouadih
Hi! We are here today with Mr. Moustapha Sène, Director of Energy Resources Senegal and Alla Holding. Hi Moustapha and thank you for accepting our invitation.

Moustapha Sène
Hi, Zineb.

Zineb Ouadih
I understand that congratulations are in order because you recently went on stage to receive the IJGlobal “Energy Transition Project of the Year – Africa” award. And you received it in the context of the Teranga Niakhar project, which is a solar project with battery storage in the Fatick region [in Senegal].

Moustapha Sène
Yes, indeed we have received this award. We’re very proud of the award, and we also thank you and the whole Orrick team for all the work you have done – along with Mariama Diallo, who is the coordinator of this project. Thank you and we hope that other awards will also follow on the other developments to be made.

Zineb Ouadih
I would like to ask you – if you don't mind – to go back to the origins of this project, to describe to me what motivated you to develop it and to pursue it despite the delays and obstacles over the years.

Moustapha Sène
Yes, it is true that Niakhar has been developed for several years now given the context at the time of the signing of the IPP. We signed in 2019 and unfortunately COVID-19 arrived. So, the project was suspended for almost a year and a half. And when we resumed, we went through a co-development process. We signed a JDA with our partner, it didn't end the way we wanted it to for this first attempt, which took us almost a year and a half. So, this is where we took things into our own hands to really try to speed up the development process.

But as you say, it took a lot of time, but it is a rather motivating project given the stakes for the country, given the stakes for the population – because the project is housed between three villages. I think that was a real motivation to stay the course and try to make it come true. We’re very happy that at the end of the day, we were able to do it. It took a lot of effort and sacrifices to get here, but that's the origin of the project. We're pleased to announce today that we will be able to start construction in a few weeks, God willing.

Zineb Ouadih
It has a rather particular structure. It was developed by Energy Resources Senegal, which is owned by yourself and by the Senelec, meaning that the developer is entirely Senegalese. And it is also funded in CFA francs by banks and institutions in the region. And another particularity of this project that I would like to highlight for our audience is that the contribution in equity has been partly funded by a murabaha with the Islamic Bank of Senegal. You are obviously aware of this, but it is very rare to see projects structured in this way in Senegal and in the West African region in general. I wanted to ask you — what led you to retain this unusual structure?

Moustapha Sène
When we decided to handle everything ourselves, we thought, “Well listen, what we need to do is perhaps look at the resources available in our country.” That's how we went to see the BOAD and partnered with them. And it resulted in bringing on board two Senegalese banks, in this case SUNU, which was the old BICIS, and today the BIS.

And finally, we saw that banks were very interested in looking at energy projects in the region. Now, it's true that the only challenge is the interest rates, but I think that today, given the different rates that we have been able to obtain, the mix of all this allows us to remain on an attractive financial model, which allows us to do the project under the best conditions.

Zineb Ouadih
I wanted to ask you if you had the opportunity at one point to go on site to discuss with the authorities, the residents? What feedback were you able to receive from them? And more generally, what do you expect the impact will be on the Fatick region?

Moustapha Sène
I think that honestly, one of the biggest motivations for this project lies precisely in the interest and the passion that the project has aroused around the three villages that have given us the privilege of building on their land, who have welcomed us and welcomed the project. That's why, despite the length of the negotiations and the whole process to do the project, we stayed in contact with these communities to explain what was going on. They supported us a lot.

It's true today, too, in terms of impact, we think there are a lot more possibilities with these projects. We have already established a protocol with the mayor that allows, I believe, about 1.5 million resources of the project already in the development of infrastructure or the improvement of infrastructure concerning the commune. Personally, I think we can do it. And do better in these countries. They understand the projects, the value, the meaning, and the relevance of the projects. And once it's understood, they have a commitment that I've never seen elsewhere –

it's really a source of motivation for Niakhar.

Zineb Ouadih
What lessons do you hope to learn for future developments in Senegal or elsewhere?

Moustapha Sène
For me, the first lesson has been the legal framework, because I’m used to having legal advice when there’s a problem, but now I’m learning more and more that you need legal advice both at the outset and in the later stages. You need support even if there is no project yet. And it helps a lot because of the experience that legal counsel brings. They're generally experienced and you can also benefit from their resources beyond the relationship that binds us together.

Zineb Ouadih
If you could talk to a young entrepreneur – or 20-year-old Moustapha – and give him some advice, what would it be?

Moustapha Sène
Well, I’m still always learning! As far as energy is concerned, it’s true that in Africa we are well aware of all the issues and challenges in the energy sector, so there are a lot of things to do. Until recently, IPPs were given to seasoned developers from European or other markets, who then applied a model without understanding that the environment has its own realities. I think today, there’s room for other Senegalese and African developers who better understand the environment and will ensure that, during development, they capture all aspects that concern the population and the State's interests.

I tell young developers that there’s room for them to be more innovative than old people like me! I think they will be able to do a lot. So they need to be motivated to come and explore, not to be afraid.

Zineb Ouadih
Thank you very much, Moustapha. It was a pleasure to chat with you today.

Moustapha Sène
Thanks again to you and to all your team for all the support. We are very happy to work with you.

Zineb Ouadih
The pleasure is mutual.