MCB Finances Senegal’s use of Powerships
The Mauritius Commercial Bank Ltd. (MCB) has committed $60 million towards Karpowership in Senegal, enabling the country to improve electrification rates and transition to cleaner sources of power generation. The funding, which represents the highest loan commitment of the project, will be directed towards the operation of Karpowership’s 235MW Powership.
Currently, the Powership uses heavy fuel oil as a power generation source and contributes approximately 15% of the country’s electricity supply. MCB’s project finance will enable the Powership to increase this supply rate by addressing power deficiencies in rural areas of the country. This objective aligns with the government’s Plan Sénégal Emergent, a comprehensive framework that aims to increase electrification rates to 100% by 2025 by enabling cleaner power generation solutions that prioritize reduced electricity generation costs.
Additionally, the finance will allow the Powership to transition from heavy fuel sources to natural gas, facilitated by a Floating Storage and Regasification Unit which is expected to arrive in Senegal in the next few weeks. The transition, aligned with the Plan Sénégal Emergent and the United Nations Sustainability Development Goals on Climate Change, will allow Senegal to diversify its energy mix, minimize fuel imports, and significantly reduce carbon emissions through the utilization of natural gas.
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