83630 Republic of Senegal Taiba Ndiaye Independent Power Producer Project Chair Summary* December 19, 2013 The Executive Directors of IBRD/IDA and the Board of Directors of IFC discussed and approved the proposed IDA Partial Risk Guarantee (PRG) in support of the Republic of Senegal and Tobene Power SA in the amount of up to US$40 million and a proposed IFC investment in the form of an “A” loan of up to EUR 30 million (approximately US$41 million equivalent), a “B” loan of up to EUR 55 million (approximately US$75 million equivalent), an equity investment of up to EUR 3.5 million (approximately US$5 million equivalent), and an interest rate swap representing a loan-equivalent exposure (LEQ) of up to US$5.5 million in Tobene Power SA to support the Taiba Ndiaye Independent Power Producer Project (IDA/R2013-0304[IFC/R2013-0391]), on the terms and conditions set out in the President’s Memorandum. Directors underscored the project’s pivotal role in addressing the key challenges facing the country’s power sector and in leveraging much-needed private investments to increase the supply of electricity in Senegal, which remains a key constraint to growth and further development. They underscored that long-term financial viability of the sector entities and appropriate tariff mechanisms, coupled with well-targeted subsidies for the poor, are required to optimize the project’s development impact. Directors recommended that the World Bank Group closely follow the implementation of the Government plan to redress electricity sector viability. They also commented on the importance of a long-term, sustainable energy strategy for Senegal which should incorporate traditional and renewable energy sources. Directors welcomed the additionality provided by the project, noting that it is the first investment developed under IFC’s InfraVentures to be approved by the Board and would facilitate South-South investments and stimulate regional integration. They noted the potential demonstration and signaling effects of this project, particularly with private and institutional investors. Directors also encouraged IFC and IDA to share technical expertise with partners, focusing on the development of long-term funding for the energy sector, risk mitigation, and applying environmental and social performance standards. Directors appreciated the collaboration between the Government and the World Bank Group team during project preparation reflected in the detailed analysis and preparation of the Project. They particularly welcomed the joint development of the project by IFC and IDA, which draws on a suite of complementary instruments to support Senegal in securing the affordable and reliable energy supply needed to contribute to ending poverty and promoting shared prosperity. _____________________________ *This summary is not an approved record.