Compagnie Marocco Senegalaise d' Electricite/St. Louis SAU The Project consists on the first rural electrification concession in Senegal awarded pursuant to an international bidding process (the Project). It will be one of IFCs first forays in rural electrification, a priority of the WBG and of IFC. The Project will be developed by Compagnie Marocco-Sénégalaise dElectricité/ St.Louis SAU (Comasel de Saint Louis S.A.) (the Company), a wholly-owned subsidiary of Office National de lElectricité (ONE), Moroccos electricity utility. ONE has requested IFCs support for the project in the form of an equity   investment for up to 19.99% of the Companys equity. Support the improvement of the living conditions of population in rural areas and contribute to the reduction of poverty.  

Rural electrification has been a long-time focus of the WB and IFC. Access to reliable electricity is an active catalyst for sustainable development as it can boost living standards, it can prevent rural exodus and emigration to urban areas, it can reduce mortality and improve gender quality.

The Project aims to support the progressive transformation and improvement of living conditions of the population in rural areas of Senegal which at present lack electricity (85% of the population in rural areas in 2005).  This will be achieved by (i) providing lighting and access to modern communications to rural households; (ii) improving delivery of social services with the provision of electricity for potable water systems, health clinics and schools; and (iii) enhancing economic productivity with the use of electricity for productive purposes.

Senegals population in rural areas depends on fuel-wood for cooking, kerosene lamps and some small flashlights operating with batteries for lighting, and on human force - frequently from women - for domestic and productive tasks.  The Project has the potential of promoting growth and the personal development of women and children by making their domestic workload less heavy. In addition, the social benefits from electrification  the ability to power lights, radios, small appliances and televisions  make a significant contribution to enhancing the quality of life and to the reduction of poverty.

Improve access to electricity: 

The Project will provide electricity to 19,574 rural users in the next three years who at present do not have access to electricity, covering 298 villages.  The proposed Project will provide electricity to 213 schools and 118 health centers, thus allowing rural populations to access better education and health services.

Foster the development of local businesses and improved health services:  

The PREM subsidies will allow the Company to put in place electrical installations to increase the productivity of one SME, the Laiterie du Berger, and to improve the operations and services of 28 health centers as they will be able to preserve vaccines.  The doubling of capacity of the SME will provide extra income of US$60-80/month approximately to each of 400 additional families who will supply electricity to the Laiterie.

Supply reliable electricity using renewable energy technologies: 

The Company has opted for solar powered systems to supply electricity to certain populations located at a certain distance from the grid as electricity from these systems is more cost competitive, reliable and efficient than extending the grid to isolated populations.  Electrification with renewable energy systems provides a less polluting alternative to diesel-based generation and reduces transmission and distribution losses.  The Project will have a positive environmental impact as it will help to reduce CO2 emissions; it will also promote conservation by using renewable sources of energy (solar energy) and efficient lamps.